Mumbai, 21 January 2016
Mahindra Retail, a part of the $16.9 billion Mahindra Group, will sell products of US kidswear firm Carter’s Inc. in its chain of BabyOye stores across India and online, the company said on Wednesday.
This will be Atlanta-based Carter’s third attempt at establishing itself in the Indian kidswear market.
Mahindra Retail plans to open 40 so-called shop-in-shop BabyOye stores—where a brand owner or retailer takes space in another retailer’s store—in 15 cities across India in 2016.
In the past, the OshKosh B’gosh kidswear brand, which Carter acquired globally in 2005, tried to make inroads in the Indian markets, first in the 1990s and then in 2008.
“With OshKosh B’gosh it had adopted a premium positioning which did not work in India as kidswear is a competitive segment with well entrenched local players,” said Devangshu Dutta, chief executive officer, Third Eyesight, a retail consultancy firm. According to him, getting the pricing and product right is important in this segment.
Now, Mahindra Retail and Carter’s have entered into a buy and sell arrangement. However, the two companies are looking at partnering beyond the agreement to create the look and feel of the Carter’s retail experience in India, said Prakash Wakankar, chief executive officer, Mahindra Retail.
Also with this partnership Carter’s is hoping to make the brand accessible to India. “We don’t anticipate any pricing discrepancy. We plan to make the brand accessible and have great value offering,” said Keving Corning, Carter’s executive vice-president (international). He did not rule out the possibility of bringing OshKosh B’gosh back to the Indian market in the future.
The Carter’s range will start at Rs.600 and go up to Rs.2,500 and will be available for the just born to 24-month-old toddlers in the brick and mortar stores. Online the company will have products for up to seven-year-olds.
(Published in Mint)