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Business Model
Certainly, there are many models to choose from: manufacturing only, retail only (through 60-odd MBOs like Ensemble or Ffolio), retail and manufacturing, or finance only (investment in the brand by a partner). Then there's Victoria, a seamless mall, where Pantaloon will take care of the front end, and designers can lease space.
But a `retail only' model is a low-risk model for the retailer, without much investment in the brand, or involvement by the designer.
Financial Planning
Each outlet would break even at sales of Rs. 10,000 / per sq.ft / per annum. Despite a fairly high stock turnover of 8 to 10 weeks, the company is working hard towards bringing it down further. They do have a margin of 25-30% in their apparel & non-food segments.
The reason for going in for mega stores in contrast to several smaller franchised outlets is the company's expanded product portfolio.
Range Planning
The Stores have entire range of Menswear, Womenswear, Kidswear, Activewear, Accessories, Cosmetics, Fragrances, Homeware, Jewellery, Toys, Books, Music, Stationery, Gift & Novelties. Brands like Pantaloon, Bare, John Miller, Colorplus, Levi's, Pepe, Adidas, Reebok, Lee Cooper, Lovable, Jockey, Yamini, Dreams, Estelle, Gili, Spectacular, Zodiac, Revlon, Lakme, Maybelline, Chambor, Baccarose, Woodlands, Nike, Rayban, Parker, Espirit are available.
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* Contributed by -
Manasi Panigrahi,
Pursuing MBA, Batch of 2006,
ICFAI Business School, Hyderabad.
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