Sustainability and ethical practices are integral to our business model
VIP Clothing Ltd. is a prominent Indian company engaged in the manufacturing and marketing of innerwear. The company boasts a diverse portfolio of well-known brands, including VIP Innerwear, Frenchie, Frenchie X, and VIP Feelings, which dominate their respective market segments. Known for its innovation and quality, VIP Clothing Ltd. holds TUV - ISO 9000 certification, reflecting its commitment to excellence.
With a vertically integrated operation from raw material sourcing to finished garments, VIP Clothing Ltd. ensures high standards throughout its production process. The company has an extensive distribution network of 550 dealers and 110,000 retail outlets across India, supported by six regional offices and a dedicated sales force of over 150 individuals.
In an interview with Fibre2Fashion, VIP Clothing’s Chairman & Managing Director Sunil Pathare discusses retail trends, direct-to-consumer model, customer satisfaction, visual merchandising, ethical practices and more.
What are the current trends shaping the fashion and innerwear industry, and how are companies adapting to these changes?
The fashion and innerwear industry is undergoing significant transformation, driven by several key trends that are shaping the market scenario in 2024. Companies are adapting to these changes with innovative strategies to meet evolving consumer demands.
One of the most prominent trends is the emphasis on sustainability. Consumers are increasingly conscious of their environmental footprint, and this shift is influencing their purchasing decisions. Companies are responding by adopting sustainable practices throughout their supply chains. This includes using eco-friendly materials such as organic cotton, recycled fibres, and biodegradable fabrics. Additionally, brands are focusing on transparent and ethical manufacturing processes to ensure fair labour practices and reduce their carbon footprint. This commitment to sustainability not only attracts eco-conscious consumers but also builds brand loyalty and trust.
Another trend reshaping the industry is the rise of technology and digital innovation. From virtual fitting rooms to AI-driven personalisation, technology is enhancing the shopping experience. Companies are leveraging augmented reality (AR) and virtual reality (VR) to allow customers to try on products virtually, providing a more interactive and engaging shopping experience. AI and machine learning algorithms help brands understand customer preferences and offer personalised recommendations, improving customer satisfaction and boosting sales.
Inclusivity and body positivity are also major trends influencing the innerwear market. Consumers are demanding more diverse and inclusive product offerings that cater to different body types, sizes, and skin tones. Brands are expanding their size ranges and creating marketing campaigns that celebrate diversity and promote body confidence. This shift towards inclusivity resonates with a broader audience and reflects a more modern and progressive brand image.
Comfort and functionality remain critical in the innerwear segment. With the rise of remote work and the athleisure trend, consumers are prioritising comfort without compromising on style. Companies are designing innerwear that offers support, flexibility, and breathability, using advanced fabrics and seamless construction techniques.
In response to these trends, companies are also focusing on omni-channel retail strategies. By integrating online and offline channels, brands provide a seamless shopping experience. Features like buy-online-pick-up-in-store (BOPIS), curbside pickup, and easy returns enhance convenience and customer satisfaction.
How is technology, such as AI and IoT, transforming the fashion and innerwear industry, particularly in areas like manufacturing, supply chain management, and customer experience?
Technology, particularly AI and Internet of Things (IoT), is revolutionising the fashion and innerwear industry, bringing transformative changes across manufacturing, supply chain management, and customer experience. These advancements are enabling companies to become more efficient, responsive, and customer-centric.
In manufacturing, AI and IoT are streamlining processes and enhancing productivity. AI-powered systems analyse vast amounts of data to optimise design, production schedules, and quality control. This leads to reduced waste, lower costs, and improved product quality. IoT devices, such as smart sensors, monitor equipment performance in real-time, predicting maintenance needs before failures occur. This proactive approach minimises downtime and ensures consistent production, ultimately leading to a more sustainable and efficient manufacturing process.
Supply chain management is also experiencing a significant transformation due to AI and IoT. AI algorithms analyse historical data and market trends to predict demand more accurately, allowing for better inventory management and reducing the risk of overproduction or stock outs.
IoT devices track products throughout the supply chain, providing real-time visibility into their location and condition. This transparency improves logistics, reduces delays, and ensures that products reach customers in optimal condition. Moreover, blockchain technology, often integrated with IoT, enhances supply chain transparency and traceability, ensuring ethical sourcing and reducing counterfeit risks.
The customer experience in the fashion and innerwear industry is being elevated by AI and IoT in remarkable ways. AI-driven personalisation tools analyse customer preferences and behaviour to offer tailored recommendations, improving satisfaction and loyalty.
Virtual fitting rooms powered by AR and AI allow customers to try on clothes virtually, overcoming one of the major challenges of online shopping. This technology not only enhances the shopping experience but also reduces return rates by helping customers find the perfect fit. IoT-enabled smart textiles and wearables are adding a new dimension to innerwear. These garments can monitor various health metrics, providing users with valuable insights into their well-being. Connected garments can interact with other smart devices, offering a seamless integration of fashion and technology.
What are the most effective sustainability practices being adopted in the fashion and innerwear industry to address environmental concerns?
The fashion and innerwear industry is increasingly embracing sustainable practices to mitigate its environmental impact, leveraging several effective strategies that are gaining momentum.
There is a significant shift towards embracing sustainable materials. Organic cotton, linen, and hemp are gaining popularity due to their reduced water and pesticide requirements compared to conventional cotton. At present, recycled materials such as polyester made from plastic waste are being widely adopted, reducing reliance on virgin resources and diverting waste from landfills.
Minimising waste throughout production is crucial. Smarter design practices, like creating clothes with longevity and employing unisex sizing to reduce inventory variations, are effective in cutting down fabric waste. Brands are also implementing recycling and upcycling techniques for leftover materials, and collaborating closely with suppliers to minimise offcuts.
The circular economy principles are also being actively pursued. Extending a garment’s lifespan through repair services and educating consumers on proper clothing care promotes a circular economy where clothes stay in use longer. Transparency has become an important aspect of sustainability efforts. Consumers are increasingly demanding greater transparency from brands regarding the origin of materials, manufacturing processes, and labour practices. This transparency not only builds trust but also empowers consumers to make informed choices and hold brands accountable for their sustainability claims.
Going forward, innovation will play a crucial role in advancing sustainability in fashion. Innovations such as Tencel, a fabric derived from wood pulp known for its sustainability, and advancements in dyeing processes that use less water and chemicals, are paving the way for a more environmentally friendly industry.
How is the changing consumer behaviour influencing product offerings and marketing strategies of fashion and innerwear companies?
One of the notable shifts is towards sustainability and ethical considerations. Consumers are increasingly prioritising environmentally friendly products and are more conscious of the ethical practices of brands. Fashion and innerwear companies are responding by integrating sustainable materials, such as organic cotton and recycled fibres, into their product lines. They are also adopting transparent supply chain practices and promoting their sustainability efforts in their marketing strategies to appeal to environmentally conscious consumers.
Another significant change is the demand for inclusivity and diversity in product offerings. Consumers are advocating for clothing that caters to a broader range of body sizes, shapes, and skin tones. Fashion brands are expanding their size ranges, introducing adaptive clothing lines, and featuring diverse models in their marketing campaigns. This inclusivity not only reflects societal values but also helps brands connect with a more diverse customer base.
The rise of digitalisation and e-commerce has also reshaped consumer behaviour. Online shopping has become more prevalent, driven by convenience, personalised recommendations, and seamless shopping experiences. Fashion and innerwear companies are enhancing their online platforms, investing in AI-driven algorithms for personalised shopping experiences, and optimising their digital marketing strategies to reach and engage with online consumers effectively.
There is a growing trend towards conscious consumerism and minimalism. Consumers are opting for timeless and versatile pieces over fast fashion trends. This shift is prompting fashion companies to focus on quality over quantity, offer classic designs that transcend seasons, and promote longevity and durability in their product messaging. Brands that emphasise durability and timeless style are resonating well with consumers seeking value and sustainability.
Are there any challenges facing the domestic supply chain, and what strategies are companies using to mitigate these issues?
The domestic supply chain for fashion and innerwear faces several challenges, prompting companies to adopt various strategies to mitigate these issues. One of the significant challenges is disruptions in logistics and transportation. Issues such as delays in shipping, shortages of containers, and fluctuating transportation costs have impacted supply chain efficiency. Companies are addressing these challenges by diversifying their transportation options, using multiple carriers, and renegotiating contracts to secure stable shipping rates.
Another critical issue is inventory management amidst demand fluctuations. With consumer behaviour becoming more unpredictable, companies are grappling with balancing inventory levels to meet varying demands effectively. To mitigate this, many brands are implementing advanced forecasting algorithms powered by AI and machine learning. These algorithms analyse historical data, market trends, and consumer behaviour patterns to predict demand more accurately, thereby optimising inventory levels and reducing the risk of overstock or stock outs.
Sustainability concerns are increasingly influencing supply chain practices. Consumers expect brands to uphold ethical and environmental standards throughout their supply chains. To address this, companies are integrating sustainability into their supplier selection criteria, prioritising partnerships with suppliers that adhere to sustainable practices. This includes sourcing materials responsibly, minimising waste, and promoting fair labour practices. Brands are also investing in transparency and traceability technologies like blockchain to provide consumers with visibility into their supply chain practices.
How has VIP Clothing adapted its strategies to thrive in the digital retail landscape, and what have been the most significant challenges and successes?
E-commerce has fundamentally altered how consumers shop, prompting VIP Clothing Ltd. to adapt and thrive in this rapidly evolving digital world. I have seen firsthand how digital convenience has become a part of our lives, completely transforming retail dynamics and raising consumer expectations. E-commerce has liberated shoppers, offering convenience and accessibility. This shift not only reshapes consumer behaviour but also challenges traditional retail models striving to stay relevant in a digitally driven world.
The increase in online shopping is fuelled by consumer demand for seamless, personalised experiences. At VIP Clothing, we have responded by enhancing our digital platforms with intuitive interfaces and streamlined checkout processes. Innovations like same-day delivery and click-and-collect options cater to diverse customer needs, enhancing convenience. We have also diversified our product range, leveraging data analytics to swiftly adapt to market demands and offer tailored solutions.
Exploring this e-commerce space comes with its share of challenges. Staying agile amidst rapidly changing consumer trends and technological advancements requires continuous innovation. Our successes in e-commerce stem from our proactive stance on industry trends. Adopting omnichannel integration has been pivotal, ensuring a seamless shopping journey across all touchpoints. Embracing social commerce and leveraging AI-driven personalisation have strengthened our customer-centric approach, fostering deeper connections with our audience.
Looking ahead, VIP Clothing remains steadfast in our commitment to sustainability and ethical sourcing. Aligning with growing consumer preferences for environmentally responsible practices, we integrate eco-friendly initiatives into our e-commerce operations. This not only meets regulatory standards but also resonates with customers seeking sustainable fashion choices.
VIP Clothing continues to evolve, leveraging digital platforms to elevate customer experiences and drive sustainable business practices. As we move further, our focus remains on delivering exceptional value and exceeding customer expectations in an increasingly digital-centric world.
What upcoming retail trends do you foresee impacting the innerwear industry, and how are you preparing to capitalise on these trends?
Change is the only constant, and this constant has been moving at the speed of light in the retail business. The leadership at VIP Clothing has identified a few trends that will propel further in the coming years. We have also started preparing to meet these demands and challenges. First and foremost, more and more customers are becoming aware of the effects of the textile industry on the environment. With this awareness, customers will demand planet-friendly fabrics and technologies in all that they use. We are already working towards bridging the gap, although we have been using natural fabrics like cotton for a long time.
Second, customers are increasingly opting for faster deliveries. This demand will only increase the pressure on brands to deliver their goods to the customers more quickly. It could also lead to adapting to the BOPIS system where customers can place their orders online and pick up the product from their nearest store. For us, this translates to enabling our retail stores and inventories to be ready to move goods using the most efficient transportation modes.
Yet another trend that we must all prepare for is integration of Artificial Intelligence in the way we approach our customers, understand their preferences, and recommend them products.
Lastly, in order for customers to exhibit brand loyalty, brands need to create a memorable and unique experience that sets them apart from the competition. This could lead to more interactive and engaging activities conducted within the store premises or enabling a personalised experience online. Such efforts can make customers come back to our brand even when the options are unlimited.
What are the primary challenges VIP Clothing faces in the current retail environment, and what strategies have you implemented to navigate these obstacles?
Challenges that a business faces change from season to season. However, something that I always pride myself on is the grit of my team that is dedicated to overcoming challenges at the earliest. With hybrid work becoming the norm, a common challenge is to avoid being stuck working in silos. To overcome this, we implemented a system where our employees could access the same information as would be required, regardless of their work location. This move is to help all teams understand why we do what we do and be aligned with larger goals.
Another challenge that comes with shopping online and growing options is unsteady and wavering expectations. One cannot be sure of how much people would purchase a product or return for another one. With retail and digital outlets available to consumers, it is becoming a double-edged sword. Our solution to this is to conduct timely analysis of consumer sentiments and buying preferences. We aim to make the process more efficient by practising various inventory management techniques as well.
With our direct-to-consumer model, I would like to believe that we have aced the customer support service. Our teams are diligently working to ensure our customers’ queries and concerns are addressed at the earliest. However, many businesses seem to take a more casual approach to it. Our world is incredibly connected and the word spreads like wildfire. This is one challenge that, I believe, no brand should keep for later.
What key strategies have you employed to build and maintain a strong brand identity for VIP Clothing in a competitive innerwear market?
VIP Clothing Ltd. has been around for over five decades. People across the country are familiar with the name and its offering. So, when I took charge of the brand as its Chairman & Managing Director, the brand’s identity was strong and established. What we had to work towards was elevating it to newer heights and penetrating into new markets. While this will be an ongoing process, we have surely implemented thought-through strategies to build and maintain the brand’s legacy and momentum.
We begin our work on new launches and re-evaluate existing products by conducting a thorough and timely market and consumer behaviour research to understand their preferences and what drives them. The next step, before we approach them, is to divide audiences into segments demographically. Visually separating demographics makes it easier for the sales and marketing teams to tailor their approach when conversing with the customers.
This clarity is also applied in the communication pieces shared by the brand, especially on social media where audiences are quick to see and form an opinion. Using a mix of digital marketing tools is also necessary in maintaining a strong brand identity. Most legacy brands often shy away from the internet. But, in my experience, embracing the digital world through social media marketing and influencer marketing has only helped our cause.
With all of it at your disposal, the most important aspect of brand building is, undoubtedly, committing to providing comfort, premium quality, and innovating to meet our customers’ needs. Good quality and value for money will take a brand further than any sales or marketing gimmicks.
What innovative technologies have you integrated into your retail operations, and how have they revolutionised your approach to selling innerwear?
We are living in times when the desire to upgrade all things is faster than ever—phones, clothes, accessories, and everything in between. For consumers, it is an exciting period. They can fulfil this desire for ‘more’ by shopping from the wide range of products available to them at their fingertips. On the other hand, maintaining customer loyalty for brands is becoming increasingly challenging due to the rapid growth in market competition.
At VIP Clothing, we are glad to have customers who choose our products time and again. However, our commitment to providing the best quality products is a promise to never take their loyalty for granted. Furthermore, our retail strategies are designed to ensure that our operations keep us ahead of the curve. Along with a variety of products catering to different age groups, we also have a dynamic pricing strategy which allows customers to get hands on the best product without compromising on their spending capacities.
In my experience, optimising supply chain and logistics is an important aspect of ensuring retail success. In addition to allowing us to be prepared for the expected demand, this instant user gratification helps customers return with a satisfactory shopping experience. A similar rigour is accounted for when introducing new products to reach new customers. Understanding the pulse of the market enables us to innovate products that are required whilst bridging the quality:price gap. Doing so also enhances the brand’s visibility.
How are you positioning VIP Clothing in the growing DTC market, and what advantages do you see in adopting a direct-to-consumer model?
The way you choose to position your brand can make or break your story. For us, the vision was always clear. We have always aimed to be an international symbol of excellence. We have positioned ourselves as the innerwear brand that every house can trust for a premium experience. At the core of our vision, we ensure our customers are satisfied through consistent innovation, quality improvement, cost reduction, and time management. With VIP Clothing, our customers are assertive of having the best of all products and services.
The direct-to-consumer model has been a part of our business model for a while now. Beyond our retail and distribution partners, there are several ways for consumers to buy our products directly. This elimination of middlemen enhances the entire process for us and our customers. It helps us understand what the customers want and need. With this information, we can develop new products while staying agile and ahead of the competition.
Now, we extend a round-the-clock support service to our customers. With one call or mail, they can resolve any of their queries, share their honest feedback, and ensure only the best products are being used by them. All the data shared by them enables us to find the right customer for the right product by optimally using direct digital marketing. This model helps us raise the bar for profit margins on sales and expand our markets globally with lesser effort and barriers. As I see it, the advantages of the DTC model far outweigh the disadvantages.
How do you ensure a customer-centric approach in retail strategy, and what initiatives have proven most effective in enhancing customer satisfaction?
At VIP Clothing, our commitment to a customer-centric approach lies at the core of our retail strategy. We understand that our customers’ needs and preferences are constantly evolving, and we strive to stay ahead of the curve to ensure their satisfaction. One of the keyways we achieve this is by leveraging data analytics. By carefully analysing purchasing patterns, customer feedback, and market trends, we gain valuable insights into what our customers want. This data-driven approach allows us to tailor our product offerings more precisely, ensuring that we stock items that resonate with our audience.
In today’s digital age, we recognise the importance of an omni-channel presence. Our robust e-commerce platform is designed to complement our brick-and-mortar stores, providing a seamless shopping experience. Whether our customers choose to shop online or in-store, they can enjoy features like click-and-collect, easy returns, and real-time inventory updates. This integration ensures that shopping with VIP Clothing is convenient and flexible, meeting the needs of our customers wherever they are.
Quality and innovation are also central to our brand. We continuously invest in enhancing our product lines with innovative fabrics and designs that prioritise comfort and style. Our stringent quality control measures ensure that every product meets the highest standards before it reaches our customers. This unwavering commitment to quality has helped us build trust and loyalty among our customers.
Engaging with our customers is another critical aspect of our strategy. Through active engagement on social media, personalised marketing campaigns, and loyalty programmes, we maintain a strong connection with our community. These initiatives not only help us retain our loyal customers but also attract new ones, fostering a vibrant and connected brand community.
Our customer-centric approach is driven by our use of data analytics, omni-channel strategy, commitment to quality, and active customer engagement. These initiatives have proven highly effective in enhancing customer satisfaction and driving our success in the competitive retail market.
Could you elaborate on your visual merchandising strategies and how they have evolved to attract and engage customers in retail spaces?
At VIP Clothing, visual merchandising has always played a key role in our retail strategy, and we have continuously evolved our approach to attract and engage customers effectively.
Our visual merchandising strategies are designed to create a compelling and immersive shopping experience. We understand that the way products are presented significantly impacts customer perception and purchasing decisions. To this end, we place great emphasis on creating visually appealing and strategically organised displays.
One of the key elements of our strategy is storytelling. We curate our displays to tell a story that resonates with our customers, whether it is showcasing the latest seasonal trends, highlighting new arrivals, or creating themed displays around holidays and special occasions. This narrative approach not only makes our stores more visually engaging but also helps customers relate to our products on a more personal level.
Lighting is another critical component. We use innovative lighting solutions to enhance the aesthetic appeal of our displays, highlight key products, and create an inviting atmosphere. Proper lighting draws attention to specific items and sets the mood, making the shopping experience more enjoyable and encouraging customers to spend more time in our stores.
Our window displays are designed to capture the attention of passersby and entice them into the store. We keep these displays dynamic and frequently updated to reflect new collections, promotions, and trends. This ensures that our stores always look fresh and inviting, encouraging repeat visits from our customers.
Digital integration has also become a significant part of our visual merchandising strategy. We incorporate digital screens and interactive elements to provide customers with additional information about products, styling tips, and promotions. This blend of physical and digital elements enhances the overall shopping experience and engages tech-savvy customers.
VIP Clothing’s visual merchandising strategies have evolved to focus on storytelling, effective lighting, dynamic window displays, and digital integration. These efforts create an inviting and engaging retail environment that attracts customers and enhances their shopping experience.
How are you incorporating sustainability and ethical practices into your business model, and what impact do you believe these efforts have on your brand and consumer perception?
At VIP Clothing, sustainability and ethical practices are integral to our business model, reflecting our commitment to responsible fashion. Our approach encompasses various initiatives aimed at reducing our environmental footprint and promoting ethical practices across our operations.
This vision is manifested in our state-of-the-art manufacturing facility in Tamil Nadu, which is designed to cater to both domestic and export markets.
In 2007, we expanded with a new plant in Tamil Nadu, with advanced equipment with a massive production capacity. This expansion reflects our commitment to keeping pace with rapidly changing global markets and competing internationally by leveraging the latest manufacturing technologies.
Our in-house manufacturing capabilities provide better control over quality and cost, enhancing our supply chain management, which is crucial for any industry. These facilities enable us to implement our sustainability and ethical practices more effectively.
We prioritise sustainable sourcing by using eco-friendly materials like organic cotton and recycled fibres. Our advanced planning and sophisticated machinery allow us to optimise resource use, reducing waste and minimising our environmental footprint. Energy-efficient technologies in our manufacturing processes further contribute to our sustainability goals.
Ethical practices play a crucial role in our operations. We ensure fair wages, safe working conditions, and respect for workers’ rights across all our facilities. Regular audits of our supply chain maintain transparency and uphold these standards, reinforcing our commitment to ethical manufacturing.
These efforts significantly impact our brand and consumer perception. By integrating sustainability and ethical practices into our operations, we build trust and loyalty among eco-conscious consumers. Our dedication to responsible fashion differentiates VIP Clothing in the market, enhancing our brand reputation and fostering customer loyalty.
VIP Clothing’s state-of-the-art manufacturing facilities and commitment to sustainable and ethical practices demonstrate our dedication to excellence and responsible fashion. These initiatives contribute to a better environment and fairer industry practices, positively influencing our brand perception and customer loyalty.
