Mr Ram Chandra Aggarwal
Chairman and Managing Director,
Vishal Mega Mart

shares the growth of his professional career and the success of Vishal Mega Mart, in an interview with Retailer

Retailer: Share your voyage as retail professional with us?
Ram Chandra Aggarwal: The saga of Vishal retail dates back to 2001 when I realised the emerging potentials in the retail industry which is indeed the largest sector in the global economy. The Vishal retail started its corporate journey with a mission to bring quality garments with in the reach of the common man. Imbibing its innovative concepts and techniques the Vishal retail identified the vast scope of growth in retailing for the common man. Its stores have gained an enviable prominence as being the ideal store for the common man where an extensive variety and quality is offered at a very, very reasonable price structure. The Vishal retail expertise in the field of retail marketing over the years and its focus on regions, cities and exact customer preferences have earned the Vishal retail an undisputed leadership status to Vishal mart. 

Retailer: What was the motivating force behind opting for retail as a career? What challenges did you face and how did you manage to over come tham?
RCA: The motivating factor is frequently changing consumer's demand, purchasing trends and the focus of time management in merchandising to enhance value for existing buyers, which are becoming more demanding and rationale oriented.
Price war is the biggest challenge so far followed by finding right location, giving schemes for costumers, running costumers loyalty programs and assortment planning as prevalent across the world. Pilferage continue to be a nightmare for the retailers
and controlling it has become a big challenge. In retail business it's the scale that counts and that is possible with opening of
more outlets.


Retailer: What was the inspiration behind Vishal mega mart? Elaborate on its origin, growth and success?
RCA: It all began when I was just 21 year and collected together Rs1 lakh through family savings and loans from local moneylenders to open a small shop in Kolkata's Lal Bazaar that started selling readymade garments. The business was a success and from there and then, is no looking back. In tune with the pulse of the market, I envisioned a mega store that would sell garments at prices none other could match, made possible though in-house manufacturing. Today, in addition to garments, Vishal Mega Mart stores retail the entire range of household products, FMCG and electronic goods. There is no secret formula for success. We just cut out the middle-man wherever possible. And we pass on that cost benefit to our consumers. We attribute our success to our understanding that while our middle class customers are price conscious they want the best value for their money. They are smart, savvy shoppers, who look for bargains and appreciate a good rewards programme.

Retailer: Being the pioneer in budget stores concept in India what do you have to say about this concept?
RCA: Vishal is one of the pioneers in the field of organised retailing. It's innovative methods and research work has paid dividends and it has now become a major player in the retail market. A number of its pioneering concepts have now emerged as industry standards. For instance, the company integrated backwards into garment manufacturing and expanded its retail presence at the front end.

Retailer: How many retail stores do you have at present?
RCA: 50 fully integrated stores spread over the area of approximately 12,89,000 sq.ft in 38 cities across India.

Retailer: Your stores offer wide range of products from food to apparel, from home furnishing to travel guide and from household items to lifestyle etc. What strategy do you follow to make all the sections of the store work efficiently?
RCA: Vishal's concept of complete family store gives value to all age groups, genders and believes in bringing smile on each and every face.

Vishal believes in presenting innovative and effective brands creating a whole new segment and most importantly delivery on limited budget. Today, we offer wide range of products for the entire family. Our products cater to the needs of all age groups. A large proportion of our turnover comes from men's wear, but now we have diversified in other segment of garments. We believe in family retailing and satisfying the needs of the entire family. Our products are of good quality and it is not only within the reach of the rich people but also of the common man.

Retailer: Indian consumer has changed a lot. What is your opinion on this?
RCA: Consumer loves to indulge in the luxury of browsing through an uncultured store while consulting family members before buying. Family staff members, the comforts of using trolleys for bulk purchase and efficient billing counters, the shopping experience is a quantum leap from the hole-in-the-wall Kirana Stores. The add-ons do not stop their. There is ambient music, food counters for a quick bit and activities for children. Services such as home delivery and phone orders add to the convenience.


Retailer: A large number of international players is entering the Indian retail scenario. How do you think local players would take it up as a challenge?
RCA: RCA: Yes, it's a big challenge. India is just experience the retail boom with anticipated steep growth in business. Many Indian and Foreign retailers are going to have intense competition among them to entice customers with different features of products and services. The Indian players have to understand diverse culture profile from north to east to west with a diversity of needs and expectations. It is necessary to capture accurately customer's expectation and their regional bias to assess the training needs of the retail staff to meet their customized expectations. Indian retailing business is in the initial phase of the learning curve and may be benefited by adopting the following time-tested techniques already deployed by top retailers of the world.


Retailer: What advice would you would like to give to aspiring entrepreneurs of India?
RCA: A close understanding of the masses and their preferences. These expectations are further, exceeded with superior quality products high aspirational appeal and when offered with an irresistible price tag the customers respond with a unique loyalty.

Interview conducted by Pallavi Majha
Email: spallavi@franchiseindia.com