“The main problem with retail is cost”

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: In this day when fast-track job-hopping is the norm, Vikram Rao can be regarded as an Aditya Birla Group (ABG) veteran. He joined the group in 1999 from Arvind Mills where he was president of the shirting division and bed and bath projects. But Rao, currently business director, textiles and branded apparels, Aditya Birla Group, has been associated with the textiles industry right from the beginning of his career. Starting out as a management trainee at Madura Coats in 1975, he climbed the ladder fast to become the president of the textile division (the Aditya Birla group acquired Madura Garments in 1999). He has also served as chairman of the Confederation of Indian Industries (CII) task force on textiles for Karnataka. Here, he talks to Alokananda Chakraborty of The Financial Express about some of the key trends in the industry.

The apparels business is competitive to say the least, where a dozen variables—relating to brand management, production, merchandising, quality and productivity besides distribution —have to fall in place. Is there one factor that can make or break a brand?

There are many factors, both tangible and intangible, which go into building the competitiveness of a brand. In its element, a brand name promises a host of things to a consumer. A good brand has a whole range of hygiene factors associated with it like product, quality, availability, retail adjacency, which a customer takes for granted. If the brand has to succeed, it has to deliver much beyond this. A sure shot way to kill a brand is to falter on any of the basic hygiene factors.

The Aditya Birla Group has a host of brands. How have you categorised them and which are the so-called ‘power’ brands? What’s the turnover from the business?

Our brands have been categorised into two broad categories, namely, lifestyle and popular. Brands such as Louis Philippe, Van Heusen, Allen Solly and Esprit are part of the lifestyle offering, while Peter England is part of the popular category.

Madura Garments’ power brands are Louis Philippe, Van Heusen and Allen Solly. For the financial year, 2006-07, Madura Garments posted a turnover of Rs 800 crore.

The Indian garment industry, experts say, is poised for a sea change. What are the catalysts for this change?