Footwear Major Woodland to franchise internationally

Feb 16, 2010: Footwear and apparel player Woodland will open exclusive stores in select foreign markets later this year, marking its foray into single-brand retailing overseas. The company, according to its top official, would be using the franchise route for its international expansion. The home-grown brand is in advanced stages of negotiations in some markets like the Middle East, South-East Asia and Sri Lanka for selecting local franchise partners and said it will have three to four exclusive outlets abroad by the year-end. At present, Woodland is present in over 600 multibranded outlets in the Middle East, Singapore and Thailand. 

"We are on the verge of concluding negotiations and opening our first exclusive outlets in overseas markets. By end of 2010, we will have at least a total of 3-4 outlets overseas," said Harkirat Singh, MD, Woodland. "Different countries follow different rules for investments in retail business. In such a situation, franchise partnership is a good option. Besides, that way the local partner makes the investment," Singh added. 

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Lilliput mulls franchise route to foray into emerging markets

Kidswear brand Lilliput is targeting emerging markets outside India which have an eye for affordable fashion, reports Business Line.

Lilliput Kidswear Franchise, which has 225 exclusive brand outlets in India, is also present overseas across 30 stores in West Asia, Gulf, Egypt and China. The company is now eyeing the markets of Vietnam, Tunisia and Greece, and is already in talks to set up exclusive stores in the “next six-seven months” in these countries through the franchise route, the report added. The Lilliput Franchise will expand globally, one of them few brands embarking on a global expansion.

“Currently, our overseas business (which is two years old) is on a learning curve. Overseas contribution to our sales is now small and major growth will continue to come from India… but there is growing potential in these emerging markets, which have a high demand for affordable brands with an international product portfolio,” quoted Sanjeev Narula, managing director, Lilliput Kidswear Franchise, which operates in the “affordable” category retailing apparel, shoes and accessories for children between 0 and 12 years, in the report.

The slowdown did see sales dipping a bit in India. However, kidswear unlike adults apparel is a “compulsive” buy, said Narula. “With children outgrowing clothes every six months and needing to change clothes at least two-three times a day, the category has huge growth potential. Even with the slowdown, parents could not cut down on kids' clothes,” Narula added. 

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The Loot Franchise Expands to Over 100

The Loot India’s largest multi brand retail store has added another feather to its cap by having successful 100 franchises stores across India to its success list.

The Loot has adopted the franchise model to help reach consumers on a wider range and to make the brand a mass brand. At present The Loot is present in over 75 cities across India and has over 140 stores to its credit.The Loot is looking at hitting 200 stores across India by March 2010.

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ITC's Wills Lifestyle turns profitable, to franchise in Tier 2 and 3 Towns

Profitable retailing: A Wills Lifestyle store on Camac Street in Kolkata. All Wills Lifestyle stores across 30 cities are now recovering costs, according to Atul Chand, chief executive of ITC’s lifestyle retailing division.

Way2Franchise First and Exclusive: ITCs lifestyle retailing business has turned profitable. Over the past year, ITC has managed to reduce rents by as much as 30% and all Wills Lifestyle stores in 30 cities are now recovering costs, according to Atul Chand, chief executive of ITC’s lifestyle retailing division. Apart from this, about one-fifth of the lifestyle retailing division’s revenues come from contract manufacturing of garments and accessories for designer brands such as Calvin Klein, Polo Ralph Lauren, Trussardi and MaxMara. “Exports are a high-margin business,” Chand added.

ITC currently has some 50 Wills Lifestyle stores, which sell ready-made apparel. Over the next six months, it is going to launch at least two stores a month, said Chand. The company is now looking to enter cities with smaller populations, and for the first time, is going to get into local franchise arrangements.

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V Mart Retail to franchise affordable fashionwear brand, V Gals

V Mart Retail Ltd, one of India’s growing value retailers, has now registered its presence in Arrah in Bihar and Ujjain in Madhya Pradesh. The size of its Arrah store is 10,000 square feet, where as that of its Ujjain is of more than 8,000 square ft. V Mart, at both the stores, is offering kirana products, ladies wear, kids wear, toys and games, men’s wear, footwear & luggage section, home furnishing, crockery and plastics goods etc to their customers.

V Mart retail is also all set to roll out its franchise format women centric “V Gals” stores in northern and western India. The V Gals stores will stock affordable designer clothing for women and accessories. The company has its own private labels, Charcoal, Cruxx, J-White, Groovy Kids manufactured in-house and quasi private labels sourced from other manufacturers. 

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