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IT World’s Growth Story

Biswajit.HD

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Coimbatore-based IT World registered a turnover of Rs 17 crore in FY2010-11 for a growth of 54 percent over the previous year’s topline of Rs 11 crore.



IT World attributed the high growth to the opening of three new exclusive HP stores, two in Chennai and one in Coimbatore, which contributed a total of Rs 4.4 crore to the annual revenue.

Apart from this the company’s six other stores, four in Chennai and two in Coimbatore, grew by nearly 15 percent grossing a total of Rs 12.6 crore.

Around 75 percent of the company’s revenue came from notebooks; desktops and printers contributed 10 percent each and accessories five percent.

IT World went aggressive with its marketing activities like road shows, and cross promotions with different brands (such as Ray-Ban); this added another eight percent to its topline.

“We spent around Rs 25 lakh for promotional activities in and around our stores. A good part of that amount was spent on print campaigns in weekend supplements of local newspapers. This contributed another 12 percent or so to the topline,” said R Rajnikanth, Partner, IT World.

IT World streamlined its inventory and accounts. Its in-house ERP helped its store managers to close orders faster. “It saves us a lot of time; store managers can devote that time to improving the customer buying experience,” noted Rajnikanth. “Besides, we created a showroom-like environment where customers can have a touch-and-feel experience.”

The company focused on customer loyalty programs such as giving gifts and discount vouchers on the purchase of accessories. It introduced a customer feedback system to improve the buying experience, and provided product training to its sales personnel. Informed Rajnikanth, “We invested close to Rs one lakh last year so that our sales personnel could get complete knowledge of every product which we sell and thus serve the customer better.”

IT World believes that performing employees must be rewarded, and therefore offered special bonuses for performers—bonuses which sometimes amounted to more than their salaries. “This not only helped us reduce attrition rates but also boosted our topline and bottomline,” Rajnikanth remarked.

The company plans to open 11 more exclusive stores by the end of 2012, out of which five would be opened this fiscal. It intends to cross revenue of Rs 50 crore by 2013.

source : crn
 
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