Van Heusen Brand in India: Growth through Brand Extensions

            
 
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Case Details:

Case Code : MKTG284
Case Length :11 Pages
Period : 2006-2011
Pub Date : 2012
Teaching Note : Not Available
Organization :Madura Fashion and Lifestyle
Industry : Apparel; Retail
Countries : India

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"For FY '12, our vision is to be India's largest apparel and fashion lifestyle brand. Also, to be among the top retail brands in the country" 1

-Ajay Ramachandran, Brand Head, Van Heusen India in May 2011.

Van Heusen, the premium men's formal wear brand from the house of Madura Fashion and Lifestyle (Madura FL) closed the fiscal year ending March 31, 2011, with an annual sales figure of Rs.26.5 billion. The brand, introduced in the Indian market in the year 1990, was initially positioned as a premium men’s wear brand targeted at young executives. With its bold fits and attractive colors, it appealed to younger customers who wanted to make a fashion statement in formal wear. The brand was an instant success in the market and grew rapidly. Encouraged by Van Heusen's success in the Indian market, Madura FL expanded the brand quickly. A super premium collection called 'World Wear', later launched under the Van Heusen brand, also proved successful in the Indian market.

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The brand was later extended to other apparel categories to target some niche market segments. As the number of people under the age of 25 was increasing, Van Heusen introduced a new sub brand called VDot in 2006 to target this segment. VDot was a clubwear brand which could also be used for some other casual occasions. To target the increasing number of women entering the workforce, Van Heusen introduced a new line of female apparel under a new sub brand called Van Heusen Woman. In 2011, Van Heusen introduced another sub brand called Van Heusen Sport which offered sporty looking casuals for young executives. These casuals could also be used as office wear.

Madura FL aimed at reaching a turnover of Rs. 8.5 billion for the fiscal year ending March 2012 for the Van Heusen brand. It planned to expand its reach to smaller cities and to use an innovative marketing communication strategy to attract more customers. Van Heusen also planned to diversify and enter other product categories like footwear and men's personal care products in the year 2012. It planned to expand its outlets from 135 to 150 and to sell its products through its website. Madura FL was also looking to expand the Van Heusen brand to international markets and to open its stores in some markets in the Middle East.

Background Note - Next Page >>


1] "Van Heusen Aims to be India's Largest Apparel Brand," http://www.fashionunited.in, May 13, 2011.
2] Rs. = Indian Rupee. As of 2011, US$1 was approximately equal to Rs.50.


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