Two years back when s.Oliver, the German apparel brand, had made its foray into India, unlike any other European brand it didn’t tie up with any established apparel retailer, but had entered into a joint venture with Orient Craft Ltd., a relatively new player which was not retailing any other global rival brands. Cut today, bucked up with logistic expertise of Orient Craft and the core attention received from this Indian apparel manufacturer, s.Oliver has reached break-even for both its stores within a time span of just 18 months. In fact, the company is now planning to mint Rs.300 crore from India in another three years time. But then, how exactly is it planning to achieve this astonishing target? “We would be enhancing our portfolio. Moreover, our stores would now emerge as a one-stop shop for fashion and lifestyle products,” avers Gaurav Sehgal, COO, s.Oliver Fashion India Pvt. Ltd. Further, the company even plans to invest Rs.3 million in brand building and is also mulling over the idea to open seven more stores by 2012. However, the million dollar question is, with such high prices (not surely for the masses) will s.Oliver succeed to beckon the consumer? Specially when its competitor, United Colors of Benetton with a comparatively economical pricing, is stealing the show.
“We are operating in the mass luxury segment, wherein we are offering a better quality product to consumers. We don’t outsource our products, all are imported from the head-office,” reasons Sehgal. Agreed that to cash in on the mass luxury segment prices won’t matter, but then the group plans to roll out s.Oliver stores in tier II cities also and the current pricing strategy might not help them there.
Angshuman Paul
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Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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“We are operating in the mass luxury segment, wherein we are offering a better quality product to consumers. We don’t outsource our products, all are imported from the head-office,” reasons Sehgal. Agreed that to cash in on the mass luxury segment prices won’t matter, but then the group plans to roll out s.Oliver stores in tier II cities also and the current pricing strategy might not help them there.
Angshuman Paul
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Follow Arindam Chaudhuri on Twitter
1 lakh copies sold in less than 10 days of Arindam Chaudhuri’s “Discover The Diamond In you”
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better – Mail Today Survey
Events at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
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