Spyker

Founder- Prasad Pabrekar.

Introduction:

Founded in 1992, Spykar is India's leading youth fashion denim brand. With a penchant for
design innovation, new product launches and creating fashion for young India, Spykar is
known for its superior product quality and great fit. We are young and restless at heart,
always striving to deliver new denim trends and fashion staples that resonate with India's
growing consumer class.

Geographically poised for growth, we are available across the length and breadth of the
country. We have 249 exclusive stores (FO-FR), more than 1000 multi-brand stores and
presence in all key large format stores. We offer our collection on spykar.com and they are
also available on all leading e-commerce portals.
Since 2014, Spykar has been part of the Bagri family backed by Metdist Group, a diversified
portfolio of companies. The EU-based Metdist group has interests in metals and various
industries such as fashion, technology, financial services, etc.

Size of industry & Growth rate:

Homegrown denim brand Spykar expects to grow by 25-30 per cent this fiscal to reach Rs
700 crore in revenue, a top company official said. The brand achieved retail sales of over 550
million crowns in 2017-18.

“We are seeing a remarkable shift in consumer sentiment that encourages us to stick our
necks out and pursue such aggressive growth. We are looking to close this fiscal year at Rs
700 crore, a growth of 25-30 percent,” Spykar Lifestyle CEO Sanjay Vakharia told PTI.

Spykar's sales have doubled in the past 3 years and profits have grown 4x, he said. The
company also expects a better festive season growth of 15-18 percent this year and plans to
expand its retail presence to 350 stores soon. It currently operates 220 stores in 140 cities that
are franchise stores. “We plan to expand to 200 cities soon. And to increase the number of
stores to 350 stores,” he said, adding that the lack of real estate space is a serious problem as
the supply does not lead to aggressive retail growth.

The company, which gets around 40 per cent of its business from tier-II, tier-III and tier-IV
cities, has forayed into the sports category and expects the segment to contribute significantly
in the future. "We're getting into the sports side of the business and making sure it starts
contributing to the business in a big way," Vakharia said. In terms of revenue contribution,
men make up 90 percent of sales, but the company expects women's share to increase to 25
percent in the future.

Accessories currently account for 4 per cent of sales, which it expects to double to 8 per cent
by the end of the financial year. With e-commerce being the preferred mode of shopping
today, the online space currently contributes 7 percent to the business and the company
expects to cap it at 10 percent this fiscal.
DISTRIBUTION NETWORK
Spykar has vast distribution channels in the form of retail units of Exclusive Brand outlets
(more than 200), Multi Brand Outlets (more than 900) and large format stores in form of
Shopper’s Stop, Big Bazaar, Globus, Central etc. This has helped in easier accessibility of
products for the consumers in cities as well as smaller towns across the country. Unlike its
competitors like Levis, Wrangler and Pepe the products from Spykar is limited to pan India
presence with less foreign exposure. The company is currently following a decentralized
network of its distribution and supply chain with the focus to get more market share in
southern and north-eastern regions. Also Spykar identifies the region wise patterns of
demands and implements appropriate strategy to gain major market share. Continuing with
the trend of ecommerce and online purchase and shopping Spykar has focussed on increasing
its availability of products for consumers through such internet purchases. This provides
ample opportunity of marketing and providing users with information and incentives in form
of discounts to purchase the product.

The company uses Zoho Analytics for tracking:

 Sales metrics: Monthly online sales, primary and secondary sales, which store sells
the most on any typical day, revenue contributions from stores,
customer brand preference by region, and more.
 Inventory metrics: Current inventory with distributors and retailers, inventory levels by
product and regions, overall stock levels of Spykar apparels in stores, etc.

SALES FORCE MANAGEMENT

Zoho Analytics enabled them to track the sales and stock levels across 900-odd stores across
India, at any, at given time. Now their direct sales team, indirect sales team, and G&A folks,
are all able to see sales figures and stock values, along with payments received/due for any
time range. They can now analyse in which area, city, state, store, each product is selling
higher, and this enables them to send stock accordingly or give better discounts to the stores
making the highest sales.

With Zoho Analytics, Spykar was able to analyze and track their sales performance
and inventory levels, and identify profit-making stores and products by location, all in real
time. This ensured stock availability and that they ran appropriate discounts and promotions,
and optimized their entire sales operation to produce higher revenue.

The company can now slice and dice the data in every possible way, using Zoho Analytics.
This previously took 7-8 hours of manual effort, and now takes just minutes, increasing
nearly their team's productivity by nearly 20%. Zoho Analytics thus became
their permanent centralized BI solution.

Benefits & results

 20% increase in team productivity

 Enabled real-time tracking of inventory levels in stores across India
 Enabled tracking of revenue contribution from stores and online sales
 Established a centralized BI function for Spykar

CRITICAL SUCCESS FACTORS

Incepted as a denim manufacturer in 1992, Spykar today has earned for itself strong brand
equity as india’s leading young fashion retailer. Even as denim remains its core product, the
Company has continued to add a range of products and categories to its portfolio to keep up
with the changing market dynamics.

Current Presence

All these years, Spykar Lifestyle has strategically strengthened and deepened its market
presence through a mix of sales channels. Presently, the brand is retailed across India in 203
EBOs; 900 plus MBOs; and 146 LFS such as Shoppers Stop, Globus, Lifestyle, Pantaloons,
Pyramids, etc. The brand as of now commands nearly 12 percent share in the country’s
casualwear market.

Trade Nitty-Gritty

Spykar’s business interests span manufacturing, distribution, exports and retailing. Other than
garments and fashion accessories, it also deals in fabric and apparel accessories like buttons,
rivets and eyelets. The sale contribution of various verticals to its annual turnover during
2013 has been: EBOs – 50 percent; MBOs – 25 percent; fashion and lifestyle outlets – 17
percent; other retail outlets – 7 percent; and exports – 2 percent.

Product Range

The brand primarily targets young people in the age group of 15 to 30. Its core value – to be
bold, brash and audacious – resonates well with the fashion-conscious youth of today.

Store Operations

The company’s operational philosophy is to improve its business practices, create superior
systems and processes for the employees, and provide excellent retail experience to its
customers. Says Vakharia: “At Spykar’s exclusive stores, every aspect – right from the
theme, décor, aesthetics, music, to the assortment of apparel and accessories displayed is fi ne
tuned to create a customer-friendly ambience. The floor plans and displays are done keeping
in mind to maximise product accessibility and mobility inside the store.

Leveraging Technology
Modern day businesses are incomplete without technologyled processes. For Spykar also,
technology is integral to its everyday operations related to production, supply and retail. As
per Vakharia, at the store level, the company uses internally developed software systems. As
regards back-end operations, the company has installed in-house developed software called
Retail Gear for their warehousing and inventory management.

Winning Customers

The USP of Spykar is that it keep itself updated on the latest in trend, marketplace dynamics
and consumer aspirations. Vakhaira declares: “We put in a lot of effort to innovate, and to
bring new styles, cuts and fabric to the market. We experiment a great deal on accessories as
well. We are generally the fi rst ones to bring the latest styles and trends to the Indian
consumer.”

Marketing and Promotions

Nowadays marketing efforts are faced with many challenging, with consumers becoming far
more conscious and ever more fl ickering. Therefore, to capture their imagination, brand
strategy requires a lot of deliberation for any kind of promotion. The vehicles used to
advertise the brand are a mix of conventional and contemporary media along with the most
important, which is, innovative in-store promotions.

Diversifying for Growth

“Quality has been our driving force all through our journey so far and it shall remain so. Even
in the early days, we perfected our core product ‘denim’ so much so that it was collected by
the competitors to try and match us, both in terms of design and quality,” says Vakharia.

The Future

The present Indian retail market is rife with local and international brands. The competition
has intensified manifold but Spykar has maintained its position amongst the top league in
casualwear segment. In the last few years, the denim market has evolved from basic denims
to fashion denims, and Spykar being a youth-centric brand, has been able to focus and create
relevant merchandise to emerge as a strong player in the fashion denim category.
Spykar Brand’s sales promotion:

Spykar is an Indian clothing brand that has a variety of products. They have been providing
clothes for the last fifteen years, the products are mainly for the current generation of youth.

Aiming to offer complete style solutions to customers through Spykar Style Lab, Spykar
Lifestyle has a broad reach of over three million customers, influencing youth culture across
India.

Spykar Promotion & Advertising Strategy:

The promotion and advertising strategy in Spykar's marketing strategy is as follows:

Initially, Spykar did aggressive promotion through in-store campaigns. This was done
keeping in mind the current and conventional media available for such advertising activities.
However, the current trend is to use social media platforms like Facebook, YouTube etc. The
company's promotions are more inclined towards youth oriented themes as they are the main
customer of the brand. Spykar has tied up with various social events like the Teach India
campaign and also voice campaigns to attract the youth. The slogan of some promotions is
focused on freedom, youth and challenges. Various exhibitions and events are also held as
part of the promotion to increase consumer awareness of the product. Currently, Spykar is
involved in sporting events like cricket by being an associate sponsor of Rising Pune
Supergiants. This was done to connect with the youth from different parts of the country as
IPL has a huge following. So it covers Spykar's marketing mix.spyker has developed
its strategies through a mix-up of geographic, demographic, and segmentation strategies This
is basically for building distinct types of offerings according to the market and customers'
choices. 

Spyker chooses mass targeting strategies to convince the demands and needs of its customers.
Levi's Market position is quite upright and competitive, but at the same time the brand
prioritizes value for money for customers. And that's why it influences its customers and has
thus gained a huge base.

Spykar is synonymous with making more stylish and aspirational denim aimed at the youth of
the country. Its products also include shirts, t-shirts, non-jean tops and bottoms for both men
and women. Spykar products have been in high demand for the past two decades of their
existence. Some of Spykar's other products include other fashion accessories such as belts,
socks, perfumes, deodorants and designer bags and wallets. The company, which initially
launched jeans, started diversifying by introducing product variants including trendsetter
cargo and OYO for kids. The demographic for Spykar products is between 15 to 30 and
aspiring urban and semi-urban youth. Therefore, the products underwent changes in their
design and pattern according to the changing trends of defined style among these
demographic groups. Spykar's product portfolio tries to resonate more with the needs of the
youth in its marketing mix. The online platform provides better visibility of such products
and provides a complete understanding of consumer needs.

Clothing from Spykar is generally mid-priced to capture a large consumer base among
middle-class customers. It has generally adopted a market following strategy with product
prices within the limits of other competitors. Pricing in the marketing mix is based on the
various segments of manufactured products that range from premium and apparel materials.
The same strategy has been adopted for all accessories manufactured by Spykar, which are
sold at a medium price. The main attractive factor for Spykar's pricing was the discount
features that are available in all online and offline stores selling Spykar products. This feature
has really helped Spykar retain its consumer base.