Shoppers' Stop to Consolidate Pvt Labels

Shoppers' Stop will be focussing on consolidating its private labels -- Kashish, Stop, Carrot and Life, to fight competition from the increasing number of retail majors.

"Currently 15 to 17 per cent of total sales in Shoppers' Stop are from the private label, and we aim at increasing it to at least 20 to 25 per cent in the coming couple of years," Mr Ajay Kelkar, senior manager marketing services of the Rs 500 crores turnover company, told ET.

The focus is on building a strong internal design team, strengthening the product offering, and attracting value-brand seeking customers to the private label. While well-known designer Priyadarshini Rao has been roped in to head the design team for the private labels, we are initiating loyalty building programs to attract and retain customers, he said.

Also in focus is consolidation of the private label products through tie-ups with suppliers of value for money fabrics. As first of such efforts, the store is launching next week about 1,600 garments in the Kashish brand of women's suits made of fabric sourced from APCO, a weaver's cooperative in Andhra Pradesh.

"The tieup with APCO for Rs 3.36 lakhs worth fabric is for the first batch of apparel, and the sourcing will be on a recurring basis. We are also looking at similar tie-ups with more such suppliers, including government cooperatives elsewhere in the country, which will strengthen the profile of our private label collection," a company representative said.

"With this small effort, we will be revitalising Andhra's weavers segment which is facing a sad plight. We sell over 5,000 units of salwar kameez and we will try to make the garments made of APCO fabrics at least five per cent of this segment, Mr B S Nagesh, MD and CEO of Shoppers' Stop said following the launch of the "BUY and FLY to the 7 Wonders" festival in Hyderabad.

The scheme enables two lucky customers to win an all-paid trip to the seven wonders of the world, and 26 other couples to visit one wonder of the world each, besides prizes like gold coins on offer. The company is spending over Rs 4 crores on the schemes spread over 101 days.

The store expects sales worth Rs 100 crores during the festive season due to the scheme, and 2.5 to 3 million customers across the chain, Mr Kelkar said.