“The main problem with retail is cost”

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: is done using the existing channels. We also use value channels to liquidate old and slow-moving merchandise all through the year. This practice is commonly followed even by well- known international brands and does not impact the image of the brands in a big way.

How do you see Indian brands coping when biggies like Wal-Mart and Sears make inroads into India?

A player like Wal-Mart operates in the mass-market segment and is a value player. As I mentioned earlier, we have different brands for different customer segments. Hence, we are not unduly worried about the entry of players like Wal-Mart. They will impact only the category of customers and brands operating in that space. Well-entrenched Indian brands in the premium and super-premium segment needn’t worry at all.

What kind of management (brand and marketing) do you profess for Indian textile companies to survive global competition?

Indian textile companies need to identify and define their target customers and evolve strategies to satisfy their specific segments. One of the biggest strengths of international brands is the power and equity of their brands—they have strong recall value. Hence, Indian companies need to focus on brand building in a big way. They need to dissect the different customer segments and clearly identify areas where they would like to operate and evolve strategies to cater to the requirements of that particular customer segment.

Ultimately, the customer needs to see value in the product—the price at which he is buying it and the ambience in which he is buying the product.

With the industry landscape changing, many have predicted another round of consolidation. Your comments.

India does not have many well-known apparel brands. A host of brands have cropped up over the last few years but they are yet to establish themselves strongly.

Currently, there are a host of small brands and a few large established brands. Given the growth potential, the larger players will definitely not want to sell out, and even if they do, the valuations will be too steep. Given that the industry is growing very fast, even smaller brands would see a big growth opportunity for themselves.

The areas wherethere can be a possible churn are the value- and mid-price segments as that is where the entry of big retailers like Wal-Mart, Reliance, Future Group etc will have an impact. These brands may eventually be taken over by value retailers to operate as their private labels.