Calcutta, Aug. 19: Textile company Arvind Ltd has forayed into e-commerce with its customised clothing brand Creyate. The company has formed an online subsidiary Arvind Internet Ltd.
The move is part of a strategy to tap the booming domestic online retail market, which is pegged at almost $3 billion and set to grow to $20 billion by 2020.
The venture will serve as an additional growth driver for Arvind.
Creyate plans to offer an alternative to the ready-wear market and traditional custom clothing. It has set a target to be a Rs 100-crore brand by next year.
“Arvind Internet will be the vehicle that will enable Arvind’s e-commerce vision. We are all set to be a leading consumer lifestyle player in the digital space by engaging in several business models that can scale globally. Arvind sees e-commerce as a key growth driver for the group and we aim to be Rs 1,000 crore plus business in three years,” said Kulin Lalbhai, executive director of Arvind Ltd.
Customers can also avail themselves of Creyate customised clothing from exclusive outlets in Ahmedabad, Bangalore and Delhi. Arvind plans to have such Creyate outlets in all the metros in the next six months. The target is to have a presence in 15 cities by next year.
Riding on the group’s supply chain and manufacturing, Arvind Internet plans to take Creyate to global consumers next year. It will start with the US where online customised clothing is a thriving market.
Arvind Group has set up an automated manufacturing unit to make customised garments. Lalbhai said the group would invest close to Rs 20 crore in factory and retail stores in the first year.
The company has employed 40-50 e-commerce professionals to be part of its technology team.
Break-even is expected by the end of the second year of operation.
● Online retail segment has expanded 65% to 53.4 million visitors per month
● Apparel has shown strongest growth at 66% in last 12 years, followed by fragrances and cosmetics at 12%
● Among BRIC nations, India is the fastest growing market adding over 18 million Internet users and growing at 41% annually