JOIN USAs a garment goes through several levels of intermediaries, profits get added at every stage and finally one has to pay a premium for the brand name too.
To eliminate this chain of profit sharing, Bangalore-based garment manufacturer and exporter Scotts Garments has recently entered the ready made garments market by opening its first retail store under “Inmark” brand, coined after the London-based value retail chain ‘Primark’.
Scotts Garments is one of the leading Indian exporter of garments to over 30 international labels in America and Europe and has an annual revenue of Rs 550 crore. The company which has a capacity to make 2 million pieces of garments a year from its 30 garment factories will sell the same quality and design in its Indian retail stores, it claimed.
“We are selling fashionable and high quality garments at a very affordable price. We price garments at the store with just 10 per cent net margin, the amount we earn in export market,” says Scotts Garments MD Nasser Ahmed.
Inmark’s plan is to redefine the price-quality-design relationship for the consumer by obtaining cost advantage from its in-house production facilities. The company already has complete backward integration that starts from making own yarn, knitting and weaving of fabrics, dyeing, and finally manufacturing of garments. Inmark plans to open 8 to 10 retail stores within Karnataka.