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Raza Beig, Plans to Cash in On RETAIL LEADER The entry of international brands, changes in preferences from non- branded apparel to brand names, the fast-growing economy, and a large young consumer population in the country has made India a highly lucrative market - something Splash Fashions' CEO & Director Landmark Group, Raza Beig, plans to cash in on... - By Cham Lamba he Indian retail market is expected to hit SPLASH - RAZA BEIG ?1,02,50,500 crore (US $1,576 billion) by 2026, THE MIDDLE growing at a CAGR of 10 percent. A big chunk EAST TO FASHION of this number belongs to the fashion segment. Retail pundits are predicting that the Indian FORMAT A MAKEOVER fashion retail market worth ?2,97,091 crore (US Splash Fashion $46 billion) will grow at a promising CAGR of 9.7 percent to stores comprise reach ?7,48,398 crore (US $115 billion) by 2026. of three formats FOR MIDDLE The Indian apparel industry, which is the second largest in Middle East: contributoTr in the retail industry after food and grocery, is seeing EAST RETAIL some major shifts. The entry of international brands, changes IPOWERHOUSEl in preferences from non-branded apparel to brand names,the Ranging from CHAIN fast-growing economy, and a large young consumer population 20,000 to 22,000 in the country has made India a highly lucrative market. sq.ft. To cash in on this immense opportunity, Splash Fashions, SPLASH IN Middle East's largest fast fashion retailer, plans a makeover, and will present itself to India in a new avatar. INDIAAS Speaking on his big plans for the brand in India, Raza Beig, Covering 15,000 CEO, Splash Fashions, & Director Landmark Group, said in an sq.ft. HE EYES exclusive interview on the sidelines of India Retail Forum 2017: "Splash Middle East is at a very mature stage. We have already IbUU I lUUtl captured quite a bit of the fashion market in the Middle East. aM3 GROWTH, The brand is 287 stores strong in 13 countries covering 2.8 Ranging between million sq. ft worldwide. However, in India, the growth is in 8,000 to 10,000 EXPANSION nascent stages. sq.ft. IS I IMAGES RETAIL | DECEMBER 2017 RETAIL LEADER "We have been operating steadily as we have learnt a in India for about seven few lessons in the last seven RAZA BEIG: years now but because of all years, we do not want to the expansion that we were make the same mistakes. At THE SUCCESS STORY taking on in the Middle East, present, what Splash lacks we have not been able to in India is position. We are • Raza Beig heads Splash, the fashion concept of the give a lot of attention to our in B-spots and even C-spots Landmark Group. Indian model. Earlier, our in malls. So, the first thing India operations were done that we need to go is ensure • Back in 1993, Splash was at a nascent stage and Beig through a franchise model. that we are in the right space was involved in almost every aspect of the business However, two to three years and retailing to the right from buying to visual merchandising, budgeting and ago, we decided to takeover consumer," said Beig. retail operations. and conduct operations In keeping with this vision, internally. Honestly, we have Splash Fashions closed some • Before he became cognizant of it, Beig was started working on Splash stores that were not rightly promoted as the General Manager of the fast- India only over the last eight positioned and now plans on growing fashion brand, Splash. or nine months," Beig said. refurbishing the remaining "We went back and stores in line with their new • Over two decades with the organisation, his strong revisited the entire India format. dedication and passion has guided Splash to model - from product According to Beig: "We become a category leader and a core brand of the to pricing. We had to re- will be repositioning all of Group. engineer products to a certain our stores in malls - we are • Since the inception of Splash in 1993, Beig has extent to meet the demands already in talks with mall of the Indian consumers and developers for the same, and been actively involved with the overall business the traction that we have we will also start looking for development and retail buying for the brand. received in last seven to eight spaces in existing and new • In 1998, he helped set up Lifestyle, the department months has been really good," malls." chain in India. he added. The brand, which will be • Beig's bullish approach facilitated the initial days of the Group's entry into a new market and before he knew it, he was made a board member, in charge of the fashion division for India. • Sometime in early 2000, he was appointed Managing Director of Splash and was invited to be part of the Board of Directors of Landmark Group. • Eventually, in 2006 he was appointed the CEO of Splash. • Splash has achieved new heights under Beig's vigilant leadership and today the brand is taking 'fashion' forward to a new level. • Beig heads the buying team, and oversees the creation of Splash's season collections. He travels with Splash's team of designers and buyers to major There are around 18 stores spending between ?100-150 international fashion shows, to keep abreast with of Splash Fashions - part of crore to open new stores the changing trends in global fashion. the Dubai- based Landmark in India, eyes a revenue of Group - in India and Beig ?1,000 crore in the next four to • He is personally involved in selecting and signing off aims to take this number to 50 five years. all the garments and accessories which finally make in next three years. it to a collection. Making a Splash in India A Slow & Steady Pace Splash, which used to retail • Beig is at the forefront of the business, spearheading Raza Beig feels that aggressive several brands in India like all the brand across the Middle East, Levant countries expansion is not the style of MBOs - including Benetton, and the sub-continent, with aggressive expansion Splash Fashions. Vera Moda - has decided to do plans in the near future. "We want to go slowly and away with this model. They will DECEMBER 2017 | IMAGES RETAIL 117 RETAIL LEADER Going Omnichannel: Catering **We want to go to the Evolving Consumer Technology holds great slowly and steadily importance in the success and because of any brand and retailers we have learnt are leveraging digital technologies to reach the a few lessons in modern shopper. Mobile- the last seven enabled applications draw in a lot of consumers and retail years, we do not chains are investing heavily want to make the in them. Automation and IoT (Internet of Things) are lower same mistakes. on the list for investment At present, what but gaining momentum as Splash lacks in they are perceived as game changers. India is position. 99 ABOUT SPLASH FASHIONS • Splash, part of the Landmark Group, is one of the biggest retail conglomerates in the Middle East and India. • Founded in 1993 as a single-brand store in Sharjah, in the United Arab Emirates, Splash has grown to over 287 stores across 13 countries. • Earlier, basic and essentials accounted for almost 70 percent of the merchandise in Splash stores. Now fashion occupies half the merchandise. • In other markets, fashion accounts for over 70 percent and, with a positive response from the Indian market, Splash wants to take fashion to that level here as well. To stay ahead of the covers, headphones and even • The brand has 11 stores in the south. But it has seen competition, Splash quirky speakers. Our India better growth in the western and northern markets Fashions is leaving no stone stores are just receiving their of late. unturned as far as leveraging first shipment." technology is concerned. And as Omnichannel • Cities like Mumbai, Pune and Delhi have done better The brand is planning on retailing is continuing than southern cities. These two regions have seven investing 4-5 percent of its to mature, and the lines to eight stores now and going ahead Splash will turnover in this space. between the online and ensure that these regions have a deeper presence Elaborating on the the physical store blurring, with more stores. technological advancements Splash is preparing its e-retail his brand is embracing,Beig website in a bid to lure more stated, "With the world customers and with an eye on still be retailing Being Human target price point between moving so fast, we have to be profitability. and Bossini apparel and ?999 and ? 1,499. Beig said very tech-sawy. We will soon "We have launched our merchandise at their stores, that his brand closed the be introducing an entire tech- e-commerce website in UAE, but 90 percent of the inventory last financial year at ?160 based collection. This means as well as Saudi Arabia and will be purely Splash. crore. "Going forward, we are that technology will be an by the end of this financial Beig outlined the format looking at a growth of 50-60 integral part of the garment year, our online stores of stores in India, saying, "In percent everyyear, year-on- we are selling." will be available across all India, our stores will range year for next three years. Last He further added, "Two GCC's. In India, we have from 6,000 - 12,000 sq. ft. financial we touched a like- months ago, we introduced signed up with Myntra and depending on the mall we are to-like growth of 35 percent, tech-merchandise in UAE to we will soon be launching in, as well as the catchment." and we want to maintain the which young kids can relate Splash online in India," Beig Stores will have the average momentum." to.
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