Lee Cooper India expects to end FY24 with net sales of over ₹600 crore on the back of high double-digit growth even as the apparel industry has been facing sluggish demand in recent times.
The British brand is operated and marketed by Reliance Retail Ltd (Fashion & Lifestyle) in the country. It also plans to ramp up the retail footprint of the brand.
Jayesh Sali, Head of Marketing, Reliance Retail (Fashion & Lifestyle), told businessline, “The brand has been growing at 35 per cent and we expect it will end FY24 with net sales of ₹600-crore plus. We have revamped the positioning of the brand significantly by focusing on making it more relevant to younger consumer cohorts through our branding and marketing initiatives. The British brand comes with a huge legacy and we have been working on reinforcing its denim-first image.”
Sluggish demand
The apparel sector has been facing challenges in the past few months with consumers cutting back on discretionary spending leading to sluggish demand. “Despite these factors, the brand has been outperforming the industry growth rates. If the environment had been more conducive, we would have garnered 2x growth in this fiscal,” Sali said.
The company has been ramping up the distribution of the brand across exclusive brand outlets as well as large-format retailers among others. Currently, the brand has over 100 exclusive brand outlets in the country.
“We are adding 50-100 exclusive brand outlets every year. In the next two-three years, we expect the total count to go up to over 200 EBOs. At the same time, we are strongly focusing on ensuring our existing stores perform better and grow at a faster rate. We are also consistently expanding the brand’s presence through the large-format retailers channel,” Sali said.
The e-commerce channel has also been a strong growth pillar for the brand. “The share of e-commerce channel to our total sales has grown significantly to 20-25 per cent from about 10-15 per cent in the previous year,” he said.
The denim segment’s growth in India is being fuelled by the shift from unorganised to organised segment. “Over the years, the brand has garnered a strong loyal base of customers in India, who we want to retain. At the same time, we want to add younger consumers to the brand’s fold. We aspire to become the second largest denim brand in the next three years,” Sali added.