Ritu Kumar brand ‘Label’ to compete with Zara, H&M for market share

By

Maverick Martins

Published
Dec 13, 2016

Indian designer brand Ritu Kumar has expanded its product offering, launching a casualwear sister line 'Label', to compete with international brands like Zara and H&M.

The company has also increased its advertising budget to 5-7℅ of its revenues for a larger market share in India, according to a report in the Mint.
 
“We are focusing on digital video campaigns to promote our line. We have also widened our product line by introducing ‘everyday clothing’ this year. We want people to discover Label,” said Amrish Kumar, chief executive at Ritu Kumar, adding that the new strategy had increased the year-on-year sales of the brand by 94% in October.

In India, global fashion brands Zara, H&M, Levi's and Fabindia posted between a 17% and 20% year-on-year jump in their revenues in the year to March 2016.

Priced between Rs 800 and Rs15,000, Label hopes to compete with the fast fashion internationals. Label’s maximum apparel range, Kumar said, is priced between Rs3,000 and Rs5,000.
 
Currently, the company sells its brands through 52 exclusive outlets and 17 multi-brand outlets across the country. It also operates five exclusive stores abroad -- two in Dubai and three in Mauritius.

In the next three years, Ritu Kumar is expecting to add 35-40 new exclusive stores, taking the total store count to 90.
 
Established in 1960s, the company also sells through online marketplaces like Flipkart, Myntra and Jabong, along with its own e-commerce platform. Currently, it earns 5% of its revenues through online platforms, but is hoping to increase it to 15-20% in the next two years.
 
“For the last five years, we have been clocking a growth rate of 20-25℅. This year, we were hoping to grow at 35% before demonetisation. We are waiting to see how things unfold now” said Kumar.
 
According to a March survey conducted by consulting firm AT Kearney, the Indian fashion and lifestyle market is expected to touch Rs3,94,000 crore over the next five years, growing at a compound annual growth rate (CAGR) of 12%.
 
Currently, the market is estimated at Rs 2,21,000 crore.