New Delhi: Homegrown loungewear and comfortwear brand Sweet Dreams has opened its 50th exclusive brand outlet (EBO), doubling down on its offline strategy.
Founded in 1989, Sweet Dreams operates across the athleisure, sleepwear, innerwear, and kidswear segments.
The company’s chairman and managing director, Hitesh Ruparelia, said the EBO model is a crucial lever in the company’s shift toward premiumisation and higher-margin growth.
“Today, around 11% of our sales come from EBOs, and that number is set to grow. These stores offer significantly better gross margins—well above our company average of 28 to 30%—because we’re not dependent on middlemen, and we can control pricing and discounting more effectively,” he said.
Sweet Dreams has maintained a year-round, non-discounted range across all its outlets, a move Ruparelia said has helped reduce average discounting. “Consumers today are willing to spend Rs 500 to 1,000 more for quality and comfort. Trade might still focus on discounted pricing, but the modern consumer demands value,” he added.
Online sales now contribute 15 per cent to the business, with the brand’s website clocking about Rs 50 lakhs a month in revenue.
The company, which raised Rs 64.98 crore through its public offering last year, is well-capitalised and profitable, with no immediate need for external funding to fuel its EBO rollout, Ruparelia stated.
