India continues to be an important market for U.S. Polo Assn. Globally, India is amongst the top three markets for the brand followed by the U.S. and Turkey. The country has been a big part of the growth of the brand in the last five years from $1.3 billion to $2.6 billion in retail sales, J. Michael Prince, president and CEO of U.S. Polo Assn. told ETRetail.
“India is our fastest-growing market and has the potential to become our largest market many years from now. The growth here is outpacing both the U.S. and Turkey on an annual basis,” he asserted.
Ambitious Expansion Plans and Consistent Growth
Today, U.S Polo Assn has already become a Rs 2,000 crore brand in India, with strong growth propelled by square foot expansion, consistent double-digit like-to-like growth, and over 25 per cent contribution from online sales.
“Currently operating 450 stores nationwide, the brand plans to sustain its 15 per cent CAGR by adding 60-70 regular stores annually and expanding its flagship store count from 15 to 40 over the next two years,” Shailesh Chaturvedi, MD, Arvind Fashions Ltd. said.
Flagship stores of the brand are spread across 4,000 sq.ft, and the brand is also increasing the size of its regular stores from 1,500 sq.ft to 2,000 sq.ft.
Adjacent Categories Drive Diversification and Revenue
The key pillars of the growth of the brand in India include its adjacent categories, which contribute close to 20 per cent of the business and are outpacing core brand growth. Footwear, already a Rs 300 crore business, is poised to hit Rs 500 crore soon, while kidswear—currently a Rs 200 crore segment—is expected to double in the next three to four years.
“Globally, we have been doing a $500 million business of kids’ wear and footwear is a $400 million business,” Prince said.
“We see a $100 million opportunity globally in kidswear, footwear, innerwear, women’s apparel, and handbags,” he further added.
Apart from this, the brand is also planning to manufacture footwear in India as per the government’s BIS compliance requirements. This business which has grown at more than 20 per cent CAGR, is expected to continue to grow at the same pace.
Growing Momentum of Omnichannel and Quick Commerce
U.S. Polo Assn. continues to strengthen its omnichannel strategy, with 8-10 per cent of sales coming through omnichannel.
“Quick Commerce has been a very promising and interesting model. We have sold approx. 200 polo T-shirts a day, and 50 shoes a day. And this is sold at a much lower discount than what e-commerce is selling,” Amitabh Suri, CEO, U.S. Polo Assn stated.
India and Global Future Plans
Going ahead, the brand plans to increase its investment levels to keep the momentum going. Apart from this, it will continue to increase the advertising spend on U.S. Polo Assn.
Sharing the global expansion plans, Prince said, “In 2025, we will also be entering new markets like Brazil, Argentina, Poland, and Australia.”>
