The Rajan Raheja-promoted Globus Stores Private Limited
is seeking to move away from a multi-branded retail chain
format, and instead implement its new strategy of becoming
a single store label brand.
a new strategy, Globus plans to launch smaller stores
under its private label.
90 per cent of its present merchandise already under the
Globus brand, the company now plans to convert the balance
into its private label brand as well, with Globus being
the mother brand, according to Vinay Nadkarni, CEO, Globus
Stores Pvt Ltd.
its single brand strategy, Globus plans to undertake a
brand build exercise by roping in actress Kareena Kapoor
as its brand ambassador.
to Akshay Raheja, vice-chairman,Globus Stores, "There
are higher margins in private labels, but at the same
time it is a harder model for retailers. It is going to
take additional effort to build the private label business,
but that is the new business strategy we have decided
for our stores."
designing as its USP, Globus plans to rely on its design
studio to create new fashions which target youth between
18 and 30.
has decided to create smaller format stores, especially
in the malls which are mushrooming across the country.
The company plans to have smaller stores with an average
floor space of 10,000 sq ft., and wants to position itself
as an ''affordably priced fashion brand''.
plans to invest Rs800 crore in the opening of new stores.
It intends raising money for the endeavour via internal
accruals, combined with a portion of debt and equity.
The company is not looking at a public issue.
company plans to allocate around 6 per cent of its turnover
towards advertising spends, with Kareena Kapoor replacing
actress Soha Ali Khan as the face of its brand.