Kolkata-based More Group a Rs 1,000 crore conglomerate has forayed into retail business for apparel with the launch of ‘SNV Shoppee’, (pronounced as Sanvie Shoppee) an organized value retail chain of stores. SNV Shoppee will operate under the newly formed company Sanvie Retail Pvt. Ltd. More Group is investing Rs 150 crore in the first phase of the launch of the new entity. The company is coming up with 75 shopping outlets across various states of the country as of today.
It is a one-stop shop for menswear, womenswear, kidswear, and accessories, etc. The brand was launched to bridge the economic gap by making high-quality apparel that is pocket-friendly. Moreover, the brand aims to enter the modern retail industry by its physical retail stores in Tier-I, II, and III cities.
“As a garment manufacturer with over 74 years of expertise, we have better product knowledge. To emphasize this point, we have been a supplier to several stores in the past, and our performance has always exceeded expectations, and we have continuously outperformed our competition earlier. As a result, we thought that now is the right time to foray into a retail venture with SNV Shoppee,” emphasizes Varun More, Managing Director, Sanvie Retail Pvt Ltd.
Betting Big on Value Retail Segment
Throughout the last few decades, the retail industry has experienced various changes in consumer behavior, store formats, retailer profitability, or e-commerce. The industry has done an excellent job of developing models/ formats that successfully tapped into the customers’ requirements and expectations.
'Value Retail' is another such long-term lucrative strategy that has piqued the interest of customers. Regardless of any growth in customer expectations, the foundation of Indian consumption has always remained valuable. Value stores are making good use of the price fashion arena, ensuring shoppers that they are getting good value for their money. International/ premium brands may now reach clients in tier II and tier III cities thanks to value retailing.
Every second, customers are becoming more aware, engaged, and educated. Brands need to be available where the customer is present or else the customer will switch to another brand that is available in their nearest location. A shift in focus from shop design to category and goods has allowed private labels to develop rapidly as a result of value-fashion retailing. The factors that continue to propel the rise of value retailers are the credibility and dedication they put in the business.
“At SNV Shoppee, our brand USP is the availability of best quality product at a reasonable price and the pleasurable ambiance we provide at our outlets. The back-end integration helps us to bring the cost down while maintaining the quality,” he states.
The brand primarily caters to customers in suburban and semi-urban areas and plans to expand in tier II and tier III cities to cater to the larger mass.
“We are mainly present in West Bengal, Odisha, Uttar Pradesh some parts of North-East states totaling presence in 9 states The main reason for exploring these states is because there are a lot of virgin areas which are still untapped and our focus will be to convert them to a favorable destination for business,” he says.
To aid the expansion plans, the brand will be investing Rs 150 crore during the first phase. In the second phase, it has plans to invest another Rs 100-125 crore (2022-23).
“Furthermore, we are very open to investors backing the company, as we believe there is more synergy and value creation in this sector for investors in the long run,” he asserts.
“Currently, we are completing the process of launching 75 stores across 9 states. We would be introducing 10 more stores by March 2022. In our next phase there will be 50-75 stores in the coming 2-3 years,” he adds.