The Hindu Business Line : Mothercare plans e-commerce model

Considering nearly 65 per cent of Shoppers’ Stop First Citizen loyalty card members are consumers of the brand, Mothercare intends targeting the same for its Web-based selling option.

Mr Rajiv Nair, Head of Mothercare, told Business Line, “To begin with we expect to capture the loyalty card members of Shoppers’ Stop as they comprise almost 65 per cent of our present customers.” The First Citizen loyalty card programme of Shoppers’ Stop currently has 7 lakh members, of which nearly 25,000 have shopped from Mothercare.

In the UK markets, nearly 15 per cent of Mothercare’s sales come from the Net.

Discount price

Besides, the brand is not looking at hiking prices having compromised already in the Indian market.

Its baby care apparels are also selling at a 15-20 per cent discount compared to prices in the UK, South East Asia and West Asian markets.

“We have kept a tight rein on our prices and there will be no substantial hike in the next two years,” states Mr Nair.

However, there are vendors who have been importing the Mothercare brand from other markets and charging a premium on the existing Indian prices.

“Such vendors do exist but for the moment we can do nothing about them.

“In India, Mothercare has been pegged as a mid- to premium priced brand even though some vendors continue to sell the brand with an added premium,” adds Mr Nair.

Mothercare has floated a sourcing company in Mumbai and nearly 50 per cent of the brand’s apparel in the country is sourced from this company. However, home and travel products comprise 45 per cent of the brand’s sales and are imported with steep duties.

“Import duties range between 35 and 40 per cent for the non-apparel products but we have still decided to keep a control on the prices,” claims Mr Nair.

In fact, pricing would be the key factor as MotherCare decides to penetrate tier-2 cities.

For instance, in spite of launching a store in Ahmedabad, demand for the brand has not been that high.

Mothercare intends increasing its turnover from Rs 18.5 crore to reach Rs 50 crore this year.