Who is your target consumer and what consumer area/sensitivities does your brand stand for?
Our generic target consumer is anybody who is seeking and appreciates trendy fashion. It can be anyone looking for attire from work to party. What is unique about our collection is that it can be styled for work, a casual lunch and even an evening outing with friends. High-street brands established in India, work well because they are trendy, but there is another segment that might not buy from these high-street brands because they think it’s not exclusive enough. We have the best of collections, but we make sure we offer only a few of every style at our store to maintain exclusivity that people want. Aavantam means ’Welcoming of good things’ and keeping that in mind we strive to present new collections as frequently as possible.
What are the price points your brand ranges in?
Our price points vary from 1500 to 8000 depending on the products. Where accessories range in the 1500 bracket, the apparels start from 2000 going up to around 8000.
There exist many players in this segment, what’s your strategy to beat the existing competition?
What makes our brand different is that it is exclusive and all apparels are made in Europe. They are trendy and in sync with what the European markets offer. Apart from that, we have one day guaranteed delivery to all major cities of India.
Keeping in mind the growing customer preferences, what’s your Omni-channel strategy? Do you sell through own ecommerce or through marketplaces and which ones?
We have our own setup. Currently, we stock our own goods and sell it through our own portal. It gives us an edge to make sure the orders are delivered in a day’s time.
What’s your expansion plan? Will the investment be done through internal accruals or external funding?
We have just recently launched the brand portal. Now, we have even got permission to sell overseas, which means the world is our potential customer. More than targeting locations, we are trying to target a set of people with similar interests like us. Investments currently are done only by our group companies and personal investments. We will consider external funding as and when the opportunity arises.
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:
- 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.
- 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.
- 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:
- Fresh, Customizable Offerings: Subway remains committed to delivering high-quality, made-to-order food that aligns with consumer health trends.
- Localized Menu Innovation: Expanding its menu to include more regional flavors and healthier options will be central to sustaining growth.
- Wider Retail Presence: Strengthening its footprint in metros and Tier II and III cities will ensure greater accessibility.
- Digital and Technological Integration: Embracing digital platforms for seamless ordering, loyalty programs, and data-driven decision-making will be critical to scaling operations.
- 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.
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