Mapping growth structure

Louis Philippe just opened their largest stor in Delhi and are all set to take on other tier 1 markets. Akur Gaurav of Indianretailer caught up with Jacob John, Brand Head, Louis Philippe who talks about the store and other expansion plans. 

Ankur Gaurav (AG): Who has done the designing of this store for Louis Philippe in Delhi?
Jacob John (JJ): We do not believe in outsourcing our work. We have a brilliant design team which takes care of lighting design, visual merchandising and store design. If the in house people cannot understand the brand, how can you expect the outsiders to design the store matching the brand philosophy.

AG: What are your expansion plans?

JJ: We are aggressively planning to expand across India. Earlier this year we planned to open 50-60 stores, till now we have already opened 15 and are planning to open another 35 in the coming months. We will be targeting the tier-1 cities now.

AG: Where will be your immediate next store coming up?

JJ: We will be opening a store in Ranchi very soon and as I said, we are aggressively focusing on opening 35 stores; majority of them will be in the fresh towns.

AG: How was the brand’s performance this year?

JJ: Our revenue crossed Rs 1,000 crore mark and we have been growing at a rate of 25 per cent per annum. With the increasing number of stores, we are expecting to grow at a rate higher than this.

AG: What will you prefer for your stores, high streets or malls?

JJ: Well it all depends on the location of the high streets or the mall. The south extension market which is in the heart of the city alongside the ring road makes it convenient for the customers to drop by. There is an advantage at the high streets that the retail space is not according to the mall’s predesigned structure. Flagship stores are better set at the high streets

AG: What is the investment incurred for opening a flagship store?

JJ: It again depends on the location. Price of retail spaces are increasing day by day and it accounts for the largest share of the store budget. For this store size of 3,500 square feet, we have invested around Rs 1.5 crore.

AG: What is Louis Philippe’s marketing budget?

JJ: We have been spending around five per cent of our budget on marketing. And we are not planning to increase our marketing budget as it automatically keeps increasing along with our growth.