Pepe Jeans aims Rs 2,000 crore sales in the next 3 years, to add over 100 stores
As part of the strategy, Pepe Jeans is now focusing on the expansion of its network of brand stores and fast-growing e-commerce channels.
Denim brand Pepe Jeans London is aiming for sales of around Rs 2,000 crore from the Indian market and plans to expand its retail network by adding over 100 stores in the next three years, its India MD and CEO Manish Kapoor said. Pepe Jeans London, owned by Spanish global fashion group AWWG, is "very buoyant" for the Indian market, and aims to grow at 18-20 per cent compound annual growth rate (CAGR) in the next three to five years, Kapoor told PTI.
As part of the strategy, Pepe Jeans is now focusing on the expansion of its network of brand stores and fast-growing e-commerce channels. Pepe Jeans expects 55 per cent of its business to come directly by selling to consumers from its own sales channels. Over Pepe Jeans' expansion plans, Kapoor told PTI, "We will add 100 odd stores in the next three years and in terms of a turnover, we are looking at a CAGR growth of 18 to 20 per cent. So we should be almost around Rs 2,000 crore of consumer sales in three years." When asked about sales numbers, Kapoor said: "If I look at business in India, last year on a consumer sales revenue we did close to Rs 1,200 crore and book revenue of Rs 562 crore. We grew almost 55 per cent as compared to the previous year." But more importantly, Pepe Jeans grew almost 42 per cent, as compared to the pre-COVID numbers, he added.
According to Kapoor, in the last two to three years, Pepe Jeans has become a consumer-centric company and is focusing on trends and the digital side of the business. "We have a very clear focus in terms of direct-to-consumer sales. So whether it is through online or through stores, retail and e-commerce are going to be our biggest focus," he said.
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Kapoor said Pepe Jeans London is getting a "bigger proportion" of its growth coming from small tier II & III markets, amid rising disposable income, exposure to information related to trends for current brands helped by increasing internet penetration etc. "Today the aspirations of these consumers (tier II & III) are similar to a consumer of a metro city.
"These guys have similar sort of disposable incomes and are willing to buy. E-commerce as a platform has provided us an opportunity where we can reach out to consumers or even cities which are like one lakh sort of population. So, accessibility has also become easier," he added. Currently, the top eight cities contribute to around 58 per cent of the Pepe Jeans business and the rest 42 per cent comes from tier II and below markets.
In the premium denim space, Pepe Jeans London is the second leading brand in the segment. The premium denim space is led by US-based jeans manufacturing brand Levi's. Pepe Jeans London also owns brands such as Hackett and Façonnable. It is also the licensed distributor for Tommy Hilfiger and Calvin Klein in Spain and Portugal.
03:39 PM IST