With years of expertise in consumer durables and IT (CDIT) sector through franchising model, NEXT Retail's present focus remains on consolidating in India.
WITH a network of more than 609 stores spread across 25 states and 300 cities, NEXT Retail India Ltd is recognised as the country's largest electronic retail chain. It's a multi-brand, multi-product retail chain that has an entire range of products.
The company has three retail formats in its kitty, including large format stores, mid-sized stores and franchised ones. The size of store ranges between more than 5,000 sq.ft and 1,250 sq.ft.
The company's marketing strategy is two-fold. One is tactical and the other one is brand building. The former one creates walk-ins by promoting exclusive combo offers and value added deals, while the latter is for long-term entrenchment.
NEXT Retail plans to increase its store count to 1,000 by this year end. The company looks at the location of the franchisees, their investment capacity and willingness to treat this as their primary business.
Investment: Depends on the area and product categories to be displayed
Area: 1,250-3,000 sq ft
Location: Anywhere in India
Return on Investment (RoI): Gross margin of 7- 8 per cent
Expected break-even: 3-12 months
Franchise units: Above 400
KS RAMAN, Director, NEXT Retail India Ltd
The organised retail for consumer durables and IT sector, is expected to grow to $ 22 billion by 2020.