Retail Jun, 29 2012

Genuinely generating profits

Increasing dependability on consumer durables and home appliances has led to the emergence of number of big brands in this industry. However, buying these goods from retail outlets is quite expensive. Therefore the concept of ‘Genuine Factory Seconds’

By Abha Garyali
Sub Editor
Genuinely generating profits

Consumer electronic durables have become more of a necessity than a luxury today. Electronic goods like home appliances, laptops, mobiles, LCD/LED, plasma, TV, Music system, DVD players, microwaves, refrigerators, washing machine, AC, computers(Desk top /Laptops/Net book), and other small appliances like juicer mixer grinder, toasters, coffee makers, irons, hand blender, food processor, OTG etc have made our life easier and more dependent on them.

Buying a consumer durable from a retail outlet is quite expensive and everyone is not able to afford. However, considering the need and growing demand and to make everyone experience the advantages of consumer durables the concept of ‘Genuine factory second’ of consumer durable electronic gadgets has emerged.

‘Genuine factory second’ means products that are over produced, over imported, obsolete model, packaging damage, light scratch or dent on outer body but are functionally performing like other branded products. These products are certified by manufacturer also.

Pioneering the concept

Dinghy Retails Private Limited with its brand name ‘Skydeelz’ has become the pioneer company in the unique field of ‘Genuine factory second’ of consumer durable electronic gadgets. The brand has partnered with world renowned and trusted major business partners like LG, Samsung, Panasonic, Whirlpool, Voltas, Sanyo, Philips, Electrolux,  Black and Decker, Inalsa, Maharaja Whiteline, Usha International/lexus, Lenovo, Acer, Dell, Nokia etc.

Beni Kinha, MD and Chief ‘Deelz’ Officer said: “The industry is growing over 20 per cent of year on year and as we are pioneer in ‘organized factory seconds retail’, we are growing much faster than the industry pace.”

Concept of Genuine factory second

Being a novel concept, not many have heard of this unique but lucrative business opportunity in consumer electronic field, till now. However, now people understand the concept and are readily buying products from ‘Genuine factory second’.  The products sold at these outlets are products that are manufactured in surplus quantity, having small packing damages, scratches but are functionally performing fine. These products are certified by manufacturer also.

Factory second in apparel has become quite popular as well as successful with consumers accepting the concept of branded clothes at discounted prices from few retail stores due to slight damage. Therefore, this concept is sure to be successful in branded electronic goods, which are highly priced but essential.

Why opt for franchising?

Skydeelz, the brand popularising the concept of genuine factory seconds took the franchise route in 2011. In its short journey till now, the company has expanded with 23 franchise stores and two company owned outlets. About taking the franchise route Kinha shared: “Franchising offers extension of brand, sharing of responsibility as well as profits. Moreover, having a local representation makes difference as he understands the needs of local people of that city/town etc.”

Franchise requisites

Aspirants who are interested in electronic goods, along with passion for business can surely take up the franchise of genuine factory seconds for a rewarding future. Along with zeal of running the business, the franchisee also requires an investment of Rs 25 lakh, which would include a one-time franchise fee of Rs two lakh. In addition to investment, an area of 1,000 sq. ft is also needed to store as well as display the product range.

To conclude it can be said that the concept of factory seconds may be quite new but is sure to be successful in the years to come. This can be guaranteed seeing the craze of all classes of people for branded electronic goods. It may not be possible for a person belonging to middle class to own branded refrigerators, mobiles, TV, laptops, microwave ovens etc. However, with the emergence of the unique concept of ‘Genuine factory seconds’, consumers are sure to realize their dream of possessing branded goods. Aspirants who have the foresight to acknowledge this golden biz opportunity are sure to reap innumerable benefits in years to come.

Related: Fun with Funko franchising

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