Says TCNS CEO Vijay K Misra: Were aiming to add around 25-30 exclusive franchised W outlets by March 04 to our existing three company-owned outlets (combined area: 8,000 sqft). Weve recently opened five franchised outlets and around a dozen are already under construction.
Mr Misra feels that the challenge for franchised network would be to secure an average sales of around Rs 40 per sqftwhich is clocked by the companys outletsas the brand expands across the country.
TCNS, which is primarily a garment export firm employing around 5,000 people in seven locations including Bangladesh, is said to have already invested Rs 13 crore in the W project. W has a team of 70 with around 18 in product development for designing and prototyping.
To encourage impulse buying, W plans to maintain eight collections in a year with clothing based on international colour palette forecasts changing four times in a year.
Mr Misra feels the brand should secure a retail turnover of Rs 12 crore by March 04.
Franchised stores can expect cash break-even in year one, and break-even by year two, he says. A typical store will attract an initial investment of Rs 10-12 lakh besides carrying a rotating stock of Rs 5-6 lakh on an on-going basis.
TCNS is planning to break a national media campaign, handled by Rediffusion DY&R, in January 04.