Mohanlal Sons is a name synonymous with tradition and quality in Indian retail. The company traces its origins back to the pre-independence era. Founded in 1881 by a British couple, Mr. & Mrs. Clark as a small design house for men, the heritage brand was acquired by Lala Mohanlal Ji in 1945. Since then, the bespoke tailoring and draping house has been passed down from generation to generation.
Over the years, Mohanlal Sons has faced many a storm but has always managed to emerge stronger. The brand has evolved through various business models, adapting to market dynamics and consumer preferences.
In an exclusive interview with IMAGES Business of Fashion’s Kajal Ahuja, father-son duo Manoj Agarwal, Partner & MD & Mayank Mohan, Partner & CEO, Mohanlal Sons share their brand’s tale of evolution, take on the evolving men’s Ethnicwear market in India, and more.
Legacy & Foundation
Mohanlal Sons is the oldest retailer in the country – the brand traces its roots to the pre-independence era when Mohanlal Ji took over the Clark’s business in 1945.
It started as a bespoke tailoring and draping business and later evolved into the largest Multi Brand Outlet in India selling premium brands like Van Heusen, Louis Phillipe, Color Plus, Zodiac, Arrow, etc. for many years.
Strategic Shift Amidst FDI Policy Changes
The introduction of Foreign Direct Investment (FDI) in India marked a turning point for many Indian brands and Mohanlal Sons was no exception. When international brands like Louis Philippe and Van Heusen started acquiring prime retail spaces, the future for the MBO format seemed uncertain. “Earlier we were only a few stores selling their products, then brands started opening their stores left, right, center. We thought the future would be very bleak for us if we did not change our strategy,” says Manoj Agarwal.
“We hired a renowned agency to help us chalk out what is going to be our future. So the study came out that if we do not change from an MBO format, ultimately we will become a wing of the premium brands that we were selling, while losing all the goodwill we had earned in so many years,” he continues.
To safeguard their legacy the brand decided to pivot on their own. They decided to transition from a multi-brand outlet (MBO) to focusing exclusively on ethnicwear and customisations, a niche that multinational companies could not easily replicate.
Factors Driving MBO to EBO Transition
“It was not an expandable model,” says Mayank Mohan when asked about the key challenges they faced that led to the transition. “It was a good model if you own your own store or two. But it was hard to compete with the brands because they were offering 25% margins and significant sales in their own stores. Ultimately, customers seeking brands like Louis Philippe would prefer their dedicated stores,” he says.
To survive and thrive, they had to invest in their own brand. Considering at that time, no one was seriously focusing on the men’s ethnicwear category they decided to transition.
Another key factor that made Mohanlal Sons transition from an MBO format to their own brand was the volatility in the formal menswear market led by brands like Madura. Big brands started to put heavy discounts and undermined the market leading customers to wait for sales to purchase. This focus on turnover rather than profitability caused volatility in the market.
Embracing Ethnicwear & Customisations
Despite initial setbacks, Mohanlal Sons’ bold decision to transition to ethnicwear and drop international brands paid off. By leveraging their heritage, adaptability, and customer-centric approach, the brand was able to carve a niche in the ethnicwear market. They paid a keen focus on competitive pricing and customisations that has allowed them to stay ahead of global and local competitors.
“We have evolved. That is why we survived and strived for over 100 years because we have constantly changed our business model,” says Mayank Mohan about the transition.
Product Development & Innovation
Drawing inspiration from global retail giants like Zara, Mohanlal Sons has adopted a rapid product development cycle. Like Zara, their ability to introduce new designs weekly, tailored to current trends, ensures that their offerings remain fresh and appealing.
“We try to bring whatever is the most in demand product to the racks as soon as possible. We stay ahead of trends and seasons and predict styles that will be in trend in each season. This is also what sets us apart from our competitors. We follow the Zara way of working and we try to make it in our stores in less than three months,” says Manoj Agarwal.
To which Mayank Mohan adds, “We use our smaller scale to our advantage in that the big brands have to produce in thousands while we focus on creating a curated collection. Every week you will find some new designs in our stores. Because we are in the celebration wear category where fashion is key and no one wants to wear last year’s fashion, so we are very quick to adapt.”
This approach, combined with their bespoke services has made Mohanlal Sons a preferred choice for customers seeking high-quality ethnicwear. The brand excels in providing both ready-made and bespoke options with bespoke contributing 20% to their sales.
Market Presence & Expansion Plans
Currently, Mohanlal Sons operates 34 stores across 20 cities in India, with a significant presence in North India and select locations in Bengaluru, Indore and Pune. All stores are COCO at present but the brand is planning to explore the franchisee model as well to further grow its presence across the country at a faster pace.
Manoj Agarwal notes that the major players in the market typically use the franchise model due to its scalability. “We have grown from a single store to 34, with more in the pipeline, but to reach 100 or more, we will need to adopt franchising,” he says.
However, Mayank Mohan emphasises the need to be selective before onboarding new franchise partners because his family name is attached to the business. “The reputation is much more important than the top line any day,” he says.
As for digital presence, Mohanlal Sons is present on all major online marketplaces including Myntra and Ajio. A recent revamp of their e-commerce platform has also ensured that all styles which are present offline are also available online.
“In terms of contribution of sales, online is still low – single digits – but it helps customers in exploring our products. Most customers today first browse online and visit stores only if they like what they see, especially Gen Zers and Millennials,” says Mayank Mohan.
The brand leverages its digital presence to push its offline sales. “Our website helps in terms of customer discovery, especially in the newer cities in which they are opening new stores. More than the online sales, it has actually helped push our offline sales,” he explains.
Digital & Marketing Strategies
1. Store Openings: Each new store opening is marked by a significant event, such as a fashion show or the traditional Pagdi Rasam ceremony. These grand openings are designed to attract new customers to the store for the first time, relying on product and service to retain them.
2. Seasonal Campaigns: Mohanlal Sons’ marketing campaigns are aligned with major seasons and festivals, including Diwali, wedding season, Holi, Eid, and Christmas. Being an ethnicwear brand, it emphasises celebrations in its marketing strategies.
3. Promotions: Instead of long sales, the brand conducts short-term promotions that typically last for 2-3 days. These promotions are primarily focused on customer engagement.
4. Digital Marketing: The brand uses micro-influencers in different markets, particularly when opening new stores, which has proven effective for them.
5. Celebrity Tie-Ups: Collaborations with celebrities in various markets have helped Mohanlal Sons enhance their brand visibility and appeal.
Growing Men’s Ethnicwear Market
The men’s ethnic wear market is poised for significant growth, driven by increasing demand for wedding and festival attire, according to Mayank Mohan. “After the Manyavar IPO, many brands have entered this sphere. A lot of major national players like Aditya Birla, Tata, and Reliance are also trying to get into the ethnicwear space and some regional players are trying to scale up. Even some casual brands like Killer and Monte Carlo are entering the ethnicwear segment. There is going to be a lot of clutter and competition, but eventually, only a few players who do it right and do not burn a lot of money will survive,” he opines.
While the market is becoming competitive, Mohanlal Sons remains confident of its products, services and business model. “I think there will be some pain in the short run, but in the medium to long run we are very optimistic that we will end up being, in ten years’ time, as we are today, one of the major players in this industry,” he states. He believes that their commitment to quality, customisation, and sustainable growth will keep them at the forefront.
Financial Performance & Growth Projections
Mohanlal Sons is on a trajectory to grow by over 20% annually. Its sustainable business model and strategic expansions are expected to drive this growth, solidifying its position as a market leader in the men’s ethnicwear segment.
Advice for Aspiring Entrepreneurs
For those looking to enter the fashion industry, Mayank Mohan advises that the key to become successful in the fashion business is to focus on a sustainable and relevant business model. “Young entrepreneurs need to prioritise the bottom line over the top line, ensuring that the business can thrive in the long term without compromising on quality or customer satisfaction,” he concludes.
