Toonz has retail chain for all the needs and occasions of kids, from 0 to 12 years will be adding 24 more stores in Financial Year 2017 – 18.
“Given our aggressive growth plan, we are looking at opening 100 stores in the next 3 years. We want to be a one stop solution for a childs needs. We are targeting Rs 100 crore turnover by fiscal 2018-19”, said Sharad Venkta, MD and CEO, Toonz Retail India Pvt. Ltd.
We are shaping our business well for profitability and sustainability. We are creating a model that gives sustained growth and optimises the funds. We shall look out for an opportunity to partner with a VC (venture capitalist) which brings in funds and adds value to our entire ecosystem. We are expecting to break even next year”, he further added.
Toonz mainly targets Tier II cities where it has 80 stores. “Tier II cities have a huge advantage in terms of real estate cost. The rentals in tier II cities are just a fraction of that in a metro or tier I cities. Even in a tier II city we ensure that the real estate cost does not go beyond 15 percent of the total cost. We do a market survey to understand whether the store has a sales potential six to eight times of the rentals”, said Sharad Venkta MD and CEO, Toonz Retail India. Usually a Tier II Store of Toonz breaks even in a quarter and tier I store in a year. It engages franchises for store expansion and follows a cost-sharing model.
Toonz is seeing 70% of the sales coming from repeat customers. “We keep up constant Communication with the customers not just during sales and promotional events, but even otherwise. We have a database of the customers and keep them updating about the products as the kid grows,”he added. According to him supply of kids products in tier II cities is limited.
The company has been clocking a sales growth of 20% and increasing the number of categories of accessories and apparels, it hopes a higher growth next year. The kidswear brand, which is planning to close the year with revenue of Rs 45 crore, is looking at two big sections right now – Infant range and Sports range.
“We are expanding our Infant range as the category has a lot of potential. We are creating a complete range of products – around 130 products – under the Wow Mom brand for infants, which includes products from the time the baby is born to the time baby turns 3. The second product category that we are entering into is sports and this will be for an older age group of kids,” revealed Sharad.
Under the Infant range the company will introducing products like baby snuggle wrap, double terry, hood toy, baby nappy, diaper bags, baby dry sheet, shorts and pyjamas, sleepsuit, baby Wrappers, net bed, carry cot, stallers, walkers, smittens, mother bags and hand plugs to name a few. Whereas the Sports range will include products like tennis ball, cricket ball and swimwear.