U.S. Polo Assn. reports impressive sales growth in India, positioning the country as a key market, while planning to expand globally by 2025.
U.S. Polo Assn., an influential player in the global apparel market, is seeing substantial growth within the Indian market, currently one of its three largest markets alongside the United States and Turkey. The brand’s retail sales in India have surged from $1.3 billion to $2.6 billion over the past five years. J. Michael Prince, the president and CEO of U.S. Polo Assn., remarked to ETRetail, “India is our fastest-growing market and has the potential to become our largest market many years from now. The growth here is outpacing both the U.S. and Turkey on an annual basis.”
The brand has established itself firmly in India with a valuation of Rs 2,000 crore. This expansion can be attributed to a combination of increased retail presence, consistent double-digit growth in like-to-like sales, and a significant contribution from online sales, which accounts for over 25% of the total. Currently, U.S. Polo Assn. operates 450 stores across the country, planning to maintain a compound annual growth rate (CAGR) of 15% by opening 60 to 70 new stores each year, according to Shailesh Chaturvedi, the managing director of Arvind Fashions Ltd.
The brand’s flagship stores, which currently total 15, are set to increase to 40 in the next two years. These stores generally occupy 4,000 square feet, while the size of regular stores will expand from 1,500 square feet to 2,000 square feet. The growth is further supported by adjacent categories, which contribute approximately 20% of the business and are outpacing core brand growth. Specifically, the footwear segment, valued at Rs 300 crore, is expected to reach Rs 500 crore soon, and the kidswear segment, currently at Rs 200 crore, is projected to double within the next three to four years.
Prince highlighted the brand’s global standings, noting, “Globally, we have been doing a $500 million business of kids’ wear and footwear is a $400 million business.” He further identified a potential opportunity of $100 million in various segments including women’s apparel and handbags. To bolster local production, U.S. Polo Assn. plans to manufacture footwear in India, adhering to the government’s Bureau of Indian Standards (BIS) compliance requirements. This segment, which has grown at more than 20% CAGR, is expected to sustain its growth trajectory.
In terms of sales strategy, the company is reinforcing its omnichannel approach, with 8-10% of its revenue derived from this channel. Amitabh Suri, CEO of U.S. Polo Assn., discussed the promising results from a quick commerce model, revealing they have sold approximately 200 polo T-shirts and 50 pairs of shoes daily, often at lower discounts than traditional e-commerce platforms.
Looking forward, U.S. Polo Assn. plans to enhance its investment levels to sustain momentum. The brand also intends to increase its advertising spending. Additionally, Prince announced future global expansion plans, stating that U.S. Polo Assn. will enter new markets including Brazil, Argentina, Poland, and Australia by 2025.
Source: Noah Wire Services
