New Delhi, June 2: In the wake of introducing the Gasoline brand of denimwear in the country, the Delhi-based Licensing Plus -- a joint-venture between Australia-based Lee Walsh Licensing Pty Ltd and Exsim India Pvt Ltd -- will now be introducing two new US-based brands: Pipeline and Hang Ten. In addition, it is also bringing in the Gasoline range of footwear and belts -- and is hunting for licensees for the premium American brand Beverly Hills Polo Club.Licensing Plus has already identified three companies who will exclusively manufacture and market the apparel, accessories and footwear brands in India on a national basis. While Pipeline has been licensed to Continental Clothing Co, Hang Ten will be marketed by Westrack Apparels. The new Gasoline footwear range will be marketed by M&B Footwear, while Hang Ten belts have been licensed to Oro Leather Ltd.
According to G P Singh, director, Licensing Plus, Pipeline and Hang Ten are slated for launch in the next few months, and negotiations are currently onto license Beverly Hills Polo Club. ``Being a very prestigious brand, we are looking for a good reputed company,'' says Singh. Licensing Plus is also contemplating the launch of Pipeline and Hang Ten footwear in the country.
Licensing Plus acts as a medium to bring foreign licensors to India and obtains the concurrence of the principal owner of the brand, character or event before looking for prospective licensees. It also provides support to the licensee by helping develop viable marketing strategies for each brand, once it is launched in India.
The company launched its operations in the country in June 1998. The first brand to be licensed was Gasoline, through Licensing Plus' garment export company called Pratap International. ``We spent the first year in judging and understanding the market. But now, we'll be more aggressive, and will license four to five brands in this year,'' Singh adds.
This year, it also plans to make the Gasoline brand more visible. Says Ashwini Goel, brand manager, LicensingPlus: ``It was a testing time for Gasoline which is a very different brand, in terms of design and style. By August 1999, we will go full steam ahead, will be very aggressive in our marketing, advertising and visibility.''
Launched about a year back, Gasoline is a casual denimwear brand. Positioned as a `fashion product,' it claims to be the first brand to have introduced six pocket jeans in India -- ahead of Levi's and Lee. The brand is being sold mainly in the North through six exclusive as well as 30-40 multibrand outlets.
The brand plans to consolidate its position in Uttar Pradesh, MP, and West Bengal first and then go down south. By January 2000, it plans to sell in Bombay. In the first year, Gasoline claims to have sold garments worth Rs 2.25 crore and projects a Rs 4 crore turnover during the next year.
To be launched next month, Pipeline is a casual-wear brand, essentially catering to the youth. Starting with tops and bottoms priced at Rs 400 and Rs 650, Pipeline garments will be sold throughmultibrand outlets only, in the four metros.
The licensing agreement between Licensing Plus and Continental is for five years, where the latter will pay a royalty of about 5-6 per cent on ex-factory sales to the parent company (Lee Walsh) of which 0.25 per cent will be retained by Licensing Plus as commission. Continental, in return, will get the benefit of technical know-how, designing, point-of-sale material and advertising support.
Hang Ten is a knitwear brand and will compete with brands such as United Colors of Benetton. Positioned as an `active leisure-oriented brand', the range will include knitted garments, woven shirts, bottoms, swimwear and headgear. The California-based Hang Ten claims to have a turnover of $450 million through more than 100 worldwide licensees.
Targeted at the upper middle class segment aged between 16-30 year-olds, the Hang Ten range will be priced Rs 350 onwards. According to Ajay Kohli of Westrack Apparels, the targetted sales for the first year are Rs 2.5 crore. Slatedfor launch in October, with with three exclusive outlets between Bombay and Delhi, Hang Ten will be retailed in all the top metros by year-end.
To be launched in August 1999, Gasoline shoes will be positioned as `hi-fashion casual shoes' priced between Rs 1,300 and Rs 2,500. ``To push volumes, the company,'' says Inder Dev Singh, M&B Footwear: ``will push the suede sneaker range priced at Rs 1300-1500.'' Singh -- who also manufactures Lee Cooper shoes -- has targeted a turnover of Rs 4 crore in the first six months from Gasoline. Meanwhile, M&B Footwear plans to launch Gasoline belts in the next three months. Licensing Plus is also considering the introduction of Gasoline perfumes, stationery and watches in the India market, through imports.
Pumping up Gasoline
After lying quiet for a year, the Gasoline brand being marketed by Partap International, is all set to paint the town red. With an ad-budget of Rs 1.25 crore under its belt -- for garments as well as footwear -- the company is going toembark on a massive advertising campaign for the brand including a TV commercial.
To be produced by Triton ad agency, the campaign will dovetail into Gasoline's international positioning and will be shot in Australia with foreign models. The launch of the campaign will coincide with the debut of Gasoline's Winter '99 collection sub-branded Culture Clash. In February, 2000, it plans to launch its Summer 2000 collection under the banner, Future Shock.
So far, the company has been building the brand largely through shop level promotions and by holding Gasoline nights at major discotheques and sponsoring top-rated English movies at up-market movie theatres.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.