Apparel Online India Magazine March 1st Issue 2019 | Page 46

N E W S O L U T I O N S F O R N E W A G E R E TA I L
communities getting collaborative, well-connected, adaptive
and data centric, it calls for dynamic leadership. Focus should
be on strategic thinking, driven by disruptive and innovative
ideas; inculcating ‘change leadership’ practices that emphasize
on dynamic leadership, skills enhancement and cultivate a
culture of empowerment, experimentation, innovation leading
to continuous learning. Most importantly driving – agility,
entrepreneurial mindset, curiosity, imagination and digital
coherence as the new age skills sets for the organization.
FASTEST & WIDEST ROLLOUT OF STORES
Evolving from concept to proven model of business with Mini
TRS, we are expanding our footprint across Class IV & V
markets in the country. With over 800 potential emerging
markets, we have leveraged the early mover advantage in these
emerging markets ahead of any other premium menswear
brands, while creating a large pool of franchisee entrepreneurs
across India.
We have taken on an audacious goal of opening 300 TRS by 2019.
Under the vision of #HarSheharMeinRaymond, we have already
rolled out over 240 stores in past 20 months. It took 60 years for
us to open 700 Raymond Shops, but with our new business model,
we are now opening one store every day, that’s a ‘hockey stick
approach’ for our business.
There are emerging towns’, and thanks to the digital exposure
and access to information through handheld mobile device,
consumers in these markets have high aspirations. We have
discovered that while they have disposable incomes, but hardly
any avenue to spend. So, when there was a special occasion
in the family, they would travel to larger cities to shop. When
we setup our stores in these markets, the response we got was
tremendous, way ahead of our expectations.
AGILE BUSINESS MODEL
Mohit Dhanjal
Head Retail, Raymond Ltd.
R
aymond has always kept its customers at the heart
of its strategy and brought it alive by leveraging the
entrepreneurial spirit of its channel partners. The success
formula behind its rapid growth can be attributed to the new
retail business model called ‘Mini TRS’. The concept has also
created new entrepreneurs, who ventured into the world of men’s
fashion & lifestyle. Thanks to its strong brand equity and proven
retail legacy in this exciting category of fashion and apparel.
The surge behind our successful yet fastest roll out of stores
is our Agile Business Model, which takes into account the
consumer nuisances and market dynamics. As early as in 2008,
we realised the importance of emerging markets beyond Class
I. Between 2009-14, we gradually expanded our retail presence
to cover all Class II & III markets. For next level of retail
expansion, we felt a need to evolve and develop a new retail
business model with right consumer proposition for the emerging
Class IV & V towns.
India is a vibrant country with a rich culture and has all the
right ingredients for exponential growth through its large
consuming population, skilled labour, unique heritage, and
growing markets. It is this diversity, which gives us ample
opportunities of ‘winning in many India’ by leveraging the
potential of its vast markets and by developing unique business
models. Through this, it will address consumer needs and
convert the quantum of challenges into opportunities. Based on our deep knowledge of over 60 years in retail, in
September 2016 we piloted a new format which was then perfected
over 6 months and commercially launched in March 2017. The first
Mini TRS opened on 25 March 2017 in Bihta (Bihar). Since then,
over 240 TRS’s have been rolled out in the last 20 months. The
new Asset-lite model requires an investment less than 1/3rd of a
regular TRS, which provides necessary fuel to make the business
highly profitable in these emerging markets. The Agile design
and modular interiors ensure that the stores are set up within 45
days, instead of regular 90 days. And, taking into the account the
challenges of retail space, the store format has been optimized to
600-1200 sq. ft. basis availability of retail inventory in these towns.
In today’s VUCA World (we define it a little differently –
Vibrant, Unreal, Crazy, Astounding) with our businesses and The Mini TRS model proves to be the most promising one for
emerging markets that are driven by the external factors like
46 Apparel Online India | MARCH 1-15, 2019 | www.apparelresources.com