‘IT products will contribute 45 pc to Croma’s revenues’

Ajit Joshi

Much like consumer electronics, IT products have been gaining mass acceptance. Increase in education and income levels have been the reasons behind the upswing and this phenomenon is not limited to Metros but has spread to smaller cities as well. This is clearly evident from our first store. We have dedicated nearly 40 percent of the 20,000 sq ft space of our Juhu (Mumbai) store to display the IT products.

Do you also expect equivalent revenues from IT products?

We have the broadest range including all major brands like HP, HCL, Microsoft, Lenovo, Acer, Apple, Toshiba, Canon, Samsung, Lexmark, Kodak, Sony, Logitech, and Imation. It's difficult to provide sales estimate, however if you count digital lifestyle products like digicams and mp3 players and other convergence products, we should do close to 45 percent of our overall business from IT products in the first year itself.

What are the expansion plans for Croma?

We will cover the Western region in the first phase by setting up six additional stores by March 2007. In a month's time we will open our second store in Malad.

Malad is an emerging hotspot in Mumbai due to several BPO firms in the area and because of the new residential colonies being constructed.

The next Croma outlets will be in Navi Mumbai, Thane, Pune, and two stores in Ahmedabad. In the next fiscal (2007-08), we will expand to other regions and plan to have 30 stores. By FY2010 we will have more than 100 stores covering 20 major cities.

Which cities do you have on your radar?

The cities and number of stores per city will be based on the business potential. We will analyse various factors to identify target locations. For instance, we expect bigger opportunities in Ahmedabad and hence we are planning to have two stores there.

What is the USP of Croma vis-à-vis pure IT retailers and channels?

Several IT retailers and channels are focused only on price as the differential. But our focus will be on providing a complete buying experience.

Our commitment to IT is not confined to showcasing of products. We have appointed experienced retail-sales personnel to man these counters. They help consumers understand their IT requirements and offer purchase guidance on the type of product to buy.

People wanting to buy a gaming console can spend time playing games for as long as they want before taking a decision. A prospective laptop buyer can use and compare various models spending ample time. We have also deployed Wi-Fi connectivity at Croma. We will follow the same model with commitment at every new store we open, no matter in which city it is.

How has been the initial response for IT products?

We have been running several schemes and already have a tie-up to offer consumer loans. The initial response is encouraging as we have started selling laptops, desktops, printers, and PDAs in good numbers.