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Khadi ties up with retailers to enter shopping malls

in a tie-up with retail chains, Khadi has finally entered shopping malls in what is seen as an attempt to tap the middle-class market it has been losing to newbie Patanjali.

Last week, Khadi made a beginning through a tie-up with retailer Globus to launch Khadi Korner, a shop-in-shop concept, at an outlet in Noida. The plan is to move to Chennai, Varanasi and Ahmedabad later this month.

Next month, the Khadi & Village Industries Commission (KVIC) will go for a similar launch in Mumbai in tie-up with Cotton Bazaar. Discussions are also taking place with Shoppers Stop and Big Bazaar.

KVIC had stayed away from shopping malls as it did not have the financial clout to spend around Rs 2-5 lakh a month on leasing space. So, it strategised a different model where it will have a revenue-sharing arrangement with retailers, which could range between 10 per cent and 20 per cent of sales.

KVIC Chairman, V K Saxena analysed, "Gone are the days when loyal customers travelled long distances to reach Khadi Bhandars. Today, availability is one key focus area and we want to be available at the doorstep."

Saxena revealed that their initial sales numbers are promising. On Sunday, sales were estimated at around Rs 28,000, just a fraction of the over Rs 25 lakh that the flagship store in Delhi's Regal Building recorded.

Currently, they are offering garment and cosmetics but depending on the feedback more products could be added. Since the last few years, Ramdev's Patanjali, which was asking for a tie-up with KVIC, has ramped up its presence in shopping malls, especially through the franchisee route and has eaten into KVICs market for products such as spices and honey