MAM

Aim to reach 70- 80% revenue in July: Cantabil’s Shivendra Nigam

He revealed the company’s expansion plans.

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NEW DELHI: The apparel industry was one of the hard-hit ones as e-commerce halted and people were locked at home and in no need for new clothes. Now, brands are aggressively pushing to get back consumers to stores and re-build consumer sentiments. Indiantelevision.com had a fireside chat with Cantabil Retail India Ltd chief financial officer Shivendra Nigam. The session was moderated by Indiantelevision.com senior reporter Dolly Mahayan.

Fashion apparel brand Cantabil has a network of around 260+ exclusive retail outlets in 16 states across the country. With a manufacturing plant in Haryana, it produces 10 lakh pieces of garments per annum.

Shivendra said, “Lockdown came at a time when all our merchandise of the summer season was on the shelf at all the stores. We did not face any distribution channel. When the lockdown was imposed all the products were hit at the stores for the sale. As per our plans, we always keep 90-120 days ahead of inventory.”

On the financial front, he said, “Comparing this year Q1 revenue to last year Q1 revenue will be unjustified. For Cantabil, there was no revenue in the month of April, but in May, revenue started coming as unlock 1.0 began. Even in June, we are slightly above the expectations, not even 100 per cent.”

He shared that the inventory cycle for from production to reaching the shelf is done in five to six months. The company has started production for the winter season now.

As public gatherings and parties will not be taking place in the near future, Nigam shared that Cantabil has seen a category shift. “Consumers are more interested in buying casual wear as compare to formal clothes. The revenue has been generated in a very good amount for the company. We have clocked 50 per cent revenue from the full season and our aim is to reach at least around 70-80 per cent revenue in July.”

The company last year announced that it is adding 100 new outlets. Nigam said, “We are not going to open many stores since all our plans have been extended for one more year. Second half will see mainly expansion on the franchise side rather than company model. Things are likely to get back on track by next year.”

Nigam added, “We are not only focusing on tier I expansion but tier II and tier III markets as well. 60 per cent of sales are coming from this market, and we are hopeful it will contribute in the same manner. But, there are chances tier I will shift for one more quarter in terms of getting the sales back.”

Since its inception, Cantabil’s USP is men’s wear, but gradually women’s category is contributing well in the overall business revenue and it recently launched kids’ section too. “We are trying to become a complete family wear brand. Though the formal share is always very high and 60 per cent revenue comes from there," revealed Nigam.

It recently announced its entry in the e-commerce space as well. Nigam said that the company is hoping to get 10-15 per cent revenue coming from this channel by next year.

While the company has been known to provide deep discounts, it is attempting to keep that just for the festive season now. Nigam said, “40-45 per cent discounts for the festive season is for every year, but what’s important is to maintain a balance between the online and offline stores in terms of discounts. We can’t deplete by giving more discount online and damaging our own physical retail stores. Striking a balance is very important. There are no changes in our business plans, just a few things have been extended.” He also added that diwali is going to be a big celebration not only for businesses but for the economy as well.

In the concluding remark, Nigam disclosed that the company will soon rope in a new face for the brand. It was supposed to be done this year but the pandemic has pushed that further.

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