Jockey has made MILLIONS by buildd-ing a premium underwear brand!
Revenue in 2000
- Rupa: INR 100 Cr
- Jockey: INR 20 Cr β 0.2x
Revenue in 2022
- Rupa: INR 1500 Cr
- Jockey: INR 3800 Cr β 2.5x!
Hereβs Jockeyβs KILLER marketing strategy for your startup π§΅
Revenue in 2000
- Rupa: INR 100 Cr
- Jockey: INR 20 Cr β 0.2x
Revenue in 2022
- Rupa: INR 1500 Cr
- Jockey: INR 3800 Cr β 2.5x!
Hereβs Jockeyβs KILLER marketing strategy for your startup π§΅
Structure:
1. A quick glance at the underwear industry in India (pre-Jockey)
2. How it all began for Page Industries
3. Bringing underwear from the store-room to the store-front
4. So, what was the result?
5. What's next for Jockey?
1. A quick glance at the underwear industry in India (pre-Jockey)
2. How it all began for Page Industries
3. Bringing underwear from the store-room to the store-front
4. So, what was the result?
5. What's next for Jockey?
1/ Quick glance at the underwear industry
Before the 1990s, if you went underwear shopping, the local shopkeeper would ask for your size and then fetch a box from some corner of the shop.
They would choose the right brand for you and you'd blindly trust their choice.
(contd.)
Before the 1990s, if you went underwear shopping, the local shopkeeper would ask for your size and then fetch a box from some corner of the shop.
They would choose the right brand for you and you'd blindly trust their choice.
(contd.)
The item itself came packed in a flimsy, transparent plastic cover.
In essence, underwear shopping used to be a hush-hush affair, clouded with embarrassment. More so for women.
There were multiple brands in the market but they operated in the low-end segment.
(contd.)
In essence, underwear shopping used to be a hush-hush affair, clouded with embarrassment. More so for women.
There were multiple brands in the market but they operated in the low-end segment.
(contd.)
Underwear was essentially a strictly functional product that was produced and sold in mass.
In such a scenario, Page Industries started its operations in 1995 and soon changed the rules of the game.
In such a scenario, Page Industries started its operations in 1995 and soon changed the rules of the game.
2/ How it all began for Page Industries
Jockey was founded way back in 1976. But, they became wildly popular in the US in 1934 for their shorts, with a Y-shaped fly.
Around the same time, the Genomal family of Indian origin was settled in the Phillippines.
(contd.)
Jockey was founded way back in 1976. But, they became wildly popular in the US in 1934 for their shorts, with a Y-shaped fly.
Around the same time, the Genomal family of Indian origin was settled in the Phillippines.
(contd.)
They decided to start a business to import clothes and sell them locally.
They soon realized that their highest-selling product was Jockey underwear and thus a long-term partnership between Jockey and Genomal family began!
(contd.)
They soon realized that their highest-selling product was Jockey underwear and thus a long-term partnership between Jockey and Genomal family began!
(contd.)
A) First entry into India
Now, Jockey's first attempt to enter India was through a partnership with Associated Apparels in 1962.
But, since Associated Apparels has the license for multiple brands, Jockey always got a fraction of the attention from them.
(contd.)
Now, Jockey's first attempt to enter India was through a partnership with Associated Apparels in 1962.
But, since Associated Apparels has the license for multiple brands, Jockey always got a fraction of the attention from them.
(contd.)
In 1973, when the Indian government forced foreign companies to dilute their stake to 40% or less, Jockey called it quits and left India.
B) Re-entering with a trusted partner
But, things took a turn for the better after liberalization in 1991.
(contd.)
B) Re-entering with a trusted partner
But, things took a turn for the better after liberalization in 1991.
(contd.)
Jockey entered India with their trusted partner, the Genomal family.
And, this time they got undivided attention from their partner.
More importantly, they had shown that they were ready to experiment & make bold moves to make Jockey an aspirational underwear brand.
(contd.)
And, this time they got undivided attention from their partner.
More importantly, they had shown that they were ready to experiment & make bold moves to make Jockey an aspirational underwear brand.
(contd.)
Page Industries was thus founded in 1994.
Interestingly, even today, Page Industries only has two brands under it, Jockey and Speedo, with Jockey bringing in ~98% revenue!
Clearly, Jockeyβs bet on the Genomal family giving them undivided attention played out really well π
Interestingly, even today, Page Industries only has two brands under it, Jockey and Speedo, with Jockey bringing in ~98% revenue!
Clearly, Jockeyβs bet on the Genomal family giving them undivided attention played out really well π
3/ Bringing underwear from the store-room to the store-front
Page Industries made bold moves in 4 key areas that changed the game entirely.
A) Product
1) In-house manufacturing
The underwear industry was dominated by mass players like Rupa, Lux, and Maxwell.
(contd.)
Page Industries made bold moves in 4 key areas that changed the game entirely.
A) Product
1) In-house manufacturing
The underwear industry was dominated by mass players like Rupa, Lux, and Maxwell.
(contd.)
They primarily sold low-end, low-price products and their manufacturing was majorly outsourced.
On the contrary, Page built an in-house facility to have control over manufacturing and quality.
And to date, ~95% of products are manufactured in their own factories.
(contd.)
On the contrary, Page built an in-house facility to have control over manufacturing and quality.
And to date, ~95% of products are manufactured in their own factories.
(contd.)
2) Obsessed with quality
Page Industries placed an almost obsessive focus on product quality right from the start.
And, with the Genomal family's long-standing relationship with Jockey, they had access to the latest technology and R&D at Jockey.
(contd.)
Page Industries placed an almost obsessive focus on product quality right from the start.
And, with the Genomal family's long-standing relationship with Jockey, they had access to the latest technology and R&D at Jockey.
(contd.)
3) New products & variants
They constantly launched new products & variants at a rapid pace every 3 months.
B) Place
1) In-store advertising
Page was clear from the start that they had to change the way underwear shopping was done in India.
(contd.)
They constantly launched new products & variants at a rapid pace every 3 months.
B) Place
1) In-store advertising
Page was clear from the start that they had to change the way underwear shopping was done in India.
(contd.)
So, they moved Jockey underwear to the prime space in the store.
2) Exclusive brand distributors
To ensure flawless execution, unlike Rupa and Lux, Jockey partnered exclusively with brand distributors who work with and push only a single brand at the stores.
(contd.)
2) Exclusive brand distributors
To ensure flawless execution, unlike Rupa and Lux, Jockey partnered exclusively with brand distributors who work with and push only a single brand at the stores.
(contd.)
3) Exclusive brand outlets
Page was also the first brand in the underwear category to have an exclusive brand outlet.
Imagine having a shop dedicated to underwear in 1990s India.
Today, Page Industries has ~1000 exclusive Jockey outlets across India!
(contd.)
Page was also the first brand in the underwear category to have an exclusive brand outlet.
Imagine having a shop dedicated to underwear in 1990s India.
Today, Page Industries has ~1000 exclusive Jockey outlets across India!
(contd.)
C) Promotion or Messaging
In India, Western = Aspirational!
Page played well on this sentiment and ensured that people perceived Jockey as a premium, foreign brand.
Every aspect of the brand was loudly western. In fact, they hired caucasian models for all their ads!
(contd.)
In India, Western = Aspirational!
Page played well on this sentiment and ensured that people perceived Jockey as a premium, foreign brand.
Every aspect of the brand was loudly western. In fact, they hired caucasian models for all their ads!
(contd.)
D) Pricing
1) Premium Pricing
The premium messaging had to be reflected in the pricing as well. So, Page consciously priced their products in the sub-premium to premium range.
2) No discount policy
They also avoided offering any discounts on their products.
(contd.)
1) Premium Pricing
The premium messaging had to be reflected in the pricing as well. So, Page consciously priced their products in the sub-premium to premium range.
2) No discount policy
They also avoided offering any discounts on their products.
(contd.)
In a country like India where people obsess over discounts, this move was unthinkable!
As a result of this policy, over 90% of Jockey products are sold at the maximum retail price!
Together, these things helped Page buildd a premium and aspirational brand for Jockey.
As a result of this policy, over 90% of Jockey products are sold at the maximum retail price!
Together, these things helped Page buildd a premium and aspirational brand for Jockey.
4/ So, what was the result?
1. Page Industries currently has ~50% market share in India!
2. In 2000, Rupa made revenue of INR 100 Cr, while Jockey was at INR 21 Cr.
Fast forward to 2022, Jockey at ~INR 3725 Cr now makes 2.5x the revenue of Rupa (~INR 1474 Cr)!
(contd.)
1. Page Industries currently has ~50% market share in India!
2. In 2000, Rupa made revenue of INR 100 Cr, while Jockey was at INR 21 Cr.
Fast forward to 2022, Jockey at ~INR 3725 Cr now makes 2.5x the revenue of Rupa (~INR 1474 Cr)!
(contd.)
3. On top of this, Jockey is also completely debt-free, and has a healthy ROCE of ~64%, which is 2.2x that of Rupa (~28%).
But, what's ROCE?
ROCE => Return on Capital Employed => it indicates how well a company is using its capital to generate profit.
(contd.)
But, what's ROCE?
ROCE => Return on Capital Employed => it indicates how well a company is using its capital to generate profit.
(contd.)
ROCE helps us compare profitability across companies based on how efficiently they use the capital available to them.
For instance,
Profits
A = B = Rs 100
Capital
A = Rs 500
B = Rs 1000
Then A has a higher ROCE compared to B and is, therefore, more efficient.
(contd.)
For instance,
Profits
A = B = Rs 100
Capital
A = Rs 500
B = Rs 1000
Then A has a higher ROCE compared to B and is, therefore, more efficient.
(contd.)
But, how is Page able to ace ROCE?
A) Cutting cost
In 1995, Page only had a total capital of INR 1 CR.
So, they employed cost-cutting measures like:
a. Leasing land
b. Outsourcing specific manufacturing processes
c. Limiting the amount of debt
(contd.)
A) Cutting cost
In 1995, Page only had a total capital of INR 1 CR.
So, they employed cost-cutting measures like:
a. Leasing land
b. Outsourcing specific manufacturing processes
c. Limiting the amount of debt
(contd.)
B) High ROCE projects
They only pick up projects with a ROCE > 20%. That's why Page never expanded beyond Jockey and Speedo.
As a result, Page has consistently increased their ROCE from ~25% in 2008 to ~64% in 2022 and maintained a financially healthy company throughout.
They only pick up projects with a ROCE > 20%. That's why Page never expanded beyond Jockey and Speedo.
As a result, Page has consistently increased their ROCE from ~25% in 2008 to ~64% in 2022 and maintained a financially healthy company throughout.
5/ What's next for Jockey in India?
Now that Page has successfully established a premium brand for Jockey in India in the underwear segment, the next goal for Page is to scale to $1 billion or ~INR 8000 crores in revenue β double of what it is today!
(contd.)
Now that Page has successfully established a premium brand for Jockey in India in the underwear segment, the next goal for Page is to scale to $1 billion or ~INR 8000 crores in revenue β double of what it is today!
(contd.)
How Page plans to do that, you ask? Well, Page has its eyes on cracking the βAthleisureβ segment in the next 3-4 years and buildd-ing a brand for Jockey there.
Of course, itβs a herculean task given the intense competition, but such barriers didnβt stop Page even earlier π
Of course, itβs a herculean task given the intense competition, but such barriers didnβt stop Page even earlier π
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