Textile & Fashion

Max Fashion targets 5 per cent revenue share through new omnichannel business

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Bengaluru: Fashion retail giant Max Fashion Retail (Retail World Ltd) is going to launch a new omnicommerce channel, this channel would allow users to place an online order within the store using digital kiosks, and get it delivered to their doorsteps, executive director Vasanth Kumar said in an interview.

Max Fashion Retail is targeting to generate 5 per cent of its total revenue from the new omnichannel business in the next one year.

The company has used the omnichannel strategy in 10 stores across Bengaluru city in a tie-up with e-commerce solutions provider Ace Turtle. All the functions like the order processing, back-end technology stack and logistics support will be provided by Ace Turtle. Sales representatives at the store are also going to be equipped with tablets to assist customers to choose their clothes according to the size and choices.

The digital kiosks set-up inside Max stores would assist the users to browse through the entire fashion collection currently available at the store, as well as collection available in other Max stores in Bengaluru, Kumar said. All orders are delivered with no extra shipping charges and have no minimum order value. “In three months time we tested the omnichannel strategy, and we were able to get around Rs1, 000 per order,” Kumar added.

With this strategy Max Fashion would be able to cut the shortage of product varieties at physical stores and increase retail conversion rates. According to Nitin Chhabra, chief executive officer of Ace Turtle, retail fashion stores generally have a conversion rate between 18% and 30%. This means that out of 100 customers, only 18 to 30 customers end up purchasing the goods.

In addition to this latest development, Max has introduced looks that comprises combination of different styles at the digital kiosk to aid customers select the products faster. “We are coming up with 200 new looks for our omnichannel customers by end of next month across categories like sports, formals, casuals, and others” Kumar said.

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