Van Heusen plans to step up growth rates in sportswear, after witnessing the success of its sibling brand Louis Philippe in the same segment (LP Sport).
Both menswear brands from the Aditya Birla Group’s Madura Fashion and Lifestyle stable were launched around the same time (1990). However, Louis Philippe entered the sportswear category much earlier (2009) than Van Heusen which entered about 2 years ago, giving it an edge in the competitive menswear category.
Vinay Bhopatkar, Brand Head, Van Heusen, said, “With the shift from formal to casual wear, we want the sportswear category to grow between 40 per cent and 50 per cent. Having entered the category much later than Louis Philippe, we now want to build the category and create visibility for the brand, since we are still a very small player in the category today.” Sportswear contributes almost 50 per cent of Louis Philip’s sales turnover, while Van Heusen Sports’ contribution is at 8-10 per cent of its top line.
But unlike Louis Philippe, which has remained a menswear brand, Van Heusen has been bold enough to dabble in new categories such as women’s wear. “While there is potential in women’s wear category, growth and share is expected to come from sportswear. Our new campaigns are around sportswear and there is going to be significant investment behind the category,” added Bhoptakar.
Considering that LP Sport was responsible for catapulting and doubling Louis Philippe’s sales to Rs 1,100 crore over the past two years, Van Heusen expects to achieve a similar feat with its sports brand.
However, unlike LP Sport which has exclusive stores, Van Heusen does not intend having independent stores for its sports brand. Having crossed 200 exclusive outlets already, it expects to sell both men’s formals and sportswear under the same roof. “While we have exclusive stores for women’s wear, we do not expect to sell sportswear separately,” added Bhopatkar.
Despite both Van Heusen and Louis Philippe engaging in a similar positioning and pricing in the menswear category, Madura Fashion and Lifestyle does not expect any cannibalisation between its two premium brands. As Bhopatkar says, “While there is an overlap between the two premium menswear brands, the market is huge. Consumers like to experiment and are not particularly loyal to a particular brand.” Both Louis Philippe and Van Heusen are over Rs 1,000-crore brands and currently clock growth rates between 18 per cent and 20 per cent.