Kolkata-based hosiery producer Dollar Club is planning to enter the jeanswear market targeting the mid-segment initially.
Managing Director of the company Vinod Gupta told this correspondent that the mid-segment, where a pair of jeans is priced at between Rs.1,000 and Rs.1,500, accounted for a dominant portion of the market for branded jeans.
The jeanswear market now stands at Rs.6,000 crore of which around 50 per cent is of branded garments and the balance is unbranded from the unorganised sector. The market has an estimated annual growth rate of around 20 per cent which will continue for the next two to three years. While men account for 76 per cent of the buy, women account for 17 per cent and the balance is for kids.
Looking to the forthcoming festive season for piggybacking the product launch, Mr. Gupta said starting with eastern India, a national launch would be made later. He said the products would be made at Dollar Club's manufacturing facility in Delhi. Depending on the demand, it was possible to relocate a part of the manufacturing facility to Bangalore or Kolkata, he said. Mr. Gupta said Rs.1-crore ad spend had been earmarked for the launch. However, while the company is open to any offer from a major retail chain like the Future group, as of now plans are to go it alone.
