V-Bazaar, by the end of March 2020, plans reaching a total store count of 75, having a retail space of 562,000 sq ft and eyes a turnover of Rs 5 billion.
Presently the value retail chain V-Bazaar operates 29 stores in 25 cities spread across 2 states, 21 stores in UP and 8 stores in Bihar and a total retail area of more than 2.2 lakh sq ft. V-bazaar plans to expand to other states and cities and to have 51 operational stores by the year 2018-19, reaching a total retail space of 380,000 sq ft by March 2019 and also having a presence in the state of Jharkhand. In the year 2019-20, the company has a plan to expand to states of Orissa, West Bengal, etc.
Growing Indian apparel retail market
“Indian retail industry has immense potential as India has the second largest population with affluent middle class, rapid urbanisation and solid growth of Internet. The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players.” says emphatically Hemant Agarwal, CMD, V Bazaar Talking about the online retail, Agarwal highlights, “Although we don’t have presence in the online segment and in the near future too we don’t have any plans for online stores, but the value price point has more advantages online. While shopping online, you can’t always check the fit instantly; hence customers tend to go for more reasonably priced items.”
Despite some hiccups in 2016, India remains the fastest-growing online market in the world. Online retail sales in India will 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 India's online retail market. Online retailing is fueling the growth of all fashion wear. It’s definitely going to grow further in the future as customers are having more digital access than ever.“We are a brick & mortar store, our sales are not much influenced by the online stores. However, we do promotional activities online.” says Hemant Agarwal, CMD, V Bazaar.
Knitwear an important category in value retail
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 the knitwear sale due to the very affordable cost of knitted garments and the variety of style options availability. The so called high street fast fashion majorly constitutes of knitwear and denim. Knitwear has a big role play in the casual wear category and is readily accepted among the masses.
Fashion vs Basic Knitwear
For V Bazaar, the ratio 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 too but the quantity of such products is very 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.