Videocon Group-owned retail format Digiworld is set to become a multi-brand retailer. It will now be pitted against sister company Next Retail.
Digiworld sells almost 90 per cent of the flagship company Videocon Industries’ consumer durable brands, while Next Retail has always been a multi-brand retailer.
With sales turnover of Rs 350 crore for this fiscal, Digiworld currently sells all the seven Videocon-owned brands such as Sansui, Kelvinator and Electrolux, and also mother brand Videocon.
“In the past couple of weeks, we completely moved away from just stocking Videocon brands. Next and Digiworld will now be competing with each other as both will be multi-brand retailers,” said Jaideep Rathore, Chief Operating Officer, Digiworld Value Industries.
Last year, Digiworld was positioned as a ‘smart neighbourhood electronics store’ which primarily stocked only Videocon brands. Going forward, Digiworld is expected to serve as the growth engine for the group’s retail foray. It plans to reach 1,000 stores from the current 428 stores.
Next Retail’s expansion, on the other hand, will be curtailed at 600 stores and restricted mainly to non-metros.
The retailer is currently relocating its stores to tier 2 and 3 cities.
“Both Digiworld and Next Retail will adopt the franchise route, with differences in operations,” added Rathore. While Digiworld would be buying directly from brand owners and have centralised buying operations, Next Retail would be decentralised in nature with no direct sourcing from vendors.