The Hindu Business Line : Globus plans 50 stores in 3 years

The Rajan Raheja group company will substantially hike investments in areas of customer relationship management (CRM) and fashion forecasting during this period.

"We have signed eight more properties this year and plan to set up fifty stores in the next two or three years," Mr Vinay Nadkarni, CEO, Globus Stores Pvt Ltd told Business Line.

The company recently consolidated its supply chain efficiencies.

The apparel chain currently has seven stores in Mumbai, Delhi, Chennai, Bangalore and Indore. The expansion will include setting up three stores in Delhi, two in Mumbai and Hyderabad each, and one each in Kanpur and Pune.

Almost all properties are leased and spans around 8,000 square feet in size. The company will spend around Rs 3.5 crore to set up each store. While Globus will invest Rs 15 lakh-Rs 20 lakh each year on software development specific to fashion forecasting, it will spend around Rs 50 lakh in CRM initiatives.

"The strategic intent behind fashion forecasting would be to find out international trends and map them in the Indian context," said Mr Nadkarni, adding that the company is currently taking forecasting inputs from international agencies like WGSN.

Globus is also scouting for strategic alliances in CRM initiatives. This will include investment in areas that are touch points for the company's target audience - the youth.

The company expects a turnover of Rs 100 crore by March 2005, said Mr Nadkarni.

Globus has laid down marketing expenses of around Rs 3.5 crore-Rs 4 crore this year, which will be centred on brand campaigns during the spring and autumn collection launch.

For some years now, the company has been relying on its own creative shop to dish out advertisements, against the industry norm of appointing advertising agencies.

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