questionnaire on marketing in branded clothing

Derby Clothing Pvt Ltd, Chennai

The company was established in the year 1994 as a small design studio in a 200 sq. Ft. Space in Chennai; today derby makes its presence through 33 exclusive stores & 238 multibrand outlets across the southern states.

Until 2008, the brand’s presence was confined to a single outlet in Chennai. Post 2008, the brand has spread its wings methodically not only in geographic spread but also in its product profile.

The brand’s journey to its present size is in fact a mirror image of its promoter’s vision of life- positive, never-say-die & full of life. Mr Vijay Kapoor, the 37 year old managing director of the company, started life in a very humble way as a salesman selling concepts. Today, his vision has turned a phenomenal success that “derby” is.

STORY OF THE COMPANY

In 1994, Vijay Kapoor wanted to launch a strikingly different menswear brand. He was looking for a stand-out name. He chose DERBY. Because the name sounded international. And it cued adventure, fun, competitiveness, a daring spirit and above all was very macho. The ground rules were very clear. Instead of being all things to everybody, DERBY decided to stay focused on men who seek the very best in whatever they do, whatever they buy. When DERBY entered the fashion market, the field was crowded. But there was no brand offering choice and class in the semi-format segment at an affordable price. DERBY plugged this gap. When it was fashionable for apparel brands to be available at multi-brand outlets, DERBY chose the Exclusive Store route. And consequently, the DERBY Flagship Stores were born. In multi-brand outlets, DERBY opted for a shop-within-a-shop strategy to maintain the air of exclusivity.

Derby does not just sell a commodity. It welcomes every new member into a community that stands for freedom & success. Derby Jeans Community is the only brand in the world that works on adding believers rather than just selling to customers. The brand believes in creating the best community around and this community will make a difference in every sphere of life. Freedom & success for everyone!

Chennai-based, fast fashion retailer - Derby Clothing, has major expansion plans on the anvil, which include unveiling stores in major fashion capitals across the globe. Plans also include opening flagship stores in Delhi, Mumbai and Pune. It is also open to the idea of opening stores even in smaller towns like Ranchi, Siliguri, Vijayawada, etc.

Derby is foraying into all major cities and smaller towns across the country. It is looking to increase the number of stores from the present 34 to 70 by the end of the year. The brand will be present in a number of premium malls and high streets in cities like Mumbai, Pune, Delhi, Chandigarh, Kolkata, Bangalore Durgapur, Bhopal, Jamshedpur, etc.

Derby offers varied ranges of denim jeans with fits like slim, slim straight and comfort and in shirts they provide fits like comfort, muscle and slim, mainly targeted at the youngsters. Alongside, Derby is also adding certain product ranges to the current collection to differentiate its offerings, considering that it is expanding in to various parts of the country. Its Autumn/Winter 2011 collection will compromise of a comprehensive collection of jackets, sweatshirts and waistcoats along with fashion denims, shirts, t-shirts, trousers and accessories.

Explaining the rational, behind opening stores in smaller towns and cities, Vijay Kapoor, MD - Derby Clothing said, “Small towns have increasingly developed a higher level of acceptance, for fashion apparel especially in the men’s wear segment. We have been pleasantly surprised by the response we have received in the towns that we currently operate in. This gives us an opportunity to tap other small towns across the country as part of our expansion process”.

Revealing their marketing and promotional strategies, he informed, “Marketing and promotional activities will be directly focused on the youth of the country. Being in a country that has the highest population of youngsters has proven to be an advantage to a youth-centric brand like Derby Jeans Community. On ground activities, rock shows, college cultural functions, fashion shows etc. are part of the marketing strategy that we follow to reach out to the fashionable youth”.

Explaining the rationale behind Derby products being branded as fast fashion, he said, “On an average most jeans wear brands in the country offer 20% fashion products and 80% basic or core products. Derby Jeans Community, on the contrary, offers 80% fashion apparel and only 20% basic or core products. This essentially makes Derby Jeans Community the only truly fashionable men’s Jeans wear brand in the country”.

Position of the Company

The company recorded a turnover Rs 6 crore in 2000 from its four outlets in Chennai. As part of its expansion plan, the company is planning to take up premium multi-brand concept apart from enhancing its network.

After the inauguration of the new outlet of Derby Fashion Wear in the city today, the company’s fifth outlet and first in the state, Vijay Kapoor, the managing director of Derby Clothing, said: “There is a room for value-plus brand and we are on the way to exploit the branded segment. Today’s consumer is fully aware of quality and our product range has been designed for the 22-35 age groups. We will open two more outlets in the city in the next two months. We are aiming at Rs 2 crore turnover in the first year of operation,” he said.

Giving details about the future plans, Kapoor said that the company would expand to Karnataka and Kerala next year and the national marketing would also be taken up in 2005. The company has two units at Tirupati and Bangalore with a total capacity of 1,400 garments per day. “The current requirement is at 1,500 garments per day and we are meeting the extra demand by outsourcing,” Kapoor said.

The other name for style and sophistication, Derby Clothing is a premium casual and formal wear brand for men renowned for its trendsetting ready to wear collection. Paradise for the ultimate and die hard shopaholics, it offers a wide spectrum of casuals and formal wears made from avant garde fabrics, available in a diverse range of styles and patterns. Largely catering to the city's ever so choosy fashion savvy junta, this Derby Clothing store is housed within the premises of Spencer Plaza in Anna Salai. This 10 years old store, besides its impressive and exclusive line up of clothing has an eye catching array of funky accessories that include belts and ties which you can club with your attire. You can indulge into its staggering collection of apparels and accessories on any day of the week from 9:45 AM to 9 PM. Derby Clothing also accepts all major credit cards.

PRODUCTS

The company manufacturing and exporting;
Readymade garments,
Mens wear,
Womens wear,
Kids wear,
Shorts,
Skirts,
T-shirts,
Shirts,
Pants & Trousers

Price range of the products

DENIMS Rs. 1,299 - 4,499
SHIRTS Rs. 999 - 2,899,
T SHIRTS Rs. 499 - 1,499
TROUSERS Rs. 1,199 - 2,999
BELTS Rs. 699 - 1,999
BAGS Rs. 999 - 4,999
OTHER MEN'S ACCESSORIES Rs. 499 - 4,999

Retail presence: Exclusive brand outlets across the south India

Multi brand Outlets

Tamil nadu
Kerala
Andhra Pradesh
Very soon in all the major cities in the North India

Past Performance

The company is on its fast track of growth and the past performance details are given below:

(Amount in lakhs)
Details/ Year
2005
2006
2007
2008
2009
2010
Sales
3566.23
4436.56
5621.56
5589.79
6420.36
6840.42
Profit before tax
5.86
39.24
302.93
148.72
312.30
3503.21
Share Capital
230.00
370.00
400.00
400.00
475.00
475.00
Reserves & surplus
567.11
574.64
720.19
767.48
759.58
866.70
Net Worth
797.11
944.64
1120.19
1167.48
1389.43
1341.71