Mahindra Retail is relying on cost-saving options such as e-commerce and franchise networks to grow in the capital intensive retail business. Having crossed 100 ‘Mom & Me’ stores, the three-year-old speciality retailer intends covering 100 cities (from the current 45 cities) with the franchise route.
“Retail is not an easy business and since we want to be in at least 100 cities, e-commerce and franchises will be a cost effective way of doing business,” said K. Venkataraman, Managing Director, Mahindra Retail.
After having 100 company-owned stores, two franchise stores were launched in Coimbatore and Delhi recently.
The retailer is also integrating its e-commerce operations with its physical stores to expedite sales of products especially those stock keeping units and variants which may not be readily available at stores.
“There may be physical constraints at the store in stocking certain items, and so orders can always be placed through the e-commerce site at the store itself. E-commerce would help improve assortment and reach our consumers easily which is not always possible via the physical stores,” says Venkataraman.
Differentiating itself from the rest of the retailers, ‘Mom & Me’ has forged special relationships with companies such as Mattel, Fisher Price and J&J to make products specifically for its stores. Besides, it also has licensing arrangement with players such as Disney for making apparel for kids.
“While we have our private labels, there are also licenses with other brands. The license with Disney is for clothing in the age group of 0-4 years. With this license we can sell to others. There is an assortment of brands, some are exclusive to us and this is what differentiates us from other departmental stores,” he adds.
With a host of international retailers such as Zara and Gap also entering the kids segment, the retailer is planning to have exclusive tie-ups with foreign brands.
Meanwhile, it has also entered the pre- and post-natal services area by tying up with hospitals such as Cloud Nine in Bangalore and Fortis and Max in Delhi. It has branded services under Mom’s Lounge in some of these hospitals to cater to kids and mothers. It is also doing a pilot concept of toys store under the brand Beanstalk in the southern markets.
purvita@thehindu.co.in