India: Since its 2008 entry into the Indian market, French menswear brand Celio has expanded significantly, with over 75 stores nationwide, adapting to evolving consumer preferences and exploring sustainability to enhance growth and profitability in the competitive landscape of men’s fashion.

Celio, the French menswear brand, has made significant strides in the Indian retail market since its introduction in the country in 2008. The brand initially launched with just two standalone stores located in New Delhi and Mumbai, but it has now expanded its footprint considerably, boasting over 75 exclusive stores across 34 cities and more than 700 sales points in 200 cities nationwide. This information was shared by Satyen Momaya, the Chief Executive Officer of Celio India, during an exclusive interview.

In recent years, the landscape of men’s fashion in India has evolved dramatically, driven largely by the tastes of younger generations such as millennials and Gen-Z. These consumers are increasingly attentive to style and fashion, with social media platforms playing a pivotal role in shaping their preferences as they follow male influencers showcasing their fashion choices and grooming routines. Celio, having recognised this trend early, has positioned itself to cater to this evolving market.

Momaya highlights that Celio’s myriad expansions and transformations were informed by strategic decisions, including a shift to a multi-channel sales approach. Initially concentrating on standalone retail, the brand ventured into department stores such as Shoppers Stop and Lifestyle, as well as online platforms like Amazon and Myntra. This omnichannel strategy has proved beneficial, particularly following a shift in the business model during 2017-18 that improved profitability through enhanced product allocations via AI and machine learning.

Currently, Celio’s core target demographic includes men aged 24 to 28, though it also offers licensed products appealing to younger consumers aged 12 to 18. Online sales currently constitute about 8% of the total revenue but are projected to rise to 13-14% in the coming years, capitalising on a compound annual growth rate (CAGR) of 35% in this channel. Despite this growth in online sales, the primary focus remains on offline retail, particularly in shopping malls which Celio sees as ideal locations for their younger male customers.

The brand’s retail spaces have evolved from smaller storefronts to larger outlets designed to enhance the shopping experience. Recently piloted in Hyderabad, the new store format incorporates a three-tier design across 2,000 to 3,000 square feet. This format not only enables an improved customer navigation experience but also aligns with the growing demand for a greater variety of product displays.

In terms of product offerings, Celio maintains a diverse mix of items, with about 60-65% of its inventory sourced from its native France, while 35-40% is tailored specifically for the Indian market. This strategy has facilitated higher sales transactions and better conversion rates. The collection undergoes regular refresh cycles, with around 45-50% of merchandise being updated every 30 to 45 days, catering to dynamic consumer preferences.

Looking towards the future, Celio plans to expand its retail presence significantly, targeting 15 new store openings in 2025, primarily focused on tier-2 and tier-3 cities, as well as maintaining a strong presence in metropolitan areas. Upcoming locations include Surat, Coimbatore, and Ludhiana, as the brand seeks to adapt to changing market demands.

Sustainability also forms a crucial part of Celio’s operational strategy. The company aims for 80% of its garments to be sustainably produced by 2027-28, incorporating organic cotton and adhering to responsible manufacturing practices. Celio is dedicated to environmental impact awareness and has committed to ethical sourcing and production processes.

Momaya further discussed the brand’s recent financial performance, which has been robust despite a challenging market, showing an overall growth of 70% and a 30% increase in profit compared to last year. He emphasised that the brand’s marketing strategy remains a mixture of 65% digital advertising and 35% traditional methods, with innovations like generative AI being utilised to foster consumer engagement.

In sum, Celio’s ambitious roadmap indicates that it is well-positioned to continue its upward trajectory in India’s burgeoning menswear market, balancing growth, sustainability, and a consumer-centric approach.

Source: Noah Wire Services