Croma eyes 40% growth in private label sales this year

Tata Group's electronics retail chain, Croma revealed that it is eyeing 40 per cent growth in its private label sales, with revenue of Rs 250 crore by the end of the current fiscal, as per a report in PTI.
Croma eyes 40% growth in private label sales this year

Tata Group's electronics retail chain, Croma revealed that it is eyeing 40 per cent growth in its private label sales, with revenue of Rs 250 crore by the end of the current fiscal, as per a report in PTI.

‘This year our private labels should be close to Rs 250 crore, up from Rs 180 crore last year,' Ajit Joshi, MD & CEO, Infiniti Retail said. 

Currently, private labels contribute 6-7 per cent of the turnover of Croma, which stood at Rs 3,200 crore last year. Meanwhile, Croma today entered into a strategic partnership with online marketplace Snapdeal.com to sell a range of products online. As per the deal, Snapdeal would create Croma's flagship store on its portal to sell electronics items including mobiles, tablets and laptops.

However, Joshi said it would not be selling its private labels through this tie-up. "Currently, we are talking about branded products because there is logistics involved.

"Snapdeal has got a fantastic reach in small towns, which will help me serve those customer segment. As we gain confidence, we may move forward and look at putting those products online as well," he said.

Croma had launched its online store cromaretail.com two years ago and Joshi said the operation is profitable now.

"Almost Rs 1.5-2 crore is the turnover on weekly basis and the same is operationally profitable now," he added.

Launched in October 2006, Croma has 96 outlets across 16 major cities and sells over 6,000 products. It plans to take its store count to at least 105 by the year end.

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