WEAVING A NEW GROWTH STORY

Landmark Group, which operates a wide network of retail outlets under Lifestyle, Max and Spar brands, is now betting big on the value-for-money fashion segment through Easybuy brand. Easybuy, Landmark’s latest retail format, was launched to identify the growing potential beyond metros and opportunities in tier II, III and beyond, where organized fashion retail has not fully penetrated. The group, a $6-billion global retailer with 2,200 outlets, encompassing over 30 million sqft spread across 21 countries. In India, the group operates many formats – Lifestyle, Splash, Home Center, Max, Spar, etc covering all the target groups and segments. The company, which operates varied spectrum of business brands via different business models in India, sees smaller towns as an important part of its India expansion plan. To achieve that, the brand is working on 100 per cent franchise model to deliver the scale. The brand is building Easybuy as a FMCG retail model with focus on high stock turns and deeper distribution.

THE RISE

In 2014, Landmark Group conceptualized Easybuy as part of Max retail division. Max has been in India over a decade and is the 'largest value fashion brand in India' with focus on metros. On the concept and need, Anand Aiyer, Business Head, Easybuy, says: “Given the size, the operational model and pricing, the cost equation was not viable for a large format to penetrate across tier II & beyond, Max’s average size is 10,000 sq. ft. and above. The ‘Navbharat’ consumers are more price conscious, so we had to price our product accordingly.

Hence, it was decided to create a new vertical, which focuses on the small town strategy and thus Easybuy was born.” The operational model of the brand is ‘lean’ to keep the cost in control thus keeping the model viable for the small towns. Easybuy is a 100 per cent franchisee-driven model for faster expansion, deeper penetration and better local connection.

PRODUCT RANGE

Easybuy is a unique model in apparel retail that provides a one-stop solution to the complete family within 5000 sq.ft. Offering all the categories including men, western women, ethnic women’s line, active, nightwear, kids, infants, footwear and accessories, the brand offers limited yet curated products relevant to the consumer and market needs. To fit in all locations and to serve the desired segment, they don’t follow one format, one range. They customize it according to the market and accordingly plan the store assortment mix. It has a huge product range of more than 1,000 styles between Rs 69-699 and churning four seasons a year. The proficient in-house design team ensures international trends are customized to the market needs. The company sources 100 per cent of their products from India and don’t do much niche products. Like all other concepts of Landmark, Easybuy is also built around ‘strong focus on quality and product’. On the same Anand, says: “We will be focusing on product, quality and sharp pricing, these will be the three key differentiators. Retail success is about getting and retaining repeat customers. Consistently delivering in-trend merchandise and what customers want with focus on quality and product, with prices lower than competition will ensure loyal consumers and ‘word of mouth’ will get new consumers.”

THE PROVEN MODEL

Franchising is a model, which has scaled and delivered high ROI, believes the brand. On the same Anand adds: “India is a country with growing entrepreneurs, who are looking at investment models. To penetrate deeper in the Indian market, we need local expertise and support. Franchisees will help in understanding the local tastes, identifing the right properties, helping in local activations, optimizing on costs, etc. This is only possible when you understand the business, connected and partner with franchisor. We call this operating franchisee, which is different from investor franchisee.” The franchise model has already proved fruitful for the brand in a short span, many existing franchisees have scaled their operations and are running 3-4 stores within the cluster. This has happened because of the concept acceptance and sales more than projection. Franchisees see long term value and better ROI, leading to existing & potential franchisees expanding with them. Most franchisees are getting 20-25% ROI.

REQUISITES & HANDHOLDING

Easybuy is seeking local partners, who can get aligned with the brandand work as the operating franchisee. While selecting the franchisee, the brand will look for partners, who can understand the retail business and local needs. For the group, franchising is partnering for the mutual growth and not mere investment. In every state Easybuy has dedicated cluster managers, who work closely with franchisees and on-boarding them to their value system. To have smooth start, the brand works with its partners in site finalization, doing catchment study and identifying the potential in the market. Thorough support is offered to the partners in operations as the company nominates vendors in store fit-outs, supporting in staff recruitment and selection, work with them to deliver great customer service, selling skills, product training, etc. Apart from cluster manager, every store is also supported with the company store manager, who works closely with franchisee on staff standards, standard operating procedure implementation, driving sales and local activations. The HR team works closely with franchisee on staff engagement programmes, soft skill training, individual development and growth.

KNITTING GROWTH

The aim of the brand is to cross Rs 600 crore turnover with a 100- plus stores pan-India, delivering ‘super style at super prices’ by 2020. The band is expanding fast and growing at average 50 per cent per annum and opening two stores every month. The brand also aims to be the most preferred ‘family value brand’ for the ‘aspirational navbharat’ through profitable channel partners and stakeholders delivering quality and convenient shopping experience.

Q&A

MAKING THE NAVBHARAT FASHIONABLE

Anand Aiyer, Business Head, EasyBuy talks about the brand’s strategy and stratification in the Indian subcontinent.

What has been the growth rate of Easybuy and what factors have facilitated this rate?

We have been growing at a CAGR of close to 50 per cent and the key factors have been focused approach, best in class product quality and delightful prices. Consumers come out of the stores with a ‘wow’ feeling. This positive ‘word of mouth’ has ensured steady flow of consumers without much spends on marketing. Our focus is not on the vanilla products but on the fashion basics, which we sell 25-30 per cent cheaper as compared to our competitors. This unique consumer proposition is fueling sustainable growth.

Fashion retail is not an easy ball game, what expertise is required to standout in the apparel industry?

I personally feel fashion retail is simple to approach – “Deliver what customer wants and aspires at delightful prices what they love”. The easy approach becomes “tough” during execution.We have built our marketing campaign on this simple thought – “Style you love, at the price you want”. The brand that executes this consistently season after season will standout.

Your views on GST…

It’s a transformational initiative of ‘one tax, one nation’. It will ensure seamless movement of goods and level playing field for all organized and unorganized players. Economy will grow and benefit in long run.

Where are you looking to expand?

In pipeline, we have cluster-based expansion with focus in Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Telangana and East market.

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