Over 85% of the stores are profitable: Shiv Rattan Goyal
In an exclusive conversation with Shiv Rattan Goyal, MD at Richlook highlights the journey of the brand.BY Shipra Srivastava | February 10, 2017 | comments ( 0 ) |
Shiv Rattan Goyal
Kindly highlight the journey of your brand?
Richlook was established in the year 1993 with humble beginnings in the by lanes of Karol Bagh, New Delhi. What started as a small garment shop, now has established itself into one of the most premier clothing brands in the country.
Spearheaded by the dynamic yet grounded, Shiv Rattan Goyal, MD, Richlook India Pvt. Ltd., the company is a super example of how hard work and determination can produce results beyond imagination. The company has established over 55 stores in major parts of the country in a span of over two decades. With an established manufacturing unit, spread over 60,000 sq. ft., at HSIIDC Industrial Area, Sonepat, Haryana, the company is equipped with state-of-the-art technology and equipment’s ensuring seamless completion of the final product.Over 85% of the stores are running successfully with a profit margin of 25-30 % every year.
Kindly highlight your current retail spread?
We have around 55 outlets spread across in 28 Cities. We are looking for Franchise who can invest INR 30-40 Lakhs with Retail Background and expect 25-35% ROI every year. As of now, we have 30 Franchise Stores
What is your market positioning and customer profile? Which is your primary and secondary target group of customers?
The company believes in robust corporate and social ethics therefore it gives relevance and emphasis to both its products and the brains behind it. Having catered to an enviable consumer base across the country in the last two decades, who have bestowed their faith and loyalty to the brand, it has almost become a household name for the masses. The company enjoys a passionate support from its employees and direct associates numbering to more than 300. Endowed with a professional and interactive environment, the company provides the best of the facilities to its employees as well as associates.Over the years, Richlook, has ensured that its products follow a strict quality standard and then reach its target consumer. We are also engaging more and more people through social media campaigns, connecting with CSR angle, promoting the skill development for a better India.
How many categories you are retailing right now? What is your starting and exiting price-point?
There is no immediate plan to add categories though seasonal categories like T-Shirts, Jackets, and Pullovers are available depending on the season.
The Price: Selling Price between INR 800- 3000 sells the best as most of the core product range lies in this range.
Kindly highlight your strategy on location for new stores? Which locations do you prefer? Are you also looking at shop-in-shops?
Richlook being a mass brand works best on High Streets but we have started expanding in
“B Category malls” and getting very good sales numbers.
What is the average size of your stores? Also, highlight your merchandising strategy?
Our average store size is 800 Sq. Ft. Our Core Ranges are places at lower shelves, dead areas as they are sold as demand is pretty high. We place new designs that catches eye balls at the eye level to attract and hold customers attention.
What are the typical retailer margins in this business? How much time does it take for a store selling these products to break even?
Over 85% of the stores are profitable and rest 7% run on break even & 8% are loss making, but these stores are expected to reach breakeven within 6-8 months as it takes initial 1 year to smoothen the operations and create good footfall.
Kindly highlight your marketing strategy?
We do not have any ATL activities lined up for this season or past. We focus more towards the in-store or BTL activities. We offer huge discounts & schemes that changes time to time that attracts customers.
Kindly highlight your expansion strategy?
We are expanding at a very rapid pace. We are looking to expand the brand in states like Punjab, Haryana, Uttar Pradesh, Rajasthan & Delhi/NCR. We are expanding with Franchise strategy and are looking for business partners with a sound retail background who can invest between 30-40 Lakhs. We are targeting 30-35 new stores in 2017-2018. We have contracted the number of categories with very detailed planning.
Are there any interesting concepts or innovations you have introduced at your stores? If yes, kindly provide us the details?
We are working to sync our whole catalogue into an eCatalogue along with offering the whole inventory through a centralised channel. To explain, if you are looking for a size which is not available in the store, you can order from the Tablet places in the store which might be available in any other store or even WAREHOUSE, pay at the store and we will ship the product to your home within 48-72 Hours.
What are your key leanings being operational over the years?
We tried investing in huge stores and learnt that big size stores required lot of CapEx in fixtures, stocks but does not give sales accordingly, investing 40-45% more in store but getting only 10-15% additional sales. So, now we are keeping our store sizes between 700-1200 Sq. Feet only.
How you are leveraging from the online channel?
We have started e-commerce in 2013 with marketplaces like Jabong, Myntra, Flipkart, Amazon and many others. We have launched our portal in 2014 which does fair amount of business. Currently the % of online sales are less than 5% of overall but its increasing gradually.
Following are the details of our top performing store:
Location of Store: Lajpat Nagar
Date of Start of Operation: Sep 2014
Total Area: 700 Sq. Feet
Rentals / Month Revenue share: 5, 50,000
Average Monthly Sales: 25, 00,000
Average Bill Size: INR 2400
Average footfalls per day / month: 80
Sales growth y-o-y: 23%
24 Nov 2015, Hotel Pullman, Aerocity, New Delhi.
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