Most special way to say you care..!!

Archies Gallery : Redefining

Indian social expression industry

Controlled entirely by the unorganized sector

The gifts comprised standard offerings such as flowers, books, sweets, garments

High end gift items silver and semi-precious stone trinkets

Traditional Way

Changed the predictable Indian mindset Whole new range of unique items Quality of merchandise underwent a

complete transformation Archies

Way

Archies Gallery : Changing the

game

Indias apex market leader in the social expressions industry

50% market share in the organized sector

120 company stores in 14 states and 36 cities across India 350 franchise outlets in 100 Indian cities and 5 countries

Archies Gallery : Go-To-Market

strategy

Company Owned Stores

Franchise Outlets

e-commerce

portal: www.archie

s online.com

Organization structure

Director

M.D.

Zonal Head North

Zonal Head South

Zonal Head

Central

State Head

(Madhya Pradesh)

District Head

(Bhopal)

Store Managers

District Head

(Gwalior)

Store Managers

District Head

(Indore)

Store Managers

District Head

(Jabalpur)

Store Managers

District Head

(Ujjain)

Store Managers

Zonal Head West

Zonal Head East

Sponsored MTV Roadies 6.0 and added Roadies merchandise

Archies gift of the month @99

Promoted their props through Bollywood(I hate luv stories)

Tie up with Help Age and CRY

Direct mailers and contact systems for corporate houses

Conceptualized friendship day/ daughters day

Introduction of new lines of everyday cards such as Thinking of you, Hello, Miss you and Get well soon, among others

Huge untapped market (per capita consumption 0.5 in India compared to 40 in US)

Market is growing at 15%-20% per annum.

Acquired Hallmark - No competition

Market

Creating

Demand

Promotion

Building Brand Image

Archies Gallery in Indore:

Channel Levels

Mother Warehouse (New Delhi)

City Stockist (Chhawni)

Company Owned Stores

(5) Consumers

Franchise Outlets

(4) Consumers

Archies Gallery in Indore:

An Overview

Chhawni

City Stockist

(1)

C-21 Central Mall Mangal City Old Palasia Treasure Island

Company Owned Stores

(5)

Apollo Square Malhar Sapna Sangita

Franchise Outlets

(4)

Distribution Flow : Regular

Orders Store Manager orders online, based on the inventory count and expected sales

Quantity not cost is the criteria

Manufacturer at New-Delhi accumulates order from one city worth a truck-full of order

Dispatches the order to the city stockist

Lead Time = 7days

City Stockist receives the order

Inventory counting happens

Package for separate stores are prepared

Stores receive the packages

Inventory counting happens

Payment is made Items are

arranged in assigned pallets

Distribution Flow : Emergency

Orders

Store Manager orders online, based on the inventory count and flash sales

Manufacturer at New-Delhi accumulates order

Dispatches the order to the store through courier or person

Takes lesser time(2-3 days) but more cost

Company owned outlets

Costs mainly in designing

Margins 200% and

above

Employees. inventory based on sq foot of

space

Opening store 60

lacs excluding inventory

Training to

employees

Direct selling to Corporate Retail Chains

of Reliance, Aditya Birla, Mahindra etc.

Online Delivery by Speed Post from Delhi

Franchise Outlets

Margin of 35%

30% of non-

Archies product

permissible

Detailed territorial rights in

the contract

Frequent Surprise Audits

Training

Franchise Outlets

No franchisee outlet within 1.5km radius

No credit offering from

Archies

Authorized to sell to small gift

shops also Advertising support in the form of Brand

and event advertising

Investment

20 Lacs Archies Gallery

10 Lacs Paper Rose Store

Minimum size: 500 sq. feet

Issues of Concern

Shop keeping

Archies products in

Palasia

Shrinkage

avoidance

Service quality at

franchise stores

Stores we visited..!!

Old Palasia

C-21 Mall

Central Mall

Treasure Island

Mall

DB Mall, Bhopal

References

http://www.archiesonline.com/gateway/archies_

superbrand_article.php

http://www.indiacardsgallery.com/Archies-

India.asp

http://www.capitalmarket.com/magazine/cm142

1/capcor.htm

http://www.icmrindia.org/casestudies/catalogue/

Business%20Strategy1/Archies%20The%20Wa

y%20Indians%20Greet%20Business%20Strate

gy.htm