According to Kishore Biyani, "We will have a distribution tie-up with other retailers in the country who would sell our private labels through their stores. We expect this move to increase our access to more markets without us making any upright investments."
Future Group currently has 15 private levels, which are sold through Pantaloons, Big Bazaar and other company-operated stores. These include Bare denim, Koryo consumer durables, DJ & C casuals, Dreamline home decoration, Fresh&Pure foods, John Miller apparel, among others.
Future Brands earns a royalty of close to 7 per cent on the sales of these brands by any group company.
Currently Future Group's private levels, across the apparel, food and electronics categories, contribute close to 14 per cent to its sales, which the company plans to expand to 25 per cent.
Moreover, the portfolio of products in the food, electronics, apparel and cosmetics segments would also be expanded, through the outsourcing model, which is where a large part of the private labels would feature.
Among other plans, Future Group is looking at setting up about 1400 more KB's Fair Price stores across eight major cities over the next one year, to have a total of 1500 stores. Mumbai will have the largest number of KB's Fair Price stores at around 250.
The Group spends close to Rs 400 per sq ft on the stores which are usually spread over 1500 sq ft. Competing with the kirana stores primarily, KB's Fair Price targets residential areas in cities offering a range of daily essentials with limited SKUs.
Unlike Food Bazaar which sells a larger range, KB's Fair Price sells only essentials ranging from food products to apparel, without stocking any perishable items.
