Apparel and fabric manufacturer Raymond is set to realise 45-50 per cent revenues from the economy segment of in the next 3-5 years, said Aniruddha Deshmukh, president, textiles, Raymond.
“While the premium and the economy segments will grow at about 15 per cent each, the large market base of the economy segment ensures that it will soon occupy a bigger pie of our revenues,” Deshmukh said.
Currently, 20 per cent of Raymond’s and 80 per cent of Makers’ revenues come from the economy segment. However, Makers is an economy segment focused brand, whose contribution to the overall Raymond brand is minuscule.
“We are targeting at least 15 per cent of this branded market in the next 3-5 years, from our current 4 per cent market share,” said Ram Bhatnagar, Vice President – Emerging Businesses, Raymond.
The growth in the economy segment comes at a time when there is a migratory trend towards branded fabrics and apparel in smaller towns. Currently of the overall suiting fabric market, pegged at 740 million metres, only 120 metres is branded.
In order to cash in on the trend, Raymond will roll out Makers across India by the end of the fiscal. Currently Makers in sold in nine states. Also, this will mean increasing partnering multi brand retail outlets for Makers from the current 11,000 to 60,000.
Most of the expansion will be focused on tier three four and five cities, where the migration from unbranded to branded suiting fabric is taking place, according to Bhatnagar.
Also in order to develop the fabric ecosystem, Raymond will train 25,000 tailors over the next 5 years through academies to be set up in smaller towns.
