Central Mall + Brand Factory – Plan $100 mn expansion

As the economy turns around, retailers are gearing up to meet the demand of the Indian consumer who is just introduced to the concept of organized retailing.

Pioneers of Indian retail, Pantaloon / Future Group is planning to add 25 new Brand Factory stores and ten more central malls across India within the next 12 months.

Brand Factory commands investment of Rs 1000 to Rs 1500. This formats revenue is expected to grow from current previous year Rs 250 cr to Rs 1500 cr by FY11.

Central Malls cost the company ~Rs 200 to Rs 2500 / sft to setup. Central Malls collectively had topline of Rs 750 cr and is expected to zoom to Rs 2500 cr.

Brand Factory and Central Mall – Business Models:

Central Mall is the Lifestyle retailing arm of Kishore Biyani for the Indian consumer. However, the reduction in Fashion cycles leaves the company and Brand owners with huge unsold inventory. Bingo! thus came the idea of Brand Factory to Kishore Biyani and this store sells all the unsold inventory offering huge discounts. They target consumers between the age group of 17 to 32.

Both of them spend around 3% on Advertising & Marketing while they get 35% of their sales in the ongoing festive shopping season between Ganesha Festival and Christmas.

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