Cloth and apparel maker Raymond Ltd is pulling its Raymond Ltd is pulling its premium Manzoni brand as it i reorients brand strategy to four i key names.
The Mumbai-based company that sells brands such as Park Avenue and Parx introduced Manzoni, a formal menswear brand, in 2000.
It has closed four of the five exclusive outlets of Manzoni but will continue selling the brand at its flagship The Raymond Shop stores till the inventory is exhausted, said Shreyas Joshi, president, apparel, Raymond. i The four shut stores were in Mumbai and Kolkata. The fifth still open is in Delhi
In the recent past, Raymond has closed a numbers of brands including its kids wear brand Zapp! And home textile brand be: Home. It wound up its mass-segment brand Notting Hill in the metros and large cities and confined its sales to Raymond stores in small towns.
The company also withdrew I from a joint venture with Grot- to SpA group of Italy , under which it sold the denim wear brand GAS in India
Raymond's plan to shut loss- making stores and discontinue loss-making brands such as Manzoni and Zapp! Will likely result in significant cost savings, Brics Securities Ltd said in a 2 August report.
“We believe this would catalyse the company's margin expansion”, the report adds.
“Apparel brand positioning i and development is based on market and consumer trends.
We are in the process of phas- ing out Manzoni gradually in an effort to focus on core brands and their profitability,“ said Joshi. “Similar offerings will be made available under the Raymond brand”. The retail firm will focus on our core brands--Raymond,Park Avenue , Parx and Color- Plus.
We are in the process of phas- ing out Manzoni gradually in an effort to focus on core brands and their profitability,“ said Joshi. “Similar offerings will be made available under the Raymond brand”. The retail firm will focus on our core brands--Raymond,
Analysts say the cost of retaining brands that aren't do- ng well is high and Raymond s adopting a cost-efficient strategy.
“In an attempt to consolidate its existing brands, the company has started ready- made garments under Raymond Premium Apparel, extending the Raymond brand,“ said Abhishek Ranganathan, research analyst, MF Global Sify Securities India Pvt. Ltd.
Raymond plans to open an- other 400-500 of its flagship shops in three years, with an nvestment of about `400 crore between the company and its franchises.
“We are looking at a focused brand strategy where we will concentrate on our core brands and strengthen them”, said Rakesh Pandey, president retail and business development, Raymond. “The signature brand Raymond, with its range and quality, will offer what a Manzoni offered”.
With the opening of its 600th The Raymond Shop store in Kothagudem, Andhra Pradesh, in July, Pandey said the focus will continue to be on deeper penetration in small cities.
“If 100 stores come up in tier I and II cities, 400 stores will come up in smaller cities,“ he said.
Raymond has a total of 750 stores, including 40 in West Asia and Bangladesh
The company is also in the process of monetizing the 120 acres of land it owns in Thane, near Mumbai, which will include a complete or a part-sale in phases.
Going by the current rate in the area, this land monetization could generate `1,400-1,600 crore of cash and help wipe out Raymond's net debt of `1,200 crore, Macquarie Capital Securities India Pvt. Ltd said in an August report.
(Source-: mintlive.com)