 "We are not here to drive only top line: Andy S Lew")
What are your plans for India?
We want to continue growing successfully. We are planning to open two Red Fleece stores in the current financial year, in Mumbai and Pune. The store sizes will range from 1,000 to 1,200 square feet and we want to focus on the existing stores to make them more productive and build relationships with the current set of clients.
What are the biggest challenges you faced in scaling up the business?
Availability of right shopping centres and malls. We believe that the brand is scalable as we have received good reception in the Indian market. Secondly, there are many technical import regulations and thirdly, retaining people is a challenge given the growth in retail and other industries.
What has been your pricing strategy?
We are in a range that is 15-18 per cent higher than US prices. This is a very good pricing delta compared to other brands.
Have you seen a slowdown in consumer offtake?
No. Our stores are either growing in double digits or mid to high single digits.
What is your strategy?
For India, we have a long term strategy, coupled with a patient approach. We have partnered with Reliance Brands for long term success and not just to chase rapid expansion. We are not here to drive only top line sales, but also to achieve a successful long term profitable business.
You are also present in China. What are the key differences in the markets?
We have been in China for 11 years and in India for three. Brand awareness is high in China, where we have 70 points of sale. But both have a young population which is a positive factor. Spending power is slightly greater in China. Also, Chinese identify with luxury products and spend more money on them.
What has been the response for your 'Made to Measure' service?
It has been well received here. We have seen 30 per cent growth season on season. It constitutes about 15 per cent of our total business.
What is the difference between Brooks Brothers and Red Fleece brands?
Red fleece is a gateway for new customers at Brooks Brothers. It meets the evolving needs of our customers. It is playful and spirited with trimmer lines and fit. In terms of pricing, it is 20 to 25 per cent lower than Brooks Brothers, making it more accessible to a broader demographic.
Is low pricing a major factor?
No, pricing is only a component of the strategy. We feel the fit, design and overall aesthetic is very appropriate for an Indian consumer. It is a brand for the young at heart. Also we have seen a trend of (promoting) relaxed dress codes amongst Indian corporates and a move towards smart casuals.
The timing for the launch of Red Fleece is perfect.