Mumbai: Danish stereo and speaker system maker Bang and Olufsen is planning to set up 8-10 standalone “satellite" stores this fiscal year to expand the luxury lifestyle brand’s reach in India.
“We are looking at setting up at least 8-10 stores by the end of fiscal year 2018 in cities like Hyderabad, Chandigarh, Ludhiana, Kolkata, and Ahemdabad," said Gaganmeet Singh, CEO of Beoworld India Pvt. Ltd that licenses the Bang and Olufsen brand in India.
He was speaking at the launch of the company’s final double-storey flagship store at the Taj Santa Cruz Hotel in Mumbai. Bang and Olufsen set up its first flagship store that sells all its home and recreational range of products at the luxury Emporio mall in Delhi.
Each of the new “satellite stores"—of around 15-50 square metres—will cost the company Rs7-10 crore to set up, Singh said. He declined to share a total investment target.
“We are already getting interest from malls and hotels in these cities such as hotel Taj Krishna in Hyderabad, Elante Mall in Chandigarh, Select City Walk in Delhi and others," Singh said. “We are looking at the options."
Bang and Olufsen’s satellite stores will carry a limited range of their high-end products, focusing more on their affordable “B&O Play" range of speakers that start at Rs10,000-12,000 apiece.
The flagship stores use more space as they carry Bang and Olufsen’s large screen televisions and customizable home theatre and sound systems that are priced at up to Rs3-5 crore each.
To reach out to more customers, Singh said the company has been expanding its network of third-party sellers that has grown 30% annually.
“Companies like Bose have the first mover advantage, they came to India much earlier," Singh said. “The challenge is that not enough people know about Bang and Olufsen."