Louis Philippe focusing on Footwear
“Response to Louis Philippe exclusive footwear outlet in Pune has been tremendous as a result of which we are now looking at opening up to 30 exclusive footwear stores, catering to all target audience, over the next three years. The expansion of footwear business will help us take up the share of accessories to 10 per cent of our total turnover from next year onwards,” Jacob John, brand head – Louis Philippe told Financial Chronicle.
According to John, this along with the addition of 30-40 apparel stores in 2012-13 will require an investment of Rs 20 crore in the coming financial year. The new apparel as well as footwear stores will be a mix of company-owned showroom as well as franchisee outlets.
The company forayed into footwear business on trial basis in 2010. It is now catering to the demand from all target audience of Louis Philippe and its sub-brands LP and Luxure. Louis Philippe is currently offering footwear in 40 designs ranging from Rs 3,000 for its sub-brand LP to up to Rs 9,000 under its Luxury sub brand.
While the designs are created in-house, Louis Philippe has combined global sourcing across Italy and Turkey with a manufacturing tie-up in Bangalore.
The company, which competes with brands like Wills and Zodiac, is eyeing 20 per cent increase in revenue at Rs 1,100 crore in 2012-13 as the demand has demand continues to be low following the slowdown in economy.
“The demand in first six months was 50 per cent higher than same period last year but the eventual slowdown in economy and higher raw material prices resulted in drop in consumption of super premium lifestyle products as a result of which the average growth this year would be 30 per cent which means we will have a turnover of Rs 900 crore in 2011-12,” he added.
The core brand Louis Philippe is expected to contribute over 60 per cent to the company’s turnover at Rs 570 crore in 2011-12 followed by 33 per cent from LP sub-brand at an estimated Rs 300 crore while the high-end Luxure sub-brand is expected to fetch Rs 25 crore this year.