The Hindu Business Line : Royal Classic cautious on retail expansion

Without dwelling in depth about the ‘external condition’, he said, ‘our target audience is those in the 20-40 age group. A majority of youngsters of this age profile work for a BPO or KPO, and this is one sector that seems to be in deep trouble due to uncertainty and job loss. Our concern is there,” he said.

Yet, the company has registered a growth. During the first half of this fiscal, it registered a 60-65 per cent growth.

According to Mr Sivaram, the Group has been growing at this rate year-on-year since 2001, when it set its eye on the domestic market. But in the coming months, he foresees some turbulence.

The company is hoping to achieve its targeted turnover of Rs 80 crore this year from domestic operations alone.

“In fact, our Diwali figures this year have been better than the last,” he said, and attributed it to the loyalty programmes to acknowledge brand regulars.

A 5 per cent discount is being offered throughout the year on purchases made at its retail store to its ‘Silver Card’ customers numbering 40,000; a 10 per cent discount to ‘Gold’ cardholders numbering 200; and 15 per cent to the ‘purple or Platinum’ cardholders. “Our loyalty programmes are straight and a runaway success,” he said.

Sharing one such offer, a company source said it had tied up with gas stations in and around our store last year.

For every purchase of Rs 1,000 the customer was given a five-litre fuel coupon, which he could produce at the bunk at the time of fuelling the vehicle.

The company has opened 63 outlets till date, including a store in Singapore, and plans to strength the branch network to 80 before the close of this fiscal.