The kids apparel market in India is worth about Rs 27,000 crore of which only about Rs 500 crore goes to the organised sector, growing at an average of 20 per cent against the 30-35 per cent for the overall industry. So far, the organised market was dominated by Lakhani-owned Gini & Jony Apparels with a 30 per cent market share, followed by Weekender Kids and Ruff Kids. Clearly, there is space for more organised players to come in and take a larger bite of the market.
That is what Raymond plans to do. With prices ranging from Rs 299-999 against Rs 295-2,000 for Gini & Jony. ZAPP! is clearly aiming for volumes. Whether it can deliver on the target depends on what Raymond brings to the consumer at a lower price. It is doing the usual things. For example, it has tied up with Warner Brothers for the ‘Superman’ brand of clothing in India. Besides exclusive stores, it plans to be present in large format stores like Lifestyle and Shoppers’ Stop. Gini & Jony, too, has a tie-up with Pantaloons and Shoppers’ Stop, which gives it wider distribution.
Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.