gitanjali lifestyle - retail venture concept note
TRANSCRIPT
Gitanjali Lifestyle – New Retail VentureApril 2009
Strategy Team
Agenda
• About Gitanjali Group
• The New Retail Venture
– Concept Overview
– Layouts and Options– Layouts and Options
– Commercial Terms
– Proposed Next Steps
2
Gitanjali is integrated player in jewellery segment having presence across
the value chain with significant focus on manufacturing and retailing
Gitanjali Group – At glance
Company Overview
• Established in 1966, Gitanjali is one of the largest and fastest growing integrated diamond
and jewellery players in India
• It has sophisticated and scalable diamond and jewellery manufacturing facilities in India
and China
• The group has accesses to about 1,200 retail points in India, 150 outlets in the U.S., 107 in
Japan and 33 in ChinaJapan and 33 in China
• With significant focus on retail and distribution network to drive growth
• Gitanjali is among the few jewellery companies in India that have fully integrated
operations. Its supply chain infrastructure, diversified and popular brand portfolio, and
retail penetration are matched by very few companies in the industry
• From being a diamond processing company, Gitanjali has come a long way in steadily
shifting its business profile to jewellery manufacturing and retail
• Gitanjali continues to look for opportunities and alliances to gain a bigger share of the
market and utilize its manufacturing capabilities to capture a larger share
Source: Company Data 3
Easy Elegance � Diamond studded branded jewellery at reasonable prices
� Pan-India retail presence with approximately 350 outlets
� Awarded Superbrand status in 2004 by ICSC
The Fire Within � Was originally introduced by DTC
� Premium work wear collection
The Enchanting Enigma � Includes entire range including bridal jewellery
� Awarded Superbrand status in 2004 by ICSC
Partners for Life � Brand focus on couples
� Covers entire product range including bridal jewellery
Gitanjali brands in India have strong pull – targeting across the categories
and segment
Associated Gitanjali Brands
� Covers entire product range including bridal jewellery
The Art of Beauty � Designs combine international quality and Indian values
The Art of the Different � Gold jewellery brand under D’Damas
� Offers contemporary and modern designs in gold jewellery
The Wedding Collection � Plain gold as well as diamond jewellery for weddings
Pure. Proud. Precious � Gold jewellery aimed at Indian wedding market and other similar events
Giantti Unique International
Allure
� High-end jewellery brand
Lifestyle Redefined � Offers branded jewellery, watches and other lifestyle accessories
� Source of “Mined in Canada” branded diamonds
� Canadia branded diamond jewellery sold by retailers in the U.S., Canada, U.K. and Australia 4
The company has dramatically increased its number of retail doors
across the globe
Global count of stores
19941994 19991999 20032003 20052005 20062006 20072007 20082008
10 doors
100
doors
250
doors
400
doors
506
doors
550
doors
774
doors
5Source: Team analysis
First Gili branded
counter India
First Giantti
store China
First Nakshatra
store India • First Asmi store India
• First multi-brand outlet India
• First Sangini store India
• Acquisition Samuels USA
First D’damas
store India
19941994 19991999 20032003 20052005 20062006 20072007 20082008
• Acquisition Rogers USA
First Gili stand
alone store India
•The above numbers do not include sales through other retail doors (B2B).
•Stores include Gitanjali Group and affiliiates
Agenda
• About Gitanjali Group
• The New Retail Venture
– Concept Overview
– Layouts and Options– Layouts and Options
– Commercial Terms
– Proposed Next Steps
6
The new retail concept offers Gitanjali’s retail expertise combined with
national and international branding experience
Concept Overview (1/2)
The new retail
concept offer by
Gitanjali
• Gitanjali, being a successful jewellery retailer with national and
international brands, is looking forward to extending its retail and
marketing expertise to complement its product categories
Concept
Overview
• Existing 10 departmental stores in 9 cities scalable upto 60 stores in
next 5 years
• Mid-sized stores with average of 19,000 sq ft
Source: Company Data; A.T. Kearney
• Mid-sized stores with average of 19,000 sq ft
• Located on high-streets in upcoming towns and cities
• Product categories include apparels, jewellery, lifestyle products,
accessories, cosmetics and perfumes
• Target customer segment are sec A and B
• Store layout and interiors designed by leading Indian design house
and architects
• Revenue sharing model for national and international brands
7
Driven by critical success factors, sizable opportunity exists for mid-sized
modern retail venture in tier 2 and tier 3 cities
Concept Overview (2/2)
Opportunity of
mid-sized
organized retail
venture in tier 2
and tier 3 cities
• Opportunity exists in midsized segment with premium branded
categories in tier 2 and tier 3 cities with discretionary income
• Organized retail is expected to grow at 25-30% in next 5 years
• Large branded players are likely to dominate all categories and
formats
• MBOs are currently more viable than EBOs, particularly in non-metro
locationslocations
Critical Success
Factors
• Pull to drive in footfalls
• Advertising and marketing support
• Competitive advantage for:
o Location
o Loyal customer segment
o Format (availability, accessibility, size, merch. mix and layout)
• Presence of prominent brands
• Experienced management team and trained staff
Source: Company Data; A.T. Kearney8
Unique and seamless shopping experience is backed by company’s
proposition to its customers and partner brands
Value Proposition
Value Proposition
for Customers
Full line departmental
store
Widest assortment
Seamless shopping
experience
Unique departmental
store concept
Mens, kids and women wear, lifestyle and
jewellery products
Destination for jewellery and apparels
Ambiance, well groomed staff, adequate
customer circulation space, easy entry and exit
House >100 national and international brands
Wide range of price, product and brands
Value Proposition
for Brands
Strong and prominent
visibility
High footfalls and
conversion
First mover advantage in
upcoming cities
Extensive marketing
support
Well known retail brands
Ready locations in 10
cities
Key market areas/
locations
Revenue Sharing Model
Source: Team Analysis9
On competition mapping, Gitanjali lifestyle store will have first mover
advantage in most of the locations with unique positioning
First Movers Advantage1
Branded
categories –
Value to
Premium
Gitanjali
Lifestyle ���� ���� ���� ���� ���� ����
Central
Mix of
branded and
private label
ranging from
value to
Trends
Pantaloon���� ���� ����
value to
premium
���� ���� ����
Shoppers
Stop ����
Lifestyle����
Dominated by
private label
ranging from
value to
premium
Westside���� ���� ����
Globus���� ���� ���� ����
Karol Bagh
(Delhi)
Rajori Garden
(Delhi)
Kanpur Indore Gwalior Guwahati
1: Currently mapped to 6 location to be implemented in 2009, remaining 4 location are to be implemented in 2010-11
Source: Team Analysis 10
Pre
miu
mLu
xu
ry
Se
gm
en
tati
on
Gitanjali is taking the mid sized departmental stores to premium and
branded categories
Store positioning
1 cm = 40,000 sq ft (approx.)
Private Label Branded
Va
lue
Pre
miu
m
Se
gm
en
tati
on
Source: Team Analysis11
Merchandising Map
A comprehensive merchandising mix and categories are targeted towards
premium to super premium space
Value Premium Super Premium
AccessoriesWatches and bags
Cosmetics and perfumes
Writing Instrument
Fashion jewellery, silverware
JewelleryGold and diamond jewellery
Fine jewelleryFine jewellery
Premium watches
Women WearEthnic wear, bridal collections
Sarees and dress material
Casual and western wear
Made to order
Mens WearFormal and semi-formal
Casual wear, ethnic wear
Made to order
Kids WearApparel, toys
Accessories
Source: Team Analysis12
TierMPV
RankingCity State
Area
(sq ft)
Floor
plate
Target
SegmentCatchment
1 2Karolbagh1
(Delhi)NCR 20,000 5 A & B
• Key shopping destination with strong
residential catchments
• Destination for bulk buyers from
neighboring states
• High footfall and conversion1 2
Rajouri1
(Delhi)NCR 20,000 4 A & B
2 11 Kanpur1 UP 18,500 4 B • Prime market area
Opportunity to penetrate in tier 2 and tier 3 cities targeting A and B
segment consumers
Location Assessment
2 11 Kanpur UP 18,500 4 B • Prime market area
2 17 Indore1 MP 16,315 2 A & B• Prime hotels and residential area,
located in the heart of the city
3 37 Gwalior1 MP 16,000 3 A & B • Prime residential area
3 32 Guwahati1 Assam 20,000 4 A & B • Located in main market
3 34 Agra2 UP 20,000 5 B• Located in main market close to
prime residential & commercial areas
3 55 Raipur2 MP 14,000 2 B• Well known complex located in main
shopping area
3 49 Allahabad2 UP 30,000 5 B • Prime location in the city
3 64 Cuttak 2 Orissa 13,035 2 B • Located in main shopping area
1: To be rolled out in 2009
2: To be rolled out in 2010-1113
Geographical Map
Geographical spread indicates a predominance in the Central and Eastern
with opportunity for infrastructure in Western and Southern India
Rajouri Gardens, New
Delhi **
Karolbagh, New
Delhi ** Allahabad
Gwalior Guwahati
Agra
Cuttack
Indore
Raipur
Kanpur
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There are substantial growth opportunities backed by Gitanjali’s
commitment towards national expansion
Growth Potential
2009 2014
Gitanjali aims at multilevel expansion reaching out to emerging towns and cities in India.
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Agenda
• About Gitanjali Group
• The New Retail Venture
– Concept Overview
– Layouts and Options– Layouts and Options
– Commercial Terms
– Proposed Next Steps
16
Stores Images
Gitanjali Lifestyle Store concept…
Note: Layouts are subject to final changes and approvals
Source: Team Analysis17
Lower ground floor
Destination for kids wear, toys and infants’ section
Note: Layouts are subject to final changes and approvals
Source: Team Analysis18
Ground floor
Destination for fragrances, cosmetics, watches, sunglasses and fashion
accessories
Note: Layouts are subject to final changes and approvals
Source: Team Analysis19
First floor
Destination for gold and diamond jewellery, branded precious jewellery,
silver jewellery and silver wear
Note: Layouts are subject to final changes and approvals
Source: Team Analysis20
Second floor
Destination for women ethnic wear, bridal collections, sarees, dress
material, casual and western wear
Note: Layouts are subject to final changes and approvals
Source: Team Analysis21
Third floor
Destination for men’s formal, semi-formal, casual wear and ethnic wear
Note: Layouts are subject to final changes and approvals
Source: Team Analysis22
Agenda
• About Gitanjali Group
• The New Retail Venture
– Concept Overview
– Layouts and Options– Layouts and Options
– Commercial Terms
– Proposed Next Steps
25
Proposed next steps
Next steps includes meeting the key members and the operations team
for further discussion…
Bhaskar SharmaAsst. Vice President
Gitanjali Lifestyle Limited
B-10, Laxmi Tower, BKC, Next to ICICI Bank,
Bandra East – Mumbai 400051
(O) +91-22-40102121 (M) +91-9967653043
• Schedule meeting with key representatives
• Discuss the detailed layout
• Organize the site visits(O) +91-22-40102121 (M) +91-9967653043
Sadanand PawarPresident
Gitanjali Lifestyle Limited
B-10, Laxmi Tower, BKC, Next to ICICI Bank,
Bandra East – Mumbai 400051
(O) +91-22-40102121 (M) +91-9987593820
• Agree on terms of trade
• Sign the MOU followed by the agreement
•
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Thank You!!Thank You!!
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