bonsaiil i f e s t y l e s t o r e f o r k i d s 0 - 1 4 y e a r
s
R
“bonsaii” is the flagship brand of specialty retail stores of
Pune based Suyash Mart Pvt. Ltd.
bonsaii operates in the org...
We intend to become a national chain of stores going ahead
● Aundh, Pune
● Magarpatta, Pune
● Ramdaspeth. Nagpur
● Banjara...
categories
Indian retail market is the 5th largest retail destination globally by size – AT kerneys 8th
Annual Global Retail Developm...
Another big player, Mahindra Retail has opened up 40 medium format
stores called “Mom & Me” and plans to scale up to 50 st...
Other players in infants, toys and related categories in which bonsaii
operates are regional players and strong in their o...
Toys, Stationery, Infants Accessories, Kids Ride ons, Footwear are the major
categories in which we focus and sell. All go...
Width and Depth of merchandise at bonsaii is the biggest value proposition.
Chain stores offer space to one or few big toy...
We are confident that interaction with our customers will certify our service,
Price Value Proposition towards customers a...
Our own Imports and bulk deals with importers create sufficient barriers for
smaller players. Because of high volumes of b...
Our customer loyalty club programme is very strong and effective. Within
hours of sending sms or mail, we can see our cust...
Retail market for kids is so huge that there is space for lots of players. In
addition to this, future plans for other ret...
● Since we attract customers because of our product mix, being at the main market is not
the only thought. Our best target...
●Ramdaspeth, Nagpur (2008) : This is on VIP road, which is not a market location. This is
a perpendicular road to the main...
Bonsaii Franchise Presentation
Bonsaii Franchise Presentation
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Bonsaii Franchise Presentation

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Complete Franchise Opportunity details for Bonsaii Toy Store Franchise. For more information, please visit www.way2franchise.com

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Bonsaii Franchise Presentation

  1. 1. bonsaiil i f e s t y l e s t o r e f o r k i d s 0 - 1 4 y e a r s R
  2. 2. “bonsaii” is the flagship brand of specialty retail stores of Pune based Suyash Mart Pvt. Ltd. bonsaii operates in the organized retail environment in upmarket high street retail locations. We are a part of lifestyle retail specializing in the KIDS segment.
  3. 3. We intend to become a national chain of stores going ahead ● Aundh, Pune ● Magarpatta, Pune ● Ramdaspeth. Nagpur ● Banjara Hills, Hyderabad
  4. 4. categories
  5. 5. Indian retail market is the 5th largest retail destination globally by size – AT kerneys 8th Annual Global Retail Development Index. Share of Retail Industry to India’s GDP is slated to be around 20%. By 2015, 55% of Indians will be below 20 yrs of age. This depicts that for the next 20 years, the Infants and Kids Market in India will be secured. Indian Toys and Games Organised Market is slated at Rs. 2500 crores. However there are not enough players to justify the market demand. The biggest player in this segment, Reliance Retail, with Hamleys is planning to invest only Rs. 150 Crores in next 7 years for opening 20 stores, average size being 20,000 sq. ft. Next to Reliance, there is no other major player in Kids specialty retail. Even Reliance, with Hamleys is operating only in Toys Segment, which is just one of our categories at Bonsaii.
  6. 6. Another big player, Mahindra Retail has opened up 40 medium format stores called “Mom & Me” and plans to scale up to 50 stores in next 2 years. However, their focus is New Born and Maternity Wear. Apparel constitutes almost 60% of their revenue. Other big players who have attracted PE/VC investments are Gini & Jony, Lilliput, Catmoss, etc. They all are apparel manufacturers and have little expertise / focus in non-apparel categories for kids. Our pitch at Bonsaii is to offer the customers a retail experience and service which they are deprived of at the moment. This is largely due to lack of focus of existing organized retail players in the segment as well as supply chain deficiencies in the categories we operate. Today, other than Bonsaii, there is no one else offering Infants Products and Toys, both together in such Depth and Width. Our customers and our suppliers will give testimony to this fact.
  7. 7. Other players in infants, toys and related categories in which bonsaii operates are regional players and strong in their own area. Outside their city, even if they have stores, they are small in size or defocusssed franchise stores. Some can be listed as: Me n Moms – 3 out of 8 stores in Mumbai. Strong in Infant Accessories, weak in toys. Little Kangaroos – 4 out 6 company operated stores in Mumbai. 2 franchise stores & several shop in shops. They manufacture apparel. Not focused at all in non- apparel. Baby Bell – single store in Mumbai. Not focused at expansion. Strong in Apparels, weak in toys. Premsons – single store in Mumbai. Strong in toys, weak in Infants.
  8. 8. Toys, Stationery, Infants Accessories, Kids Ride ons, Footwear are the major categories in which we focus and sell. All good quality products in these categories need to be imported. India does not have the core competency to manufacture these items. All these products are imported from China. Hence, the supply chain is very inefficient. All the importers including Mattel, Funskool, etc. cannot be sure when they will be able to supply what goods. Apart from the lack of organized working style in China toy factories, Indian customs are very unpredictable. It takes almost 10-15 days only to clear a container having these products. Hence, not many organized players are interested in going through such hassles which is a major entry barrier. Topline can be more easily gained by dealing in apparel. Since India is a manufacturing hub for the world in apparel, supplies are comparatively easier to procure. Customization such as private labels, etc. can be done easily since machines are located in India. Moreover, apparel units are of high value compared to toys or infant accessories. Hence, it is easier to focus on apparel.
  9. 9. Width and Depth of merchandise at bonsaii is the biggest value proposition. Chain stores offer space to one or few big toy players and let them be on a minimum guarantee. This is not focused kids products retail. We put our 100% expertise in selecting merchandize from over 150 vendors. Our import business helps us spot trends at the right time to encash at retail level. Bonsaii has focused into toys and related categories over the years & mastered the tricks of the trade. Inspite of being lured multiple times for topline chase, we have stuck to our focus since we saw a big future in these categories. We, at Bonsaii, have turned this challenge into a big oppurtuinity. We have indulged into our own imports and doing bulk deals with importers & stocking fast moving goods. Hence, at time of shortages, the customer is sure about getting goods at bonsaii, if he does not get them anywhere else.
  10. 10. We are confident that interaction with our customers will certify our service, Price Value Proposition towards customers and right merchandize mix. Similarly, interaction with our suppliers will certify our systems of operation. Our topline at single store level has grown by 30% CAGR for each store on an average since we started in 2003. Over the period of time competition from other players has only increased.
  11. 11. Our own Imports and bulk deals with importers create sufficient barriers for smaller players. Because of high volumes of business and timely payments, our suppliers offer us first priority for product supplies and we enjoy highest industry margins available. Customers come to us since they get a good overall price value proposition, not one time deals. We attract above Rs. 20,000 p.m. income households. “Bonsaii” is a brand recognized for best quality infants & kids products coupled with excellent sales and after sales service. We are clearly not price warriors and do not lure customers by offering deep discounts and bargain schemes.
  12. 12. Our customer loyalty club programme is very strong and effective. Within hours of sending sms or mail, we can see our customers at the store inquiring about the specific products highlighted in customer communication. This is because, we have a quality database of 15000 genuine customers built by us one by one. Our focus is creating lifestyle stores in Non Metro cities such as Pune, Nagpur, Indore, Raipur, Ludihana, Ahmedabad, Hyderabad, etc. 1 or 2 stores of 5000+ sq. ft. size in such cities would capture the whole local market and create major entry barriers for other players, in the process, making us a near monopoly outfit. We are experiencing a similar situation in Pune and Nagpur with existing stores.
  13. 13. Retail market for kids is so huge that there is space for lots of players. In addition to this, future plans for other retail companies do not list out major investments for kids non-apparel category stores. Hence, very little threat from competition. The only risk is choosing a wrong location for additional store or getting into an unviable property deal. This can be overcome by the experience and expertise of our team. For the current 4 store locations, we have exercised perfect judgement.
  14. 14. ● Since we attract customers because of our product mix, being at the main market is not the only thought. Our best target customer is the new generation job oriented family with one or more earning members having incomes between 30,000 to 3 lacs per month. ● In fact, we choose to be present at an upcoming suburb where residential growth is slated to happen in the forthcoming years. we are able to bring down the property cost by not being in the “main market” and thereby, business viability becomes better. Garnering customer walkins has not been a problem for us any time. ● Most of the buying which happens is need based. Impulse buying only happens once the customer is inside the store. Once, the customer experiences our service levels, variety and becomes a loyalty club customer, we are assured of his repeat walk in even if he has a small need for his kids. Even the kids insist their parents to take them to bonsaii since we provide them a good experience too. ● Aundh, Pune (2003) : When we opened in 2003, Aundh was a distant suburb. We choose not to be in Deccan, Camp, etc. since property costs were low and we were looking at serving IT and related sectors working population. New residential complexes were coming up which meant more “new generation” parents would come. This bet has paid off very well and we have followed the same strategy in choosing the other stores. Strategy for Choosing Store location
  15. 15. ●Ramdaspeth, Nagpur (2008) : This is on VIP road, which is not a market location. This is a perpendicular road to the main dharampeth market. Apart from our store, there is no other store on this road. Customers drive an extra half kilometer from Dharampeth for shopping at Bonsaii. However, this has been very positive for property cost, walk ins, topline as well as bottomline. ●Banjara Hills, Hyderabad (2011) : This location is at road no. 12, banjara hills. Again, we choose not to be present at Himayat Nagar or Somajiguda, the main high street locations. This road no. 12 is a gateway for transit from Hyderabad main city to High Tech City, where all software parks are located. Presence of IT population and strong middle class has led us to choose this location. ● Magarpatta City, Pune (2011) : Magarpatta city has got 7000 flats and amanora city on the opposite side of the road is coming up with 14000 flats. This is eastern suburb of pune is growing very rapidly. Again, new generation parents and corporate job honchos will be residing in this part of the town. Since we are already strong in west pune, east pune is a very logical option. We are located in a mall made by Magarpatta Builders. We took a second floor porperty as a mini-anchor at a very reasonable rental of Rs. 65 per sq. ft. We hope to break even in the second year of operations. Strategy for Choosing Store location

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