Kitchen appliance brand TTK Prestige is betting big on online sales and expects its share to double to 8-10 per cent in the next three to four years.
“We are creating a fast developing infrastructure for e-commerce. Because of the new digital marketing opportunity, we are able to reach customers to the smallest town and now that most of India is digitally enabled, that is going to be a huge opportunity for us,” Managing Director, TTK Prestige, Chandru Kalro was quoted by PTI as saying.
At present, the online sales from the company’s website and the e-commerce platforms to which it sells directly, contribute to around 4 per cent of the sales.
“We think that e-commerce will grow. The convenience of shopping online or the amount of research a customer can do online, certainly tells us that online as a space will only grow for us. In the next three to four years we wouldn’t be surprised if it doubles its contribution to our total revenue. We are looking at eight to ten per cent,” he was quoted by PTI as saying.
The Bengaluru-based company has four fulfillment centres across the country and will increase it, if needed.
“As the need arises we will increase the fulfillment centres but we have to see with the GST coming in, what the implications are and how the logistics itself develops because of that within the country. On the need basis we will definitely add infrastructure,” he was quoted by PTI as saying.
TTK Prestige aims to have a turnover of Rs 5,000 crore in the next five years.
“We are looking at a topline of 5,000 crore in five years and that will be a combination of both organic and inorganic,” he was quoted by PTI as saying.
The company’s revenues for 2015-16 stood at Rs 1,559 crore.
Metros contribute to around 20 per cent of the company’s total sales, while tier II, III and IV cities contribute around 50-60 per cent of the sales and the balance comes from smaller towns.
The firm has identified tier V and VI cities, which it believes are the feeder towns into rural. It is in the process of appointing various dealers in those areas, he was quoted by PTI as saying.
The company, which has around 650 stock keeping units, is expecting a growth of 10 per cent this fiscal.