prices in fusion wear segment have seen significant correction, says ajay kapoor

by:Rocket PCB     2019-12-20
Interview the president-
Retail, the center of the Fabindia, which launched the Fabindia, has given the brand a lot of visibility in the market, and the company now hopes to go further.
It plans to open large format stores in heritage sites, especially in South India. , president -
Retail, Fabindia, talked about the overall business, operational challenges, retail expansion, etc.
The non-monetization and introduction/implementation of GST is undergoing a major shift (GST).
Given the type of material we operate, its sourcing is done from many small players.
This is a very new thing for those working at this level.
It took us some time to put our actions in place.
But now we\'re back.
Procurement basically starts with a cluster.
These products come from different product clusters.
Our furniture, for example, will come from chutpur.
Amroha and Chanderi have clusters of many cloth sources.
Therefore, GST, as a mechanism, should happen a lot of input credit.
It took them some time to understand how to do this.
The second thing is the tax rate on goods and services.
Like the furniture category, it was originally 28%, which had a slight effect on market sentiment.
However, when the GST tax rate for different types of furniture is reduced, the situation has changed.
I am unable to comment in the 100% range because whoever falls under the slate is following.
Persons who operate business under Rs 20 may be exempt from tax.
Anyone with a turnover of more than Rs 20, they are compliant.
I will temporarily exclude this issue from the scope of the GST.
What we have done at Fabindia is that in the past year and a half, we have consciously worked to make the product more affordable, so, let\'s forget the tax section for the time being.
When we talk about pre-
In the era of goods and services tax, different types of taxes are collected.
After the tax on goods and services, everything is integrated into one.
We meet the GST standard today and maybe the percentage of product pricing will go up or down slightly.
However, when we talk about the expansion that is being planned, we believe we have to make ourselves very competitive.
As a conscious effort, we have strengthened our procurement.
We are committed to sales at a better price and the best quality.
So in order to answer your question, prices have fallen sharply in several categories.
Overall, if I look at how prices have changed over the last two years, I would say that we have actually reduced prices by a few percentage points.
This is a conscious effort that is going on and I think it will be the future.
In terms of clothing, there have been major amendments.
In the case that the price of some products has dropped by 15% to 18%, there has been a significant correction in the fusion wear part.
There is no compromise in quality.
The figures for this year will be good, especially during the period from October to, and revenue will increase.
People were still worried until September, but the situation between October and February was very good.
Things did be a bit slow in the first three months, but the Holi festival significantly changed market sentiment and business looked good.
Another thing is that the market in the North has slowed slightly due to unexpected weather conditions. Yes, they do.
But our store is like this and every time a customer walks in they pick up something or something.
Now with the opening of the experience center, we have a restaurant under banner Fabcafe, a children\'s area called Tugbug, with a lot of hobby activities such as clay modeling and printing.
These are all paid for our weekend, weekly, monthly events, and in all the other stores we introduced, this is a very popular concept.
We already have 10 experience centers in operation and are working on an ambitious plan to add 30 next year.
We have signed up for 9 and we will open 3 next month.
We just want to open them this month, but there is a slight delay in the project.
These are very large shops with different concepts such as Cafe, tugboat and health.
A center in Pune will be completed in April.
We will launch another similar-scale product in Kolkata and another similar-scale product in Chandigarh.
In Chandigarh, for example, we are adding more space, several of which are converted.
In Pune, we operate clothing and household goods in two buildings.
Now we put it in a separate building with four structures on the ground.
It will be a great place.
When you go to the South area, you will find that these beautiful traditional bungalows are in line with the concept of our experience center.
In fact, we are registering a store in Coimbatore.
It is located in the beautiful heritage Coimbatore School of Law
Du li times.
We are looking specifically for such a property and you will be surprised to know that the landlord of such a heritage property is actually waiting for us to sign.
This is also because they know we will take good care of their property.
I can\'t give this number, but we are working in that direction.
In addition to being in Kota Kinabalu, there is a line of Trivan.
We\'re also exploring Kochi\'s property right now.
It\'s not true. We usually do it at the market exchange rate.
There are some negotiations because the investment is huge.
In the end, we are running a business, so we have to make sure we get the money from it to operate normally.
So we looked at the cost of the shop, the cafe, the tugboat separately.
At the center of our experience, a small cafe needs an investment of Rs 1. 5 crore.
As long as this shop, I spend Rs 2,800 to Rs 3,000 per square foot.
And sweet spots (
Ideal store size)
For us, the area is between 8,000 and 10,000 square feet.
This is a small part of our business.
In fact, exports are not a focus area for us now.
We have several stores in Singapore, Dubai, Fiji, one in the United States and three in Malaysia.
The Indian market is too big, so the point is that there is a good spread here.
The average bill is worth more than Rs 3,000 and is more or less consistent in the store.
Clothing is obviously the main category.
However, when we look at the business as a whole, we also see that the contribution percentage for each category should not fluctuate greatly.
As a result, the home category, including furniture, contributed about 20%, a proportion that has not declined since I started working with Fabindia four years ago.
What we are doing consciously is space optimization.
While the early stores showed a lot of home and furniture, we are actually reducing the space for this particular category.
At the same time, we are ensuring that category contributions do not decline in any way.
We have our own online channel. fabindia. com.
If cut smoothly in 1st day of this month, we should consider the export running speed of about 36 rupees.
We can buy it on other electronic products.
So is the market.
Our popularity on other portals is not very high as we are not in the price game.
We attend in a decent way and do business with Amazon and Flipkartowned Myntra.
We have 293, 71 of which are franchise stores.
We have a very ambitious plan to add a total of 100 stores in the coming fiscal year.
This will be a combination of 20 independent stores, 50 franchise stores and 30 experience centers.
The good news is that we will open 9 independent stores on April and 5, and 12 franchise stores will be opened in the same period.
So there are a lot of things in the pipeline, most of which may open before Diwali in the next fiscal year.
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