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After creating a slew of FMCG products, the ₹22,000-crore Future Group is building its presence in the consumer durables space in big ticket categories such as refrigerators and televisions under its private brand – Koryo.
Rajan Malhotra, President- Retail Strategy, Future Group, told Businessline , “Koryo gives us revenues of ₹150 crore today but we plan to take it up to ₹250 crore by next year. There are plans to have strategic tie-ups with Indian companies as we want to bring in new technologies and have quality products with affordable pricing.’’
Pitching its private label Koryo against established MNCs such as Sony, Samsung and LG, the Future Group, which is already doing backward integration for its foods business through its food parks, may also look at manufacturing its range of consumer durables in India.
“Most of the MNCs like Sony, Samsung and LG have already set up their manufacturing base in India. Though we import most of Koryo’s products from China, we are seeking strategic tie ups to source and make products jointly with Indian companies,’’ added Malhotra.
Koryo is being sold through the speciality format of e-Zone and is likely to have more of a digital presence through ezoneonline.in in the future than standalone brick and mortar stores.
Future Group intends to set up special zones for Koryo within its retail formats such as Big Bazaar. “We are in the process of having a re-branding exercise for Koryo. There are plans to set up Koryo corners across our retail formats to showcase the products which are 15-30 per cent cheaper than the rest of the consumer durable brands,’’ added Malhotra.
However, while Koryo is getting revamped with new products and branding, the Future Group’s consumer electronics retail format eZone is getting restricted to the online platform. Unlike its competitors Reliance Digital, that has already marched up with 1,500 stores, eZone will rationalise its store count. “Today we get sales of ₹1 crore every month from our online site. We are also waiting for our omni channel strategy to take off to reduce cost and increase sales,’’ he added.
With sales turnover of ₹1,500 crore, eZone currently has 90 points of sales with 40 standalone outlets.
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