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Raymond's invests Rs 70 mn in kids apparel brand Zapp!; second store unveiled in Mumbai
 
Indiantelevision.com Team
(4 October 2006 8:00 pm)
 

MUMBAI: Raymond's foray into the kid's apparel market with Zapp! saw its first entry into big metros with the Mumbai launch today. Following this, the brand will unveil its third store in Kolkata next week. The company is investing close to Rs 60 to 70 million in a National roll of exclusive Zapp! outlets.

The company is looking to expand with 12 branded outlets across the country by the end of this fiscal. The markets they will be looking at include Bangalore, Hyderabad, Chennai, Cochin, Calicut, Trivandrum, Vishakapatam, Surat and Baroda. The largest store will be opened in Pune in December. The first Zapp! store however, was unveiled in Ahmedabad in June this year.

Speaking to Indiantelevision.com Raymond Apparel Ltd. president Shreyas Joshi pegged the current market size of kids branded apparel in India as Rs 270 billion however, the contribution of organized players is limited to Rs 5 billion.

Commenting on the revenue growth the company is expecting from this new venture Joshi added, "We are targeting about 300 million by the end of 2008. We see this as a great opportunity as the apparel organized market is still very small in India."

In addition, Zapp! has tied up with Warner Brothers as an authorized licensee for 'Superman' branded clothing in India. They however, declined to divulge the duration of this contract. Besides exclusive stores Zapp! will also be present in large format stores like Lifestlye and Shoppers Stop.

Commenting on the company's expansion into every segment of the apparel market, Raymond Ltd Group president Pradeep Bhandari said, "Zapp! is a natural fit into our overall growth strategy for apparel. We have closely studied and understood the dynamic kidswear segment."

Zion, Ashley, Posh, Pixel & their pet dog Jambo

The range gets its name 'Zapp!' from the initials of its four animated characters Zion, Ashley, Posh and Pixel. Extending the Zapp! experience are initiatives such as an interactive website www.zappkids.com and the Zapp! Club a customer loyalty programme giving each member an individual experience through special events and rewards such as bandanas, wristbands and tattoo stickers. A special membership card will record preferences such as clothing styles and favourite colours. This facility will allow kids to swipe their membership cards to see a customized version of themselves on a plasma screen at the entry of every store.

Targeting kids between the age group of 4 to 12 years, the Zapp! collection ranges from party to casual wear. Designed in house, the Zapp! range will be available in 'Basics' and 'Denim' and the range will be priced between Rs 299 to Rs 899.

Joshi added, "Zapp! is all about the experience be it the clothing line, the ambience or the unique CRM model, the Zapp! experience will extend itself into every aspect of the destination. We have taken great care in creating the right product from the design to the fabric to the unique stand alone brand stores, which will impress the parents who are on a constant look out for a world class, quality product. Overall, Zapp! promises a fresh and an exciting experience to our customers."

The national advertisng campaign is yet to be kicked off, however city specific campaigns are likely to be rolled with its entry into every market. Addressing mothers and parents the campaign will use a media mix of local supplements, hoardings and direct mailers. The brand will also target schools and retail outlets.

Speaking at the inauguration of the Mumbai store, Raymond Ltd. chairman and managing director Goutam Hari Singhania said, "For decades, Raymond has had a major influence on fashion and today we are taking yet another step in creating a whole new experience for a whole new audience the new generation of fashion conscious young adults! Our first store in Ahmedabad in June 2006 has been a successful experiment with some amazing response. With a strong product range coupled with a unique and fun experience Zapp! would definitely redefine the kidswear market that has a huge potential in India."
 
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