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The Fashion Enabler BRANDHOUSE Retails Limited The Fashion Enabler March 2009
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  • The Fashion Enabler

    BRANDHOUSE Retails LimitedThe Fashion Enabler

    March 2009

  • The Fashion Enabler

    Section 1 : Corporate Overview

  • The Fashion Enabler

    The Story so far

    2004 Reid & Taylor Retails Pvt. Ltd. established

    To develop the EBO retail network for the brand

    2006 Rechristened as Brandhouse Retails Ltd.

    Global Luxury brands (dunhill & Escada) choose BHRL as their exclusive India Franchisee

    Scope extended to include retailing of other SKNL brands

    A strong retail team & systems puts BHRL in the radar of international brands entering India

    Year Activity Rationale

    2008 BHRL is demerged by mirroring the SKNL shareholding pattern.

    For every 5 shares , SKNL shareholders get 1 BHRL share

    Retailing dynamics requires a special focus

    The company is looking at brands other than SKNL

    Unlocking shareholder value

    2009 Brandhouse inks JV with Italys No. 1 fashion brand

    Brandhouse Retails listed in March 2009

    Offering true Italian fashion at Indian Prices for Indian youth

    Post all mandatory clearances from SEBI, BSE & NSE

  • The Fashion Enabler

    The Shareholding Structure

  • The Fashion Enabler



    SKNL International

    SKNL Divisions

    Reid & Taylor (India) Ltd.

    Brandhouse Retails Ltd.


    SKNL UK Ltd. SKNL Italy SpA

    EBOs SKNL Brands

    EBOs Int. Brands

    Pvt. Label Joint Venture

    75 % 25 %

  • The Fashion Enabler

    The Strategy behind Brandhouse


    Institutional Sales Export Sales Large Format Stores

    Trade Channels

    Multibrand/ 3rd Party Retailers

    The Customer

    Business Opportunity for


    Retailers Margin

  • The Fashion Enabler

    Section 2 : The Business Dynamics

  • The Fashion Enabler

    Vision & Mission

    The Retail Gateway of India for Fashion & Lifestyle

    Provide a distinct competitive edge to our brands by creating

    an International Retail Experience for addressing the booming

    Indian Consumerism

  • The Fashion Enabler

    Sell @


    Produce &

    Sell @WSP MRP WSP = Margin

    Brand A

    Brand B

    Brand N


    The Business Model

  • The Fashion Enabler

    The Customer-Centric Best Model

    The Desired Store


    Easiest (Accessible & Approachable)

    Friendliest (Courtesy &


    Honest (Price guarantee &


    Latest (Contemporary & Socially correct)

    Widest (Range & Choice of


  • The Fashion Enabler

    BHRLs Key Strengths

    1 Human Resource

    2 Systems Driven Approach

    3 Integration with SKNL

    4 Strong Brand Mix

  • The Fashion Enabler

    1 Human Resource

    A strong, experienced team of retail professionals create the cutting edge in a very competitive scenario

  • The Fashion Enabler

    Retail Operations

    Business Development


    COOBusiness Development


    Scouting New Stores

    Commercial feasibility

    Legal Clearances

    Architect Coordination

    Setting up stores

    Hiring Staff

    Managing Stores

    Analyzing Performance

    Buying & Merchandising

    Staff Training/Incentive

    Visual Merchandizing


    The Functional Division

  • The Fashion Enabler

    Managers, Executives & Support Staff

    The Organogram

    MD & CEO

    COOBusiness Development



    VP Acquisition(Real Estate)

    VP Projects (Store


    VP 1 GM


    Company Secretary & Legal

    GM IT

    GM Commercial

    Regional managers and executives in the 4 regions of India

    VP Buying &



    VP 2GM HR

  • The Fashion Enabler

    Thumbnails of our Key People

    Tarun Joshi M.D. & CEO

    45 years old with over 23 years of experience in marketing, communications & Retail. Has worked with leading multinationals

    Surjit Singh COO Development

    43 years old with over 20 years of experience in marketing & Retail. Has worked with Crossroads, ZEE TV & Akbarallys

    Ashok Dalal COO Oviesse

    42 years old with over 18 years of experience in Advertising & Retail. Has worked with Tata Exports, Westside & Pyramid Retails

    Indraneell Basu V.P. Operations

    35 years old with over 12 years of experience in Retail. Has worked with Benetton, Wills Lifestyle & Titan

    Amit Chopra V.P. Operations

    34years old with over 14 years of experience in Retail. Has worked with Wills Lifestyle, Pizza Corner, Nirulas.

    Sameer Sikka V.P. Real Estate

    34 years old with over 10 years of experience in Retail. Has worked with Raymonds, Shoppers Stop & Weekender

    Paritosh Jain COO Operations

    45 years old, with over 20 years of experience in Retail. He has worked with Bata, Raymonds & Wills Lifestyle

  • The Fashion Enabler

    2 Systems Driven Approach

    Objective, systematic approach that maximizes productivity & efficiencies

  • The Fashion Enabler

    Integrated, Systems-Driven Retail footprint

    Shoppers IT Software


    Buying & Merchandising


    Store OperationsFinance

    Human Resource


    Information Technology

    Logistics & Supply Chain

    Business Development

  • The Fashion Enabler

    The Holistic Approach to Retailing

    Consumer ComprehensionDemographics Geographic Spread

    Affluence Levels

    Wallet Monitor

    Psychographics Usage & Attitudes

    Needs & Wants

    Aspirations & Desires

    BrandComprehensionThe Tangibles Product attributes

    Range & Seasonality

    Pricing strategy

    The Intangibles Brand Positioning

    Brand Identity

    Brand Values

    RetailComprehensionExternal Environment Location Aspects

    Commercial Viability

    Long-term Outlook

    Internal Environment Visual Merchandising

    Inventory Management

    Service & CRM

  • The Fashion Enabler

    Operational Strengths Highlights

    Area Challenges BHRLs Strengths Real

    EstateLimited supplyVery high Rentals

    Dedicated team of professionals with constant mapping of Indian market. Early information & action enable early entry into new projects at better costsCollective bargaining (all brands) for better rentals

    Projects Quality, Time & Cost management pan India

    In-house team of architects & related specialists Regional tie-ups with contractorsCollective bargaining with vendors

    Operations Skilled ManpowerQuality Standards Inventory Management

    Regular training & career development opportunities programs to attract & retain quality manpower

    Innovative incentive packages for added motivationS.O.P. manual implemented through national / regional teams.SAP (I.S. Retails) under implementation for better systems with special focus on Merchandise Planning.

    Knowledge Bank

    Competitor performanceIndustry InformationConsumer track

    Data collection by regional teams (monthly)Subscription to various industry reportsRegular research & surveys

  • The Fashion Enabler

    3 Integration with SKNL Group

    The advantages of being a part of a large group with over six decades of experience in textiles & fashion

  • The Fashion Enabler

    The Overall Picture


    SKNL Group

    International Brands





    Outsourcing / Manufacturing

  • The Fashion Enabler

    The Other Advantages


    Logistics & Supply Chain

    Buying & Merchandising

    SKNL Group

    Sourcing & Manufacturing

  • The Fashion Enabler

    4 Strong Brand Mix

    The advantages of having a strong portfolio of brands with strong equity & a well- established track record

  • The Fashion Enabler

    Solid Brands with Strong Brand Equities

    Brand Profile

    Reid & Taylor A 165 year old heritage brand from Langholm, Scotland, Reid & Taylor was launched in India in 1999. Today it is a premium suiting and apparel brand with a very high brand equity. As on Mar 08, it has 158 EBOs across the country.

    Belmonte A unique combination of Fabric & Apparel in the mid-price segment, Belmonte has grown into a well-recognized brand in two years, since launch. As on Mar 2008, Belmonte has 103 EBOs across the country

    Carmichael House A mid-premium home textiles brand Carmichael House has become the No. 2 brand in the country in less than two years. As on Mar 08, it has 113 EBOs across the country

    Stephens Brothers A Super-Premium Brand SB is a JV between SKNL and Austin Reed, UK. It offers formal wear for men & women. As on Mar 08 it has 19 EBOs in India

    dunhill A leading Luxury brand for men, dunhill has 3 boutiques in India. In a nascent Luxury market in India dunhill is already a leading name for mens apparel & accessories within one year of launch

  • The Fashion Enabler

    Section 3 : Performance & Projections

  • The Fashion Enabler

    Financial Overview




    No. of Stores 398 683 909

    Area (Sq.ft.) 4,18,415 666,575 911,100

    Revenues (Rs. Cr.) 313.79 552.35 812.72

    EBIDTA (Rs. Cr.) 31.22 41.18 78.84

    EBIDTA % 9.95% 7.45% 9.7%

    PBT (Rs. Cr.) 22.63 24.12 33.40

    PBT % 7.2% 4.4% 4.1%

    PAT (Rs. Cr.) 13.31 13.39 22.15

    PAT % 4.2% 2.4% 2.70%

  • The Fashion Enabler

    Rental matrix Own StoresRent/PSF month Metro Tier 1 Tier 2

    Reid & Taylor 225 175 125

    Carmichael House 175 125 80

    Stephens Brothers 300 200 -

    Belmonte 160 125 90

    Luxury 800 - -

  • The Fashion Enabler

    Growth Plan in terms of Sales/Sq ft/ Day (PSFPD)

    Sales/PSFPD 2008-09

    Reid & Taylor 27.06

    Carmichael House 16.41

    Stephens Brothers 31.88

    Belmonte 19.15

    Luxury 53.33

    TOTAL 22.69 All PSFPD figures in INR All PSFPD is calculated on carpet area

  • The Fashion Enabler

    Section 4 : The Indian Retail Industry & Fashion

  • The Fashion Enabler

    Indian Economy & Retail

    GDP USD 804 Bn

    Private Consumption USD 482 Bn ( 60%)

    Public spending & Gross Capital formation USD 322 Bn ( 40%)

    Non - Retail USD 182 Bn ( 38%)

    Retail USD 300 Bn ( 62%)

    Source : Central statistical Organization & Technopak Analysis

    Retail is a key driver in the Indian economy (37% 0f GDP)

  • The Fashion Enabler

    Growth of Organized Retail in India

    2002 2007 2011 (Projected)

    Total Retail

    Organized (1.8%)

    Total Retail

    Organized (4.6%)

    Total Retail

    Organized (11%)

    USD Bn 194 3.5 300 14 527 58

    INR Cr 8,25,000 14,850 12,78,100 59,000 22,39,800 2,46,378

    Source : Cygnus Research, Images & Technopak Analysis

    Growth of Organized retailing is a huge business opportunity

  • The Fashion Enabler

    Share of Categories in Organized Retailing

    Source : KSA Technopak

    Clothing, Textile & Fashion Accessories take a clear lead in Organized retailing

  • The Fashion Enabler

    Category-wise split of Clothing & Textile Industry

    Source : Images F&R Study

    Menswear is clearly the leader by value

  • The Fashion Enabler

    . And Menswear will continue to dominate

    Consumption trends in 2015

    Source : McKinsey Analysis

  • The Fashion Enabler

    Category pie in Menswear

    Source : The Knowledge Company

    Formal Wear & Fabric constitute about half the pie.Casual Wear is catching up fast

  • The Fashion Enabler

    Structure of the Indian Menswear Market

    Source : Images F&R Study

    Louis Vuitton, Chanel, Gucci, Zegna, dunhill, Escada

    Nautica, Lacoste, Manzoni, Gant, Espirit, Tommy, Stephens Brothers

    Louis Philippe, Wills Lifestyle, Van Heusen, Raymonds, Zodiac, Reid & Taylor

    Peter England, Koutons, Excalibre, Belmonte


    1,500 Cr. (YOY 36%)

    Regional Brands

    Total Menswear Market is INR 43,300 Cr. YOY Growth % reflects Value growth Figures in brackets are price per shirt in INR


    Lower Mass Market

    (Upto 250)


    Super Premium(3000-5000)


    Mid Price(600-1200)


    Lower Mass Market (Upto 500)

    6800 Cr. (YOY 24%)

    8800 Cr.. (YOY 17 %)

    8100 Cr.. (YOY 11 %)

    18100 Cr. (YOY 7 %)Lower Mass Market(Upto 250)

  • The Fashion Enabler

    The Global Luxury Fashion brands Market (USD 80 Bn.)





    Source : The Cult of The Luxury Brand

  • The Fashion Enabler

    The Asian Contribution ( USD 29.6 Bn.)

    Source : The Cult of The Luxury Brand

    Indian Market = USD 296 Mn. Or INR1258 Cr.

  • The Fashion Enabler

    Evolution of the Luxury Market (Asia) SUBJUGATION

    Authoritarian rule

    Poverty & Deprivation

    START OF MONEY Economic


    Masses buy white goods

    Elite start buying Luxe


    Acquire symbols of wealth

    Display economic status

    FIT IN

    Larger scale adoption of Luxe

    Fuelled by need to conform


    Locked into Luxe habit

    Confident, discerning buyers

    SOURCE : The Cult of Luxury Brand, Industry estimates



    0 5 Years 6 10 years 11 20 yearsIndian growth Estimates

    In the next 5 years, Indian market is projected to grow around 10 times its current size

  • The Fashion Enabler

    Section 5 : Looking Ahead (Future Plans)

  • The Fashion Enabler

    1. Additions to our EBO Portfolio

    SKNL BRANDSNew Brands Being Launched in Garments by SKNL

    Premium FormalwearPremium Casualwear

    NON-SKNL BRANDSNew Brands seeking BHRL as a Pan-India Retail Partner

    Leading MNC based in India (for a Youth Brand)International Luxury Brands

  • The Fashion Enabler

    2. Introduction of the JV

  • The Fashion Enabler

    AgeBracket %Population

    017years 40.1%

    1835years 30.2%

    3649years 17.1%

    50years+ 12.6%

    Analyzing The Indian Population

    Fashion Conscious Propensity to spend Decision makers Key Influencers

  • The Fashion Enabler

    Developing the Business Proposition

    Fast Fashion (Global)

    Affordable Price

    Attractive Locations

    Family Store

    Total Wardrobe Solution

    Core Target (18 35 yrs)

    College student

    Working singles

    Working married no kids

    Working married very young kids

    The PropositionLarge stores of 8-10,000 Sq.ft.

  • The Fashion Enabler

    Aspirational Position in Value Priced Fashion Apparel


    Super -Premium





    Affordable Price

    Fashion ProductsQuality

    Family StoreCore Target Segment 18 35



  • The Fashion Enabler

    Our Partner Oviesse The Leader in Italian Fast Fashion

    Part of Gruppo Coin, Italys leading fashion retailer with sales of over 1.1 billion EurosOviesse, the benchmark in Italian Fast Fashion

    Over 11 million customers in Italy every yearOver 100 million garments sold every yearSales of over 820 million Euros

    A favorite with Italian shoppers9% of the share of the wallet of Italian Consumers1in every 5 Italians shop at Oviesse every year1 in every 3 Italian Kids wear Oviesse apparel

    Spreading beyond ItalyOver 340 stores in Italy & abroad

  • The Fashion Enabler

    The Business Structure


    Master Franchise

    SKNL Brands

    Other Premium / Super-Premium Brands

    Joint Venture Subsidiary

    Luxury Brands

    Oviesse Joint Venture

  • The Fashion Enabler

    JOINT VENTURETrend Forecasting Design & Development Manufacturing/ Sourcing Distribution & Logistics Brand Building Retail Stores

    Margin = MRP - Cost


    The Business Model

    Sell @


    62.5 %

    37.5 %

  • The Fashion Enabler

    Thank You

    BHRL IRP1BRANDHOUSE Retails LimitedThe Fashion EnablerSection 1 : Corporate OverviewThe Story so farThe Shareholding StructureSlide Number 5The Strategy behind BrandhouseSection 2 : The Business DynamicsVision & MissionSlide Number 9The Customer-Centric Best ModelBHRLs Key Strengths Slide Number 12The Functional DivisionThe OrganogramThumbnails of our Key PeopleSlide Number 16Integrated, Systems-Driven Retail footprintThe Holistic Approach to RetailingOperational Strengths Highlights Slide Number 20The Overall PictureThe Other AdvantagesSlide Number 23Solid Brands with Strong Brand EquitiesSection 3 : Performance & ProjectionsSlide Number 26Slide Number 27Growth Plan in terms of Sales/Sq ft/ Day (PSFPD)Section 4 : The Indian Retail Industry & FashionIndian Economy & Retail Growth of Organized Retail in IndiaShare of Categories in Organized RetailingCategory-wise split of Clothing & Textile Industry. And Menswear will continue to dominate Category pie in MenswearStructure of the Indian Menswear MarketThe Global Luxury Fashion brands Market (USD 80 Bn.)The Asian Contribution ( USD 29.6 Bn.)Evolution of the Luxury Market (Asia) Section 5 : Looking Ahead (Future Plans)1. Additions to our EBO Portfolio2. Introduction of the JVAnalyzing The Indian PopulationDeveloping the Business Proposition Aspirational Position in Value Priced Fashion ApparelOur Partner Oviesse The Leader in Italian Fast FashionThe Business StructureSlide Number 48Slide Number 49