Retail is not an easy ball game. Viveks, the CDIT retailer took almost 47 years to be what it is today, one of India’s leading retailers. B A Kodandarama Setty, CMD, Viveks Ltd shares the story so far and what future holds.
Gunjan Piplani (GP): Share about Viveks with our readers.
B A Kodandarama Setty (BAKS): Vivek was established in 1965. Vivek Limited is a professionally managed company and one of the leading and trusted consumer electronics and home appliances retail chains in India serving consumers for the past 47 years. Vivek Ltd owns two retail brands – Viveks and Jainsons.
We currently have more than 1000 employees under our umbrella of operations.
GP: Who is your ideal target audience?
BAKS: Service professionals, entrepreneurs, educated and well travelled, generally upwardly mobile people in the age group of 30 to 50 years form the core of our customer base.
GP: How many brands are operated under this company? Please name them.
BAKS: We do operate our businesses under two brands – VIVEKS and JAINSON.
The brands that we are associated with are in the region of 90+. Some of the include Samsung, Godrej, Hitachi, LG, Panasonic, Videocon, Voltas, Whirlpool, Blue Star, Daikin, Bajaj, Kenstar, Symphony, Siemens, IFB , Voltas, Nokia, Sony, Touchmate, Skull Candy, Phillips, Onkyo, Kodak, Canon, Fuji, Nikon, Sansui, Toshiba, V Guard, Premier, APC, Microtek, Eureka Forbes, Morphy Richards, Milagrow, Cascade, Racold, Venus, AO smith, Crompton Greaves, Khaitan, Usha, Orient, Glen, Sunflame, Butterfly, Prestige, Elica, Faber, Preethi, Premier, Butterfly, Lakshmi, Sowbhagya, Ultra, Hindustan Pureit, Pigeon, Prestige, Elica, Oster, Kenwood, BPL, Lumix, Apple, Micromax, Milagrow, Dell, HP, Acer, Lenovo, Compaq, Sandisk, Microsoft, Logitech, Transend, Seagate, Iomega, Belkin, Sony Ericsson, and HTC.
GP: What is the approximate minimum area for an outlet/selling point for each home segment?
BAKS: Our showrooms are approximately 5000 sq ft. This is then segmented to accommodate aesthetically all the four product segments under which the array of products numbering 44 in all are displayed.
GP: Elaborate on your store/distribution presence- number of cities and number of total stores?
BAKS: Viveks is present in Chennai, Bangalore and 15 cities and towns across Tamil Nadu and boasts of 48 showrooms. There are 14 showrooms in Chennai, 9 in Bangalore and 25 in cities and towns across Tamil Nadu.
GP: What have been your sales for the year 2011-2012?
BAKS: The sales registered during 2011-12 was in the region of Rs. 450 crores, with Home appliances segment contributing 48 per cent of sales, Consumer electronics contributing another 30 per cent, the small home appliances contribute the remaining percentage.
GP: What are the future expansion plans?
BAKS: Primarily we are looking at consolidating our presence in the existing markets and garnering thereby a greater share of the market before venturing to newer territories.
Within this thought process we will be expanding to 100 showrooms within the next three years clocking a sales of Rs 1200 crores.
Expansion and consolidation of our presence in Tamil Nadu and Bangalore is our focus.
We would like to grab a large chunk of the market size and establish a very good network in the existing geography. In the next three to four years, the company would expand its size to 100 showrooms and a turnover of Rs 1, 200 crore.