Madame expects 30-35% sales surge during festive season

“We are planning to open 30 stores in the next 2 years. The investment would vary between Rs 50- Rs 60 lakh per store.”

retail expansion, retail brand, rural market, investment, festive season, sales surge, distribution channel, logistics, retail presence
Akhil Duggar Jain, Executive Director, Madame.

After two years of Covid-induced lull, Jain Amar Clothing Pvt Ltd’s Madame is expecting a 30-35 per cent sales surge during the festive season. The sales surge will come on the back of the brand’s recent focus on tier-II and tier-III markets. Madame has opened more than 20 stores in tier-II towns in the last 12 months in order to ‘enable customers in these smaller towns to access clothing of their choice in the shortest time possible’. “Today our biggest growth markets are tier-II and tier-III cities as the aspirations of the customers in these cities are no different from those in the larger cities. These regions contribute to 30-35 per cent of the overall sales for us,” said Akhil Duggar Jain, Executive Director, Madame. For the current season collection, average order value of Rs 1800- Rs 1950 are getting converted in tier-II and beyond towns. The fashion brand has enabled a dedicated distribution channel in the Eastern region to facilitate easy availability of its products in smaller towns of the region.

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Preparations for the sales surge

Besides offering a range of discounts and offers across categories, Madame is simultaneously strengthening the backend with increased inventory and logistics, Akhil Jain added. “To manage the supply chain of a pre-festive peak, we have done value addition both in the inventory handling space as well as the logistics network. We also added another warehouse (one in Ludhiana itself as an extension to DC and another in Gurgaon) has been created and is operational from the season launch itself,” he said. The brand has also hired logistics partners for low serviceable areas to minimize lead time in B2B supplies. The brand has already witnessed an upswing in order frequency of twice and thrice weekly in the run-up to Durga Puja season in the eastern India.

Retail presence

Madame retails through more than 150 exclusive stores in metros and other towns and 700+ retail touchpoints across the country while also selling through its online website and e-commerce websites like Myntra, Amazon, Ajio and others. “With the focus on West, South and Northeast regions of India for expansion, we are planning to open 30 stores in the next 2 years. The investment would vary between Rs 50- Rs 60 lakh per store,” said Akhil Jain. 

The brand that launched its first store in 2002, has registered a turnover of over Rs 270 crore in FY 2021-22. A family-owned business, Madame was launched in 1993 by CL Duggar Jain and today, launches up to seven new collections a year. “Madame had recently collaborated with Warner Bros to launch a Wonder Woman-inspired collection,” he added.

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First published on: 17-10-2022 at 17:27 IST