Naaptol makes offline foray, to invest Rs 10 crore
, ET Bureau|
Updated: Feb 12, 2018, 03.43 PM IST
MUMBAI: Joining the growing omni-channel wave, home-shopping company Naaptol has earmarked Rs 10 crore for 100 stores over the next year. This comes even as the Mumbai-based company has opened its first store in Thrissur and is on course to open 4 more stores by March 2018.
“We have been getting a lot more demand than what we can serve just on the television medium, so spreading offline made sense. We will look at how trends evolve through our 5 stores by March and then plan the rollout for the next leg of our offline expansion,” said Manu Agarwal, founder and chief executive of Naaptol.
The next 4 stores will be opened in Indore, Hyderabad, Ahmedabad and Jaipur.
Naaptol is looking to keep its costs on the capex to the minimum and has hence, adopted a franchise model for its offline expansion strategy.
Agarwal believes the upsell opportunity in the offline channel could be a huge fillip to both Naaptol’s volume growth and its customer base which he hopes to double from 10 million currently within a year.
“In the next 3-4 years, we are looking at about 500 stores and at that point, the offline channel will accrue what we currently earn - monthly revenues of about Rs 200 crore,” Agarwal told ET.
Naaptol expects the offline channel to form almost 30% of its revenues in the next 3-5 years growing much faster than its e-commerce channel which contributes to only 2% of its revenues currently.
“We have been getting a lot more demand than what we can serve just on the television medium, so spreading offline made sense. We will look at how trends evolve through our 5 stores by March and then plan the rollout for the next leg of our offline expansion,” said Manu Agarwal, founder and chief executive of Naaptol.
The next 4 stores will be opened in Indore, Hyderabad, Ahmedabad and Jaipur.
Naaptol is looking to keep its costs on the capex to the minimum and has hence, adopted a franchise model for its offline expansion strategy.
Agarwal believes the upsell opportunity in the offline channel could be a huge fillip to both Naaptol’s volume growth and its customer base which he hopes to double from 10 million currently within a year.
“In the next 3-4 years, we are looking at about 500 stores and at that point, the offline channel will accrue what we currently earn - monthly revenues of about Rs 200 crore,” Agarwal told ET.
Naaptol expects the offline channel to form almost 30% of its revenues in the next 3-5 years growing much faster than its e-commerce channel which contributes to only 2% of its revenues currently.
