KDPS PETER ENGLAND RED - Business Presentation

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KDPS PETER ENGLAND RED - Business Presentation
PETER ENGLAND RED
                        KDPS
                        Lifestyle
Business Presentation
KDPS PETER ENGLAND RED - Business Presentation
Peter England RED at the bottom of ABFRL Pyramid

         Luxury                                         KDPS
                                                        Lifestyle

          Super
         Premium

         Premium

           Sub
         Premium                  Series BLUE

          Mass /
           Fast
         Fashion
                                           Series RED

          Value
         Fashion
KDPS PETER ENGLAND RED - Business Presentation
PE: Largest selling Menswear brand in India

                                       Series BLUE
                                                                     KDPS
                                                                     Lifestyle
                          SINCE 1997 IN INDIA

      20+
                      TIER- 1 & 2                               Brand outlets &
      Product      location Across                   Customer
     Categories                                         Base    3000+     MBOs
                     INDIA

                                       Series RED

                          SINCE 2018 IN INDIA

      20+              250                                          250
                     Tier- 3 & 4                     Customer       Brand
       Product      location in                        base
      Categories                                                   outlets

                   just   6   states
KDPS PETER ENGLAND RED - Business Presentation
Acceptance of PE-RED by Tier-3&4 Towns & retailers

                                                                 700
                                                                            KDPS
                                                                            Lifestyle

                                           300

                                300 new stores by 2020

                                Bihar-Jharkhand,
 Store

                                Madhya Pradesh – Chattisgarh &
                                Andhra Pradesh - Telangana
                        100

                 50

          1

         April   Nov      FY               FY                    FY 2021
         2018    2018    2019             2020                   Planning
KDPS PETER ENGLAND RED - Business Presentation
KDPS: No. 1 Master Franchisee of PE-RED in India

                                                                                                     KDPS
                                                                                                     Lifestyle
                EVOLUTION                                   RECOGNITION                              TURNOVER

•   Started apparel retail operation in      •   Bihar/Jharkhand/ Uttar          •   Gross revenue of INR 100 cr.
    2010 and later expanded into master          Pradesh’s fastest growing           for FY 2019-20
    franchisee business 2015.                    Master franchisee in apparel
                                                 industry                        •   500+ Solid retailer /
•   Currently, leading retailer & fastest                                            franchisee investor base in
    growing Master franchisee                •   Provides a one stop                 Tier-3 & Tier-4 cities in Bihar
    business. Rich experience of                 profitable consignment retail       /Jharkhand/ UP
    working with reputed brands like             store business model for all
    Aditya Birla, Peter England, Rangriti,       categories like menswear,       •   200+ stores in different
    COBB, Style Play, Lee, Arrow &               womenswear, kidswear,               phases of operations, fit out
    Prapti.                                      Ethnicwear, luggage.                and pipelines

•   In 8 months, KDPS became No.1            •   Became No.1 MF of Peter
    master franchisee out of 53 existing         England RED across India by
    MFs for Peter England RED by                 Aditya Birla Group.
    Aditya Birla Group across India.
                                             •   Became No.1 MF of COBB
•   KDPS created a record of opening             across India by COBB
    maximum stores (35) within a year            apparels.
    of commencing COBB MF business .
                                             •   Also, successfully running
•   Grown to a BD team strength of over          MBOs carrying all categories
    20 employees.
KDPS PETER ENGLAND RED - Business Presentation
KDPS PE-RED EBOs Bihar in last 8 months

                                                                                                  KDPS
                                                                                                  Lifestyle

                                         Masaurhi
                                         Mokama            Samastipur
                       Piro                                Rosera
                                         Barh
                       Jagdishpur
             Dumraon
                                                    Sheikhpura
   Bhabua                                           Barbigha
   Mohania                                                                            Barahat
                                                                         Jamalpur
                                                                                      Kahalgaon
                                     Jehanabad
         Sasaram
         Dehri On Sone      Aurangabad                                        Banka
         Bikramganj         Daudnagar
                                                                 Jamui
KDPS PETER ENGLAND RED - Business Presentation
KDPS PE-RED EBOs Jharkhand in last 8 months

                                                                    Sahibganj
                                                                                KDPS
                                                                                Lifestyle
                                                      Godda

                             Hazaribagh        Madhupur
           Garhwa

                                                          Jamtara
               Latehar
                                          Bokaro
                                          Chas
                         Lohardaga
                             Ratu Road               Jugsalai
                             Singhmore               Ghamaria
                     Gumla                           Saraikela Khursawan

                                          Chaibasa
KDPS PETER ENGLAND RED - Business Presentation
Why Tier-3 & 4 towns are attractive market ?

                                                                                                   KDPS
                                                                                                   Lifestyle

Growing incomes, high
disposable incomes                      Increasing brand awareness                High fashion aspirations
Most income earners in Tier 3                                                     Penetration of media, rising
                                        Rapid growth of e-com and display of
& 4 are below 5 lakh per                                                          awareness and availability of
                                        same content across the country is
annum and which is under tax                                                      information, people are getting more
                                        helping customers in Tier 3&4 to keep
free slab , hence have high                                                       aspirational in their fashion choices,
                                        pace in fashion with their counterparts
disposable income                                                                 PE-RED model helps them meet their
                                        in metro.
                                                                                  aspirational choices.

High Population equipped                Low real estate cost
with Smartphone                                                                   Broad product range
                                        Adds to profitability                     and value for money
Census 2011, about 68.84 per cent       Real estate costs in these markets        Broad line-up of products as well
of the country’s population lives in    are more than 50% per cent lower          as customized products at value
the rural areas, which certainly        than those in metros and Tier-1           for money price range to suit their
explains the kind of impact it has on   cities, which makes this business         aspirational needs and their local
the Indian economy                      very profitable                           life preferences
KDPS PETER ENGLAND RED - Business Presentation
Why PE-RED model so attractive to retailers in tier-3&4 ?

                                                                                                               KDPS
                                                                                                              Lifestyle
                                               PROFITABLE BUSINESS                      EASE OF BUSINESS
RISK FREE, SAFE & SOUND
                                              •Very sound Return on Investment          • Branded, Professional, air-conditioned
•Backing of a strong, large & honest
business group Aditya Birla                   •No capital stuck in purchasing           showroom at very low investment
                                              inventory                                 •Once in a life time and refundable stock
•No multi-channel conflict, sells thru EBOs
                                                                                        deposit for non-stop stock supply
only, one store in one market                 •Interest paid (8%) on Stock deposit      •Automatic Refill of sold stocks for life
•No dead stock risk                           •Ease in payment collection & timely      time thru internet billing
•No Customer return risk                      receipt of commission payments            •Complete range on display since no risk
•No GST liability
•Strong pull of PE brand
•No day to day management required

                                                                                        We work together
                                              Broad range, value price                  •Area retail manager support by PE & KDPS for
Marketing before launch
                                                                                        Commercial monitoring
•Very aggressive &  360°                      •More than 20+ stylish product            • Regular Analysis & Review of shop
Marketing & Advertisement                     categories in value for money price       management indicators.
Support worth 4-5 lakh by Peter               range, more than 80% products below       •Daily display audit /VM / matching outfit
England team, includes hoarding,                                                        guidance Support by Peter England & Master
banners, Toto, newspaper inserts,             1000 price points, starts from socks at   Franchisee
LED van, e-ricksaw ads, activities in         99 to maximum of 1699 for shoes           •Monthly surprise Stock audit check to stop
institutes                                                                              theft & shortage.
KDPS PETER ENGLAND RED - Business Presentation
Why PE-RED model so attractive to retailers in tier-3&4 ?

                                                                                                               KDPS
                                                                                                               Lifestyle

  Training support                                                                       Transportation free of cost
                                           Market feasibility study
 •Training to the franchisee on the        •Before each store finalization Peter         •Automatic replenishment.
 management of the business                England team analyse the store                Management of the transport of
 •Training to staffs about sales,          potential taking into consideration all       merchandise, both the initial delivery,
 procedures, operations, visual            variables (location, customer catchment       as well as the replenishments.
 merchandising and window dressing         area, footfall, competitors etc.)             Replacement pick up is also free of cost.

  Product planning with                     Software & IT support free
  franchisee
                                                                                        Showroom Design uniformity
                                            • Online Point of sale / Billing software   • Detailed drawing, merchandise
 •Before each store launch Peter England    free of cost by PE team
 team together with Franchisee plan                                                     elevation, façade and signage drawing
                                            • Centralised systems strong data           provided by Company vendor at
 about merchandise to be placed in          visibility to all partners in value chain
 showroom taking into consideration all                                                 nominal cost to keep all the brand
                                            • 365 days Free IT support from PE          franchise store look & feel same across
 variables (location, customer catchment    technicians for the shop management
 area, competitors etc.)                                                                India to keep uniformity in franchise
                                            software.                                   stores across India.
PE-RED Product categories (Exclusive Menswear)

TOP WEAR
Shirts
                    ACCESSORIES
                    Ties
                                      LAYERS
                                      Suits
                                                            SPECIAL SIZES
                                                            Jeans 28,30 ,32 & Above
                                                                                      KDPS
T-shirts            Belts             Blazers
                                      Sweatshirts
                                                            Shirts 44 & Above
                                                            T-Shirts XXL & Above
                                                                                      Lifestyle
                    Wallets
BOTTOM WEAR         Sunglasses        Jackets               Bottomwear 38 & Above
Underwear           Pocket Square     Sweaters
Trousers & Chinos   Combo Pack        Pull overs            SPECIAL STYLE
Jeans               Cravat                                  Pleated Trousers
Shorts
                    FOOTWEAR
SETS                Formal
Ethnic              Casual
Loungewear          Business Casual

                                                    Model Store: Peter England RED, Jamui, Bihar
Aggressive Advertisement Campaign

                                    KDPS
                                    Lifestyle
Aggressive Advertisement Campaign

                                    KDPS
                                    Lifestyle
Opening Day Sales Figure of PE-RED

                                     KDPS
                                     Lifestyle

               AVERAGE
               OPENING DAY
               SALES OF 250
               STORES IN INDIA
               IS MORE THAN

               2.4
               LAKH/First
               Day
Adv Campaign-Masaurhi Launch Case Study

                            Opening 07th Mar’20 -Masaurhi                     KDPS
                                                                              Lifestyle

                    07th Mar’20

                            3,03,938
      08th Mar’20

                1,50,284                   • Invitation Card Distributed-10000 pcs
09th Mar’20                                • Newspaper Inserts/Pamphlets – 5000 pcs
              79,231                       • 2 Toto – with 2x2 hoardings & announcement
                                           • 150 Toto with 2x2 hoardings
                                           • 15 Paid Hoardings 10 x10
                                           • 20 seconds Advertisement on local cable TV
                                           • Press Invited and news printed in newspaper
                                           • College & Institutional activities extensively
                                           • VIP invited for inauguration
Success Stories : JAMUI, BIHAR
                 RETURN ON INVESTMENT (ROI) BASED ON FIRST 3 MONTHS SALES FIGURES

                             ROI                                                     KDPS
                                                                                     Lifestyle
AVG SALE PER MONTH :
                             77%
11,68,391
AVG COMMISSION EARNED /MONTH
                                                                               INVESTMENT IN STOCKS:

2,92,098                                                                                15,12,000
                                                                    COST
INTEREST EARNED/YEAR                                                                   INVESTMENT IN

1,20,960                                                               -                   INTERIOR:
                                                                                        19,53,000
TOTAL INCOME EARNED
                             BENEFITS
AFTER EXPENSES /YEAR             +                                                     YEARLY STORE
                                                                                           EXPENSE

26,66,133                                                                                9,60,000

                                                                           I am so happy with ROI
Profile: Sujit Kumar
                                                                              that I am opening
Other business: Jewelry
                                                                               another store in
Age: 35 Years                                                              Lakhisarai , Bihar before
Education: MBA                                                                    July 2020
Success Stories : SAMASTIPUR, BIHAR
                 RETURN ON INVESTMENT (ROI) BASED ON FIRST 3 MONTHS SALES FIGURES

                               ROI                                                  KDPS
                                                                                    Lifestyle
AVG SALE PER MONTH :

11,05,161
                           122%
AVG COMMISSION EARNED /MONTH
                                                                               INVESTMENT IN STOCKS:

2,76,290                                                                                 7,80,000
                                                                    COST
INTEREST EARNED/YEAR                                                                   INVESTMENT IN

62,400                                                                 -                   INTERIOR:
                                                                                       10,07,500
TOTAL INCOME EARNED
                             BENEFITS
AFTER EXPENSES /YEAR             +                                                     YEARLY STORE
                                                                                           EXPENSE

21,77,884                                                                              12,00,000

Profile: Ajay Kr. Poddar                                                   I am so happy with ROI
Other business: Clothing Store                                               that I am planning to
Age: 45Years                                                                  extend my store to
Education: Graduate                                                          another floor, before
                                                                                    July 2020
Success Stories : SAHIBGANJ, JHARKHAND
                 RETURN ON INVESTMENT (ROI) BASED ON FIRST 3 MONTHS SALES FIGURES

                               ROI                                                  KDPS
AVG SALE PER MONTH :

9,12,281
                           81%                                                      Lifestyle

AVG COMMISSION EARNED /MONTH
                                                                               INVESTMENT IN STOCKS:

2,28,070                                                                               10,69,200
                                                                    COST
INTEREST EARNED/YEAR                                                                   INVESTMENT IN

70,000                                                                 -                   INTERIOR:
                                                                                       13,81,050
TOTAL INCOME EARNED
                             BENEFITS
AFTER EXPENSES /YEAR             +                                                     YEARLY STORE
                                                                                           EXPENSE

19,82,379                                                                                8,40,000

Profile: KPDS
Other business: Clothing Store                                             Very happy with results
Age: NA                                                                       and would further
Education: NA                                                               expands in this region.
Success Stories : MADHUPUR , JHARKHAND
                 RETURN ON INVESTMENT (ROI) BASED ON FIRST 3 MONTHS SALES FIGURES

                               ROI                                                   KDPS
AVG SALE PER MONTH :

8,79,553
                           72%                                                       Lifestyle

AVG COMMISSION EARNED /MONTH
                                                                                INVESTMENT IN STOCKS:

2,19,888                                                                                11,88,000
                                                                    COST
INTEREST EARNED/YEAR                                                                    INVESTMENT IN

95,040                                                                 -                    INTERIOR:
                                                                                        15,34,500
TOTAL INCOME EARNED
                             BENEFITS
AFTER EXPENSES /YEAR             +                                                      YEARLY STORE
                                                                                            EXPENSE

19,53,699                                                                                 7,80,000

                                                                             I am very happy with
Profile: Abhishek Gutgutia                                                   results of both of my
Other business: Clothing Store                                             stores at Madhupur and
Age: 42                                                                       Jamtara, Jharkhand,
Education: Graduate                                                         would open 3rd store in
                                                                               Giridih, Jharkhand
Success Stories : BHANGEL, UTTAR PRADESH
                 RETURN ON INVESTMENT (ROI) BASED ON FIRST 3 MONTHS SALES FIGURES

                               ROI                                                  KDPS
AVG SALE PER MONTH :

8,25,667
                           70%                                                      Lifestyle

AVG COMMISSION EARNED /MONTH
                                                                              INVESTMENT IN STOCKS:

2,06,416                                                                                9,96,410
                                                                    COST
INTEREST EARNED/YEAR                                                                  INVESTMENT IN

79,713                                                                 -                  INTERIOR:
                                                                                      12,87,029
TOTAL INCOME EARNED
                             BENEFITS
AFTER EXPENSES /YEAR             +                                                    YEARLY STORE
                                                                                          EXPENSE

15,96,715                                                                               9,60,000

Profile: KDPS                                                           We are very happy with
Other business: Clothing Store                                            results of Bhangel,
Age: NA                                                                  Noida store and we
Education: NA                                                           would expand further in
                                                                              Delhi/NCR.
Franchise Terms & conditions
                                     Peter England Red- Term Sheet
                                                                                                              KDPS
                                     FOFO Mode(Franchisee Owned Franchisee Operated)
                                                                                                               Lifestyle
       Contract Period                    Franchise Type                                    Mode
          5 years                        Unit Single Store                   Franchisee owned Franchisee operated
                                                Requirements for Store
         Carpet area                          Frontage                                            Location
     850 SFT and Above                   16 Feet and Above                    Prosperous commercial area / High Streets and Malls
                                                              Fees
                         Fee Items                                   Amount               Payment Period              Commission
                                                                                               Commissions
1 Confirmation deposit                                        INR 200,000 One-Time, Refundable    are

2 Security Deposit for Stock                                 INR 1200/ sqft One-Time, Refundable
                                                                                        Annually, Simple
                                                                                                                   25%
3 Interest on Security Deposit                                  8% P.A                      Interest               on Net Sales
                                                              INR 35000 +                One-Time, Non             Value (Value
4 Architect Visit and Drawings                                                            Refundable                 Realised
                                                                 Taxes
                                                                                                                      after
    Estimated Approx. Price of All Fit-out include                                                                  reducing
    Interiors, Lights-AC, Façade, Mannequins , INR 1550/ sqft                                                       Discounts
                                                                                         One-Time, Non
5   Hangers, IT System, External Signage and ACP   + Taxes                                Refundable               +Taxes from
    Work etc)Doesn’t not include landlord scope
                                                                                                                      MRP)
    of work like Tiling, Glazing
How business of Peter England RED showroom works ?

 Goods
Movement
                                                                             KDPS
                                                                             Lifestyle
                  GST                          GST          Sold
                Brand                     Retailer
           (Peter England )           (Peter England)
                                                                       Return to Peter
                                                           Un-sold
                                                                          England

                                                          Manages

                              Gives Security
              Gets 8%         Deposit to PE
           Interest yearly
                                                         Franchisee
      Pays 25% of Net Sales
      Value monthly

                                                                         EDC Machine
                                                                      connected to PE Bank
                                                                              A/c
                Brand                      Retailer
                                                            Sold
           (Peter England )            (Peter England)
                                                                        Day to Day Cash
                                                                      collection by PE Cash
 Payment                                                                       Van
Movement                                                  Manages
Franchising Process
                                                                                 KDPS
                                                                                 Lifestyle

                                        Investment
                                       capacity of SF

                        Master            Market                                     Property &
     Sub                                                       Peter England
                      Franchisee         Feasibility                                   Market
Franchisee (SF)                                                  Team(PE)            Evaluation
                         (MF)              Study

                                          Suitable
                                       Property of SF

                  Staff Training                                                     Architect
                                    Interior                                          visit to
                                   Decoration                                        property

Showroom
  Launch                               Stock               GST           Franchise
                                   Arrangement          Application     Agreement
                   Marketing &
                  Advertisement
Frequently Asked Questions ?
                                                                                                    KDPS
                                                                                                    Lifestyle

How much does franchisee need to invest ?
  • Security Deposit 1200 per sqft, 8% Interest on investment , Interior Decoration 1550 per sqft

What are franchisee responsibility ?
  • Take care of sales staff’s behavior and proper display of merchandise, overall management

Who takes care of Stock, GST, Returns ?
  • It’s Peter England’s liability but you have to assist PE in timely management of all of them.

Will there be another Showroom in same locality ?
  • No, there will be no PE RED Showroom in the same market.

Does PE RED sell thru online channel ?
  • No, PE RED only sells thru exclusive PE Showrooms.

Can I open PE RED Showroom in main district town ?
  • Currently PE RED is only opening in Tier-3, Tier-4 areas, Pls check with PE if you can open PE Showroom in your
    area.
Frequently Asked Questions ?
                                                                                        KDPS
                                                                                         Lifestyle
 Who takes care of day to day payments ?
  • Credit/Debit card payments automatically goes to PE Bank A/c, day to day cash collection by PE
    Cash van
 Who will provide staffs to sell in Showroom ?
  • Staffs will be hired by Franchisee, PE will provide training to staffs

 Before launch of Showroom, who will take care of advertisement of Showroom ?
  • PE spends around 4-5 lakh in marketing & advertisement of Showroom before launch of
    Showroom.
 What is the suitable property for PE RED Showroom ?
  • A property on ground floor in prime area of 1000 sqft with front size of 25 ft is an ideal
    property.
 How this PE RED model is different from competition ?
  • It’s unique because of Consignment model, where franchisee has no liability of Stock, GST,
    payments, discounts, advertisement etc. also gets 8% return on security deposit against stock.
    No online competition because it sells only thru exclusive PE Showroom.
Frequently Asked Questions ?
                                                                                              KDPS
                                                                                              Lifestyle

How much stock do I get against security deposit ?
 • You will get stock in your PE RED Showroom equal to 3-4 times of security deposit to PE.

What kind of items will be sold thru my PE Showroom ?
 • Complete menswear range from head to toe of all age groups including shirts, trousers, denim, t-shirts,
   blazers, shorts, suits, Kurta, cufflinks, tie, handkerchiefs, shoes, wallets, belts etc.
Other brands give more margin than PE RED gives, why ?
 • Other brands offer more margin on buy & sell model, but if un-sold stock, discount sharing, returns, GST
   liability are counted then it’s much less than margin offered by PE RED. Also, an average PE RED
   Showrooms sells 2-3 times more than other brands in same area.

Can I open PE RED Showroom on first floor ? Or Back side ? Under Ground ? 2 floors ?
 • No, PE property evaluation team will reject the proposal for Showroom on first floor or basement or back
   side, however 2 floors including ground and first with a total of 1000 sqft is a suitable property.
What kind of advertising/marketing activities PE RED do before launch of Showroom ?
 • Media hoardings across town, Cinema screens, Newspaper inserts, door-to-door invites, announcement
   autos, LED vans, tuk-tuks, e-ricksaws, television ads, etc.
Frequently Asked Questions ?
                                                                                    KDPS
                                                                                     Lifestyle

Why can’t I deposit day to day cash collection in my account first and then
deposit to PE monthly ?
 • Since, it’s consignment Showroom of PE RED with GST retail invoice raised by PE, therefore cash
   must be deposited to same company i.e, PE which has raised the invoice.

I think the sale potential of my locality is not more than 5 lakh per month,
can I open Showroom ?
 • As of today, all India average of 250 PE-RED Showroom is already more than 8 lakh. If PE team
   feels this locality has potential below 5 lakh per month then they will not agree to open
   Showroom.

Why PE thinks they can sell 8 lakh on an average per Showroom from my
locality ?
 • As of today, all India average of 250 PE-RED Showroom is already more than 8 lakh. If PE RED has
   chosen your area to do a franchise Showroom, it means their team along with reputed
   consulting companies have done extensive ground work on consumer behavior thru interaction,
   supply & demand analysis, fashion demand analysis of your locality and know the potential.
KDPS Core Team
                                             KDPS
                    Management team          Lifestyle

                 Business Development team

                 Project & Operations team
Contact Us
                                                              KDPS
                                                              Lifestyle

         For assistance, please feel free to contact us:

                     KDPS Lifestyle Private Limited
                           Ramgati complex,
                       Shastri Nagar Market Rd,
             Nand Gaon, Rajbansi Nagar, Patna, Bihar 800023
                             Vijay Dev
                     9911106041 / 9711116041
                      www.kdpslifestyle.com
                     kdpslifestyle@gmail.com
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