RP Sanjiv Goenka group-owned Spencer’s Retail, on Tuesday, launched its own apparel brand “2Bme’. The brand will cater to children, women and men.
According to Shashwat Goenka, Sector Head, Spencer’s Retail, ‘2Bme’ will be the brand that will replace all private labels and ‘other brands’ that the retailer has in the apparel category.
‘Island Monks’ was Spencer’s private label for apparels.
“We will follow a shop-in-shop format as of now with 2Bme being the only apparel brand at Spencer’s. We have discontinued the existing private labels and the other brands,” he said during the launch.
At present, the apparel brand will be launched across the 37-odd hypermarket formats (of Spencer’s).
“2Bme” is expected to be a ₹300 crore business in the next three to four years.
Increase in margins
According to Goenka, the focus on apparels, which are said to be a high margin business, will help improve the retailer’s top-line and margins.
From a 4 per cent contribution to turnover, the launch of this new brand will see the share change to over 5 per cent within a year’s time. Goenka further added that a call might be taken to spin-off ‘2Bme’ as a separate entity – outside of Spencer’s – at a later stage.We may take a call on having the apparel brand as a separate business after two to three years. This will depend on the traction that the brand gets,” he said. Although offerings are priced between ₹129 and ₹1300 and fall within the value-to-mid-range category, Goenka said ‘2Bme’ will compete with “any apparel brand” in terms of quality and product portfolio.