Cambridge plans image makeover

Changing consumer preferences and increasing organised retailing have prompted popular menswear brand Cambridge to rethink its strategy in the competitive branded menswear segment.

The brand will be entering new markets, diversifying into womenswear and will raise funds through equity this financial year-end.

Prashant Bhatia, Director, Cambridge Apparels, said, "There was a need to tap the young customer base, between 28 years and 35 years, which was shying away from the brand. We decided to offer contemporary merchandise and tweak the shopping experience to draw new clientele."

The brand will be repositioned as a mid-segment formal brand for young executives. "The market witnessed entry of big muscle brands," said Bhatia.

Cambridge intends to consolidate its position in the volume-driven mid-segment by offering new merchandise.

For instance, it has introduced formal wear shirts with complimentary matching cufflinks at Rs 395 onwards.

The Rs 2,000 crore mid-segment market is dominated by other brands such as Peter England, John Players, Excalibur and Raymond?s new brand Notting Hill.

As part of its retail expansion, Cambridge is banking on standalone stores in the metros while opting for a franchisee route to penetrate in tier I and tier II cities.

The brand has also chalked out a retail model of about 50 shop-in-shop outlets. Bhatia said that this would be a viable expansion option to achieve brand visibility and fetch volumes in new markets.

"Cambridge intends cash on the vacuum between private labels and brands in the large format stores," he said.

With a strong presence in the western region, Cambridge intends to expand its retail presence. "We would be foraying into new markets such as Delhi and the NCR region, Andhra Pradesh and stepping up presence in Tamil Nadu and Kerala," said Bhatia. It aims to open 10 outlets in Mumbai to up the retail network to 45.

The Rs 42 crore brand is targeting Rs 85 crore turnover in fiscal 2007-08. Maharashtra and Gujarat constitute about 50 per cent of the brand?s turnover followed by Kerala, Tamil Nadu and the West Asia.

"We are investing Rs 25-30 crore for retail expansion, which is funded through internal accruals and debt." said Bhatia.

Cambridge has entered the Sri Lankan market. The brand is eyeing the Asia- Pacific and UK markets to widen its international operations, which currently account for about Rs 7 crore of the total turnover.