Marks & Spencer sheds unaffordable image
The apparel and toiletries retailer has slashed prices of apparels by 35% to shed its unaffordable image in India. Sales of menswear and womenswear account for 85% of M&S’ Rs 10-crore sales in the country.
By TNN |
NEW DELHI: Marks & Spencer (M&S), Britain’s most well-known brand in India, has finally woken up to Indian realities. The apparel and toiletries retailer has slashed prices of apparels by 35% to shed its unaffordable image in India. Sales of menswear and womenswear account for 85% of M&S’ Rs 10-crore sales in the country.
The British brand, which entered India in 2001, is still trying to find its feet in the country. When it first set up shop in the country, foreign brands were few in number and M&S could afford to mark up margins and target a particular segment of the consuming class. But now, as luxury and premium brands set up shops in droves and Indian consumers become more aware, M&S ‘UK plus prices’ may not cut much ice with them.
At the same time, the British retailer has the mandate from its parent to turn aggressive and corner some market share. Real estate costs are too high and productivity per sq ft has to be maximised. So, the company believes the time is right to pick up the pace of growth in the international markets.
The starting price of a men’s shirt is being slashed to Rs 750 from Rs 900. The price of men’s formal jacket has been slashed from Rs 6,950 to Rs 4,745 while a seven pair pack knickers would now cost Rs 495 instead of Rs 750.
“Our strategy is to focus on markets where there’s a strong demand for our products from a growing middle class,’’ the company says in its annul report of 2007. There are already 12 stores in India and there are plans to move to larger and more profitable stores.
Talking about the company’s plans, Sameer Prasad, COO, Planet Retail, said with the expansion in the network of M&S stores (15 by the end of 2007), the brand will appeal to a wider customer base and this price change will help them experience M&S brands and products.
The British brand, which entered India in 2001, is still trying to find its feet in the country. When it first set up shop in the country, foreign brands were few in number and M&S could afford to mark up margins and target a particular segment of the consuming class. But now, as luxury and premium brands set up shops in droves and Indian consumers become more aware, M&S ‘UK plus prices’ may not cut much ice with them.
At the same time, the British retailer has the mandate from its parent to turn aggressive and corner some market share. Real estate costs are too high and productivity per sq ft has to be maximised. So, the company believes the time is right to pick up the pace of growth in the international markets.
The starting price of a men’s shirt is being slashed to Rs 750 from Rs 900. The price of men’s formal jacket has been slashed from Rs 6,950 to Rs 4,745 while a seven pair pack knickers would now cost Rs 495 instead of Rs 750.
“Our strategy is to focus on markets where there’s a strong demand for our products from a growing middle class,’’ the company says in its annul report of 2007. There are already 12 stores in India and there are plans to move to larger and more profitable stores.
Talking about the company’s plans, Sameer Prasad, COO, Planet Retail, said with the expansion in the network of M&S stores (15 by the end of 2007), the brand will appeal to a wider customer base and this price change will help them experience M&S brands and products.
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Anyone who walks in to a M&S store now will feel the difference in pricing which will be one of the most competitive in the market while the quality of products that M&S stands for will remain the same as offered in the UK or anywhere else in the World. M&S will evolve into larger format stores, the first of which will be unveiled at the Ambience Mall, Gurgaon this month. This store will be spread over 22,000 sq ft and will offer a range not seen before in India.Start a SIP with as low as ₹500 with ET Money App!
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