Bombay Dyeing plays to the gallery
By Mohini Bhatnagar | 27 Sep 2001
Mumbai: Bombay Dyeing, a name associated with premium-priced textile goods, is planning to tap the popular market. In a few months time, a series of low-end products with the Bombay Dyeing tag will target middle-income consumers.
Bombay Dyeing has always been known for its wide collection of textile goods, ranging from flowery bed linen to towels - all positioned in the premium end of the market.
With Bombay Dyeing positioning its products at the upper end, most middle-income consumers had no option but to seek out cheaper and more suitable alternatives. This alternative came in the form of an unorganised market, which offered untaxed cheaper goods. Over the years, the unorganised or grey market has grown in size and started to make a dent in the fortunes of a company like Bombay Dyeing.
The Indian home textile market - bed, bath and kitchen linen - is worth Rs1, 800 crore, according to the findings of global retail consultants KSA Technopak. Of that, the bed linen segment accounts for 55 per cent, while the share of bath and kitchen linen is 40 and 5 per cent respectively.
A major portion of the market is dominated by unorganised players where branding is nearly nonexistent. The only exception is Bombay Dyeing, which commands a good brand recall.
Realising that the Bombay Dyeing brand has a good recall in the minds of consumers, the company is all set to exploit its plus points. It is also out to break the perception that its products are costly and expensive.
Bombay Dyeing CEO (domestic operations) P Nag says his company is planning to make its products available at an affordable price, guarantee quality and also to make the products available at every nook and cranny of the country.
Thus, by the end of the year 2004, Bombay Dyeing will open at least 1,000 retail outlets across India that will be either owned by the company or will be through franchisees.
At present the company is working on a plan to strengthen the existing retail outlets and launch a host of popular home products, like bed sheets, pillow covers, towels and blankets, all at affordable prices.
In 2000-01, the Bombay Dyeing had a turnover of Rs 1,000 crore, of which the textile business contributed nearly Rs 500 crore.
