Innerwear major Jockey is firming up plans to showcase itself as a lifestyle brand. To that effect, it is ramping up its non-innerwear portfolio by foraying into sports/leisure wear and active wear.
To service the extension, Jockey's India licencee Page Apparel and its associate concerns, part of the GTVL group, are expanding capacity to 2.5 million pieces a month from 2 million pieces now.
"Our extension will primarily be in products whose characteristics are almost similar to inner wear. The idea now is to launch multi-purpose clothing that will double as sports and leisure wear."
Page Apparel managing director Ashok Genomal said, "The product diversification will be more of a value-added range. We target to increase our non-innerwear range's revenue contribution to over 20 per cent immediately from under 15 per cent now."
He added, the new range will feature under the premium and super premium category ensuring the brand image of Jockey remains intact.
The GTVL group also holds the Jockey licence for Philippines and Sri Lanka. Besides its Indian operations cater to the US and Europe requirements of Jockey and other apparel biggies like Tommy Hilfiger.
Also in a bid to change the innerwear perception that the brand currently enjoys in India, the company is rolling out exclusive retail stores. Genomal added that the pilot test store in Bangalore had met targets.
And leaning on this, the company will enter 12 locations including the metros and several B+ towns starting next calendar year through the franchisee route. Studies have shown that exclusive retail stores are also brand builders. While the Jockey label needs no introduction now, exclusive stores will recast the 'purely underwear' perception, he added.
While he refrained from spelling out the capex for the proposed expansion, industry insiders said a capacity addition of 500,000 units a month will cost about Rs 50 million.
Besides, investment will also be required to set up the stores that will sport the Jockey international signature styling, they added. Genomal said all investments will be primarily funded by internal accruals.
Further, based on the success of the new ranges the company plans to bring to India other Jockey products like lounge and night wear.
Another segment, the company is betting big on is the Jockey For Her (JFH), which is a token business now. The company is increasing its focus on this segment and projects exponential growth.
Jockey claims to enjoy a 25 to 28 per cent market share in premium and super premium men's innerwear market in India. The two mentioned categories priced between Rs 75 and Rs 200 plus account for over Rs 500 crore (Rs 5 billion) and are growing at 10 to 12 per cent.
The total men's innerwear market in the country is valued at Rs 2,250 crore (Rs 22.50 billion) and growing at around 8 per cent.
