TFO mulls multiple stores with Rs. 50 m investment

Tuesday, 1 September 2015 00:03 - - {{hitsCtrl.values.hits}}

Plans underway to expand the brand in the Middle East
Confident of 25% growth in turnover by yearend

By Charumini de Silva

The Factory Outlet (TFO), a growing name in the Sri Lankan clothing industry, confirmed an investment of Rs. 50 million to open up multiple stores within the next two years.

Plans are underway to open up stores in Nugegoda, Kandy, Kurunegala and Galle in the next 24 months with an investment of over Rs. 50 million.

“Capitalising on the success and customer feedback we thought it was the right time to expand our brand further to the suburbs. We also intend to take the brand outside Sri Lanka within the next three to four years,” TFO Managing Director Asif Iqbal told the Daily FT.

Elaborating on the international expansion plans, he asserted that they would initially look into the Middle Eastern market as there was much potential there at present.

“We have a lot of customers based in Middle Eastern countries and there is good demand for garments in the region. We would be looking at countries like Dubai, UAE and Oman for our first stage of brand expansion overseas,” he added.

Explaining how TFO is different from other clothing companies operating in Sri Lanka, Iqbal said that they sell export garments at an affordable price. “We purchase the excess export garments from factories, which is the very reason why we call ourselves ‘The Factory Outlet’. The quality of the garments that we provide cannot be easily matched by our competitors, which has been the secret to our success during the last four years.”

However, he said that it was challenging to keep up with the high demand for ladies attire and hence they were now importing around 40% to 50% of their ladies garments from India and Bangladesh.

Commenting on the performance of TFO during the first half of the year, he said that it was increasing and commendable. “We are confident of posting a turnover growth of over 25% by the yearend. On average, we post a turnover growth of 15% and last year we posted a 20% growth.”

Iqbal said volume-wise, kids garments were moving very fast compared to the other two key categories of ladies’ and men’s clothing.

Clarifying his point further, he stated: “Irrespective of the financial situation, parents buy new clothes for their children and kids make their clothes dirty very soon. Another reason is that kids fashion trends aren’t evolving as fast as the other two categories, which is why it has been easy for us to cater to the demand.”

At present TFO mainly caters to the middle income market segment, but gradually they are moving into the high-end market segment as well.

Pix by Sameera Wijesinghe

‘TFO Club’ loyalty program debuts

The Factory Outlet, a growing name in the Sri Lankan clothing industry, recently announced the launch of a tailored ‘TFO Club’ loyalty program.

The launch comes hot on the heels of a highly successful social media campaign designed to reward and involve customers in the hopes of creating a consistently improved shopping experience.

Customers visiting TFO, located at Havelock Road, Mt. Lavinia and Pelawatte, on 29 August will receive the cards absolutely free.

TFO Managing Director Asif Iqbal said: “Our goal has always remained to deliver a collection of the highest quality clothing and accessories for the entire family. We have maintained this core belief throughout our journey and we believe it is the backbone of our success as a business.”

He said that the launch of the TFO Club Loyalty Program and the incredible success of their social media marketing was a testament to the impact and involvement each of their customers had on the business.

“Customers are our greatest strength and our best critics and we believe in maintaining dialogue and providing them with the best. I would like to assure our customers that the TFO Club is just the first in a list of planned innovations designed to improve the overall experience at TFOs,” Iqbal added.

The launch event of the loyalty program took place at the company’s flagship store at Havelock Road and was tied in with the presentation of loyalty cards to the winners of the social media campaign that preceded the launch.

TFO Club loyalty cards were handed over to the winners of the social media campaign by TFO Managing Director Asif Iqbal, General Manager – Operations Shaeed Younus and Accountant Nauseer Ahamed.

Commenting on the benefits of the loyalty program, TFO General Manager – Operations Shaeed Younus said: “What sets the TFO Club apart from others currently operating in the industry is that our point system does not have a short validity period. TFO club cards are valid throughout a member’s lifetime and can be utilised by customers at all the TFO outlets.

There are also great deals on offer that are provided exclusively for loyalty cardholders and an abundance of special promotions and other benefits of joining the program, he said.

The loyalty cards will be provided free of charge and once registered each member of the TFO Club will receive regular updates on offers and special deals.

The TFO Loyalty Program is also available for social media users and can be contacted via the stores online platforms.