America’s largest speciality retailer of children’s apparel and accessories, The Children’s Place (TCP), is staging an entry into the Indian market with the opening of its first 2,500 sq ft store in Bengaluru’s Orion Mall on August 15.
Brought to India by Arvind Lifestyle Brands Ltd, TCP is the country’s first head-to-toe fashion destination for children from 0-14 years, at price points beginning ₹399 and going up to ₹3,999.
Product categories
TCP offers the entire gamut from everyday casuals, party wear, innerwear, nightwear, outdoor wear, beachwear, winter wear to fashion accessories spanning sunglasses, fashion jewellery, footwear, ties, belts, scarves, hair accessories, purses and bags, for boys and girls.
“We have been in discussions with TCP since 2011, in order to understand the brand, product range, pricing, fits and sizing for the Indian market, before launching it. Typically, Indian shoppers cannot get branded fashion wear from apparel to accessories under one roof for kids. TCP has it all, at great pricing, which will be the biggest surprise for Indian shoppers,” Suresh J, Managing Director and CEO, Arvind Lifestyle Brands Ltd, told BusinessLine.
Arvind has created a lot of entry price points for the Indian market with tees at ₹399, tops from ₹499–899 and so on.
Stating that TCP represents a ₹500-crore revenue opportunity over the next five years, Suresh said a total of 10 stores with two each in Mumbai, Chennai, Hyderabad, Delhi and Bengaluru, will be opened by May 2016, at an investment of ₹2.5 crore per store.
Arvind will invest ₹100 crore to open 40-50 stores, spanning 2,000–2,500 sq ft, over the next five years.
Fashion market
The Indian fashion apparel market is pegged at ₹2,50,000 crore, of which children’s fashion apparel constitutes ₹50,000 crore. While 16 per cent of the overall fashion apparel market is organised, just 6 per cent of the kids market is organised, representing a huge addressable market opportunity for Arvind.
“We have a head start in the market and will focus on growing and expanding it by enticing people away from the unorganised market to the branded fashion apparel market with TCP merchandise, which represents high fashion at attractive price points,” said Suresh.
Revenue sharing
Arvind will buy all merchandise from TCP at cost price and pay them royalty every quarter, which constitutes a percentage of the total sales achieved for the quarter.
US Polo, Elle, GAP, Gant, Nautica, Tommy Hilfiger, Cherokee and Flying Machine are the other brands in the Arvind portfolio that offer children’s apparel.