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Purvita Chatterjee

Mumbai, Aug. 6 The Videocon Group-promoted Next Retail is planning to start an online venture for its consumer durables retailing business.

The company is in the process of working out a name for its online entity, which it would be launching along with a newly branded after-sales service under the name Blue.

Mr K.S. Raman, Director, Next Retail, told Business Line, “We would be targeting at least 18 per cent of our turnover from our online sales venture. In fact, today we would be the first consumer durable retailer to go online and intend launching our services within the next 60 days. Our online sales would be coupled with our after-sales services, which would also be offered online. By offering branded after-sales service under the Blue brand, we believe in being perceived as a trusted retailer. ”

Offering to sell all its consumer durable brands online, the Rs 1,500-crore Next Retail would take charge of demonstration, installation and even offer warranty for its products. “We would be offering warranty across all products and brands and our branded after-sales services would be a new customer proposition,” Mr Raman said.

However, logistics would be a key issue for the Videocon Group and there is a possibility of announcing a new joint venture company in the near future.

Currently, there is a central delivery system to mitigate the cost factor in its retailing operations.

“We already have warehouses which supply to the outlets and from there it would be delivered to the customers. There is a logistics joint venture company being formed for our cash & carry operations under Bolld and depending on its performance we might consider extending the logistics functions to the online venture as well,” said Mr Raman.

The Videocon Group is on the threshold of announcing a three-way logistics joint venture with Mitsui and Hitachi. Mr Sunil Mehta, Vice-President (Sales & Marketing), Videocon Industries, added, “We would be announcing a three-party logistics joint venture which would be for our cash & carry operations. There is possibility of it being extended to the other retail verticals within the group.”

Mitsui and Hitachi already have their respective logistics verticals and currently the Videocon group is in the process of fine-tuning its new joint venture company.

As Mr Mehta says, “We are still working on the micro details of the company which will be called 3PL, standing for third party logistics. It would be an independent company and its operations could be extended to any of the Videocon Group companies.”

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