Ethnic stores stepping out of corners to national highway

LOCAL ethnic-wear players have had enough of that ‘local’ tag. Like modern big-format retailers, they too have sniffed big bucks in the Rs 47,500-crore organised retail. They’re now moving out of their Casbahs, into the national reckoning riding on their freshly-minted pan-India branding. And most of all, they’re ramping up with the conviction that the Wal-Marts, Pantaloons and Reliance, can in no way come in their way. Be it New Delhi-based Chunmun Stores or Bombay Selections, Mumbai’s Jashn or Biba, or for that matter even Chennai’s Sree Krishna Collections (SKC), it’s all about unheard of revenue multiples and enhanced shop floor covering the length and breadth of the country. While some have taken to abbreviated branding exercises, others like SKC are focusing on multi-locational vantage points in single markets. Be it in malls or standalone structures, the locals are getting vocal. “The threat that the retail biggies pose to the momn-pop formats has resulted in them carving a niche for themselves in the retail segment. A retailer who has been in this business for many years, does understand the psyche of the consumer much better than the new entrants,” claims Noshe Oceanic Advertising president Asheesh Sethi. Mr Sethi’s ad agency specialises in ethnic wear advertising for the past couple of decades. Delhi-based Chunmun Stores, for instance, started out in 1979 as a 300 sq ft kids wear shop in the Capital’s congested Lajpat Nagar area. Today, they have four stores in the NCR region and eight more are in the works across northern India. “We’d like to focus on north India for the next two years and then roll out nationally,” observes Chunmun Stores MD Sharad Suri. Mr Suri’s stores now sports a new ‘CNS’ logo and covers more than 90,000 sq ft across four locations. “By next year, we’ll occupy more than 3.5 lakh square feet and are targeting a Rs 200-crore turnover,” says Mr Suri, the voice of a Rs 60-crore brand today. Considering that only three years back, the turnover of the company was a mere Rs 3 crore, the CNS story just got bigger. And how? “There are certain seasons where others can’t compete with me because it’s too short a shelf-life for them to work on. I know the seasons and the sub-seasons and can customize apparel according to them, but big retailers work on volumes and adopt a play-safe approach,” reasons the 25-year-old Chunmun Stores’ 44-yearold managing director. Likewise, Delhi-based Bombay Selections has eight shops in north India covering 40,000 sq.ft. and planning 10-15 more in the NCR region via the franchisee route. The aim: A turnover in excess of Rs 300 crore and 1.5 lakh sq ft by 2008. “We’re also planning a pan-India and overseas foray,” claims its 37-yearold director, Ashok Chaddha. When it comes to competing with big retailers, Mr Chaddha sports a knowing grin. “In ethnic wear, we have an intrinsic strength in procurement and knowledge of customized choices. Moreover, we have 25 years of experience in the trade,” he adds. To highlight his point, Mr Chaddha points to two of his stores in Delhi — one in Rajouri Garden where predominantly Punjabi customers prefer to buy salwar suits, and another in Pitampura, “where the local crowd”, would typically pick up sarees. “We know the pulse of the market and the procurement methods,” came the repartee. The Mumbai-based Jashn brand came into being in 2000. An offering from Lucknow-based Modern Silk House, Jashn’s promoter Chander Jashnani, realised the two most vital pivots for marketing women’s wear — premium and value. “Today, we have ‘Jashn’ at the premium end of women’s apparel while ‘Oh, My God!’ makes up our discounted segment,” says Mr Jashnani. Both brands occupy 45,000 sq ft of retail space and by the end of the financial year, it hopes to cover 75,000 sq ft across Delhi and NCR, Mumbai, Pune, Surat and Hyderabad.

Courtesy: EconomicTimes
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