How is House of Candy Planning to Make a Global Foray This Year
  • IR
  • IR
  • IR
How is House of Candy Planning to Make a Global Foray This Year

The Indian candy market was valued at $1643.64 million in FY2020 and is forecast to grow at a CAGR of 15.40 percent to reach $3661.68 million by FY2026. One of the brands that plan to rule this market is ‘House of Candy’. Starting with just a single kiosk at DLF Mall Saket 8 years ago, the brand currently operates more than 210 stores.

“We have seen 100 percent growth Y-o-Y for the last 8 years. The Pick N Mix concept is unique and has been grabbing a lot of eyeballs in every model. From bakeries and departmental stores to 5-star hotels, consumers will find House of Candy everywhere. We want our customers to have a particular favorite candy that brings them to us and then get to try a variety of them. We have got cables and belts in multiple flavors, which widen the choices for the customers,” Kanu Priya Sharma, Co-Founder, House of Candy said.

Establishing Offline Presence

At present, House of Candy has over 210 stores across 60+ cities, of which, 70 percent are company-owned while the rest are franchises. Recently, the brand opened 2 new stores at Lulu Mall Bangalore and Jaipur Airport, and has about 20 more stores in the works. 

“We are aiming to open around 100 more stores pan India by the end of FY23. We further aim to have over 500 stores across India by 2026. We are targeting our Shop-in-Shop concept (SIS) for expansion. It is much more scalable and has a lot more touchpoints than any other concept,” Sharma asserted.

The brand has also noticed that Tier-II cities have a lot of potential in the confectionery sector and that’s where it is headed. In the last month, it opened a franchise kiosk in Aligarh, Bikaner, Behror, and Bagru, and a high street retail store is coming soon in Anand, Gujrat. 

How is House of Candy Planning to Make a Global Foray This Year

Online Play

Apart from its own website, House of Candy is available on Amazon, Flipkart, Halfcute, Meesho, Jio Mart, Paytm Mini App, Rk Group (formerly, Cloudtail), and Dilocious among others.

Currently, the brand’s e-commerce sale contributes 9 percent to its total sales. It wants to take this number to 20 percent by the end of this year.

“After expanding up to 210+ stores, we realized that the key for us is quantity, we want to be placed in every nook and corner offline as well as online which will then add to the revenue. We are also working on collaborations with certain brands to make House of Candy the go-to brand for the gifts,” she stated.

Product Portfolio

The brand is presently offering over 200 SKUs in categories like Gummies, Lollipops, and Fizzy to name a few. Its best-selling SKUs are Gummy Bears, Marshmallows, Dark Chocolate Almonds, and Fizzy Jelly snakes among others.

House of Candy is planning to bring more veg candy options this year.

Recently, the brand launched three new merchandise options - squeeze box, wrapped box, and sugar plum cornet, all of these are available at its stores pan India and on its website. It is also working on introducing new merchandise this year.

How is House of Candy Planning to Make a Global Foray This Year

Technology: A Game Changer

Technology plays a really big role in the brand’s business. Starting with its e-commerce platforms to its retail outlets, technology has made communication with customers easier.

“The best thing that technology has given us is a way to understand our target audience better. Apart from this, it has also enabled us to predict what our customers would want in the future or what is it preferring these days. The automated process of showing the customer similar products and the ads that follow the prospective customer according to their browser history has enabled us to acquire new customers and also get repeat purchases,” Sharma noted.

Building Brand

Social media and email marketing have been essential tools for the brand to push its online business. To get more traction on the website, House of Candy is pushing its focus towards Facebook and Google advertisements, and SMS and email marketing. It is also building a community on Instagram with more relatable content and new filters.

House of Candy is further boarding a CRM program to eventually launch its customer loyalty program soon. 

Apart from this, the brand is planning to increase customer interaction with it physically; hence it is planning to host multiple customer-centric events in its stores pan India.

READ MORE: House of Candy to Foray Into Merchandising Segment

Future Plans

The brand has garnered revenue of Rs 44 crore in the last financial year. It is expecting to achieve the revenue target of Rs 68-70 crore in the current financial year.

Additionally, House of Candy plans to enter the global market by the end of this year. It is aiming to open its first store in Hong Kong and Thailand.

“We are also pushing towards increasing our placement in Modern Trade. We are already present in Modern Bazaar, More, and Spencer to name a few.  We are also looking at more collaboration with kids’ brands to maximize the audience and add more value to what we are offering,” Sharma concluded.

 
Stay on top – Get the daily news from Indian Retailer in your inbox
Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
  • IR
  • IR
  • IR
Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
 

Subway, the global leader in freshly made, customizable sandwiches, has achieved a significant milestone in India by opening 100 new stores in 2024. This expansion underscores the brand’s rapid growth trajectory in one of its fastest-growing international markets. With a renewed focus on modernization, localization, and customer-centric innovations, the brand is strengthening its position in India’s highly competitive Quick Service Restaurant (QSR) industry.

A Landmark Achievement in India's Growth Journey

India’s dynamic and evolving food industry has presented a lucrative opportunity for Subway to expand its footprint. With the opening of its 100th store in Lokhandwala, Mumbai, Subway now boasts a formidable presence of over 900 stores in more than 160 cities across India.

“Reaching this milestone of 100 new stores in a year is a testament to our customers’ trust in the Subway brand. This marks a significant chapter in Subway India’s growth journey, reflecting our unwavering commitment to delivering fresh, high-quality, and made-to-order sandwiches to our discerning customers,” said Tarun Bhasin, CEO of Culinary Brands, the exclusive master franchisee for Subway in India, Bangladesh, Sri Lanka, and other countries.

The brand’s aggressive expansion in 2024 is driven by the increasing consumer demand for freshly made, healthy, and convenient food options. As lifestyles change and urbanization accelerates, Subway is strategically positioning itself as a preferred choice among India’s young and working population.

Strategies Driving Rapid Expansion

The remarkable success of Subway’s expansion in India can be attributed to multiple key strategies:

  1. Leveraging Market Trends: Consumers today are more health-conscious and seek fresh, nutritious, and made-to-order food. Subway’s offering of fresh ingredients and customization aligns perfectly with this trend.
  2. Penetrating Tier II and III Cities: Recognizing the potential of India’s smaller cities, Subway has expanded beyond metropolitan areas. “Our innovation team closely follows local and international trends to offer an exciting menu to consumers. Our current menu already features multiple localized options, such as Paneer Tikka and Tandoori Chicken, which are very popular as they offer familiar tastes while maintaining Subway’s global sandwich-making approach,” Bhasin stated.
  3. Modernized Store Design: To enhance customer experience, Subway has introduced a refreshed store design that is more inviting, convenient, and modern. The response from customers has been overwhelmingly positive. “The new look aligns with what today’s new-age consumers seek – a smart and inviting ambiance that reinforces the freshness associated with Subway,” added Bhasin.

Subway’s Focus on Tier II and III Markets

While Tier I cities remain key markets, Subway is aggressively expanding into smaller cities to tap into their growing disposable income and rising demand for global QSR brands. Establishing outlets in high-footfall locations such as malls, airports, and highways ensures greater brand visibility and accessibility.

“At Subway, we recognize that every market has unique preferences and challenges. That’s why our menu innovation team continuously researches and adapts offerings to suit regional tastes while maintaining our global standards,” Bhasin explained.

Menu Innovations Catering to Evolving Preferences

The brand has also introduced new product lines to cater to India’s evolving taste preferences. Recent additions include the Hot & Cheesy Signature Subs and Breakfast Specials.

“Consumers love our Hot and Cheesy Signature Subs. They are the perfect indulgence during winters, offering 1.5x filling, extra cheese, and served piping hot. Options include Cheesy Paneer Tikka, Mexican, American Barbecue, Chicken Tikka, and Lamb Pepperoni,” said Bhasin.

Subway’s Breakfast Specials are another hit, offering fresh, made-to-order sandwiches that cater to professionals and early risers. “It’s a perfect fit for morning meals, and customers can walk in or order online in metros and mini-metros to relish these sandwiches, best paired with hot coffee,” he added.

Technology-Driven Growth and Customer Engagement

Subway is harnessing technology to enhance customer experience, streamline operations, and support its rapid expansion. Key tech initiatives include:

  • Customer Engagement: Tools like Net Promoter Score (NPS), Online Reputation Management (ORM), and Customer Relationship Management (CRM) are used to interact with customers and gather insights.
  • Retail Expansion Support: Specialized technology tools aid in identifying potential store locations, ensuring efficient supply chain management, and optimizing operations.
  • Digital Transformation: Enhanced online ordering, loyalty programs, and AI-driven recommendations are being integrated to provide seamless customer experiences.

“Technology has been an anchor for multiple departments at Subway. Various specialized tech tools are leveraged to support retail expansion and drive decision-making in the supply chain, quality, and operations,” Bhasin noted.

The Road Ahead: Making Subway India’s Largest QSR Chain

Looking forward, Subway has set an ambitious goal of becoming India’s largest QSR chain over the next decade. This vision is built on key pillars:

  1. Fresh, Customizable Offerings: Subway remains committed to delivering high-quality, made-to-order food that aligns with consumer health trends.
  2. Localized Menu Innovation: Expanding its menu to include more regional flavors and healthier options will be central to sustaining growth.
  3. Wider Retail Presence: Strengthening its footprint in metros and Tier II and III cities will ensure greater accessibility.
  4. Digital and Technological Integration: Embracing digital platforms for seamless ordering, loyalty programs, and data-driven decision-making will be critical to scaling operations.
  5. Overcoming Challenges: While competition, supply chain complexities, and shifting consumer preferences pose challenges, Subway’s strategic focus and adaptability will be key to its continued success.

“We recognize that achieving our goal requires strategic planning and agility. However, our unwavering commitment to fresh, high-quality food and a robust expansion plan will drive Subway’s growth and success in India,” Bhasin concluded.

 

Next Story
Also Worth Reading