Mumbai, Sept. 11: After crafting a presence in the mid-priced segment, Oxemberg, the readymade garment brand from Siyaram Silk Mills, is now planning an entry into premium and economy brands.
For the premium segment, the division may rope in an international brand through a tie-up. However, a brand may also be developed internally, company insiders said. Sources added that for short-listing the international brand, importance would be laid on its appeal, values and whether it fits into the “radar screen of Indian minds”.
Oxemberg’s entry into both price points is expected to straddle it across the Rs 6,500 crore branded men’s wear market.
A study conducted last year by leading consultants said that the premium end, priced at over Rs 800, constitutes 10 per cent of the total men’s apparels in the market. The mid-price segment, priced between Rs 400 and Rs 799, occupies 30 per cent of the market. The economy range, priced below Rs 400, accounts for 60 per cent of the market.
According to Ashish Chada, brand manager, Oxemberg, plans are on to increase its penetration in the northern markets and also a venture into semi-formals through a brand extension is on the cards. The company has already positioned itself as one of the top three brands in Andhra Pradesh, Kerala and Karnataka in the mid-price category. Its product portfolio encompasses formal wear, casuals and denims.
“We are looking to expand markets, particularly in the B and C class cities apart from the northern regions. The distribution network would be enhanced by setting up exclusive retail stores apart from tying up with retail chains like Shoppers Stop, Akbarallys and Ebony,” Chada told The Telegraph. Twelve such exclusive retail outlets would be set up (it now has a network of 1,500 multi brand outlets) in Mumbai, Delhi and Pune. The expansion plans may catapult Oxemberg into a Rs 100-crore brand over the next two years. Oxemberg is now planning an aggressive advertising campaign both in the print and electronic medium in the coming months.
According to executive director Vijaylaxmi Poddar, who heads the team at Oxemberg, even as the division is looking at a minimum growth of 20 per cent, the brand will continue to focus on getting a better value for money proposition in the years to come.
Siyaram Silk Mills is the flagship company of the Rs 1000-crore Siyaram Poddar group having diverse interests in paper, textile and rubber.