DLF Brands operates stores of overseas brands such as Mango, Forever 21, DKNY, Sunglass Hut and Claire’s. It also runs stores for Mothercare a U.K-based retailer which specializes in products for expectant mothers and in general merchandise for children up to 8 years old. It plans to increase its 60 Mothercare stores spread over 25 cities in India, to 200 over the next five years.
It costs the company $118,000 to $314, 400 to open one Mothercare store, depending on the size and location of the store, and so it’s looking at an investment of about $16 million in the next five years to expand the Mothercare brand.
The company also operates nine Forever 21 stores and is going to launch the tenth one soon. Deepak Agarwal, chief executive of DLF Brands said that they would add four-five outlets every year to expand this brand.
DLF Brands sees an even bigger expansion opportunity for Sunglass Hut. “Sunglass Hut, because of its small format can go anywhere and everywhere,” Agarwal says. The company has nearly 70 Sunglass Hut stores and it can add 30 stores every year to the brand depending on the opportunity, he said.
According to Business Standard DLF Brands is poised to launch an online marketplace focusing on the kids and parenting space in the next two months for which it has invested $4 million. It is looking at revenues of $16 million in the first year of operations, said Agarwal. The portal will sell apparel, toys, books, travel, and food, among others. To start with, the portal will sell 150-200 brands and 4,000 products. Within a year, it plans to sell 400-500 brands and 10,000 products. The market size for baby products in India is estimated at $240 million to $400 million of which the estimated online market for baby products is $16 million to $18.5 million. Agarwal added that DLF Brands would also start ecommerce marketplaces in other categories in the coming years.