CDIT Jul, 26 2016

Reinforcing the value of offline stores

With 80 outlets up and running and 20 more on the cards with in just a year’s time, Intex Technologies has proved their mettle as a dependable brand as well as a franchisor.

By Utpala Ghosh
Reinforcing the value of offline stores

When the entire world is getting digitized, what makes you open offline store? – is the question that domestic CDIT brand Intex Technologies planned a country wide expansion for Intex Smart World. However, one year into their retail journey, the OEM has proved the fact that business thrives on personal connection with the customers. And nothing does that better than a brick and mortar store. With 80 outlets up and running and 20 more on the cards with in just a year’s time, Intex’s collaborative growth with its franchise partners, has proved their mettle as a dependable brand as well as franchisor. Vishal Malik, DGM, Branded Retail, Intex Technologies shares his journey so far and the way ahead.  

What is the differentiating factor about Intex products that attracts consumers?

AtIntex, our focus is on product innovation, consumer satisfaction and ensuring that we reach to all our consumers across the country. We have successfully catered to the needs of consumers across price segments and it is our constant endeavor to provide the best of products and services. Our robust countrywide distribution network (80,000 distributors) and strong retail presence has been our strength.We also have a strong presence in the e-commerce space with several strategic tie-ups. To further strengthen our network, last year we launched our exclusive branded stores - ‘Intex Smart World’ as experience zones for consumers to experience the entire range of Intex products.

How do you evaluate your competition and what is your agenda?

As we all know, India is rapidly growing and consumer demand has been on the rise steadily. This has attracted numerous MNCs as well as Chinese players to the market. Our retail strategy has always been to be close to the consumer so as to make it convenient for them to experience our brand and make informed purchases. Retail is a vast industry and there is ample room for success for everyone who can control costs and improve upon process efficiencies, something that we have been doing successfully over the years.

When did you start Intex Smart World and why?

Customer satisfaction and convenience has always been central to our strategy. Keeping in line with this, to further strengthen our retail presence, we launched our exclusive brand stores - Intex Smart World in 2015. The premium retail space - Intex Smart World, is an exclusive Experience Zone for consumers. The first Smart World store was opened in New Delhi in April 2015, the 50th store in Lucknow in January 2016 and 75th store in Goa in May 2016.

In 15 months of operation, we have opened 80 Intex Smart World stores covering 60+ cities and 21 states across the nation. We are opening a store every fifth day and branded retail stores are part of our core strategy to deliver what today’s digital consumers demand - present anytime, anywhere and through any medium.

The company has expanded both in metros and low penetrated small towns with standardized experience including the concept, size, and format. Intex Smart World stores are being opened through both franchise as well as company route.

What are your plans to build omni presence strategy in India?

When we decided to open branded retail stores, many asked us as to why are we opening retail stores when everyone is moving online. But we as a company realised that today consumers expect more from retail. They look for education, convenience, services, value and experience at the same time. While being online can definitely give convenience, the ability to experience products is something that is missed.

Moreover, the pre-requisite for any successful Omni channel strategy is to first have a strong footprint. If you don’t have that then how would you strike a connection between both the world (online and offline). Opening stores were the first part, now in next phase we are designing our Omni channel strategy. We have some robust plans for it the way we had for our retail stores, but we will unfurl it gradually.

What are your criteria to select a franchisee? Please elaborate the terms.

We find market opportunities that lead us in expanding our footprints in A, B & C category of towns. We have focused more on our TG presence along with business opportunities for our retail partners. Looking for right partner at right space is always our goal before expansion.

Compared to other franchise business models, opening a Intex smart world is more affordable and promising and is within the range of small and budding entrepreneurs. Our model is more acceptable in terms of investment and space needs with reasonable and achievable earning estimates.

lAvailability of sustainable and TG approachable locations

lEnthusiastic and ready to invest partner

lCompany preferred towns and localities/markets

How many offline stores and service centers you are planning to open in the coming year?

5% Company Owned Company Operated. 95% Franchised owned Franchised Operated

Where do you see branded retail business heading in next few years?

We look to expand our footprints not only in metro cities but small towns as well in order to reach out to the end consumers. Our focus is not to follow the footprints of other brands, we would like to expand where we find the market opportunities. Reach across India in towns where we can match the business expectations of franchise and serve the TG customers with standardized experience. In the 2nd phase, we will be focusing on East & South regions.

  • Region-wise break-up of franchise stores (North/East/West/South)? Where you have maximum number of franchising outlets in the country?
Region No. of States No. of Cities No. of Outlets
North 7 35 50
East 5 12 12
West 5 27 27
South 4 10 11
Total 21 84 100 enrollments

lMajor Markets - North & West; South & East are new focus markets

lMajor states presence - UP, Delhi & Haryana, Madhya Pradesh, Maharashtra, Gujarat, West Bengal and Karnataka

Related: Capture success with Canon

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