Indian Terrain, an upscale casual men’s ready-to-wear brand, took the Indian fashion scene by storm when it was first launched in 2000 in Chennai. Thirteen years on, and it continues to guide the sartorial choices of discerning, style-savvy men. The brand has already captured nearly 7 percent share of premium casual apparel market in India. Today, it is distributed across the country in multi-brand outlets, large- format-stores, and exclusive stores. Now, ready to move up to even higher ground, the company is looking for expansion mainly via the franchise route.
Indian Terrain Fashions was incorporated in 2009 as a subsidiary of Chennai-based Celebrity Fashions, one of India’s prominent garment manufacturers and exporters. It launched Indian Terrain, an upscale men’s apparel brand in December 2000. Primarily targeted at discerning, style-savvy men aged between 24 and 45, the brand became an instant hit. Describing the brand, Charath Narsimhan, CEO of Indian Terrain, says: “We are a premium casual menswear brand, which believes that simplicity is luxury. We are makers of authentic quality sportswear that is stylish yet comfortable, easy to mix and match and can be worn both to work and outdoors.” Indian Terrain began its retail journey in 2006.
After capturing the southern market, Indian Terrain wanted to spread out to other regions. Riding high on success wave, it got listed on Bombay Stock Exchange and National Stock Exchange in 2011, following a demerger from the parent company. The move was to give impetus to its aggressive domestic growth. The brand commands nearly 7 percent share of premium casualwear market in India. Presently, it is retailed across the country in 700 MBOs, 175 large-format-stores such as Shoppers Stop, Central, Lifestyle and Pantaloons etc., and 105 EBOs.
Making the most of mix-and-match fashion trends, Indian Terrain serves both mid-premium and luxury buyers through its assorted range. Its clothing and lifestyle product line bears lively attitude befitting smart-casual look. The brand’s core strength lies in the area of casual sportswear and wash technologies. Almost 80 percent of the products are manufactured in-house where high-tech production procedures ensure finest quality.
The average size of an Indian Terrain store ranges from 600 to 900 sq.ft., whereas a flagship covers an area between 1,500 and 2000 sq.ft. Their investment cost (CAPEX) is to the tune of Rs 2,800 per sq.ft. Outlining the business aspects, Narsimhan says: “On an average, ROI would be around 20 percent for the first year. Depending on operational costs of the store, the retailer’s margin varies from 14 to 35 percent. Also, breakeven can be expected within 2 to 4 years of commencement of operations.”
Indian Terrain boasts of complete wardrobe solutions for men including shirts, trousers, T-shirts, shorts, knits and jackets, denim, etc. The shirts are priced from Rs 1,599 to Rs 2,299 while trousers range from Rs 1,599 to Rs 2,699. The sweet spot in shirts and trousers is Rs 1,699 and Rs 1,799, respectively. T-shirts range starts from Rs 799 and goes up to Rs 1,299. The knitwear is available at a price band of Rs 1,499 to Rs 2,399. Jackets are available from Rs 2,799 to Rs 7,999. Its sleeveless Nehru jackets with chic cuts are quite popular. Their denim line is available for Rs 1,999 to Rs 2,499. Every year, the company brings out two collections – Spring Summer and Autumn Winter.
Indian Terrain is now relying mainly on franchise business model in the current phase of growth. Confirming this Narsimhan shares: “We are already present in some Tier II and III markets and would like to concentrate on smaller cities, as they have great growth potential. We are essentially looking for franchisee stores only and plan to roll out almost 20 outlets in the coming year.”
About the Author:
Namita Bhagat has extensive business writing and editing experience related to the retail and franchise industry, covering Indian and Middle East markets.