Page 30 - Images Retail January 2018
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         up merchandise from a store   In case of brick-and-  little bit of risk for you don’t   best of quality at aff  ordable
         if that is convenient. If not, we  mortar stores, do you have  know how soon they are   rates, making us formidable to
         can deliver the products to   a location preference?   going to be open to public,   the competition.
         the consumer, at his doorstep.  We prefer to open Soch   whether their cinemas, FEC
         We plan to roll this out in all   stores on high streets, but   zones and food courts will   Tell us about the growing
         stores very soon.         unfortunately in every city   be good enough to attract   competition in your
           Apart from this, we actively   there are only three or four   crowds. A lot depends on   segment.
         capture and study customer   streets which are workable.   these elements.   Luckily, in our space, there
         data, and track customer   Th  e advantages of being in a   However, if we want to   is not much of competition.
         buying patterns online as   high street are that retailers   grow more, the only way is   We are an Indian ethnic wear
         well as offl  ine. Of course,   more or less know how much   to go malls. In India, around   brand and even if four or fi ve
         we are still in the process of   business they are going to   100 malls are coming up in   brands like Soch emerge,
         refi ning all these techniques,   do. When you sign up for a   another two years. Out of   there is enough scope for
         but we are vigorously working  mall, which hasn’t even been   these 100, there are 25-30 that   growth for all of us. When
         towards achieving them.   launched, you are taking a   are brilliant, and we would   you consider the women’s
                                                                                      ethnic wear segment – since
                                                                                      we haven’t branched out
                                                                                      into any other segment yet
                                                                                      – approximately 10 percent
                                                                                      of the share comes to the
                                                                                      organised sector, which
                                                                                      means huge scope for growth
                                                                                      for us and our competition.

                                                                                      What are your expansion
                                                                                      plans?
                                                                                      We are at a stage right now
                                                                                      when we don’t need to raise
                                                                                      funds for expansion. Our
                                                                                      internal growth, luckily,
                                                                                      is enough to fund any
                                                                                      expansion plans that we have.
                                                                                      Since we are also using the
                                                                                      franchise route to expand, we
                                                                                      don’t need much in the way of
                                                                                      investments. Th   e plan to keep
                                                            like to be in all of these. At   expanding with the franchise
                                                            the moment, we have 48 high   model.
                                                            street stores and are present
                                                            in 54 malls.              What is your expected
                                                                                      turnover?
                                                            What is your pricing      Soch expects to earn a
                                                            policy?                   revenue of  `425 crore in
                                                            I think if you compare our   2017-18 and is targeting
                                                            range of the products, we   a growth of 40 percent on
                                                            are cheaper than most of   that in 2018-19. Th e Indian
                                                            the brands in our space with   womenswear market was
                                                            quality which is as good as   estimated to be worth
                                                            the competition, if not better.   `1.128 trillion last year and
                                                            Since we also manufacture   grew at a compound annual
                                                            some, we know the costs   growth rate (CAGR) of 11.4
                                                            of manufacturing when     percent between 2011 and
                                                            we go to buy from outside   2016, according to data from
                                                            manufacturers in bulk. And   research fi rm Euromonitor
                                                            since we are able to strike   International. And Soch
                                                            the best of deals with our   believes they are perfectly
                                                            suppliers, we manage to off er   poised to grow bigger than
                                                            our products to consumers the  what they are today.

        30 | IMAGES RETAIL | JANUARY 2018
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