With lower property costs and other beneficial factors, Baggit is laying its major thrust on tier II and III cities.
With lower property costs and other beneficial factors, Baggit is laying its major thrust on tier II and III cities. Baggit has opened stores in tier II and III cities like Hyderabad, Kochi, Pune, Gurgaon with the same line of product, look and feel of a store like metros.
It has also tied-up with Reliance Trends to reach out to tier-II and III towns and metros. Besides, it joined hands with regional players like Hyderabad-based Centro which is expanding in Andhra Pradesh and Telangana. The brand is also strengthening its distribution network to in these smaller towns through MBOs and distributors.
“Apart from retail growth in urban and tier-I cities, there is also a radical shift witnessed in consumption patterns in smaller towns with people moving beyond necessities and using products that were once sold only in urban areas. They have become big, not in size but in the opportunities they offer. As the property costs are much lesser in tier-II and III towns, hence, the chance of being profitable through franchise channel is much higher,” says Nina Lekhi, Founder and Owner, Baggit,
“Tier-II and III cities are providing a secure platform for brands across the different business segments. There is immense potential and opportunity that exists in these cities that is propelling the brands to grow in towns,” she adds.