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ARMOUR HEAVY

TO BE THE NEXT LOCAL GLOBAL ATHLEISURE BRAND

India, Delhi
Market: Another
Stage of the project: Operating business

Date of last change: 13.01.2021
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Idea

The way we dress is disrupting. The dress code today is more relaxed at the same time has to look classy. There are no Indian 'performance wear' brands with a global appeal and outlook. ARMOUR HEAVY has the genetics to be a local global brand.

We launched our operation on Dec 15, 2020 and within 20 days have done INR 10 lakh in sales/800 products sold. ARMOUR HEAVY unlike other brands who use the colonial colours (Red & Blue) uses the 4 colours of the flag. It's by far the only Indian brand to decorate its apparels with the National Colours. AH is a company run by military veterans.

Current Status

Key Metrics.
1. ARMOUR HEAVY pre-launched its operations on Dec 15, 2020. In the last 20 days the company has done sales worth INR10,00,000.

2. We have partnered with emerging talent as influencers from the field of sports (all underdogs) who are our brand ambassadors on Instagram. We have a present following of 7000 on Instagram.

3. ARMOUR HEAVY is a military term given to a weapon system that is impenetrable. This nature of being invincible is being connoted with the underdog who is working hard today. The logo of AH is given the shaped of a shield. All rights of the brand (Digital, TM) are with Capt Rahul Rai.

4. The market potential of this local global brand is huge (Indian market is at USD 20 bn and world market is at USD 800 bn growing at 20% yoy) We envisage it to be among the Top 4 fashion brands in the next 5 years given that right investments come in. We foresee clocking over INR 200 Cr in revenue ($27 mn) in the next 5 to 6 years from global operations.

5. We are already speaking to potential partners in US and Japan who have shown interest to retail AH in these geos.

6. Not one Indian fashion athleisure brand has the appeal or genetics to compete with the big 3 (NIKE, ADIDAS, PUMA) or Tier 2 international brands. In a multi retail scenario, Indian youth does not even consider Indian players over these international players and they remain aspirational. The gap basically is that our local brands have not been designed with a global outlook. They totally fall short of being BRANDS that are driven by high sentiment, emotion and athleisure genetics. Both variables of quality and cost will run in our favor.

Market

India’s apparel market was to be worth $59.3 billion by 2022, making it the sixth largest in the world.
The global market for clothing and apparel reached a value of nearly $800 billion.

People in the age group - 15 to 65 are our immediate customers.

Problem or Opportunity

Vision:
To be the next local global athleisure brand.

Problem:
Not one Indian fashion athleisure brand has the appeal or genetics to compete with the big 3 (NIKE, ADIDAS, PUMA). In a multi retail scenario, Indian youth does not even consider the many players over these brands.

The gap basically is that our local brands have not been designed with a global outlook. They totally fall short of being BRANDS that are driven by high sentiment and emotion. Both variables of quality and cost will run in our favor.

The Indian customer has no credible alternative to the STAR & STRIPES, THE UNION JACK, THE REDS & BLUES . The market is dominated by high visibility American, British, German, EU driven brands that are mostly
MADE IN CHINA. The blue and red colonial colours dominate our fashion today. There is a strong inherent need to look modern but still stay close to the Indian way of things. People have started appreciating the aspect of identity that is very much Indian. AH has identified this untapped need, and will be the first Indian fashion brand to formally introduce National Colors in Indian fashion. This strategy is specific for the India geo only. We intend to treat the international markets differently per the fashion demands.
The local apparel industry does not address sentiment branding, which is a huge gap. In principle, brands need to be sentiment driven, they need to have character and emotion. Not one local player displays nationalistic sentiment or is driven by what the nation represents. I call them t shirt sellers not BRANDS.

Solution (product or service)

ARMOUR HEAVY is into athleisure and performance wear.
Key product lines being:
1. Men's Wear
2. Women's Wear
3. Patriot Collection
4. Kids Wear
Athleisure, Active Wear is a focus area.

Competitors

Director Competitors
Tier 1
Nike
Adidas
Puma
Under Armour

Tier 2
HRX
Being Human
Wrong
GymShark
Gorilla Wear
Alcis

Advantages or differentiators

Domestic Market -
Boycott of China & Chinese Goods - The total market size for fashion imports in India is around $50bn. This includes large and small players who are manufacturing in China and selling in India. It is estimated that these imports will get severely hit and will fall by 40% to 60%.
Promotion & Demand for Made in India Apparels - AH offers global quality at 50% less price points. The brand is holistically developed and will attract tremendous traction among youth.
Active & Life Style Wear - The aesthetics of AH are distinct and at par or better in most cases than its international competition

Domestic Market
In the domestic market the Indian customer has no credible alternative to the STAR & STRIPES, THE UNION JACK, THE REDS & BLUES. The market is dominated by high visibility American, British, German, EU driven brands that are mostly MADE IN CHINA. The blue and red colonial colours dominate our fashion today. There is a strong inherent need to look modern but still stay close to the Indian way of things. People have started appreciating the aspect of identity that is very much Indian. AH has identified this untapped need, and will be the first Indian fashion brand to formally introduce National Colors in Indian fashion. This strategy is specific for the India geo only. We intend to treat the international markets differently per the fashion demands. The local apparel industry does not address sentiment branding, which is a huge gap. In principle, brands need to be sentiment driven, they need to have character and emotion. Not one local player displays nationalistic sentiment or is driven by what the nation represents. I call them t-shirt sellers not BRANDS.

Finance

AH products start from INR 200 and go upwards to INR 5000.
We have 6x% margins in finished apparels.

Given the right investments, ideally USD 2 mn, AH can scale to USD 30 mn in 5 years.

Business model

AH for the first 2 years will be sold online from its proprietary site - www.armourheavy.com (Indian/Global) and via third party online vendors like Myntra, Ajio etc.

Channels of marketing will be heavy lifted via social media - Instagram, Facebook and Google Ads.

Opex - Our costing model:
1. Raw material sourcing
2. Manufacturing
3. Packaging and barcoding
4. Compliances
5. Legal
6. Social media marketing
7. Product development and cataloging
8. Logistics
9. Digital channels management
10. Office expenses
11. HR
12. Damage in inventory
13. Unsold inventory

Capex is negligible.
Finished apparels generally have a 6x margin.

Money will be spent on

COST STRUCTURE
Product Development - INR 72,24,000
Product Placement - INR 10,40,000
Online Promotion - INR 1500000
Office Running Costs - INR 31,00,000

YOY Growth – ~40%
5 Year Projection – $8 mn in Revenue (Global)

Offer for investor

YOY Growth – ~40%
5 Year Projection – $8 mn in Revenue (Global)

Planned exit in 5 years with 3x returns.
Royalty deal with 2% margin per product/per sale till first 5 years to rationalize investor initial investment.

Team or Management

Risks

The business of apparel is expensive and needs upfront investment. If we are not given the right investment on time (within 6 months of our operations) the business will be sluggish.
A min investment of USD 200K is required to scale the operations.

Incubation/Acceleration programs accomplishment

Not yet.

Won the competition and other awards

Not yet. We launched are operations just 20 days back on Dec 15, 2020.

Photos

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video