The market for fashion accessories in India is on a new high. In an interview with Priyanka Rai, Ashish Saboo, Managing Director, ADDONS, shares his secrets of establishing a profitable business in the accessories industry with plans to add 75 stores in this fiscal year.
Tell us about your company. Highlight the products your brand offers.
We started our operations in 2007. Today, ADDONS is reckoned to be the first and biggest fashion accessories brand in India that brings together an amazing range of high quality men’s and women’s accessories. We offer a wide range of fashion jewellery, handbags, footwear, hair accessories, ties, cufflinks, belts, wallets, caps and sunglasses.
What is the USP of your brand?
Our USP revolves around providing a good shopping experience to our customers, offering them the latest fashion and the best quality products at affordable prices.
Why have you opted for franchising? How many stores do you have currently?
We feel that franchising helps in scaling and managing business more efficiently and effectively. Currently, we have presence in 70-touch points pan India. We have 38 franchise stores in cities like Mumbai, Delhi, Bangalore, Chennai, Ahmedabad, Hyderabad, Chandigarh, Pune, Bhopal, Indore, Gwalior, Jabalpur, Jalandhar, Jaipur, Bareilly, Coimbatore, Kochi, Madurai, Nagpur and Raipur.
Currently, which store formats do you have in your brand’s portfolio?
We operate our stores through retail formats like company owned franchisee operated, franchisee owned franchisee operated and company owned company operated.
What kind of training and related business support do you intend to offer to the franchisees?
We offer three days of induction training to newly appointed franchisees pertaining to brand, product, and retail excellence. We also offer regular training to keep our franchisees updated on the latest fashion trends, increasing business and enhancing RoI.
What marketing strategies do you follow for the promotion of your brand?
The concentration is more on below -the- line activities, mall promotions, tie-ups with good cafes, on store promotions and social media marketing. We have associated with events catering to the youth and have initiated activities that were published in the top fashion magazines.
What are your expansion plans?
We plan to open 75 stores in the F.Y 13-14. Going further, we will be opening 500 stores by FY 2018-19. All of the stores will be franchisee-operated.
What qualities do you look for in your franchisees?
We look for candidates who are fashion conscious and the ones who understand fashion. They must have a minimum retail experience of two years. They must get involved in the business and look forward to growing with the company.
How much investment and area is required for becoming your franchisee?
For opening a store in an area of 250-400 sq.ft, a prospective franchisee will require an investment of Rs 12- 14 lakh.