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Going ethnic To succeed, ethnicwear labels simply need to gear up and align their goals. Managing Director Siddharth Bindra spells out how Biba has got it right
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By Sapna Khanna he ethnicwear segment in India has, for a long time, relied upon small players, starting with local boutique owners to regional manufacturers and retailers, up until it transformed in the creative hands of our celebrated fashion designers and labels that made it a global flavour. And then there was Fabindia, the one national brand to look up to but it was never exclusively an ethnicwear brand. It had a diverse portfolio of craft traditions of India in home furnishings, organic products and a popular line of garments made from hand woven and hand printed fabrics. And then came along Biba. The solely ethnicwear clothing started out in 1987 as a mere collection made on a Rs8,000 loan and put up at a sale exhibition in a friend’s flat in Mumbai by Meena Bindra, wife of a naval officer. One successful exhibition led to another, and then another, till it made its way right into Benzer, the store. And the company was born. It became a wholesale business with collections being
supplied to stores across the country. That is when Meena Bindra decided to label her collections as ‘Biba’. Siddharth Bindra, the managing director of Biba, son and heir to the dynamic founder and chairman Meena Bindra, joined the business in 1997. “It was still a small business with a turnover of Rs4-5 crore. Still a wholesale business,” he informs adding, “1999-2000 were defining years for us because that’s when brand Biba was born.” Junior Bindra, armed with a Masters degree in Commerce from Sydenham College, Mumbai and certifications in Futures, Options and Financial Derivatives, and Capital Markets & Investments from Harvard, US, had set his sights on high financial goals for the company. Bindra started out with redefining the company’s business format, from wholesalers to retailers. With Shopper’s Stop going through a rough patch at the time, Bindra saw an opportunity | FDD | november 2013 | 21
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and proposed the shop-in-shop format, and subsequently followed it up with Pantaloon. Having conceptualised a format that went on to becoming an accepted one in the industry, this was the first time Biba came directly in touch with its consumers. It was also the very first time the brand actually came to occupying retail space. “This was our first brush with retail, and it worked very well for us,” says Bindra. This move opened the doors for rapid expansion for Biba. The next move strengthened this journey. In 2004, Biba opened its first standalone store in Inorbit Malad, Mumbai. The same year, in a move to establish its brand identity, Biba became the pioneer for Bollywood merchandising in India with the flick Na Tum Jano Na Hum in 2004. This was the first time any brand had merchandised clothing for a movie. Thereafter, Biba went on to ten more such projects with blockbusters like Devdas, Hulchul and Baghban. The store did well, so in 2005 Biba followed up with a couple more and then another 15-20 in 2006. By 2007, Biba had raised private equity. “Last year, we reached 100 stores. It took us eight years • Best Ladies Ethnicwear Brand at Shopper’s Stop Pinto reach the hundred; the next hundred we nacle Award ceremony 2004 are hoping to reach in two years,” shares • Golden Seale Trophy for ‘Brand of the Year – Women’s Bindra adding, “We have created an organIndian Ethnicwear’ in 2005 ised brand in a totally unorganised sector.” • The Apex Award for ‘Brand of the Year – Women’s InToday, the actual store count of Biba stands dian Ethnicwear’ by CMAI in 2005 at 125 standalone stores and presence at • Golden Seale Trophy for ‘Brand of the Year – Women’s 150 multibrand outlets — Shopper’s Stop, Indian Ethnicwear’ in 2006 Pantaloon, Lifestyle, and Central outlets • FMCG Consumer Reaction Award in Fashion and Speacross the country. Not to be left behind in cialties (Women’s Formal) in 2006 the e-commerce space, Biba has partnered • Appreciation Award from Mission of Charity in 2007 with Jabong, Myntra and Flipkart. • Iconic Ladies Ethnicwear Brand – Centrals Icon in 2008 Indeed, being in it at the right time and • Most Admired Women’s Ethnicwear Brand – award in getting the early bird advantage was a key 2009 by Images Fashion Forum. factor to Biba’s success, according to Meena • Most Popular Ethnicwear Brand (Female) at 3rd Global Bindra. But just as important was the fact Youth Marketing Award 2010 that the product appealed to women all • Most Admired Women’s Ethnicwear Brand in 2011 by across all segments, age groups and income Images Fashion Forum groups, working as well as non-working women. The one major challenge that she faced though in the early phase of the business was her lack of formal training impacted business. For instance, she was giving far more fabric than needed for years. Its only much later she realised that there was a more efficient way of manufacturing. For Siddharth Bindra, the early challenges as he took over the reins to create a structured model were mainly the supply chain. It was labour oriented and unorganised, acquiring retail spaces
Making a mark
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and skilled people were a huge task. Today, the challenges faced by the business are different. It’s the broader scenario such as low market morale, low consumer sentiment, low economy and high inflation that are the main hurdles. Citing an example, he explains, “If cotton prices go up 40 percent, I will have to increase my prices. At higher prices, volumes are going to fall down.” Add to this the fact that there is no dearth of competition that this particular segment of apparel has in India. “There is no real capital required to enter this business, so there are many small and big players. We may be only one of the two national brands, the other being Fabindia, but there are strong regional players such as Soch in Mumbai, Neeru’s in Hyderabad and CTC in Delhi.” But Biba deals with competition by ignoring it, literally and staying ahead on the fashion curve and the product such that their clothes stay relevant to the consumer. “We do not focus on competition but we focus on our core competency, which is fashion,” he says. Also, the mantra of affordable fashion and actually giving it to their customers, being well distributed and accessible keeps Biba a cut above competition. It has to be a two-way process. So, customer feedback is indispensible to Biba’s design sensibility. Feedback is constantly sought at the stores, bottled and sent back to head office for utilisation. “It is something that we do and something I feel brands should figure out how to,” opines Bindra. What strengthened the brand was its consistent effort to evolve their design sensibility and keep adding to its portfolio. New ranges were added over time including a stylish mix-n-match range to the earlier single product category of traditional salwar kameez. Then came the kidswear and the unstitched line. The lack of heavy eveningwear was recently addressed with the brand introducing Biba by Rohit Bal. Designer Rohit Bal brought in that specific design sensibility needed to design an eveningwear line. Further, the collaboration of two reputed brands could only work well for both. With Biba expanding its product portfolio with the kidswear lin, and Biba by Rohit Bal as well as the rapid expansion spree to add on hundred more stores in the next two years, the brand ambition is clearly defined. “Our brand ambition also entails taking Biba to a Rs1,000 crore turnover by 2018,” states Siddharth confidently. 24 | FDD | november 2013
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“our brand ambition entails taking biba to a Rs1,000 crore turnover by 2018 while our company ambition is to cater to all ethnic apparel needs of women across income groups and across the country” “We want to be able to cater to all ethnic apparel needs of women across income groups and across geographical boundaries within the country,” he adds. So then there is Biba, and there is a luxury segment over Biba, and finally there is to be a segment below Biba to be retailed in local and hypermarkets. Thus, for its foray into the luxury market as also bridalwear, Biba has bought 51 percent stake in Manish Arora’s label, Indian by Manish Arora. This joint venture entails the opening of five stores so far. Biba would be looking at more such opportunities in the near future, so that eventually a portfolio of brands can be created in the luxury space. So much work has gone into the making of a brand in such a short span. For those who seek to derive inspiration from Biba’s success story, Bindra has some words of experience, knowledge and wisdom to share — Perseverence. “Persevere with the thought and idea, and execute,” he says. “Cost control and speed along the entire supply chain, right up to delivery, are critical to the fashion business. Location is vital to retail, so is cost effectiveness. Expertise is essential, so partner with the best for logistics.” “Understand your retail business, cost structure, sales potential, and never use someone else’s business as the benchmark,” signs off the man who made Biba, the brand. 26 | FDD | november 2013