Pepe Jeans London, a renowned denim brand, is setting its sights on achieving sales of approximately INR 2,000 crore in the Indian market. According to Manish Kapoor, the Managing Director and CEO of Pepe Jeans London in India, the company plans to enhance its retail footprint by adding over 100 new stores within the next three years. As part of the Spanish global fashion group AWWG, Pepe Jeans London is optimistic about the Indian market and aims for a robust compound annual growth rate (CAGR) of 18-20% over the next three to five years, as shared by Kapoor in an interview with PTI.
As part of the strategy, Pepe Jeans is directing its efforts toward expanding its network of brand stores and fast-growing e-commerce channels. Anticipating a significant shift, the company expects that 55% of its business will be generated directly through sales to consumers via its proprietary sales channels.
Over Pepe Jeans’ expansion plans, Kapoor said, “We will add 100 odd stores in the next three years and in terms of a turnover, we are looking at a CAGR growth of 18 to 20 per cent. So we should be almost around INR 2,000 crore of consumer sales in three years.”
When asked about sales numbers, Kapoor said, “If I look at business in India, last year on a consumer sales revenue we did close to INR 1,200 crore and book revenue of INR 562 crore. We grew almost 55 per cent as compared to the previous year.”
But more importantly, Pepe Jeans grew almost 42 per cent, as compared to the pre-COVID numbers, he added.
According to Kapoor, over the last two to three years, Pepe Jeans has transformed into a consumer-centric company, placing a strong emphasis on trends and the digital facets of the business.
“We have a very clear focus in terms of direct-to-consumer sales. So whether it is through online or through stores, retail and e-commerce are going to be our biggest focus,” he said.
Kapoor mentioned that Pepe Jeans London is experiencing a significant portion of its growth from smaller Tier II and III markets. This growth is attributed to factors such as increasing disposable income, greater exposure to trend-related information for existing brands, and the boost from the expanding internet penetration.
“Today the aspirations of these consumers (tier II & III) are similar to a consumer of a metro city.
“These guys have similar sort of disposable incomes and are willing to buy. e-commerce as a platform has provided us an opportunity where we can reach out to consumers or even cities which are like one lakh sort of population. So, accessibility has also become easier,” he added.
Presently, approximately 58 percent of Pepe Jeans’ business is derived from the top eight cities, with the remaining 42 percent originating from markets categorized as tier II and below.
Within the premium denim sector, Pepe Jeans London holds the second position as a leading brand. The forefront of the premium denim space is dominated by the American jeans manufacturing brand Levi’s.
Pepe Jeans London possesses ownership of brands like Hackett and Faconnable. Additionally, it serves as the licensed distributor for Tommy Hilfiger and Calvin Klein in Spain and Portugal.
The brand Pepe Jeans London has been present in India since 1988.
