Innovation will keep us ahead of others: Karlo, MD, TTK Prestige Ltd
Today, we have 540 stores across India but, the new store is termed as our 'Flagship Store' because such stores are not present anywhere else in India. This is the first experiment and we are doing it in Mumbai. This is our biggest store with a floor space of over 1500 square feet for retail in Goregaon.
"The 'Flagship Store' was launched in Mumbai to provide a full experience of Prestige to the customers, which is not available anywhere else", says Chandru Karlo, Managing Director, TTK Prestige Ltd. Karlo during an interview with Swati Khandelwal, Zee Business, said, "innovation in everything is the only way to deal with the competition".
Q: Please provide some details about your first flagship store that has been opened in Mumbai and how much contribution it will have on your business? What kind of investments have you made with this store?
A: Today, we have 540 stores across India but, the new store is termed as our 'Flagship Store' because such stores are not present anywhere else in India. This is the first experiment and we are doing it in Mumbai. This is our biggest store with a floor space of over 1500 square feet for retail in Goregaon. The speciality of the store is that each of our products will be keptt on display here. Along with this, it also houses an after-sales service, which will take full care of the customers. A lot of investment has been made on it and almost Rs3-4 crore has gone on the interior of the store.
Q: Looking at the current trend, we see online players offering heavy discounts compared to stores, will this be an issue for you?
A: The first purpose of the flagship store is that the customer gets the full experience of Prestige. Possibly, you might not get a chance to find the entire product range of Prestige on the display anywhere else, even in our exclusive stores. When it comes to online, then we maintain a balance between online and offline and the prices of our products at both market place are almost same.
Q: Earlier, you have said that the Q2 numbers had an impact of the slowdown and you don't expect that second half of the year will be too good in terms of volume either. Do the challenges are visible to you, if yes, then what is your overall outlook for the year?
A: Two things are there (i) there was a base effect on last year's numbers as we grew by more than 22% in the third quarter of the previous year, which was our best growth quarter in last three years. And, we are talking on that base; and (ii) there is a demand slowdown as well. And, to fight with it, we have developed programmes to launch several new products. Recently, a new range of pressure cookers was launched on Svachh Platform and I think it will benefit us for next 2-3 quarters. Besides, rural demand will also pick up because, the monsoon, this year, has been a good one but its impact can be seen in next quarter only. The festive season has been a normal one this time.
Q: Let us know about the company's strategy to deal with competition in the Kitchen appliances segment and pressure cooker business?
A: Strategy is very simple, innovation in everything, whether it is a product, processes, the way to have touchpoints with the customers and maximizing them. We are focusing on innovation and several products have been launched and others will be brought in next few days.
Watch Zee Business live TV below:
Q: How the focus on premium products will improve your margins? What is your strategy on margins?
A: Margin is a final derivative and our whole focus is on innovation and increasing the value equation to the customer and therefore giving the reason to the customer to upgrade.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.