New Delhi: Brand Concepts Limited, a luggage and accessories retailer, is planning to significantly expand its offline presence from the current 40 Bagline stores to 100 in the next two years while improving its digital presence in India, Abhinav Kumar, CEO and whole-time director of the company told ETRetail in an interview.
Growing with an omnichannel strategy, the company will focus on premium malls and key high-street locations. Additionally, the company is exploring franchising opportunities and plans to expand further into airports to enhance reach.
During a recent post-earnings investors call, Kumar highlighted, “We want to grow the entire franchisee network and franchisee stores because we’re seeing a green shoot over there.”
Sharing about the online presence, Kumar said digital has continued to be a cornerstone, contributing 40 per cent of overall sales.
Through its e-commerce platform, Bagline.com, Brand Concepts is focusing on offering a controlled and personalized customer experience while maintaining better oversight of pricing and merchandise.
Expanding portfolio and market reach
As part of its growth strategy, the company diversified its brand portfolio, with the recent acquisition of Juicy Couture for India. Positioned as a super-premium or bridge-to-luxury brand, the brand aims to capture discerning Indian consumers.
Kumar said, “Our recent signing of Juicy Couture (with ABG Group) in the women’s handbag and other key categories, adds to our growing portfolio of sought after quality fashion brands, filling our product gaps and increasing our offerings at different price points across multiple channels.”
The company is also eyeing international markets, aligning with its vision of creating a comprehensive retail ecosystem that includes global outreach and innovative product offerings.
Investments and financial performance
To optimize margins and reduce reliance on imports, Brand Concepts is investing in domestic manufacturing capabilities. The company aims to shift its sourcing strategy, targeting 75 per cent domestic sourcing within two years, up from the current 35 per cent. This move is expected to enhance profitability while contributing to sustainability initiatives.
In Q2 FY25, Brand Concepts has reported a 51 per cent decline in net profit falling to Rs 1.78 crore compared to Rs 3.64 crore in the same period last year, according to a BSE filing. Despite the dip in profitability, the company remains focused on strategic growth initiatives and strengthening its portfolio.
The company’s total consolidated revenue for the quarter ended September 30, 2024 stood at Rs 70.73 crore, marginally up from Rs 69.14 crore in a similar period of the previous fiscal.
Kumar noted that while topline growth remained flat, the company improved its EBITDA margin on a quarter-on-quarter basis after adjusting for ESOP expenses. “This improvement is noteworthy given the pressures of higher royalty payouts, increased consultant costs for our upcoming manufacturing plant, and the expansion of our teams to support growth.”
This strategic move is expected to boost production capabilities, improve margins in the long run, and ramp up sales for existing and new brands.
The company reported significant traction in flagship brands like Tommy Hilfiger and United Colors of Benetton (UCB).
Founded in 2007, Brand Concepts operates its premier retail destination for luxury travel gear and lifestyle accessories Bagline – House of Luxury Bags. Under its portfolio of brands, it currently has fashion and lifestyle brands such as Tommy Hilfiger Travel Gear, United Colors of Benetton, The Vertical, Aeropostale, Sugarush and Juicy Couture.
