Apparel Online India Magazine February 1st Issue 2019 | Page 44

DOMESTIC UPDATE HAVE YOUR SAY BREAKING NEWS Tell us your news by emailing at [email protected] To read the latest sustainability news, go to https://apparelresources.com/business-news/sustainability/  fashion and less discount. Only last season, leftovers were discounted,” informed Vipul. According to the Brand Trust Report, this model has been very effective for Mufti as it has been touted to be the fourth most trusted brand in a study spanning across all categories for 1,000 brands and about 6,000 point of sales. EQUAL POTENTIAL ACROSS ALL TIERS OF THE INDIAN MARKET The rise in e-commerce has also increased the demand across different regions in India. Tier-2 and Tier-3 markets are emerging as the ripe demand areas with the rise in organised retail in India. Vipul explained the changing market dynamics along with the geographical factors stating, “The amount of business that happens in one metro is high but the amount of total quantum of business that can happen in the peripheral zone is much higher because market is getting bigger.” Not just limiting themselves to online expansion to reach the consumers, Mufti has an elaborate strategy to expand its bricks-and-mortar presence across all tiers of the market. “We will start big for the metros by investing aggressively in the flagship stores through a multi- category approach,” said Vipul. They will then focus on Tier-2 cities by measuring the performance of existing stores and establishing new stores in proximity to the better- performing outlets. Finally, the Tier-3 segment is being scrutinised on the basis of how the e-commerce demand lies in the area. The higher demand regions will be the new destinations for smaller Mufti stores. “Another fact online fashion is proving to us is that smaller towns are warming up to the idea of fashion and subsequent costs much before we had anticipated they would do and hence it is instilling huge confidence in retailers like us,” said Vipul. CATEGORY EXTENSION TO ACHIEVE A ONE-STOP STORE SOLUTION Keeping at par with their brand image of executing constant changes and additions to match the changing demand, Mufti is foraying into several new categories to provide a one-stop solution to the consumers. Its footwear category was recently launched in the market and has witnessed a positive response due to the balance of fashion and comfort it strikes. Vipul explained further, “We have used things like Skynit for the shoe top that provides a degree of breathability while the lightness of the sole enables the customer to wear it the whole day. We are also inching towards launching a line of accessories for the coming Autumn/ Winter season.” Adding an athleisure line to the product category that boasts of an assortment of T-shirts, joggers, lightweight hoodies, is on the cards for Mufti for Spring/Summer 2019, as Vipul stated, “Not only do people want to wear something comfortable but they also want to be healthy. Our athleisure line can be worn on a Sunday afternoon or for a lifestyle that is more active.” The product category expansion is also elevating. Credo Marketing, which hosts Mufti, is further encouraging it to contemplate on launching another brand in the coming future catering to a younger consumer category. This decision is strengthened by Mufti’s strong sourcing capabilities based out of India and China, with latter fulfilling its small orders in the auxiliary categories of shoes, jackets and sweaters. Speaking about the benefits that Mufti as a buyer poses for local manufacturers, Vipul stated, “Our relationship with the local vendors has enabled them to expand their horizons. Diverse product categories and processes that China was exclusively doing for us are now done by our local vendors who have become confident enough to buy those machineries and achieve the same capabilities.” 44 Apparel Online India | FEBRUARY 1-15, 2019 | www.apparelresources.com Hopscotch's parent company raises Rs. 528 cr. via Barclays Hit The Mark, the parent company responsible for operations of baby apparel and clothing platform Hopscotch, has managed to raise about US $ 50-75 million (Rs. 352-528 crore) by mandating Barclays, a global investment bank, to scout for new investors. Rahul Anand, the Chief Executive of Hopscotch, has given a confirmation in this regard to a leading English daily without mentioning anything about the targeted valuation the company is aiming for in its latest capital growth. Presently, the company has upturned about US $ 50 million in the equity financing field with renowned investors such as Facebook Co-founder Eduardo Saverin, who invested in the organisation through Velos Partners, his investment firm, in 2015. Hopscotch has also got LionRock Capital on board, which is a Singapore-based investor involved with ride-hailing majors Go-Jek and Didi Chuxing; Wei Yan, Co-founder of Amazon- owned Diapers.com, India Infoline Ventures and RPG Ventures, among others, as investors. The development falls in line with the increase in interest shown by global investors in the Indian broader baby products and apparel segment for at least the top companies thriving in the space. The invest interest had seen a peak when Alibaba-backed Babytree was valued at US $ 2 billion after raising capital from Alibaba in May. Hopscotch, a brainchild of Harvard graduate Anand, retails via its namesake platform. Operating on a fast-fashion model, it accomplishes the launch of hundreds of styles within days to rapidly tap latest fashion trends. “We expose hundreds of data-steams to a machine learning model and come up with demand forecasts. To put things in perspective, we launch more styles per day than typical brands do in six months. We can identify bestsellers and inventory which does not sell within two days,” informed Anand. The funding will be partially used to launch an omnichannel strategy as per Anand. According to the CEO, Hopscotch recorded gross sales of Rs. 350 crore for calendar year 2018, and is projecting Rs. 900 crore in 2019.