Music World is planning to add 50 to 60 outlets across the country in the next three years. The music retail chain of RPG Enterprises is also planning to go for private placement in a few months time to fund the expansion. For now, it has tied-up with coffee retail chain Qwikys to explore the possibility of opening stores jointly and reduce the risk of retailing in smaller towns.
Music World Entertainment Limited wants to be present in all towns with population above five lakh. If the expansion comes through as planned, the company expects to double its turnover by 2004 to Rs 120 crore from the present Rs 60 crore.
Music World Entertainment Limited plan to go in for a private placement in five to six months and an initial public offering (IPO) only after 2004. It is not yet decided which of the promoters would offload their stake for private placement. While Spencer & Co holds 57 per cent stake in the company, Saregama has 47 per cent.
The company is considering the franchisee route for future expansion, whereas now 14 out of its 15 stores are company-owned. The 15 outlets are spread across nine cities - three each in Bangalore and Hyderabad, two each in Delhi and Chennai and one each in Kolkata, Chandigarh, Ahmedabad, Kochi and Pune.
Meanwhile, as per the agreement with Qwiky’s, is to be present as a shop-in-shop in the coffee-chain’s outlets, whereas Qwiky’s kiosks/islands would be present in Music World. The music retail chain is also looking at exploring opportunities together with the coffee retail chain, to reduce the risk of retailing in small towns.
Music World is also talking to other retail chains for shop-in-shop arrangements. It is already present in two Lifestyle stores and two Shopper’s Stop outlets. It has also taken over the management of Hamara CD.com as its master franchisee.
The retail-chain has launched the ‘masti Card’- a consumer loyalty-cum-rewards programme in Chennai, which would be rolled out to other cities shortly. The co-branded card (with Expressions of ITC), offers special discounts at a cross-section of retail establishments in the city including Dominos Pizza, VLCC, Oyzterbay, Chola Sheraton, Reebok, Titan, Music World, Health & Glow, Loluis Philippe, Klub 53, MGM among others.
The card will be available exclusively in all Music World outlets and any person who bills to the value of Rs 300 and above can acquire it on an additional payment of Rs 50. In addition, every Masti cardholder gets the highest discount in the month of his/her birthday, 11 per cent a month before and one per cent a month after the birthday and so on.