Targeting 600 stores pan-India, Max Fashion gears up to leverage value-fashion market
04 August 2023, Mumbai
Max Fashion has been a popular brand for the Indian diaspora living in the Gulf countries for the longest time and it is only befitting that Max Fashion’s flagship store is in Kochi (Kerala), where most Gulf Indians are from.
Known for its trendy and budget-friendly clothing, accessories, and footwear, the UAE-based Landmark Group has not only spun a success story around this label in the Middle East but is taking on the likes of Trent’s Zudio, Reliance Trends, and Shoppers Stop Intune.
Proliferates
As market expansion in the value apparel, accessories, and footwear segment expands prolifically across India, particularly in Tier II and III cities, Max wants to get ahead in the game.
Harminder Sahni, Co-founder of Gurgaon-based retail consultancy Wazir Advisors, says the shift towards value retail will help companies such as Max Fashion, catch consumers who are shifting from unbranded to branded products.
Nearly 500 stores and counting
The brand opened its first outlet in Indore in Madhya Pradesh, the choice being a strategic one, targeting Tier II youth moving from unbranded to branded, and today Max Fashion is present in over 200 cities, covering Tiers I, II, and III.
By next year, Max Fashion plans to add another 100 stores across India.
This aggressive expansion plan seems to be taking on a similar journey that another popular Indian value-fashion brand Zudio is already on. Max Fashion’s 465th outlet is in Kochi which is also the brand’s biggest – a comprehensive big-format retail experience.
Spoilt for choice
At the launch of the flagship store, Sumit Chandana, Deputy CEO, of Max Fashion India said the consumer will be spoilt for choice in the 25,000 sq. ft store. South India is a key market for Max Fashion as it relies on the Indian expat community’s familiarity and the Kochi store is a strategic step towards consolidation of the Kerala market.
This is the retailer’s way of giving back to the community as an Onam gift.
Recently, Max Fashion opened an outlet at The Whitehouse Shopping Center in Bapu Nagar, Ahmedabad. The other new big retail outlet launch was in Udaipur. Spread across 18,000 sq. ft, the store is located at Bhumika Group-owned Urban Square Mall.
Marquee brands; This mall also features other brands like Adidas, Puma, Asics, Shoppers Stop, Marks & Spencer, Tata Westside, Tata Zudio, Reliance Trends, and Levi’s among others. Max Fashion has positioned its products at an economical Rs 129 per unit for kids and Rs 199 onwards for youth.
Turning the heat on competitors
Max Fashion is playing in the value retail space where competition is tough and most players have ramped up their marketing and sale network. Tata Trent’s Zudio is a case of aggressive expansion and growth.
Trent has cottoned on to where the expansion lies– it is not growing its mid-market brand Westside as much as Zudio the value retail brand. While opening 14 new Westside stores the numbers are different for Zudio.
On the roll
Touted as the biggest success for Trent, Zudio would open 200 more stores in FY 2024 compared to the 117 stores opened in FY 2023.
Currently, Zudio’s pan-India store count is 352. Boasting high-quality products in the value-fashion segment, Zudio’s pricing is below Rs 1,000 for collections.
Apple of one's eye; Zudio is also the pride and joy of the Tata Group’s retail division as its revenue grew 61 percent to Rs 2,171 crore in the third quarter of fiscal 2023 and saw a tidy profit of 21 percent.
On the expected lines
Along similar lines, Shoppers Stop’s Intune has priced its products under Rs 500 per unit for men, women, and children.
In the April-June period, three Intune stores were opened on a trial basis. The plan is to take up the number to 10 in the next few months. Venu Nair, MD and CEO of Shoppers Stop stated that Intune was created in a fashion-for-all format directly targeting young families.
The new format will be 100 percent sell private labels but not follow the Shoppers Stop format under which it also retails third-party brands. The outlets will also be smaller, focussing on affordable products.
