Baba Ramdev's company turns to apparel after making swells in FMCG

Patanjali Ayurved, the Baba Ramdev led Indian consumer goods company, after making its mark in FMCG sector, has forayed into the fashion sector with the launch of Patanjali Paridhan in November last year. Patanjali opened its first store, which comprises three sub labels – a menswear brand Sanskar, womenswear brand Aastha and a unisex sportswear brand Livfit – in New Delhi, Financial Express reported.

After invading the fashion sector, the Indian consumer goods company is trying to maintain its status of ‘purely desi products’ in the fashion sector too. The firm recently launched an advertisement campaign for its fashion horizon.

Store expansion plan

Patanjali aims to open 100 apparel stores pan India within the next 12 – 18 months, and it also aims to mark its presence in the online retail sector before the end of FY19. While, the apparel line will soon enter e-commerce platforms like Paytm, Flipkart and Amazon.

Besides its exclusive outlet stores (EBOs), the company is poised to open small stores in several cities. “The concept behind the small stores is to stock only one of our sub-brands at a time,” stated Patanjali Paridhan, CEO, KN Singh. The small store would showcase only womenswear, sparring the complete Patanjali Paridhan range. “We are gradually trying to promote sub-brands individually, but our EBOs are aimed at building our brand”, describes Singh.

Moreover, Patanjali aims at diverse retail modes like multi-brand outlets (MBOs), the shop-in-shop model, distribution by unorganised retailers and distributors, online retail, including organsiational business, using which companies can purchase in bulk.

Till now, Patanjali Paridhan has opened eight functional outlets in New Delhi, Berhampur, Haridwar, Meerut and Aurangabad. The company hopes to open 20 stores before the end of 2019, engulfing Jaipur, Agra, Patna and Nasik.

Foreign movement

Singh states, the fashion sector has turned out to be an alluring business arena for the spiritual guru. “The food and beverages sector commands around 12 per cent of the total retail industry, while the second largest category is fashion and accessories, which accounts for 10 per cent share.”

Keeping note of the middle and upper-middle-class consumers, Patanjali Paridhan has fixed its prices at Rs 699-Rs 1,499 for mens wear, and at Rs 999-Rs 2,499 for womens wear.

Patanjali is doing everything possible to lift its apparel brands. As per the industry estimates, a budget of Rs 1 crore has been allocated for advertising in FY19.

“We are going to go all out. Apart from digital, print, TV and radio, we are also trying to promote our brand in movie theatres,” Singh says. Recently, Patanjali organised 'Tann Maan Dhan Indiapan' campaign, “to remind people of the rich heritage of fashion that we have surrendered in the blind pursuit of western fashion”.

Will the emphasis on ‘Indianness’ work? Saurabh Uboweja, CEO of management consulting firm Brands of Desire, says while Patanjali has been successful in the FMCG category, a similar approach will not work in the fashion category.

“When it comes to fashion, it can’t rely on Indianness or ethnicity as the differentiator, as there are plenty of established brands in the market,” he says. “Patanjali Paridhan has no clear positioning; I don’t think it’s going to be a viable long-term business proposition,” Uboweja adds.

(With agency inputs)