<ul><li>Global brands like M&amp;S and <keyword id="3014364" type="General" weightage="20" keywordseo="pepe-jeans-india" source="Orion">Pepe Jeans India</keyword> are focussing as much on tier 2, 3 cities as they are metros.</li><li>Small town Rajahs are just as well-informed and brand conscious as their metro counterparts, they say.</li><li>QSR players like Pizza Hut too see half of their growth from smaller cities, and are altering their offerings to deliver to the palettes. </li></ul>India’s charming smaller cities bring certain images to mind — like a samosa-wala sitting around the corner; and dusty market areas with barely-lit shops or most people commuting on two-wheelers. Think again. Bharat has gone high-end, and now most cities be it Baroda, Budaun, Indore, Nagpur or Udaipur — are where mall developers are crowding to. In with the trend are not just Indian brands but foreign brands want to go where they see ‘growth’. When it comes to store opening both fashion, cars or even fast food chains, they all want to grow across metros and smaller cities — on an almost equal footing. For luxury car brands, small is the new big. Companies like BMW, <keyword id="25952" type="General" weightage="20" keywordseo="mercedes-benz" source="Orion">Mercedes-Benz</keyword>, <keyword id="75789" type="General" weightage="20" keywordseo="lamborghini" source="Orion">Lamborghini</keyword>, and others are eyeing smaller towns and cities like Ludhiana, Kanpur, Surat, etc. to drive up their volume growth in India. By selling an average number of 40,000 units annually, luxury carmakers make up less than 2% of the entire passenger vehicle market in the country-as compared to 13% penetration in China and 10 per cent in the US. They are now hoping to drive up sales by penetrating deeper into the Tier-II and Tier-III markets in the country. According to top luxury players in India, non-metro cities could drive significant sales volumes owing to an emergence of young entrepreneurs from these places. Small towns are ‘Fashion forward’ <div type="image" title="pepe jeans" msid="105071304" hostid="261" caption="&amp;lt;p&amp;gt;Manish Kapoor, MD and CEO of Pepe Jeans India &amp;lt;/p&amp;gt;"></div> British retail major <keyword id="1295402" type="General" weightage="20" keywordseo="marks-spencers" source="Orion">Marks &amp; Spencers</keyword> which, recently opened its 100th store in India, is betting big on ‘thriving and vibrant Bharat. M&amp;S has opened a store each in Ranchi, and Kochi has just gotten its second store like Baroda. It’s also present in Surat, Coimbatore, Bhubaneswar and Guwahati. "Even though growth in Tier 1 cities has not yet exhausted, Tier 2 cities are growing much faster. At present, 40 out of our 100 stores are in Tier 2 cities. Provided the right locations come up in these cities, we will look at more stores in these cities," Ritesh Mishra, MD of Marks and Spencer Reliance India told Business Insider India. Yet another UK based fashion retailer Pepe Jeans India also said that it plans to open around 30 new stores every year. Of that, a majority would be in smaller cities. “We have not covered many Tier 2 cities, and they also provide higher avenues to growth,” said Manish Kapoor, CEO &amp; MD of Pepe Jeans India told Business Insider India. Thanks to exposure to the internet, the small town consumers are just as fashion forward as their metro consumers. “Their exposure to brands, fashions and international styles is on par with the metro consumers,” said Kapoor. Online presence also helps these brands service many more pin codes across the country. Mishra agrees, and adds that there is not much of a difference between the consumers in Tier 1 and Tier 2 cities except that the basket value in the smaller cities may be a tad lower. They also intend to reach more pin codes via e-commerce, taking their style and substance to all of India that wants it. For a long time, smaller cities have been smaller markets for large brands. But what’s changed in the last few years, the number of middle income households are changing. Their incomes are growing on-par too. According to consumer insights company Kantar, all-India urban average monthly household income has been growing at 8.4% for the last five years. In Tier 2 and tier 3 cities, it has been growing a compounded annual growth rate (CAGR) of 7.8%. More money to spend The discretionary wallet share of a smaller city consumer is also higher, argues Kapoor. “For example, take a person who earns ₹1 lakh per month in Bombay, he or she would spend ₹40,000-45,000 on rent and then some more on commuting and other essentials. Then take a person who earns ₹50,000 pm in Lucknow — all the aforesaid expenses will be under ₹25,000,” he explains. Moreover, the new generation of consumers – be it millennials or GenZs – are focussed on experiences, consumption and self-care. That’s bringing about a marked change in the traditional mindset of people — all manna for brands. “Earlier people would feel guilty of spending, now the new generation thinks — Why not? What else do we earn for?” sums up Kapoor, profiling the consumers they’re going after in smaller towns, who wouldn’t flinch before spending ₹5,000 on a pair of jeans. Value in growth <div type="image" title="pizza hut" msid="105094177" hostid="261" caption="&amp;lt;p&amp;gt;Merrill Pereyra, Managing Director, Pizza Hut India Subcontinent&amp;lt;/p&amp;gt;"></div> US major Pizza Hut India too is thinking on the same lines as its apparel counterparts. In the last two years, they went from around 400 restaurants to over 800 stores. And, half the stores as a part of its expansion strategy are in smaller cities. It expects 50% of its growth to come from newer markets i.e cities that intend to foray into through their franchises, Merrill Pereyra, MD of Pizza Hut India subcontinent told Business Insider India in an interview. Unlike their apparel counterparts, they are a tad more careful about their approach. Quick service restaurants (QSR) are more of a habit where even consumers with chunky wallets seek value. “We have to be strategic with the value we provide. We have offers like one plus one meals, My Box which is a meal for one. But we are also appealing to local tastes. One of our innovations is Dhabe Da <keyword id="4821660" type="General" weightage="50" keywordseo="keema-pizza" source="Orion">Keema Pizza</keyword>, the way a small town consumer would think is, we are used to it, let’s see how it tastes on a pizza whereas a big city consumer would see it as a fusion menu,” Pereyra explained. Be it fashion or food, the new-age small city customer is seeking the ‘premium’ route — that’s caught the eye of large international players who want to make their mark. SEE ALSO <a href="https://www.businessinsider.in/business/news/wine-vs-tea-indias-consumption-trends-show-a-sharp-divergence/articleshow/104810168.cms">Wine vs Tea: India’s consumption trends show a sharp divergence</a> <a href="https://www.businessinsider.in/entertainment/news/pvr-woos-netflix-n-chill-crowd-back-to-big-screens-with-its-passport/articleshow/104919450.cms">PVR woos Netflix n Chill crowd back to big screens with its Passport</a>

Foreign brands bet big on Bharat’s bulging wallets

<img class="gwt-Image" src="/photo/56514181.cms" /> Cash ban might have created a lot of problems but it couldn’t dampen end-of-season sales as the malls were full of shoppers and top retailers expecting 15-18% year-on-year growth in the ongoing sale season. 
 
Retailers such as <a href="http://www.businessinsider.in/searchresult.cms?query=Future+Group&amp;sortorder=effectivedate">Future Group</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Shoppers+Stop&amp;sortorder=effectivedate">Shoppers Stop</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Lifestyle&amp;sortorder=effectivedate">Lifestyle</a> reported buoyant demand in the last few weeks, signaling a quick revival from the note ban blues that led to 30-50% fall in their business in November. 
 "Post demonetisation, November sales had turned weak. But December onwards the sales growth has been strong and in double digits,” <keyword id="162214" type="PERSON" weightage="20" keywordseo="Govind-Shrikhande">Govind Shrikhande</keyword>, managing director at <keyword id="64373" type="CITY" weightage="20" keywordseo="Shoppers-Stop">Shoppers Stop</keyword>, told ET. He expects this year's end-of-season sale to beat all previous records. 
 
The e-commerce websites such as <a href="http://www.businessinsider.in/searchresult.cms?query=Myntra&amp;sortorder=effectivedate">Myntra</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Jabong&amp;sortorder=effectivedate">Jabong</a>, Tata Cliq and Reliance's <keyword id="3421090" type="UNKNOWN" weightage="20" keywordseo="Ajio">Ajio</keyword>, too, have got good response to their end-of-season sales that coincided with those of brick-and-mortar retailers. 
 Top retailer <keyword id="44949" type="CITY" weightage="20" keywordseo="Future-group">Future Group</keyword>'s Brand Factory, which retails some 200 fashion brands including Wrangler, <keyword id="69300" type="CITY" weightage="20" keywordseo="nike">Nike</keyword>, Louis Philippe and <keyword id="197443" type="PERSON" weightage="20" keywordseo="Allen-Solly">Allen Solly</keyword>, said it crossed its sales target for special sale events planned around demonetisation. 
 
"The only impact of demonetisation was in the first week after announcement. We are out of it now,, Jitendernath Patri, chief marketing officer at Central, told ET. 
 
However, most brands report healthy growth in sales some feel it could have been better. 
 "This could have been one of the best seasons if not for demonetisation,” Kavindra Mishra, chief executive at denim brand <keyword id="737532" type="PERSON" weightage="20" keywordseo="Pepe-Jeans">Pepe Jeans</keyword> that reported 18% likefor-like growth in the sale period, told ET. 
 Yogeshwar Sharma, executive director at Delhi's <keyword id="726947" type="ORGANIZATION" weightage="20" keywordseo="Select-Citywalk-Mall">Select Citywalk Mall</keyword>, expects luxury retailers to grow at a slower pace or remain flat, while other categories will grow 10-12%. 
 
"All retailers have put their best foot forward and are giving 40-60% off on merchandise, which is good enough to attract people to malls,” he told ET.

No cash blues for shoppers, despite demonetisation; top retailers expect 15-18% growth

<img class="gwt-Image" src="/photo/48619625.cms" /> 
India is becoming a better place for children to live in with top global retailers eyeing the market here. The Children's Place, top childrenswear retailer in the US, is tying up with hospital chains in India to visit patients in maternity wards and gift merchandise for their newborns.
 "As the child grows, we are hoping they become regular consumers for our brand and we kind of adopt their fashion sense since birth," said J Suresh, managing director and CEO of <keyword id="589879" type="COMPANY" weightage="100" keywordseo="Arvind-Lifestyle">Arvind Lifestyle</keyword>, which has a franchisee arrangement with The Children's Place (TCP) and plans to open 50 stores of the mass premium brand in the next four years, to ET. 

	TCP is one of the several international brands foraying into kids' clothing and accessories market in India to cash in on a growing demand for branded products and to fill a vacuum created by domestic brands' failure to scale up.
 British denim brand <keyword id="737532" type="PERSON" weightage="100" keywordseo="Pepe-Jeans">Pepe Jeans</keyword> plans to bring in its kidswear range into the country this month and open 10 exclusive outlets, while French childrenswear brand Jacadi and Malaysian brand Poney are looking to expand their presence. 

	Industry insiders say there's a gap in this market because Indian brands such as Weekender Kids, Catmoss, Gini and Jony, Jack n Jill and Lilliput have had to either shut shop completely or scale down operations over the last decade as they couldn't sustain the rapid expansion cost.
 

	Even Mahindra Retail that entered the segment over five years ago with Mom and Me chain has shut nearly one-fourth of its stores.
 "New players will fill this void," said Govind Shrikhande, managing director at department store chain <keyword id="64373" type="CITY" weightage="100" keywordseo="Shoppers-Stop">Shoppers Stop</keyword>, to ET. "Most players lost out due to their own internal operational issues and not external factors since demand for such products has always been good," he said. Shoppers Stop — which runs nearly 38 shops of <keyword id="128528" type="CITY" weightage="100" keywordseo="Mothercare">MotherCare</keyword>, a British retailer of products for expecting mothers and newborns, within its department stores — has seen share of kidswear in its overall sales double to 10 per cent over the past few years. 

	Many global brands are exploring growth opportunities in emerging markets as economic growth and birth rates slow in western markets, and India is seen as a high-potential market.
 

	"Among the emerging economies, India has the distinct advantage of being a country with promising economic outlook coupled with growing kids population and increasing discretionary spending on kids," Amit Gugnani, senior vice president at consultancy firm Technopak, told ET.
 

	As much as 29 per cent of India's population is below 14 years, he said. For the US, Europe and Japan shares of children in their population are 19 per cent, 16 per cent and 13 per cent, respectively.
 A study by industry body <keyword id="6355988" type="CITY" weightage="100" keywordseo="Assocham">Assocham</keyword> has estimated that kidswear market in the country will be worth Rs 95,000 crore by 2016, growing at a compound annual growth rate of about 20 per cent. 

	The market is, however, largely controlled by unbranded local players.
 "While the kidswear market is very huge, the contribution of branded segment is not very high," Kavindra Mishra, CEO of <keyword id="3014364" type="UNKNOWN" weightage="100" keywordseo="Pepe-Jeans-India">Pepe Jeans India</keyword> told ET. He, however, pointed out organised players are growing much faster than the overall market. 

	"There is a vacuum in the branded kids wear category. And that is why the growth of the branded segment in this category is four times more than the rest of the category," Mishra said.
 

	Industry insiders said childrenswear is not an easy market to be in.
 

	The biggest challenge is, retailers have to handle 8-9 different sizes, nearly double the number of different fits for adults, putting constant pressure on supply chain.
 

	Another issue is that since kids are expected to outgrow the clothes in less than a year, people expect their prices to be relatively cheap.
 

	Some Indian kidswear brands are finding it difficult to compete with private labels and regional brands that have managed to decode the requirements of value conscious consumer better.
 

	"What parents expect is that the price compared to the market abroad should be half, whereas the manufacturing cost is not half. This is one of the problems why no brand is being able to do well in kidswear in India," said Suresh of Arvind.
 

	But this price restriction is slowly changing as kids begin to influence buying decision.
 

	"Kids today are also becoming brand conscious and have their own preferences while the parents are ready to shell out money; probably it is the feeling that they couldn't do it so they want it for their kids," said Veena Satish, CEO of Raavee House of Chic that launched the first Jacadi store in Bengaluru earlier this year, to ET.

	 
	 
	(Image credits: Indiatimes)

India becoming a hotspot for global kids' fashion retailers

<img class="gwt-Image" src="/photo/51806788.cms" /> 
 <keyword id="163329" type="COMPANY" weightage="100" keywordseo="Levi-Strauss-Co">Levi Strauss &amp; Co</keyword>, the US-headquartered maker of the popular <keyword id="3321200" type="UNKNOWN" weightage="100" keywordseo="levis-denim">Levi's denim</keyword> jeans, wants to convert its existing local wholesale entities into retail, for which it has sought the permission of Indian government. Doing so, it has joined the <a href="http://www.businessinsider.in/10-new-insurance-companies-to-start-operations-in-India-soon/articleshow/51585962.cms">long list of foreign brands</a> that are seeking to gain from the changes in India’s FDI policies. 
 
As per reports, Levi Strauss &amp; Co had filed an application with the Department of Industrial Policy and Promotion under the Industry Ministry on April 11, seeking approval that its existing wholesale entities are allowed to engage in direct retailing and ecommerce. 
 
Also read: <a href="http://www.businessinsider.in/New-FDI-rules-to-upset-online-shoppers-no-more-promotional-offers-and-cash-backs/articleshow/51644272.cms">New FDI rules to upset online shoppers; no more promotional offers and cash-backs</a> 
 
Other apparel and casual wear brands that have sought the approval <a href="http://www.businessinsider.in/Samsung-to-soon-apply-for-single-brand-retail-licence-in-India/articleshow/50848515.cms">for direct retail</a> include Pepe Jeans, Adidas and Puma. 
 
It was in November 2015 that the government had relaxed the rules for <a href="http://www.businessinsider.in/Not-everything-can-be-termed-state-of-the-art-says-Indian-government-to-facilitate-FDI/articleshow/51628211.cms">FDI in retail</a>. The new rules allow manufacturers to sell their products through wholesale, retail and ecommerce channel as well. 
 
<a href="https://upload.wikimedia.org/wikipedia/commons/2/2e/HK_Yuen_Long_Plaza_Levi_s_Store_Ground_Floor.JPG">Image source</a>

Levi
Strauss wants to directly retail online and offline, writes to the government

<ul><li>The great Indian festival season is expected to bring in muted sales for apparel makers who saw spectacular sales last year.</li><li>Hit by inflation and other economic factors, Indians are likely to buy children apparel the most this festival.</li><li>Discounting is becoming a key driver for sales report retailers who have lost many full-price sales days in Q2 due to the delayed festival season. </li></ul>Last year, the Dusshera-Diwali festive season was the first after two years of lockdown. As expected, people spent with vigour on clothes, shoes and more. This year, not only has that fervour gone down, but inflation and other worries have cropped up. Little apparel is moving from the stores without discounting, say retailers. A survey conducted by Clothing Manufacturing Association of India (CMAI) indicated widespread pessimism amongst merchants. As many as 78% of those surveyed expect the sales this festive season to dip up to 25% as compared to last year. Half of the survey respondents feel that kid’s wear will lead the way in sales, followed by 36% citing women’s wear. Only 12% bet that men’s wear will perform better. “This aligns with the broader slowdown experienced in the domestic garment sector during the last 4-5 months. Nevertheless, we anticipate a market upswing after Diwali, considering the extended wedding season that lies ahead,” said Rahul Mehta, chief mentor of CMAI. The festive season sales are likely to see same store de-growth, it predicts. Gone with the pandemic Pepe Jeans India too believes that the pandemic-era growth has tapered. The UK-based brand saw its India sales rise by 55% in 2022 — which is 40% higher than the pre-pandemic sales. This year, it expects to grow at 18% but believes it will finish the year with 12-18%. “Last year was phenomenal. But the truth is that we are growing on a high base. The festive season has also been subdued. While Pujo and Onam sales were good, we will wait for the impact of the Diwali sales season which are yet to pick up. So, growth is there but its muted,” Manish Kapoor, MD &amp; CEO, Pepe Jeans India told Business Insider. Discounts the key driver for sales? Indians have turned wary of discretionary purchases with lower-than-expected salary increments and rise in inflation — softening the sentiment. And, the only thing that’s re-energizing this market is the discounting. Let’s take India’s top apparel company Arvind Fashions which saw a good 9% like-to-like sales growth, but most of it was driven by discount season. Its retail discounting went up 3% in the second quarter. “This quarter can be divided into two parts. We had delayed the End Of Season in July due to good sell-throughs. And we saw good double digit like-to-like retail growth in August and July, but it was slightly negative in September due to less number of full-price days as festive season season dates shifted to October,” said Shailesh Chaturvedi, MD &amp; CEO of Arvind Fashions in an earnings concall. The shift in wedding and festival season has also affected <keyword id="64373" type="General" weightage="80" keywordseo="shoppers-stop" source="Orion">Shoppers Stop</keyword>. “The demand environment remains weak. Across cities, towns and categories, unlike last quarter, or earlier quarters, where it was more driven by rural or non-metro weakening of demand,” said Kavindra Mishra, CEO of Shoppers Stop in its Q2 earnings concall. It too had to resort to discounting that has affected its margins too. “Our performance on private brands last year was based on the pent-up demand immediately post-Covid. Given the slowness in the market, we liquidated part of our merchandise at a higher discount,” Mishra said. (This article is a part of Business Insider India’s ‘Boom to Bust’ series which will discuss post-pandemic demand trends) SEE ALSO <a href="https://www.businessinsider.in/business/news/how-pizza-hut-kfc-dominos-lose-their-post-pandemic-boom-effect/articleshow/103438807.cms">The Quick and the Dead: How fast food players lost their pandemic boom effect</a> <a href="https://www.businessinsider.in/business/news/diamond-demand-heads-for-a-hard-landing-with-temporary-disruption-at-play/articleshow/103599134.cms">Diamond demand heads for a hard landing with ‘temporary disruption’ at play</a>

Bitten by inflation, Indians buying fewer clothes this season

<ul><li><keyword id="12883346" type="General" weightage="100" keywordseo="prozo" source="Orion">Prozo</keyword> raised the funding through a combination of equity and debt financing. </li><li>The round also saw participation from JAFCO Asia and other marquee investors. </li><li>The funds would be used to expand its client base, warehousing and logistics network, and deepen its SaaS platform. </li><li>The current round is a precursor to a larger series B round planned in FY24, said the company. </li></ul><keyword id="118965" type="General" weightage="20" keywordseo="Supply-chain" source="Orion">Supply chain</keyword> company Prozo on Tuesday said it raised ₹45 crore – through a combination of equity and debt financing – in a pre-series B round led by <keyword id="2652156" type="General" weightage="80" keywordseo="Sixth-Sense-Ventures" source="Orion">Sixth Sense Ventures</keyword>. The round also saw participation from JAFCO Asia and other marquee investors. The current round is a precursor to a larger series B round planned in FY24 and the funds raised currently would be utilised to expand its client base, warehousing and logistics network, and deepen its Prozo Warehousing &amp; Logistics SaaS platform, said the company in a press release. “Prozo is like an operating system of supply chains wherein brands of all sizes can customise their supply chain, leveraging Prozo’s fulfilment and logistics network,” said Ashvini Jakhar, founder and CEO - Prozo. The company offers supply chain services to nearly 100 brands through a network of 30 omni- channel fulfilment centres across 12 locations. Founded in 2015, the Gurgaon-headquartered company has raised ₹131 crores of funds to date. Its last round of funding, of ₹76 crore, was also led by Sixth Sense Ventures. “Prozo has scaled faster than expected since our last investment in March 2022 in a very responsible manner. Large enterprises as well as fast-growing D2C (direct-to-consumer) brands including the likes of Tata Consumer, Reliance, Hyundai, WH Smith, Snapdeal, Soothe Healthcare, Traya, Pepe Jeans, LEAP &amp; Vahdam entrust Prozo with their supply chain management,” said Nikhil Vora, founder and CEO, Sixth Sense. As supply chains become more and more complex, Prozo is well-placed to become the market leader in its segment with its end-to-end supply chain capabilities, he added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/digiqure-the-latest-startup-to-appear-on-shark-tank-india-s2-aims-to-tackle-healthcare-services-in-rural-area/articleshow/97911962.cms">The untimely death of 7-year-old girl inspired this startup to start e-clinics in villages</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/insurancedekho-raises-150-mn-largest-ever-series-a-funding-by-an-insuretech-startup/articleshow/97904343.cms">InsuranceDekho raises $150 mn, largest-ever Series A funding by an insuretech startup</a>

Supply chain startup Prozo raises ₹45 crore in pre-series B round led by Sixth Sense Ventures

Several clothing retailers such as Puma, Adidas, Zara, Allen Solly, Levi’s, etc are offering great discounts, all thanks to <keyword id="6359833" type="ORGANIZATION" weightage="20" keywordseo="Goods-and-Services-Tax">Goods and Services Tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>), which is expected to rollout from July 1. The sudden discount season comes after the GST Council decided that man-made apparel above Rs 1,000 will attract a 12% levy, higher than the existing 7%. "The difference in the tax will be a big hit for the brand, so we want to keep the channel clean with lower inventory dues. We are doing this to liquidate merchandise before the new designed regime (GST) kicks in on July 1,” Kavindra Mishra, managing director of Pepe Jeans, told Economic Times. Puma is offering 50% discount at stores, Allen Solly has a buy one-get-one offer, Levi's is giving two items free on the purchase of two, Flying Machine is giving up to 50% off, Pepe Jeans is running a buy-three-get-three offer, etc. Retailers say GST is quite complicated and brands have no idea on opening stock. "The impact of tax won't be more than the discount which they are offering. But there is not much clarity yet around the existing stock and hence certain brands and retailers are pushing the panic button and rest are following,” Rajagopalan Kumar, president of the <keyword id="113282" type="ORGANIZATION" weightage="20" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword>, told ET.

This is the best time to go shopping as clothing brands are offering discounts up to 50%. Here’s why

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5972184e552be54f008b5b9a-1200/gettyimages-451970690.jpg" alt="Mark Zuckerberg, chief executive officer and founder of Facebook Inc., and his wife Priscilla Chan" data-mce-source="Scott Olson/Getty Images">Scott Olson/Getty Images</img></div></div></div>Mark Zuckerberg, heartland&#xa0;<a href="http://www.businessinsider.com/what-its-like-to-have-a-surprise-dinner-with-mark-zuckerberg-2017-5">tourist</a> and Facebook's CEO, is famous&#xa0;for wearing <a href="https://www.facebook.com/photo.php?fbid=10102616790362931&amp;set=a.529237706231.2034669.4&amp;type=3&amp;theater">the same thing every day</a>.If you've seen a photo Zuckerberg from&#xa0;the past few years, you've most likely seen him wearing a grey shirt, blue hoodie, jeans, and <a href="http://www.businessinsider.com/sneakers-worn-by-tech-execs-2017-5">Nikes</a>.&#xa0;He has a closet full of grey t-shirts:&#xa0;<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/59721605c50c298e088b5aaa-2038/12513843101026167903629313270313262875234676o.jpg" alt="Mark Zuckerberg's closet" data-mce-source="Facebook">Facebook</img></div></div></div>Zuckerberg doesn't just wear any old plain grey Hanes t-shirt, though. His are special ordered from Brunello Cucinelli, and reportedly cost between $300 and $400.&#xa0;A few years ago, H&amp;M rolled out a <a href="http://markforhm.com">joke</a> "Zuckerberg collection," but that's not on sale anymore. &#xa0;<a href="https://www.facebook.com/blaus.kuchroithner">Klaus Buchroithner</a>, CEO of Vresh Clothing, decided to study&#xa0;Zuckerberg's shirt closely, and make a replica of it, or as "as close to the original as possible"&#xa0;without being the same exact item - kind of like how Instagram rolls out new features.Buchroithner looked at the fabric, the color, and even the length of the t-shirt while crafting <a href="https://www.zuckerbergshirt.com/?ref=producthunt">the&#xa0;replica</a>.&#xa0;Now&#xa0;the "Zuckerberg Shirt" <a href="https://www.zuckerbergshirt.com/?ref=producthunt">is on sale for 40 euros, or about $46</a>. They're made in Italy and all profits&#xa0;go to the <a href="https://en.wikipedia.org/wiki/Chan_Zuckerberg_Initiative">Chan Zuckerberg Initiative</a>, a&#xa0;philanthropic company funded by the Facebook fortune that sometimes invests in startups.&#xa0;Here are the "specs" for the "<a href="https://www.zuckerbergshirt.com/?ref=producthunt">Zuckerberg Shirt</a>:"&#xa0;Fabric 100% mercerized combed cotton, Made in Italy (extra soft) Weight 180g per m² (20% more than industry standard) Color zucker-grey tones, melange (sale e pepe) Stitching double-stitched with PEGASUS EX3215-03 SergerAnd here's Buchroithner wearing his 40-Euro shirt:<div><iframe style="border: none;" src="https://cards.producthunt.com/cards/comments/496051?v=1" width="500" height="405" frameborder="0" scrolling="no" allowfullscreen=""></iframe></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/us-giant-barcodes-aerial-calibration-targets-2017-6">Here's why there are mysterious giant barcodes across the US</a></h3> <div> <div> <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="ZycmpyYjE62tHYZ9DmK5lTi0Ch7fJ1t8" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> <script> if (typeof RunFunctions === 'undefined') { var RunFunctions = []; } RunFunctions.push(function() { var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'ZycmpyYjE62tHYZ9DmK5lTi0Ch7fJ1t8',{ autoplay: 'false' }); }); </script> <noscript><div>Please enable Javascript to watch this video</div></noscript></div> </div> <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script> </div>

You can now buy a replica of Mark Zuckerberg's crazy expensive plain grey t-shirt for $46

<img class="gwt-Image" src="/photo/56335629.cms" /><keyword id="410443" type="PERSON" weightage="20" keywordseo="Suhas-Gopinath">Suhas Gopinath</keyword> is a name to reckon with in the startup world today, except it's ironical that he started his own company at a time when the Indian startup industry hadn't even taken off. In no time, Gopinath-led <a href="http://www.globalsinc.com/">Globals Inc - an IT services company</a>, was minting profits worth over $1 million annually and had 11 offices worldwide. For a 14-year-old college student to grow a bootstrapped firm from a small home office to a globally recognized multinational company based on the simple formula - a company's outflow cannot be higher than its inflow - was no mean feat. 
 
But astounding success that would inspire Gopinath's entrepreneurial journey he is on today, really came when he was announced as the Youngest Global Leader in the World Economic Forum, Davos in 2008. From here started this Bengaluru lad's journey as the "World's Youngest CEO". There's no better way to learn about his inspiring journey than to <a href="https://www.youtube.com/watch?v=dyfMPsIe2uU">hear him talk about the challenges he faced</a>. 
 It's really no surprise that at the age of 22, a shy-natured Gopinath was sitting among the members of <keyword id="4028297" type="UNKNOWN" weightage="20" keywordseo="ict-advisory-board-of-the-world-bank-group">ICT Advisory Board of the World Bank Group</keyword> headed by the <keyword id="6354424" type="ORGANIZATION" weightage="20" keywordseo="World-Bank">World Bank</keyword> President, discussing ways to increase internet penetration in Africa and use ICT for skill development in India. 
 
As Gopinath enters a new phase in his entrepreneurial journey, Business Insider spoke to him about his second venture, how he plans on revolutionizing the retail space, what are his future plans and much more. ​Below is a lightly edited transcript of the conversation: 
 
Tell us about your new online-to-offline startup Shopsup. 
<a href="http://shopsup.com/">ShopsUp</a> is a location based shopping app which acts as your personal shopping companion. It will recommend what, when and where to shop, and help you find the right products and stores in your neighbourhood. Whenever you want something specific, you can discover exciting boutique stores close to your location as well as stores at popular malls and shopping streets including brands such as Van Heusen, AND, <keyword id="6377547" type="CITY" weightage="20" keywordseo="Adidas">Adidas</keyword>, Pepe Jeans, Raymond, Allen Solly among others. 
 
Who is your target audience? 
India is second largest smartphone market in world in terms of users and increasingly consumers are turning to mobile to discover and research fashion trends and discover exciting consumer items. We are trying to reach young Indian millennial consumers with smartphone and influence their behavior while shopping and discovering local stores. 
 
Why do you feel young Indian shoppers spoilt for choices online would prefer going to the local stores to make a purchase using Shopsup? 
We are focusing on offline brick and mortar stores because statistics show that 98 per cent Indians still shop offline. Consumers still desire a physical interaction with a product and the preference for a physical store as an element of both researching and purchasing, especially for categories such as Fashion, Furniture, Jewelry, etc. The idea is to empower shoppers with tools and technologies so that we can make local stores discoverable, induce shoppers to walk into these stores and influence them to make a purchase. 
 
How exactly are you planning to do that? 
For every walk-in, we incentivise the ShopsUp user. In fact, we are the first app in India to incentivise a user for a behaviour, like window shopping. Let's say you want to buy a linen shirt. If you search for it on ShopsUp App, it will locate the stores around you which have linen shirts. As soon as you walk into one of them, you will get SHOTS irrespective of whether you make a purchase or not. SHOTS are points which you can accumulate to redeem later for movie tickets, cab rides, spa, gift vouchers, food court meals etc. 
 
Would the user be required to install the ShopsUp App before walking into these stores? 
No. There's a low-energy Bluetooth beacon in every store. If your phone's Bluetooth is switched on, you will get a message saying you have received X number of shots. For you to be able to redeem it, you will have to install the app. 
 
...And why would stores partner with you? Apart from increasing their footfall, do they get any more benefits by partnering with ShopsUp? 
Within six months, one of the achievements we have made is to build a natural monopoly by acquiring every brand. 80 per cent of India's brands are with us. We have partnered with 60 brands and 400 boutique stores in Bengaluru so far. So, a ShopsUp user is as spoilt for choices as much as an online shopper and is better rewarded than them. 
 
To answer your question, brands want to be with us because they have a platform to re-target their customers. Also, stores do not have crucial data that can help them in taking the right business decisions. For instance, they do not know how many people walked into their store and how many out of them actually purchased an item. With Shops Up, they will be equipped with data that can help them identify which section is popular in their store, the frequency of their customers, how long does a shopper spend inside the store, what they purchase mostly etc. This data will help make the shopping experience more personalized. For example, ShopsUp will be able to predict that when person X purchases a Polo Shirt, it's very likely he also buys a denim. So, if he purchased a shirt a few days back, he will get a ShopsUp notification with a few denim options later. 
 Also, brands are excited because we offline re-target the customers for them. So, if you visit a Peter England store and then head to <keyword id="6392652" type="COMPANY" weightage="20" keywordseo="arrow">Arrow</keyword> without making a purchase, you will get a push notification reminding you to come back to Peter England and pick up the item you liked. 
 
We believe that the right offers delivered in the right context and right place can drive business for both organized as well as local retail establishments, and we are investing in analytics to offer best of the breed solutions to our partners. 
 
What compelled you to kick-start ShopsUp? Usually, if you want to buy something and you <keyword id="6355629" type="CITY" weightage="20" keywordseo="Google">Google</keyword> it, it will give you e-commerce website options. You cant wait for a product to be delivered when there's an urgency like a friend's wedding or mother's birthday. There are two reasons why one would want to buy anything online - either because it's inexpensive or you do not know where to buy it. 
 
Personally, I am a very impatient person when it comes to shopping. I need things quickly. So, I thought to myself - Is there any way one can have an omni-channel experience where I can do the same thing I do online, except I will have the option of going to the store and picking it up. Also, because fashion and lifestyle is a segment where you need touch and feel, this model made a lot of sense to me. Since we didn't have any such platform in India, this is where the idea of ShopsUp came from. 
 
How are you making money from this model? 
Starting from behaviour to action, we are incentivising our user at every step. But, we don't make any money with that engagement. We charge brands a very nominal percentage for shopping via ShopsUp, but most of our money comes from brands. They buy inventory from us. 
 
What are your plans for the near future? 
We really want to focus on the product and user experience because for the brands there is excellent value proposition. We also plan to build a shopping bot. 
 
So, if you haven't already started using ShopsUp yet, Suhas is offering you a new way to experience shopping. Get on to it, who knows you may get high on shopping like never before!

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