With fashion in their backpocket, Provogue hits realty biz with Prozone
India is still is at the tip of the iceberg when
it comes to organised retail. However, as big players with deep pockets move in for a kill, the market is bound to expand and so is competition among realty players. According to industry experts, the number of malls in India in next two years will reach a whopping 600 from just 114 in 2007. And bidding to cash in on this is Prozone Enterprises (a JV between Prozone and UK based Liberty International PLC), the real estate arm of the renowned fashion brand Provogue. Incidentally, Provogue has already carved a distinct niche among other apparel brands in the country and is now set to give the domestic realty players a run for their money. However, being new to the industry, it won’t be as easy a route this time. But, then who said success comes easy? In conversation with 4Ps B&M, Tim Eynon, CEO, Prozone Enterprises Pvt. Ltd. and Director, Provogue (India) Limited reveals future strategies of both the companies.
What are your plans with Prozone’s for Indian retail?
We are planning to open 12 malls in Tier-II cities and we have already tied up with six land owners for the same. We have also booked the other six sites for the malls. All of them are private land owners till now.
When would the first mall come up and where?
It will come out in the second half of 2009 at Aurangabad followed by Indore, Jaipur, Raipur, Nagpur and Surat.
Will these be specialty malls?
We are giving space to more than 250 retailers under one roof. So, it can’t be a specialty mall.
How do you plan to go ahead with Provogue? Is it involved in the real estate business too?
We currently have 120 stores in the country and will be adding two new stores every month. We will go at the same pace at least for the next one year. Provogue and Prozone are two different companies. Provogue has nothing to do with the real estate business.
With respect to Provogue, what other market segments are you keen on targeting?
We have recently entered the fragrance business. The women’s wear segment is also one which holds a lot of potential because as of now 60-70% of formal western clothing is still sold through the menswear segment.
Is the company interested in entering the kids wear segment too?
The kids wear business is very lucrative, but Provogue has no plans to enter the business as of now.
Like other fashion brands, do you have a plan to take Provogue to Tier-II & Tier-III cities?
We have plans to open stores in Tier-II and Tier-III cities. Most of the stores are spread across 1,200 square feet, but now we are looking at bigger format stores for the metros which could even go up to 5,000-10,000 square feet. We are more interested in opening the Provogue Studios, which will give customers altogether a new experience.
How do you plan to differentiate when it comes to mall business?
We are also interested in amusement parks but they will be a part of the whole mall and not alone as it will be a centre of attraction for the people coming to the mall. We want to provide people a nice experience altogether and not only a shopping complex.
India is still is at the tip of the iceberg when
it comes to organised retail. However, as big players with deep pockets move in for a kill, the market is bound to expand and so is competition among realty players. According to industry experts, the number of malls in India in next two years will reach a whopping 600 from just 114 in 2007. And bidding to cash in on this is Prozone Enterprises (a JV between Prozone and UK based Liberty International PLC), the real estate arm of the renowned fashion brand Provogue. Incidentally, Provogue has already carved a distinct niche among other apparel brands in the country and is now set to give the domestic realty players a run for their money. However, being new to the industry, it won’t be as easy a route this time. But, then who said success comes easy? In conversation with 4Ps B&M, Tim Eynon, CEO, Prozone Enterprises Pvt. Ltd. and Director, Provogue (India) Limited reveals future strategies of both the companies.What are your plans with Prozone’s for Indian retail?
We are planning to open 12 malls in Tier-II cities and we have already tied up with six land owners for the same. We have also booked the other six sites for the malls. All of them are private land owners till now.
When would the first mall come up and where?
It will come out in the second half of 2009 at Aurangabad followed by Indore, Jaipur, Raipur, Nagpur and Surat.
Will these be specialty malls?
We are giving space to more than 250 retailers under one roof. So, it can’t be a specialty mall.
How do you plan to go ahead with Provogue? Is it involved in the real estate business too?
We currently have 120 stores in the country and will be adding two new stores every month. We will go at the same pace at least for the next one year. Provogue and Prozone are two different companies. Provogue has nothing to do with the real estate business.
With respect to Provogue, what other market segments are you keen on targeting?
We have recently entered the fragrance business. The women’s wear segment is also one which holds a lot of potential because as of now 60-70% of formal western clothing is still sold through the menswear segment.
Is the company interested in entering the kids wear segment too?
The kids wear business is very lucrative, but Provogue has no plans to enter the business as of now.
Like other fashion brands, do you have a plan to take Provogue to Tier-II & Tier-III cities?
We have plans to open stores in Tier-II and Tier-III cities. Most of the stores are spread across 1,200 square feet, but now we are looking at bigger format stores for the metros which could even go up to 5,000-10,000 square feet. We are more interested in opening the Provogue Studios, which will give customers altogether a new experience.
How do you plan to differentiate when it comes to mall business?
We are also interested in amusement parks but they will be a part of the whole mall and not alone as it will be a centre of attraction for the people coming to the mall. We want to provide people a nice experience altogether and not only a shopping complex.
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