STOrai profiles – EKA (pronounced “Aeka”) which originates from the Sanskrit word ‘EKAM’ – and means “one of a kind”. Or “Ek Prakaar ka” in Hindi. The promoter of EKA – Kimiko Thakur – is as passionate about retail as she is about building a sustainable business.
Designed to enrich spaces and lifestyles, EKA’s products are handcrafted from natural materials and sourced directly from traditional artisans, NGOs engaged in preserving Indian art forms or select manufacturers who custom craft products. Many of the products are exclusively featured – EKA features handcrafted furniture, carved icons, stylized sculpture, apparel, accessories, jewelry and incense. The target audience is the “Global Indian” segment as well the expatriate community in Bangalore.
Having spent 5 years in a ‘corporate communications’ role, Kimiko started EKA 14 years ago- a 1000 sq. feet store at Ulsoor in Bangalore. Since then, she has opened a larger (5000 sq. ft.) store at Jayanagar in Bangalore, and believes that the Bangalore market can absorb up to 6 such stores.
Sustainable Design
The Ulsoor store was redesigned to a ground floor property with an open floor plan. Store layout is designed to showcase product, the ‘star’ of the show. Kimiko’s objective was to create flow which showcases to Indian sensibilities, and invites customers to engage with the merchandise. Layout in the store is clean and functional, with multiple focal points.
Shelving is based on ‘slat-wall’ – this avoids a ‘hardware’ steel and chrome look, and is flexible for differ
ent sized product ranges. Materials used including paint, glass and the floor are eco-friendly, maximize the use of natural light, and have the added advantage of saving up to33% on power bills.
EKA has invested in design, and hired DFC (Design for Change) for the Ulsoor renovation.
The move paid off, and Eka was included among the 60 most exciting and successful small stores – handpicked from around the world. The store was featured in ‘Retail Spaces’ – published by the editors of Retail Design International– in 2012 and 2013.
The constraints of Exclusivity
EKA’s focus on one-of-a-kind product does create some constraints. It’s not always possible for the company to tap into the lucrative Corporate Gifting market. “Most corporates want ‘one-of-a-kind’ merchandise in bulk – but they usually wait till the last minute to place their orders. Since we deal in genuinely exclusive merchandise, lead times are long.”, says Kimiko. The company has not created a catalogue for the same reason.
Kimiko spends most of he
r time sourcing product. Her supply comes from traditional artisans, other designers as well as the surplus stock of international exporters. Customers expect stock to be exclusive and different. That means greater pressure to refresh and replenish design. As a consequence, she spends half her time travelling to fairs, exhibitions and meeting with NGO’s and artisans guilds to source product. Her experience has been variable – some of the NGO’s and guilds are unable to deliver steady quality, some are able to design to specification. Export surplus stock is another source of product – and she works with companies who are focused exclusively on overseas market. “EKA absorbs their surplus stock”, she says, “They know that they cannot hold surplus inventory, as the local market will copy design. By working with us, it creates a win-win – we get great quality product and they get a channel to dispose surplus stock”.
Finding good people has been a challenge. “It’s not easy to attract and groom good store managers”, she says. Store operations are lean – a senior manager / assistant manager and one or two sales staff. “We need people who are genuinely passionate about ‘ethnic’, design, and the concept of exclusivity. They need to be able to hold their own in conversations with our customer segment who are typically, up market, and cosmopolitan in their outlook”.
Business priorities
Current business priorities are around creating a multi-channel offering. “One-of-a-kind design means that I have to block inventory for the online channel”, says Kimiko. “We are also learning how to price for the online channel – unlike other e-tailers, we don’t discount. By definition, exclusivity means a price premium. In addition, our merchandise is not ‘delivery friendly’ and we don’t build inventory”. She believes it’s possible for a market like Bangalore to absorb an additional 4 stores and a few ‘satellite’ or mini branches.
Funding to build scale is a second priority. Kimiko does not intend to raise money from Angel / VC funding in the near future. “If I raise money now, I will have to dilute the brand at a valuation which is not yet attractive. We are keen to grow at our own pace, and build a brand based on our core value of exclusivity and product”, she says.
Building Brand India
Growing the brand beyond the city of Bangalore and becoming a national brand is Kimiko’s vision for EKA. “I see a future in which Eka could be the brand you equate with the values of ‘Ethnic’ and ‘Indian’. Our products are not mass produced or freely available, yet we represent Ethnic India. I want to grow our brand beyond Bangalore and be the top-of-mind brand, when people think about ‘Indianness’. Our passion is to work with designers who are ready to invest their skills into the magic that Eka creates”.
Every retailer knows the importance of Music in the stores. It enhances ambience and research also shows that music motivates shoppers to prolong their stay in-store – indirectly increasing cash-memo size.
For Indian Retailers, playing music in-store requires obtaining a Public Performance License. The reason for the license, is because the music rights holder has the right to collect fees when their music is used in a commercial environment. This is similar to paying Microsoft for the windows license on your PC.
The licenses required for music Playout in stores have become expensive and at times retailers have faced threats of police action and legal hassles. Let’s understand the details and legalities associated with it.
License applicability depends on what kind of music the retailer wants to play – Popular music from one of the larger music labels is likely to cost more than music made by independent artists. The graphic below simplifies the issue:
There isn’t one all-encompassing license, but three kinds of licenses that are generally available in India.
- Phonographic Performance Limited (PPL) represents some large music labels like T Series, Sony, Universal etc and you will need their license (Website: http://www.pplindia.org ) ; if you wish to play music from these labels. The list of members of PPL is available on their website.
- Some smaller labels (like YRF, UTV etc) also license directly or through other companies (Novex Communications website: www.novex.in )
- And finally there are independent artists that choose not to align with any music label and instead choose to ally with a service provider for in-store radio service like Radiowalla Network (www.royaltyfree.spotradio.in).
So, the first choice is the library of the music you wish to play and depending on the same you go for the license.
One jargon that you will keep coming across when you talk about Music playout licenses is IPRS.
What is IPRS?
Indian Performing Rights Society (IPRS) is a society that represents the rights of artists and the composers. Legal experts say that IPRS is required incase of a live performance only. However, IPRS has served notices on some retail chains about taking IPRS licenses in case you are playing any music from the members of IPRS. We would suggest that you speak to your legal team for a clarification in this respect.
Costs
Let us now deal with the most important factor about availing licenses – the cost. Not all licenses cost the same; they vary a great deal as the music libraries are different. As a thumb rule, PPL is the most expensive. The costs also vary with the store size and the number of stores contracted.
Generally independent music is the most economical form of music license available while it provides a huge library of music designed for retail stores. The question to ask is do you need popular music or good music in the store? Talking of paid music let us also share that there is something called Royalty free music too; Any music that is not part of library of a Performance Rights Organization (PRO) – (e.g. PPL/Novex/ IPRS) is called royalty free music. This is music composed by independent artists or musicians that are not aligned to the major music labels.
The retailer does not need a PPL or IPRS license to play royalty free music. Royalty Free music from Spot Radio is not part of the library of any PRO in India and hence, you won’t need any separate license for playing this music. A certificate of service is issued to individual stores indicating the use of royalty free music for the in store radio service in that store.
So hope we have set the symphony right for you when it comes to Music Playout licenses.
The article is penned by Mr Harpreet Singh, COO – Spotradio, Radiowalla Network Pvt. Ltd
About Radiowalla Network Pvt. Ltd. (R. N. P. L): Founded in 2011 & head quartered in Bangalore, is a young company in the business of creating innovative Internet Based, Customized Radio Solutions for retail outlets, corporate offices & Education Institutes.
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