French Clothing Brand, Gemo Entering India with Product Range of 12€ only

Sneha Santra
Sneha Santra Jul 04 2019 - 4 min read
French Clothing Brand, Gemo Entering India with Product Range of 12€ only
In conversation with Franchise India, Julia Decarsin, International Development Manager, Gemo, shares their Indian expansion plans and strategy.

The fashion capital of the world, France, has given the world some of the biggest names like Louis Vuitton, Chanel, Dior, Lacoste, etc.

Many of them have entered the Indian market and are cashing in on India’s love for fashion and luxury. However, most of the brands are in the luxury category making them quite expensive for masses.

But, one of the leading French clothing brands is venturing into India with a product range of average 12€ only.

A specialised retailer in clothing for women, men, children and babies for 30 years, Gémo has been designing and selling shoes, clothes and accessories at an affordable price and that too for the entire family.With more than 5 million customers in France—with nearly 230 stores in France and abroad—Gemo is now looking forward to Indian expansion.

In conversation with Franchise India, Julia Decarsin, International Development Manager, Gemo, shares their Indian expansion plans and strategy.

Cashing in on the USP

The brand takes pride in being the mass market brand, which sells shoes, accessories, bags etc all within an average price of 12.5€, approximately 950-1000 in Indian rupees for the entire family. .

“Our USP is that we provide quality products at cheap prices. Our product quality is similar to that of H&M but lower prices,” said, Julia.

Gemo is known for its values, sustainability and well-being.

“In France, you will find one out of four people wearing Gemo, stating the fact that the brand is highly popular in France.

India holds huge Potential

Julia shared, “We believe GEMO has a huge potential in India as our price and product position could reach both middle and high class. Indeed, our average price is 12.5€ after discount and we have product for the whole family!”

Customising for the Indian market

Gemo is targeting the middle-class demographic in India. “We plan to be the affordable clothing brand here, with prices ranging from 200-299 rupees, which anyone can afford. So everybody could be our customers,” stated, Julia.

However, the brand has something new to offer. They have different concepts like Gemo Kids, which is like a boutique. So, the brand gives you the impression of a refine boutique but at an affordable price.

Indian v/s International market

According to Julia, they have noticed that the positioning and purchasing power between the Indian and international market is not the same.

“There are international brands present in the market like Zara and H&M in India, but no LC Waikiki or Kiabi, which are our major competitors in France. The Indian marketplace environment is based on the local force. So, we have to find good positioning in front of the local market as well as premium brands like Zara,” stated, Julia. 

The brand will conduct a market survey and price analysis to find the best strategy to adopt in India.

Franchise Model

The franchising model of Gemo is a win-win model for both the brand and franchise partners. They sell their products to franchise partners at cost price; there are no margins on those. The brand only takes a fixed percentage of revenue as royalty fees on sales made by the franchisee.

Gémo has a two-store concepts—Gemo Family and Gemo Kids.

For Gemo family, the investment cost would be around 15000 euros with an area requirement of a minimum 700 sq. m. For furniture and fistures, an investment of 200 euros per sq. m, and for stocking up an area of, per se, 600 sq. m., it would require around 80,000 euros.

For GemoKids, the area requirement is 150-300 sq. m. The investment cost would include the furniture and stocks would range from 150-200 Euros.

Future Expansion Plans

The brand is planning to open a minimum of 50 stores because the kid's store has major potential. They would like to start with 5 stores for the first year and increase to 10 stores by the second and third year. 

The brand is looking for a master franchise partner who could open minimum of 20 stores in India in 5 years.

“We know the potential of India and with both family and kids’ formats, and we feel that we could easily open 20 stores. We are ready to give exclusivity on the online and offline market,” said, Julia.

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