To this effect, the 137-year old company has earmarked an investment of Rs 100 cr over the next 3-4 years towards building its retailing business
Wadia Group company Bombay Dyeing is reinventing its business by moving out of textile manufacturing and will now focus on retailing of home decor products - bed, bath and coordinates.
To this effect, the 137-year old company has earmarked an investment of Rs 100 crore over the next 3-4 years towards building its retailing business. In fact, Bombay Dyeing has already spent upwards of Rs 20 crore towards refreshing the brand, unveiling a new logo and designing the new look and feel of its retail stores.
The additional sum, a top company executive said, will be spent on advertising and promotional activities as well as enhancing the retail footprint across the country.
Speaking to DNA Money, Nagesh Rajanna, CEO – retail, Bombay Dyeing, said that the company has had its own highs in the past and the current focus is on reinventing the business.
"Historically, we have always been seen and perceived as a manufacturer. So to begin with, the first change is we are no longer a manufacturer. We want to be a retailer and are clearly moving in that direction. Our entire product merchandising is 100% outsourced now, which is a big shift," he said.
While the company already has a loyal base of customers, the new direction involves targeting the millennials creating fresh lines for home décor products.
"We want to cater to the existing customer base while also wanting to reach out to the millennials. This is being done by creating a new, refreshed and dynamic brand look that appeals to both the traditional customer as well as the youth," said Rajanna.
The company is also working on extending the product line as well as innovating in the product portfolio to deliver three to four new products annually.
As for its go to market strategy is concerned, there are three specific changes being made.
"We will be doubling the current base of 5,000-odd traditional multi-brand outlets in India, which continues to be a large contributor to our business, by the year 2020. Secondly, we are working on increasing the franchise base in the 500 cities with a population of over 1 lakh. This will be done through a new franchise model of over 500 stores that will offer the entire gamut of products in these markets," said Rajanna.
The company currently has 200 franchise outlets and over 30 company-owned stores that will also undergo up-gradation in line with the new look and feel, customer profiling and product portfolio.
"The company-owned stores will actually turn into experience centres as they are all on high streets and big cities of India. The numbers will be limited and there is no expansion plan for these stores," he said.
With Bombay Dyeing moving out of manufacturing and getting into consumer-facing operations, the management is also working on changing the organisational structure. Accordingly, the company is bringing on board new talent from across industries including fast moving consumer goods (FMCG), retail, telecom, etc.
"To make these changes effective, we are also investing in technology that will allow for a seamless flow of information and offer seamless connectivity. A new technology architecture is being planned, that will take care of planning and sourcing, the go to market strategy and finally the entire financial management. All three will be seamlessly connected to create a last mile visibility for both ends," he said.
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