Retail India: Woolworth's Dick Smith Electronics Enters India With TATA in Consumer Durables
Australia's Woolworth's Ltd has finalized its plans to enter India with its Dick Smith Electronics Chain of Stores in a Joint Venture with TATA.
According to the initial plans, TATA would own and operate the Retail Business whilst Woolworths manages the Wholesale Business. Woolworths Chief Executive Roger Corbett has clearly stated this is just an initial expansion into new markets beyond Australia and he was excited to enter India. It is also very clear this would be a testing ground to see if the business model would be viable and profitable. The number of stores and regions are yet to be slated out but the entry is confirmed.
India might see its first International enterant in Consumer Durable Retailing which is largely dominated by the organized sector contributing close to 95% to 97%. The major players in consumer durables retailing are Vivek Limited, Vijay Sales and Vasanth & Co.
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About Dick Smith Electronics:
About Us
Founded on the philosophy of customer service, the success of Dick Smith Electronics is dependent on building and maintaining customer loyalty and providing customers with the latest technology, quality products, competitive prices, backed up with after sales support.
History
In 1968, a young electronics technician named Dick Smith opened a car radio installation business in Artarmon, a suburb of Sydney. The business began in tiny rented premises beneath a car park, but due largely to good customer service and Dick Smith's flair for gaining publicity, it soon flourished and in 1969 it moved to larger premises.
By 1980 the company expanded to over 20 stores and grew so much that working capital could no longer be supplied by Dick Smith alone. As a consequence he sold a 60% share holding to the big Australian retail chain, Woolworths, and in 1982 he sold the balance to them. From that point on the company has continued to grow and flourish at an impressive rate.
Interestingly, when Woolworths bought out the company, it also bought the rights to the familiar black and yellow logo which incorporated the name and face of Dick Smith. Research showed that the public felt comfortable and secure with a company that had become one of Australia's retail success stories. This is still true today which is why the face and name of Dick Smith is still strongly connected with the company.
Growth
Throughout the '80s and '90s the company has continued to grow. The past five years in particular have seen very visible changes reflected in: greater product diversification with more emphasis being placed on consumer electronics such as computers, mobile phones, fax machines and audio; total redesign of corporate colours and store interiors; the introduction of preferred dress for sales staff; and the opening of six to ten new stores per year.
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