News: Benetton plans to expand in India

(TT 12/06/2006) Calcutta - Benetton India Private Limited is on an expansion spree in India, more than doubling the number of its stores from 32 in 2004 to 80. The company, which started its operations in India in 1987, plans to set up 100 stores by the end of the year.

“We are in no hurry to apply for single brand retail in the country and would prefer to wait and watch the extent of the foreign direct investment relaxation until the end of the year,” said Sanjeev Mohanty, sales and marketing director of Benetton India Pvt Ltd.

Only three foreign brands — Lladro, Louis Vuitton and Moja Shoes Pvt Ltd — have applied for single brand retail till date. Moja has already received the permission, while the other two are having their applications processed. There is no minimum capital investment conditions put on the application process.

The company’s focus is to improve the quality of the retail presence besides expanding visual merchandising, such as point of sale, in-store ambience and shop windows. The employees will also be provided with training. Up to 35 per cent of their salary will be incentives.

The company has three stores in Calcutta, and plans to have 6-7 by the end of 2007. It is scouting for locations in central business district areas of the city. The franchisee outlets are between 1,500 sq ft and 2,000 sq ft.

The eastern region has 13 franchisee outlets and this is expected to go up to more than 20 by 2007.

Benetton has recently launched a loyalty programme in New Delhi and plans to roll it out in Calcutta before the Pujas.

“This programme is value-based instead of being point-based. There are niche programmes for various customer segments including children. The system tracks the purchases the customers make, and then depending on certain levels, extends various kinds of offers and gifts to them,” said Mohanty.

The company has a manufacturing unit in Gurgaon and sources women’s garments through third party manufacturing contracts.

Besides the apparels, the recently launched B06 range of shoes was doing extremely well in the shops, Mohanty said.