KOLKATA: South Korean consumer electronics biggie Samsung has unleashed an aggressive drive to team up with large organised retailers like Reliance Digital, Tata-controlled Croma, the Future Group, Metro Cash & Carry and Hypercity to crank up topline growth. The company has set an ambitious target of earning 10%-12% of its turnover by calender 2010 from this large-format retail channel. Talking to ET, Mr Pradeep Tognatta, director (sales), Samsung India Electronics, said: “We have decided to partner with the large format retail chains. We’ve tied up with top retailers, some of them specialise purely in electronics.
There are more tie-ups in the offing. We are using the specialised stores to create a complete brand experience — creating LCD walls and putting up special displays for certain focus categories.” Samsung will shortly tie up with Kirby, a Kuwait-based company, that is setting up large retail stores at Noida and Gurgaon. It is also about to clinch deals with Dubai’s Jumbo group that has plans to set up retail stores in Delhi and the national capital region (NCR). The deals with the large-format retail chains do not have any extra frills. “It is the same vanilla deals that we enter into with others in the trade, namely the dealers and distributors,” he said.
In calendar 2007, the company expects large-format retailing to contribute 3-4% of its turnover. “Given that large-format retailing is at a nascent stage, contribution levels to our consumer electronics business this year will be around 3-4% of projected turnover of $1.2 billion. We are upbeat on the new emerging retail formats, especially the specialised electronics stores which represent a strong business opportunity. By Year 2010, our business from large-format stores is projected to contribute 10%-12% of our consumer electronics business,” Mr Tognatta said.
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