RPG-owned Spencer's Specialty business has wound up two of its apparel ranges ‘Mark Ecko' and ‘Beverly Hill Polo Club' to focus on its café chain business Au Bon Pain.
The company had earlier exited another apparel brand ‘Lady Bird'. All three were part of its ‘fast fashion' portfolio of rapid turnaround apparel brands. The promise was having new lines on the shelves every two weeks or so.
“We did not see opportunity in the business. Though we did a pilot with Mark Ecko, the brand was too niche for the Indian market,” said Mr K. Dasaratharaman, President, Specialty Retail. He said the company had brought the brands to India in 2010 as a joint venture with Woolworths. But after Woolworths was bought over by Shop Direct, Spencer's discontinued the association.
INDIAN MARKET
Asked if fast fashion – a concept where designs seen on the catwalk are speedily brought to retail shelves - was ill-timed in India, Mr Dasaratharaman said, “There were pricing issues and the products were not suited for the India market”. Mr Purnendu Kumar, Senior Vice President Retail, Technopak, said, “Fast fashion as a concept is yet to pick up in India. Companies operating in the space still have to figure out the right positioning. Most brands in the category are priced in the premium price points.”
An industry source, however, pointed out that besides the operational issues, the brands did not get promoted adequately. “Spencer's core business is food and grocery. Apparel being a highly dynamic business did not fit into their scheme of things as it did not get the necessary advertisement support from the joint venture partners.”
A slew of international brands are reportedly parting ways with their partners. Versace is understood to be scouting for a new retail partner while American clothing brand Guess has severed its ties with long-term partner Planet Retail.
(Source-: Business Line)