CRN Network, January 16, 1600 hrs
Delhi-based Zest Systems which ventured into retail about a year back with the launch of a multi-brand retail outlet in Delhi called EHuts has big plans for retail.
After being in corporate reselling for nearly 18 years, Rajeev Mehta, CEO, Zest decided to venture into retail for two reasons. “We were seeing changes in the corporate buying patterns with many customers looking at opex models. Secondly, we realized that after 18 years in the IT business we had developed great vendor relationships and also had access to the best supply chains to start a new venture.”
Today Zest has three stores in Delhi under the brand of EHuts, and Mehta plans to launch eight more over the next 12-18 months across the NCR.
“Having great relations with HP, we ideally wanted to launch HP exclusive retail outlets, but there are already HP stores in the areas which we targeted,” explained Mehta. EHuts sell laptops and accessories from brands as Apple, HP and Dell, along with mobile phones and accessories from Apple, BlackBerry and Samsung. “We have also got a wide range of tablets from Apple and Acer in our stores.”
Mehta says that he spent around Rs 40 lakh on the rentals, inventory, interiors and initial launch of each store.
According to Mehta, 25 percent of the revenue comes from accessories that contribute nearly 75 percent of the bottomline.
He says that in each locality where he has set up a store there is stiff competition from LFRs. “However, we have created a shopping experience that is as good as that offered by any LFR. Customers are discerning; they will always buy from the place where they get the best deal, which includes service.”
Mehta admits that online retailers are a bigger threat, and is planning an e-commerce portal to compete with them. |