The rising fashion consciousness among the Indian consumers has given a boost to the fashion retail industry. In an interview, Charu Sachdev, CEO, The Sachdev Group (TSG) shares the success story of her company that has been catering to the changing needs of its customers.
Ramanjit Kaur (RK): Please shed some light on the conception of The Sachdev Group?
Charu Sachdev (CS): The Sachdev Group (TSG) is a distinguished business house having diversified interests. It has ventured into garment exports, auto retailing, insurance, fashion retail and distribution sectors. It has successfully created a distinct identity for itself. With powerful consumer insight, intense focus, top quality innovation, transparency and reliability, TSG is continuously establishing its name among Indian consumers. It is an organisation that considers its team as partners in progress and emphasises on growth, recognition and a sense of belonging for its employees.
RK: How is franchising contributing to the luxury goods industry? Why did you opt for franchising?
CS: Franchising as a tool is being utlised worldwide by the luxury goods retail industry to enter new markets where local knowledge and expertise of the franchise partner helps to build the brand and penetrate the market more efficiently and effectively. We are expanding our luxury multi-brand store ‘Kitsch’ through this model for the same reasons.
RK: How is it beneficial for aspiring entrepreneurs to take-up the franchise for luxury goods retail?
CS: It is beneficial because they are taking-up an existing business model, with marketing support and know-how while owning the business and in return gaining substantial profits.
RK: What are the criteria for selecting the franchisees for The Sachdev Group?
CS: The franchise partners must be a financially sound with a good credit rating. They may or may not own a prime retail location. The initial investments in luxury retail stores are slightly higher than most other retail stores. However, the returns are also proportionately higher.
RK: What kind of training and support do you offer to the franchisees?
CS: TSG is involved as partner in progress from day one. We provide IT support, products and the best practical training on a continuous basis. In addition, we also provide marketing and PR support on regular basis.
RK: How much area and capital is required to open a franchised outlet?
CS: The minimum area required to open our franchised outlet is 1500 sq ft. The capital investment is approximately Rs 4500 per sq ft.
RK: What kinds of challenges can a franchisee face while running a luxury retail outlet?
CS: One of the biggest challenges is to find quality staff. However, the training and the consistent support that we provide helps our franchisees to overcome this hurdle.