The premium sportswear market now has one more player – Italian lifestyle brand Fila. This would be the $1.5-billion brand’s second innings in India as it had earlier entered into a licensing agreement with Cravatex eight years ago.
The entry was muted last time, but Fila India CEO says India offers enough room for new players as branded apparels account for a fifth of the Rs 35,000 crore readymade garment industry in the country. More importantly, the branded apparel segment is growing at 18 per cent every year.
Industry observers estimate the sportswear market alone at Rs 2,500 crore, which is growing at 15-20 per cent.
That gives Fila the confidence of marking its presence in a market which already has established names like Nike, Adidas and Reebok and Puma.
Fila has just launched men’s sweatshirts, tracksuits, jackets, polos, track-pants and t-shirts. “Women’s sportswear line will follow by the year end,” says Bajaj, who has so far been busy in trying to strengthen the footwear brand of Fila in India. The company has 100 shop-in-shops that sell only the Fila footwear range.
Fila plans to launch its apparel line in close to 800 retail outlets which includes shop-in-shops and multi-branded outlets. “We also plan to open four exclusive showrooms, starting with one in Mumbai this month,” says Bajaj.
In another three years, the store count is expected to be increased to 60-70, mostly in metros and Tier I cities. The stores will be a mix of high streets and malls with an average size of 1,500 square feet. Most of the stores are going to be franchised.
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The Fila merchandise will retail between Rs 1,800 and Rs 3,500 – almost the space in which its main competitors operate.
While men, women’s and sports branded apparel did face pressure due to the slowdown last year, most players insist that demand is back across stores. As per a Technopak study, menswear segment has a majority 43 per cent share in the apparel market and is growing at 9 per cent, while women's wear is growing faster at 12 per cent, though the current share is 37 per cent.
Though a late entrant, Fila is counting on the fact that it is a known brand in India because of its association with international celebrities and various international sporting events. It has also been endorsed by sport stars like Bjorn Borg and Kim Clijsters. The famous F-box logo is another draw.
Fila will have to hurry up as its competitors have been quick to cash in on the emerging opportunity in trendy sportswear for women. Reebok has roped in designer Manish Arora to create a footwear range titled Fish Fry, while Puma has tied up with designer Aki Narula on similar lines.
Rajiv Mehta, CEO of Puma India, says “Our mid- to premium-priced collections target today’s trendsetting woman who is looking for fashion with an edge.” Four years back, Puma set shop in India as a sports lifestyle company and retails sportswear and footwear in 80 stores and is scouting for opportunities to further expand its reach into tier II and III cities apart from metros.
Reliance Trends, part of Reliance Retail, too launched its new sportswear brand, Performax. Performax will also offer accessories such as caps, ergonomic socks, wristbands, headbands and gym sling bags with prices starting at Rs 249.