Being organized and methodical is the key towards working on any business nuances for its growth. The success of any brand relies on its ability to make itself visible before its consumer base and spread its wings across geography that it had not marked for itself yet. The reach for the brand is important in places as without it they will never really know its reach bandwidth with the consumer and their feedback for the brand which will directly result in buying pattern of the consumer.
There are many industries which are becoming organised in terms their offerings and price points. If you would like to go for hatchback the price range would be anywhere between Rs. 5 lakh to Rs. 6 lakh, Mini SUV would be anywhere between Rs. 10 lakh to 12 lakh and SUV of premium brand would be anywhere between Rs. 32 lakh to Rs. 1 crore. Automobile industry has also worked smartly on differential pricing in the last couple of decades. Leading players in the industry offers starting models, fully loading, front wheel drive and four wheel drive etc. and accordingly the price difference between these models for the same variant of the vehicle varies by Rs. 2 lakh to 3 lakh, which is 50% of the price of the vehicle.
The branded apparels market has made strides in achieving some amount of standardisation in its offerings. If you look at denims, there are plain denims with not much of a fashion quotient, fashionable denims with unique stiches and washes. The branded denims price points are ranging between Rs. 2,200 to Rs. 3,400. This standardisation is encouraging and one should communicate this like other industries are communicating and educate the consumer across India. The differential pricing concept adoption is at nascent stage in branded apparels market, one needs to focus on coming out with unique designs, stiches and washes from time to time to offer differentiated pricing and improve realisations.
The MBOs and EBOs should take a lead in ensuring reach of organised braded apparels in large cities to Tier VI cities as they are the face of the consumers and have good relationships with consumers. Unlike online E-Commerce sites, these stores have a reach, offers variety of branded clothes in all sizes. Have you ever got a plenty of options in any segment of branded denims, trousers or T-shirts online, because the variety offered is limited. Sometimes you must be wondering why some of the sizes are not available online, this is due to carrying of low stock by them. Then why are you waiting for buying branded apparels online, drop in to any of the MBOs or EBOs and grab your choice of denim and right fit.
If you look at automobile industry, they have developed their entire model of distribution network on dealers and none of the purchases are made online. Even though the ticket size is high and stakes are more, the braded apparels industry can take some lessons and build strong network on dealers, MBOs and EBOs and build strong brand on differential pricing model. This would bring much needed discipline in the sector and the consumers will get right value at right price and they will appreciate, one can build brand loyalty too.