Franchising is an extremely powerful tool: Yashovardhan Gupta
Torero Corporation, global licensee for brands like Cross, Police and Cosmopolitan is all set to expand through franchise model.
Yashovardhan Gupta, an aquatic and winter sports lover and a dynamic entrepreneur is the CEO of Torero Corporation which is the global licensee for brands like Cross, Police, Cosmopolitan, Victorio Y Lucchino, Swarovski IB and many more. Gupta spoke to us on the various ways he wants to expand Torero Corporation and also confirmed the next move ahead via the franchise model.
Tell us about your distribution model.
We have structured our company to divide our distribution into three, very distinct formats.
- Subsidiaries: These are territories, where we have created an office, and are directly distributing in the market. The focus is retailer, trade and other large format, or modern trade sales. India and the UK are our current subsidiaries. For instance in India, we are present in 250+ points of sales, including Shopper Stop, William Penn, and other brand, enhancing retail touch points. We launched our MBO format last year, called Brand Boulevard, and would be launching three exclusive brand outlets (two Police EBOs, and one Cross EBO) by 31st March.
- Distributor Markets: These are territories, where we have an exclusive Distributor partner, who has exclusivity for one or multiple brands, for a channel, or a territory. Companies such as the Jashanmal group are our valued partner for the UAE. We have a network of 200 distributors, spread across 50 countries.
- Hybrid: These are markets where we have partnered with a retailer directly, and hence have a more direct relationship with the consumer; however, we are yet to open an office there. The UK is one such example, where we have a special relationship with the retailer, Sports Direct.
When do you start expanding via franchise model?
Franchising is a, extremely powerful tool, to expand your reach and is a focus channel for us. However, I believe that one must open at least 10 stores, in a Company Owned, Company Operated manner, to fully understand the nitty-gritty’s of running a retail operation, perfecting margins, and GMROFF (Gross Margin Return on Footage), before harnessing the power of franchising to move forward. We launched our first MBO last year, and are opening three EBOs, by 31st March. We would be opening 10 stores by the end of the year, and will aggressively look at Franchising, from the January 1st, onwards.
Tell us about the business models of Torero Corporation.
Torero Corporation is the global licensee for some of the major global brands such as Cross, Police, Torero, Cosmopolitan, Victorio Y Lucchino, Swarovski IB and many more. We design, manufacture, globally distribute as well as sell the leather for all the brands which they acquire. Sharing its work genre with global giants like Arvind, Madura and Reliance Group, Torero Corporation is modelled on the Luxottica business model for eyewear brands with no other player doing the same for leather accessories.
What is the one biggest challenge you see while working with such big international labels?
It is an absolute pleasure to work with International Labels. There is an enormous energy, enthusiasm, and respect for India, and Indian managers. Indian executives are well respected globally. They enjoy working with Indians, have enormous respect for our traditions, and are keen on partnering with Indians, to make an impact, in this very important market.
What are your expansion plans in the coming years?
We have a very clear growth path. We plan to open 10 stores by the end of 2017 and increase our point of sales in India from 250 to 350 by the end of 2017. But, the focus would be international expansion, and we would focus on increasing our global presence by increasing the point of sales from 1500 to 4000 by the end of 2017.
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