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June 21, 2007

Interview with Subhiksha Retail's CEO

Economic Times has an interview with Subhiksha Retail’s managing director, R Subramanian.
Today, we deal across four categories — mobile phones, fruit and vegetable, FMCG & groceries and medicines.

...The consumer is going to come to us because our prices are cheaper. In order to provide the best prices to our consumers, we have to set up a large number of stores. Cheapest price is our positioning plank and that’s how we are different from other players. Look at FMCG, for instance. In this space, 95% consumers do repetitive buying. So it makes sense to target these household essentials in our discounting scheme. On the other hand, mobile phones are not repeat purchases. So costlier the phones, better the deals at Subhiksha.

...Our mobile shops will be in the malls. Otherwise, we’re pretty much following the stand-alone format because malls are not ubiquitous, and stand-alone stores pretty much echo our value-for-money positioning.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of information and networking services to the private equity and venture capital ecosystem in India. View free samples of Venture Intelligence newsletters and reports.