Retail chain Shoppers Stop is now focusing more on international labels than ever before and soon it will bring Europe's first denim brand Mustang and Playboy apparels here in India.
After exclusively bringing brands like MAC, Austin Reed and Mothercare, Shoppers Stop has now signed an exclusive partnership with Europe's first denim brand Mustang and many foreign labels will follow soon.
“We want to hedge the risk of the slowdown and there are many brands that are waiting to go down under. So, we thought we should have more international brands,” said Govind Shrikhande, chief executive officer of Shoppers Stop.
But it is not just about sales. Exclusive brands contribute just 3 per cent to Shoppers Stop’ total sales but the margin contribution is as much as 8 per cent, so by exclusively tying up with over half a dozen more international brands, they hope the margins to grow to 20 per cent in the next two years.
With the company shelving its plans to raise Rs 300 crore, this extra cash will come handy especially when they are planning buy stake in Hypercity – a hypermarket next April.
“Basically we are working on the Hypercity acquisition from 19 per cent to 51 per cent , so we will work something out,” said Shrikhande.
But with several other retailers bringing foreign labels, will shoppers Stop end up being a “me too” player. Not really and if it happens it will re-position itself once again.
No wonder the company is planning to do a brand valuation to gauge whether shoppers really stop at their place or not.