V-Mart Retail venturing into nomination; will launch its own brand
V-Mart, a well-known retail giant in Delhi, will soon nominate fabric suppliers. It is also coming up with its own fashion brand covering segments for men, women and kids. With an expected turnover of
Rs. 1400 crore in the current fiscal, the company is majorly into apparels as its fashion segment contributes to nearly 94 per cent of its total revenue. A steady growth of 30 to 34 per cent in the current financial year has motivated the company to develop its own product development team. Rajan Sharma, President – Procurement and Sourcing of the company informed Apparel Online, “Recently I met many good fabric mills and we are very serious about nominating these fabric mills to our garment suppliers. They are the need of the hour because the way we are growing, we really require them. We will align our garment suppliers to these fabric mills so that our customers find complete uniformity in fabrics, wash and garment.” He further added that this nomination will support V-Mart to save its cost as fabric constitutes almost 50 per cent cost of the garment and nomination directly with the mills will support the company in terms of pricing also. A confident Rajan emphasized, “Our bottom line will improve by minimum 3 to 4 per cent through this nomination which is quite big.” This process which is as of now in the initial stage is expected to take full form by the next season. The nomination will start with denim and bottom segment but will cover the entire range later.
Having currently 156 stores across the country mainly in Tier-2 and Tier3 cities, V-Mart at present sells more than 1.5 to 2 million jeans per year covering men, women and kids and about 3 million pieces of garments monthly covering all categories. The company is working with nearly 500 garment manufacturers/suppliers but after nomination, it will need to work with less garment manufacturers and
Rajan, with an overall experience of 23 years, manages a team of nearly 40 buyers, and is responsible for the entire apparel and non-apparel (home mart, home furnishing, stationery and toys & games) sourcing in the company.
order size will naturally increase. It will also help to reduce cost to the company as well as its suppliers. Talking about the branding initiative, Rajan informed, “When we are sourcing garments in the open market, there are more chances to find similar garments being sold by our competitors or other players in the market. We will , therefore, have our own designing team so that our creativity reaches our customers in the form of exclusivity.” V-Mart is even planning to set up a couple of in-house brands for Spring/Summer 2018-19.
Rajan Sharma, President – Procurement and Sourcing, V- Mart Retail