The Godrej Group’s gourmet foods retailer is integrating its premium persona across all touch points of the brand.
Six-year old retailer Godrej Nature’s Basket is donning a new image. A new logo unveiled at the brand’s latest store in Mumbai’s Juhu on Wednesday will be the most visible change, and will appear in in-store promotions, shopping bags, newsletters and everything else the brand touches.
The revamp is part of an orchestrated plan to bring to fore Godrej Nature’s Basket’s evolved proposition from a fresh fruit and vegetable retailer, to a fine food (gourmet) purveyor. “We have reached a level of expertise and premium-ness and believe the timing is right to communicate our positioning through a new brand identity,” says Mohit Khattar, managing director, Godrej Nature’s Basket.
Godrej Nature’s Basket operates in a segment that is in its nascency in India – retail gourmet foods. According to a Technopak report, the gourmet foods (premium-quality speciality food) segment in India is estimated at Rs 6000 crore, a small fraction of the total food and grocery market which is pegged at Rs 1,350,000 crore. This segment includes gourmet food and wine consumed by hotels, imported food items sold through wholesale markets and retail outlets.
The category is seeing double digit growth (25-30 percent) in the last few years. Given the demographic this segment caters to, and the premium pricing associated with imported products, it is no surprise that 60 per cent of the market is located in the top 10 cities.
“These products, which have traditionally been stocked at the odd cottage emporium, fruit mart, bakery and upmarket provision store, is slowly finding its way into organised retail,” says Saloni Nangia, vice president and head (retail), Technopak India.
Until now, most players have restricted operations to their region – Le Marche operates seven stores in Delhi and Gurgaon; Ruci and Idoni two retail outlets in Hyderabad, whereas Nuts and Spices with 14 stores is a key player in the South. Adding to the gourmet basket is a host of retailers like Spencer’s Retail and Food Bazaar where fine foods occupy a small part of their product shelves.
HyperCity had launched GourmetCity as a stand-alone initiative in 2009, but shut down operations after a year. Now, it retails gourmet foods through its big-box format.
A deeper change
Khattar believes the revamp will allow the brand to continue on its growth momentum, as it attempts to consciously integrate the premium persona across all touch points of the brand.
With an annual turnover of Rs 60 crore, Godrej Nature’s Basket has experienced 70 per cent year-on-year growth over the last couple of years.
A chic space with good quality lighting, primped up shelf display and trained food experts will be the prototype for every new store that Godrej Nature’s Basket opens. Currently, the brand operates a chain of 12 stores in Mumbai and Delhi but plans to double the footprint in the next two years.
The brand’s immediate agenda is a store in Pune slated to open in the next fortnight and two stores by March, in one of the key metros.
Previously, the stores occupied 1000 square feet space, but going forward the brand will invest in stores that are spread across 2500-3000 square feet. “The strategy is to ensure presence in premium residential catchments (which offer convenience) rather than malls,” says Khattar. Currently, each store requires an average investment of Rs 75 lakh (which includes fixtures, equipment and computer systems) and takes less than two years to break even.
Nature’s Basket works with over 350 distributors and importers who directly supply to the store, helping keep costs and pilferages low. Currently, 85 per cent of the retail chain’s shelf space is dominated by imported foods. Fresh fruits and vegetables are also part of its offerings and serve as initial footfall drivers to the store.
Differentiated experience
Another tall task which Godrej Nature’s Basket faces will be providing a unique retail experience, which resonates with the premium shopper. “This is particularly important for gourmet retailers where the target audience is more discerning and knowledgeable,” acknowledges Khattar.
The brand has initiated the process and will station food experts in each of the stores.
Given the attention-to-detail and careful handling that the business requires, Nature’s Basket will not expand the franchise way.
Another unique challenge that the brand will face is competition from unorganized retail where a quick turnaround time in home delivery helps bowl the consumer over. Khattar agrees: “We want to sharpen our skills in home delivery. For now, 90 percent of our deliveries happen within 60 minutes, whereas 10 per cent still go beyond the stipulated time.”
With food stores adopting a broader menu, consumers will be spoilt for choice.
