The Hindu Business Line : North Chennai — the new destination for large brands

LARGE retail chains and brands are discovering the marketing potential in North Chennai. There is more to the place, which can trace its history back to the birth of the city itself, than just the narrow and crowded lanes, industries and smoking chimneys, they acknowledge.

It may not be the ideal location for a discotheque but if you offer value for money, you got to be there is the feeling. Making a foray into this, so far, ignored market is the Sony Worlds and Reliance Web Worlds, though the reaction is mixed.

Take Mr Inder Chand Nahar, a Sony franchisee, who has set up a Sony World - an exclusive Sony outlet - in Anna Salai, T Nagar and in the heart of North Chennai - MS Koil Street, Royapuram.

Mr Nahar, who has business interests in textiles also, says that he has never underestimated the potential in North Chennai. Look at the population density, the business interests and the number of years that area has been around, he says.

Traditional business houses, generations of families that have dealt in finance, textiles, fishing, iron and steel, and numerous other businesses live here. That represents a huge market, he said.

A strong brand - like a globally known Sony - will be recognised for its worth and people will come there, which is why he decided to set up an exclusive Sony outlet in North Chennai early this year. All you need is a spacious place; the rent is just half that of a similar area in T Nagar or Anna Salai, he said.

Business at the Royapuram showroom has proved his conviction right, he says. Customers at the Anna Salai showroom or the one in T Nagar are more likely to use a credit card or opt for a hire purchase scheme. But at Royapuram, business volume may be low but picking up and it is mostly cash and carry, he says.

The entire range, including the high-end plasma screens and large screen televisions, is in demand at the Royapuram showroom, which is targeted at areas such as Mannady, Ennore, Tondiarpet and Tirovottriyur.

Mr Nahar is also planning more retail outlets for home appliances in the area. But he says he would draw the line at fast food shops. Hotels serving traditional cuisine would do well not a pizza joint, he felt.

Mr Sandip K. Mukherjee, President, Coffee Day Express, the mass-market chain of beverage and snack joints, felt North Chennai would not be an ideal market yet for a modern snack bar. As with older parts of a large city, it is too tradition bound and conservative, he said.

Look at the Reliance Webworld, the broadband outlet. There are a handful of customers browsing and they are an assorted crowd - a few youngsters, a couple of middle-aged persons. Check with one or two of them and they are there for different reasons. One is tracking commodity prices and the kids are just browsing.

But the Webworld's Java Green outlet for snacks was not as welcome and had to be closed, a customer said. That a Webworld charges about Rs 30 an hour against the Rs 15-20 any other Internet outlet charges is not an issue because broadband is more fun, he said.

There are also a number of supermarkets springing up with the paraphernalia of any other supermarket chains elsewhere - self-service counters, shopping baskets and trolleys. Over the last three years there has been a spurt in the number of such supermarkets.

Mr T. Thirugananam, who runs a super market, says that he decided to set up shop there to attract customers who travel to South Chennai just to shop at the super markets there.

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