### **Overview** Credo Brands Marketing Limited (CBML), established in 1998 by Kamal Khushlani, is the parent company of **MUFTI**, a leading Indian brand in the **mid-premium to premium men’s casual wear** market. Headquartered in Mumbai, MUFTI has evolved from a shirt brand into a comprehensive lifestyle label offering shirts, t-shirts, jeans, chinos, athleisure, outerwear, and accessories. Positioned as an expressive, creative, and bold alternative to conventional menswear, MUFTI targets millennial and Gen Z consumers who value individuality and style-conscious dressing. --- ### **Brand Positioning & Strategy: Premiumisation and MUFTI 2.0** **MUFTI is undergoing a strategic transformation known as *MUFTI 2.0***—a holistic repositioning aimed at establishing the brand firmly within the **premium segment** of India’s apparel industry. This evolution includes: - **Reinvented Brand Identity**: A refreshed visual identity with a Devanagari-inspired logo and the tagline *“Airborne since 1998”*, reflecting freedom, movement, and Indian authenticity. - **Premium Product Architecture**: Overhauled collections using **higher-quality fabrics** (e.g., linen blends, scuba stretch), refined silhouettes, and occasion-specific merchandising. - **Immersive Retail Experience**: Modern, minimalist flagship stores designed to create an experiential, rather than transactional, shopping journey. - **Strategic Store Rationalization**: Plans to open **~20 premium flagship stores in FY26**, located in luxury malls (e.g., Phoenix Palladium, Mall of India) and high-street areas, while phasing out underperforming EBOs. By FY27, the retail footprint transformation will be complete, prioritizing **quality of location over quantity**, with focus on Tier I and emerging urban hubs. --- ### **Product & Design Philosophy** MUFTI differentiates itself through **design innovation**, blending global fashion trends with **local Indian relevance**. The product range is curated around **four lifestyle-driven categories**: 1. **Authentic**: Daily casuals 2. **Relaxed**: Holiday wear 3. **Urban**: Party and night-out wear 4. **Athleisure**: Lounge and comfort wear This segmentation allows MUFTI to capture a **larger share of the customer’s wardrobe** and increase basket size by aligning offerings with multiple life occasions. - **Top Categories**: Shirts (40.4%), Bottomwear (38.2%), T-shirts (12.2%), Outerwear (6.5%) - **Innovative Lines**: - *Denim DeLuxe*: Premium comfort denim - *400050*: Streetwear-inspired, Mumbai-rooted collection from Bandra (pin code 400050) - *Mumbai-Inspired Collection*: Artisanal prints inspired by Gateway of India, Kala Ghoda, Gymkhana culture --- ### **Distribution & Retail Network** MUFTI maintains one of the **most extensive physical footprints** in the mid-premium to premium menswear space: - **1,841+ Retail Touchpoints** across **580 cities** (Nov 2025) - **443 Exclusive Brand Outlets (EBOs)** in **244 towns and cities** - 40% in Tier I and top 8 cities; 60% in Tier II and III - Formats: COCO, COFO, FOFO, and margin-model stores **Multi-Channel Distribution Strategy**: | Channel | Role | |--------|------| | **EBOs** | 56%+ of revenue; key for brand experience and visibility | | **MBOs (Multi-Brand Outlets)** | 1,288+ points; access to fashion-conscious consumers | | **Large Format Stores (LFS)** | 25% of revenue; partners include Shoppers Stop, Lifestyle | | **Online** | 11.4% of FY25 revenue; growing as strategic D2C engine | --- ### **Direct-to-Consumer (D2C) & Digital Growth** MUFTI is rapidly scaling its **D2C digital capabilities**, with online sales on **muftijeans.in** more than **doubling YoY in H1 FY26**. #### Key Drivers: - **Digital-First Marketing**: Strategic partnerships with **Google and Meta** for hyper-targeted advertising based on behavior, location, and interests. - **Omnichannel Integration**: Digital campaigns designed to drive traffic to both **online store and physical outlets**. - **Enhanced Online Experience**: Full-price parity with stores, controlled inventory, and seamless UX. - **Influencer & Community Building**: Collaborations with digital creators; user-generated content; behind-the-scenes storytelling to engage the ‘Muftisphere’ community. --- ### **Customer Engagement & Loyalty** MUFTI fosters deep consumer loyalty via **Muftisphere**, its proprietary loyalty program: - **2.5+ million customers** in the database (Nov 2025) - Offers **earned points redeemable for meaningful discounts**, structured as a material right to incentivize repeat purchases - Enables **personalized marketing**, targeted promotions, and new launch engagement --- ### **Business Model: Asset-Light & Risk-Sharing** Credo Brands operates on a **highly efficient, asset-light model**: | Element | Strategy | |--------|---------| | **Design** | In-house innovation (1,296+ designs in FY24) | | **Manufacturing** | Outsourced to **>50 partners** | | **Sourcing** | Network of **~50 suppliers** for fabrics and accessories | | **Real Estate** | Leased outlets (5–9 year terms) for flexibility | | **Inventory Risk** | Fully retained by Credo; unsold stock taken back from partners | #### Financial & Operational Advantages: - No material inventory write-offs in company history - Strong sell-through via **strategic repatriation** of unsold stock to online and outlet channels - ROCE of **~20%** and ROE of **18.2% (FY25)** – among the highest in the industry - Debt-free balance sheet; growth funded entirely through **internal accruals** --- ### **Supply Chain & Technology** - **Central Mother Warehouse**: 142,700 sq ft in Bengaluru, integrated with **ERP (Ginesys)** for real-time inventory tracking - **Dynamic Inventory Redistribution**: Across geographies based on demand patterns - **Quality Control**: Multi-stage inspections despite third-party manufacturing - **Tech Investments**: Focus on improving supply chain efficiency, IT infrastructure, and data-driven decision-making (ML-enabled demand forecasting, procurement analytics) --- ### **Marketing & Brand Building** MUFTI is significantly increasing its **brand investments** to support premium repositioning: | Fiscal Year | Marketing Spend (as % of Revenue) | |------------|-------------------------------| | FY25 | ~5% | | FY26 | 6–7% | | FY27 | 8–10% | | Post-FY27 | Expected to stabilize | - **Integrated Campaigns**: Across social media, billboards, OTT, cinema (e.g., *Home of the Expressive*, *Alternative Clothing*) - **Celebrity & Influencer Collaborations**: To amplify youth appeal - **Content Creation**: Scaled storytelling, behind-the-scenes content, and digital assets --- ### **Competitive Landscape** MUFTI positions itself **distinctly** in the premium casual wear segment, avoiding direct competition with denim-heavy brands like Levi’s or value-oriented players. Its peers include: - **Rare Rabbit, U.S. Polo, Spykar, Pepe Jeans** - Competes by offering **cohesive, ready-to-wear collections**, a **balanced product mix**, and **strong design narrative** ---