Coverage of Kitex in US local media
Notes:
a) As we are aware, Kitex is looking to design its own clothing for the U.S. market, to be sold under its own brand, “Little Star,”
b) It has acquired exclusive rights to sell Lamaze baby clothes in the U.S.
c) The company opened a 4,000-square-foot office on Summit Avenue earlier this month, and officially launched it at a ceremony Tuesday attended by Montvale Mayor Roger J. Fyfe and local business leaders. The office has three employees, and expects that to grow to about 20, including executives, sales people and designers, in the coming months
d) Kitex is foraying into ‘design ‘ . Let’s see whether it can integrate its manufacturing capabilities with the not so easy aspect of ‘design’. ‘Design’ is completely a different ball game and generally success rate of new players isn’t very high.
e) As per the above link, company is opening its online website
f) Kitex USA will begin selling the Lamaze brand next fall, and Little Star the following spring
g) ‘Organic Clothing’ – It is foraying into this new trend. Need to understand / get info about it- how much sales Kitex is targeting/ cost and margins of organic clothing / Is it a future revenue segment or just an experiment / etc.
h) Linda Harmon, executive director Lamaze International–spoke affirmatively about Kitex regarding its manufacturing and production capabilities
Risks/ Key item to monitor–Creating its own brand would definitely pump up Kitex’s profitability but branding (esp in the land of Brands -US) is not everyone’s cup of tea.
As mentioned in the article, Indian and Chinese players in US suffer from a perception bias wrt quality of products.
Let’s see how things pan out.
Disclosure: Invested from lower levels
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