Bagzone Lifestyles Pvt Ltd, the parent company of Lavie and Lavie Luxe, has introduced an online exclusive brand – Lavie Signature. Positioned between Lavie and Lavie Luxe, Lavie Signature is priced between Rs 2,000-Rs 3,500, Ayush Tainwala, CEO of Bagzone Lifestyles Pvt. Ltd. told ETRetail.
Lavie Signature products are now available on Myntra and will soon be launched on other e-commerce platforms.
“This strategic move ensures a focused approach to reach the digital-savvy audience, positioning Lavie Signature as a go-to brand for premium bags on online portals. In the past, an online customer has always been value conscious, but today that is changing,” he said.
To launch Lavie Signature, the group has invested around Rs 5 crore and anticipates to continue investing a similar amount for the next 2-3 years before it starts seeing any significant ROI output.
“We are not expecting immediate returns as we believe that a brand has to invest for a few years to build value for consumers and then the returns start coming,” he asserted.
“We expect Lavie Signature to contribute close to 5 per cent of our overall revenue this fiscal, however, we expect to continue to grow over the coming few years,” he further added.
Currently, the group has a presence in two main categories – bags and shoes. Now, it has also expanded into watches and perfumes because it plans to give a complete lifestyle offering to consumers.
“We embarked on this journey of premiumization about a year and a half back, so we have been launching and will continue launching new categories and sub-brands. We are also gearing up for the upcoming festive season with a slew of new launches, designer collaborations, and initiatives,” he explained.
Currently, the group boasts of 127 operational retail stores and plans to expand it to 200 by this fiscal end.
“Out of 127 operational stores, 33 are company-owned and company-operated, and the remaining 94 stores are managed by franchise partners. Going ahead, one-third of our stores will be company-owned and company-operated,” he stated.
Lavie as a group has been growing in the mid-twenties YoY.
“We closed last fiscal with Rs 250 crore revenue and this fiscal, we are eyeing Rs 350 crore. We believe in consistent and profitable growth,” he concluded.
