-By Ankita Dutta.
Highstreet Essentials, the operator of women’s clothing brands Faballey and Indya, is set to open seven to eight new wedding stores this year as part of its premium label, Indya Luxe. These new stores will offer bridal wear with prices ranging from INR 2,500 to INR 25,000.
The company is looking to increase the contribution of Indya Luxe to its business from the current 7%-8% rate up to as much as 35%-40% in the next 12 months, according to CEO and founder Shivani Poddar, adding that they see their new bride collection as a perfect avenue for growth, targeting millions of women who are looking for affordable designer attire for weddings.
The new stores will be opened half by company-owned and half by franchise-owned locations in cities such as Bengaluru, Delhi, Hyderabad, and Chennai, among others. Poddar said that the Indian market has an estimated USD 3-4 billion in ethnic and occasion wear, and with this latest expansion, Indya is positioning itself more prominently in this highly competitive market.
Indya Luxe caters to the premium market segment with a focus on special occasion wear launched in 2020. Indya accounts for 60% of the business with a gross revenue of INR 250 crore in the fiscal year 2019-20. Nevertheless, the company was not profitable last year; yet, Poddar has said that it will be around 5% positive at EBITDA with gross sales growth of about 30-40% this year, and even as early as April 2021, the business was already at the EBITDA positive mark.
Half of the company’s business comes from online stores, which include many loyal customers, and Highstreet Essentials aims to double international sales over the next 12 months. It plans to open 10 new stores in existing international markets, including the UAE, UK, Malaysia, and Nepal.
The company has already begun expanding internationally, having started by opening four stores, with another six in the pipeline. With its exclusive partnership model, Highstreet Essentials aims to establish a foot-pedal in these markets. The company has 26 exclusive stores, of which 22 are company owned. Presently, it has more than 500 points of sales, with plans to expand to 750 points of sale by March 2024.
The company produces 1.5 lakh pieces every month through contract manufacturing, with a network of more than 1,500 tailors based in the National Capital Region (NCR). As Indya Luxe increases in demand since the launch, the company is expanding its manufacturing capacity. Initially, Highstreet had set up an in-house unit, which has around 30-40 tailors to manufacture 500-800 pieces every month. To cater to the increased demand, it also plans to adhere to more contract manufacturing.
Since its inauguration in 2012, Highstreet Essentials has raised roughly $25m, including both debt and revenue. It is now furthermore looking to raise funds this year, but the exact amount is yet to be disclosed. The company has been able to sustain annual funding of $4m-$5m over the past three years. The new funds, when secured, will be utilised in expanding their Luxe segment, international expansion, and online business.
