Shoppers Stop to set up 35 Mustang outlets in 3 yrs

Written by Mona Mehta | Mumbai | Updated: Dec 17 2009, 04:59am hrs
Having entered into an exclusive retailing arrangement with Germany-based Mustang Jeans GmbH for selling Mustang fashion branded jeans, Shoppers Stop plans to set up 35 Mustang branded shop-in-shops in its stores. Govind Shrikhande, chief executive officer, Shoppers Stop, told FE these would be rolled out over the next three years with three shops-in-shop having been set up in Mumbai and Secunderabad.

According to Shrikhande, Currently, denim apparel contributes 8% to our overall revenues and we hope to grow the contribution to 10% in the near future. Every Mustang shop-in-shop will be spread across 400 sq ft each like other branded denim shops-in-shop including Pepe and Levis, as Mustang will be positioned at the middle to premium end of the market.

As for pricing strategies, Shrikhande explained that Mustang is being made available from Rs 1,500 onwards. Shoppers Stop hopes to generate revenues to the tune of Rs 15 crore through Mustang in the next three years, he added.

Theo Birkemeyer, managing director, Mustang Jeans GmbH said, We are scouting for a third party denim jeans manufacturer in India who would have their own factory for producing jeans. Mustang will provide capabilities in terms of technicals, design, among others. Currently, exports of Mustang jeans contribute 55% to Mustang GmbHs overall revenues. In the next five to 10 years, we hope the export contribution to grow to 75%.