Provogue's expansion spree is despite the toll the downturn had taken on premium apparel makers last year and early this year. Provogue, the company, suffered too. Sales grew by just 7 per cent in 2008-09 compared to 29 per cent in the previous year.
Operating profit in the first quarter of this year was down 500 basis points over the year-ago period. The company has, however, been quick to correct its course by reducing the size of the new exclusive stores. From 10,000 square feet large stores, it is now content with 800-2,000 square feet spaces.
Pinakiranjan Mishra, partner and national leader (retail and consumer products), Ernst and Young, observes, "The tough year has made apparel brands relook at their positioning." For Provogue, Roshan's endorsement will help it in the task.
Provogue's deputy managing director Salil Chaturvedi says, "The change is in line with our strategy to avoid brand fatigue and Hrithik Roshan is the perfect icon to make our image contemporary." In any case, a change was due in line with Provogue's strategy of roping in a new brand ambassador every third year.
Analysts agree. "It is a must for a lifestyle brand to keep rejuvenating itself. Provogue seems to have perfected the art in not letting the brand ambassador become larger than the brand and refreshing the brand by changing the ambassadors from time to time," says Nikhil Vora, managing director, IDFC-SSKI.
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