MAS Holdings' Own Label in August-07

Decides Against Buying Vanina Vesperini Brand

Sri Lanka’s US$ 2.5 billion clothing industry finally seems poised to make the transition from tailoring to also building brands. This is a subtle but very significant move. It is common knowledge that margins at the front end of the value chain, viz in retailing, are more attractive than manufacturing margins. However, exporters have steered clear of investing in building or acquiring brands, preferring instead to invest in less risky fixed assets. Until now…

Ajay Amalean, Managing Director of MAS Corporate Solutions, revealed that MAS Holdings intends to launch its own signature lingerie label in India. The launch is scheduled for this August, perfectly timed to capitalize on India’s Diwali season, which is characterized by high retail spending.

Amalean added, “India is a growing market and the Indian woman deserves better… Our basic philosophy is to cater to customers’ requirements.” He was speaking exclusively to the Sunday Times FT on the sidelines of an event recently.

“And what about the Sri Lankan woman?” we queried… The same label will be launched locally during October/ November this year, in time for the Christmas shopping spree. Amalean also indicated that some marketing elements would be in place by May, at which time he would be willing to disclose further details.

MAS was, until recently, in talks with Vanina Vesperini of France to buy her brand outright. However, Amalean disclosed that MAS has shelved that plan since, finding it infeasible. “We have decided against buying the brand”, he disclosed, “but will use her skills as and when we need designs.”

MAS Holdings, the largest supplier to Victoria’s Secret, has a presence in eight countries. With a turnover of US$ 700 million, it is Sri Lanka’s largest intimate apparel manufacturer. It has forged an international reputation for making upmarket lingerie.