Germany-based fashion apparel retailer s.Oliver is restructuring its Indian operations to tap the fashion apparel business in the country.
The company has roped in a new joint venture partner in India as part of new expansion plan for the market that includes investment of €20m by 2016, reported The Economic Times.
Design Pod founder and managing director Rajive Ranjan said that the company has bought 49% stake held by Orient Craft Brands in s.Oliver’s India operations in April 2012.
"The change is a part of an all new strategy for the brand in India," Ranjan said.
"S Oliver entered India in 2007 along with Orient Craft and there have been a of learnings in the past five years. So with the new partnership, we want to get the model right."
Ranjan said until 2016 the two partners will together invest €20m in marketing and re-positioning of the brand in India and to establish around 200 point of sales (PoS) by then, up from 15 at present.
The 200 PoS will include about 60 exclusive outlets and the firm will focus on store size ranging between 1,200-2,400ft² as against larger formats of up to 5,500ft² earlier.
"We will also introduce new entry level price points such as Rs 2,999 for denims and Rs 499 for T-shirts," Ranjan added.
"At present the Indian operation of S Oliver is not profitable. Our aim is to make it profitable by 2015."
With presence in over 30 countries, the global brand, which has reported worldwide sales of €1.29bn in 2010, has been sourcing from India for its global operations.
"Around 12 per cent of the total global sourcing is done from India. The company plans to increase it going ahead."