Pantaloon to ride on own labels

With its private labels giving it higher margins and revenues, Pantaloon Retail is planning to spin them off into individual store brands in the near future. The retail major has identified four of its leading private labels to add to its retail format considering the healthy growth rates registered by each of them.

Labels such as John Miller, Bare, Ajile and Rig have been shortlisted to make a foray into the retailing industry as standalone format stores.

Speaking to Business Line, Ms Bina Mirchandani, Head (Category Management), Pantaloon Retail, said: "Today our private labels generate between 75% and 80% of our revenues. Some of these brands have taken a natural level of growth in certain areas and we are thinking of exclusive stores for them."

For instance, one of its oldest menswear brands, John Miller, has achieved `critical mass' to exist as a standalone store brand.

Unisex brands such as Bare (denim and leisurewear), Ajile (sportswear) and Rig (utility weekendwear) have also been registering significant volumes to serve as individual store brands.

Besides, the higher margins registered by the private label brands has led Pantaloon to exploit the potential of these brands. Adds Ms Mirchandani, "As the brands are directly sourced from the manufacturer, it is easy to get higher margins. There is now a deliberate focus on these brands to take them out of Pantaloon into new formats."

At present, Pantaloon sports nearly 20 private label brands and it is the ladies' ethnicwear segment which is pegged to grow in excess of 50%. Its private label in ethnic ladies wear — Akkrruti — has already tied up with designers such as Rocky S. "The minute we feel the market is big enough we undergo a private label exercise," states Ms Mirchandani.

Pantaloon is eyeing the ladies' Westernwear segment and the men's partywear segment in which it might rope in more designers to give impetus to its private label exercise.

Expanding network

At the same time, Pantaloon has been refurbishing its acquired denim brand - Jealous - belonging to Indus League Clothing, in which it has a stake. The Jealous 21 range comprises casual, club and denim wear. The brand is being reinvented to infuse energy into it. The company plans to expand its retail network for a nationwide presence with 120 stores in the next three years.

"We treat Indus League's brand of Jealous as one of our private labels," states Ms Mirchandani.

Source : Moneycontrol