CEAT Tyres is considering to double its retail outlets - 100 CEAT Shoppes within the timeline of next two years as it has decided to "ride with the wind" that is the rising demand for personal mobility in small towns and cities.
As a result of this focus of the company, the RPG group of the firm has decided to open retail outlets - 100 CEAT Shoppes in smaller towns and cities of the country within the next two years. Interestingly, this would be the company's biggest expansion in its history. The company is considering keenly to increase the number of outlets from 300 to 600 said Arnab Banerjee, chief operating officer, CEAT Tyres
"There is a strong preference for personal vehicles both in smaller and bigger towns - whether it's a second-hand car and two-wheeler or a brand new one. This secular trend across the country has boosted demand for tyres," said Banerjee.
Also See:CEAT Tyre Introduces All Women Operated Shoppes
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The new upcoming stores of the company are said to be more compact with latest technologies compared to its existing larger store formats located in metro cities and towns of our country. Banerjee stated that the company's focus is not only to establish Sales outlets instead it is also focusing on enhancing the customer experience through these sales outlets- "We will be doing a pre and post-purchase analysis by documenting the service experience of customers who walk into these stores. This will help in establishing a one-to-one connect with the customers," explained Banerjee.
CEAT will invest Rs 30-35 crore in setting up these outlets, other expenses including marketing and communication will be taken care by the franchisee partner.
Also Read: JK Tyre Partners With Car Dekho And Auto Brix
Regarding CEATs business, Banerjee stated the it has been operating at over 90 per cent capacity. The demand for both passenger vehicles and two-wheelers from automakers and the replacement market is holding up great. "We expect capacity utilisation to remain at an elevated level despite the ongoing ramp up. We are entering a high growth phase," said Banerjee alluding to the June quarter which is typically a high demand quarter for tyres.
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