Lots Wholesale Solutions, a part of USD 50 billion Charoen Pokphand Group, and a wholly owned subsidiary of Thailand’s Siam Makro, feels that private labels can contribute up to 5 percent of the total revenue for the company in the next 2-3 years in India. In Thailand, private labels contribute to about 12 percent of the total turnover of Siam Makro.
“We will continue to expand our private label range in India. We wanted to just start it off with the launch of the third store in the country. It is going to be a long journey for the private label in the country. We will slowly try to grow the contribution of private labels as we start expanding the range. At present I see the private brands can contribute around 5 percent to our total revenues in the next 2-3 years,” said Tanit Chearavanont, managing director of Lots Wholesale Solutions.
The company which opened its first store in the country last year has today launched its third store in Noida, Uttar Pradesh, has also launched its private label brands. At present, the cash and carry company has launched two brands Basic Plus and PlusMo in home cleaning and bakery category respectively but plans to add more categories gradually.
“There is a potential for the private labels to grow in India but we are still evaluating which categories we want to approach here. For 2019 we have private label brands planned in the household and personal care, confectionaries, biscuits, and snacks. We will also be launching our private labels in apparels this year,” Chearavanont said.
Lots Wholesale Solutions had earlier said that it will invest more than Rs 1,000 crore in India in five years to open its wholesale outlets across the northern region. The company’s immediate plan is to open 15 stores in the first three years, which according to the company is on track. A single Lots Wholesale Solutions store entails an investment of around Rs 60 crore.
The company has been bullish about the Indian market and believes it cn turn profitable in the next 5-7 years. The company’s senior leadership is also of the view that India could become the biggest market for them surpassing the Thai market.
In the future, there is a possibility that India could eclipse Thailand to become a bigger market for Siam Makro, the group CEO of Siam Makro PCL, Suchada Ithijarukul, who was in India last year had told ETRetail.
The cash and carry player’s e-commerce plan is also in the beta phase and should be able to roll it out completely in a few months from now. Source: ETRetail
