The Mini TRS model introduced by the Raymond Group has yielded excellent results from Tier IV and V towns and this is solely due to certain salient and unique factors
Raymond, that introduced a mini store format, Mini TRS (The Raymond Shop), especially for Tier IV and V towns, has hit the 200-store mark of Mini TRS. “With this new business model we have rolled out over 200 stores in the past 19 months – the fastest retail store rollout in men’s fashion and lifestyle category,” says Mohit Dhanjal, Director-Retail, Raymond Limited. The first Mini TRS was opened in March last year in Bihar. With these new additions, Raymond is now present in over 500 towns – again a first for any apparel brand in the country.
“The key to the company’s successful yet fastest rollout of stores is in its ‘agile business model’ that takes into account the consumer nuisances and market dynamics,” Dhanjal adds. The new model requires an investment less than one-third of a regular TRS which provides the necessary fuel to make the business highly profitable in these emerging markets. The agile design and modular interiors ensure that the stores are set up within 45 days instead of the usual 90 days. Taking into the account the challenge in availability of retail inventory in these towns, the store size has been optimized to 600-1,200 sq. feet vis-à-vis the average of 2,500 sq. feet.
The success formula has been two-fold. First, the new agile and asset-light business model which paved the way for the brand to enter into these emerging towns of India, which hitherto were inaccessible. Second, the new business model was then brought alive by associating with likeminded franchisees in these potential towns by leveraging their market knowledge, hands-on operations and adherence to the business framework.
“There is a huge amount of brand love for Raymond in the small towns as many of our franchisees are our existing customers and so they know what the brand stands for and its brand value. Secondly, the small town franchisees have a larger growth appetite and they are hungry for opportunity. Third, these franchisees are more willing to experiment. They don’t want tried-and-tested method; rather they are looking at co-creation and being a part of the brand journey,” Dhanjal elaborates.
Mini TRS also has an integrated digital omni-channel capability through which the customers can access a curated range of products from the brand’s online web store – Raymond Next. All the stores are connected through an interactive kiosk located in the store. “We have a target to open 300 Mini TRS by end of 2019 and will continue with our ambition of #HarSheharMeinRaymond, says Dhanjal.
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