Segment slowed as mall space doubled though consumption did not: Lifestyle
The impact of the slowdown has not been felt in the fashion segment, according to Vasanth Kumar, MD, Lifestyle International Pvt. Ltd.
He was confident that sales will be back on track, from the slight slowdown the segment has been experiencing currently, during the festive season.
Mr. Kumar said the slippage in growth rate — from double digit to single digit over the last two years — was mainly due to the expansion of mall space over the last four years.
“While mall space has doubled, consumption has not,” he said, indicating the intensity of competition among retailers.
Growth had also been hit due to the failure of some malls to come up within projected timelines, he said. Lifestyle International offers international brands as well as private labels in many categories, including apparel, footwear, handbags, fashion accessories and beauty.
The company, which began its India operations through a standalone store in Chennai 20 years ago, now has 78 outlets. It is present in 44 cities and is also an omni-channel player, allowing customers to use both online e-stores and physical stores simultaneously to make a purchase.
“This is to provide seamless shopping,” Mr. Kumar said, adding that pure online commerce comprises 10% of sales with the rest coming from physical stores. “Fashion consumption” is mainly through this format, according to Mr. Kumar.
The Landmark Group’s retail presence in India is through three other verticals — Home Centre for furniture and home décor fabrics, Max for value apparel (priced at an average of ₹600) and EasyBuy with prices averaging at ₹250.
Mr. Kumar said operations remain profitable. He said it takes about ₹20 crore (capital expenditure and working capital ) to set up a Lifestyle Store.
Product sourcing was from India, he added.