Urban revolution in innovative retail

BANGALORE: Mr. Pronto can put the sole back into your stride, at double time. The hole-in-the-wall shoe and bag repair chain—which revamps suitcases and broken heels—recently found a place in Mantri Square-Bangalore, touted to be the largest shopping mall in the country.

Call it a sophisticated cobbler service and founder director Abhishek Dhingra agrees. But nearly 25-30 consumers a day shell out at least Rs 200 on a repair job at Mr. Pronto’s outlets in Chennai and Bangalore. The chain is now expanding across Coimbatore, Hyderabad and Mysore.

It is this consumer that textile major Arvind Mills too is targeting with its eponymous chain of stores launched recently in Hyderabad. The Arvind Store has created a Denim Lab allowing consumers to design their jeans from scratch. They can opt for a specific denim wash, demand the fit that best complements their body type, embellish it with rivets and finally have their name embroidered on it.

The signature jeans would retail between Rs 1, 400 and Rs 2, 500 a pair. While the Denim Lab is a vehicle to portray Arvind’s capabilities, the concept has taken root from today’s consumer’s willingness to spend on novel experiences.
As the organised retail sector evolves in India, firms are devising unconventional retail concepts and plugging in untapped business opportunities to cater to the high-spending urbanite.

"The emergence of new retail concepts is largely driven by the growth in consumer incomes. This category of consumers, who is spending more time at work and travelling, is keen on alternatives that offer convenience with quality. Store ambience is also becoming a critical factor," said Raghav Gupta, president of consultancy firm Technopak Advisors.

With convenience expected to play a big role in the growth of organised retail, many players are reviving old concepts in a spruced up avatar.

"The traditional cobblers have lost their locations and have been swept into back alleys. We cater to the consumer who desires a certain degree of interactivity with the technician, expertise in sourcing materials and standardised quality," said Mr Dhingra.

This explains the launch of High Chai, a Bangalore-based firm which has made a business out of retailing Assam tea from mobile carts in malls.

So too the case of Go Gola, a branded ice candy chain in Mumbai which retails golas made from mineral water at Rs 40 a piece. "There are gaps and missed opportunities in the organised retail sector in India," said Amit Bagaria, chairman of Arus Retail.

Men and Boys, a chain of stores dedicated to premium men’s personal care products, is Arus Retail’s attempt to take advantage of an untapped market. And statistics suggest that a ready market exists. Global consultancy KPMG estimates the men’s grooming market in India at $5 billion against a $20-billion market globally.

While the per capita expenditure on male grooming in India is less than $0.5 annually compared to $23 in the UK, it will grow 20%-25% over next few years, adds Anand Ramanathan, manager KPMG Advisory services.

"There are only 18 stores dedicated to men’s grooming products worldwide. People tend to assume that beauty is restricted to women or they have expected men to make do with unisex stores so far," added Mr Bagaria. Men and Boys will also introduce a grooming lounge in Bangalore, Mumbai and New Delhi replete with skin consultation and massages with product retail.

Or take for instance, shopping portal Fashion and You whose core proposition is to offer luxury labels ranging from Aigner to Tag Heuer at discounts of up to 70%. Co-founded by Pearl Uppal—who was previously director sales at Yahoo! India—Fashion and You (F&Y) bet on the limitations of luxury brands to set up multiple retail outlets in India.

F&Y offers these brands a means to sell out-of-stock merchandise quickly without investing in brand building in India.

With no overhead expenses of its own, the manufacturer’s cost savings are passed on as heady bargains to the 20-35 year-old aspirational consumer who has lapped up the idea of shopping with friends online.