Ethnic retailer Neeru’s journey dates back to 90s when there were very few well-known brands available in this space. Starting its journey from Telengana and carving a niche in South India, Neeru’s decided to go on a expansion slew all across India since
Today, we have many ethnic wear retailers and brands in the market. How is Neeru’s different from them?
Rather than feeling any competition, we feel happy that many ethnic retailers and brands have entered the market. However, our brand is different as we are the one-stop-shop for all kind of ethnic varieties for women and most importantly, in all budget ranges. It has been a brand to reckon with in Telengana, so we decided to spread our wings to different parts of the country.
In terms of retail expansion, how much importance you are giving to metros markets and the tier-II cities?
To both, actually. We have strong presence in cities like Hyderabad and Bangalore. And that doesn’t mean that we will not add stores in these cities. We are soon opening two stores in Mumbai, one in Chennai and 4 in DelhiNCR. We are expanding fast through our EBOS in cities like Raipur, Kochi and Luknow. We have recently opened in Raipur and you’ll be amazed to hear that the store is giving me a sale of INR 2000/ square feet/ month. In fact, I’ll go the extent of saying that tier-II
markets are the most profitable markets as the rentals are low but there’s a growing penchant for fashion. We are also scouting for locations in international markets like in US and Dubai.
As an ethnic retailer, do malls or high street locations work best for you?
If you talk from the sales point of view, it really depends. When I decided to enter Delhi market, I wanted our first store to share space with the best ethnic retailers of the city, so I chose Karol Bagh. Yes, it’s very important to be visible in high street to attract enough walk-ins but mall stores always render the touch of premium-ness. Our store at NOIDA Mall of India is giving us exceeding sale within the revenue share model with the mall.
Please throw some light on your sales growth.
Last year, despite the hefty investment plan for retail scaling, we grew about 20%. We are aiming at 30%-35% this year. With the upcoming GST, we hope to save a lot in rentals.
Avnish Kumar, Director, Neeru’s