India's retail sector with a growth figure of 35 per cent a year, is, indeed booming. And doing some unique work in the sector is Restore Solutions, which provides store brands end-to-end solutions for their spaces.

Be it visual merchandising or retail store design, Restore Solutions bridges innovation and practical usability in a confluence of aesthetically pleasing design with maximum functional usability.

Anirudha Mukhedkar, the founder of Restore Solutions has 18 years' experience in branding and design industry, which includes working with top firms in India and on brands such as Allen Solly, Arrow, Lee, Scullers, Indigo Nation and Megamart.

Some of the clients of Restore Solutions include Fossil India, Arvind Mills [Get Quote], Max, Indus League, Scullers, OysterBay, Ruggers, Colt, Megamart, Indigo Nation and Urban Yoga.

In an interview, with contributing editor, Shobha Warrier, Mukhedkar talks about his company, retail designs and India's retail sector in general

Did India's retail boom encourage you to start a company like Restore Solutions?

The reason Restore Solutions was born is not really rooted in the boom.

While the industry was booming, all our research showed that 'brands' were not appropriately interpreted in the retail environment. We all know how crucial differentiation is in this business, and we also know that 'brands' are possibly the most honest and best way to differentiate.

We found that this was not happening in the retail design industry.

Our expertise in understanding and articulating 'brands' and interpreting their values for the retail environments, put us in a superb position to leverage this opportunity.

What exactly is retail design and how will it help the sector?

Retail design supports in building and enhancing a brand to resonate well with its end customers.

It's all about unleashing or unlocking a brand.

Creating and providing a distinctive value addition and an enjoyable shopping experience to the shopper is largely dependent on the way the retail environment is designed.

Do you offer end-to-end solution to anyone who wants to get into retailing?

Our core expertise lies in understanding and articulating clear brands, which becomes the source of inspiration for the end-to-end offering.

Yes, we offer end-to-end solution in design and strategy to retail stores. When we talk about end-to-end, it means connecting with the customer from the first touch point which in all likelihood will be the shop window to the final touch point which will be the shopping bag the customer carries their merchandise in.

We provide design and strategy services for visual merchandising, which means the look and feel of the store, the way the merchandise is displayed to designing products and fixtures for the retail store. Besides that we also consult our clients on the tags and trims that get on the merchandise.

Most importantly, we are not a 'strategy document company' even though 'strategy' is such a big part of what we do.

Our end product is the tangible creative output we produce for clients so that their consumers might experience a differentiated brand.

Is there not an unnecessary hype about the growing retail market in India and also the Indian middle class' spending power?

There is no doubt that the disposable incomes in the middle classes have gone up.

There is also a significant change in the age demographic. India is becoming younger. And India is becoming richer. These young Indians are going to exercise their right to choose from a wider range of products and brands, for better shopping experiences.

Marketers have realised that retail environments and the quality of experience is going to be a huge part of the 'value addition' that brands can provide. And therefore this mad rush to invest in retail.

Do you feel people are just jumping to retail, opening shops and losing money in the bargain?

Absolutely right. All those who are not going beyond back of the envelope business plans are definitely going to find it hard to make money.

One of the key aspects of any business plan is an estimation of consumer demand for goods and service. This cannot be based on sentiment or mob forecasting. This has to be based on a sound understanding of the consumer plus a great desire to create and provide differentiated value.

If you do not have consumer welfare at the core of your strategy, it is impossible for you to make money. 

Hemu Ramaiah who started Landmark in India said in an interview to rediff that if four are successful, 10 are unsuccessful in retailing. Your comments.

The joke we have internally is that, retail strategy is directly proportional to the margins in the business.

A lot of companies are using the lack of margins as an excuse to build a business that is devoid of strategy. I can understand, low margins means lower advertising and promotions. But there is no excuse for not having a strategy.

Today in the street where I live there are over six grocery super stores, all catering to the same catchment. Moreover, there is nothing unique or compelling about any of them. They are all selling the same products, and and at the same MRP. And all are equally poor in the quality of service.

It is safe to say that every single company that does not have a strategy to provide consumers value-add, will be unsuccessful.

Where is the retail sector in India heading?

I am hoping that the mad frenzy will now be tempered with a sense of a measured and mature approach that is grounded in business basics; which is to create strong differentiated brands with a clear sense of purpose.

Profits are an outcome of your beliefs. Companies that do not have a clear belief or point of view, will die.

Do you see the bubble bursting soon?

The current inflationary conditions coupled with a turbulent market means many things.

But most of all, it means that consumers will now become more demanding. I am fairly certain there are only a handful of business plans that have accounted for a demanding consumer.

Most businesses have been built on the statistical hope that Indian retail is largely unorganised and therefore, some or any form of organisation is the formula for profit.

I can't say much about the impending bursting of any bubble. But in my view, there will be corrections. And I have to admit, that it will be good!