V2Retail's value fashion play

THE RETAILER IS FOCUSED ON THE ₹300 - ₹500 RANGE

- Akash Agarwal

V2Retail is in a sweet spot. Value fashion is in demand, footfalls are growing, and there aren't too many quality retailers around. Business has been brisk for the Delhi-headquartered brick and mortar chain, which competes with V-Mart and Azaar Kolkata. Revenues are tipped to hit ₹1,800 crore this year, a 55% jump over the sales posted in 2023-24. With an estimated 30,000 customers walking into its stores every day and a conversion rate of 35%, it could be a repeat in 2025-26.

The competitive intensity in the value fashion space, especially in the mid and lower ranges, where the average selling price is ₹300-500, is high. Moreover, the large share of the unorganized players, of about 50%, has forced V2Retail to play the price game. Almost all its revenues are earned from bigger volumes. In fact, whole-time director, Akash Agarwal says the company's mark-ups, over the cost, are among the lowest in the market. The retailer had attempted to play both ends of the price curve; it experimented with T-shirts that cost ₹700 and ₹999—but soon gave up and now plays in the ₹200-400 bracket. It had a similar experience with denim products. What it now offers is a relatively large number of 3,100 stock-keeping units (SKUs) with about 70% being changed every 45 days.

The affordable pricing allows the company to sell about 90% of the inventory at the MRP, says Agarwal, adding that the many more options, sizes has also driven up footfalls.