Apparel September 2019 Apparel September 2019 issue | Page 55

is conceptualised by and the training of the staff
is done by the brand so that there is uniformity
across all its stores and the brand ethos is
maintained. The asset-light model is something
that almost all businesses have to come to rely on
as investment on the part of the company
is limited.
Finding resources to set up hundreds of
traditionally designed stores over two years
requires major financial investment and there
is pressure to get returns on the same. On the
other hand, measures such as utilising existing
inventory or the space of an entrepreneur, and
providing customers with those services that form
the core strength of the brand make it a win-win
combination for the two.
THE RAYMOND STORY
The mini TRS, as the company has explained
both in its various releases and annual report
hinges, is an extremely smart and strategic
move to expand aggressively without equivalent
investment. With the tagline being ‘Har Shehar
Mein Raymond (Raymond in Every City)’, these
asset-light Raymond shops are being launched
in Tier IV and Tier V cities and towns in India, in
emerging locations with an untapped potential.
The company has relied on the fact that as
per the 2011 census, in India, there were over
1,200 urban towns with a population of above
50,000 that could support an exclusive brand
store. Raymond is present in over 400 of these
as of now. It has employed the concept of
modular design, best retail practices, execution
of capabilities, and integrated digital omnichannel
skill sets.
In these mini stores, the company has made
available an interesting mix of ready-to-wear
products, fabrics, and services such as custom
@Shutterstock.com
@Shutterstock.com
FEATURE
THE MINI TRS, AS THE COMPANY
HAS EXPLAINED BOTH IN ITS
VARIOUS RELEASES AND ANNUAL
REPORT HINGES, IS AN EXTREMELY
SMART AND STRATEGIC MOVE TO
EXPAND AGGRESSIVELY WITHOUT
EQUIVALENT INVESTMENT.
tailoring. The price range works well with the
area’s price sensitivity. Customers can also
access the website to view and order other
products offered by the brand. The company also
trains and lends ongoing support to its franchises
to make them profitable ventures.
THE BOTTOM LINE
Thanks to this new-age modular design, the
execution time of the project has reduced
drastically to 45 days as opposed to the usual
90 days after signing the franchise agreement.
Modular designs can be accommodated within
existing shop dimensions; pre-fabricated fixtures,
along with other similar elements, help in effective
rollouts. All these factors provide the brand with
good return on investment (ROI). Unlike traditional
shop formats requiring an investment of over R2
crore, mini stores require an investment of around
R40 lakh, hence also offering entrepreneurial
opportunities to several.
Changing times call for innovative solutions and
strategies. Mini stores may just be the next in line
to revolutionise the retail landscape of the country.
Only time will tell.
APPAREL
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September 2019
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