Worldwide, denim brands have been following various formats for retailing apparels. Kewal Kiran has been following multi-thronged approach using four major retailing channels like wholesale distribution through established dealers, large format stores, E-commerce and own and franchisee retail stores.
The company’s leading brand is Killer and other brands include LawmanPg3, Integriti, and easies have grown in size in the last three decades of the company’s existence. Addictions, the accessories wing of KKCL, makes lifestyle products from head to toe, such as deodorants, watches, wallets, belts and inner wear. This segment of the business has attracted a large audience in terms of its varied stylish offerings.
The company currently works with 125+ leading distributors across India covering 25 States and 209 cities spread across India. Currently, the company has 318 K-Lounge or Exclusive Brand Retail Stores spread across India, which would become 336 stores in short span of time.
As the demand is increasing and the investment for the dealership is going to increase, so keeping in this in mind, the company would like to add one more distributor in larger States to make it reach 200.
The major growth drivers of the business would be from fast-growing organized retail and fashion brands. The fashion industry in India is at a major inflection point and is expected to exponentially grow as India’s per capita GDP crosses the $2,000 mark. This is enabled by rising disposable incomes, a democratization of technology, improved brand penetration, and an aspirational target audience.
The Tier-II and Tier-III cities welcoming significant brand penetration and traction. The rising number of young population and affluence of the middle-class is believed to be a core driver of this transformative shift towards branded fashion revenues.
As a market, India is predominantly value-seeking. This requires unique business models like that of KKCL’s to cater to the population while sustaining profits.
The impact of GST will be seen in the years’ to come as this will be another biggest enabler in increasing organized sector and KKCL would be the biggest beneficiaries of this.
The Company has a wide range of products that encompasses bottom wear including jeans, trousers, capris, shorts; top wear including shirts, t-shirts, jackets, pullovers, and range of accessories to complement the wardrobe.
Multi Brand Outlets (MBOs) contributes 51% to the sales, own retail outlets under K-Lounges and Exclusive Brand Outlets contributes another 21% of revenues. National Chain stores like Shoppers Stop, Lifestyle and E-commerce together contributes16% to revenues. 5% of sales come from overseas markets.