Mumbai : Planet Sports Pvt Ltd plans to enter into a 50:50 equity joint venture with PT Mitra Adiperkasa-a subsidiary of Indonesian Gajah Tunggal Group-to introduce 20 "Planet Sports" outlets, a multi-branded sports leisure and lifestyle store across major cities.The group introduced two retail outlets in Delhi in April 2000, which comprise a flagship store at Ansal Plaza, with an area of 4,000 sq feet and another outlet at Vasant Vihar with 2,500 sq feet. The company set up one outlet in Jaipur in April 2000 with 2,500 sq feet and one at Crossroads, Mumbai with an area of 2,500 sq ft this month.
PT Mitra Adiperkasa has pumped in Rs 5 crore this year for setting up outlets and plans to pump in an additional Rs 30 crore in setting up 20 outlets next year. Says Mr Shekhawat: "Major investment as far as retailing is concerned is in real estate. Retailing companies are realising that location is the major reason for retailing success and that it is very difficult to break-even."
Says Planet Sports country manager Mr Pradeep Shekhawat: "Planet Sports is a one-stop shop that offers the advantage of buying international brands at competitive prices backed with a warranty. It has been brought to India to fill the vacuum in the niche market of sports, leisure and lifestyle stores."Adds Mr Shekhawat: "Since we would be directly competing with the retail outlets of Reebok and Nike among other brands, our marketing strategy would be to create a niche position for ourselves in the retailing sector. Basic advertising strategy lies in positioning the store as the best golfing and footwear destination. The idea is to create a consumer base for buying all the brands including Adidas, Nike, Reebok."
Planet Sport's range includes `Nike', `Reebok' and `Adidas' for apparels, footwear and accessories; `Kipling' for adventure bags and backpacks; `Mizuno' for golf equipment, `Touredge' towards the lower end of the mid-priced segment meant for accessories and golf equipment, `Spalding' for balls, accessories and golf equipment distributed by Mayor international, among others.
"Women's apparel range goes up to Rs 1,700; featherlight sandals are priced from Rs 500 to Rs 1,700 and `Sketchers' light-weight fashion athlete footwear-targeted at the upper middle class-priced at Rs 4,000," adds Mr Shekhawat.
The current capacity for the outlet to stock the number of units is 1,600 stock keeping units (SKUs). Delhi and Mumbai being an upwardly mobile market, the number of SKUs is likely to increase depending on the market conditions, claims Mr Shekhawat.
Says Mr Shekhawat: "Planet Sports will be directly involved in the process of developing distribution and dealer network for Wilson in India. Brands like Converse and Speedo will be retailed exclusively through Planet Sports starting April."
He adds: "Apart from Wilson and other well-known brands, Planet Sports will be marketed by various exclusive distribution agreements. Although, the technology driven high-end products are directly imported from overseas, Planet sports offers products at competitive prices."
Apart from `Planet Sports', PSPL plans to set up a `Kidz Station' for stocking apparels, toys and accessories for kids in Mumbai next year. According to Mr Shekhawat: "Planet Sports has a strategic alliance with Pyramid at Crossroads in Mumbai. Our marketing strategy lies in having additional outlets of Planet Sports and Kidz Station together with Pymarid, in Mumbai."
Planet Sports Pvt Ltd has two divisions-one for retailing and the other for distribution. "Realising the needs of the consumer preference for a particular brand, the distribution aspect is necessary to help meet the consumer demand at various locations. However, a strategy of just stocking all the brands in the store doesn't work. For the purpose, the company plans to set up a co-ordinative distribution office in Mumbai in January."The company plans to increase the number of dealers from 126 in the current year to 252 across major cities next year, adds Mr Shekhawat.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.