In the competitive world of men's innerwear, XYXX has emerged as a proud and homegrown brand that has revolutionized the industry. With its focus on innovation, quality, and affordability, XYXX has quickly become a favorite among the young and the young at heart. We had the pleasure of sitting down with Yogesh Kabra, the Founder & CEO of XYXX, to gain insights into the brand's journey and its plans for the future.

Since its launch in 2016, XYXX has experienced an incredible growth trajectory. Kabra takes us through the key milestones that have shaped the brand's success. In 2017, XYXX expanded its reach by launching its website and direct-to-consumer channel, making it easier for customers to access and purchase their products. The following year, XYXX entered the marketplace, further increasing its presence and accessibility. In 2019, XYXX made a significant move by launching its offline presence, reaching customers through physical retail stores. The brand's retail sales experienced substantial growth in 2020, solidifying its position in the market. In 2021, XYXX achieved remarkable progress with a 2x growth rate, indicating a strong demand and customer preference for their products. And in 2022, XYXX continued its expansion by launching exclusive brand outlets, providing a dedicated space for customers to explore and purchase XYXX merchandise.

The financial performance of XYXX has been equally impressive. In FY2022, the brand achieved a remarkable growth rate of 110% compared to the previous financial year. And in FY2023, XYXX sustained its growth momentum with a growth rate of 95% in comparison to the previous year. These numbers highlight the brand's strong competitive advantage in the market.

One of the key factors behind the success of XYXX is its emphasis on design and innovation. The brand plans to introduce the Silver Cotton-made range of innerwear, featuring exciting signature XYXX designs. Over the years, XYXX has garnered a strong presence with its wide range of cool design options, appealing to the younger, modern, and aspirational audience. With its focus on technological prowess, XYXX delivers exceptional quality, hyper-functionality, and affordability.

BRAND & ITS PERSONALITY

How different are you when it comes to your competition in the like to like category?

XYXX has established a strong competitive advantage in the men's innerwear category in India by leading the transformation of innerwear from a basic necessity to a fashion-forward and aspirational product. The brand's success is driven by its emphasis on product innovation and a robust supply chain.

Design: The brand plans to introduce the Silver Cotton-made range of innerwear, featuring exciting signature XYXX designs across multiple channels. XYXX over the years has created a strong presence with its wide range of cool design options in all the categories which appeal to the younger, modern and more aspirational audience. XYXX focuses on technological prowess to deliver exceptional quality, hyper functionality as well as affordability. Accessible innovation is in XYXX’s DNA

Retail Presence: XYXX aims to strengthen its presence in exclusive brand outlets (EBOs) in the both metro (Mumbai and Bangalore) and non-metro (Indore and Surat to open soon) parts of the country. With a focus on commanding shelf space, XYXX seeks to become the preferred choice for the new-age consumer, solidifying its position in the market. Strong retail presence - footprint of 20K stores for XYXX innerwear is one of our strong advantages over other D2C brands. Currently present in over 18,000+ multi-brand outlets, tapping a network of 150 cities

Omnichannel presence: Through its omnichannel approach, XYXX has effectively tapped into various sales channels, including general trade, modern trade, marketplaces, and direct-to-consumer strategies. By expanding both in scale and scope, XYXX aims to sustain its hyper growth trajectory.

Are you an aspirational brand for your consumer? Tell us about them.

As an aspirational brand, XYXX is dedicated to catering to the needs and desires of our consumers. Our target audience is the modern Indian man who is constantly seeking to elevate his lifestyle and express his unique style and confidence. We understand that clothing is more than just a basic necessity; it is a means of self-expression and a reflection of one's personality.

Through our high-quality clothing and curated collection, we empower individuals to embrace their individuality and make a fashion statement. Our products combine comfort, versatility, and elevated design, allowing our customers to feel confident and stylish in every aspect of their lives.

XYXX has been at the forefront of transforming innerwear from a mere necessity to a fashion-forward and aspirational product. We have achieved this by placing a strong emphasis on product innovation and maintaining a robust supply chain. By continuously introducing cool and trendy design options across all categories, we have successfully resonated with a younger, more modern, and aspirational audience.

In summary, XYXX is a brand that understands the aspirations and desires of our customers. We strive to provide exceptional products and an exceptional experience, creating a brand that appeals to the fashion-conscious and style-driven individuals who are on a constant quest to upgrade their lifestyle.

Innovation is the key driver. What have been your investments for future business?

Innovation has always been the core of XYXX's brand identity. It serves as the primary foundation for the brand's success, which is built upon superior craftsmanship, fabric innovation, and unparalleled design. XYXX has been at the forefront of introducing modal fabric to the masses, being among the pioneering brands in the country. I was deeply struck by the limited choices, lack of creativity, and monotonous colour palette prevalent in the industry. The absence of innovation in everyday clothing left a significant void that XYXX aimed to fill, leading to its establishment. Moreover, the brand has diligently worked towards offering a range of exceptionally comfortable outerwear, including shorts, joggers, t-shirts, winter wear, and athleisure, among others. XYXX's vision is to emerge as a leading lifestyle brand that prioritises consumers, thrives on innovation, and garners recognition for its exceptional quality, innovative fabrics, designs, and unwavering commitment to customer satisfaction.

Circular Fashion and Sustainability are the prime issues for a responsible brand in the market. What are your brand initiatives on this front with some latest examples?

XYXX is committed to addressing the prime issues of circular fashion and sustainability as a responsible brand. Our initiatives include eco-friendly packaging made from plant-based materials that can compost under specific conditions, as well as the use of recycled paper for cartons. We specialise in underwear, loungewear, and athleisure crafted from naturally-sourced fabrics, giving them a fashionably well-designed edge with cool colours, quirky prints, and stellar designs. By prioritising sustainable materials and promoting longevity in our products, we aim to minimise our environmental impact and inspire our customers to make conscious choices.

We partnered with actor, musician Aadar Malik for a new campaign ‘Risk free returns’ to highlight the risks of unreturnable innerwear. The brand has partnered with Clothes Box Foundation which will repurpose the returned products into upcycle fabric for useful everyday items. With the rise of D2C and e-commerce, we came to the conclusion that people are sceptical while purchasing innerwear online due to no return policies. Through this campaign, we not only highlight a pathbreaking move in the innerwear industry through our risk-free returns policy.

Technology is changing the very face of the Indian Fashion Industry. How has your brand evolved on this term both at the manufacturing and retail level?

XYXX has embraced the transformative power of technology in revolutionising the Indian fashion industry. Our brand has evolved both at the manufacturing and retail level, leveraging technological advancements to enhance our offerings and deliver a seamless customer experience.

At the manufacturing level, XYXX harnesses technological prowess to drive innovation and ensure exceptional quality, hyper-functionality, and affordability. We prioritise accessible innovation, making it an integral part of our brand DNA. By integrating advanced manufacturing techniques and processes, we consistently deliver superior craftsmanship, fabric innovation, and unrivalled design. As one of the pioneering brands in the country, XYXX has been at the forefront of introducing modal fabric to the masses, showcasing our commitment to staying ahead of industry trends.

Moreover, our retail operations have been transformed through technology. We recognize the importance of creating a personalised and convenient shopping experience for our customers. Through our online platforms, we have embraced e-commerce, providing a user-friendly website and a direct-to-consumer channel. This allows customers to easily explore and purchase XYXX products from the comfort of their own homes. Our digital presence has not only increased accessibility but also facilitated seamless transactions and efficient order management.

In addition to our online presence, XYXX has also expanded its offline retail footprint. We have employed technology to optimise inventory management, ensuring a well-stocked and diverse range of products across our physical stores. By leveraging data analytics and supply chain optimization, we enhance the efficiency of our retail operations, resulting in an enhanced customer experience.

Overall, technology has been a driving force behind XYXX's evolution in the Indian fashion industry. By embracing innovation and leveraging technological advancements, we continuously improve our manufacturing processes, introduce cutting-edge fabrics, and maintain a robust supply chain. We combine this technological prowess with our commitment to exceptional quality, comfort, and stylish design, resonating with a younger, more modern, and aspirational audience.

PRODUCT & ITS STRENGTH

Tell us about the key product categories and the bestsellers. What are your average price points?

Our product range is divided into three categories i.e .Innerwear, loungewear and athleisure.

-Innerwear: Briefs, trucks, boxers and vests

-Loungewear: T-shirts, pyjamas and lounge pants

-Athleisure: Joggers, track pants, shorts Average Price points of our top 3 categories:

Trunks – Rs 300

Briefs – Rs 280

Loungewear (Pyjamas & Boxers) – Boxers -Rs 450  Pyjamas- Rs 750

Share your product expansion plans.

XYXX is committed to expanding its product range to cater to the evolving demands of our customers. While we excel in innerwear, we consistently update our prints and designs to stay current and offer fresh choices. Additionally, we are excited to introduce our new silver cotton range, combining the benefits of N9 silver and superior cotton fabrics for enhanced comfort and hygiene. Furthermore, we are venturing into the athleisure segment with a fashionable and trendy A/W collection featuring cords, zip-ups, hoodies, sweatshirts, and joggers. These product expansion initiatives reflect our dedication to delivering exceptional quality, style, and versatility to our customers. To strengthen EBO presence across the west and south of India, we plan to launch several EBOs.

What’s new with the brand collection for the upcoming season?

We have two most awaited launches for the upcoming season. Modal innerwear range and launch of the New Silver Cotton innerwear range.

RETAIL MAPPING

Tell us about your key markets. Mention their names and define their retail spread.

XYXX has built a vast network of 18,000+ retailer partners across India, mapping a network of 150+ cities and towns. We currently have 30,000 physical touch points by February 2023, that includes 10 exclusive brand outlets.

According to the retail footprint, the below markets are the top 3 in India:

1.Maharashtra

2.Rajasthan

3.Karnataka

How important are regional markets for your brand? Do you plan something differently in accordance with its taste?

Regional markets hold significant importance for XYXX as they have experienced remarkable growth in recent years. Recognizing the potential in regions such as Gujarat, Rajasthan, tier 2 cities of Uttar Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, and Kerala, we have tailored our strategies to cater to the specific tastes and preferences of these markets.

To maximise sales and strengthen our presence, we have expanded our retail footprint in these regions. This includes the introduction of Large Format Stores (LFS) and the launch of Exclusive Brand Outlets (EBO) in key cities like Surat. These initiatives allow us to connect more directly with customers in these regional markets, offering them a personalised shopping experience and a wide range of XYXX products.

How many retail points do you have currently with its share of business:

How well have you scored online? How has this changed the business for you?

XYXX's online presence has been nothing short of exceptional. The Direct-to-Consumer (D2C) channel has witnessed remarkable growth, achieving a 4x increase in the past financial year. This growth is not only reflected in revenue but also in the channel's profitability, now operating at a positive CM2.

The online platform has also played a crucial role in building customer loyalty. With a significant 30% month-on-month rise in repeat customers, it is evident that our online strategy has been successful in engaging and satisfying our customer base.

In addition to our D2C channel, XYXX has established a strong presence on 14 prominent digital marketplaces, including Amazon, Flipkart, Myntra, Ajio, and others. Consistently ranked among the top 3 innerwear brands on these platforms for three consecutive years, our online success has solidified our position in the market.

What are your future retail expansion plans?

XYXX has experienced significant growth in its national omnichannel expansion, establishing a widespread network of over 18,000 retailer partners throughout India. This extensive network spans across 150+ cities and towns, and we anticipate a rapid increase in these numbers in the coming year. Our goal is to expand this network by at least 50%, aiming for a substantial presence in various regions. To achieve this, we have immediate plans to augment our fleet of Exclusive Brand Outlets (EBOs) and Multi-Brand Outlets (MBOs) in both tier 1 cities and emerging tier 2 cities like Surat. These expansion efforts will enable us to reach a larger customer base and cater to the growing demand for XYXX products in diverse markets.

Tell us about your export markets and international expansions.

While we have witnessed substantial success in our domestic omnichannel expansion, our vision extends beyond India. We aim to establish a global presence and cater to customers in various parts of the world.

What’s your current turnover and the growth you are expecting in the next 2-3 years? What’s your current market share and your aspirations?

XYXX's expected turnover stands at an impressive ARR of 150 Cr for the financial year 2023-2024. Building upon our past successes, we are confident in maintaining this growth trajectory in the coming years.

In the previous financial year, FY2022, our brand experienced exceptional growth, with a remarkable growth rate of 110%. This growth momentum continued in FY2023, with a sustained growth rate of 95% compared to the previous year.

With these impressive growth rates, XYXX has gained a significant market share and established itself as a leading player in the industry. Aspirations-wise, we aim to further solidify our market presence and expand our market share in the coming years. By consistently delivering exceptional quality, innovative designs, and superior customer satisfaction, we strive to become a top choice for customers seeking men's lifestyle products.

As we wrap up our interview with Yogesh Kabra, it becomes evident that XYXX is a brand driven by innovation, quality, and customer satisfaction. With its strong competitive advantage and unwavering focus on design and affordability, XYXX is set to continue making waves in the men's innerwear category in India and beyond.