Future Group’s FBB fashions a Top 10 Show
Future Group’s CEO Kishore Biyani said FBB should enter the league of world’s top ten apparel retailers by selling 320-350 million pieces of garments this fiscal year. Writankar Mukherjee | ET Bureau | April 25, 2018, 07:58 IST
KOLKATA: India’s leading retailer Future Group’s value fashion format FBB sold about 200 million pieces of garments in the year to March 2018, which is a fifth of what the world’s top two apparel retailers, Zara and H&M, sold individually in 2017.
Future Group’s CEO Kishore Biyani said FBB should enter the league of world’s top ten apparel retailers by selling 320-350 million pieces of garments this fiscal year.
This would boost the group’s fashion revenue by about 40% to Rs 18,000 crore. In 2017-18, the group’s fashion sales were a little shy of $2 billion (Rs 13,000 crore) driven by five main formats — FBB, Brand Factory, Central, aLL and Lee Cooper.
“Our fashion business has been doing exceedingly well. FBB will be amongst the top ten in the world this year by sales volume despite selling in just one country, whereas the other retailers in that list have multi-country operations,” said Biyani.
According to Japan’s Fast Retailing (which owns the Uniqlo chain) website, the top ten apparel retailers in the world are Inditex (Zara), H&M, Fast Retailing, Gap, L Brands, PVH (Calvin Klein, Tommy Hilfiger), Ralph Lauren, NEXT, American Eagle Outfitters, Abercrombie & Fitch and Esprit. Esprit’s revenue as of fiscal ending June 2017 was $2.04 billion.
As part of the fashion push, Biyani said the Future Group also plans to focus on the footwear business where it wants to be India’s largest shoe seller in the next 12-18 months by overtaking Bata India. Bata’s 2016-17 revenue was Rs 2,497 crore.
The group recently hired N Mohan as the director of its footwear business. Mohan was the CEO of Aerosoles Europe business and had a long stint with the Tata Group. Future also expanded the Lee Cooper range from apparel to footwear apart from footwear ventures like Clarks, Converse, Famozi and Umbro. It also bought a stake in women’s footwear brand, Tresmode.
Biyani said the push into fashion business will include significant expansion of the brick-and-mortar retail formats and the online channel will not play much role. “Our stand on online is clear — cost of doing business is high which we can’t afford,” he said. Two formats — FBB and Brand Factory — will exceed the 100 store mark in this fiscal. At present, FBB has 61 standalone stores with another 40 are in the pipeline. Besides, it is part of the 286 Big Bazaar outlets.
The Brand Factory chain will expand from 65 stores to 110 outlets. The group plans to open ten new Central outlets this year to add to the existing 42 stores, and 20 new standalone outlets to the 68-store aLL chain. However, Biyani refused to share the investment plans behind the expansion.