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Gitanjali Lifestyle – New Retail Venture

April 2009

Strategy Team
Agenda

• About Gitanjali Group

• The New Retail Venture

– Concept Overview

– Layouts and Options

– Commercial Terms

– Proposed Next Steps

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Gitanjali is integrated player in jewellery segment having presence across
the value chain with significant focus on manufacturing and retailing
Gitanjali Group – At glance
Company Overview
• Established in 1966, Gitanjali is one of the largest and fastest growing integrated diamond
and jewellery players in India
• It has sophisticated and scalable diamond and jewellery manufacturing facilities in India
and China
• The group has accesses to about 1,200 retail points in India, 150 outlets in the U.S., 107 in
Japan and 33 in China
• With significant focus on retail and distribution network to drive growth
• Gitanjali is among the few jewellery companies in India that have fully integrated
operations. Its supply chain infrastructure, diversified and popular brand portfolio, and
retail penetration are matched by very few companies in the industry
• From being a diamond processing company, Gitanjali has come a long way in steadily
shifting its business profile to jewellery manufacturing and retail
• Gitanjali continues to look for opportunities and alliances to gain a bigger share of the
market and utilize its manufacturing capabilities to capture a larger share

Source: Company Data 3


Gitanjali brands in India have strong pull – targeting across the categories
and segment
Associated Gitanjali Brands
Easy Elegance  Diamond studded branded jewellery at reasonable prices
 Pan-India retail presence with approximately 350 outlets
 Awarded Superbrand status in 2004 by ICSC
The Fire Within  Was originally introduced by DTC
 Premium work wear collection
The Enchanting Enigma  Includes entire range including bridal jewellery
 Awarded Superbrand status in 2004 by ICSC
Partners for Life  Brand focus on couples
 Covers entire product range including bridal jewellery
The Art of Beauty  Designs combine international quality and Indian values

The Art of the Different  Gold jewellery brand under D’Damas


 Offers contemporary and modern designs in gold jewellery
The Wedding Collection  Plain gold as well as diamond jewellery for weddings

Pure. Proud. Precious  Gold jewellery aimed at Indian wedding market and other similar events

Unique International  High-end jewellery brand


Giantti Allure
Lifestyle Redefined  Offers branded jewellery, watches and other lifestyle accessories

 Source of “Mined in Canada” branded diamonds


 Canadia branded diamond jewellery sold by retailers in the U.S., Canada, U.K. and Australia
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The company has dramatically increased its number of retail doors
across the globe
Global count of stores

774
550 doors
506
400 doors
250 doors
100 doors
doors
10 doors doors

1994 1999 2003 2005 2006 2007 2008

First D’damas First Giantti • Acquisition Rogers USA


store India store China

First Gili stand First Nakshatra


alone store India store India • First Asmi store India
• First multi-brand outlet India
First Gili branded • First Sangini store India
counter India • Acquisition Samuels USA
•The above numbers do not include sales through other retail doors (B2B).
•Stores include Gitanjali Group and affiliiates
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Source: Team analysis
Agenda

• About Gitanjali Group

• The New Retail Venture

– Concept Overview

– Layouts and Options

– Commercial Terms

– Proposed Next Steps

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The new retail concept offers Gitanjali’s retail expertise combined with
national and international branding experience
Concept Overview (1/2)

The new retail • Gitanjali, being a successful jewellery retailer with national and
concept offer by international brands, is looking forward to extending its retail and
Gitanjali marketing expertise to complement its product categories

Concept • Existing 10 departmental stores in 9 cities scalable upto 60 stores in


Overview next 5 years
• Mid-sized stores with average of 19,000 sq ft
• Located on high-streets in upcoming towns and cities
• Product categories include apparels, jewellery, lifestyle products,
accessories, cosmetics and perfumes
• Target customer segment are sec A and B
• Store layout and interiors designed by leading Indian design house
and architects
• Revenue sharing model for national and international brands

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Source: Company Data; A.T. Kearney
Driven by critical success factors, sizable opportunity exists for mid-sized
modern retail venture in tier 2 and tier 3 cities
Concept Overview (2/2)
Opportunity of • Opportunity exists in midsized segment with premium branded
mid-sized categories in tier 2 and tier 3 cities with discretionary income
organized retail • Organized retail is expected to grow at 25-30% in next 5 years
venture in tier 2 • Large branded players are likely to dominate all categories and
and tier 3 cities formats
• MBOs are currently more viable than EBOs, particularly in non-metro
locations

Critical Success • Pull to drive in footfalls


Factors • Advertising and marketing support
• Competitive advantage for:
o Location
o Loyal customer segment
o Format (availability, accessibility, size, merch. mix and layout)
• Presence of prominent brands
• Experienced management team and trained staff

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Source: Company Data; A.T. Kearney
Unique and seamless shopping experience is backed by company’s
proposition to its customers and partner brands
Value Proposition
Full line departmental Mens, kids and women wear, lifestyle and
store jewellery products
House >100 national and international brands
Widest assortment
Value Proposition Wide range of price, product and brands
for Customers Seamless shopping Ambiance, well groomed staff, adequate
experience customer circulation space, easy entry and exit
Unique departmental
Destination for jewellery and apparels
store concept

Revenue Sharing Model Well known retail brands

Strong and prominent Extensive marketing


visibility support
Value Proposition
Key market areas/ First mover advantage in
for Brands
locations upcoming cities
Ready locations in 10 High footfalls and
cities conversion

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Source: Team Analysis
On competition mapping, Gitanjali lifestyle store will have first mover
advantage in most of the locations with unique positioning
First Movers Advantage1
Branded Gitanjali
categories – Lifestyle      
Value to
Central
Premium

Mix of Trends
branded and
private label
Pantaloon
ranging from
value to
  
Shoppers
premium
Stop 
Lifestyle

Dominated by Westside
private label   
ranging from
Globus
value to
premium
   
Karol Bagh Rajori Garden Kanpur Indore Gwalior Guwahati
(Delhi) (Delhi)

1: Currently mapped to 6 location to be implemented in 2009, remaining 4 location are to be implemented in 2010-11
Source: Team Analysis 10
Gitanjali is taking the mid sized departmental stores to premium and
branded categories
Store positioning
Luxury
Segmentation
Premium
Value

Private Label Branded


1 cm = 40,000 sq ft (approx.)

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Source: Team Analysis
A comprehensive merchandising mix and categories are targeted towards
premium to super premium space
Merchandising Map
Value Premium Super Premium
Accessories
Watches and bags
Cosmetics and perfumes
Writing Instrument
Fashion jewellery, silverware

Jewellery
Gold and diamond jewellery
Fine jewellery
Premium watches

Women Wear
Ethnic wear, bridal collections
Sarees and dress material
Casual and western wear
Made to order

Mens Wear
Formal and semi-formal
Casual wear, ethnic wear
Made to order

Kids Wear
Apparel, toys
Accessories
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Source: Team Analysis
Opportunity to penetrate in tier 2 and tier 3 cities targeting A and B
segment consumers
Location Assessment
MPV Area Floor Target
Tier City State Catchment
Ranking (sq ft) plate Segment
Karolbagh1 • Key shopping destination with strong
1 2 NCR 20,000 5 A&B
(Delhi) residential catchments
• Destination for bulk buyers from
Rajouri1 neighboring states
1 2 NCR 20,000 4 A&B
(Delhi) • High footfall and conversion
2 11 Kanpur1 UP 18,500 4 B • Prime market area
• Prime hotels and residential area,
2 17 Indore1 MP 16,315 2 A&B
located in the heart of the city
3 37 Gwalior1 MP 16,000 3 A&B • Prime residential area
3 32 Guwahati1 Assam 20,000 4 A&B • Located in main market
• Located in main market close to
3 34 Agra2 UP 20,000 5 B
prime residential & commercial areas
• Well known complex located in main
3 55 Raipur2 MP 14,000 2 B
shopping area
3 49 Allahabad2 UP 30,000 5 B • Prime location in the city
3 64 Cuttak 2 Orissa 13,035 2 B • Located in main shopping area

1: To be rolled out in 2009 13


2: To be rolled out in 2010-11
Geographical spread indicates a predominance in the Central and Eastern
with opportunity for infrastructure in Western and Southern India
Geographical Map

Rajouri Gardens, New


Delhi **

Karolbagh, New
Delhi ** Allahabad
Agra

Gwalior Guwahati

Indore Kanpur

Cuttack

Raipur

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There are substantial growth opportunities backed by Gitanjali’s
commitment towards national expansion
Growth Potential

2009 2014
Gitanjali aims at multilevel expansion reaching out to emerging towns and cities in India.
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Agenda

• About Gitanjali Group

• The New Retail Venture

– Concept Overview

– Layouts and Options

– Commercial Terms

– Proposed Next Steps

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Gitanjali Lifestyle Store concept…

Stores Images

Note: Layouts are subject to final changes and approvals 17


Source: Team Analysis
Destination for kids wear, toys and infants’ section

Lower ground floor

Note: Layouts are subject to final changes and approvals 18


Source: Team Analysis
Destination for fragrances, cosmetics, watches, sunglasses and fashion
accessories
Ground floor

Note: Layouts are subject to final changes and approvals 19


Source: Team Analysis
Destination for gold and diamond jewellery, branded precious jewellery,
silver jewellery and silver wear
First floor

Note: Layouts are subject to final changes and approvals 20


Source: Team Analysis
Destination for women ethnic wear, bridal collections, sarees, dress
material, casual and western wear
Second floor

Note: Layouts are subject to final changes and approvals 21


Source: Team Analysis
Destination for men’s formal, semi-formal, casual wear and ethnic wear

Third floor

Note: Layouts are subject to final changes and approvals 22


Source: Team Analysis
Agenda

• About Gitanjali Group

• The New Retail Venture

– Concept Overview

– Layouts and Options

– Commercial Terms

– Proposed Next Steps

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Next steps includes meeting the key members and the operations team
for further discussion…
Proposed next steps

• Schedule meeting with key representatives Bhaskar Sharma


Asst. Vice President
bhaskar@gitanjaligroup.com
• Discuss the detailed layout
Gitanjali Lifestyle Limited
B-10, Laxmi Tower, BKC, Next to ICICI Bank,
• Organize the site visits Bandra East – Mumbai 400051
(O) +91-22-40102121 (M) +91-9967653043

• Agree on terms of trade


Sadanand Pawar
President
sadanand@gitanjaligroup.com
• Sign the MOU followed by the agreement

Gitanjali Lifestyle Limited


B-10, Laxmi Tower, BKC, Next to ICICI Bank,
Bandra East – Mumbai 400051
(O) +91-22-40102121 (M) +91-9987593820

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Thank You!!

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