Wearing Disney on their sleeve

While the market for children's apparel continues to grow at a brisk pace, one more company gets ready to make its debut. Disney Consumer Products, a division of The Walt Disney Company (India), is all set to launch its new range of apparel and fashion accessories.

Called Disney Jeans, this brand will be manufactured and marketed by Indus Clothing Ltd (ICL), a Rs 60 crore company, also the sole licencee for Lee Cooper apparel in India. What's more, the fashion line for the Indian market will be manufactured from a factory in Uttaranchal.

A strategic brand initiative by Walt Disney, the company that has lured children (and adults) with its cartoon characters is all set to make a difference in India's denim fashion for kids. Small wonder then that Harpartap Singh, director, Indus Clothing Ltd, is extremely confident of reaping profits within two years of starting operation.

"Our focus is very clear, our consumers will be in the age bracket of 4-14 years," he says, adding, "Our brand building is done keeping in mind this target audience."

The apparel brand will not limit itself to designs that flaunt Disney cartoon characters. "We want to create a lifestyle symbol for youngsters," says Singh. He adds, "The fabric and cuts along with couture will be prescribed by Disney, while we (ICL) will manufacture and distribute the products in India."

Though Disney accessories have been in India for some time, they haven't been aggressively marketed. Which is why Singh feels that opening an exclusive, one-shop stop for all Disney products and accessories will help in identifying the brand.

While Singh's company that has been in the business of apparel licensing since 1994, will invest Rs 21 crore in the new venture, it'll also look forward to managing a few retail stores.

To raise money, for starters the company will probably collaborate with a partner or apply for bank loans. Though ICL is open to franchisees, it first wants to establish the brand in India.

To begin with, ICL is planning to launch 20 Disney stores in 2006-07 across all major cities. By mid-2008, Singh is confident of opening nearly 50 Disney stores across India.

Besides setting up a greenfield facility in Uttaranchal that would be operational by early next year, Singh will also outsource some of the production, "If there is somebody who can produce quality jackets, pullovers or sweaters as per Disney specifications, then we will definitely look at outsourcing," he says, explaining that the company will tap factories in Delhi, Ludhiana and Bangalore in a bid to manufacture the apparel line for Disney.

Singh is confident that the new venture with Disney will contribute nearly 25 per cent to ICL's revenues and help the company post a turnover of Rs 120 crore by 2007.

That's provided brand conscious kids will give Disney Jeans a green signal.