Jaiwant Singh Dhingra notes that the correct way to operate a long-term, successful apparel brand, at least for India, is to cater to the trends that are happening currently
Highlighting that demand in tier-2 and tier-3 cities is growing, and these non-metro cities are soon not even going to be classified as that, Jaiwant Singh Dhingra, Director of Marketing and Business Development, Numero Uno, said that the demand is shifting towards comfort being non-negotiable over the last few years.
In an interview with BW Retail World, Dhingra noted that the buyers in the non-metros are willing to experiment. He added that jumping on trends is not the answer and the right way to operate a long-term, successful apparel brand, at least for India, is to cater to the trends that are happening currently. Edited Excerpts:
When it comes to denim or casual wear, how have the expectations of the consumers evolved for this particular segment?
Over the last few years, we have seen demand shifting towards comfort being non-negotiable. Even in denim, comfort has become key. Fits like slim fits and skinny fits are not what people are looking for now. We have seen a shift towards softer fabrics, added stretched and more relaxed fits. Jeans have made their way to a very versatile, all-day option.
We have things that we call our feather touch jeans, which are super soft, almost like butter and our zero gravity jeans, which are super light and comfortable and perfect for all-day wear. Apart from denim, even the newer generation is looking for functionality in a garment as well. Value addition used to be more cosmetic than it is now. Do those large pockets actually make a difference to my everyday life? Does this breathable fabric actually help me not sweat as much or feel cooler than something else in the summer? These things matter.
Who are your core consumers today and how has that profile evolved over the years?
We do not like to narrow our core consumers down to a certain narrow field, such as 18 to 25 years or 25 to 35 years. I would say the end consumer for us, being a legacy brand, is someone in college, fresh out of school, all the way up to maybe 50 years. Because it is a legacy brand and we keep legacy products along with very innovative and trendy products, we cater to a wide range of ages.
How are tier-2 and tier-3 cities and non-metros performing for the brand as compared to the metro cities?
The appetite for tier two and tier three cities is just going up. These tier two and tier three cities are soon not even going to be classified as that. The aspirational level of those cities in some ways surprises us. And that is a very encouraging factor for us. This is going to sound very repetitive, but social media has obviously reached places and houses and doors that earlier were never considered. With that happening, you just cannot ignore any tier cities, especially tier one, tier two, tier three.
Since tier-1 has always led the race, be it any trend from a demand perspective, do you consider them as being more brand loyal or more experiment-oriented?
It is moving. It is moving from brand loyalty. Tier-2 and beyond, young people are not just going for brands that they know. They are willing to experiment. The experimental factor is really, really booming in tier two and tier three towns. Of course, the trust factor will always be there for a legacy brand.
Spending that kind of money will always be easier for them to do at a legacy brand. But experimenting is not stopping. So, tier two, tier three, boy or girl, man or woman, is willing to step out of that known brand zone, that comfort zone of sorts, to try something new.
How is Numero Uno, as a brand, differentiating itself from its rivals when it comes to catering to diverse consumer groups?
We created one of India’s only fully in-house capable manufacturing units. We have full control of all the processes of manufacturing, from start to finish. When that happens, it is very easy to market and manufacture the right product mix and appeal to the right consumer. That is what makes us stand apart. Sustainability has now become a quote-unquote trend. It was never a trend for us. We started sustainable practices way before it became something that the whole world talks about.
Since you control denim design, manufacturing and marketing, how has this end-to-end capability helped you to stay innovative?
Having an in-house facility controls design, manufacturing and marketing. If you have that, it gives you a significant edge, as clear as that. It shortens our time to the market also. Apart from that, you can ensure consistent storytelling of your brand. If everything is in-house, it is almost like the concept of farm-to-table now, when you go to a restaurant. You can control everything of the way.
Innovation of new fabrics and sustainable techniques is definitely a part of this. And apart from that, it maintains quality, controls costs and responds quicker to consumer feedback. It gives you flexibility to think out of the box, to try something new. And you are not just waiting on someone else to come back to you and say, yes, we can make this. No, we cannot make this. Oh, there is an issue here. So, it is all up to our team to innovate and come up with solutions and techniques to figure out their new innovations.
There is a rising trend of quick delivery when it comes to fashion nowadays, through quick commerce. Is it really a long-term solution or just an experiment?
Time will tell. But India has revolutionised quick commerce. If we are not on that wagon, we do not want to miss it. I am not sure how the customer will behave with receiving a pair of jeans or a garment and loving them, keeping them or returning them. That is definitely something that will be a challenge because your returns will increase a lot. At the same time, you cannot ignore it. We will definitely be involved in that and let us see how disruptive quick commerce can be for every industry known to mankind.
What is that one thing about the Indian apparel industry that most people get it wrong?
Jumping on trends is not the answer. A trend will come this season, but that same trend will not be there next to next season. The right way to operate a long-term, successful apparel brand, at least for India, is to cater to the trends that are happening. So you do not even lose your brand identity.
You cannot change your brand identity every two years. We are known as the original denim brand. When you go to the stores and you go to the online store, you will see things that you might not expect from us. That just speaks for top quality in their core product, along with what the consumer wants now as well.
How would you describe the Numero Uno’s performance in FY25? What are the expectations for this particular fiscal year?
This is a bit of a mixed answer because last year, approximately 13 months ago, we had a massive fire at our warehouse, resulting in a huge loss. But we were watchful and very determined to bounce back. Gradually, we were back on track and going to be stronger than ever. So the key agenda was to stabilise the business and focus on steady growth. Despite all that, and the overall tough market scenario, we were able to close the year at approximately Rs 500 crore MRP sales, which is a good feat despite this huge challenge that we faced of losing all our warehouse inventory and not a very easy market to cater to.
What is the update around the expansion strategy that the company is following in terms of online as well as offline channels?
We now have more than 300 exclusive brand outlets. So, distribution is a key factor when it comes to customer engagement. Our omnichannel strategy is basically supported by POS (point of sale) systems and centralised inventory management. This allows really quick stock visibility and customer data and all this comes from our COCO stores, franchises, ecommerce stores, large format stores and marketplaces. And as a result, we are enhancing the shopping experience, improving sell-through, reducing inventory silos. We are just making connections with our customers at every touchpoint.
We have a focus on strengthening our hold in the markets that we already have. That is one strategy of improving product mix, distribution and store design. That is a constant. That has to be done throughout. Otherwise, old stores, old stock, they just not work. You cannot be relevant if you do not apply innovation and your mind.
We are expanding into the northeast region. Northeast, the southern states, and into Bihar and Jharkhand also. We are not rushing this process. Take it slowly, understand the markets deeply and wisely and then we intend to target and expand into the western markets.
Which key categories have been your main drivers of growth this year?
We have been working towards a few things for this season. So, our premium denim categories address a very specific requirement of customers and the fast movers, actually. They include textured materials and let me put it easily to you- boardroom to bar function. You can be in a boardroom wearing those same pair of denims and go to the bar right after that, and these are timeless classics, but fashionable. So, that is how I would put it.
At the same time, cargoes are super attractive because you see travel, you see how much people are spending on travel. Cargoes is definitely coming to a functionality and fashion segment for us as well.
