Ahead of the festive season, Landmark Group’s value fashion brand Max Fashion has roped in actor Kalki Koechlin to lead its campaign for a new range. The campaign looks to reinforce the transformative power of fashion, says the company.
Just months back, the brand had launched Urb_n in the 499 to1,499 price band, targeting consumers aged 17 to 24. To support the launch, Max had signed up actor Alaya F, its first Indian brand ambassador in 18 years.
Max Fashion is aiming to add at least 50 stores this year, taking the total store count to 550-plus by end-2024. It will also revamp its stores across the country to offer consumers “a world-class retail experience”.
For a brand that has lived a largely quiet life in its first two decades in India, Max Fashion’s sudden aggression is intriguing. For Max, it is consistent with its aim to “understand evolving consumer needs” and “fashion offerings that resonate with such needs”, says Sumit Chandna, deputy CEO, Max Fashion.
The brand has over 520 stores in 200 Indian cities already, with 42 outlets in Bengaluru alone. In 2023, as an Onam gift, it opened its biggest store to date in Kochi spanning over 25,000 sq. ft.
Look at the opportunity. India’s value retail market, excluding food and grocery, is set to touch $170 billion by 2026, up from $111 billion in FY23, according to a report by Wazir Advisors. Apparel leads the category, followed by furniture, beauty and personal care, and footwear. This segment is set to log a compound annual growth rate (CAGR) of 15% between 2023 and 2026, surpassing the overall retail sector CAGR of 10% (The sector is projected to reach $1,219 billion by FY26).
Analysts say, while most brands are moving towards premiumisation, there is still a large market that is upgrading from unbranded to branded products. It is precisely this audience that value apparel players — Max’s rivals such as Trent’s Zudio, Shoppers Stop’s Intune, and Reliance’s Trends — are racing to address.
So what’s Max’s gameplan? Chanda says Max Fashion wants to be an omnichannel platform in the truest sense of the term. But that journey is not going to be easy with D2C brands flexing their muscles already. Then there is the issue of low margins. Santosh Sreedhar, partner (consumer & retail), Avalon Consulting, says, “It is important to learn from players such as DMart, whose customers are seen queueing outside the stores. Such turnout is key since the basket value is low compared to a premium brand basket.”
This means a brand must offer a distinct differentiator. Says Abha Wankhede, associate professor, marketing, KJ Somaiya Institute of Management, “Differentiation — quality at a reasonable price or fusion fashion or even pure ethnic fashion — will help connect with the masses at an emotional level.” That apart, enabling deeper penetration and opening more stores in Tier 2 and Tier 3 markets will be key, says Ram Kishen Y, professor, marketing, KJ Somaiya Institute of Management.
In the end, much will depend on how the brand manages its costs. Says Praveen Govindu, partner, Deloitte India, “Whether it is manufacturing cost, supply chain costs or distribution costs — all of this will become critical to ensure profitability.”
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