Pepe Jeans unzips big plans for India

MUMBAI: Pepe Jeans London has laid out its expansion plans for India which will commence within the next few months.

Launched in 1989 in the country, Pepe Jeans currently has a 25% market share in the premium jeans and casual wear segment, which makes up 15-20% of the Rs 2,000 crore denim market.

Vicente Castellano, licensees & international director, Pepe Jeans International, describes India as one of the three largest and fastest growing markets worldwide for Pepe Jeans.

“Pepe is competing with European brands. Since none of the major ones like Ms Sixty and Diesel are here or have a strong position in the market as yet, it is a good time for Pepe to form a strategy to expand its own market share as well as target new customers,” says Castellano.

Wanting to cash in on the “big changes in the market in the next few years”, Castellano sees Pepe targeting a new set of consumers. “Though we will stick to our old target group of 23-26 year-olds, we also want to draw in the younger crowd.”

To do this, they will be opening up a minimum of 90 and a maximum of 110 stand-alone stores across India. Offering a “younger and more hip-shopping experience, Pepe has already opened two of its new concept stores, one in Bangalore and another in Mumbai, to a positive response,” says Castellano.

But Pepe is no longer just about jeans and apparel. Castellano plans to bring in accessories and shoes; along with PUIC, the international global distribution licence holders for brands like Caroline Herrera and Paco Rabanne. They will be bringing these names to India and distributing accessories such as sunglasses in the market. Castellano also adds that they will be bringing in shoes in to the India market within the next year.

Pepe Jeans has always been positioned as an international brand, with its campaigns and ambassadors always being international models and football players shot in foreign locations. Castellano says, “As we get deeper into the local market, there might be a need to localise our advertising. Thus, we will be looking at possibly tying up with a brand ambassador who would have to reflect the values of our brand while also providing it with some local flavour.” But Pepe will continue to have its worldwide campaigns released here in India as well, to maintain consistency with its international look and association.

At present Pepe is a $500 million dollar denim and casual wear label in Europe, with a presence in over 80 countries. In India the denim market is growing at roughly 15% annually. However, according to Castellano, since Pepe is seeing a 30%-40% annual growth, it makes India one of the most lucrative markets for the company. Currently Pepe has 45 stand-alone stores, 55+ plus large format store locations, and 1,200 multi-brand premium outlets across the country.