Diving for profits

Fresh marketing strategies heat up the swimwear market this summer

Bikinis and tankinis are out. In India, women still ask for the frock swim-suits while men prefer trunks over skimpy briefs.

To cater to the majority of customers who prefer conservative swimwear, Planet Sports Pvt Ltd, the exclusive distributor for the Speedo brand in India, is launching a new line especially designed to meet their "cultural requirements".

Set to hit the 18 Planet Sports retail stores by end of this month, this is the first country-specific range to come out of the Speedo stable, a brand owned by the UK-based Pentland. Pentland owns labels like Lacoste shoes and Ellese.

Says Amit Singh, Speedo's brand manager at Planet Sports: "Speedo has designed a few styles for the Arab countries in the past, but it's the first time an entirely new range is being manufactured for a market." Planet Sports, with marketing rights for Marks & Spencer and sports brands like Puma, Converse and Spalding, will introduce the new range comprising 40 different styles for men, women and children.

Reebok International, which currently imports its chlorine and seawater-resistant swimwear (prices: Rs 1,800-2,200) is also contemplating manufacturing "one-piece" swimwear for India. Company sources say the idea is also to bring the prices down. Reebok India's CEO Himanshu Bhardwaj could not be contacted for comments.

The reason why multinational brands are taking an interest in the fledgling Indian swimwear market is because the Rs 25 crore category is growing at about 20 per cent a year. "With the real estate market booming and more and more housing complexes including pool facilities, the swimwear industry is picking up," says Karan Dhar, brand manager of Sunrise Sports (India) Pvt Ltd.

Sunrise is the Indian subsidiary of Singapore's sports equipment distribution company Sunrise & Company (pte) Ltd. Two years ago, it launched its swimwear brand Dal in the Indian market. "Dal is not a top-end brand like Speedo but we score in terms of price," he says. Dal range is priced between Rs 490 and Rs 990 and primarily sold through sports shops across the country.

With an eye on the burgeoning market, Chinese swimwear too has entered the country in the last two months. Cheap Chinese imports will now fight for shelf space with the Thai, European, Indian brands. "The Chinese products have hit the mini metros and are 30 per cent cheaper than the Thai brands. They are bound to be hot sellers," says Hemant Gupta, director of the Delhi-based retail store Kunchal's. Gupta is currently test-marketing the Chinese products and claims to sell 800 units during the peak season.

Indian brands like Enkay and Champ, however, are not unduly worried about competition. "While the Thai imports do not suit the Indian sizes, the European brands are too expensive," says KG Enterprises' CEO Nand Kumar Badlani. Enkay manufacturers three lakh swim-suits a year.

Partners in Pune-based Champ Sportswear, Vivek Madan and Narendra Parkhi, are notconcerned either. "The Indian market is price sensitive and culture specific. Women still prefer to wear frock swim suits and cycling shorts. We understand the Indian market," says Parkhi. Currently, Champ Sportwear makes about 35,000 units for women's' swimwear and 60,000-70,000 units for men per season. Priced between Rs 170 and Rs 300, these are sold in 700 retail outlets across the country.

The summer of 2004 promises to be exciting for the swimwear segment as the brands in the category are chalking out marketing strategy. While Enkay is advertising in magazines like Cosmopolitan, Planet Sports will launch Speedo FastSkin II, a highly technical gear that mimics a shark's skin and will be endorsed by swimming stars at the Athens Olympics in September this year. The company admits that it'll be the "image-driver" for the brand.

But to increase sales volume, Planet Sports is hooking up with the Swimming Federation of India, sports counters in shops and retailing its goods from multibrand stores to cash in on the school-going segment as well.

Besides, it has also tied up with Rediff.com to sell special kits (Rs 849) comprising a swimsuit, a latex cap and a pair of goggles. Both Planet Sports and Enkay executives agree that the category could grow with the help of a celebrity brand ambassador.

With the long summer season ahead, the swimwear companies have many laps to do before the market can declare the winner.