Gain high with low prices

Sharing the success story of V Mart Retail Limited, with its philosophy of best products at lowest prices is Lalit Agrawal, Chief Managing Director of V Mart Group

Deep Shikha Bhagat: Kindly share with us the inception, growth, and success of your company.

Lalit Agrawal: The Company was incepted in 2003, when we started with a single store at Law Garden in Ahmedabad. We have grown since our inception and now we have 53 retail stores in almost all locations including metros, tier I and tier II cities. The company has always given preference to the location and visibility of the stores.

DSB: Is there any particular category of consumers that you are targeting through your retail venture? 

LA: As our punch line says ‘Less price fashion’, so our target consumer is a common middle class man. However, the price is less but there is no compromise on the quality of the products. The merchandise that we offer is quite reasonable and affordable. With affordable fashion, we target the middle and lower sections of society. As for the age group of the consumers is concerned we have something for everyone in the family.

DSB: Kindly elaborate on various retail formats that V- Mart has and are performing best.

LA: V Mart has basically three retail formats; V Mart, Kirana Bazaar and V Galz. V Mart is a fashion retail format, where we offer all types of fashion for men, women, kids, fashion for home, footwear, ties, luggage, and accessories for all. Kirana Bazaar format is an add-on to the fashion store. Whereas, V Galz format includes ladies western wear and targets young aspiring ladies between 16-30 years of age.

DSB: How different do you think your company is from other retail players in the similar category in terms of products, and consumer experience?

LA: The kind of merchandise that the market has and the kind of merchandise we have is quite different. Like, the kind of presentation, merchandise, customer base, and loyalty that we have built is completely unique. With our medium sized hypermarket format, we are targeting fashions that are not available in any other hyper stores. We have a complete range of products that include female denims to men’s denims, and from men’s shirts to casual shirts at reasonable and affordable prices. The company has production units in Ahmedabad and Gurgoan. We manufacture, and design products according to the latest fashion and have our own design centres.

DSB: What all marketing and promotional strategies the company is using for the promotion of its brand?

LA: As far as marketing strategy is concerned, we have our stores in prominent market locations. The company’s strategy is to create a consumer-friendly environment in the store. In addition, the company emphasises on the appearance and the look of the store, and ensures ways to keep the consumer intact. The company is utilising all the advertising mediums, publications, and PR contacts to promote its brand.

DSB: The economic slowdown is over now. What impact does it had on your business and how are you planning to revive your business?

LA: Economic recession acted as a boon for V Mart. The company made lot of changes in its strategy for the betterment. The company has closed or transformed its non- performing stores. In these times, people tend to move towards less expensive solutions or rightly priced products and the company is always answering such calls. In addition, because of our punchline called ‘Sabse Sasta Sabse Acha’, we were able to draw maximum benefit even in the recession period.

DSB: How many retail outlets do you have at present and how many more are expected in the near future?

LA: Currently we have 53 retail stores and within a year, we plan to open 50 more stores.

DSB: Which all categories of products and brands do you sell from your retail stores?

LA: We have a wide range of categories, like formal wear, casual wear, ethnic wear, wedding collection, infant wear, infant products, toys, sports goods, cosmetics, footwear, and a number of products fashioned in a way that would they suit customer’s pocket. Products are well crafted and well designed to make them look unique.

DSB: Lots of international brands have already entered the Indian markets which are providing world class shopping experience to the Indians. What steps are you taking to upgrade your stores to offer similar kind of shopping experience in your retail stores?

 LA: From day one we are trying to do this. We are selling products at a very reasonable price, one-tenth of the prices of the international brands. We have up graded the furniture, the ambience, the kind of environment inside. We always try to reach out to those customers who have been to other stores but could not buy from them. We are also coming up with loyalty solutions to retain our customers. We are trying to come up with small software to track the people who have some identification number and have instant receipt of their purchasing pattern. Then we would like to reward them with some new offers, schemes, and discounts.

DSB: What is your reaction to the Financial Budget 2010-2011?

LA: We always are happy with what ever is coming. We always think positive and try to do things in a positive fashion. We feel that the budget has been good apart from service tax on retail rental which every retailer has to pay and we feel that, it will eat away our margins.