Pepe Jeans targets Rs 2,000 crore gross sales by 2027
Pepe Jeans aims to achieve gross sales of Rs 2,000 crore by 2027 alongside the inauguration of 100 fresh stores.
As part of its expansion strategy, the company intends to penetrate deeper into Tier-II and III cities, with a focus on smaller towns accounting for two-thirds of the new store openings. Furthermore, Pepe Jeans is diversifying its product range by venturing into the footwear segment, particularly targeting the women's market segment with the introduction of an India-made footwear line slated for May.
In a strategic move, Pepe Jeans recently solidified a partnership with the Red Bull Academy for Formula 1, assuming the role of title sponsor for the F1 Academy team, including the women's team. This collaboration paves the way for the launch of a Red Bull racing line around August.
Noteworthy financial growth has been reported by Pepe Jeans India, with a substantial increase in revenue. According to regulatory filings accessed by Tofler, there was a 54 per cent surge in operations revenue to Rs 562 crore in FY23 from Rs 364 crore in FY22. Additionally, the brand’s net profit rose by 59 per cent to Rs 20.86 crore in FY23 from Rs 13.09 crore in FY22. This growth was accompanied by a significant boost in marketing expenditure and sales promotions, which surged by 67 per cent to Rs 40.28 crore in FY23 from Rs 24.19 crore in FY22.
Manish Kapoor, Managing Director and CEO, outlined the company’s evolving marketing strategy, highlighting a shift towards digital channels. Notably, 60 per cent of the advertising budget is allocated to digital platforms, while traditional mediums such as print and television receive the remaining 40 per cent. Additionally, the brand plans to increase expenditure on content creation to 18 per cent in the coming years.
