News: Pantaloon's Electronic Bazaar to have in-house brands
(TNN 22/04/2006) Mumbai - After giving FMCG majors cause for worry through in-house brands in its Big Bazar and Food Bazaar outlets, Pantaloon Retail is now gearing to shake the consumer durables and appliances categories by introducing private label brands here as well. The private labels will shortly be introduced through Electronic Bazaar (its shop-in-shop within Big Bazaar) and its newest format, e zone.
The products being initially launched include small appliances, kitchen appliances and home theatre systems, which are expected to hit its stores in about two weeks time. These will be followed by other appliances soon. Confirming this, Manoj Kumar, chief, consumer durables and electronics, Pantaloon Retail, said that consumer prices for private label products are expected to be 15-25% lower than comparable products from big name brands. “From the value side we'll try to explode the market at bottom of the pyramid,” he said.
So far the biggest stumbling block to the introduction of private labels in this category has been the absence of a retail chain at the national level, with only a handful of regional chains like Viveks and Vijay Sales operating with limited reach. After-sales service support is an-other critical factor and, to begin with, the company claims to have in place a service network in 25 locations, along with a toll-free number to address service and other customer enquiries.
However, the success of Pantaloon's private label ambitions in durables will hinge mostly on its two-pronged retail strategy. At one end of the spectrum will be the existing Electronic Bazaars, which will continue to cater to the value-driven consumer, and stock a host of regional brands in addition to the popular range from manufacturer brands.
At the premium end, it plans to open larger stores of 10,000 to 20,000 sq ft, within malls and as standalone outlets, under the e zone banner. Each e zone will be Wi-fi enabled and will allow consumers to experience every product before they make a purchase. The first of these is scheduled to open shortly in Indore, and will be followed by 8-10 more such stores in Banaglore, Hyderabad, Delhi and Mumbai, over the next four months.
The products being initially launched include small appliances, kitchen appliances and home theatre systems, which are expected to hit its stores in about two weeks time. These will be followed by other appliances soon. Confirming this, Manoj Kumar, chief, consumer durables and electronics, Pantaloon Retail, said that consumer prices for private label products are expected to be 15-25% lower than comparable products from big name brands. “From the value side we'll try to explode the market at bottom of the pyramid,” he said.
So far the biggest stumbling block to the introduction of private labels in this category has been the absence of a retail chain at the national level, with only a handful of regional chains like Viveks and Vijay Sales operating with limited reach. After-sales service support is an-other critical factor and, to begin with, the company claims to have in place a service network in 25 locations, along with a toll-free number to address service and other customer enquiries.
However, the success of Pantaloon's private label ambitions in durables will hinge mostly on its two-pronged retail strategy. At one end of the spectrum will be the existing Electronic Bazaars, which will continue to cater to the value-driven consumer, and stock a host of regional brands in addition to the popular range from manufacturer brands.
At the premium end, it plans to open larger stores of 10,000 to 20,000 sq ft, within malls and as standalone outlets, under the e zone banner. Each e zone will be Wi-fi enabled and will allow consumers to experience every product before they make a purchase. The first of these is scheduled to open shortly in Indore, and will be followed by 8-10 more such stores in Banaglore, Hyderabad, Delhi and Mumbai, over the next four months.
posted by InCar Group Press Room at 13:08
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