- Education And Career
- Companies & Markets
- Gadgets & Technology
- After Hours
- Banking & Finance
- Energy & Infra
- Case Study
- Web Exclusive
- Property Review
- Digital India
- Work Life Balance
- Test category by sumit
'Data Mining Along with Loyalty To Help Build Biz'
Photo Credit :
You have collected so much data on Indian customers, what is it telling you about your business?
Few years ago I would have told you that retailing was an art, it required someone with an understanding of operations. It needed someone who could risk it all and build an efficient chain. But now it is a science, we have close to two million loyal customers across different brands in the group. Central alone has five hundred thousand loyal customers. We are at that stage where we have to use this knowledge not just to generate sales, but how to engage them and stock merchandise according to their tastes and preferences. But data mining is becoming important and it goes beyond what loyalty cards tell you. It is this that will build our business going forward.
You have created a strong merchandising team to help you expand the lifestyle formats?
The lifestyle formats, Central and Brand Factory can now generate Rs 4,000 crore in the coming year. The merchandising team in Central now knows what brands work since it is a market place. It is a place where brands compete for space. Thanks to my cousin Rakesh Biyani — who created processes a decade ago — it has become such a success.
Consumption is also slowing in the country, but Brand Factory as a format grew 15 per cent, what worked?
It works because the people in the aspirational segment are more than the ones in the upper middle class. It is where people buy previous seasons collection at discounts all year round. It is a business the group banks on during a slow down because it is designed to provide shoppers a great experience at all year discounts.
Are you expanding home formats like electronics and furniture?
Electronics we have seen that the format is growing slowly, we might at another look at the strategy this year on this. Similarly with the home format we might go slow.
You have sold stake in a couple of businesses, is there a more realistic view to expanding the business now?
The group will continue to focus on the food and lifestyle formats. It is the core business. The whole business is about mapping what formats work in tier 2 and 3 cities. We'll plan expansion and the capex according to that. The Central and Brand Factory are amazing success stories for us.