Stores may also stock consumer durables in future
In the next three years, Mr Motwani hoped the division would have a total of 90 stores and a turnover of Rs 300 crore.
Coimbatore, Sept. 4
The retailing division of Godrej & Boyce Mfg. Co. Ltd, which provides under one roof home and office furniture, security systems, home appliances and lifestyle products, expects the demand for these products to continue for more than a decade on rising consumption levels and sustained economic growth, according to a senior executive of the company.
According to him, though Godrej has opened its own direct sales outlets for these products, the company will not cannibalise the business of its dealers and both business models will co-exist.
Business Linein Coimbatore, at the opening of a Godrej Lifespace store, Mr Shyam Motwani, Vice-President & Business Head (Retailing Division), Godrej & Boyce Mfg. Co Ltd,said, Godrej Lifespace was a retailing brand of the company. At present, there were 42 stores across India, either company-owned or company-managed, and it planned to add another 6 stores during the course of this year.
The division had a turnover of Rs 60 crore last year and during the current year, he expected it to increase to Rs 100 crore. In the next three years, he hoped the division would have a total of 90 stores and a turnover of Rs 300 crore.
He expected the business growth to come not only from the range of products these stores are selling now but also from products such as digital cameras, camcorders, personal computers, laptops, home furnishings, microwavable containers to be sold in the future. The stores would sell not only Godrej products, but also other brands.
Answering a question, Mr Motwani said the Godrej Lifespace stores would co-exist with Godrej retail distributors. The distribution focus would help the division to decide on the stock points needed in a city. In places where the company did not have a dealer but saw business potential, it could have its own store there. He said Godrej expected a turnover of about Rs 1,900 crore from furniture and interiors' business and from sale of appliances, locks and security equipment. The turnover last year was about Rs 1,600 crore. The sales from Lifespace Stores would be about Rs 100 crore and the balance would come from retail distributors this year. As the sales figures showed, opening Godrej Lifespace stores was not a threat to retail partners.
Growth driversExplaining the reasons for the robust growth, he said rising consumption, sustained income growth and favourable demographics with younger people forming a large chunk of the population, were the key drivers of growth. In every product category, the company was witnessing a 35-40 per cent growth. He believed Godrej's new product introduction and new product development philosophy, along with its core values and its concept of modernity and design helped it to compete with competitors as it occupied a price spectrum that was affordable. Related Stories:
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