ANIEK PAUL
Calcutta, Aug.24 : The Rs
20,000 crore branded garment industry is waiting for a monster to rear its head –
tobacco major ITC Ltd.
Virginia House is giving final touches to a
grand plan of pushing its Wills Lifestyle brand of readymade garments into every corner of
the country, leveraging its distributor network for cigarettes.
Though ITC’s lifestyle business –
better known as LRBD in Virginia House – was positioned as a player in the upmarket
segment, a mass brand is being launched soon, which will give all known "common
man’s brands" a run for their money. Not only in quality – as every other
new entrant would say – but also in price.
"ITC intends to break all known price
barriers in the industry. Its entry into the mass market could set off a price war,
perhaps the first in the branded garment industry", said a source familiar with
ITC’s plans.
The company will no longer remain confined
to its exclusive outlets. There are around 50 such outlets in the country now; many more
are under planning. "The mass brand will be sold through multi-brand outlets in every
district with a population of over one lakh," said the source.
ITC is keeping its plans under wraps. When
asked about its plans for LRBD, the company’s official response was : "The
strategies for the launch are being drawn up. It is too early to share the details
now."
ITC will not take too long to play its
hand. It is expected to enter the mass garment business within a few months. Also on the
cards is the launch of a super premium range of readymade outfits under a new brand, Wills
Classic.
ITC’s grand market penetration plan is
being accompanied by substantial investment on the Wills brand. Sources familiar with
ITC’s plans say the company will be investing over Rs 100 crore this year to support
the market expansion.
"ITC’s distributors will be asked
to chip in. They will have to secure rack-space for ITC’s readymade garments in
multi-brand outlets in their localities," sources said.
For ITC, LRBD is more than just another
revenue stream. The management is dead serious about its success. "Investments made
in LRBD will benefit ITC’s cigarette business as well, as the core brand – Wills
– is used by both," a corporate analyst pointed out.
"The investment in LRBD is comparable
with the amount spent by ITC on advertising its cigarette brands previously. Though not
surrogate advertising as we know it, the return on ITC’s investments in LRBD are
manifold.
"If ITC succeeds in establishing Wills
as a leading brand in the ready-to-wear apparel market, it will be one of the best
examples of brand extension.
"Even the Dunhills and Cartiers could
not break out of the upmarket segment when the brands were extended to lifestyle products
and accessories. The success of Wills as a mass brand of readymade garments will set new
standards," said a management consultancy firm.
