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Until now, pre-schools, schools, vocational educational institutions, lodges, resorts, luxury hotels, coffee shops, restaurants and other retailers were expanding by awarding franchisees in different locations. The newest form of franchisors that have now joined are liquor retailers.The new format of retailing, till now associated mainly with consumer electronics manufacturers, is perhaps meant to keep pace with the experience consumers get across modern retail locations. An attractive display of a huge variety of products and assisted choices are common features of these stores.
Thus, premium spirits maker Diageo has created its exclusive store Select' to display the top brands out of its 118-strong portfolio, while UB Group, which holds a majority share of the Indian spirits market, has Spiritz & More' under its belt.
"Spirits consumption in India has undergone a dramatic change in the past decade or so," says Asif Adil, managing director of Diageo India Pvt Ltd. "Upwardly mobile, globally exposed customers who have been buying stuff from duty free' shops today want the same experience while buying liquor."
Diageo opened its first Select outlet in Wanowrie on Saturday. where it has laid out in style its well-known premium labels such as Johnnie Walker (Red, Black and Blue), Smirnoff, Vat69 and Black & White and some of its own wines under the Nilaya range. According to Adil, the company will keep some products and a few single malts available only through the Select format.
United Spirits Limited (USL) that has its own products range under McDowell's and Royal Challenge or Signature, has also embraced the open-access format. Spiritz & More' are multibrand experience stores' which will have a premium feel and will fit into the company's strategy to get on par with the methods used internationally by spirits retailers. USL opened its first Spiritz & More store some time ago in Kondhwa.
According to Ananth Iyer, head for luxury brands, trade marketing & institutional sales with United Spirits Ltd, the initiative started along with the arrival of organised retail in India and premiumisation' of products. "After adding premium international brands including Whyte & Mackay, Bouvet Ladubay & Pinky Vodka to our portfolio, we needed to ensure that the brands reached the length and breadth of the country. At the same time, the consumer needed a premium liquor retailing environment that enhanced his purchase experience," Iyer said.
More importantly, the interactivity which these stores offer and the help of trained spirit advisors is aiding awareness of scotches and wines, Iyer asserted.
Location is a key factor when deciding to open a store such as this. Adil says he is not in hurry and so does not have a target before him. "It will be a thoroughly thought out plan where a dealer is taken into our confidence," he says, adding that there are four more stores in the offing; one each at Aundh, Deccan Gymkhana, Camp and Kalyaninagar.
Both Adil and Iyer are, however, reluctant to put a number to the sales addition the strategy is expected to bring in. "We want to bring luxury into liquor consumption and want to do it in style. That sales will rise is a foregone conclusion," Adil said. Iyer too is tight-lipped on numbers. "This format is a franchise operation and retailer profitability with greater sales and footfall is the intended result," is all he has to say.
Spirits makers have created their own brand stores which seek to entice, entertain and even educate customers.
Both say the format offers opportunities beyond liquor sales. Diageo has therefore thought of an on-floor host who will assist the customers in making a choice and also offer advice on nuances like cocktails and food pairing. Spiritz & More, on its part, provides several opportunities for consumer interaction from automated information kiosks to whiskey guides and retailing of other brands/services from the UB Group including Kingfisher Airline bookings.
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