How Brand Sanjeev Kapoor is leading dining market through licensing?
We want to create a concept where consumer walks into Sanjeev Kapoor branded corner and get entire home solution from table and kitchen linen to kitchen fashion.BY Gargi Bhardwaj | May 17, 2016 | comments ( 0 ) |
Dining is very contemporary in nature and not one single brand caters to all dining related needs. Sensing this gap, Brand Sanjeev Kapoor by Chef Sanjeev Kapoor aims to be one stop solution for all dining related needs of the consumers and the brand has taken the licensing route for the same.
In a candid chat with Retailer, Vishal Sinha, Business Head, SK Brands Pvt Ltd shares insights about the licensed range of BSK and the challenges faced.
How has been the response so far for Brand Sanjeev Kapoor licensing program?
Kitchen linen and the cutlery were the initial ones that we have launched. Beyond that right now we have fine bone china crockery. The next one in the league would be glassware. Also we are looking at storage solutions and beyond that would be little premium stainless steel which is very edgy and stylish than the ones available in market.
What market potential do you see in this segment and how are you position BSK in the market?
Dining is very contemporary in nature, where one has to collate multiple products from multiple brands. From houseware category per say, the market is very fragmented as there are brands concentrating on a particular product only. You might have brand which is only in glassware or plastic.
On contrary, we are looking at creating a lifestyle houseware segment through Brand Sanjeev Kapoor and create a cross category of products under it so that it becomes one-stop solution for customers. Houseware as a category is so far a specialist category where brands specialise in one kind of products. We are trying to position ourselves as a home solution brand offering not only functional, but also more experiential lifestyle products. We are partnering with various companies for the same.
We want to create a concept where consumer walks into Sanjeev Kapoor branded corner and get entire home solution from table and kitchen linen to kitchen fashion (aprons) integrated with entire dining look including table runner, table covers.
What innovative lines have you added to your offering?
We are in fact the first organisation in the country to give an entire soft-line home solution which integrates kitchen and dining area. This is what we did in our partnership with Tangerine. When we did table runners, we didn’t do table covers but then there was a demand from consumers. Again bread basket was in demand. Next range to be launched would have these two product categories added to it.
Total how many licensees have been signed for entire collection?
We are trying to keep the count lesser because we don’t spread everywhere. Rather we are adding more licenses to the existing licensees. For instance, we launched cutlery in the stainless steel category which was more inclined towards the ones used in fine dine restaurants. Such range was earlier not available at retail outlets if any consumer intends to buy.
The quality of steel was similar to that used in surgical tools and often called as 18/10 grade of stainless steel which is mostly taken by international brands. Our entire range is in 18/10 grade. Consumer somewhere doesn’t spend so much time in buying cutlery and hence find it expensive due to lack of education. We are trying to create awareness. Also, we are extending that range to serving range. Even if you look at current range we have, it is not a basic one, wherein we have 32 different SKU including tea spoons, service spoons, coffee spoon, jam spoons, butter spoon. At the same time we have fish fork, pastry fork, cheese knife, shrimp fork along with others. It is not like doing three or four products but bringing the entire width of category which should be there ideally. When you go for Sanjeev Kapoor cutlery, you get the largest width in the market today.
How has been the demand so far?
From business perspective, dinner spoon are the fastest moving ones, and cheese knives are the slowest. So maybe we may not introduce too much of designs in cheese knives, because if I am putting 32 different products in a set of six, instead of 16 or 24, the inventory capacity has to be huge.
What are the challenges you face and how do you address them?
The mind-set of retailers is such that they treat cutlery as an ancillary. So to get shelf space with premium retailers is a little tough but we have been able to convince Home Stop and Home Town.
Coming to trade, the counters are very conservative, but overall response has been promising. Typically all our products come with warranty and brand assurance. We are also raising the bar and launching pure silver cutlery. Earlier we have launched ones with gold and silver plating. The price point is going to be above Rs 1.5 lakhs as it is more like taking this category to luxury.
What are the retail points other than Home Stop and Home Town?
We are also selling at several trade stores now because from retail standpoint, we haven’t got 10 different speciality retailers. The focus right now is to reach out to customers through existing trade as these categories are majorly trade driven. We have distributors across India and the products are reaching out to all the outlets.
Trade penetration depends on the geographical location as not all retailers would be able to sell cutlery range, but coffee mugs priced at Rs 151 onwards are quite volume generating. We are catering affordable to premium categories as we do not aim to gain all margin from one category. The volume compensates at lower price points.
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