Building a different experience

In an interview to the Retailer, Mr Manoj Kumar, CEO, E-zone (Home Solutions Retail), talks about E-zone stores

Retailer: What is the background of E-zone?

Manoj Kumar (MK): We started the first E-zone store in April, 2006 at Indore. Our growth has been fast and, today, we have around 25 E-zones.

Retailer: What is the USP of E-Zone store?

MK: E-zone is a very different store from other electronic stores in the country. We thought and worked on providing the right kind of experience for buying electronic goods.

Retailer: What is the range of products offered?

MK: All the top national and international brands are available in E-zones. We have three zones in E-zone: a) Liberation Zone - This zone offers personal products like computers, laptops, handy cams, MP 3 players and mobile phones. b) Experience Zone - This zone offers entertainment products such as plasma and LCD, flat TV’s, home theatre systems, DVD players and stereo systems. c) Home Zone - This zone offers electronic and electrical appliances that include refrigerators, air conditioners, washing machines and microwave ovens among other kitchen related appliances.

Retailer: What are the measures take up to face competitions in the market?

Mk: Our store is different and experience with the customer is getting in our store. It is completely different and that is how and where we have been able to face the competition.

Retailer: What are the promotional strategies used or applied?

MK: We have run very huge promotional activities across the country.  In our promotional activities, we have given the best deals to customers in terms of pricing and gifting. We have also run a special offer wherein we have offered holiday packages (trip to Switzerland, Mauritius, India) and also a special package with free gifts on every purchase. Along with all these, we are offering gold and silver coins too.

Retailer: How many E-zone stores are operating presently and how many more are you planning to open?

MK: Till date, we have opened 25 outlets. In six to seven months, we are coming up with 25 new outlets. We are focusing on the top eight cities and also on the V class cities.

Market potential is the deciding factor for location. Currently, we are present in Mumbai, Delhi, Kolkata, Bangalore, Indore, Lucknow, Hyderabad, Pune, Agra, Ahemdabad and Baroda. 70 per cent of outlets will be in shopping malls and the ratio will remain the same (70 per cent could go into the malls and 30 per cent could go into standalone stores).

Retailer: What is the success rate of E-zone stores?

MK: Today, in cities like Hyderabad, Mumbai, Bangalore, Delhi, E-zones are the best-known places for the electronics today. People looking to buying consumer durables like laptop and mobile, prefer going to E-zone. We have got phenomenal results in terms of sales, turnover and we are moving at a very aggressive pace. In just one and a half year, we have become the largest retailer in the country.

Retailer: What is the future of these stores in India?

MK: Consumption and disposable incomes are increasing and the market will keep on growing. Because of this, future will remain bright. We have offered with our displays new experience to consumers. Today, we are the largest retailer in the country, which sells laptops with 30 or 40 laptops on display. The consumer behaviour is changing and because of this he or she is able to expose, compare products between brand A, B and C and also between product A, B and C and makes the right decision.