Benetton to foray into lingerie segment  ( June '14,2007, BS)

In a move to enter the women consumer’s mind, Italian apparel brand Benetton will extend its Indian presence by entering the lingerie segment. Apart from retail expansion, the company also perceives India to be a strategic sourcing market.

Following the launch of fashion brand Sisley, Benetton will launch its lingerie brand Under Colours in India.

Sanjeev Mohanty, managing director, Benetton India told Business Standard, “The Indian woman has become discerning, thus demanding products to enhance her inner beauty. The market estimates indicate that the premium lingerie segment, pegged at Rs 200-250 crore, will do well in the urban areas.”

The Under Colours range will comprise innerwear, nightwear and swimwear for women. Later, Benetton intends to expand the brand in menswear by introducing boxer shorts and swimwear.

The branded lingerie segment is estimated to be about Rs 1,700 crore and has recently seen the entry of new players. The french lingerie brand, Etam entered India through a joint venture with Pantaloons Retail, while the Italian brand La Perla is also set to make an Indian debut.

The Switzerland-based Triumph International is already present in the country since 2002.

Benetton also aims to extend its kidswear range in India. It intends to provide lifestyle products by tapping occasion wear segment such as formals, casuals and accessories.

“There is higher brand acceptance in kidswear segment, which is growing at 30 per cent. We plan to strengthen this offering as we do not see much competition in this category over the next four to five years,” said Mohanty.

The Italian apparel brand, which is present in India since the last 16 years, is also bullish about India as a sourcing destination in future.

Indicating that the company might increase its sourcing and other activities in India, Mohanty said, “Though India accounts for less than five per cent of the group’s global operations, the fact is that India is a critical market for the parent company. The company is approaching India with a medium and long term perspective.”

Benetton India, which mostly manufactures knits, sources about 50 per cent of its requirements locally.

The company plans to open 50 retail stores of United Colours of Benetton, Sisley and Under Colours this year.”

As one of the early entrants in India, Benetton has an early-movers advantage of cornering strategic retail spaces. The promotion focus will be visual merchandising and large format retail stores, said Mohanty.

In the adults category, menswear comprises about 55 per cent of the revenues while women’s segment contributes 45 per cent for Benetton.

Overall, menswear constitutes 36 per cent, womenswear 34 per cent followed by at 30 per cent.