Clovia to open 75 stores; aims 35 pct revenue from offline channel

New Delhi: Online lingerie brand Clovia, aims to open around 75 offline stores across the country by the end of the financial year 2021, a move that will see the brick and mortar channel contributing more than 30 percent to the company's overall revenue, said a top executive of the company.

At the moment Clovia has 12 retail outlets spread across Delhi-NCR, Gujarat and West Bengal and offline contributes to around 20 percent in the online player’s top line.

"By end of this financial year, we will double the number of retail outlets. We aim to continue with the same pace for store expansion for the next couple of years as well. In the next two years we should have around 60-75 stores in the country," said Pankaj Vermani, co-founder and chief executive officer of Clovia.

"At present, around 20 percent of our revenues come from the offline channel which could go as high as 35 percent in the next two years," Vermani further said.

According to Vermani, on the current run-rate basis, the company will post a 90 percent increase in revenue during the ongoing financial year.

The company had posted a revenue of Rs 51.8 crore in 2017-18 and reported a net loss of Rs 8.6 crore during the same period.

The online player which sees tier III market as its biggest and fastest growing market will soon get into maternity and athleisure wear as well. "We are coming up in a huge way in maternity wear and athleisure wear in the next 4 months. We think the category is ready to be explored now."

Clovia is now one of the fastest growing brands in the $4 billion market where the top 10 companies are still holding less than 8% of the market. Lingerie market in India is growing at over 22% CAGR and is expected to be $9 billion in the next four years.

The lingerie retailer is also in talks to start its operations in the Southeast Asian countries like Malaysia and Indonesia, where the brand is expecting good results. The brand is looking for local partners in these markets who can run the business. Vermani did not specify the timeline for this overseas expansion.

Clovia has also set shop outside India, in Nepal. "We will be dedicating resources to build the business in Nepal along with our local partners there. We will continue to grow this business on the back of low-burn, high-ROI,"Vermani had told ET earlier.