THE BURGEONING INNER WEAR MARKETS OF TAMIL NADU IS GOOD NEWS FOR THE ENTIRE VALUE CHAIN. YES BUSINESS IS THERE TO BE GOT, BUT IS THE SUPPLY SIDE READY TO MEET THIS GROWING DEMAND? PRODUCT AVAILABILITY AND DISTRIBUTION IS CRITICAL TO ENSURE THAT BRANDS AND RETAILERS ARE ABLE TO TAKE MAXIMUM ADVANTAGE OF THE EMERGING OPPORTUNITIES.
Inner Secrets spoke with Mr. Vikash Rathi of Rathi & Rathi, a prominent distributor of intimate apparel based in Chennai, to get a handle on the current market scenario, potential for growth, consumer trends, and demand-supply issues.
When Mr. Ashok Rathi, a doyen in the intimate wear industry, started his distribution business, it was from a 200 square feet warehouse, with a clutch of products, a capital investment of Rs. 50,000 and a measly profit margin of 3 percent, which was considered average at that time. 40 years on, Rathi & Rathi rides on an impeccable reputation in the industry which has been built on strong business ethics and sheer hard work.
The intimate wear has come a long way over the years, riding the crest of ever increasing consumer demand.
“This evolution has been gradual but steady and marked by regular structural changes at critical stages that have brought this segment into the organized fold,” recalls Mr. Ashok Rathi, adding “We haven’t reached the summit yet, which keeps this segment an interesting one to be in, in terms of business.”
Vikash Rathi, armed with a Business Management Degree in Marketing, joined his father’s business 12 years back. At that time it became imperative that Rathi & Rathi needed augment and streamline its operations in order to keep pace with market growth and to achieve its own turnover objectives. Retail infrastructure in Chennai was modernizing and growing at a fast clip to meet increasing consumer demand. All this meant that the company to deploy technology to make the business process-driven and cost-competitive. Both these objectives have been successfully met. “It has been challenging but highly rewarding,” avers Vikash.
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