The apparel brand’s CFO Shivendra Nigam on record growth, expansion plans, and emerging trends in fashion retail
Cantabil Retail India has recorded a landmark quarter, crossing the Rs 200 crore revenue mark for the first time. With an expanding presence in Tier-2 and Tier-3 cities and a strategic focus on sustainable yet trendy fashion, the brand is solidifying its position in the mid-premium retail segment. In an exclusive interview with BW Retail World, Shivendra Nigam, the Chief Financial Officer of Cantabil Retail India, sheds light on the brand’s financial performance, expansion plans, and the evolving fashion landscape.
Q: Cantabil has reported impressive numbers this quarter. What are the key drivers behind this growth?
Shivendra Nigam: Our numbers have exceeded expectations, and we are delighted with the growth trajectory. For the first time, we have crossed Rs 200 crore in a single quarter, achieving outstanding EBITDA and PAT figures. The brand’s acceptance and credibility, built over 34 years, have been instrumental in this success.
Despite January witnessing one of the shortest winters in recent years, which slightly impacted sales, February showed strong recovery. The overall retail sector is also performing well, contributing to our success. Ultimately, when consumer behaviour shifts positively and people have greater purchasing power, the entire retail ecosystem benefits.
Q: Cantabil has been expanding rapidly in Tier-2 and Tier-3 cities. What trends are you observing in these markets?
Shivendra Nigam: The demand from Tier-2, Tier-3, and even Tier-4 cities has surged in the last five years. While consumers in these cities may not frequently shop at premium international brands like H&M or Zara, they seek aspirational, high-quality brands—this is where Cantabil fits in perfectly.
We cater to customers transitioning from value brands with an average selling price (ASP) of Rs 400-Rs 500 to mid-premium brands like ours, where the ASP is around Rs 1,000. This segment has been a major growth driver, and we continue to expand aggressively, closing this financial year with 600 stores.
Q: Cantabil is known for its strong presence in the menswear segment. How has the shift back to office work impacted your sales?
Shivendra Nigam: With the return to office—whether hybrid or full-time—the demand for formal and semi-formal wear has picked up significantly. Young professionals entering the corporate world find our product range perfectly suited to their needs.
In the apparel market, there are three broad segments: value brands, mid-premium brands like Cantabil, and high-end premium brands. We occupy the mid-premium space, offering customers stylish yet affordable formal and casual wear. Our wide product range allows us to cater to different needs within a single store, unlike brands that focus solely on either formal or casual wear.
Q: Looking ahead to 2025, what fashion and retail trends do you foresee?
Shivendra Nigam: Fashion trends evolve rapidly, but we believe sustainable fashion will remain a long-term focus. While fast fashion has had its moment, the trend is shifting towards a mix of basic fashion with current fashion elements.
At Cantabil, we have strategically adjusted our product mix, ensuring that 20-25% of our portfolio reflects current trends, while the rest remains rooted in classic styles. This allows us to offer trendy options without compromising on our core strengths.
Additionally, the industry is moving towards a larger basket size, meaning customers prefer bundled purchases. This is an area where we excel, as we focus on offering value through combination deals.
Q: With such strong financial performance, what are your expansion plans—both in physical retail and e-commerce?
Shivendra Nigam: Our expansion strategy is well-defined. Last year, we opened 86 new stores, and this year we are on track to open 70-75 more, aiming for a total of 700+ stores by FY2026. Our revenue target for that period is Rs 1,000 crore, and with a steady growth rate of 18-20%, this goal is achievable.
On the e-commerce front, while online sales currently contribute around 6-7% of our revenue, we aim to increase this to 8-10% in the next two years. Our omni-channel strategy is key to this growth—we have already enabled 50% of our stores for online order fulfillment, linking our inventory to all major e-commerce platforms, including our own website.
Q: Finally, how does Cantabil plan to differentiate itself in a highly competitive market?
Shivendra Nigam: Our strength lies in being a one-stop solution for both formal and casual wear, making us unique in the market. While some brands cater exclusively to formalwear or casualwear, Cantabil offers a seamless shopping experience across categories.
Moreover, our expansion strategy is not just about increasing store count; it is about ensuring that each store serves as a key touchpoint for our customers, reinforcing brand loyalty and driving repeat purchases. With 50% of our sales coming from repeat customers, we are confident that our focus on quality, affordability, and accessibility will keep us ahead of the competition.
Cantabil Retail India’s remarkable performance underscores the growing appetite for mid-premium fashion in India’s expanding retail market. With aggressive expansion plans, a keen eye on fashion trends, and a strong focus on consumer preferences, the brand is well-positioned for continued success in 2025 and beyond.
