Max Fash­ion on a Growth Spree, Tar­gets 50 new Stores in 2018

Cur­rently, Max Fash­ion stores are present in 100 cities across In­dia and the brand plans to ex­pand to 20 more cities in the com­ing year. The brand will cover 120 cities with its brick-and-mor­tar for­mat…

Images Retail - - FRONT PAGE - – By Charu Lamba

Max Fash­ion has re­cently opened its 200th store in Chennai, mark­ing the oc­ca­sion as one of the many mile­stones achieved in the past 11 years of the brand’s pres­ence in In­dia.

Cur­rently, Max Fash­ion stores are present in 100 cities across In­dia and the brand plans to ex­pand to 20 more cities in the next one year. The brand will cover 120 cities with its brick-and-mor­tar for­mat. Apart from that, its e-com­merce por­tal, Max fash­ion. com serves to con­nect to con­sumers in more than 500 cities. Talk­ing about the same, Vas­anth Ku­mar, Ex­ec­u­tive Di­rec­tor, Max Fash­ion In­dia, told IM­AGES Re­tail Bu­reau at the side­lines of IRF 2017: “The growth of Max con­tin­ues to be as strong as ever. To­day, we have crossed 200 stores and by the end of FY 2017-18, we will be adding an­other 50 stores.”

The Om­nichan­nel Jour­ney So Far

Om­nichan­nel has opened a bag of op­por­tu­ni­ties for re­tail­ers, and Max Fash­ion is also leav­ing no stone un­turned to pro­vide a sim­i­lar, un­par­al­leled ex­pe­ri­ence to its cus­tomers across all medi­ums. Ku­mar said, “Apart from open­ing phys­i­cal stores, we are also con­nect­ing the in­ven­tory of all on­line and of­fline stores through clickand-col­lect. Cus­tomers can shop on­line and then col­lect the item from any store. They can also get al­ter­ations done in-store if needed.”

“By go­ing Om­nichan­nel, the ful­fil­ment and con­ve­nience for the cus­tomers goes up. It also helps brands give con­sumers a su­pe­rior ex­pe­ri­ence,” he added.

Max is also work­ing on an End­less Aisle pi­lot project in Bengaluru. The brand is con­nect­ing its key stores to its ware­houses so that prod­ucts are avail­able to con­sumers. If a prod­uct is not in store at a par­tic­u­lar point in time, cus­tomers

can place their or­der and the brand will get it de­liv­ered to their home from the ware­house.

Max will be us­ing kiosks and tablets wherein the cus­tomers can browse the range and then place their or­ders. To­wards this, they are Wi-fi en­abling all their stores as well. The brand is now train­ing its staff to man­age this fa­cil­ity.

The brand is now in­vest­ing more into its dig­i­tal mar­ket­ing. It is also get­ting into dig­i­tal cat­a­logues, cre­at­ing dif­fer­ent look-books and try­ing to con­nect with cus­tomers. They are also pro­mot­ing their app.

Max gets just one per­cent of its busi­ness from its on­line chan­nel. How­ever, over the next five years, the brand hopes to achieve a healthy con­tri­bu­tion from the same.

“Over the past two years, we are work­ing to­wards mak­ing Max Fash­ion a true Om­nichan­nel brand. We have tied up with ven­dor part­ners who are pro­vid­ing us with so­lu­tions and we are us­ing their plat­form to­wards bet­ter track­ing and an­a­lyt­ics, so that we can pro­vide the con­sumer with a seam­less ex­pe­ri­ence. We are also us­ing their third­party ven­dor plat­form for lo­gis­tics,” said Ku­mar.

The Road Ahead

Max has wit­nessed rapid growth since its in­cep­tion – from a growth rate of only 2025 stores per an­num till just four years ago, to 2017 that saw Max dou­ble its growth rate by open­ing 50 stores in this cal­en­dar year. The brand is now plan­ning to lever­age its na­tion­wide ac­cep­tance by con­tin­u­ing to ex­pand all over In­dia, with a fo­cus on north­ern and eastern mar­kets.

Ac­cord­ing to Ku­mar, “We are open­ing one store a week. So, in a year, we plan on open­ing 50 stores. This is what we did in FY 2017-18 and this is what we are plan­ning for the next fis­cal year too. Ev­ery store has around ₹2.5 crore capex. That ways, it is a ₹100 crore in­vest­ment ev­ery year. We will be aid­ing the ex­pan­sion plans though our own in­ter­nal ac­cru­als.”

Max is in its 12th year, and grow­ing at the CAGR of 32 per­cent from past 10 years and ex­pects a sim­i­lar growth for next three years.

“The growth for­mat in the same store has been in the re­gion of 13-15 per­cent and the trend has stayed sta­ble for past two to three years. We are con­tin­u­ing to have same trac­tion. We are right now grow­ing at 13 per cent like-to-like growth and we ex­pect the like-to-like growth to con­tinue in dou­ble dig­its be­tween 11 and 13 per­cent for over next three years as well,” re­vealed Ku­mar.

“Whether on­line or of­fline, a brand needs to have four things to be suc­cess­ful – you need to be a des­ti­na­tion, you have to of­fer fresh­ness, give cus­tomers an ex­pe­ri­ence to re­mem­ber and com­pletely elim­i­nate all pain points,” he added.

He con­cluded, “This year we have had a run-rate of ₹3,000 crore. We ex­pect Max to be­come a ₹5,000 crore brand by 2020.”

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