Google News
spot_img

Key focus on tier 2, tier 3 for V2 Retail’s growth: Director Akash Agarwal

Must Read

The New Delhi-based fashion retailer is targeting to launch an additional 35 stores in 2024, many of which will be in non-metros

Bengaluru: Fashion and lifestyle retail chain V2 Retail’s story traces back to its roots as Vishal Megamart, which was founded in 2001 by Ram Chandra Agarwal. In 2011, Agarwal sold the venture for Rs 70 crore to TPG group while it had almost 180 stores.

Utilising the proceeds from the sale, Agarwal embarked on a fresh venture in the same year, laying the groundwork for what would evolve into V2 Retail.

From establishing its first store in Jamshedpur, spanning over 10,000 sq. ft. of real estate, today, the company has expanded to encompass more than 110 retail outlets comprising over 11 lakh sq. ft. of retail space across 17 states.

“The shift from Vishal Megamart to V2 Retail was not just a name change, but a strategic move to reposition the brand in the market,” said Akash Agarwal, whole-time director of V2 Retail and son of the founder.

Market demand

Since its inception, V2 Retail has continued to expand its presence across India, offering a range of products across categories such as apparel, accessories, home furnishings and more.

“Among the merchandise, kurtis are the most sought-after product category, capturing significant demand in the market,” said Agarwal.

From a regional perspective, the company observes heightened demand predominantly from the middle-class population.

“While analysing the market trends, we have observed a notable increase in demand coming from urban areas with a growing middle-class population. Additionally, we have seen a surge in online sales, indicating a shift towards e-commerce channels,” he added.

Tech in business

V2 Retail leverages technology tools like point-of-sale (POS) systems, inventory management software, and e-commerce platforms to enhance operational efficiency and streamline its retail processes.

“Our primary strategic goals for the year centre around product development, improving customer experience, and optimising operational efficiency to fuel sustainable growth and enhance profitability,” said Agarwal.

“By harnessing data analytics and customer relationship management systems, we can gain valuable insights to tailor marketing strategies, fostering personalised approaches that drive sales,” he added.

Employee engagement

V2 Retail currently employs approximately 5,000 individuals across various roles and responsibilities within the organisation.

“To bolster employee engagement, we ensure consistent communication through team meetings and individual sessions, offer avenues for professional development and advancement, acknowledge and incentivise employee contributions and cultivate a positive workplace culture that prioritises open communication and teamwork,” he said.

Financial figures

As per the latest financial report, V2 Retail’s turnover stands at Rs 1,000 crore. Agarwal claims that the company has indeed experienced a notable increase in revenue compared to the previous year.

“Several factors have played a crucial role in sustaining this healthy growth momentum, including strategic expansion efforts, marketing initiatives, optimised operational processes and a focus on customer satisfaction,” he added.

Expansion plans

The company’s projections for 2024 include the launch of an additional 35 stores. The average size of a V2 Retail store typically ranges from 8,000 to 10,000 sq. ft.

The company’s location selection process involves a thorough analysis of various factors such as demographics, footfall potential, competition and market trends.

Currently, the retailer is focusing on expanding its presence in tier 2 and tier 3 cities where it sees significant growth opportunities and untapped market potential. While metros remain relevant, Agarwal believes that tier 2 and tier 3 cities offer promising avenues for expansion and are key areas of focus for our future growth trajectory.

Latest News

51% of buyers frustrated by poor customer service: Report

51% of respondents highlighted poor customer service as the leading issue concerning kitchen appliancesNew Delhi: Brands dealing in...