Raghav Agarwal, director, V-Bazaar Retail talks about the key strategies the brand adopts to compete in the competitive value-retail segment
New Delhi: Armed with over two decades of retail experience across – northern, eastern, and western India, Hemant Agarwal and Rahul Jhunjhunwala started V-Bazaar in May 2016 with a store in Lakhisarai, Bihar. Over the years, the brand has become one of the largest networks of retail outlets stretching across northern India. V-Bazaar believes in operating in untapped markets, providing customers with a vast range of value retail products in a modern retail setting, which gives the feel of a large retail mall.
Focusing on the ‘Daam Kam Fashion Hardam’ motto, V-Bazaar targets the expanding ‘aspiring and middle class’, offering more than 60 thousand products across apparel, home furnishing, footwear, accessories, personal care, and packaged food products.
With 97 operational stores across six states (Uttar Pradesh, Bihar, Madhya Pradesh, Orissa, West Bengal, and Jharkhand) and 74 cities pan India, V-Bazaar has a total retail area of more than 5.8 lakh sq. ft. Its average store size is 7,800 sq. ft. V-Bazaar aims to cross the 100-store mark by the year-end by opening 10 more stores, covering 7 states with an operating retail space of over 8 lakh sq. ft.
In an exclusive interaction with IMAGES Retail, Raghav Agarwal, Director, V-Bazaar Retail talks about the key strategies the brand adopts to compete in the competitive value-retail segment.
What drives your product and pricing strategy?
We keep a close eye on the market and pay attention to the popular trends as per customers’ needs. It is essential to strike a balance—offering variety without overwhelming shoppers. We segment our products into simpler categories to make browsing easier. As far as pricing is concerned, there are a few approaches we adopt. One is cost-plus pricing, in which we calculate all the costs involved (materials, labour and overheads) and then add a fixed percentage of profit. It’s a straight forward method.
We also keep an eye on our competitors—competitor-based pricing—to ensure we are in the right ballpark. Two is value-based pricing. Here we focus on categories, which consumers deem valuable. If we can offer quality products at a reasonable price, we are hitting the sweet spot. Customer feedback is the ultimate guide for us. Adaptability is key. We stay nimble, adjusting our strategies based on what our customers need and want.
What measures do you take to maintain product quality while keeping prices low?
Maintaining product quality while keeping prices low is a delicate balancing act for any retail business. We are picky about our suppliers and choose partners who offer quality materials at competitive rates. Negotiating bulk deals helps us keep costs in check without compromising on quality.
Efficiency is our mantra. From production to distribution, we fine-tune every step. Less waste and overheads translate into more value for our customers. We focus on what matters the most. No unnecessary frills. By emphasising essential features, we create products that off er quality without breaking the bank. By conducting rigorous checks at every stage to detect defects, we ensure consistency.
Bigger batches mean better prices. Spreading fixed costs across larger volumes keeps our offerings affordable. We pass the benefits of the cost efficiency we achieve by following quality standards and exclusive vendor relations on to our customers.
What differentiates you from other value retailers?
We differentiate our products through our private labels where we try to portray the brand story, which aligns with the trends.
How do you enhance the shopping experience?
Optimised store layouts, which are thoughtfully designed with interactive elements and product trials contribute to customer satisfaction. We engage the customers through various sensory experiences such as in-store radio and fun activities. We show appreciation and address concerns after the sale through loyalty points and assured gifts.
How do you use technology in your operations and customer engagement?
We leverage various operational tech tools like ‘Wavity’ and ‘Wooqer’ to fl oat plans and log queries from the front-end operations team. We leverage technology like data analytics and Business Intelligence to enhance customer service and engagements to drive growth and efficiency.
Can you share examples of recent technological innovations your company has implemented?
We are implementing a technology solution in our warehouse such that goods
in stores would be auto replenished, which would increase efficiency.
How do you gather and utilise customer feedback to improve your services?
We regularly collect customer feedback through in-store customer interactions and surveys and through popular social media platforms. We also analyse customers’ comments and reviews on social sites. We analyse the customer journey and try to use this feedback to make necessary adjustments to our plans and strategies.
What strategies do you use to build and maintain customer loyalty?
We have a loyalty program that helps customers earn loyalty points for every purchase. We also off er special discounts and assured gifts periodically. We do community engagement activities in tier 2 and 3 cities by arranging local activities like dance and drawing competitions.
