Brand Extension has always been a brilliant strategy for brand owners to achieve business growth by taking advantage of the untapped brand equity to veer into new product categories. Going further, the retail brands in India have become aware of the potential of brand licensing and a validation is the increasing number of retailers or manufacturers adding ‘brands power’ to their portfolio.
While retailers generally go with a capsule collection or co-branding option, the manufacturer has opportunity to leverage the brand to its fullest, which is something Mandana Retail Ventures has crammed extensively. The exclusive licensee to superstar Salman Khan’s Being Human brand of clothing, MRVL is expanding its presence at an exponential pace. In a bid to reach more number of Salman Khan fans, the licensee is now moving from the metro markets to Tier II and Tier III towns with its exclusive and franchise stores. While, the retail company is not planning to tweak its prices for the smaller price sensitive markets, with average price being 1,500 INR, and akin to its belief of not giving huge discounts, it is even staying from eCommerce.
“The reason for moving to Tier II and Tier III markets is to reach all the fans of Salman Khan. But, we will not have different styles or pricing as the spending power in such places is as good as the metro markets where consumers are equally aspirational,” said Manish Mandhana, Director, Madhana Retail Ventures, during the earnings call.
The company has stepped up the royalties for the Being Human brand which it gives the Salman Khan Foundation from 3 per cent to 5.75 per cent for the next three years. Besides smaller markets also comprise the bulk of e-commerce sales due to lack of brick & mortar stores. But since Mandhana Retail wants to stay away from giving discounts, it is not willing to drop prices or even give discounts to retain its premium image in the apparel segment.