Knitwear as a category is not only more value for money but also trendy and in-fashion for V Bazaar’s customer base. The category contributes more than 70 per cent of sales revenue in casual wear segment. Knitwear’s contribution is around 40 per cent in the entire range of products available in stores.
As far as brick & mortar stores are concerned, knitwear has a big role to play in the entire sales revenue. The value retail format contributes majorly to knitwear sale due to its affordable cost and variety of style options. High street fast fashion majorly constitutes of knitwear and denim. Knitwear has a big role to play in the casual wear category and is readily accepted among the masses.
India remains one of the fastest-growing ecom market in the world. Online retail sales in India is expected to reach $64 billion by 2021, growing at a five-year CAGR of 31.2 per cent. But government actions, a slowdown in venture capital funding, logistical challenges, and slow growth in the number of online buyers are holding back the market. “We are a brick and mortar store, our sales are not influenced much by online stores. However, we do promotional activities online. As far as the entire knitwear segment is concerned, online stores boost total sales and knitwear garments are preferred over woven while buying online because of the lower price range and universal fit,” says Hemant Agarwal, CMD, V Bazaar.
Fashion vs basic knitwear
For V Bazaar, the ratio between fashion and basic in knitwear is 1:4. “Considering our value retail format, the major collection constitutes of basic knitwear. We do have high street fashion and other fashionable designs but the quantity of such products is limited, as we offer more variety in the basic segment. The majority of fashion in the menswear segment constitutes of Rugby Polo T-shirts, cut n sew T-shirts, Active Raglan T-shirts, cut n sew bermudas, pajamas among others. In women’s and girls’ section, fashion majorly constitutes of peplum tops, boat neck tops, cut n sew bottom wears to name a few,” Agarwal adds.
India’s retail sector has immense potential the country has the second largest population with affluent middle class, rapid urbanisation and solid growth of Internet. The retail industry has emerged as one of the most dynamic and fast-paced sector with the entry of new players. V-bazaar currently operates 29 stores in 25 cities spread across two states pan-India with a total retail area of more than 2.2 lakh sq. ft. Presently the value retail chain has 21 stores in UP and eight in Bihar, with a plan to expand to other states. V-bazaar plans to have 51 operational stores by 2018-19, reaching a total retail space of 380,000 sq. ft by March 2019 while foraying in Jharkhand. In 2019-20, the company plans to expand to Orissa, West Bengal, etc, reaching a total store count of 75 operational stores. By then, the company would be having a retail space of 562,000 sq. ft. By end March 2020, the company eyes a turnover of Rs 5 billion.