Believing in the audacity of hope
Sridhar Thirunakara Arctic Fox, the name, was inspired by the animal of the same name.the brand offers a wide range of products ranging from backpacks and duffel bags to messenger bags, to mention a few. Its Founder and CEO, Sridhar Thirunakara informs S&
Story of Arctic Fox The name “Arctic fox” was inspired by the animal of the same name. To hunt for food, Arctic foxes travel long distances. Their prey can usually be found below the surface of the snow. So while hunting, the fox must rely on its senses of hearing and smell alone. To catch its prey the fox dives nose first into the snow. But it keeps on trying until it finally succeeds. It is this spirit of relentless optimism that inspired us as a brand. We believe in the audacity of hope. In a world full of people obsessed with overnight sensations and instant success, we believe in creativity and perseverance. We want to celebrate those who embody the spirit of the Arctic fox – those who will relentlessly pursue their dreams, no matter how impossible they may seem. Product portfolio We have a wide range of products with around 150 unique SKUS ranging from backpacks, rucksacks, duffel bags, messenger bags, cross body bags, convertible bags and accessories like lunch box, pencil pouches, laptop sleeves, lile folders etc. All our products have received exceptionally good response with accessories in particular. We have also received amazing response for backpacks and duffel bags.
Established brands Vs Arctic Fox
Innovation is the key. That is what Arctic fox stands for. We only believe in getting better at what we do and strive hard to excel in what we are. Most of our competition is in the sports category. However, we are not just another player in the adventure/ sports category. We have bags for every age group starting with montessori/mini collection where we have introduced interactive bags for kids. We will be first in the country to launch color changing bag that changes color when exposed to the sun or any kind of heat. We have also done extensive research to bring about tiny innovations to our products by increasing the attractiveness and ease of use.
Strategy In Place
The company is looking at a marketing expenditure of close to 35 crores for the next 3 years exclusively for the brand Arctic Fox.
Marketing plans includes a 360-degree launch plan and sustenance strategy, including ▶ ▶ TOI print campaign with two print ads on 25th and 29th April in Chennai, Bangalore, Cochin and Hyderabad markets. ▶ ▶ Hoardings at key location across tier 1 metro cities in May, 2018. We are also expanding to Delhi and Noida markets with our hoardings starting July 2018. ▶ ▶ Social media campaign (major focus on
Instagram, Facebook and Youtube) ▶ ▶ Product explanation and marketing
videos ▶ ▶ Influencer-based activities. ▶ ▶ As a part of PR activity, we have also got huge coverage in Malayalam Manorama for Kerala Market, New Indian Express, Business Standard, and Sakshi, to name a few. Target Audience Our shoppers are mainly school and college students aged anywhere between 16-24 years. India has emerged as a key retail market with a consumer base that is fast growing, young and with high consumption expenditure and disposable income. An Arctic Fox customer is value-conscious but does not mind paying for quality – with an evident luxury retail behavior. An ideal Arctic Fox customer is also an early adopter.
In the past when you look at backpack market in India, consumers have always separated luggage from fashion. Luggage was a utility, not a style accessory. Today, all the luggage brands are working extremely hard to completely change this perception of Indian consumers. Every brand is striving very hard to establish a stronghold in the Indian market, the Indian luggage segment is on the move.
The segment has, over the years, shed its traditional utilitarian tag and has evolved as a lifestyle product. Increasing business and leisure travels coupled with rising disposable income
and organized retailing have led to increased demand for luggage. Within this category, the demand for brand names has grown, as consumers aspire for goods that count as status symbols. To cater to this need of the consumers to own a “BRANDED” bag is the biggest challenge Arctic Fox is facing today. Brand building is a steady process and to position your brand as a luxury brand is a very big challenge to any new comer in the market. But with the excellent quality and looks Arctic Fox will surely own the market in the next 2 years to come. Sustainability
Creativity and innovation are the only way to sustain in a competitive market like India. As a brand we are looking to introduce products related to aspirational career choices that the youngsters make today. We are planning to diversify our product line to various other interesting products like shoes, watches and a lot more. Our innovational products like color changing bags, cross body messenger bags, convertible bags, interactive theme bags are surely to give us an edge over our competitors. Overview of the segment in India
Market size for soft luggage in India is around Rs 3,000 Crores growing at an average rate of 18% CAGR. We at Arctic Fox aim at closing this year around Rs 8 to 10 crores for FY 2018-19. and aim to achieve Rs 300 crores for the next 3 to 5 years. However, overall revenue for Outshiny, our parent company, stands at Rs 93 Cr for the year closing 2017-18. Arctic Fox’s Future Growth ▶ Expansion Plans: We are currently selling through our own website and through trade channels. But we are working towards opening 3-4 standalone stores in the major malls of Bangalore followed by other cities in the south. We are also expanding in phases in North India (Delhi/ Lucknow/punjab) followed by the West markets. ▶ ▶ Business plans: As already described above, we are looking to introduce products related to aspirational career choices that the youngsters make today. We don’t want to be just another bag brand in the market. We are coming up with the whole new segment of products in terms of shoes, watches and a lot more. ▶ ▶ In terms of resources, we are currently a team of 50 people managing the brand Arctic Fox and will be growing the team to 250 in next 2-3 years. However, Outshiny has a total work force of around 1100 people.