As one of the pioneers in organised retail in the state, the Armacar group has now moved into top class retail with the launch of Delfinos Hymart. Prakash Pereira met with Ajit John and explained the reasons behind the move as well as plans for the future.
HERALD: What made you enter a business that demands long hours and where the margins are not very high?
PRAKASH PEREIRA: We brothers, under the Armacar group, have been in the business since 1983 specifically in retail of sports goods with our store – Champs. We then diversified into hotels and restaurants and furniture retailing. Today one has to look at Goa, it is changing very fast and people’s consumer patterns are evolving. One has to also remember that life is getting more hectic and people have less time. People need to spend a minimum of Rs 200 a day when they step out of the house. This includes transport and food which is a very important part. If we can get a substantial portion of that spend everyday we will be home free.
HERALD: What has been the response from the market since the launch?
PP: It has been just seven days but we are attracting on average 1,200 footfalls everyday which is encouraging. We are at just 70% of our stock. Once we get fully functional, I am sure we will attract tremendous crowds. We have fresh vegetables, fish and cooked food. There is something for everyone in addition to cosmetics, alcohol, spices and condiments etc. The population of Goa remember is 14 lakh odd with 3 lakh floating population and all of them are spending at least Rs 200 a day, so it should give you an idea of the scale of the business.
HERALD: What are the peculiarities of the Goan consumer?
PP: He is very quality conscious but is also price conscious but most of all he wants good quality. We will be sincere in our pricing so that the crowds come in. We want people to come in because you have to understand that outlets like Delfinos around the world depend a lot on spur of the moment purchases. A customer may come in to buy vegetables but will leave buying ice cream and biscuits in addition to the vegetables.
HERALD: How easy or how difficult was it to set up the operation?
PP: It took me five months to get my paper work sorted out with the various departments which was not bad. I would have liked it to be faster.
HERALD: How would you have liked it to be?
PP: A one window system would have been ideal. I hope it happens because it will certainly benefit anyone who wishes to set up business here.
HERALD: How do you visualise the retail market evolving in the next couple of years?
PP: There is space for everyone. I believe the retail market to be worth at least Rs 3 crore a day when you calculate Rs 200 with the number of people in the state. Shopping in style will become a trend and we will latch on to it. Organic food is a very important trend and we intend to start a separate counter. Of course it will be more expensive than what is sold on the other shelves but I believe there is a discerning market segment that will be willing to pay that extra.
HERALD: What is the average growth of the industry in Goa?
PP: The industry is growing between 12.5% and 15% every year and I believe this will be the growth for the next five years.
