Page 18 - Images Retail January 2018

SUCCESS STORY

government, which has the brand is more human-
lived up to its promise of oriented and scaling up
‘ease of doing business’. becomes a very diffi cult
Unfortunately, for now GST scenario. Indian cuisines
has not been very successfully are chef-based rather than
implemented, but in the long a factory procedure on
run, it will certainly benefi t most of the occasions. But
the retail community at large. brands like McDonalds
I think we have arrived at and StarBucks, don’t need
an appropriate moment in a qualifi ed chef to make
India. We know it would not their products. A human
be smooth, and expected and machine combination
a lot of confusion initially, fulfi lls all needs. We need to
but were confi dent that as start thinking about creating
days passed, we will settle a fi ne mechanism of easy
in, and that’s exactly what is maneuverability and making
happening. Once we are fully Five Years from Now I DON’T SEE procedures or we will fi nd it
settled in, I am confi dent we Although e-commerce has a HAMLEYS AS A hard to expand our brands
will see a much faster rate of strong presence in India, we COMPETITION, I SEE across India.
expansion of our retail arm at Tablez totally believe in
across India.. the brick-and-mortar model THEM AS A DEFINITE The Indian Toys Market
of expansion. Th e traditional PARTNER IN Hamleys has 60 outlets across
Diff erence in Approach Of model of retail is here to MAKING A BETTER- India and we have one. It’s a
Tier I & II Cities stay, and I think the story of ORGANISED TOY huge diff erence. Th e entire
Th e Consumer Approach: Indian retail will continue to SECTOR IN INDIA. toy market business is 90
We chose Kochi because be written around brick-and- percent unorganised in India.
the dynamics of the entire mortar in the coming 10 to 20 IN FACT, WE NEED Combining Hamleys and
group is based out of Kochi years. I am very confi dent and MORE PLAYERS other multiple toys store
and that made it easy for us bullish on this factor for many LIKE HAMLEYS IN throughout the country would
to enter through that route. reasons, one of them being A COUNTRY LIKE not even constitute 10 percent
Kochi despite being a Tier II that every relevant piece of of the toy segment in the
city is a net consumer state. data shows that e-commerce INDIA country. So, I think there is a
Th e consumption level is is a medium of penetration large space for any organised
quite high there. In terms of only in Tier II & III cities had committed in 2014-15. A toy retailer to come and
sales, we see that it is pretty where actual shopping malls second round of the funding create a much more favorable
much the same as any other are not present or in markets will be on the cards starting industry here. I don’t see
metro in India. We have not that bigger brands can’t 2018. Hamleys as a competition, I
touched Mumbai and Delhi penetrate. Once we develop see them as a defi nite partner
so far, so I can’t quote those a strong base of shopping Competition: in making a better organised
numbers but in comparison malls across India, then I Coming of international toy sector in India. In fact,
to Bengaluru, Kochi has been think more and more brands brands into India is not a we need more players like
pretty much the same.. would like to be physically bad thing. Local brands can Hamleys in a country like
present in these towns rather study them and fi gure out India.
Th e Company Approach: than digitally present. So, in what’s working for them in
Since our entire business plan fi ve years, we see us opening terms of new trends, sales and Projection for the Current
was made in the pre-GST era, more stores. marketing styles. It will help Financial Year &Revenue
we didn’t jump into building organise the Indian market Targets
a central warehouse in every Investment & greatly. I think it is very early to
state. We moved rather slow Infrastructure If we look at the F&B comment on this because
and believed in a natural Around 80 percent of the scenario, the majority of most of our brands are new.
progression from down money that we need to build the brands originates from Our F&B segment, which
South to the North of India. malls and open more stores USA and the reason behind was launched just a couple of
Currently, with the fl exibility in India has already been this origination is that they years ago, has seen a double-
of not wanting to have a pumped into the market and follow certain policies and digit growth. We are very
warehouse in each state, our in next couple of months, we procedures. Th e entire happy with those numbers.
expansion plans have become would pretty much put in the production cycle is so well We strongly believe that 2018
much easier to implement. entire amount of `300 crore in planned that it scales up should see us as `100 crore+
the Indian market, which we the brand easily. In India, company.

18 | IMAGES RETAIL | JANUARY 2018