Tie Rack, the UK-based retail chain for men and women’s apparel and accessories, has major expansion plans on the cards in India. It plans to open about 150 selling points across the country by 2012. Currently, the brand has nine exclusive brand outlets (EBOs) and five multi brand outlets (MBOs).
“The 150 doors would be a combination of shop-in-shops and standalones with an investment of Rs 20-30 lakh in each standalone and Rs 10 lakh for a multi-brand outlet,” said Jacopo Fratini, Chairman, The Rack Retail Group, UK.
Tie Rack merchandise includes premium shirts and accessories like ties, cufflinks, portfolio bags, belts, wallets, watches, and eyewear. Established in 1981, Tie Rack has expanded rapidly and now offers its products in over 250 stores located in 27 countries. Moreover, the average size of their store has been upped from 250 sq. ft. in Europe to 500 sq. ft. in India. In large format stores, Tie Rack will be present through the shop-in-shop format.
The brand is present in all the key regions of Delhi, Mumbai, Chennai, Bangalore, Kolkata and Pune. The target audience varies from young executives who are constantly on the lookout for trendy products and well-travelled corporate honchos. Tie Rack entered India through a tie up with Genesis Colors, the Indian fashion conglomerate and holding company for major fashion retail brands and marketer of international luxury labels.
For Tie Rack, India is a potential large market. There is no dearth of purchasing power in the country, Fratini said. “It’s a brand known to Indians and we are very bullish on the market.”
“The response has been excellent so far as pricing, styling quotient and the product categories are concerned”, said Jyoti Narula, MD, Genesis Colors. “The bestsellers have been ties and cufflinks so far. In terms of sales per sq. ft., we have done about 20 per cent above the industry average and expect a turnover of Rs. 20-25 crore this year. Corporate gifting is a big revenue stream for the brand. We have currently many big insurance and multinational companies as corporate clients”.
The main challenge currently for Tie Rack is finding the right kind of location and at the right price.