Mango, the well known Spanish brand, known worldwide for its nightwear, casual wear, and sportswear among others is now aggressively looking at a global expansion plan. The brand plans to open three new stores a week all over the world in the coming year. At the moment, the brand has 1,392 stores across the world. “Spain is our biggest market with 280 stores, followed by France, with a 100 stores,” says Isak Halfon, Executive Vice President, International Franchise & Expansion, Mango.Mango’s new India strategy: open five new stores, rework pricing
The Rs 10,000 crore global company entered India in 2001, with a franchisee partnership with Major Brands. This year, Mango is looking to add five new stores in India. “These will come up by the first half of 2010. We are looking at Mumbai, Kolkata and Chandigarh for these stores. At Rs 50 crores, India contributes only .47 per cent of our global business. With these five new stores, we hope to reach Rs 100 crores this year,” says Halfon.
Halfon says store opening in India has been slow because of issues relating to higher rentals and landlords changing their terms too often. He feels retailing in India is yet to stabilize. “Business is scattered to malls and high streets unlike in West Asia where most of the business for big brands comes from malls. Moreover, India also has to improve its infrastructure a lot,” explains Halfon.
To build its customer base in the country, Mango is now studying the Indian market seriously. “Understanding the Indian pricing, we have reduced our prices by around Rs 300. A basic jeans for women now starts at around Rs 1,700. We have also changed our policy towards our franchisee. Earlier, he had to buy the stocks from us, now it’s on consignment basis. He pays for whatever is sold and the unsold goods are not his responsibility,” Halfon says. This has given confidence to the franchisee partner and though this is the first season after the change, Mango registered a sales growth of 20-25 per cent.
In 2010, the brand is also looking at being present in large format departmental stores as well. “The idea is to increase awareness about the brand by opening flagship stores and attain ‘critical mass’ by having more stores and larger presence,” he explains. Halfon feels with the new pricing, changed policy for franchisee, rational size of new stores and opening more stores, 2010-11 could well be the turning point for Mango in India.
Showing posts with label lifestyle franchises. Show all posts
Showing posts with label lifestyle franchises. Show all posts
Thursday, January 28, 2010
Monday, December 7, 2009
Rosebys to Expand Using The Franchise Route
07 December 2009
The UK's largest specialist textiles, lifestyle and home décor retailer Rosebys plans to expand its stores in India and also re-enter the European market which it quit three years ago. However, it will stick to the franchise route rather than own the stores.
Rosebys chief executive Aloke Banerjee told reporters on the sidelines of a textiles conference in New Delhi on Saturfay that the company is targeting a presence across India with stores evenly spread across the metros as well as smaller towns. He said the store would increase its presence from the current 100 stores to 300 by 2011.
Banerjee said that Rosebys India is likely to generate revenues of about Rs100 crore for the current fiscal, and expects annual sales to reach Rs500crore over the next four years aided by its brand-building exercises store additions. "Our biggest cost is on brand building and there will be no let down on that,'' he added.
Rosebys, which sells products such as bed linen and cushions, is poised to benefit from rising demand for home textiles products in India, Banerjee said. He added that the company would leverage its Indian expertise to re-launch in Europe.
Indian conglomerate Gujarat Heavy Chemicals Ltd (GHCL) acquired the UK's Rosebys chain in a $40 million (Rs180 crore) deal in 2006. After the acquisition, the company promptly closed down all 320 stores in the UK.
"After the buyout, the recession hit; and we wanted to restructure the business in the UK. In the meantime we started the India operations. Now we are expanding to Belgium, France, Poland and Romania," Banerjee said. "By the end of this fiscal itself you will see our presence in one or two of those countries.''
The UK's largest specialist textiles, lifestyle and home décor retailer Rosebys plans to expand its stores in India and also re-enter the European market which it quit three years ago. However, it will stick to the franchise route rather than own the stores.
Rosebys chief executive Aloke Banerjee told reporters on the sidelines of a textiles conference in New Delhi on Saturfay that the company is targeting a presence across India with stores evenly spread across the metros as well as smaller towns. He said the store would increase its presence from the current 100 stores to 300 by 2011.
Banerjee said that Rosebys India is likely to generate revenues of about Rs100 crore for the current fiscal, and expects annual sales to reach Rs500crore over the next four years aided by its brand-building exercises store additions. "Our biggest cost is on brand building and there will be no let down on that,'' he added.
Rosebys, which sells products such as bed linen and cushions, is poised to benefit from rising demand for home textiles products in India, Banerjee said. He added that the company would leverage its Indian expertise to re-launch in Europe.
Indian conglomerate Gujarat Heavy Chemicals Ltd (GHCL) acquired the UK's Rosebys chain in a $40 million (Rs180 crore) deal in 2006. After the acquisition, the company promptly closed down all 320 stores in the UK.
"After the buyout, the recession hit; and we wanted to restructure the business in the UK. In the meantime we started the India operations. Now we are expanding to Belgium, France, Poland and Romania," Banerjee said. "By the end of this fiscal itself you will see our presence in one or two of those countries.''
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