Veteran Retailer Asim Dalal Optimistic On Brand Building Prospects In The Indian Market

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Veteran Retailer Asim Dalal Optimistic On Brand Building Prospects In The Indian Market

Asim Dalal of the iconic The Bombay Store fame, has assumed charge as Managing Director to a new venture in home textiles for the domestic market, and launched a brand called Boutique Living under the banner of Indo Count.

Asim Dalal is a graduate of the prestigious Sydenham college. He later studied at the London School of Economics (LSE), and began his career as a banker before focusing on retail. He aired his views on the scope of home textile business in the domestic market to Venkatesh Raghavan, Special Correspondent, Textile Excellence. Asim is currently busy working on his one-year-old baby Indo Count Retail Ventures Pvt. Ltd. Excerpts from the interview are reproduced below.

You have a diverse portfolio from banking to finance to equity to retail and branding. What prompted you to venture into home textiles exclusively for the domestic market in India?

After spending three years as a banker, I chose to expose myself to retail and branding. I explored this area for nearly 23 years, which provided me with the homework and confidence to launch on a new exciting venture in home textiles. Retailing home textiles for the domestic market holds tremendous scope. Just look around you. India’s Prime Minister Narendra Modi has announced an ambitious project, “Housing for all”. With more houses in the fray, there will be increased demand for home textiles.

We are exporting home textiles to over 60+ countries. We strongly felt there is plenty of potential in the domestic market and this has to be tapped at the right time. Besides, our experience in production and brand building will augment the scope of marketing a variety of home textiles.

What are your expansion plans in the current venture you have undertaken?

We are just one year old in the market. We have plans to expand from bed linen to everything that goes on top of a bed including pillows and covers. We are attempting to provide a comfort level that was previously unknown to Indian home textile consumers. In addition, we will also be introducing bath linen. We are aware that there are quite a few players in the field of bath linen. However, we believe that there is enough space for everyone in the market and we will succeed in carving out a niche for ourselves.

While contemplating on expansion, we have to bear in mind that India is not just one country. It’s a combination of 27 countries. We have to understand the diversity of the customer profile we are catering to. Besides, we have plans to cater to the hospitality segment in a big way. To sum up, in the next five years, we may grow from INR 200 crore to INR 300 crore in the home textile segment.

What is your assessment of the home textile segment in India?

The home textile segment is growing at a rapid pace in the country. By the year 2020, we expect the home textile segment to register a business volume of INR 35,000 crore. Of this, bed linen alone would account for a significant INR 17,500 crore. Both the organized sector and the unorganized sector are contributing significantly to the growth and volumes of business in home textiles in the domestic market. The market for bed linen alone is expected to grow to the scale of INR 25,000 crore by the year 2025. This is a story of phenomenal growth and it indicates there is enough space for multiple players in the market.

You have handled finances successfully. What model would you recommend for a successful textile marketing venture?

As a banker the role I had to play was somewhat different, where I learnt cost of money and working capital management. However, in retail, inventory management is the most important aspect that needs attention. You need to manage inventory such that you sell the product at the right time in the market. Secondly, you have to focus on brand building over a period of time that enables you to hold your own against the competition in the long run.

The other factors are quality and pricing. They contribute significantly to brand value. You need a clear vision to implement and execute successfully on all these fronts. First people have to be educated about your product offering and know what it means to them to get a good comfortable sleep. Once people understand this, they will be eager and willing to buy more of our products. At the same time though my market is not restricted to them, I have a lot of expectations from the younger customers who understand good quality and good design and will be willing to spend their money on a quality product.

You have been witness to both Western and Indian markets. How do you think is doing business in India different from doing business in a developed world?

In a developing market like India there is comparatively lower base and the scope of growth is tremendous. Take for example the Patanjali range products. But if you look at the positive side, it has been able to tap a large untapped section of the market and do exceedingly well in a short span of time. That’s the sort of opportunity and comfort India offers to a new entrant.

Unlike in a developed market, pricing will not be the factor that contributes significantly to profits. Here, volumes matter. Higher the volumes you cater to, more the profits in store for you. The potential for volumes in India is tremendous. I am aware currently, the country is going through a transitional phase where there is a new tax regime and it is experiencing the pangs of demonetization. Besides, currently the real estate sector is not so exciting.

However, we are long term players and we don’t take a short term view of the market. The problems the Indian market is facing are all short term.

We are present in 21 states in over 400+ multi-brand outlets. We have achieved this in a span of one year, and we hope to grow our business in times to come.