How VIP Clothing is Transforming from its Distribution-Led Biz to Omnichannel Company

How VIP Clothing is Transforming from its Distribution-Led Biz to Omnichannel Company
The company, which touched Rs 175 crore in terms of sales in FY 19-20 and Rs 200 crore in FY 20-21, is looking forward to a 30 percent rise this year.

By Charu lamba , Deputy Editor

12 Jul 2022 | 6 min read

VIP Clothing Ltd., a leading Indian company engaged in manufacturing and marketing innerwear, markets well-known brands like VIP Innerwear, Frenchie, Frenchie X, and VIP Feelings. All the brands of the company and their extensions occupy leadership positions with significant market shares in the respective categories.

The company has a presence throughout the spectrum of the innerwear industry, with VIP innerwear in budget and economy segments straddling all demographic segments. Frenchie is the generic brand in the briefs market. Frenchie X is present in the premium segment for youth where most of the action is seen a lot of international brands are trying to enter. VIP Feelings focuses on women's lingerie segment and Brat on teenagers and kids. It also has a wholesale-focused brand, Leader.

Elaborating more on the journey of the brand, Kapil Pathare, Director, VIP Clothing said, “We were the first brand to actually advertise in the innerwear category for the first time on television channels. So innerwear being an unorganized segment, it was a very different module for the VIP to actually channelize the brand into an organized segment.”

“We come from a very traditional way of working and are known as the trusted Indian brand for decades. The company has a widespread distribution network spread all across India. We have more than 100 distributors pan-India. We started our journey with 50 touch points in 1971 and today we have a presence across 30,000 retail touchpoints," he added. 

Post–pandemic, the company decided to stay closer to its consumer by launching its own EBOs along with its franchise outlets. However, the distribution network continues to play a major role in the expansion of the company.

“We are betting big on distribution channels because we have a strong presence in rural India where the consumers are still exploring the online space. And to target the Millennials and Gen-Z, we are planning to expand our online presence and open our own EBOs and franchise-led outlets,” he stated.

Along with this, the company has a presence at all the major online marketplaces like Amazon, Myntra, and Ajio and its own web portal. At present, online channels are contributing 15-20 percent of its overall revenue.

Matching Changing Consumer Expectations

Consumer behavior and expectations are changing at a very fast pace. These days, the consumers are looking for an experience, and to match these changing expectations, the company has recently ventured into offering products like t-shirts, polo, t-shirts, round neck t-shirts, track pants, and boxer shorts for men under the brand VIP and women t-shirts and tracksuits under the brand Feelings.

“Our stores span across 300 sq. ft. area and to ensure ROI at each store, we launched outwear and the leisure wear as expanding to new categories will help us achieve per square foot returns,” he asserted.

Omnichannel: The Way Forward

In the next three years, the company plans to open 100 franchise outlets. It soon planning to foray into social commerce and start selling through Instagram.

“To offer an omnichannel experience to the consumers, we have a presence at the online marketplaces, our own website along with our outlets. We want to present wherever the consumer is looking for us,” he asserted.

“Predominantly, we will be opening our stores on the high streets because they have lesser rentals and CAM charges as compared to the malls and we want to ensure high ROI to all our franchise partners,” he added.

Future Plans

Going ahead, the company is planning to foray into the teens' range soon. 

“Along with this, we will be focusing more on the outerwear segment – leisure wear and loungewear – this year,” he stated.

The company, which touched Rs 175 crore in terms of sales in FY 19-20 and Rs 200 crore in FY 20-21, is looking forward to a 30 percent rise this year. It is planning to expand its presence through the franchise route and for the next 20 stores, it is planning to focus on Tier I cities and Aurangabad, Bengaluru, Hyderabad, Delhi, Lucknow, and Chandigarh to name a few.
 

VIP Clothing Ltd., a leading Indian company engaged in manufacturing and marketing innerwear, markets well-known brands like VIP Innerwear, Frenchie, Frenchie X, and VIP Feelings. All the brands of the company and their extensions occupy leadership positions with significant market shares in the respective categories.

The company has a presence throughout the spectrum of the innerwear industry, with VIP innerwear in budget and economy segments straddling all demographic segments. Frenchie is the generic brand in the briefs market. Frenchie X is present in the premium segment for youth where most of the action is seen a lot of international brands are trying to enter. VIP Feelings focuses on women's lingerie segment and Brat on teenagers and kids. It also has a wholesale-focused brand, Leader.

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