Interview with Brand Concepts
We believe this is the best time to be in this segment in India today and Brand Concepts is well-placed to capitalise on this change, believes Abhinav Kumar, CEO, Brand Concepts Ltd.
What is your view about the Indian fashion and lifestyle accessories sector for the coming years?
The fashion and lifestyle accessories sector in India is going through a phenomenal change. Consumers are breaking off the power of fashion and the power of accessories. The accessories non-apparel or accessories contribution to every brand which used to be around 4-5% of their total sales is now reaching 20-25%.
Hence, it is a very good time for fashion and lifestyle accessories in India to cater to the growing demand and fast-changing consumption patterns in India.
We believe this is the best time to be in this segment in India today and Brand Concepts is well-placed to capitalise on this change.
In Q3FY23, Brand Concept's net sales registered a 69.7 per cent YoY growth to Rs 45.36 crore, while the net profitability shot up by more than 98 per cent YoY to Rs 2.89 crore. What were the factors which led to such healthy growth?
There are multiple factors that have led to this kind of healthy growth:
Ø There is an overall increase in the category business, as the travel industry is witnessing one of the highest growth rates today. During the year there was a major positive uptick in the overall industry structure. With this increase, consumers are also aspiring for more fashionable products & brands. This trend has benefited us, as we endeavour to bring fashion into our focus category through a portfolio of brands.
Ø For a company like us, in terms of our footprint, we are still quite young. We have several opportunities to grow by way of increasing our reach & footprint into various markets. Hence the main focus of the company during the year is to increase the number of stores, increase the number of distributors & dealers, and reach areas which are still untouched and has a great market scope to serve the consumer’s sentiments. Overall, to date the company has shown a significant increase in turnover and overall growth as a whole.
While we spotted the positive trend early on, the supply chain was one of the biggest concerns in light of the disruption in China manufacturing. Hence this year Sourcing played a very vital role and supported a lot in this achievement. The situation with China poses a threat to the cost structure for adequate supplies. The company, in order to reduce the cost of imports and to have better sourcing, is working on shifting its supply chain dependency away from International Markets to the domestic market for its products, and in the near future will work on creating a model towards its own manufacturing.
The culmination of all of this is the growth that you see in both external and internal factors.
Can you shed some light on your recent tie-up with the world’s second-largest brand owner, Authentic Brand group?
We are very excited to have a tie-up with the Authentic Brand Group. They are the world’s top fashion and lifestyle brand, and partnering with them speaks about how brand concepts have shaken up an ideal partner for international brands looking to enter India in the fashion and lifestyle accessories space.
This is just the start of our relationship with one brand but opens up a world of possibilities for onboarding several more international brands into India thereby offering consumers a bouquet of global brands in our core areas of Travel and Small Leather Goods.
What is your earnings outlook for the coming quarters?
We are looking to maintain a healthy 25-30% revenue CAGR over the next 3-5 years.
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