John Miller steps out of Pantaloon's shadow

Mumbai: The Future Group has decided to end its strategy of in-store brands by allowing its 15-odd in-store brands comprising apparel and non-apparel labels, which were owned by Pantaloon Retail India, to be moved under the wing of Future Brands. Effectively that allows these in-store labels to retail at stores not part of the company's distribution network.

Now, exclusive Future Group brands such as John Miller, Bare and Buffalo, DJ&C, Ajile and Rig, Umm, Koryo, Sensei and Greenline will find their way to the market, on retail shelves other than those inside the Future Group's retail chains.

The moves represents a change in strategy at Future Group, where it is graduating from its strengths in distribution and marketing, and expanding to strong, domestic brands. Now that these brands are out of their distribution stable, they can take on a life of their own, and follow their own growth cycle, evolving into stronger national brands, say industry sources.

Its strategy is indicative of the group's shift in focus from retail and distribution network, to creating higher margins and servicing price points aggressively, in an attempt to create value through brands. Reports indicate that as a follow up to this strategy, Future Brands, after unleashing its in-house brands into a wider market, will at a later point, start launching brands across the country, independently. 

Menswear brand John Miller, will now compete with other brands on the shelves of multi-brand outlets. According to industry sources, if these brands were to continue as in-store lables, their value as an asset would remain limited. However, once spun off into independent labels available across retail platforms, they are more likely to beat the typical in-store growth rates of 15 – 20 per cent, and also earn royalties for the company. Industry sources indicate that around Rs10 crore will be spent on brand building for the John Miller brand.