The post The Gourmet Revolution: How Q-Mart Changed the Way Hyderabad Shops appeared first on Business of Food.

The post Reliance AGM 2026: Inside the Food, Grocery and FMCG Engine Driving India’s Largest Retailer appeared first on Business of Food.

The post Osia Hyper Retail: From Dubai Expansion to Insolvency Proceedings appeared first on Business of Food.

Their strategic expansion into offline retail not only revived local economies but also introduced affordable gourmet products to communities craving quality and flavor. With a meticulous approach to product curation and a commitment to customer satisfaction, Bombay Gourmet Market continues to redefine the gourmet retail experience, one neighborhood at a time.

Not many brands in India have charted a course for major franchise success with affordable gourmet retailing as their compass. But Akshay Kumar and Kurush Dadabhoy, Co-founders, Bombay Gourmet Market, a chain of 18 neighborhood gourmet stores located across 6 cities in west and south India — Mumbai, Pune, Goa, Hyderabad, Rajkot and Vadodara — can be called the poster boys for creating a successful model in the business of grocery franchising and gourmet retailing.  

Before Covid struck in 2020, both Akshay and Kurush were surfing the commercial waves in their respective businesses: Akshay had put down roots as a successful restaurateur in Mumbai, operating Bombay Sultaani Biryani House in Borivali and had spent close to 5-6 years in the industry. Kurush, on the other hand, ran a well-oiled enterprise selling and trading in imported electrical switchgear.

Just as their businesses seemed to be smoothly coasting along, the Covid pandemic came baring its fangs and dealt a sucker punch. Akshay’s restaurant gig grinded to a screeching halt and Kurush saw his enterprise skid off the rails.

Rising above restaurant shutdown by pivoting to online grocery

Tossing a lifeline to someone who falls overboard can throw up surprising, often magical results. As Akshay was moping and brooding about his next course of action, he received a phone call from his Zomato and Swiggy contacts at the restaurant. “They informed me that their platforms were expanding into grocery deliveries and suggested that I list my kitchen’s products. At that time, they were operating on a marketplace model and eagerly encouraged me to showcase items like fresh sauces and ready-to-cook meats. Always open to new opportunities, I agreed to give it a try. The results surpassed my expectations many times over, which prompted me to fully embrace online sales through this channel.”

That’s how Bombay Gourmet Market got off the starting blocks in 2020, within the first few days of the imposition of complete lockdown — as on online food and grocery platform. Akshay re-jigged his restaurant space in double quick time, listed and uploaded the details of products lying in the restaurant’s kitchen with Swiggy and Zomato.

“It was my restaurant where I started, because restaurants were shut during Covid, and I just thought of putting the space to some use. I had an asset, which had to be monetized because the lockdown had made revenue zero for the business I was operating in. So, I had to monetize and do something, which was much needed in those times,” recounts Akshay.

He shares that he had about 15 minutes to think of a brand name for his online grocery business and about another ten minutes to upload items that were there in his existing restaurant kitchen. “And as I started uploading the details of products, orders started flowing in. And, you know, that actually kept us quite sane during the lockdown, if I may use that word.”  

But while the pandemic exacerbated the crisis of sustaining business operations across all industries, it also brought in a perfectly teed up opportunity for online food and grocery retailers. For many affected and pandemic-hit business owners, venturing into food and grocery became the ideal test bed for experimentation and a way to keep their business mast flying.

“During the lockdown, offline sectors across various industries, including retail, faced significant challenges. While supermarkets were able to muddle through thanks to the government notifying it as an essential service, restaurants, clothing stores, salons, and many other retail sectors shut down. This had a widespread adverse impact on the retail industry, with offline operations bearing the sting and hardest hit. However, online food and grocery experienced unprecedented gains and traction during this period,” says Akshay.

Large swathes of customers in cities and towns across India, who preferred in-store visits for their grocery shopping turned overnight into the most devoted proselytizers of online shopping. That Bombay Gourmet Market began grabbing eyeballs and instant orders from the moment it listed is proof of the voracious force  9 gale demand from customers clamoring to place orders and get their online orders fulfilled.

For the newly minted Bombay Gourmet Market, not only did its online orders keep swelling up, it also launched 4 other online stores within the next couple of months to cater to different catchments within Mumbai. “The orders just kept adding up without ebbing for once. Honestly, there was no looking back and we just kept refreshing and shuffling our inventory as we moved from one store to five stores online within months. I had never thought that it would magnify into something as large,” says Akshay.

From online success to offline retail

However, by the middle of 2021, the pandemic was receding further in the rear view mirror. After, what seemed like a long-drawn slumber, shops, markets, cinemas and salons roared back into business with a frenzy. Shoppers, tired of being cooped up during the lockdown, sent the markets into overdrive with their vengeance spending. At the same time, the tear-away growth that online grocery had seen of late seemed to have finally found its ceiling.

Bombay Gourmet Market with its five online stores too saw orders dip into a deep trough. The slowdown was further aggravated by the fact that both Swiggy and Zomato, which had earlier acted as the catalytic fuel for the retailer, had now developed their own grocery delivery infrastructures — Swiggy with Instamart and Zomato through the acquisition of Blinkit. “Our order volumes and visibility decreased as a result, which prompted us to venture into offline operations in 2021 in a bid to diversify and stabilize our business,” confides Akshay.

With Swiggy Instamart and Zomato’s Blinkit focused sharply on growing and expanding their own grocery delivery business, it was Akshay’s restaurant business, now resurrected back to life, which offered the quantum of financial solace. But having tasted success in his entrepreneurial gig as an online neighborhood gourmet retailer, Akshay was intent on creating a successful playbook for launching Bombay Gourmet Market as an offline gourmet retail brand.

But as the saying goes: If wishes were horses, beggars would ride. Launching an offline store in a city where real estate value is stratospheric is easier said than done.  Starting down the road of offline grocery retailing in a city like Mumbai is like entering the meat grinder of entrepreneurship. If you come in here with naïve ideals, you’re going to get chewed up and spat out.

Fortunately, Bombay Gourmet Market’s run and stint as an online gourmet player had racked up enough commercial bounty as well as brand recognition for Akshay to launch a 375 sq.ft. store in Mumbai’s Borivali.

As people in the locality were already familiar with the brand with many of them being Akshay’s restaurant and/or his online gourmet store’s customers, the maiden launch of Bombay Gourmet Market’s first offline store received a positive public response. The store, which is now run as a franchise business, enjoys a fervent following in the community, and has emerged as a trusted destination for food aficionados looking for higher-quality ingredients and products with an elevated flavor profile.

Success breeds more success, and the success of a business demonstrates a fitness for future tokens of success and recognition. Within three to four months of inaugurating its initial store, Bombay Gourmet Market launched its second outlet that same year in 2021. “And then I thought that this is the way forward and we will launch the next store in another three to four months,” says Akshay.

The confidence sprang from a deep-seated belief that he would be able to spin the magic wheels in his newly launched offline gourmet retailing business. But spreading the brand’s wings in Mumbai demanded bucketloads if not an avalanche of capital. It was a difficult needle to thread and required hard thinking and working on a separate track. Akshay had to find a path to navigate through the thickets of challenges ahead without breaking the conventional business guardrails.

Money lies at the heart of any business. And, for startups, it means making trips to the funding well. But Akshay did not wish to jump on that treadmill. It was at this point in time that he began seriously thinking about the franchise model as a more enduring channel for growing the supermarket business. As someone originally hailing from the restaurant industry, Akshay knew many potential investors who were keen on taking up a restaurant franchise.

“During meetings and over meals at my restaurant, many investors used to ask why I don’t franchise my restaurant. My response was that restaurant franchising isn’t simple because it heavily relies on manpower. In the restaurant industry, success hinges on both food quality and service. Personally, I lacked the motivation to franchise the restaurant business.”

Continuing on the same riff, Akshay elaborates: “However, in the aftermath of the pandemic, many people grasped this plane of reality that supermarkets are a safer business to be in. “Many of the franchisees Kurush and I engaged with had originally planned to open independent restaurants. However, our conversations revealed that they had been misled by the food franchise companies they had consulted. We brought some of them around to partner with us and become our supermarket franchisees.”

The Akshay-Kurush partnership

Having made the decision to expand the store network through the franchise route, Akshay and his business partner Kurush, prepared to get down to the brass tacks of the business and kick the enterprise up another gear. Their plans to rope in franchisees for the supermarket business had already found quite a few takers.

Akshay and Kurush first met in early 2021 only to discover that their vocation and avocation were happily one. While Akshay was already directly involved in the food business, running a restaurant and his newly founded supermarket business, Kurush too came with retailing antecedents, although in a different product line. But like Akshay, he too harbored a deep love and interest in the food business, which brought him to meet up with Akshay when he came looking to take up a franchise of Bombay Gourmet Market. The two met and immediately bonded, with Akshay making the offer to Kurush to become a master franchise instead.

“When I first got introduced to Bombay Gourmet Market, my initial intention was to open my own store as a franchisee. However, given my background as a trader, Akshay realized I could provide more value as a master franchisee. I took on the role, in which capacity I focused on managing taxation, accounting, inventory, software maintenance, and creating an operational framework, including generating various reports for our business operations. These are areas where I believed my expertise complemented Akshay’s vision.”

Before long, the intensity and gravity of purpose vibrating off of each other brought them closer still. Realizing that they both shared the same enthusiasm for the business, Akshay asked Kurush to come on board as a co-founder. “We shared a psychological alchemy and instantly knew that both us shared an all consuming passion to grow our gourmet retailing supermarket business,” recounts Akshay.      

“Akshay’s vision and contributions are unlike anything I experienced in my previous industry. The platform he provided me with is now something we offer to our franchisees. This initial support from Akshay is what I value most, and that’s how our partnership began. Since then, we have built a strong business relationship and friendship. It has been truly remarkable collaborating with someone like him,” exudes Kurush.

In fact, the two of them are like Siamese twins because if you separate them, you lose some vital parts of each. Both reinforce each other in a virtuous circle as is evident by how they go about performing their roles and responsibilities. Together, they bring a fresh, ferocious energy to the business and, between them, they get the job done fast like a ninja.

Both Akshay and Kurush have divvied up their roles and responsibilities in the business with almost Euclidean precision. Kurush manages the back-end operations, focusing on maintaining the supply chain and overseeing the terms of trade with brands, particularly regarding the addition and removal of products. He and his team are responsible for ensuring smooth operations in these areas. Their role is critical in maintaining efficient inventory management and fostering productive relationships with suppliers and brand partners.

Akshay oversees the front-end operations of the business, focusing on marketing, operational strategies, and store management. Additionally, both Akshay and Kurush are actively engaged in managing the product assortment. This is crucial for shaping the identity of Bombay Gourmet Market, which is positioned as an experiential gourmet retail store.

Redefining neighborhood gourmet retail

Since launching its first physical store in 2021, Bombay Gourmet Market has successfully established itself as a thriving grocery franchising business. The brand has strategically expanded to 18 stores currently, each contributing significantly to its sustainable growth. The store sizes range from 300 sq.ft. for the smallest to 1800 sq.ft. for the largest, with the median size being approximately 500-600 sq.ft.

Currently, Bombay Gourmet Market has 5 stores operating in Mumbai with the rest located in cities such as Pune, Goa, Hyderabad, Rajkot and Vadodara. The stores cater to a diverse audience spanning from Gen Z to Baby Boomers, offering a wide array of products that appeal to varying tastes and preferences. This includes trendy items like ramen noodles as well as organic staples, grocery essentials, snacks such as healthy namkeens, and specialty items like cold-pressed oils.

Though Bombay Gourmet Market operates 5 stores in Mumbai, the brand has strategically shifted focus to Tier II and Tier III cities. “Mumbai’s high costs make offline retail challenging, with rentals under better control in non-metro areas. Despite this, demand matches that of Mumbai, and cities like Rajkot, Goa, Pune, and Hyderabad offer higher returns on investment. While Mumbai boasts higher disposable incomes, we have observed substantial wealth generation in Tier II cities, which is catalyzing strong demand for gourmet products,” notes Akshay.

He adds that there exists a deep well of untapped demand for gourmet products in non-metro cities. This trend will become more sharply defined because the rising demand for gourmet products in Tier II and Tier III cities isn’t being fully met. “When we introduce our stores in these areas, we consistently witness a positive reaction from the local community. Residents express appreciation, eagerly welcoming the availability of gourmet offerings in their neighborhoods. This response underscores the value and satisfaction our presence brings to these underserved markets.”  

By way of an example, he cites the success of Le 15, a brand known for packaged cookies and owned by pastry chef and businesswoman Pooja Dhingra, at his Rajkot store. “Surprisingly, our Rajkot store stands out as one of the top sellers for these cookies, which shows the untapped market potential in these cities. This success highlights the importance of exploring new markets, as opportunities for growth and tapping consumer interest can often exceed our initial expectations.”

But aren’t gourmet stores perceived to be pricey and a shoo-away for the value seeking Indian consumer? “Due to the pandemic-induced lockdown, there has been a notable rise in home chefs experimenting with gourmet ingredients like mascarpone cheese for dishes such as tiramisu. Before the pandemic, these ingredients might have been unfamiliar to many, but today, there is significant demand in cities like Hyderabad, Goa, and Rajkot. The surge in social media usage has also played a crucial role in spreading awareness about such products and their versatile applications. Also, our approach focuses on offering affordable products that are tried and tested, rather than expensive options. This ensures that our offerings cater to the preferences of our customers, providing them with value for their money,” counters Akshay.

In Bombay Gourmet Market’s retail strategy, products priced over Rs. 1,000 are not part of the inventory, which highlights the retailer’s commitment to affordability and value for money. Even when including imported items, they ensure that pricing remains accessible. For instance, they avoid stocking cheeses priced at, say Rs. 4,000 per block because they know that such items would not find traction even in urban centers like Mumbai, let alone Tier II cities.

Instead, their approach to product assortment is both intuitive and calibrated, and aimed at creating an ambiance that is inviting and superlative. The emphasis is on offering essential items alongside experiential products, and to ensure that customers can easily find what they need while also discovering new and unique offerings. This strategy resonates particularly well in Tier II and Tier III cities, where there is significant demand for a wide range of products.

From essentials to exotics

The market positioning of Bombay Gourmet Market as a neighborhood gourmet retailing store reflects a deliberate strategy to cater to discerning consumers seeking high-quality, curated food products in their local community. This strategic focus and positioning not only differentiates Bombay Gourmet Market in the marketplace from traditional supermarkets or specialty stores but also strengthens its connection with the community it serves.

To their credit, both Akshay and Kurush have crafted an experience where quality and variety meets. “We bring the best curation of products for those who have a finer taste in life. The range covers imported as well as premium, top-notch home-grown products in India. We have ensured that each customer gets what they’re looking for, be it daily essentials or exotic,” avers Akshay.

From the freshest fruits and vegetables to artisanal cheeses and gourmet chocolates, every product is chosen to tickle the taste buds and stimulate the gustatory receptors. A highlight of the Bombay Gourmet Market is its own line of gourmet creations — fresh, preservative-free, and crafted in small batches. Whether its pasta & pizza sauces infused with flavors like mint & Greek or tantalizing dips & chutneys, each offering promises a taste sensation. Seasonal delights like chocolate-coated strawberries add a touch of indulgence to every month.

For those with dietary preferences, Bombay Gourmet Market offers a diverse range of vegan options. From oat milk and yoghurt to vegan cheeses and gluten-free treats, there’s something to delight every conscious food lover. The brand’s commitment to freshness extends to Namkeen snacks made in small batches with less oil, appealing to a wider audience seeking healthier choices. Apart from this, they stock the best of daily essentials like milk, butter, cheese, and freshest of breads.

Nostalgia finds a place too, with beloved classics like Phantom cigarettes and Parle poppins alongside modern favorites such as Korean instant noodles and frozen ready-to-eat meals. Sugar-free chocolates and premium exotic tonic waters cater to those with refined tastes, while the selection of single-origin Indian spices and herbs adds depth and richness to every culinary creation.

As Akshay proudly affirms, “From chocolates to cheese, from grocery to gourmet, our shelves are stocked with the best from European, Asian, and American Pantries. Whether you’re seeking the perfect ingredient for a special recipe or simply exploring new flavors, Bombay Gourmet Market promises an unparalleled shopping experience.”

Strategic product assortment and innovative merchandising

Bombay Gourmet Market stores are meticulously organized into categories like Beverages, Gourmet World Foods, Healthy Munchies, Ready-to-Eat/Cook, and many more, making it effortless to find exactly what you’re looking for. “In a store of our scale, ranging mostly from 300 to 600 square feet and having about 4,000 SKUs, we’ve tailored our inventory to ensure precision and conciseness. When you step inside, you’ll find exactly what you’re looking for,” asserts Akshay. Citing an example, he says that if a shopper comes to the store looking for juices, she will find three to four prominent Indian brands and an equal number of imported juice brands on the shelves.

Should any specific item not be readily available, the stores maintain strong customer relationships to promptly address and fulfill requests. Regular feedback from customers further guides their product selection, with a commitment to finding and offering brands or items that customers ask for and like. This customer-centric approach underscores the retailer’s dedication to meeting diverse consumer demands and fostering a positive shopping experience tailored to individual needs.

 When Akshay and Kurush are questioned about how they source the expansive array of products available at their stores, they maintain that their sourcing strategy is a closely guarded trade secret. As seasoned retailers, they emphasize the importance of careful selection and strategic partnerships in building their inventory. Their approach involves extensive market research and direct engagement with suppliers and distributors. By forging strong relationships within the industry, they gain access to a diverse range of products that cater to various consumer preferences and trends.

“Our foremost challenge revolves around determining the optimal product assortment for each store location. This decision-making process poses significant complexity and is central to our operational concerns,” admits Akshay. Given the diverse array of food categories Bombay Gourmet Market stocks — World foods, Asian and European beverages, vegan, gluten-free, and health-oriented options — optimizing space within a 300 sq.ft. smaller store, and a 600 sq.ft. medium-sized store, and ensuring  effective and prominent display of all products can be a daunting challenge.      

 Akshay and Kurush explain that they have been able to overcome the challenge by listening to and earnestly acting on the feedback received from local distributors. They also get insights from the brands and from an AI-based tool they utilize, which helps them to understand customer consumption patterns based on which they make informed decisions.

Using AI tools, Akshay and Kurush analyze whether the market is predominantly vegetarian or non-vegetarian, and whether it caters primarily to the upper-middle-class demographic. Additionally, they assess the dining habits of the local audience and determine the product mix for their stores based on these insights. Both recognize that there is no universal one-size-fits-all formula to assortment and inventory management.

At the same time, Akshay and Kurush prioritize quality and innovation in their product offerings. They conduct rigorous evaluations, including product trials and quality assessments, to ensure that each item meets their standards before it reaches the shelves. Their commitment to customer satisfaction drives them to continuously seek new and exciting additions to their inventory. This proactive approach not only enriches the shopping experience for their clientele but also positions their stores as hubs of discovery and convenience.

“We tailor assortment and inventory to meet the unique demographic needs of each store. Therefore, each store is approached as a distinct entity from its inception. We are currently developing an automated inventory replenishment system that will replenish inventory based on sales patterns, thus streamlining operations and enhancing efficiency across the board,” informs Kurush. This proactive and innovative approach to merchandising and assortment has enabled Bombay Gourmet Market to develop its unique selling proposition centered on providing a seamless shopping experience where customers easily find what they seek upon entering the store.  

As expert retailers, Akshay and Kurush understand that sourcing is not just about acquiring products but about curating an experience. By maintaining their trade secret and staying agile in their sourcing practices, they aim to consistently deliver a unique and compelling assortment that distinguishes their brand in the competitive retail landscape.

“Initially, Akshay and I handle the assortment for our franchisees. But after one month, two months, three months, the store owners themselves begin giving us feedback. They inform us about customer preferences and local brands they want us to stock. We value this ground-level feedback because it helps us understand diverse demographics and buying patterns across the country,” informs Kurush.

Laying on the theme further, he adds: “Every city has its own conditions and consumption patterns shaped by demographics and cultural factors. Understanding these differences is crucial for tailoring our offerings to meet the specific needs of each community.”

Akshay emphasizes that it is important for retailers to recognize and understand the unique needs of each location. “Products that sell in Goa, like impulse items and party products, may not be suitable for Rajkot, where consumer behavior and preferences differ significantly. It’s counterproductive to go by rigid rules like trying to match inventory in Mumbai with that in Rajkot or Goa. We adapt accordingly and are flexible in our approach to building the assortment across our stores.”

To ensure newness and novelty in the product basket, Akshay and Kurush prioritize supporting independent brands, particularly new and health-conscious ventures seeking entry into the retail sector. “We actively engage with these brands, evaluating their products through trial testing and background checks before incorporating them into our offerings,” says Akshay.

Bombay Gourmet Market adheres to stringent terms when introducing new, health-focused brands. The approach includes rigorous sampling to ensure customers experience and appreciate the product before making a purchase decision. This proactive sampling strategy not only enhances customer engagement but also boosts product uptake and ensures that items are well-received rather than left idle on the shelves.

“Our approach is flexible. We do not enforce rigid criteria that could exclude promising new brands. Instead, we seek partnerships with like-minded brands committed to robust business goals and growth within the retail industry. At the heart of our strategy is delivering a personalized customer experience. Introducing new brands enhances this experience as our loyal customers eagerly anticipate discovering fresh additions to our selection,” explains Kurush.

“When customers visit us, many inquire eagerly about our latest offerings, asking ‘naya kya hai?’ This curiosity drives us to continuously surprise and delight them with innovative products. Whether vegan alternatives, sugar-free options, or baked snacks with a focus on health, our goal is to bring these offerings to tier two and tier three cities, thereby promoting Indian brands and enriching community experiences,” adds Kurush.

A playbook for grocery franchising

Following the initial launch of a few self-owned stores, Akshay and Kurush transitioned completely to a franchise model for Bombay Gourmet Market. Today, all stores are operated and owned by franchisees. “We shifted away from company-owned stores due to the substantial backend operations required to ensure seamless service to our franchisees. This includes maintaining a consistent product assortment and continuously improving overall store operations,” says Akshay.

Aksahy and Kurush concluded that maintaining both company-owned stores and franchise operations would lead to potential biases favoring the company-owned outlets due to higher interest. Therefore, they made a conscious decision to exclusively collaborate with franchisees and focus on alleviating the logistical complexities of franchisees in managing supply chains, optimizing assortments, adding new inventory, negotiating margins, and other operational tasks.

Operating as partners with their franchisees, they ensure mutual respect and autonomy in outlet management. This strategic shift allows them ample resources and focus to foster business growth comfortably. “We will reevaluate the possibility of reintroducing company-owned stores once the business expands to a desired scale,” reveals Akshay.

Explaining their process of franchisee selection, Kurush shares that there are some important boxes to check. “When considering potential franchisees, our foremost criterion is their alignment with our operational ethos. We seek partners who share our passion for products and customer relationships. For us, financial capability comes second: What truly matters is their commitment to running the store hands-on.”

For those interested, the initial investment ranges from 50-60 lakh rupees. This includes transparent costs detailed in a layout plan covering structure, tiling, branding, and more. Franchisees are free to manage construction independently or with their own contractors. Additionally, Akshay and Kurush provide franchisees with a list of specified brands and products but allow flexibility in procurement. A nominal franchise fee is also required, along with stocking costs, totaling around 15 lakh rupees for a typical 400-500 sq.ft. store.

“For us, how much money a potential franchise can bring to the table is secondary. It surely is an important issue to address — but it’s just one piece of the pie,” observes Kurush. The most important consideration for Akshay and Kurush is that franchisees must immerse themselves in daily operations. This involvement ensures that franchisees understand the business dynamics and maintain effective relationships with staff and customers. It’s a prerequisite that safeguards against potential disputes and aligns with Bombay Gourmet Market’s franchisee-owned, franchisee-operated model.

“Ultimately, our ideal investor is someone eager to engage directly in the gourmet product market, treating the franchise as their own business. This approach fosters a cohesive partnership where mutual goals of growth and brand success are prioritized,” says Kurush.

Emphasizing their distinctive franchise model, Akshay and Kurush assert that no one else in the industry operates franchises in the same way. Outlining comprehensive details about operational processes, innovations, challenges, and support mechanisms offered to franchisees, they underscore the intricacies of managing the supply chain and how their proactive efforts ensure seamless operations across all franchise locations.

Kurush and his team impart a week-long crash course to the onboarding franchisee in all operational and retailing aspects. The training is rigorous with a level of detail so precise so as to be almost clinical. Lessons in handling merchandising and assortment, inventory management, customer relationship and personalization are all imparted in a way that they become almost tattooed on the back of the hand of the franchise operator.

“Franchising our business model involves more than just branding. We provide a comprehensive supply chain solution. Coordinating with over 500 distributors for our 4,000 SKUs is a massive undertaking but we ensure seamless stock management for each store. To further simplify and streamline operations, we’re working on, as mentioned earlier, developing an AI-powered system that automatically restocks inventory. This new technology demonstrates our commitment to keeping up with market needs and improving our services,” points out Kurush.

Once the franchisee completes the store setup, Kurush and his team conducts a thorough local market analysis. Utilizing a database of 18,000 items, optimal product assortments tailored to customer demand patterns are curated. Following the finalization of product selections, purchase orders are generated directly through the software and streamlining of procurement is done with suppliers via WhatsApp or email.

Akshay and Kurush have established relationships with national and regional distributors, which facilitate swift order processing. Upon receipt of purchase orders, goods are integrated into the system through detailed purchase entries. The inventory is monitored to address any discrepancies and to ensure that stores are fully stocked within 10-15 days.

“By supporting franchisees through every step, we provide comprehensive training on software operations, inventory management, accounting, and compliance. This hands-on approach guarantees operational excellence across all locations. Occasionally, logistical challenges arise, particularly in remote areas where specific gourmet products may be scarce. To mitigate this, we maintain a small warehouse in our main office in Mumbai, which enables direct fulfillment when local distributors fall short,” says Kurush.

This collaborative approach underpins Bombay Gourmet Market’s successful franchising strategy and how Akshay and Kurush’s commitment towards franchisees extends beyond the initial setup. To address any emerging needs, the duo also conducts regular visits and virtual meetings to reinforce operational standards and retailing excellence.

Integrating ERP technology and online solutions

Bombay Gourmet Market has long relied on its ERP software, specifically Gofrugal, which has been integral to their operations since their inception. Despite occasional challenges with the software, they continuously adapt and optimize its use.

Akash and Kurush emphasize that while the software is crucial, understanding its reports and insights is equally vital. Interpreting sales reports, for instance, allows them to discern trends for popular items such as Coca-Cola, Parle-G biscuits, or Italian tomato sauce. This understanding informs strategic decisions to enhance product offerings and sales strategies.

On a monthly or bi-monthly basis, the two adjust product assortments based on sales trends and consumer behavior. This dynamic approach ensures that inventory levels are consistently optimized to meet customer demand effectively.

Recently, Bombay Gourmet Market announced a strategic partnership with Yango Tech, known for its innovative solutions in global technology. Central to this partnership is Yango Tech’s White-Label Store App, an advanced tool designed to elevate the online grocery shopping experience. Powered by sophisticated machine learning, it delivers personalized recommendations for a streamlined user journey. The App’s pre-built design reduces development time and will enable Bombay Gourmet Market to swiftly integrate advanced online grocery services.

This collaboration aligns seamlessly with Bombay Gourmet Market’s strategy to ramp up its online presence and cater more effectively to customer needs. The focus is on optimizing the online app experience to increase customer engagement and convenience. In addition, the partnership will enable Bombay Gourmet Market to white label a wide array of products, spanning from ready-to-eat to ready-to-cook ranges. By white labeling, the retailer aims to imbue each product category with the hallmark of freshness and small-batch craftsmanship, thereby ensuring that every item meets stringent quality standards.

White labeling will also allow Bombay Gourmet Market to leverage its expertise in sourcing and curating premium ingredients, and crafting them into gourmet offerings. This approach not only ensures consistency in taste and quality but also enables the brand to maintain competitive pricing without compromising on excellence.

Yango Tech’s White-Label Store App will allow Bombay Gourmet Market to roll out live order tracking and dynamic pricing based on real-time demand, besides ensuring competitive prices. The App supports flexible payment options including credit cards, debit cards, and e-wallets for added convenience. The App will also allow Bombay Gourmet Market to highlight its unique brand identity with visually appealing product displays and help the retailer to introduce a transforming online grocery experience that combines technological innovation with the richness of gourmet selections.

The road ahead

After 4 years of grocery retailing operations in both online and offline mode, the time has come for Bombay Gourmet Market to press the gas pedal hard and crank up the top gear. The retailer is already rolling the dice by doubling down on its AI-based app and launching new stores under its franchise network. “We are already into developing AI solutions with the aim to enhance the customer experience and provide instant and intuitive interactions rather than traditional search methods. Our goal is to create a seamless, mood-based interface. As we progress towards this vision, our plan includes expanding our store network and launching our own digital app,” says Akshay.

Over the next three years, Akshay and Kurush plan to grow their franchise store count from the current 18 to maybe another 300 odd stores. “For now, we want to stick to west and south India, where we already have a good brand presence. Once we are, you know, another 35-40 outlets strong, we will then start moving northwards and eastwards as well. We plan expanding to cities like Nashik, Indore and Jaipur but that’s going to be over some time,” reveals Akshay, before signing off.

The post How Bombay Gourmet Market is charting franchise success with affordable gourmet retailing appeared first on Business of Food.

From pioneering innovations in pharmaceutical accessibility to a steadfast commitment to health- conscious offerings, discover how Wellness Forever remains at the vanguard of shaping the contours of health and wellness retail in the contemporary era.

In the world of entrepreneurship, few stories shine as brightly as that of Wellness Forever Medicare Ltd. Established in 2008, its story unfolds as a compelling narrative spun by three professionals in the pharmaceutical industry who started out as colleagues but later became friends and business partners.

During the 1990s and early 2000s, Ashraf Biran, Gulshan Bakhtiani, and Mohan Chavan were pursuing their thriving careers in the pharmaceutical industry. From different corners of the industry in Mumbai, they emerged not just as colleagues, but as kindred spirits bonded by a shared passion for excellence in Health & Wellness Retail.

“All three of us are first-generation entrepreneurs with humble beginnings in life. We each pursued our pharmacy careers independently for several years. Each of us had approximately 20 years of experience in the industry by the time we came together to launch Wellness Forever in 2008,” says Gulshan Bakhtiani, Founder and Director, Wellness Forever.

Each of the three associates brought their own unique expertise to the table. Ashraf was a seasoned pharmacist and pharmacy owner with a keen eye for detail and a passion for healthcare. But he harbored a longstanding vision of creating a space where wellness and care intersected seamlessly. Gulshan was an Area Sales Manager with a knack for strategy and a wealth of experience in navigating the complex terrain of pharmaceutical sales. Completing this triumvirate was Mohan Chavan, a pharma distributor known for his expertise in logistics and distribution.

Amidst the rising tide of organized retailing in the early aughts, Ashraf, Gulshan, and Mohan discerned a glaring gap – a void where traditional pharmacies offered mere remedies for ailments, oblivious to the burgeoning need for holistic wellness. It was to fill this gap that Wellness Forever was born – to offer a guiding path and illuminate the way towards preventive healthcare and general well-being.

“It was evident that traditional pharmacies were confined to a narrow scope and were focused primarily on reactive healthcare rather than holistic wellness. Sensing a shift towards preventive care and overall well-being, we identified the need for a transformation and set out to fill this void,” recounts Ashraf Biran, Founder and Director, Wellness Forever.

Their mission was simple with a clear purpose: Establish a venture to provide individuals with convenient access to high quality healthcare products and supplementary services. “Our vision was to establish a pharmacy that provided customers with round-the-clock accessibility, spacious and inviting store layouts conducive to unhurried exploration, an extensive range of wellness and lifestyle products, a team of skilled and certified pharmacists dedicated to delivering excellence, and a diverse assortment of merchandise tailored to accommodate a wide spectrum of preferences and requirements,” says Mohan Chavan, Founder and Director, Wellness Forever.

Prior to embarking on the realization of their vision, the trio extensively toured various regions worldwide, examining and analyzing diverse formats and store models – from Target to Walgreens, and many more. Yet, it was during a trip to Boots, a health and beauty retailer and pharmacy chain in the United Kingdom, where they experienced a moment of epiphany. Standing amidst the aisles, they collectively realized that this was the retailing model they wanted to introduce in the Indian market.

Gulshan reflects, “When the three of us visited Boots in the UK, we had a moment of realization. We felt like this was what we had always wanted to do and what India truly needed. It was fulfilling to envision offering similar services to our customers. So, Boots in the UK served as our inspiration.”

Armed with determination and enriched by newfound knowledge, they returned to India, prepared to turn their vision into reality. Their blueprint for business was as bold as it was ingenious. Drawing inspiration from global giants like Boots, they imagined a world where pharmacies weren’t merely places to pick up medicine but also centers for providing holistic healthcare and wellness solutions.

The three friends-turned-entrepreneurs also recognized the importance of structuring their business within a corporate framework. This realization prompted them to develop and implement a corporate strategy for their retail venture. “We foresaw India’s sustained growth for the next 50 years. With this foresight, we understood the imperative of corporatization in the retail sector, which became the foundational basis of Wellness Forever,” adds Gulshan.

A Journey of Growth and Expansion

Wellness Forever today operates as a large omni-channel, hyperlocal retail network, serving as a one-stop solution for customers’ wellness needs with most of the stores operating 24×7. About 98% of them are open day and night, which means they’re available to the community at all times, providing service to the people in the areas they serve.

Ashraf informs that their company primarily operates within the State of Maharashtra. “As a company headquartered in Maharashtra, we maintain a strong focus on serving the population within the State.”

But Wellness Forever is also present in the States of Goa, Karnataka and Madhya Pradesh. Overall, the brand has a presence in four States and over 50 cities across the country. Launching its operations from Mumbai’s Parel, the enterprise has grown into a sprawling network of 407 stores across the nation.

Of the total number of Wellness Forever stores, 70 are franchise-owned, franchise-operated and about 337 are company owned and company-operated. A characteristic feature of the retailer is how it distinguishes itself through proactive engagement with its franchise stores.

The brand is deeply committed to empowering independent entrepreneurs to own and manage Wellness Forever outlets, leveraging its data-driven and technology-enabled systems. Through this partnership, franchise owners benefit from procurement advantages, market intelligence, robust branding, and scalable marketing initiatives provided by Wellness Forever. While the entrepreneur operates the store, Wellness Forever retains ownership of the consumer-facing brand.

Within the company-operated establishments, 23 locations serve as hospital pharmacies, strategically situated within some of India’s top-tier hospitals. These outlets represent a highly specialized format wherein Wellness Forever collaborates with prominent hospitals nationwide to exclusively operate pharmacies within their premises.

A standard Wellness Forever store spans 800 square feet of space, with approximately 300 square feet allocated for pharmaceutical products and the remaining 500 square feet designated for a self-browsing section. Here, customers can conveniently browse and select from a variety of everyday essentials to fulfill their day-to-day needs.

Commencing from its initial 800 square feet outlet, the enterprise has since expanded its retail presence significantly, now commanding an impressive total footprint of approximately 320,000 square feet.

The retailer takes pride in its workforce, which comprises over 5,300 individuals, with nearly one-third being female employees. “Approximately 30% of our workforce consists of women, with several being managed by women and a few being operated by a women-only team, fondly known as our ‘Women of Wellness’ stores. By empowering women to lead and manage their own business units, we are demonstrating our commitment to nurturing confidence within the community and making a positive contribution to society,” says Gulshan.

The brand adheres to an asset-light model wherein all its self-operated stores are leased as part of a strategic decision to optimize resources and adapt to market changes efficiently. This approach demonstrates the company’s financial savvy and commitment to customer satisfaction, allowing it to focus on enhancing products, services, and customer relationships while minimizing upfront costs and risks associated with property ownership.

Accessible & Authentic Medicines a Top Priority

Currently, about 45% of Wellness Forever’s business comes from non-pharmaceutical products, while the remaining 55% comes from pharmaceuticals. This distribution reflects the company’s current operational focus and revenue breakdown.

With medicine serving as the bedrock of the business, pharmaceutical availability and having medicines in stock more than other retail offerings sold in their stores is a top priority for the brand.

Given the importance it places on customer service, the company has a specialized division known as the “Custodian of Availability.” This dedicated team ensures that if a specific medication is unavailable, it is promptly sourced and made accessible to the customer within 48 hours.

Gulshan recalls a recent incident where the “Custodian of Availability” team was helpful in getting a customer the medicines required. “A patient accompanied by his pregnant wife needed an injection to be carried for their travel to Amsterdam as a precautionary measure. Given the length of the journey and temperature sensitive nature of this injection, the injection was properly packed in an insulated box. The couple were also given detailed instructions on handling and care for the injection whilst travelling, including guiding the crew on storing it effectively on the aircraft. A small gesture that showcases how we care for our customer’s needs.”

What’s also really cool about the company is how they use technology to streamline operations. The organization leverages cutting-edge technologies to enhance operational efficiency. Key platforms include central planogramming software, a technologically advanced warehouse operating as a Zero Error Distribution Center (ZEDC), seamlessly integrated Point-of-Sale (POS) systems, feature-rich Enterprise Resource Planning (ERP) software, and an agile Order Management System (OMS) facilitating omnichannel commerce. These tools enable the company to maintain optimal inventory levels in their stores and ensure customers receive timely access to the products they require.

Data too plays a crucial role in shaping and curating Wellness Forever’s product offerings, ensuring their relevance to customers. The merchandising team is proactive and vigilant, constantly on the lookout for new products that align with customer needs and preferences. This hands-on approach enables Wellness Forever to maintain specialization in both its pharmaceutical and non-pharmaceutical businesses.

Offering Healthier Choices in Food

In the world of business, profit margins are like the heartbeat of a company’s financial health. They tell us how much of the revenue a business keeps after covering its costs. Regarding Wellness Forever’s revenue breakdown between pharmaceutical and non- pharmaceutical sectors, Gulshan explains that the current ratio stands at about 55% generated from pharmaceutical sales and remaining 45% from non-pharmaceutical products.

The non-pharmaceutical selection at Wellness Forever stores features categories like eldery, mother & baby care, clean beauty, derma products, hair care, sexual wellness, deodorants, nutraceuticals and packaged food & beverages.

In discussing its packaged food business, Ashraf says that Wellness Forever has always maintained a deliberate focus on offering items such as healthy snacks and nutritious foods even since its inception, but not traditional grocery items.

“We want to redefine pharmacies to wellness destinations where one comes to build more preventive habits rather than only find a cure, with a focus on health & wellness product selections for our customers to discover across our store network.”

In 2020, amidst the onset of the Covid-19 pandemic, while many businesses were compelled to suspend operations, Wellness Forever’s stores were granted permission to continue operations as essential services. During this period, the retailer witnessed a surge in foot traffic as individuals sought out their daily essentials from its outlets.

“We noticed a significant increase in demand for categories like ready-to-cook, ready-to- eat, health supplements, popcorn, ice creams, snacks, beverages, nutraceuticals and many more,” admits Ashraf, adding that it made them recognize the benefits of expanding the selection of food and beverage products in its stores.

“Our merchandising and internal teams spotted trends of consistent demand in these categories across our network, which helped us cater to our customers’ preferences effectively” says Ashraf while mentioning that the pandemic proved to be the trigger for augmenting the assortment of food and beverage offerings within their retail outlets.

As a consequence, Wellness Forever underwent a transformation across its product assortment, with a focus on bringing more interesting selections for its customers across the network. Today, its product range includes diverse categories such as Breakfast Cereals, Health Food & Drinks, Ready-to-cook & Ready-to-eat products, Snacks, Beverages and many more in the packaged foods categories. It has also expanded its non-food selections in categories like mother & baby care, hair care, derma products, sexual wellness, deos & fragrances, bath & body, grooming, personal & intimate hygiene and similar specialty categories.

While the brand has expanded its food portfolio to include various categories, its commitment to health and wellness remains steadfast. “When we refer to food, we specifically emphasize healthy eating. Our focus is on promoting wellness, and not on offering staples like sugar, wheat, rice, or flour,” says Ashraf. For instance, instead of finding sugar at Wellness Forever stores, you will find healthier alternatives such as powdered jaggery. Similarly, you will find biscuits with enhanced nutritional content, oats, and energy bars across its store network. The focus is on prioritizing wellness over conventional packaged foods.

Gulshan reflects on the evolution of consumer preferences and notes that what was once considered a niche category — such as healthy chocolate, biscuits, or snacks — has now become deeply entrenched in mainstream consciousness, particularly following the pandemic. He says that the aspirational middle class has grown significantly, eroding the divide between niche and mainstream products.

He explains that the shift towards health-conscious choices is evident in customer browsing habits and basket composition. Even traditionally hygiene products like Dettol are now sought with value-added health benefits, such as those containing aloevera. “This trend serves as validation of our belief that catering to health-conscious consumers is increasingly important in today’s market.”

“It’s evident that our consumption of wellness products has increased significantly, reflecting a heightened awareness and understanding of wellness. People are now more inclined to undergo medical checkups, research healthy eating habits online, and monitor their macronutrient intake. This increased accessibility to knowledge, coupled with the availability of wellness products, has fueled the growing demand for such items,” explains Ashraf.

He observes that mindful eating and living have become ingrained in society, transcending social class barriers. Regardless of income level, people are increasingly opting for healthier choices such as vitamin C supplements or dark chocolate. This shift underscores a broader societal movement towards prioritizing health and wellness.

Reflecting on this trend, Gulshan highlights Wellness Forever’s commitment to socially relevant foods through practices like farm-to-field approaches, including the production of bean-to-bar chocolates. The aim is to shift customer perceptions towards trusting the store’s selection based on its reputation for quality, similar to how renowned global stores are trusted for the products they carry.

He mentions the growing interest from customers in these products during their store visits. “We prioritize socially relevant, locally preferred and health forward products in our merchandising strategy. We choose to partner with brands and companies that produce genuine quality products and are customer favorites.”

Looking at the growing demand for healthy products across the country, primarily fueled by aspiration, Wellness Forever ensures that within each store, there’s a subtle encouragement to make healthier choices. For instance, its stores highlight options like protein powder and protein bars, which is a way to nudge customers towards selecting healthier alternatives over unhealthy ones.

With approximately 45% of its sales currently coming  from the non-pharmaceutical section, which includes food, Wellness Forever anticipates this ratio to shift significantly in the future. “Looking ahead, we anticipate that the wellness category will continue to expand, possibly reaching 65% or even 70% of the market share within the next three to four years. However, this transformation will unfold gradually, influenced by various factors,” states Ashraf.

Best Sellers in Healthy Food

Gulshan discusses various examples of companies and products that exemplify the shift towards healthier lifestyles. He mentions brands like Health Aid, Fast & Up, The GoodBug, Centrum, The Whole Truth, MuscleBlaze and Yoga Bar, which offer nutritious food options. He also mentions Kapiva, which has disrupted traditional markets with ayurvedic products.

This shift towards healthier alternatives represents a significant behavioral change among consumers. Additionally, he highlights clean beauty brands like MamaEarth, Plum and derma brands like CeraVe, Novology, Derma Co. and Cetaphil as examples of companies promoting wellness in skincare.

Through its diverse range of health-conscious offerings and subtle nudges towards healthier choices, Wellness Forever is actively contributing to the creation of a healthier community. It has started referring to its fast-moving consumer goods as ‘fast-moving health goods,’ in an attempt to subtly encourage people to prioritize health products over medicines. “While we don’t claim to be instigating a social change, we’re at least facilitating it from a supply-side perspective,” avers Ashraf.

He offers an example of how Wellness Forever is contributing towards healthier living and well-being by addressing supply-side dynamics. “We have positioned our business as a facilitator of positive change. Through our operations, we are enabling access to products and services that can potentially impact societal well-being. We have extended our product lines to include offerings that cater to the evolving preferences of consumers towards healthier options.”

Ashraf points out that not long ago, products like dark chocolate were unfamiliar to most consumers. “Until even three to four years ago, dark chocolate consumption was minimal compared to the present. However, there is now a significant increase in the consumption of dark chocolates, ranging from 60% to 85% cocoa content.”

He says that even traditional companies like Cadbury and Amul have discerned the escalating consumer interest in wellness-oriented goods, exemplified by their introduction of products such as Bournville and Amul Single Origin dark chocolates, respectively. “In alignment with these evolving market dynamics, our product offerings aptly mirror the burgeoning trends within the Health & Wellness industry.”

Consumers Spends on H&W Products

Ashraf says that the global wellness category has witnessed remarkable expansion, with its market size soaring to approximately $5 trillion post-Covid. By 2025, India is expected to contribute around 3-4 percent to this thriving market. In fact, according to Numr Research – an Indian market research firm – India’s 443 million millennials spend an average of INR 4,000 per month on health and wellness services and products.

The younger generation, typically aged 20 to 30 years, often frequents the stores for socializing and partying, where they might purchase snacks or chocolates, indicating a different lifestyle need compared to older age groups. Additionally, there’s a notable segment of female customers who purchase personal hygiene products, along with items for mothers and babies, forming another significant category of clientele at Wellness Forever.

Reflecting on how consumers respond to the higher prices of health and wellness products compared to conventional ones, Gulshan says that consumers who invest in wellness products typically share common characteristics. They prioritize health, have disposable income, and often belong to a younger generation that values experiences and creativity over traditional notions of wealth. Brands recognize this shift and aim to offer premium experiences rather than simply selling products.

Emphasizing that people not only consume products but also lifestyles, he illustrates this by explaining that when choosing a shampoo, for example, buyers at his stores consider not just its qualities but also its packaging and how it aligns with their lifestyle. “They are naturally drawn to products that resonate with their lifestyle preferences, even if they come at a higher price.”

He compares this phenomenon to shopping for clothing, noting that someone may prefer a more expensive shirt from a prestigious brand like Arrow over a cheaper one from a different store, even if the actual difference in quality is minimal. This preference is driven by the desire to align with a certain lifestyle associated with the brand.

Ashraf explains that when it comes to purchases related to personal health and well-being, individuals don’t mind spending more money. For instance, they may opt for a shampoo that promises better hair shine and bounce, even if it comes with a higher price tag of INR 600. He notes that people are willing to expand their budgets for products like hair and face creams that offer significant benefits to their skin or hair. “When it comes to personal appearance and lifestyle enhancement, individuals are inclined to invest more in the wellness category.”

The Road Ahead

At present, Wellness Forever is directing its attention exclusively to the four states in which it operates. This strategic choice stems from the belief that pharmacies and wellness stores designed to cater to customers’ needs are not bound by geographical constraints; rather, they exist as sources of convenience accessible to all.

“We have made a conscious decision to expand in areas adjacent to our current locations. This approach facilitates easier management of supply chains, training, and monitoring. Therefore, aside from strategically planned opportunities, we intend to grow exclusively within these four states for the foreseeable future,” states Gulshan.

In terms of funding and investment support, Wellness Forever is backed by a formidable consortium comprising high net-worth individuals (HNIs) and influential family offices. Among its notable backers are luminaries such as Adaar Poonawalla, renowned for his visionary leadership of Serum Institute of India, Rajiv Dadlani, recognized for his astute investments and entrepreneurial acumen, and the Thakral family hailing from Singapore, known for their strategic business ventures spanning diverse industries.

Furthermore, the consortium boasts the patronage of the Allana Group, a prominent conglomerate with a rich legacy in the Middle East. This alliance not only signifies a deep-pocketed financial backing but also underscores a shared vision for fostering growth and innovation in the healthcare and wellness sector.

Apart from the backing of powerful investors, Wellness Forever recognizes the indispensable role of entrepreneurs in driving business growth. The retailer has now embarked on the next phase of its journey and business growth: Taking its store count from 400 to 1,000. To achieve its goal, it aims to build on its franchise network through its Entrepreneurial Development Program (EDP).

“We firmly believe that local entrepreneurs possess a profound understanding of their communities, which enables them to deliver exceptional customer service. By nurturing entrepreneurship and empowering first-generation entrepreneurs, we seek to enrich the business landscape while fulfilling our social responsibility in a sustainable manner,” says Gulshan.

Expressing further support for the franchise model, particularly in India, Gulshan argues that instead of assuming that the market will be dominated either by small independent businesses (mom and pop) or by large corporations, there should be a more inclusive approach. He advocates for a hybrid model that combines the strengths of both franchising and independent ownership.

He also mentions the brand’s approach to optimizing various aspects related to Fast Moving Consumer Goods. The brand will focus on employing more innovative strategies in planogramming, ensuring the right setup, and maximizing visibility for its health and wellness products. In essence, Wellness Forever will sharpen its focus on streamlining FMCG operations to enhance efficiency and effectiveness.

As part of its FMCG action plan, the 24-hour retailer has been phasing out less healthy options and replacing them with healthier alternatives. “This transition will take time and it emphasizes our commitment to the journey towards offering a morehealth-conscious selection to our customers,” says Ashraf.

Discussing the future of the Health & Wellness format, Ashraf highlights its potential as a model where pharmaceuticals are integrated with the wellness segment. He believes it’s a promising journey where wellness will increasingly intertwine with pharmaceuticals. Over time, he and his two business partners foresee that this integrated model will prove to be one of the best approaches for the future. “Overall, the trajectory towards a stronger wellness category is clear and it signals promising growth opportunities across the sector.”

As the Health & Wellness category continues to expand and evolve, Wellness Forever continues reshaping the benchmarks of pharmacy and lifestyle retail through its expanding footprint and reputation for exemplary service and quality. In the records of business, the story of Wellness Forever will stand as proof of how shared dreams can transform into an inspiring reality through friendship, vision, and a commitment to excellence. Even as the journey of Wellness Forever progresses, Ashraf, Gulshan, and Mohan have already stamped a legacy that will last for generations.

The post Wellness Forever: India’s Third-Largest Pharmacy Chain with a Food Retail Twist appeared first on Business of Food.

Daymart currently operates 20 supermarkets and hypermarkets across 4 districts in north Kerala’s  Malabar region, and has chalked out an ambitious blueprint to grow its footprint to 50 stores and cross Rs 500 crore in annual revenue by 2030.

The Malabar region of north Kerala’s Kozhikode (Calicut) district stretches out before the eye like a picture-perfect, postcard-pretty expanse of lush green landscape. But what stands out is the sense of nature’s pristine beauty and the living world wrapped together in a warm embrace. Cute and bijou places — Kuttiady, Vadakara, Villiapalli, Nadakkavu, Wayanad, Kannur, Karaparamba, Chaembara, Kakkattil, Chakkarakkal, Karanthoor… lie amidst a checkerboard of green farms and rolling orchards. Many of these places like Kuttiady are picturesque villages with a small human footprint – just about 20,000 residents. But for its sparse demographics, it has much more supermarkets that could give envy  to retailers anywhere in the country.

Kuttiady today boasts of six operational and running food and grocery supermarkets — Big Market Hyper, Daymart, Happyday Supermarket, and three more, ranging from 2,500-10,000 sq.ft. in size. The first of the lot to come up was Daymart, which debuted in 2009 and has since grown to become the largest Food & Grocery retailer in north Kerala with 20 stores as of date, spanning some 1,25,000 sq.ft. in retailing area. The store chain is promoted and managed by Muhammad Ali C, Group Chairman and Mustafa Vazhat, Managing Director. Both Ali and Mustafa come from a family with strong roots in business. “Ali’s and my family have been in the wholesale business for almost 60 years now and it became the stepping stone for us to enter the retail business,” says Mustafa, adding that Daymart has direct and indirect links to five wholesale businesses, including those in fresh fruits & vegetables, staples, and household essentials.

The family also has close ties with relatives living in the Middle East. “For as long as I can remember, people in my village have been going to countries in the Middle East and I have been hearing tales of glitzy supermarkets and gleaming shopping centres since my childhood days, and that never failed to tickle my fancy,” reminisces Mustafa.

Back at his village in Kerala, breezy accounts of the supermarkets in the Middle East seemed like an unreachable empyrean. But somewhere, subliminally, those supermarkets left a deep impression on Mustafa. So, in 2008, when he made his first trip to the Middle East, he was more than inquisitive to see for himself the trends that were shaping the contours of modern retail. Before long, the mall-and-supermarket utopia of the Middle East seemed to have captured his imagination. Those young-age influences and experiences worked their way from the skin to the bone… and then to the heart.

“Upon returning to my village in Kuttiady, I went into dithyrambs over the details of the supermarkets I had seen in the Middle East when describing them to my friends in the village. To me, those supermarkets were like eidolons, sublime archetypes and daedal structures that represented the evolution of urban progress and development. So strong was the imprint on my mind that I began dreaming of building similar supermarkets in my neck of the woods,” recalls Mustafa.

However, when Mustafa spoke his mind out in the family, he ran up against a wall of disagreement and differences. He was dissuaded from pursuing the idea and join the family wholesale business instead. “I was a little surprised to find so many members in the family who were not too enthused about my hope-filled business plan. Their apprehension was mainly on the account that grocery retail is a slim-profit game with too many attendant risks along the way,” shares Mustafa.

But refusing to be disheartened, he shared his plan with friends and others in the village, with whom it struck an instant chord. “Many of us in the village have familial connections with the Middle East and an easy familiarity with the supermarkets in those countries. For them, I became a lightning rod for an idea they all bought into and encouraged me to go ahead with my plan for opening a supermarket in our own backyard,” recounts Mustafa, adding that the endorsement came as the final thumb on the scale.

So, even as Mustafa decided to cross the bridge and take the plunge, it was with the full weight of the knowledge of the business risks involved. “But egged on by the tonic of youthful hope and passion, I decided to pursue my dreams without any second thoughts,” confides Mustafa.

A retail journey begins in a rural Kerala Daymart opened its first store – a 3,000 sq.ft. supermarket in Mustafa’s village Kuttiady, located at a distance of about 50 km from Kozhikode. While the store itself created quite an impression in the region and among the residents with its modern sleek looks, novel format and amenities, it did not rise to Mustafa’s hopes of becoming a commercial success and a business sensation overnight.

“Honestly, for the first 2 years, the business was almost treading water and we were struggling to survive. For a store of its size, and the Rs. 60 lakh initial investment that I had poured into it, the daily sales was not more than Rs. 20,000-30,000 and the cash register refused to ring louder. But gradually, after about a year and a half, the tide began turning, customer traffic started to swell and our revenue turnstile started buzzing,” says Mustafa.

By the close of its second year of operations, the store was finally able to break even and revenue climbed into black. “What helped to bring about this change was that more numbers of people bought into our new, modern shopping self-service format that also offered attractive discounts and schemes to the shoppers. Supermarket shopping, until then, was an elitist trend with only premium and affluent customers visiting those stores. The masses, by and large, were accustomed to buying from their neighborhood grocery store and did not think twice before paying MRP of the product, a practice followed by most Kiranas then,” observes Mustafa.

A regional store-chain comes into its own

When word spread that the Daymart store sold almost all products below the MRP, people started coming in to check for themselves and when they left assured they spoke to others about it in their own community. But it took almost two years before the trickle of customers to Daymart turned into a torrent, and now more than 10 years later that torrent has become a cascade. The store which barely scraped through with Rs. 20,000-30,000 in daily sales during its early phase now mints an average of Rs. 2.5 lakh per day.

In 2011, Daymart opened its 2nd store in Vadakara, also in Kozikhode district, about 25 km away from its 1st store. This second store, 2,500 sq.ft. in size, proved to be a cash cow from Day One itself. “Our first store, despite its initial slow takeoff, provided the tailwind for growth in the form of a fund of goodwill for its younger sibling. The public awareness and goodwill generated by the first store rubbed off instantly on the second store whose financial performance lifted off like helium from day dot itself, coming in at an average of Rs. 2 lakh daily,” reveals Mustafa, adding that sales were buoyant and customers flocked to the store in droves from the inaugural day onwards. The instant success of Daymart’s second store set up the road map for frisky store expansion in the days to come. Within a year of its second store opening, Daymart launched its 3rd store in Villiappally, also in Kozikhode district in the Malabar region of Kerala.

Since 2012 onwards, the retailer has been spreading its wings, in right earnest. In the years to follow, Daymart began launching its new branches, opening stores at regular intervals in places like Nadakkavu, Orkatteri, Kunnamangalam, Mattannur, Karaparamba, Naduvannur, Chakkarakkal, Sulthan Bathery, Mananthavadi, Pattambi, Balussery, Karanthur, Chembra, Kakkattil, and Thottilpalam.

“With the network of stores that we operate today, we have come to enjoy a lot of purchasing power and clout, which helps the business to tick along profitably and keep scaling further up. In my opinion, the only way to succeed in the modern trade grocery retail business is to increase the number of outlets and, by default, increase your purchasing power vis-a-vis the suppliers,” avers Group Chairman Muhammad Ali.

Keeping this principle as its business baseline, Daymart has kept expanding its retail venture since opening its first store, back in 2009. Today, Daymart operates 20 stores in north Kerala, spanning some 1,25,000 sq.ft. of retailing area with store size ranging from 2,000-20,000 sq.ft. Apart from Kerala, Daymart has also opened one of its branches in the Sultanate of Oman.

The smaller stores – those in the 2000-4000 sq.ft. range – belong to the convenience store format, the ones between 4,000 sq.ft. and 6,000 sq.ft. fall under the supermarket category, and those in the range of 6,000-15,000 sq.ft. belong to the mini-hypermarket category, while store above 15,000 sq.ft are run as hypermarkets.

“Today, by dint of our store network strength, we enjoy more bargaining and leveraging power with the companies that supply products to us. That translates into getting additional discounts on the products supplied to our stores. It also allows us to go for more display schemes across our merchandise range, and put out more offers for our customers compared to stand-alone outlets and our competitors with lesser stores,” remarks Ali.

Building the supply chain and other facets of business

Explaining the method and modus operandi of store expansion, Mustafa says that the focus has been to go in for a cluster-based approach to expansion, concentrating on a 20-30 km radius of Kozhikode. “Daymart has been able to put together a reliable supply chain in place in the region, despite the challenges, which is a critical component in the grocery business. All the 20 Daymart stores are located within 15-20 km distance of each other, and the strategy is to keep expanding along the same spatial pattern.”

Reflecting on the quality and standards of supply chain infrastructure in the Malabar region of north Kerala where Daymart stores are located, Mustafa says that the running time of vehicle from the warehouse to the store is very high. “Moving our products from the warehouse in Kozhikode to our store in Kuttiady, which is a distance of 50 km, takes a little above 2.5 hours because the roads are dilapidated and decrepit. That’s in sharp contrast to the road conditions in the Middle East where it would take about just 20-30 minutes to cover the same distance. Due to the bad state of roads, traffic jams are a perpetual feature and we cannot move our products from the warehouse to our stores on a daily basis. As a result, we have to package our staples and grocery products inside our own stores, instead of packaging them at our warehouse in Kozhikode. Every store that we operate now has its own packaging unit, to get around the problem,” notes Mustafa.

A crucial component of Daymart’s consumer-facing retail business is its back-end wholesale business, which gives the retailer more purchasing power and bargaining clout vis-a-vis its suppliers as well as greater procurement power for buying products such as fresh fruits and vegetables, staples, and household merchandise.

“We have 5 wholesale businesses, which includes fresh fruits & vegetables and rice. Our combination of retail and wholesale purchasing power enables us to procure goods at more discounted prices than the other retailers, which allows us to pass on this advantage in the form of bigger discounts to our customers. Also, thanks to our wholesale business, we have a direct connect with farmers from whom we procure farm-fresh fruits and vegetables, which ensures that we offer only the best quality of these products to our customers in the stores and also export them to other countries abroad. As all our wholesale business are one way or the other connected with our retail business, this dynamic helps to make our retail supply chain better and more efficient, obviating the need for dealing with middlemen and intermediaries in most cases,” says Mustafa.

Private labels become the growth driver. Thanks to its flourishing wholesale business, Daymart has been able to cobble together an enviable private label portfolio of its own, spanning across categories like cereals, staples, masalas, pulses, pickles, household essentials like detergents, etc. Daymart started on its private label business in earnest only two years ago but the retailer is already on its way to expanding its portfolio further by introducing other products in categories.

“Private label has innovated and is speaking to consumers’ desires for freshness, health and wellness needs, culinary values, and expectations for transparency and sustainability,” notes Ali, adding that Daymart’s private-label brands often perform better than national brands because they have contemporized to offer consumers natural and organic offerings in trend-forward formats and flavors.

“Private brands enjoy more flexibility than manufacturer brands and can more easily pivot to meet changing consumer demands. In many instances across categories, they have also been able to jump ahead of traditional brands in critical areas such as ingredients, packaging, flavors and preparations,” says Ali.

“In each of the categories where we have our private label products, they have come to dominate the category in just about two years after being introduced in our stores. And even though, their overall share to the total sales pie is still fairly small, they are growing at a fast clip and will start making a significant sales contribution in another 2-3 years.

You will be surprised that the sales of our in-store detergent is higher across all our stores than that of the market leader HUL…and that’s because customers have immense faith and trust in all our private label products, even if some of them like our private lablel atta is actually priced higher than national and other regional brands,” says Mustafa.

“When it comes to Daymart private label products, the focus is absolutely on ensuring that it is a better quality product than the other brands in the category, and not on ensuring that it gives us better margins…under no circumstance can we allow the dilution of the Daymart brand because going by the consumer response they have received so far, it may be not long before some of these brands are launched in the open market and that’s the vista where they can scale up further regionally and even nationally,” adds Ali.

At the moment, Daymart is manufacturing only some of its private label products like masalas but it ensures that the other products are manufactured at the same places from where they are being sourced and from where other premium brands get them manufactured from. “But once we have more stores and once our customer base reaches an inflection point, we plan to take to manufacturing these products on our own,” says Ali.

Standing up to competition “In our north Kerala’s Malabar region, the grocery supermarket business today has almost become a contagion, touching off an epidemic of new supermarkets multiplying almost like toads in the north-east monsoon,” observes Mustafa.

Due to the very conspicuous influence of the Middle East in this region with almost everyone riding on the coattails of the financial payoffs from those countries and with everyone’s apron strings tied to one or more of the Gulf countries, the supermarket culture in Kerala has now become more pervasive and even promiscuous than that of its progenitor itself.

“Anyone and everyone with some stash of money has either opened a supermarket or is thinking of opening one…it has reached a point where competition has become cutthroat leading to several cases of business hemorrhaging,” notes Mustafa

Realizing that it can be challenging to thrive in a market that’s now become over-the-top saturated, Daymart is not taking any chances and is looking out for new virgin markets in Kerala and neighboring States. At the same time, Mustafa asserts that it’s not going to be Daymart but its upstart competitors that will most likely fall by the wayside when the market’s competitive push turns into no-holds barred shove. The retailer says that it has found a way to elbow its path into consumers’ heart-through attractive offers and discounts, customer service and relationship, and quality products with an enviable breadth – and it is engaged in constantly finessing this recipe with the zeal of a proselytizer.

“Other supermarkets in the region may also be offering good discounts but there’s a big difference between us and them. We can afford to offer big discounts by virtue of our scale and on the strength of our wholesale business, which gives us enough elbow room to squeeze concessions from the suppliers before we pass them on to our customers. But that’s not the case with other supermarkets, who are giving away discounts just for the heck of remaining competitive in the business, and not because they can afford to. How long they can keep doing that is anybody’s guess and the end might come sooner than expected,” says Mustafa.

He muses that, in the case of Kerala’s supermarket and retail industry, it could well be the case of too many cooks spoiling the market broth. “Daymart has itself acquired 4 supermarkets in the region in the past two years alone as those stores had run to the end of their financial tether and had to throw in the lifebuoys to be rescued from going under. The grapevine in our region is that if you can no longer run your supermarket, call Daymart to acquire you,” says Mustafa with a chuckle, adding there could be more instances in the future where Daymart would be called upon to pull some more supermarket’s chestnuts out of the fire.

“New entrants have opened supermarkets enamored by its prospects that are colored by the Covid experience, but the underlying fundamentals and dynamics of this business remain extremely fluid and inchoate for these new entrants to grasp fully. On the other hand, we treat our supermarket business as a 200% customer relationship business and not just as a business enterprise. That probably explains why about 60-70% of our total customers are our loyal customers who are regular and repeat shoppers at our stores.  All our stores have a person dedicated solely to take care of building a relationship with the customers and make them our valuable partners. Whenever, there is some special scheme or offer running at our stores, the communication is relayed to all our loyal customers and even personal calls are made to maintain that emotional connect with the customers,” explains Ali.

Apart from going out on a limb to turn customers at its stores into partners, Daymart has a strategy of empowering and rewarding its employees into becoming its store partners as well. Employees are selected on a regular basis based on their commitment and performance and are put in charge of its different stores on a rotational basis, which helps to keep their motivation level high and spurs them to engage more meaningfully and constructively with the customers.

“Our loyal customers and our loyal employees, about 700 on the payroll, are the biggest strengths of Daymart, and it is our constant effort to keep building this team to serve as our brand’s ambassadors,” says Mustafa. Daymart employs about 20-25 employees for each of its smaller stores less than 10,000 sq.ft. and 30-45 staff for stores bigger than 10,000 sq.ft. The remaining employees are staffed with the company’s wholesale and back-end businesses.

The unwavering focus on quality is another loyalty driver for Daymart customers. The stores are preferred by customers for the impeccable quality and freshness of its fruits and vegetables and also the range, variety and quality of its pulses. “People in the places where our stores are located have quickly glommed on to these superlative qualitative product features that they are assured to find every time they visit a Daymart store, and it has helped to build and enrich our brand DNA,” says Mustafa.

Talking of the product mix, Mustafa says that staples and fresh produce are the best-selling categories at Daymart stores, followed by household essentials and non-food products like stationery and cosmetics. “About 40% of our overall sales are accounted for by staples and fresh produce and the food category as a whole has a share of about 60% of the total sales pie,” informs Mustafa, adding that a majority of the purchases at Daymart stores is done my customers in the upper middle, middle, and lower-middle income bracket.

“Our stores don’t boast of high-value premium infrastructure and the ambience, store design and interiors, product basket and pricing are designed keeping in mind our major audience base, which is middle-brow and not premium,” says Ali. Although the stores attract well-heeled and upper middle class customers as well, Daymart’s key customer base is skewed towards the middle class and lower middle class customers, who come to the stores looking for great discounts and ultra-competitive prices and that also explains the retailer’s focus on giving away discounts that are too good to be turned down.

Mustafa says that Daymart was the first in the region to introduce low-cost ‘Wednesday Bazaar’ for fruits and vegetables, which became such a runaway hit with the customers that today the concept is being practised by all grocery retailers in the area.

“We keep coming up with innovative marketing strategies for wooing customers and widening our reach. In recent years, we have launched ‘Saturday Bazaar’ under which we offer fruits at bargain basement prices; similarly we have launched ‘Budget Week’ which runs through the first week of every month under which customers can avail of all our products at a relatively lower price than the regular price on other days,” says Mustafa.

According to Ali, the biggest challenge for Daymart and other modern trade retailers in Kerala and elsewhere across India is to wean customers away from kirana shops who hold sway over the grocery retail industry in India by cornering almost 85% of the market share. “Other big format retailers are not really my competition but the streetside kirana shops are, and my challenge is to convert their buyers into becoming our customers,” he says.

Beefing up tech and IT systems “Even today, most regional supermarkets in Kerala don’t have a specialized inventory-management department, and their IT strength is primordial by today’s world standards. At Daymart, we have invested in building up expertise in these areas,” reveals Ali.

Daymart employs its own data analysts to sift through the heaps of customer data and provide the retailer with actionable insights. “In our HR, Marketing and Sales departments, people are encouraged to think out of the box and come up with creative solutions to the challenges that come our way,” says Mustafa.

Daymart stores are now in the process of installing Artificial Intelligence (AI) cameras – a first for supermarkets in Kerala – which will help the retailer get a ringside view of the customers activities in terms of how they prefer to navigate the shop floor, what time they visit the store, which areas they prefer to go, which are the hot spots inside the store where maximum product pick-up takes place, the choices they make inside the store, if they prefer high-value or low value products…all of which will help Daymart to monitor the customers so as to understand and serve them better.

Explaining the rationale behind the move, Ali says that retailers are primarily using AI to automate processes along the supply chain. “With AI, retailers can start to consume huge amounts of data, see patterns and then automate the necessary actions, like rerouting trucks due to developing bad weather conditions. The research shows the revenue potential for intelligent automation for retailers and CPG companies would be even higher than the cost savings.”

The AI cameras will also equip Daymart to cut down on its shrinkage rate from the current 1.5% to almost zero, giving a big bump to its overall profitability. “Though we have the regular cameras installed at our stores, monitoring all of them is not easy. But the AI camera will at once detect if any product that is picked up has not gone to the cart or back to the shelf,” notes Mustafa, adding that shrinkage is a big drain on the profitability of retailers and can be totally avoided with the use of AI cameras.

He observes that people in Kerala are status quo-ist and not very receptive to changes. Giving an example of how online ordering is least preferred by shoppers in Kerala, he says that Daymart has its own online App on which customers can order and get the products delivered, but the facility has not gained much traction with the shoppers in the State.

“While online ordering gained currency during the days of Covid restrictions, it has now tapered to the point of being used occasionally by our customers. Online ordering might find favor with those who put convenience above everything else. However, the service comes with an inherent flaw and that is manifested in the disconnect between the consumer and the retailer. In the case of Kerala, this disadvantage is mitigated to a great extent because people here don’t take to online ordering as their natural preference.

The usage of the online ordering App is very minimal, especially among the native population and it is mostly used by people from the North and West who have come here to work or have settled here. Even those of our stores that are located in the premium areas of cities see far less app usage than the call-and-collect ordering facility, which is also offered by our stores. More than online ordering, people prefer to call and place the orders and apart from the website and mobile app, we also offer this facility to our customers, which is more popular than online ordering and certainly nowhere near in-store visit that most of our customers continue to prefer,” shares Mustafa.

Future vision and expansion plans

“We have set up a goal to become the best and biggest retailer in Kerala and are working to accomplish those benchmarks. By 2030, our blueprint is to grow Daymart’s footprint to 50 stores and cross Rs. 500 crore in annual turnover. Once, we reach this goal, we will be able to realize our mission and vision fairly smoothly,” says Ali.

“I travel all around the world to see with my own eyes the changes aborning in the retail industry, the trends that are emerging and the practices that are past their sell-by date. We, at Daymart, are open to the changes and keep our ears to the ground to serve our customers in newer and more engaging ways, and that alone will keep us going,” says Mustafa, adding that he is quick to introduce the best practices and trends at his stores from what he picks up from his travels across and outside the country.

“In the course of my travels, I visit many stores both in India and overseas and I attend many trade events and shows from where I pick up the ideas that can be introduced at our own stores. We keep bringing in new ideas and practices to our stores, which helps Daymart refresh its business proposition and offerings from time to time, and stay relevant,” he says.

With the pace of expansion at Daymart now finding its own momentum, the retailer has set its sights on launching bigger stores – 10,000-20,000 sq.ft – where it can introduce bigger assortments and breadth of merchandise. Of the 20 stores in operation currently, 4 of Daymart stores are above 10,000 sq.ft. and the plan is to keep growing their count, wherever possible, as they fetch better returns and the revenue run rate for these stores is higher.

“Assortments are larger and more varied at our bigger stores, they have more shop-in-shop and there are more dedicated counters for dry fruits, and other high-value products, apart from a foodservice section, which elevates and enhances the shopping value at stores as customers like to indulge in refreshments while shopping. Having a foodservice section inside the store not only helps to attract higher footfalls, it also lengthens the dwell time of shoppers inside the store, which leads to more purchasing activities besides fetching incremental and independent revenue from the department,” says Mustafa.

At the same time, the larger space at these stores allows Daymart to go for more in-store activities like product samplings and demos, festival and cultural activities, all of which help to draw in more footfalls, pull in higher sales and revenue, and fetch higher yields for the bigger stores.

Going forward, the strategy will be to expand both smaller and bigger stores depending on the locality and the market potential of the specific geography. However, there would be a greater push and emphasis towards opening larger stores, especially around the periphery of cities where Daymart stores are currently operational.

The article is published in the November edition of the Progressive Grocer magazine 2022. To read the full article, subscribe to the magazine.

The post Daymart: North Kerala’s Largest Retailer Aims To Be The State’s Best appeared first on Business of Food.

Vijetha Supermarkets’ meteoric rise from a modest 1,000 sq.ft. store to a network of 109 outlets is a testament to Rao’s unwavering commitment to quality and customer service. As Vijetha Supermarkets embarks on its journey of expansion and diversification, the future is ripe with possibilities, promising even greater heights of success and achievement.

Jagan Mohan Rao, a man of simple beginnings, hailed from the agricultural heartlands, and was born in a village called Nimmagaddavari Palem near Guntur district, Andhra Pradesh. When the time came to make his mark in life, fate led Rao to the doors of Trinetra Supermarket, where he commenced his humble journey on the shop floor, a novice navigating the intricacies of retail operations.

During the formative years of his fledgling career, spanning from 1993 to 1998, Rao honed his skills and garnered invaluable experience, gradually ascending the ranks to assume the role of a store manager. His entrepreneurial journey began not in the glossy aisles of corporate boardrooms, but within the walls Trinetra Supermarket, where he earned a modest sum of Rs.750.

Yet within these humble beginnings lay the seeds of ambition. “I started my professional career at Trinetra Supermarket in Hyderabad, the first-of-a-kind supermarket of an organized retail chain, where I served as a store manager. But I often thought about establishing a business house of my own. After a lot of planning and careful consideration, I decided to launch a supermarket. My dream materialized on 7th March 1999, when I opened the first Vijetha Supermarkets’ store at Chandanagar, Hyderabad,” recounts Rao.

Amidst the dynamic urban mosaic of Hyderabad’s cityscape, a new star of grocery retail burst onto the scene on a brisk March day in 1999: Vijetha Supermarkets. Conceived by Jagan Mohan Rao, this newcomer to the grocery retail stage has adroitly matured into an exemplar of retail excellence, etching its mark across the urban landscape of Hyderabad and the expanse of Andhra Pradesh.

With a keen eye for opportunity and a commitment to customer service, Rao embarked on a journey that would redefine grocery shopping for generations to come. Echoing with the promise of new beginnings, the first Vijetha Supermarkets’ store, about a 1,000 sq.ft., opened its doors to the public. From its modest origins in Chandanagar, Hyderabad, Vijetha Supermarkets has grown steadily, fueled by a dedication to quality and a customer-centric ethos.

Rao’s journey serves as a poignant reminder of the transformative potential inherent within every individual, regardless of their humble beginnings. From the rustic fields of his village to the dynamic landscape of urban retail, Rao’s story epitomizes the indomitable spirit of human endeavor and the boundless possibilities that await those who dare to dream and strive for a better tomorrow.

From Basics to Brilliance: Evolution of a Retail Titan

With time, Vijetha has evolved, expanding its offerings from basics like staples and groceries to encompass a diverse and eclectic array of products – from fresh produce to fresh meat, seafood, bakery, and exclusive cosmetic brands. The store stocks all major supermarket categories like fruits & vegetables, food & beverages, groceries, dairy, confectionery, FMCG,  gifts & novelties, cosmetics, general merchandise, apparel, small & kitchen appliances, imported products. Within the aisles of Vijetha stores, a cornucopia of essential and indulgent offerings awaits discerning shoppers. Each category is meticulously curated to cater to a myriad of tastes, preferences, and desires, encapsulating the essence of modern convenience and luxury.

Venture further into the heart of the store, where a kaleidoscope of flavors awaits in the form of food and beverages from every corner of the globe, each item carefully selected to ignite the taste buds and culinary inspiration.

The grocery aisles showcase the retailer’s commitment to providing everyday essentials with unparalleled quality and variety, ensuring that no household need goes unmet. Meanwhile, the dairy section offers a treasure trove of creamy delights, from artisanal cheeses to wholesome milk and yogurts, sourced from trusted producers.

Indulgence knows no bounds in the confectionery section, where an array of sweet temptations awaits, and promising moments of pure bliss with every bite. Meanwhile, the FMCG (Fast-Moving Consumer Goods) shelves brim with household staples and personal care essentials, seamlessly blending practicality with luxury.

For those seeking the perfect gift or a delightful novelty to brighten someone’s day, the gifts and novelties section offers an enchanting array of options to suit every occasion and recipient. And for those in pursuit of beauty and self-care, the cosmetics department stands ready to pamper and rejuvenate, with an extensive selection of skincare, makeup, and fragrances to enhance one’s natural radiance.

Similarly, the general merchandise section boasts an eclectic array of goods, from household essentials to gadgets and gizmos that promise to simplify and enhance daily life. And for the fashion-forward, the apparel department showcases the latest trends and timeless classics, ensuring that style knows no bounds.

For the culinary enthusiasts and home chefs, Vijetha’s selection of small and kitchen appliances promises to elevate cooking endeavors to new heights, with state-of-the-art gadgets designed to streamline and enhance culinary creativity. And for those seeking a taste of the exotic, its imported products section offers a passport to global flavors and cultures, allowing shoppers to embark on a culinary odyssey without ever leaving the comfort of home.

In essence, each Vijetha’s store is more than just a supermarket; it is a veritable emporium of possibilities, where every aisle holds the promise of discovery and delight. With a commitment to quality, variety, and innovation, the retailer strives to exceed expectations and enrich the lives of its valued customers with each and every visit.

As the years have rolled by, Vijetha’s footprint has expanded, reaching cities and communities across Telangana and Andhra Pradesh. Today, Vijetha Supermarkets stands as a highly successful retail entity, widely recognized for its substantial presence in the market. Operating across several key cities including Hyderabad, Vijayawada, Guntur, Rajahmundry, Kakinada, and Vishakhapatnam, spanning the states of Telangana and Andhra Pradesh in southern India, the brand has firmly established itself as a frontrunner in the regional retail landscape.

Since its inception with a solitary outlet in 1999, Vijetha Supermarkets has expanded into a robust network comprising 109 grocery supermarkets. The retailer caters to a vast clientele base exceeding five lakh dedicated patrons each month, who make in-store visits and online app orders.

Out of Vijetha’s 109 stores, 24 are in gated communities and 85 stores are non-gated. Vijetha Supermarkets has strategically situated its network of 109 stores, with 24 outlets strategically positioned within gated communities, catering to the discerning needs of residents within exclusive residential complexes. Additionally, the company operates 85 stores located outside gated communities, ensuring accessibility and convenience for a broader demographic of customers across various urban and suburban locales.

Initially, the company concentrated its efforts on establishing stores within the range of 2000 to 5000 square feet. However, in recent times, it has transitioned towards opening larger format outlets spanning between 7,000 to 20,000 square feet. Notably, last year, the company introduced a Superstore covering an expansive area of 30,000 square feet in Kondapur, a suburban area of Hyderabad.

In the fiscal year 2022-23, Vijetha Supermarkets reported revenues of Rs. 725 crore, with average daily sales per square foot reaching Rs. 1560. The company experienced a remarkable growth rate of 14.2% in 2023 as compared to the preceding year. Furthermore, the same store sales for February 2024 demonstrated a significant increase, recording a growth of 18.8%. Vijetha’s own store brands in grocery and snacks contribute about 20% of overall sales in groceries and namkeens.

Ethos of Simplicity and Excellence

At the heart of this success story lies a simple philosophy: a dedication to simplicity and a commitment to excellence. For Jagan Mohan Rao and his team, the key to success lay not in grandiose schemes, but in the relentless pursuit of quality and customer satisfaction. Reflecting on his brand’s commitment to simplicity and quality that drives every aspect of its operations, Rao says: “Simplicity is at the core of our business philosophy and it is this ethos that drives the culture and the way of working at Vijetha Supermarkets. We literally keep everything at Vijetha simple and systematic. For us, one thing remains unchanged: a commitment to simplicity, quality, and above all, the cherished relationships built with customers and communities alike.”  

He also attributes Vijetha’s success to the help and support of the employees who are all imparted proper training to this effect. “But for their sincerity, hard work and integrity, our company would not have risen to this level, and that’s why we at Vijetha dedicate the major chunk of its success to our employees.”

This month, as Vijetha Supermarkets celebrates its silver jubilee, it stands as a testament to Rao’s power of vision and dedication. “As we celebrate a remarkable milestone, the team at Vijetha Supermarkets expresses it heartfelt thanks to my father Jagan Mohan Rao, whose visionary approach and dedication to holistic customer service have been the driving force behind our success,” says Sandeep Murakonda, the 27-year-old elder son of Rao, who officiates as Executive Director, and leads Operations and Strategy at Vijetha Supermarkets.

The recent launch of Vijetha’s 109th store at Srila Park, Hyderabad, is a testament to the retailer’s continuous effort to bring quality products, a diverse range of choices and exceptional service closer to its cherished customers. “We believe in not just meeting but exceeding customer expectations and this new store is yet another step in that direction. Our success is not just measured in numbers, it’s about the relationships we build, the communities we become a part of, and the smiles we bring to our customers faces. Each store is a reflection of our commitment to creating delightful shopping experiences,” says Siddharth Murakonda, the younger son of Rao, who joined Vijetha Supermarkets last year, assuming the position of Marketing Director, after graduating out of SP Jain School of Global Management.

In targeting the urban and semi-urban areas within Hyderabad and Andhra Pradesh with its eclectic product mixes, Vijetha Supermarkets not only serves as a marketplace but also as a bridge between communities, bringing people together in pursuit of their shared goals and aspirations. Vijetha’s stores have evolved into vital community hubs, far more than mere shopping destinations. They seamlessly interweave with the essence of the neighborhoods, infusing vibrancy and vitality into the lives of every visitor who step through their doors.

The Vijetha Supermarkets’ Experience

As a visionary entrepreneur with a passion for transforming mundane shopping into an extraordinary experience, Jagan Mohan Rao’s belief remains simple yet profound – every customer deserves nothing less than the best. The moment shoppers step into Vijetha Supermarkets, they are greeted by the tantalizing aroma of freshly baked bread, the vibrant colors of ripe fruits and vegetables, and the cheerful smiles of the staff ready to assist.

The tagline “Fresh Healthy Living” adorns the walls, reminding patrons of the retailer’s commitment to quality and freshness and offering the finest products of superior quality. The stores offer everything for daily home needs with products carefully selected to ensure only the best for their customers.

But beyond elevating shopping from being a daily chore to a world class shopping experience, the retailer also offers real value for money. While shoppers are pleasantly surprised by the gleaming aisles and neatly stacked shelves, there is a secret that has made Vijetha Supermarkets truly exceptional. The incredible deals awaiting shoppers every week truly sets Vijetha Supermarket apart.

There are exclusive offers and discounts that border on the unimaginary. Customers are seen delightfully walking away after buying premium products at unbelievable prices, more than they ever dreamed possible. It’s not just about saving money; it’s about getting the best bargains on premium products, making every purchase a win-win situation.

“Our retail philosophy is to provide freshness, choice, value and service to our customers. We have the best deals running every week where customers are offered the best of bargains,” asserts Siddharth. For the 69,000 daily visitors to Vijetha’s stores, its aisles hold the promise of freshness, choice, value, and service, inspiring all who cross its threshold. At the core of it all is a customer-centric approach, where every decision is made with the shopper in mind. “Our stores are not just places for selling products but about providing an unforgettable shopping experience that leaves a lasting impression,” says Siddharth.

Supply Chain and Logistics Management

Supply Chain Management lies at the heart of Vijetha Supermarkets’ operational prowess, serving as the linchpin that ensures seamless coordination and efficiency across the entire retail ecosystem. Centralized distribution stands as a cornerstone of this strategy, enabling the swift and streamlined movement of goods from suppliers to stores. By consolidating distribution operations, Vijetha Supermarkets optimizes inventory management and minimizes logistical complexities, resulting in reduced delivery times and enhanced responsiveness to customer demands.

Efficient route planning further enhances the agility and effectiveness of the supply chain, ensuring that products reach their destinations swiftly and cost-effectively. Through the strategic optimization of delivery routes, Vijetha Supermarkets minimizes transportation costs and environmental impact while maximizing delivery efficiency.

In addition to streamlining distribution processes, Vijetha Supermarkets employs advanced inventory management techniques to minimize redundant stocks and optimize inventory levels. By leveraging data analytics and predictive modeling, the retailer anticipates demand fluctuations and adjusts inventory levels accordingly, thereby reducing carrying costs and minimizing the risk of stockouts or overstock situations.

Furthermore, Vijetha Supermarkets recognizes the integral connection between front-end and back-end processes in delivering a seamless customer experience. By fostering close collaboration and integration between various operational functions, including procurement, warehousing, and retail operations, the retailer ensures that products are readily available to meet customer demands while minimizing inefficiencies and redundancies in the supply chain.

Simply put, Vijetha Supermarkets’ Supply Chain Management approach goes beyond logistics; it reflects a complete dedication to being efficient, flexible, and customer-focused. Through centralized distribution, efficient route planning, inventory optimization, and seamless process integration, the retailer continues to set new benchmarks for excellence in retail logistics.

A Customer-Centric Retail Journey

Vijetha Supermarkets has strategically expanded its footprint, driven by an acute understanding of consumer needs and careful location selection. It has opened stores based on the understanding of consumer needs and knowing the exact locations where a supermarket will be most accessible to the public. Thus, each store is strategically positioned in high-density areas, ensuring optimal accessibility to meet the demands of diverse customer demographics.

Before opening new stores, the retailer also conducts thorough market research to identify potential locations with high demand and growth potential. This ensures that the new stores are strategically located to capture market share and maximize profitability. And in doing so, they are not just building supermarkets — they are building communities by meeting the needs of their customers with every step of expansion. Community engagement is an important element of Vijetha’s customer-centric approach. Beyond just retailing, Vijetha Supermarkets actively engages with the communities it serves through various initiatives, contributing to its brand image as a responsible corporate citizen.

A thorough understanding of store location and customer needs is key to a flourishing retail business and Vijetha has plenty of expertise and experience on these two fronts. “All our stores are located in areas with high density and concentrated population, on main streets, inside gated and non-gated communities, which allows the stores to cater to different customer segments and service the needs and requirements of people with varied tastes,” says Sandeep.

The retailer employs effective merchandising techniques that are employed to highlight key products and drive sales. Each store’s inventory is tailored to reflect the demographics and shopping habits of its catchment area. The retailer carefully curates its product assortment to cater to the preferences and needs of local customers. In terms of display and merchandizing strategy, the emphasis is more on popular products and customers’ need-based products.

The retailer prioritizes the visibility of products that offer value and affordability, which ensure they meet the preferences of the retailer’s wide-ranging customer base. Seasonal products are also prominently displayed. Additionally, Vijetha stores allocate more space to products and categories that are growing at a faster rate. Reallocation of space to products and their repositioning is a constant process at the store for better business propagation.  

In order to attract and engage the younger generation of shoppers, the company strategically curates its product offerings to align with the preferences of this demographic. This includes sourcing popular items, such as imported food products and ready-to-eat options that resonate with youthful tastes. Additionally, the company maintains a diverse selection of cosmetics and deodorants to cater to the beauty and personal care needs of younger consumers.

Furthermore, there is a deliberate focus on expanding the confectionery category to enhance its appeal to young shoppers. Efforts are also underway to augment the product range to include high-priority items such as energy drinks and energy bars, which are particularly favored by the youth demographic.

As an omnichannel retailer, Vijetha Supermarkets also boasts a robust online platform, Vijethagrocer.com. Here, customers can access an extensive range of food items, including fruits, vegetables, groceries, household essentials, and personal care products, all offered at competitive prices. Additionally, the convenience of free home delivery is extended to customers across Hyderabad areas, subject to a minimum order requirement. Customers can also place orders through phone and WhatsApp.

“Our online platform allows you to purchase with the option of cash on delivery or make the payment using credit/debit online banking also. So, if you are at Hyderabad and don’t want to go out for shopping at a supermarket, just login to vijethagrocer.com and place your order and get the benefits of purchasing at the best rates from us. Not only do we bring for you the healthiest and freshest fruits and vegetables, grocery and staples as well as the best organic food items at a most competitive price but also the assurance of same-day delivery,” says Siddharth.

When it comes to making personalized recommendations, the retailer leverages advanced data analytics and artificial intelligence capabilities. Through meticulous analysis of customer purchase history and preferences, Vijetha Supermarket adeptly makes tailored product suggestions. This granular approach significantly enriches the online shopping journey – aligning seamlessly with individual customer needs and preferences.

With its commitment to customer satisfaction, the retailer has succeeded in building a large and loyal customer base over the years. “We prioritize customer satisfaction by providing high-quality products, excellent customer service, and a pleasant shopping experience. Understanding and meeting the diverse needs of customers across different demographics and locations is key to maintaining loyalty and attracting new customers,” adds Siddharth.

 To elevate the standard of customer service, exclusive privilege cards are extended to valued patrons. Harnessing cutting-edge technology, Vijetha Supermarket seamlessly executes and oversees customer loyalty programs. Utilizing digital loyalty cards or mobile applications, patrons have the opportunity to accrue rewards points with each purchase, access personalized promotions, and redeem their rewards. This comprehensive system cultivates lasting customer loyalty and promotes repeat business, ensuring a mutually beneficial relationship between the supermarket and its clientele.

Indeed, the integration of technology across all aspects of Vijetha’s operations stands as a key element in elevating the customer experience. This includes implementing point-of-sale systems, inventory management software, online ordering platforms, and customer relationship management tools.

For instance, mobile payment solutions expedite checkout, while digital signage keeps customers informed and engaged. To streamline the checkout process and reduce waiting times, Vijetha Supermarkets offer mobile payment solutions such as digital wallets or mobile apps. Customers can simply scan QR codes or use contactless payment methods to complete their transactions, enhancing convenience and efficiency. Similarly, in-store digital signage displays, strategically placed throughout the store, provide information about on-going promotions, new product arrivals, and in-store events. This enhances the shopping experience by keeping customers informed and engaged during their visit.

Regarding marketing and promotional efforts, the retailer employs various traditional mediums such as paper advertisements, hoardings, and distribution of flyers to disseminate information about its promotions, special offers, and schemes to the customers. Furthermore, to stimulate sales, the retailer collaborates with brands to conduct product samplings aimed at providing customers with firsthand experiences of the featured products.

Lately, Vijetha has also introduced AI-powered robots to assist shoppers and streamline operations. “We have introduced an artificial intelligence powered robot at our stores, which is popular among children and acts like a magnet and helps to bump up sales. Introducing robots into Vijetha Supermarkets’ stores represents a forward-thinking approach to enhancing the shopping experience for customers and streamlining operations,” says Siddharth.

Robots are programmed to assist customers with various tasks, such as locating products within the store, providing information about promotions and discounts, and offering personalized recommendations based on customers’ preferences and purchase history. This enhances the overall shopping experience by making it more convenient and efficient for customers to find what they need.

Vijetha Supermarkets also leverages advanced technological tools to actively solicit customer feedback and foster engagement with its clientele. This multifaceted approach encompasses the deployment of online surveys, leveraging social media platforms, and employing sophisticated customer relationship management (CRM) systems. By attentively listening to customer feedback and swiftly addressing their needs, Vijetha Supermarkets perpetually refines and enhances the overall customer experience.

The seamless incorporation of technology throughout the entirety of the supermarket’s operations transcends mere efficiency; it embodies a profound commitment to adaptability and foresight. It reflects an unwavering dedication to cultivating lasting relationships with every shopper, underscoring the establishment’s steadfast pursuit of excellence.

While technology undoubtedly plays a pivotal role in shaping the modern retail landscape, the true measure of a supermarket’s success lies in the caliber of its workforce. Amidst the ceaseless march of innovation and digitalization, it is the competence, dedication, and expertise of employees that ultimately determine the efficacy and resonance of the customer experience.

Take a moment to think about how technology and human interaction work together in retail. While state-of-the-art systems may streamline operations and enhance efficiency, it is the adept guidance and personalized service rendered by knowledgeable staff members that elevate a mundane shopping excursion into an unforgettable journey of discovery and satisfaction.

Furthermore, in an era where consumer preferences are as diverse and dynamic as ever, the role of the employee transcends mere transactional interactions; it becomes an indispensable conduit for empathy, understanding, and genuine connection. Whether it’s the seasoned cashier who greets each customer with a warm smile, the product specialist who offers insightful recommendations tailored to individual preferences, or the diligent manager who resolves queries with grace and efficiency, it is the human element that infuses a sense of authenticity and trust into every interaction.

Vijetha’s store operations are overseen by a highly experienced management and supported by a talented and dedicated base of over 3,500 employees who come with a rich knowledge of various product categories and with vast experience in different fields. “We are proud to say that Vijetha Supermarkets is a well-structured organization with the right people in right place. We impart continuous employee training to ensure a knowledgeable and motivated staff capable of delivering excellent service, adapt to market strategies, and navigate evolving consumer preferences and market trends. Continuous training programs keep employees updated on product knowledge, sales techniques, and customer interaction skills,” avers Sandeep.

He adds: “Today, each category is getting more refined and is further expanding into sub-categories. The store and the staff need to be updated from time to time. And a constant check on them is required to give the best of experience and ease to our customers. We give in-house and external training to the staff, supervisors, branch managers, and in-charge personnel and offer them the resources to carry out their responsibilities with updated skills and technology assistance.”

Ultimately, while technology may serve as a formidable ally in the pursuit of retail excellence, it is the unwavering dedication and expertise of employees that serve as the bedrock upon which the success of a supermarket is built. In this symbiotic relationship between human ingenuity and technological innovation, lies the true essence of a truly exceptional shopping experience.

Targets for the Future

Having established a formidable presence in the grocery retailing business, Vijetha Supermarkets has now embarked on an exciting journey of diversification and expansion, venturing into an array of complementary sectors to further solidify its position as a leader in the retail landscape.

The success of Vijetha Supermarkets has paved the way for ambitious forays into new territories, including the hospitality sector, where the company endeavors to redefine the standards of excellence in hotel accommodations and hospitality services. Furthermore, the establishment of cold chains ensures the seamless preservation and transportation of perishable goods, underscoring Vijetha’s commitment to quality and freshness.

Not content with resting on its laurels, Vijetha Supermarkets is now making its presence felt in bakery and confectionery, promising delectable treats and culinary delights to tantalize the taste buds of patrons far and wide. Going ahead, the retailer has plans for the expansion of its retail footprint, with the launch of new super stores and hypermarkets poised to revolutionize the shopping experience.

“Vijetha Supermarkets is now expanding into other sectors such as hotels, cold chains, hospitality services, and bakery/confectionery. We plan to open more number of outlets with a bigger size. Going forward, we will open new super stores and hypermarkets. From 1 store in 1999 to 109 stores in 2024, we have plans to reach 150 stores by 2025. We are targeting a turnover of Rs. 850 crore in FY 23-24, up from Rs. 725 crore reached in the previous fiscal,” says Jagan Mogan Rao.

With a steadfast commitment to innovation, quality, and customer satisfaction, Vijetha Supermarkets stands poised to chart new heights of achievement in the ever-evolving landscape of retail excellence. With revenues soaring and growth on the horizon, the journey of Vijetha Supermarkets is far from over.  

The post Vijetha Supermarkets: From Humble Beginnings to Retail Royalty appeared first on Business of Food.

To spread its wings in the Indian domain and to create a link between Indian manufacturers and the demands of Indian goods all across the globe, the brand has organized a Growth Summit. This summit serves as a collaborative platform bringing together MSMEs, manufacturers, and small retailers, to catalyze exports from India.

Walmart’s vision is to facilitate the sourcing of $10 billion worth of goods annually by 2027, thereby fostering economic growth and international trade partnerships with India. 

The entrepreneurial spirit runs deep in the veins of every Indian. Every Indian dreams of owning their own business. The Make-in-India initiative acts as a beacon, amplifying the already existing passion for embarking on this entrepreneurial journey that resides in the heart of every Indian.

Walmart, a global retail leader rooted in the US, recognizes this passion of Indian manufacturers and graduates, paving a pathway for them to become integral parts of the retail journey through their Growth Summit held in New Delhi.

The retailer which has been invested in India for over 2 decades, has brought together its Indian partners, Flipkart and PhonePe, suppliers, and supply chain innovators to share the commitment to boost India’s economy and become a leading supplier of Indian goods on the global stage. 

Walmart’s mission is to accelerate its exports in India across different product categories such as food, consumables, health and wellness, general merchandise, apparel, shoes, home textiles, and toys, sourcing $10 billion of goods each year by 2027.

‘‘We’ve made investments in Flipkart, PhonePe, Myntra, and Ninja Cart. We’re committed to helping India’s economy grow, which is on track to hit $ 4 trillion’’, says Kathryn McLay, President and CEO, Walmart International. 

While the target may appear zealous, Walmart’s faith in India’s potential, coupled with the initiatives undertaken by the Government of India to streamline Foreign Direct Investment (FDI) and boost trade, can transform this distant dream into reality.

Elevating people and communities 

As described by CEO Doug McMillon, Walmart is a people-led, tech-powered Omni channel retailer dedicated to helping people save money and live better. The brand is committed to its 2.1 million associates that make the difference. 

‘‘As a company, our mission encompasses fostering a positive and a healthy culture, offering career advancement opportunities to enable everyone to realize their full potential, and ensuring that every individual feels a sense of belonging within our organization. We provide a pathway to success, facilitating growth and development for all. While our commitment to people remains paramount, technology plays a pivotal role in our operations. We have evolved into a true omnichannel retailer, seamlessly integrating our human capital with technology to cater to the diverse needs and preferences of our customers.’’ says McMillon. 

As part of its business philosophy, Walmart has extended its reach into the Indian market to source distinctive, artisanal, and high-quality Indian goods at affordable prices for its customer base. To enhance its supply chain logistics in India, the company has introduced innovative initiatives aimed at bolstering Indian manufacturing industries and MSMEs to meet its demands. 

Walmart is committed to offering essential items to its customers at affordable prices, striving to make a positive difference in people’s lives by helping them save money and improve their quality of life. ‘‘Our strategy is simple. It’s to help people save money and enhance their quality of life. We want to give them value for their money, we save their time and we do our part to strengthen their communities and planet, ’’ says Doug.

Empowering MSMEs in India

In order to strengthen the MSMEs in India, and to spread its wing in the Indian domain, Walmart is creating a link between the Indian manufacturers and the demands of Indian goods all across the globe. The Walmart Foundation has introduced a supplier development program, ‘Walmart Vriddhi’ in India to empower more than 50,000 MSMEs over five years. 

Launched in December 2019, the program provides free training, mentoring, and digital tools to help businesses grow, scale, and integrate into domestic supply chains. The Walmart program, together with program partner, Swasti, offers local suppliers the chance to access training and gain business advice while tapping into Flipkart’s platform expertise.  

The digital training provided to MSMEs covers many aspects of business management such as finance, marketing, workforce management, and environmental sustainability. This empowers entrepreneurs to establish their business models and contribute to employment opportunities at local level.

‘‘With the help of this program, graduates or newly budding entrepreneurs can have access to become sellers at our marketplaces. Some graduates might even have the opportunity to go on and become part of our export-ready program. Our focus is to recruit and train new suppliers to fulfill our purchase orders around the world. These orders often lead to the creation of new jobs. It also allows our suppliers to invest back in their local communities. We’ve seen this with partners like Shahi Exports. They continue to invest in manufacturing capabilities and community programs that empower women in their workforce,’’ says Andrea Albright, Executive Vice President of sourcing, at Walmart

Through this program, small and medium-sized business enterprises found opportunities to reach more customers. Moreover, the mentors who volunteer their time in this program help the MSMEs to achieve their goals. They are some of the brightest minds in India. ‘‘When we mix the expertise of our mentors with the passion of these MSMEs, the sky is the limit. It’s all about driving growth and tapping into the wonderful entrepreneurial spirit of Indian business, ’’ claims Kathryn. Doug further gave an example of an entrepreneur named Sundar whose business grew by 212% selling spices across India.

Apart from this program, Walmart also offers a variety of career paths from corporate to technology and so many more. At the end of the day, what makes the ecosystem whole is its customers. ‘‘Customers are at the center of everything that we do. Each step helps us to deliver on our company purpose to help save people money so they can live a better life. I’m so proud of the work that our teams are doing to support strong local businesses, companies, and communities. Our future is bright and I can’t wait to see what comes out of this. When companies like yours are successful, India grows,’’ says Albright. 

All these measures have strengthened India’s ties with Walmart and have provided huge opportunities to the MSMEs, small retailers, and Kirana owners to not only upskill themselves but also to take their products to the global stage, expanding their business and boosting the economic progress of the country. The Growth Summit has been the driving vehicle for many local manufacturers and retailers who aspire to join Walmart and expand their business. The summit included some of the top leaders of the retail and e-commerce platform who provided a deep insight into various factors that surged the economic growth of India, fulfilling its ambition to turn into a trillion-dollar economy. 

 Fueling India’s Economic Growth

India’s manufacturing capacity is broadening and scaling day by day. The business ecosystem and infrastructure are significant parts of it. Today the nation stands on the global stage of business and innovation. India is trying to achieve the goal of a trillion-dollar economy in a compressed timeline. 

But how will India be able to achieve this massive goal in such a short period? The answer is not that complicated. India is driving a public-private partnership bridged together by the digital infrastructure that can create immense societal impact. ‘‘There are 2 important aspects of commerce in India’’, says Kalyan Krishnamurthy, Group CEO, of Flipkart. ‘‘One is access and another is affordability. Access again can be broken down into digital access and physical access.’’

Digital access is expanding across the length and breadth of the country. Different types of users speak different languages with different income segments and live in all kinds of places where there are different types of networks. How do you make sure that they get a good experience while opening an e-commerce site? That is digital access. Physical access is how we make sure we get the product to the doorstep of the consumers wherever they live. 

There are multiple aspects to that. One is of course cost, another is reach and the third is the right type of service level. 

COST: One of the biggest challenges for access alone is to solve the cost structure. India in general is a low-ticket price market. Now for e-commerce or even for physical stores to deliver across the country with that kind of a cost structure and with that kind of logistics complexity is one of the greatest challenges that can enable e-commerce in the future if we can provide a solution to this challenge. So if the e-commerce and physical platform can lower their cost structure, then it will further increase its penetration. So the cost of doing business is directly related to logistics.

REACH: About two or three decades back, consumers did not have choices in Tier 2, or Tier 3 cities. If they even wanted to buy a simple branded product, they would take a train or a bus, go to the nearest big city, and look for a shopping mall. Today, they have access to millions of products from SMEs, and the entire consumerism is enabled by SMEs in India and they will continue to do that. They are the backbone of this consumerism that is going on and will continue to be in the coming years. ‘‘We have more than 500 million users on our platform Flipkart today. We have 1.4 million SMEs listed on the platform, and 250 million products today. The product listing is how much we offer today in Tier 2, Tier 3 cities,’’ affirms Kalyan.

SERVICE LEVEL:  Today’s India is not just promoting the manufacturing of products, but manufacturing and selling of quality products. The government is trying to create an ecosystem where there are good startups and quality manufacturing processes. ‘‘We want to create incubators in India in line with the vision of having quality manufacturing processes and products. If we have good incubators, we will have good startups. If we have good startups, then we will have good manufacturing processes. If we have good manufacturing processes, then the quality of products will be good and cost-effective,’’ says Joint Secretary Sanjiv at the Department for the Promotion of Industry and Internal Trade, Government of India. 

Diving into Digital Penetration

Apart from accessibility, innovation using technology is the only way India can reach a trillion-dollar economy. India has better mobile and digital penetration than most of the world. Even a Rikshawala or a street vendor is using digital means in India. Digital infrastructure is the way towards prosperity. Aadhar as the digital identity for every Indian, to UPI- the United Payments Interface, is a shining example of how we can bring policymakers, regulators, and private parties together to create a phenomenal impact. 

‘‘India is doing more than 10 billion digital transactions on a monthly basis. Digitization through payments is a path toward the formalization of the economy. Before UPI, the broader economy in India was considered to be informal. There was earlier large number of small businesses, micro-businesses, which were not regarded as part of the formal economy, but with the launch of UPI payments, and with the digitization of transactions, a large number of businesses, millions in-fact are being brought into the formal economy at a very rapid pace,’’ says Rahul Chari, Founder and CTO of PhonePe.

What does this mean for the economy?  Through digital payments, a cash flow record is created and these records are being recognized by banks opening up credits and flow-based lending, which helps these businesses to expand their footprint, increase their production, and get noticed not just by retailers but by the largest retailer across the world like Walmart. Thus, digitization is formalizing the economy which is creating a tsunami effect of positive disruption. 

With the newfound confidence, MSMEs can grow their businesses and invest in technologies that are bringing these small and medium sellers to the world stage. But digital penetration is not the only force that is aiding these MSMEs, the government of India plays a crucial role in the expansion and growth of the MSMEs. Simplification of tax, better incentives schemes, and evolving or amending policies as per the new India’s requirement are very crucial aspects for trailblazing MSMEs in India. 

Role of the Govt

The role of the Government of India, as the honorable PM always says, is not to do business but to be an enabler, quotes JS Sanjiv. ‘‘This is the new India, and the government wants to be accessible to everyone. Whether it is a big global retailer or a small MSME retailer from a Tier 2 Tier 3 city, the govt is responsive to their needs.’’

The govt is adapting to the soup-to-nuts approach to promote the manufacturers in India. ‘‘The whole emphasis is that whenever industry comes with an issue, government is open. We are doing extensive stakeholder consultations and considering the perspectives of all individuals. We are trying to change the law as it evolves, and tweak polices according to the demands of new India,’’ asserts Sanjiv. 

Govt is opening up platforms like ONDC to expand e-commerce trade to not just towns and cities but at the grassroots level to the villages and districts to turn the vision of digital India into reality. Apart from that, the govt has tweaked many policies and simplified the taxation process to promote ease of doing business in India. We have removed almost 1500 archaic rules and tweaked few export and import rules to enhance trade in India,’’ says Sanjiv. Additionally, the government has come up with PLI schemes to promote trade in India. 

Citing one such example, Sanjiv said, ‘‘Previously, there was no provision for importing products required for research-based projects. However, recognizing the importance of fostering manufacturing and innovation, the Indian government has implemented policies to facilitate the importation of such items.’’He further adds, ‘‘We aim to adapt and amend our laws or policies as it develops, ensuring that it remains relevant and responsive to evolving needs and circumstances.’’

Walmart’s Triumph with MSME Partnerships

Walmart is acquainted with export-ready suppliers, innovators, and entrepreneurs representing 24 states and union territories in the Growth Summit where these manufacturers and startups participated in pitch meetings featuring products made, grown, or assembled in India.

Various new startup brands exhibited their products under the guidance of Walmart experts showcasing their triumphs and growth aided by Walmart. Some of these brands are: 

Welspun, a textile company in India, which started its journey by selling their towels in Sam’s Club. They are today known for their quality and great pricing thus fulfilling the demand of Walmart’s customer base in terms of quality and affordability. 

The new cruiser-style bicycles by the brand Concord under Hero Ecotech are a special and popular item in Walmart. Ambassador Taranjit Singh Sandhu once checked out these bikes in one of their stores, claims Dough. 

Mrs Bector’s Foods, an Indian supplier of cookies is another example. They made delicious Danish butter cookies which are very popular in the holiday season overseas. 

All these examples clearly show Walmart’s commitment to the Indian market. The company has now cumulatively sourced more than $30 billion in products across a range of categories. Walmart Vriddhi training and mentorship program has empowered over 50,000 MSMEs and Walmart is very optimistic about its future ties with India, thus envisioning a $10 billion export goal with India.

The post Walmart blazing the Indian entrepreneurial spirit and boosting economy appeared first on Business of Food.

The origins of Best Basket supermarket goes back to its humble beginnings rooted in a traditional family enterprise plying its trade in the northwest region of Maharashtra. With a keen awareness of the evolving retail landscape, this formerly modest family enterprise underwent a significant transformation, gradually establishing itself as a leader in modern retailing.

This evolution has been facilitated by a strategic approach to innovation and to prioritizing the needs and preferences of the customer. Founded by Nitin Bhusare, Best Basket began its journey as a proprietorship firm under the name DN Mart. The brand’s transition to modern retail commenced with the opening of its first store in Yeola in 2022. Yeola is a town located in the Nashik district of Maharashtra. The success of their first supermarket prompted the retailer to introduce another flagship branch in the city of Nashik in 2023.

This expansion demonstrated the brand’s dedication to serving various communities and underscored its commitment to offering high-quality products and services to an expanding customer demographic. Recently, Best Basket inaugurated its third and newest branch in Kopargaon, situated in the Ahmednagar district of Maharashtra. As of today, the retailer’s operations span an average retail area of 11500 sq.ft., that fetch an annual turnover of Rs. 35 crore.

Best Basket operates on the guiding principle of “Sabkuch Best in your Basket”. In line with its brand ethos, the retailer promises to provide customers with an exceptional shopping experience through a wide range of high-quality products, competitive prices, excellent service, hygiene standards, and more. “Every visit to Best Basket guarantees excellence, ensuring customers have a comprehensive and satisfying shopping experience,” says Nitin Bhusare, Founder, Best Basket.

With the aim of providing a comprehensive and satisfying experience for its valued customers, Best Basket is commited to setting the standards of excellence in every aspect of the shopping journey, from fresh produce to packaged goods and household essentials. The brand selects and curates its offerings to meet the highest quality standards and places a strong emphasis on understanding and fulfilling the needs of its customers, actively seeking feedback to tailor its offerings and services accordingly.

Location Strategy

Best Basket strategically selects premium residential areas at both the Taluka and District levels, prioritizing locations with convenient parking facilities to enhance the shopping convenience for their customers. They focus on areas with high residential density to strategically position their stores within vibrant communities. Samarth N. Bhusare, Director of Best Basket, emphasizes, “We aim for optimal residential locations at the taluka or district level for our store setups, ensuring accessible parking and a high residential density within a 2km radius.”

Product Basket

Best Basket boasts an extensive product range exceeding 15,000 items, catering to a diverse customer base. From staple groceries and cosmetics to an assortment of food and beverages, dry fruits, Indian spices, organic foods, home care essentials, and personal care products, Best Basket ensures its shelves accommodate the varied preferences and lifestyles of its clientele. While the supermarket takes pride in offering high-quality products across these categories, a substantial portion of its revenue is derived from key segments, particularly groceries and dry fruits.

These categories mirror the demand for both essential and premium offerings within the customer base, highlighting their strategic emphasis on meeting the diverse needs and preferences of discerning shoppers. By providing a comprehensive selection of products in segments such as Grocery and Dry Fruits, Best Basket aims to cater to the varying requirements of its valued clientele.

Inclusive Shopping Environment

Best Basket is dedicated to fostering an inclusive shopping environment for its diverse clientele, which includes farmers, businessmen, middle-income groups, and more. The brand enhances the shopping experience by organizing various activities aligned with special occasions and festivals, such as lucky draws and food festivals, and offering gifts during festive seasons. According to Samarth, the supermarket aims to make every customer feel valued and appreciated.

To engage with the Gen-Z demographic, Best Basket implements strategies tailored to their preferences, including attractive schemes and discounts on cosmetics and food products. Leveraging social media as a primary marketing tool, the supermarket also provides free home delivery, exceptional hospitality, and quality products to cater to the needs of the new generation. ‘‘We offer schemes and discounts on cosmetics and food products. We bring social media as our prime tool in our marketing campaigns. Free home delivery, fine hospitality, and quality products are all what the new generation needs and thus they are the serving pillars of our supermarket,’’ says Samarth.

Additionally, to accommodate their busy lifestyles, the supermarket offers niche category products and ensures a seamless shopping experience with complimentary home delivery services. Recognizing the demand for convenience among today’s youth, Best Basket has expanded its product categories to include Ready-to-Eat and Ready-to-Cook items, as well as exotic dry fruits and chocolates. By prioritizing superior hospitality and curating a selection of high quality products, the supermarket aims to elevate the shopping journey for its younger patrons, aligning with their discerning tastes and preferences.

Fostering Customer Loyalty

Apart from providing a vast basket of products to its customers, the supermarkets has implemented a comprehensive rewards program for its valued customers. ‘‘We run Point Scheme, Discount Voucher Book, and Reference Discount schemes for our customers,” says Samarth.

Under its Point Scheme, customers accumulate points with each purchase, which can later be redeemed for exciting rewards, fostering a sense of loyalty and appreciation. The Discount Voucher Book provides customers with exclusive vouchers, unlocking discounts on a range of products and enhancing their overall shopping value. Additionally, the Reference Discount initiative encourages customers to refer friends and family, rewarding both existing and new customers with special discounts

These initiatives are designed not only to express gratitude to the loyal customer base but also to create a dynamic and engaging shopping experience that goes beyond the transaction, fostering lasting connections with the brand.

Introducing New Brands and Products

In addition to serving its clientele, the retailer is dedicated to promoting emerging brands. Across its three stores, the retailer consistently endeavors to introduce new brands and products. This process is dynamic, with the retailer actively pursuing opportunities to enrich the shopping experience through innovation and the continual expansion of its offerings with these new brands.

Best Basket’s commitment lies in ensuring that every addition to their shelves not only meets customer demand but also brings tangible benefits to their overall shopping journey. ‘‘We encourage brands to boost their sales and enhance mutual success by distributing samples to customers and deploying promoters for their products. Active participation in the brand’s events is the cherry on top, creating additional opportunities for increased brand visibility and engagement,’’ says senior Bhusare.

He further adds, ‘‘There are many instances where we have partnered with brands like Gits, Suhana, Prabhat ghee, Tirumalla, among others for schemes and activities in food festivals. We have also partnered with newspapers like Lokmat where we offered lucky draw coupons,’’ thus promoting products and emerging brands.

Customer-Centric Strategy

The foundation of the retail business’s success lies in its operational framework. In line with this principle, Best Basket has implemented a margin structure model customized to the diverse product categories offered to customers. In high-demand categories such as Grocery and Oils, the margin structure is intentionally kept at a minimal and reasonable level to ensure competitive pricing and affordability.

Furthermore, Big Basket stores have introduced a Quantity Purchase Scheme (QPS) aimed at delivering added value to customers. This scheme incentivizes bulk purchases by offering special discounts and incentives to customers making larger quantity purchases.

According to Samarth, Director of Best Basket, “Our strategic approach not only prioritizes customer affordability but also rewards those who opt for bulk purchases, fostering a mutually beneficial relationship with our valued patrons.”

Using Technology to Enhance Operational Efficiency

Technology serves as the cornerstone of  every successful retail enterprise. Through the strategic utilization of advanced technology and sophisticated software, Best Basket has markedly improved the efficiency of its inventory management and sales operations. The seamless integration of modern technology has enabled instant access to every store within the network, streamlining operations across the board.

The implementation of technology has enabled Big Basket stores to generate detailed reports for any location, facilitating centralized control and decision-making from a single point. Beyond inventory and sales management, technology has significantly improved the overall sales services, streamlining processes and providing real-time insights. This commitment to technological advancement ensures that the supermarket not only meets but surpasses customer expectations while maintaining operational excellence across all aspects of its business.

Packaging Strategy

Through careful observation across its store locations, the retailer has identified a notable trend in the grocery category. Customers exhibit a clear preference for private-labeled packaged groceries over loose items, which have become particularly evident in the post COVID-19 period. Recognizing the significance of packaging, the brand has recently adopted a strategic shift in its packaging strategy.

‘‘We recently changed our packaging and ventured into new categories like exotic chocolates and imported dry fruits at our stores. After COVID, customers have become more health and hygiene conscious and are looking for packaged food items,’’ says Samarth. The brand has refined its packaging strategies to address the distinct needs of each store. This tailored approach guarantees that their grocery selections align with customer preferences, thereby improving the overall shopping experience.

Roadmap for the Future

With a forward-thinking approach, Best Basket is poised for expansion in the years ahead by building upon its successful store-chain model. “We aim to open 15 new stores by 2030,” confirms Samarth. Additionally, the brand is exploring the franchise model to expand its presence even further.

To enhance operational efficiency and strengthen their infrastructure, Big Basket is strategizing to establish a centralized warehouse. This facility will function as the logistical hub for all their stores, with the primary objective of optimizing supply chain management. This initiative aims to ensure streamlined operations, efficiency, and consistency in product availability throughout their growing network.

In alignment with its commitment to innovation, the brand is also exploring opportunities for the establishment of a dedicated company for Packaged Groceries. These initiatives reflect the brand’s dedication to offering specialized and curated grocery options, adding a new dimension to its product portfolio, and strengthening its position as a strong retailer in the retail industry.

The post Best Basket’s Strategies for Success in Modern Retail appeared first on Business of Food.

The store’s evolution from a kirana to a supermarket, expanding to towns like Shirpur and Dondaicha, exemplifies agile growth and quality commitment, showcasing the promising future of grocery retail in tier IV towns.

In 2020, the family achieved a milestone with a successful 9,000 sq.ft. supermarket in Shirpur, which generates Rs. 8 lakh in daily sales. Inspired, they transformed their original 1,000 sq.ft. Kirana store in Sindkheda into a modern 4,500 sq.ft. supermarket. The strategic move increased sales from Rs. 1.5 lakh to over Rs. 3.5 lakh daily, contributing to combined annual earnings of Rs. 35crore. Buoyed by their supermarket success, the Bhowanis have now launched their most ambitious project – a 13,000 sq.ft. hypermarket in Dondaicha– and plan to open seven new supermarkets in the next five years, signaling a positive trend for grocery retail growth in smaller Indian towns.

M.D. Bhojwani was once a thriving vegetable vendor in the small town of Sindkheda, which comes under Dhule district of north Maharashtra. He operated a prosperous business specializing in the transportation of chillies, potatoes, and various other vegetables throughout the region. Business was good and the Bhojwani family lived a contented life, hoping to expand their transport fleet and scale up the business.

At a time when the family’s business was doing well, it faced a devastating setback due to an unfortunate turn of events. On 31st October 1984, then Prime Minister Indira Gandhi was gunned down, which sent shockwaves reverberating across the country. In no time, riots and mayhem broke loose across different parts of the country, resulting in widespread loss of lives and property.

Caught in the pincer of violence was Bhojwani’s transport fleet, and in no time the family had lost all its commercial assets. “Our trucks used for transporting vegetables were destroyed and the entire business came crashing down. We had nothing left and stared at an uncertain future,” recalls Rohit Bhojwani, son of M.D. Bhojwani, and Partner, Jaylaxmi Super Market.

Opening a Kirana Store for Survival

A meeker spirit would have crumbled under the weight of the tragedy. But the senior Bhojwani was made of sterner stuff and refused to give up. Finding himself broke and penurious, he hustled around to set up a small grocery shop that opened in 1986. “My father picked up the courage to put back together the broken pieces of our lives by opening a small general provisions store in Sindkheda, measuring less than 1,000 sq.ft.,” says Rohit.

The small store was named Jaylaxmi Provisions Store and it stood as a tenuous connection between the Bhojwanis’ broken past and their hopes for the future. Through diligence, perseverance, grit, and forbearance, the senior Bhojwani succeeded in building a business that became the family bulwark for the next 34 years. Until as late as 2020, Jaylaxmi Provisions Store stood as a testament to the patriarch’s visionary acumen and his ability to navigate the capricious currents of the business world. Through economic ebbs and flows, the shop proved to be a bastion that not only weathered the storms but also served as the crucible in which the family’s dreams for the future were forged. It was within the modest confines of Jaylaxmi that the Bhojwanis found solace, stability, and the foothold on which they constructed a bridge from a fractured past toward the expansive horizons of their collective aspirations.

“For a small provincial town whose population even today is about 40,000 people, our store succeeded in building a sizable catchment of customers in Sindkheda. My father applied his business acumen to develop and build customer relationships and excellent customer service for the store, which quickly earned the reputation for serving quality products at very fair prices,” remarks Rohit who honed his retailing acumen through hands-on apprenticeship, actively assisting his father at the shop.

“I learnt that gaining credibility and earning the trust of customers in this trade can happen only by offering a consistent quality of products, offering personalized service, and by building a bond with the customers. These lessons were the foundational principles of our food retailing business,” avers Rohit. He adds that his father swore by those principles and they helped to build a vast fund of goodwill for Jaylaxmi Provisions Store in Sindkheda.

“In the small town, largely undeveloped, our kirana store stood out for offering first rate quality products at fair prices. In the ensuing years, after 1986, as the place started to see pockets of development, our store became something of a landmark and attracted customers from all parts of the town. People looking to buy quality products at a good price came to our shop to buy stuff and our business that had collapsed earlier not only revived in a new avatar but also began flourishing,” says Rohit.

By embracing adaptability and incorporating forward thinking business strategies, Jaylaxmi Provisions Store established a reputation for local engagement and personalized service. Leveraging its inherent strengths, the store not only withstood challenges but also experienced accelerated growth, successfully expanding its custom and business. Reflecting on this evolution, Rohit mentions, “As our provisions store’s business flourished, my father began exploring avenues for a transition into modern trade, recognizing it as the logical progression for the business.”

A New Journey in Modern Trade Begins

By 2020, Jaylaxmi Provisions Store was ready to shed its old skin and don on the garb of a fully modern supermarket. The year saw Jaylaxmi flaunt its modern supermarket sinews when it branched into the neighboring Shirpur town, some 20 odd kilometers from Sindkheda. The new and gleaming 9,500 sq.ft. Jaylaxmi Super Market opened to a rousing welcome from the public. “Shirpur is a more developed town than Sindkheda and is known as an educational hub in the region. Its over a lakh population has a fairly large proportion of educated professionals who took an instant liking to our new store,” says Rohit, who has taken on the mantle of being a Partner with his father acting as Managing Director of their new retail establishment.

With a wider and more urban-centric customer base to tap into, Jaylaxmi Super Market started to receive good customer traction from Day 1. “The first month itself saw sales averaging Rs. 3 lakh on a daily basis. Today, its sales are more than twice those numbers, reaching Rs. 8 lakh per day currently,” says Rohit. He alludes the impressive sales numbers to the mix of attractive schemes and offers that they put in place to excite and ignite the interest of customers.

Pulling Out All the Stops to Make the Supermarket Click

“As the first large self-service modern supermarket in Shirpur, people were an expectant lot and there was much anticipation built around the store. Thankfully, we too were prepared on our part to open on a high note, and more than meet the expectations of shoppers,” recounts Rohit. Much before the Bhojwanis opened their first modern supermarket in Shirpur, father and son had put their concerted efforts to learn the ropes of modern trade and acquire the learnings and knowledge that a modern trade business demands.

“We scoured many parts of Maharashtra and places elsewhere to learn firsthand how supermarkets were being run and which were the winning concepts and schemes that were a hit. Looking at the customer demographics in Shirpur, we tailored and customized many of those things into our own supermarket format, and luckily they hit off with our customers,” says Rohit.

Rohit recalls getting in touch with Chetan Sangoi,founder of Sarvodaya Supermarket in Mumbai, who is widely acknowledged as a guru and mentor to many young food and grocery entrepreneurs. “Chetan sir distilled this mantra into us: If you can keep the quality of your products inviolable and impart a great customer service to your customers that help them to maximize their benefits, they will always remain in your corner, come what may.”

Sandeep Sukhwani, a close relative of the Bhojwani family and also a Partner at JaylaxmiSuper Market, says that supermarkets have the ability to offer customers a multitude of incentives, discounts, cash-backs and gift coupons that kirana stores can’t. “So, we brought some of the most attractive offers that we had observed being run by successful supermarkets and put them into play at our store. For example, our store provides an array of incentives and discount coupons across various purchase tiers: Purchase goods worth Rs. 1,000 and receive complimentary gifts equivalent to a specified value; Spend Rs. 2,000 and avail free gifts with a determined value attached; Buy products worth Rs. 5,000 and secure guaranteed gifts commensurate with the expenditure. All these schemes and offers have been designed to benefit the customers and encourages them to shop generously at our store,” remarks Sandeep.

Likewise, at Jaylaxmi, a continuous initiative is in place, assuring customers who consistently patronize the stores throughout the entire year to earn a reward bonus comprising a free purchase commensurate with their 12-month spending average. Several comparable schemes are also consistently operational, allowing customers to optimize the value derived from their expenditures. Concurrently, an unwavering commitment to product quality remains a cornerstone, serving as the foundation for both maintaining and expanding a loyal customer base.

From a Kirana to Three Supermarket Stores

Buoyed by the success of their Shirpur supermarket, the Bhojwani family decided to remodel its original 1,000 sq.ft. kirana shop in Sindkheda as well. “Two years ago, we rebuilt our original store into a 4,500 sq.ft. supermarket and we have been pleasantly surprised by the turn of events. As the original shop already had its catchment of loyal customers, the shop’s makeover into a modern supermarket has been wholly welcomed in a city where finding a supermarket is still a rarity,” enthuses Rohit.

“We have seen sales at our modern Sindkheda supermarket rocket and a 100% growth jump from the time when it still was a counter-top shop. Daily sales in those days were about Rs. 1.5 lakh, which has now more than doubled to over Rs. 3.5 lakh,” adds Rohit.

With healthy earnings coming from their two operational supermarkets, the Bhojwanis were emboldened to venture further. This February month, the Bhojwanis have launched their third and most ambitious retail project to date: a 13,000 sq.ft. hypermarket in another nearby town of Dondaicha, which is at a distance of 20 km from Shirpur and Sindkheda. “Dondaicha has a similar customer profile to that of Shirpur but was lacking in quality retail spaces. We have now filled that gap by opening our hypermarket here and we hope it to do well just like our two older stores,” says Sandeep.

He observes that there’s a palpable shift in consumer preferences even in the smaller towns of India. “Despite the novelty of the self-service concept, these regions are witnessing a gradual evolution in market dynamics, with customers displaying a growing affinity for the convenience and diverse offerings provided by grocery supermarkets.”

Economic development in small towns has led to an increase in disposable income and changing aspirations. “Consumers in these areas are now seeking a modern shopping experience that aligns with urban standards. Grocery supermarkets, despite being a new concept, cater to these changing aspirations by offering a contemporary and well-organized retail environment,” he adds.

Unlocking the Secret Sauce of SupermarketSuccess

As local, regional, and national retailers vie to seize the prospects presented by modern trade in smaller towns, the grocery retail sector in these parts is also witnessing an intensified competitive landscape. “Quite a few other regional players have now entered the markets of Shirpur, Sindkheda, and other neighboring towns, including national players like Reliance SMART, but the business at our stores continues to grow,” says Rohit.

“Our top priority, given our foregrounding in kirana retail, is to first implement those things that offer maximum value and benefits to the customers. I am a firm believer that if you offer and pass on the maximum benefits to customers, nobody can stop a supermarket to be successful and become a darling of their customers,” he adds.

In catering to a middle-income customer base, Jaylaxmi prioritizes high-volume sales over higher profit margins. Rohit explains, “In these smaller, agriculturally influenced areas, residents are particularly value-conscious. Offering substantial discounts is crucial to meeting their needs. Notably, many teachers frequent our stores, and there’s a local saying that a store frequented by teachers is considered favorable by the general public.” Through strategic bulk purchases from FMCG brands, Jaylaxmi secures favorable discounts, which translates into savings for customers and contributes to an expanded customer base.

“To get customer footfalls at your store is an art on which any retailer has to work relentlessly on, and most of these new stores that opened up seeing our success, failed to work on that recipe. They thought that Jaylaxmi is seeing such great footfalls and we will be able to replicate that but it did not work out that way…so at least 3 newly opened stores have shuttered and while 3-4 such stores are still hanging on, we keep ourselves focused on delivering the best service to our customers and we are convinced that we will continue growing despite the entry of national players like Reliance SMART in the fray,” says Sandeep.

He notes that numerous retailers succumb to challenges amid the fervent pursuit of growth and customer acquisition. The pitfalls often involve indiscriminate discounting, leading some to compromise on quality and customer service in their quest for rapid expansion. “By consistently offering superior quality items, a retailer not only stands out but also fosters customer loyalty, elevating the shopping experience from transactional to exceptional. It is therefore critical for a retailer to acquire excellence in product sourcing and assortment, which can help build an enduring reputation for the retailer and position him as a trusted purveyor of top-quality goods in a market saturated with choices,” observes Sandeep, adding that a discerning retailer not only anticipates the ever-evolving demands of the market but prioritizes the curation of product assortment that transcends expectations.

Sandeep asserts that one of the key factors contributing to Jaylaxmi’s market success is the steadfast commitment to rigorous sourcing standards and the delivery of premium-quality products. The retailer sources spices and dry fruits from the APMC market in Vashi, Mumbai, which is the No. 1 sourcing market for quality dry grocery products in the region. “When it comes to other dry grocery products like pulses, we prefer sourcing them directly from the mills in Jalgaon, which is known as the hub of pulses in the whole of Maharashtra. We have a very professional team of suppliers to supply products of a specific quality that we choose and this way we have been able to maintain quality consistency of our products throughout the year.”

“Thanks to our painstaking efforts in sourcing only the best quality products and curating assortments that meet the essential and aspirational needs of customers in the region, Jaylaxmi Super Market remains the No. 1 food and grocery retailer in all the three places that we currently operate in despite many other retailers entering the fray in the past couple of years,” avers Rohit.

Introducing Non-Food Categories to Push Footfalls and Sales

With over 7,000 SKUs, Jaylaxmi stores stock and sell products in the entire supermarket category range. “Except for fresh produce and milk, our merchandise is spread across 29 product categories in both food and non-food. Oils, ghee, groceries, dry fruits and masalas contribute about 50% of our overall sales. In terms of profitability, dry fruits and masalas are the biggest contributors offering over 20% margins,” says Sandeep.

To accelerate footfalls and sales, Jaylaxmi also stocks a wide array of products in the nonfood category, which includes steel utensils, crockery, kitchenware, plastics, and home linen, among others. “One notable inclusion is the introduction of toys category in our stores. Many in the supermarket trade warned us not to foray into the toys section as toys are damage-prone and have a high incidence of spoilage,” shares Rohit.

Recognizing a discernible gap in the market, Jaylaxmi perceived a genuine necessity to incorporate toys into its product offering. Observing a scarcity of stores specializing in toys, the retailer believed it was essential to address this unmet demand and provide a diverse range of products to its customers “To avoid loss from damage, we source toys from only quality manufacturers in both Mumbai and Delhi and we have seen a huge response for this section at our stores,” reveals Rohit adding that the two stores in Shirpur and Sindkheda attract daily footfalls of at least 1700 customers on average.

About a year ago, Jaylaxmi also introduced the apparel category, apart from other new product categories like ladies’ purses, sports goods, and stationery. “All these new categories are doing very well and encouraged by the response we have recently added the footwear category in our stores as well,” informs Rohit.

Managing Retailing Challenges in Tier IV Towns

Getting on-time regular delivery from top FMCG brands poses a real challenge for retailers in Tier III-IV towns. “It takes a lot of convincing on our part to get the FMCG brands to respond. But once they are convinced about robust sales, they take notice and start distributing the products. Rural markets and rural consumption is critical to the business of major FMCG companies and they too are trying to push and bolster their distribution network in India’s hinterland,” points out Sandeep.

But supply chain issues continue to linger in some form or the other. “Securing timely deliveries of newly-launched products to our stores poses an ongoing challenge. Numerous FMCG distributors exhibit reservations about the market viability of their products in rural areas, hindering the establishment of supply lines to stores in these regions. Some distributors express reluctance in serving a limited number of stores in rural areas, questioning the effort involved. Additionally, challenges related to transport and road infrastructure further diminishes the enthusiasm of several FMCG distributors to supply products to stores in rural markets,” observes Sandeep.

He says that many top FMCG companies have still not been able to establish their distribution reach in these Tier IV towns, which poses a challenge for supermarket retailers here. “We maintain continuous communication with these FMCG companies, presenting our sales figures and footfall data, hoping to persuade them to extend their distributorship to our locations. However, this remains a persistent challenge for retailers in our region. Thankfully, we’ve have been able to successfully convince major FMCG companies like HUL and P&G to distribute their products through our stores. Looking ahead, we aim to replicate this success with other FMCG majors as they too are actively seeking opportunities to boost their sales.”

A Roadmap to Open 10 Supermarkets in North Maharashtra

Looking ahead into the future, Rohit says that Jaylaxmi Supermarket will soon open its fourth branch in Shahada, also in north Maharashtra and some 50 km away from Sindkheda. “Over the next 5 years, we plan to have at least 10 supermarkets under the Jaylaxmi Super Market banner.” Even as it is working on expanding its store network, Jaylaxmi is also focused on strengthening its tech infrastructure to enhance its customer outreach. “Currently, we are working on launching our own supermarket app, which is expected to become operational in the coming months. This will help to widen our customer reach and complement our in-store sales. As of now, we offer free home delivery service and accept orders on WhatsApp,” informs Rohit.

Emphasizing the integral role of technology in the seamless operation of contemporary supermarkets, Rohit underscores the indispensability of technological support, regardless of a retailer’s experience or operational efficiency. “In the current retail landscape, successful operation without leveraging technology has become an impractical proposition. Technology helps you to clock better and faster growth and in reducing shrink and other forms of wastage. All our stores are currently running on the latest ERP software, which has helped us to manage our inventory very smartly and replenish our stocks in a very efficient manner. It helps us to monitor our sales and detect the slow-moving SKUs,” points out Rohit.

When asked to elucidate how aspiring entrepreneurs venturing into the food and grocery retail sector can establish a profitable and sustainable business, Rohit emphasizes the focus of supermarkets like Jaylaxmi on a business model emphasizing high sales with thinner profit margins. He notes, “Our success lies in this approach, although there are supermarkets that prioritize higher profit margins despite narrower sales. The choice depends on the market dynamics and the entrepreneur’s capacity to efficiently manage their chosen model.”

Reflecting on his earlier remarks, Rohit underscores the proliferation of new stores in Shirpur after the inauguration of Jaylaxmi Super Market. However, he highlights a notable contrast as many of these establishments experienced closures within months, while Jaylaxmi has been able to sustain consistent growth in its business.

“Bringing the ethos of customer service, quality offerings, and developing credibility and trust with customers is a tall order but being focused on those values have helped us to swim the competitive waters of food and grocery retail,” signs off Rohit.

The post Small Town, Big Dreams: Jaylaxmi Super Market’s Evolution from Kirana to Modern Supermarket Chain appeared first on Business of Food.