UniverCell to retail low-cost feature-rich mobile sets

The retailer plans to bring features like colour display, FM and camera, which usually available in mobile phones upwards of Rs 3,000 in established brands, in better-priced mass market handsets. It also plans to bring in dual SIM-card phones, currently available only in very high-end phones, at the same price points .

"Once we are through testing these products for quality, we will start test-marketing them. If customer response to these products is good, we may even consider selling them under the UniverCell brand name," UniverCell managing director D Sathish Babu told ET. Now, 60% of the mobile market is dominated by phones priced below Rs 2,000. Phones costing upwards of Rs 10,000 contribute just 1%, he added.

The Chennai-based retailer is also eyeing the eastern markets, especially Calcutta, where it will set foot in the first quarter of the coming fiscal. "We are planning 25 stores in the city in the first phase. Apart from West Bengal, we will open outlets in Orissa and Chattisgarh. In the second quarter we may also look at the west," Mr Sathish said.

UniverCell has 199 stores across the south, 80% of which are in tier-II towns. It is getting ready 25 stores and they will be up and running in a couple of weeks. Babu, who had pioneered the multi brand mobile retail store concept said his venture has been on an expansion spree in the last couple of years and is now stabilising operations. He is waiting for prices to rentals to fall further before signing up more stores.

The retail chain expects to close this fiscal with a turnover of Rs 500 crore and plans to double it in FY10. It stood at Rs 350 crore at the end of March 2008.

UniverCell also has tie-ups with Nokia, Motorola and LG to sell some of their international models exclusively at its stores. Most of these are variants of existing models and come with some value addition. "Usually accessory bundling is done by the brands themselves. Sometimes we bundle these models with connection. With such products we are able to deliver value to our customers as we can negotiate with the manufacturers over price," Mr Sathish said.

Hotspot and Mobile NXT new strategy

Organised mobile retailers like HotSpot and Mobile NXT have found a new way to deal with competition from mom & pop stores: make neighbourhood retailers their franchisees to sell mobile phones and accessories under their brand.

Currently, more than 70% of the mobile retail sector is unorganised and market analysts believe there is a huge potential for the franchise model. “The return on investment (RoI) for the franchisee is somewhere around 60-65%.

It will allow us to expand our presence and enter deep into the cities,” says HotSpot CEO Sanjeev Mahajan. HotSpot has recently adopted the franchise model with 25 stores operational in Delhi alone and has plans to expand to 100 such stores besides the 400 company-owned, company-operated (co-co) stores across the country.

“Customer experience and pricing is the crux of this business. Therefore, we provide stock management, professional training for the in-store sales team, and an after-sales customer support at all our franchised stores. The role of the franchisee is restricted to the operational level,” says Mobile NXT CEO Vijay Menon.

Mobile NXT adopted the franchise model in tier-II and tier-III cities across India in 2007. The company operates more than 55 stores all over the country.

Mr Menon, however, concedes that the franchise model in mobile retailing is difficult to adopt since there is no uniqueness in the product and the return on investment is not very attractive.

That is why players like Subhiksha and Mobile Store are refusing to join the bandwagon. They believe the franchise model is not profitable at this stage, given the low profit margins and low market penetration.

“We are concentrating on a co-co model based on pricing. We don’t think franchise model is the way to go, since the business already accounts for low margins; expanding through franchise would dent the margins further,” says Subhiksha president-marketing Mohit Khattar. Subhiksha operates the largest chain of mobile stores with around 1,300 stores all over the country.

Mobile Store CEO Rajiv Agarwal also feels that the franchise model in the current scenario does not hold much ground. “There is the risk of our brand value being diluted. This is a business where you cannot allow your service proposition to get diluted,” says he. Mobile Store has significant presence in the country with more than 800 stores.

However, RPG Cellucom head-marketing Biswajit Pandey feels that with improving margins and marketing strategies, the franchise model may take the front stage in future. The company currently operates over 25 stores.

“It’s a win-win situation since it allows rapid expansion and presence in local areas for the franchiser and an opportunity for the traditional retailer to enter the newfound trend of organised retail. Moreover, the operational costs in case of franchise model is low in comparison to co-co model, giving both the parties a better RoI,” says global management consulting firm Technopak chairman Arvind Singhal.

Planet M Retail to launch 250 such cafe-in-stores in the next three years

The Planet M, India’s one of the biggest Mobiles, Music, Entertainment and Lifestyle Chain and a part of the 1500 crore Videocon Retail Ltd. with more than 150 stores across 42 cities broadened its horizons and unveiled India's first Cafe in store at Planet M outlet, Banjara Hills, Hyderabad. Café eARTh, the place to relax and refresh at its Planet M - a feel good and indulgence store was formally launched late evening on Sunday by Mr. Saurav Dhoot, Director - Videocon Retail Ltd.It is based on the lines of affordability, feel good and indulgence. Planet M plans to launch 250 such cafe-in-stores in the next three years across the country.

Videocon, which acquired Planet M from media conglomerate Bennett, Coleman and Co in 2007, has so far launched 80 revamped Planet M stores. It plans to take the number of outlets to 1,500 from the present 200 in the next three years. Planet M will soon be offering company-labelled telecom products including mobile pouches, phone insurance and extended warranties. It is in talks with a few general insurance companies. Apart from retailing mobiles and IT products, the company has plans to launch laptops, mobile phones and gaming solutions under the Videocon brand, informed Mr. Dhoot.

Videocon Retail garnered revenues of Rs 800 crore from Next and Rs 100 crore from Planet M last year. With the enhanced retail presence, this year's revenue contribution from the two formats will be Rs 1,500 crore and Rs 400 crore respectively, Mr. Dhoot said.

The only Café where, art takes the centre stage Café eARTh is the platform for young budding artists to portray their talent to all. The theme of the Café is to bring art close to the people. Everyone is gifted with the sense of appreciation towards art. We hardly get the opportunity to visit galleries very often. And not every talent can be exhibited in the galleries. Hence, Café eARTh is a perfect blend for both the artist as well as the art lovers. The ambience is such that you are in the most relaxed state of mind with ample time in hand.

Café eARTh offers you the perfect combination to sooth all your five senses.The comfortable interiors, display of art, music in the café, the aroma of freshly baked pie and a tantalizing sip of hot cappuccino is something one can’t resist. The menu ranges from submarines to wraps and pizzas for vegetarians and non-vegetarians. And if you are in a mood to nibble on something there is always brownies, pies and pastries. The list to sip on is endless as well. Tea, coffee, smoothies, juices, and granitas you name it and Café Earth has it.

Hyderabad alone has a total of 8 Planet M stores. Planet M has now taken the initiative to cater to the vast mobile using masses offering a variety of swanky mobiles to choose from. alone has a total of 8 Planet M stores. Planet M has now taken the initiative to cater to the vast mobile using masses offering a variety of swanky mobiles to choose from.

The Planet M story began with a single swanky store at Times of India Building, V.T. As the demand for the Planet M way of entertainment grew, this retail store grew in numbers, dotting the skyline of the major cities and sweeping across the vibrant satellites and mini-metros too.

Videocon for Rs 800-crore retail spread

Videocon Retail, a part of Venugopal Dhoot-promoted Videocon Industries, plans to invest Rs 800 crore to expand its electronic retail format, Next Retail, and Planet M, the mobile, music, entertainment and lifestyle chain, in the next three years, said Saurav Dhoot, director, Videocon Retail.

Videocon, which acquired the leisure format from media conglomerate Bennett, Coleman and Co in November 2007, has so far launched 80 revamped Planet M stores.

The company plans to take the number of outlets to 1,500 from 200 at present in the next three years. Simultaneously, the number of Next outlets will be increased to 650 from 400.

Dhoot said the company was witnessing 40 per cent revenues from sale of mobile phones and accessories at Planet M. It is looking at offering company-labelled telecom products, including mobile pouches, phone insurance and extended warranties. It is in talks with a few general insurance companies.

Apart from retailing mobiles and IT products, the company has plans to launch laptops, mobile phones and gaming solutions under the Videocon brand, he added while declining to divulge further details.

Meanwhile, Videocon Retail on Sunday launched the country's first cafe-in-store Cafe eARTh, a platform for young budding artists to portray their talent, at its Planet M store in Hyderabad. "Our idea is to launch 250 cafe-in-stores in the next three years," Dhoot said.

Videocon Retail garnered revenues of Rs 800 crore from Next and Rs 100 crore from Planet M last year. With the enhanced retail presence, this year's revenue contribution from the two formats will be Rs 1,500 crore and Rs 400 crore respectively, he said.