Suumaya Industries Ltd, an emerging diversified conglomerate group, through its 100 percent fully-owned subsidiary Suumaya Retail Ltd., has forayed into an unique hybrid model of retail business for rural India.
In the pilot phase the company plans to open 30 plus "Suuvidham Superstore" retail chain in Uttar Pradesh in the first quarter of 2022. "Suuvidham Superstore" will be based on Company Owned Company Operated (COCO) and Company Owned Franchise Operated (COFO) business concept. The retail outlet will offer wide array of products covering food and household utility items.
The company aims to make "Suuvidham Superstore" as a ready platform to help homegrown brands to expand their footprint as an enabler for local businesses. It will be a go-to-store for every local villager as the company will be providing quality goods at subsidised rates.
All these stores will be technology enabled to simplify placing of orders to processing invoices thereby bringing ease into their day-to-day lives. "Suuvidham Superstores" are designed around customer centric approach.
Rural retail sector in India
Rural retail sector in India has an addressable market opportunity of over $100 billion by 2025 according to market research firm Nielsen.
Another report by McKinsey Global Institute forecasts the annual real income per household in rural India to rise to 3.6 percent by 2025, from 2.8 percent in the last 20 years.
Stores in offline, online model to be launched
Ushik Gala, Chairman & Managing Director of Suumaya Industries Limited said, "Suuvidham Superstore retail business will strengthen Suumaya Retails foothold in the value retail segment in the smaller towns. By launching stores across the states of Uttar Pradesh, Haryana, Rajasthan and Gujarat in both online and offline model, the company will provide opportunities to franchisees and rural retailers to scale their business. B-town consumers will hugely benefit from the access to various brands at economical price points. This new venture will create a solid presence for Suumaya in the Indian retail space with strong assortment of products and extensive geographical footprint in tier 2, 3 & 4 cities. "
Suumaya's focus on smaller towns and talukas through the online and offline market has huge potential, Gala said. It is expecting good footfall due to strong assortment of products offered at optimal prices and well calibrated store positioning. A high footfall conversion rate can be leveraged to expand Suumaya's market penetration. The model is likely to significantly empower rural entrepreneurs and is likely to boost rural economy, he added
Lack of capital, tech, supply chain hampers rural biz
Suumaya Retail undertook an extensive survey and research across villages and identified the immense untapped potential of rural business, which is hampered by lack of initial capital, technology and supply chain. The local retailers already have their own premises and work force to run the store.
The company's hybrid model of operations will play a significant role wherein the company will provide them with goods, basic infrastructure, technology and supply Chain whereas the franchises will run the operations at the store level, it said in a press statement.
Under the pilot phase, Suumaya Retail will be establishing its presence through "Suuvidham Superstore" retail chain in 30 plus villages of Uttar Pradesh. The company plans to gradually scale up its retail chain rollout in the coming year across pan-India.
The Government of India has also taken various initiatives to improve the rural retail industry in India. The new framework for retail digital payments in offline mode to accelerate digital payment adoption in the country by RBI has also provided the much needed impetus to the rural economy.
(With inputs from ANI)
