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Nov. 3, 2021
Ram Chandra, the founder and CEO of V2 Retail, is a stalwart in India’s retail industry. With over two decades of experience, a successful exit under his belt, and a relentless passion for fashion, Ram has transformed the retail landscape in India. His journey, marked by resilience, innovation, and a deep understanding of consumer behavior, offers invaluable lessons for aspiring entrepreneurs and retail businesses.
Through V2 Retail—which stands for "Value and Variety"—Ram has created a unique blend of affordable, trendy, and fashionable apparel under one roof. V2 Retail operates in 17 states across India with 77 stores, offering a seamless shopping experience to millions. Let’s delve into his inspiring journey and uncover the strategies that made him a retail giant.
Family Background and Education
Ram Chandra hails from a close-knit family of four. While he initially pursued a law degree (LLB) after completing his B.Com, he decided to drop out and chase his dream of becoming an entrepreneur. His keen interest in fashion and customer behavior paved the way for his retail journey.
"Fashion is more than a necessity; it’s a way of life," Ram says. His passion for fashion, combined with a knack for understanding market trends, inspired him to venture into the highly competitive retail industry. For Ram, retail is not just about selling products—it’s about delivering experiences.
Building Vishal Mega Mart
In 2001, Ram launched Vishal Mega Mart, which quickly became a household name. By 2008, it operated over 100 stores across India and became the first retail company in the country to achieve this milestone. The business went public in 2007, raising ₹110 crore through its IPO.
However, the 2008 financial crisis disrupted operations, leading to mounting debts and operational challenges. Ram made the tough decision to sell Vishal Mega Mart to TPG and Shree Ram Group in 2011.
The Birth of V2 Retail
Undeterred by setbacks, Ram launched V2 Retail in 2011. Within two years, it achieved a turnover of ₹100 crore. By 2020, V2 Retail's annual turnover exceeded ₹700 crore, with 80 stores nationwide and a robust e-commerce platform, V2 Kart, poised to compete with industry giants.
V2 Retail offers a combination of value and variety, ensuring customers receive trendy, high-quality apparel at affordable prices. The focus on value-for-money shopping and a diverse product range has cemented V2 Retail’s position as a leading brand in India.
Enhancing Productivity
V2 Retail leverages cutting-edge technology to streamline operations:
Warehouse Optimization: Transitioned to handheld devices, boosting productivity.
ERP Transition: Moving from ECC to HANA for enhanced operational efficiency.
Customer Experience: Loyalty programs and advanced technologies power the e-commerce platform, ensuring a seamless shopping experience.
Despite the rise of online shopping, V2 continues to expand its physical footprint. Ram emphasizes the emotional and experiential aspects of shopping, which digital platforms often fail to replicate. Physical stores provide curated selections, tactile experiences, and instant gratification, making them indispensable.
Ram’s journey is a treasure trove of lessons for new entrants into entrepreneurship, particularly in the retail sector. Here are his key recommendations:
Choose the Right Niche: Identify a market segment that aligns with your passion and expertise.
Obsess Over Customer Needs: Stay attuned to customer preferences and feedback.
Focus on Profit, Not Revenue: Prioritize sustainability over vanity metrics.
Start Narrow, Then Expand: Begin with a focused offering before diversifying.
Invest in Employee Morale: A motivated workforce drives business success.
Match Your Personality: Align your business model with your strengths.
Monitor Competitors: Stay aware of market trends and competitors’ strategies.
Just Do It: Start, even if it’s not perfect—progress comes with iteration.
AiDOOS’s Virtual Delivery Center (VDC) model complements Ram’s entrepreneurial philosophy by providing:
On-Demand Expertise: Access to a global pool of subject matter experts for IT and operational tasks.
Cost Efficiency: Pay-per-task model reduces overhead costs.
Scalability: Seamlessly scale operations with the right expertise.
Focus on Core Operations: Retailers can concentrate on growth while AiDOOS handles IT complexities.
Ram Chandra’s journey exemplifies resilience, innovation, and customer-centricity in the face of challenges. Aspiring entrepreneurs can draw inspiration from his success and adapt his principles to navigate the ever-evolving retail landscape.
With platforms like AiDOOS, retail businesses can embrace the future confidently, leveraging technology and expertise to thrive in a competitive market. The mantra for success lies in adaptability, customer focus, and leveraging the right partnerships.
