In conversation with Sumit Israni, Managing Director and Creative Head of Gitanjali Salon, about expansion in Raipur and the small town market, he talked about the company’s expansion strategy, changing consumer preferences and plans for the coming years.
Why chose Raipur for expansion?
Sumit Israni: We believe that a significant portion of consumer growth in India will now come from markets outside metros. The income, aspirations and spending preferences of people in Tier-2 and Tier-3 cities are changing.
With a strong business base in Raipur, the lifestyle of the city is also changing. We felt that there was enough potential for the beauty and personal care market here. This is the reason why we included Raipur in our expansion plan.
How do you see the changing preferences of Raipur consumers?
Sumit Israni: Consumers are more informed than ever before. They do not just look at the availability of a service, but also the quality, expertise and experience.
Social media and digital platforms have also made people aware of new trends and options. Customers in small towns are also now aware of trends and services that were earlier primarily associated with big cities.
What was the reason for choosing Zora Mall for the first salon in Raipur?
Sumit Israni: When starting out in a new city, location is important for us. Zora Mall is one of the premier lifestyle spaces of Raipur and is accessible to people from different parts of the city.
We kept in mind aspects like visibility, accessibility and surrounding consumer profile while choosing the location. This place seemed appropriate for our start in Raipur.
How do you see the prospects of the beauty industry in tier-2 and tier-3 cities?
Sumit Israni: There is still a lot of scope in these cities. Consumer expectations are changing and they are paying more attention to their personal care than before.
According to me, in the coming times, small cities should not be seen only as a market coming after big cities. A strong consumer base is being created locally in many cities and this is creating new opportunities for companies.
What will be the expansion strategy of Gitanjali in the next 3 to 5 years?
Sumit Israni: Our focus will be on expanding our presence in different parts of India, in which tier-2 and tier-3 cities will play an important role.
However, the challenge with expansion is how to maintain consistency in service and experience while operating in different cities. Our endeavor will be to work in new markets by understanding the needs of local consumers while maintaining the standards by which people know us.
In the coming years, we aim to reach more cities and continuously evolve our strategy in line with the changing Indian consumer market.