TCNS Clothing Plans Exclusive Outlets For W Brand

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TCNS Clothing Pvt Ltd is adopting a two-pronged strategy for its women’s brand W to increase its presence across the country. It is looking to have exclusive retail chains through the franchisee model and shop-in-shops with major retail players across the country.

Outlining the plan, TCNS Clothing Pvt Ltd CEO Vijay Misra told FE that expansion is part of the scale-up plan which the company arrived at after starting operations in September last year. “The focus in the first six months has been showcasing our brand and finetuning our business model and now we are ready to take W on a national scale,” he said.

Presently, W has three stores in Delhi, which will be increased to 25 by the end of this fiscal. The model chosen is the franchisee model but the company does not rule out having a flagship store in a metropolis like Mumbai, if the situation so demands. The exclusive franchisee model would adopt a north to west approach—from Uttar Pradesh, Punjab, Rajasthan, Gujarat to Mumbai and Pune. “This fiscal would witness a north to west movement and by next fiscal, the southern region would be targeted thereby giving us a national presence,” Mr Misra added.

Besides the franchisee route, the company is looking to increase its presence through shop-in-shop arrangements with major retail players like Pantaloons, Shoppers’ Stop and Lifestyle. Giving the rationale behind having shop-in-shop arrangements with retail players, Mr Misra said it gives the brand reach. “We multiply with them. That’s the advantage we gain by having such an arrangement,” he added.

The shop-in-shop arrangement is not just with well-known retail players. The company is also in talks with local retail chains in major towns and cities. The company is looking to outsource its logistics requirement and is in talks with providers who can service the various outlets across the country. However, the system which would eventually come into place is the hub and spoke arrangement where each region would have a hub to service several outlets in the vicinity.

Mr Misra said the expansion plans would entail an investment of Rs 16 crore. In the first six months ended March 2002-2003, the company clocked a turnover of Rs 1.25 crore and is targeting a turnover of Rs 15 crore in the current fiscal. “We are looking to breakeven in the third year of operation,” he said.