Shoppers Stop was a forerunner in India's retail boom. They have developed from a sole 372sq.m retail in 1991 to 86 locations in 40 Indian cities now. Through constant advancement, the company is primed to have great potential.
Well with the assistance of renowned and key allies, it'll always strive to develop with its users by offering trendy and modern items that are up to world standards while being economical.
To sustain long-term client happiness, they've assured that the brand and shopping experience throughout all of their brands is not only appealing but also provides complete delight. It'll be reflected not just in their practices, but also in how they interact with their staff, partners, allies, and customers. So, Lets look at the business model of Shoppers Stop and how it makes money.
About Shoppers Stop
History of Shoppers Stop
Business model of Shoppers Stop
Top brands of Shoppers Stop
Other Initiatives by Shoppers Stop
Revenue Model of Shoppers Stop
Strategies of Shoppers Stop
Competitors of Shoppers Stop
Future Plans of Shoppers Stop
FAQ
About Shoppers Stop
Shoppers Stop is rich in the diversity of major global and regional brands for fashion, scents, home décor, etc. that serve the wants of the family. K. Raheja Corp. owns it, and it has 86 outlets in India's top 40 cities.
It seeks, sustains, and distributes new global apparel across the globe through its shop labels. It is traded on both the BSE and the NSE. Their drive on introducing international practices into retail and offering people a retail buying experience has propelled them to the top of its game. They are among India's leading departmental stores.
History of Shoppers Stop
The K. Raheja Corp. consortium built the basis for Shoppers Stops on October 27, 1991. With its lifestyle business, it's one of India's largest hospitality and realty firms, has achieved yet another feat.
It has evolved from a storefront to an apparel outlet for the entire family since its beginning. Shoppers Stop is now a trusted brand, renowned for its best quality merchandise and for delivering a comprehensive buying experience.
It has established itself as the finest ideal for the Indian retail chain, owing to its vast experience and repute. Its future growth strategy seeks to assist the firm tackle the issues of the retail sector even better than now.
Business model of Shoppers Stop
It operates departmental storefronts selling a variety of home and buyer goods. They operate on a franchise-based model. Its value proposition is to consistently enhance people's lives via style and a great buying experience. Family, children, the aged, and professionals are their key client segments. Its franchisees, such as Bobbi Brown, M.A.C., Mothercare, Hypercity, among others, are its key partners.
Its main tasks include promoting and driving sales ranging from designer fashion to décor. Staff and outlets on a-locations are vital assets for the organization. The client interaction occurs either online, on the user's chosen medium, or in stores.
Salaries, site development expenditures, raw material ordering costs, and advertising costs make up the cost pyramid. It makes money through its outlets and those of its franchisees. Users can take advantage of the First Citizen Loyalty Program.
Top brands of Shoppers Stop
HomeStop.
It started to meet the needs for a premium interior décor and lifestyle store. It equips you with a holistic home experience by offering the finest furniture, furnishings, and homewares. The product offering is updated regularly to add more styles.
HyperCity
It began its initial tour in Malad, Mumbai, on an area of 11,000 square meters, and received over a million visitors in its first 90 days. It's a spacious, stylish, and dynamic layout that functions as a true megastore, with a vast selection of high-quality goods at low cost in a range of subjects such as grocery items, furnishings, sports toys, and so on. It also provides various value-added services in one place, such as financing, ATM, and telecom services, to make the experience more diverse, efficient, and holistic.
Crossword
It was created in 1992 and bought out by Shoppers Stop in the year 2000. It is the largest edutainment store and a renowned name in its sector, offering the Indian client an unparalleled combination of books, songs, & films all under one roof. Its current success is the fruit of a mutual enthusiasm for and loyalty to its clients, firm, and allies.
Damini Bhandary
Other Initiatives by Shoppers Stop
The Shoppers Stop group has also formed alliances and joint ventures with the Switzerland-based nuance group for airline shopping, the UK-based home retail group for catalog shopping under the brand Argos, and the Australia-based LAI group for Timezone entertainment zones.
Revenue Model of Shoppers Stop
Royalty fees
Continuous royalties are their primary business. They set a fixed flat fee or % of the gross revenue of such units as a facet of the contract. Their successful franchisee partnership has led to increasing royalties.
Advertising Fees
Local, county and global marketing initiatives help them. The franchisee donates to a fund set up by the franchisor to cover ad spend, lowering their total cost, however, both sides gain from drawing loyal users to the franchise unit. Store exhibits and sponsors generate income-driven on how long the goods or sponsors' ads are marketed.
Employee Training
When an entrepreneur joins a franchise, they adopt the franchise's specific business model. The staff of the new company unit requires adequate training to conform with the way these things must be handled, and this earns income for Shoppers Stop via training fees, from which they gain.
Strategies of Shoppers Stop
Digitization
They rebuilt their website, built an e-commerce portal, and teamed with prominent software firms like Google. They advertised their stuff online through them. They then went on to the current shopping site and formed a partnership with big Indian e-retailers. It optimized its backend arrangement to deliver a consistent and cohesive service throughout its multiple channels.
They also developed in-store technology such as the Magic Mirror, which lets shoppers virtually try new things. It's one of their most notable creations.
Multi-channel
Customer care was the core of the apps that were developed. They have apps for managing inventory that tracks every step along the way from the producer to the customer.
Omnichannel
It combines several shopping channels, such as television, apps, sites, and phones. If you don't have cash or a credit card on hand, you can buy the same item online using their website or app, that was made to better the digital client experience.
Pricing strategy
It uses premium pricing, which sells different high-quality goods at a high cost.
Advertisements and promotion
With creativity as a driving force, they've rolled out a new philosophy of starting fresh to provide retail a fresh perspective. They strive to start fresh in terms of results, items, clients and thrive as a result of the many offers made available to users. A terrific addition to the company's name was an endorser or celebrity appeal to the business.
Damini Bhandary
Competitors of Shoppers Stop
Pantaloons:
It is a big rival of Shoppers Stop. It was created in 1997 and is headquartered in Mumbai, Maharashtra. Pantaloons, like Shoppers Stop, play in the apparel, and accessory market. It accounts for 296 percent of Shoppers Stop's sales.
Fbb
One of Shoppers Stop's main rivals is Fbb Online. It is a firm based in Mumbai, Maharashtra. It was started in 2001. Fbb Online, like Shoppers Stop, is in the logistics, Wholesaler, and Retail Distributor industries. Compared to Shoppers Stop, it has 4,782 fewer employees.
Max Fashion
It is regarded as one of Shoppers Stop's most formidable competitors. It is based in Bengaluru, Karnataka, and was formed in 2004. Max Fashion, like Shoppers Stop, participates in the logistics, Wholesaler, and Retail Distributor industry. It earns $350.2 million more than Shoppers Stop.
Future Plans of Shoppers Stop
Its goal is to become the leading player in India. The firm plans to deliver to India the greatest retail technologies, retail processes, and sales worldwide. As part of their growth strategy, they are currently adding 4 to 5 more outlets to their portfolio annually.
Abinaya Arangarajan
Conclusion
Shoppers Stop is the nation's first department store, and it serves to set the standard for all department stores nationwide. With new models and alliances, the firm is ready to reshape the Indian retail environment. However, their dedication to delivering only the best to its users will ensure that success does not come at the price of quality.
Due to its drive to analyze and serve the needs of all of its partners, as well as generate ideal retail models for Indian clients, it has developed to what it is today. The firm is in a big race to develop long-term models that will not only support development but also add value to shareholders.
FAQ
Who is the owner of Shoppers Stop?
K Raheja Corp. laid the foundation of Shoppers Stop on October 27, 1991.
Is Shoppers Stop an Indian company?
Yes Shoppers Stop is an Indian department store chain owned by K Raheja Corp.
What is the revenue of Shoppers Stop?
The revenue of Shoppers Stop is 1725.09 crores.
Author: Anamika Mahapatra
Source : https://startuptalky.com/shoppers-stop-business-model/
Date : 2021-11-22T03:31:35.000Z