KDPS PETER ENGLAND RED - Business Presentation
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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
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
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: 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 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 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
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
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.
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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