Koutons Retail India Ltd. (KRIL) emerged as one of the largest branded apparel retailers in a short span of time. The journey that began as an apparel manufacturer saw the company’s transition to a retailer with national presence. The company redefined the rules of retailing through its deep discounting strategy which helped it to develop a large customer base. This case study discusses some of the factors that helped KRIL emerge as a specialty retailer to the Great Indian ‘Value Seeking Class’ and also looks at the challenges faced by the company along the way.

The story of Koutons apparently has tragic roots. The promoter of the company, D P S Kohli, a mechanical engineer turned entrepreneur, suffered great losses during the anti-Sikh riots post the assassination of India’s former Prime Minister, Indira Gandhi. Undeterred by the loss, he rose from the ashes to take the Indian male fashion industry by storm. Kohli in association with his brother-in-law, B S Sawhney, set up Charlie Creations in the year 1992 for manufacturing and exporting garments. Two years later, the company was made private limited under the name Charlie Creations Pvt. Ltd. The changes that the Indian economy was witnessing in the early 2000s like demographics, ready availability of credit and real estate, changes in lifestyle patterns, etc. tilted the scales in favor of organized retail. India’s young consumer profile (i.e., 65% of the population below 35 years of age), particularly the sizable 20-49 years aged working population, equipped with purchasing power to match their aspirations became the key drivers fueling the entry of numerous foreign retailers. These retailers not only brought international formats and fashion to the Indian doorstep but also helped increase the size of organized apparel retailing. Thus, entry into apparel retailing became a logical step for Koutons. Its retail venture was set in motion in the year 1999 with the setting up of Koutons Retail India Ltd. (KRIL), positioned as a ‘High Fashion Value for Money’ chain targeting the value-conscious middle-class males. Other than a unique pricing strategy, there were numerous other drivers that aided in the phenomenal growth and expansion of KRIL, and the present case discussion highlights some of these.

Entrepreneurship Development Journal, Koutons Retail India Ltd, Fight for Survival, Company Owned/Leased Company Operated (COCO), Company Owned/Leased Franchisee Operated (COFO), Franchisee Owned/Leased Franchisee Operated (FOFO).