Pepe Jeans aims Rs 2,000 crore sales in next 3 years to add over 100 stores
The brand anticipates that 55% of its business will be generated directly through sales to consumers from its own sales channels.
Pepe Jeans London, the denim brand, has set a target of achieving sales of approximately Rs 2,000 crore from the Indian market. Manish Kapoor, Managing Director and CEO, Pepe Jeans India, revealed plans to expand the retail network by incorporating more than 100 stores in the next three years. Kapoor stated that Pepe Jeans London, which is owned by the Spanish global fashion group AWWG, is optimistic about the Indian market and aims for a compound annual growth rate (CAGR) of 18-20% over the next three to five years.
As a part of their strategy, Pepe Jeans is concentrating on expanding its network of brand stores and fast-growing e-commerce channels. The brand anticipates that 55% of its business will be generated directly through sales to consumers from its own sales channels.
Regarding the expansion plans, Kapoor conveyed to PTI, “We plan to add approximately 100 stores in the next three years, and in terms of turnover, we are targeting a CAGR growth of 18 to 20 percent. So, we should reach almost Rs 2,000 crore in consumer sales in three years.”
Responding to queries about sales numbers, Kapoor stated, “Looking at the business in India, last year, in terms of consumer sales revenue, we achieved close to Rs 1,200 crore and a book revenue of Rs 562 crore. We experienced almost a 55% growth compared to the previous year.”
Furthermore, Kapoor emphasised that Pepe Jeans achieved a growth of almost 42%, compared to pre-COVID figures.
Kapoor shared that in the last two to three years, Pepe Jeans has transformed into a consumer-centric company, with a focus on trends and the digital aspect of the business. He highlighted their clear emphasis on direct-to-consumer sales, whether through online platforms or physical stores, with retail and e-commerce being their primary focus.
Pepe Jeans London is witnessing a significant portion of its growth from smaller tier II & III markets, attributed to rising disposable income, increased exposure to trend-related information for current brands facilitated by growing internet penetration, among other factors.
Kapoor commented on the changing dynamics, stating, “Today, the aspirations of these consumers in tier II & III cities are similar to a consumer in a metro city. These individuals possess similar disposable incomes and are willing to make purchases. The e-commerce platform has provided us with an opportunity to reach consumers in cities with populations as low as one lakh. Therefore, accessibility has also become easier.”
Presently, the top eight cities contribute to approximately 58% of Pepe Jeans’ business, while the remaining 42% comes from tier II and below markets.
In the premium denim segment, Pepe Jeans London holds the position of the second leading brand, with the US-based Levi’s leading the premium denim space. Additionally, Pepe Jeans London owns brands such as Hackett and Faconnable and serves as the licensed distributor for Tommy Hilfiger and Calvin Klein in Spain and Portugal.
Pepe Jeans London has been present in India since 1988.