The expansion is expected to incur no additional costs as the company will continue to work with the same channel partners, says Varun Moolchandani, Executive Director, Archies
Aimed at targeting regions where the Indian community has a strong presence, Archies, a brand in the social expression industry, has set its sights on global expansion, with markets like the Middle East, United Kingdom (UK), Canada, and Southeast Asia on the radar. The company also plans to have 15 to 20 new company-owned stores by the end of FY25 to strengthen its domestic roots.
As the company reported around Rs 6 crore in sales through platforms like Blinkit, Zepto, and Swiggy Instamart, now the brand has set an ambitious target of Rs 15 to Rs 18 crore for the current financial year (FY25), aiming for 150 per cent to 180 per cent growth.
“We are not just responding to trends, we are shaping them. The way people shop is changing rapidly, our quick commerce partnerships are just the beginning as we look to combine speed with the emotional connection that Archies has always represented,” stated Varun Moolchandani, Executive Director, Archies.
Global Expansion Plans
Since the company is aiming to enter countries where the Indian diaspora is heavily represented, Archies plans to tap into these regions through channel partners.
Explaining the timing of such an expansion plan, the Executive Director said, “This expansion is timed strategically to serve the increasing number of non-resident Indians (NRIs) living overseas, especially those who celebrate Indian holidays. Now is the ideal time to broaden our horizons since we can offer them products and experiences that inspire sentimentality and a sense of belonging to their origins.”
As far as the costs of the expansions are concerned, Moolchandani mentioned that the expansion is expected to incur no additional costs as they will continue working with the same channel partners and are also actively exploring new partners with no significant additional expenditure.
Closing The North Indian Gap
The brand is aiming to open around 15 to 20 new company-owned stores by the end of FY25, with the focus being the prime locations in malls and high-end streets across north India. Moolchandani explained that the reason for choosing north India as the location is because many of the brand’s stores there had to close due to the Covid-19 pandemic.
“We are currently trying to close this gap in the market by reopening in prime areas like malls and high-end streets,” he added while stating that the estimated capital expenditure (capex) for this expansion is around Rs 15 to 20 lakh.
The Game Of Brand Positioning
As the company has embarked on a journey to expand globally, it has also tighten its belts to tackle the challenges. The executive director has highlighted several key aspects that are crucial during the journey, ranging from brand positioning and selection of channels.
“One key challenge is making sure the brand is properly positioned in diverse international markets where customer expectations and behaviour may differ from those in domestic markets. Secondly, selecting the appropriate channel partners is another obstacle that must be overcome to guarantee seamless distribution and brand exposure,” Moolchandani elaborated regarding the challenges.
The print and pack division of the brand reported a revenue of Rs 22 crore in FY24 from both domestic and exports, reflecting a 36 per cent growth from this fiscal year. The brand has expected the number to increase to Rs 30 crore by the end of the current financial year.
