Baggit to foray into jewellery segment, plans 500 new stores

Handbag and accessories brand Baggit plans to expand its product offering and launch a jewellery line. The brand also aims to open 500 new brick-and-mortar stores in the coming five years at a rate of around five new stores each month.

“We have launched luggage recently, and it is becoming a key part of our product lineup,” Baggit’s founder Nina Lekhi told India Retailing in an interview. “It is available online and will soon be stocked in exclusive outlets and large format stores as well. In the future, we are planning to expand into jewellery, with the launch expected within the next quarter, and maybe footwear later.”
 
By expanding its product offering, Baggit aims to connect with new consumer demographics. The brand recently opened its 100th brick-and-mortar store in Vijayawada and has crossed a valuation of Rs 100 crore.
 
For its next phase of offline expansion, Baggit aims to focus on franchise partnerships. Of its current total of 100 stores, 45 operate under franchise agreements and Baggit aims to launch four to five new franchise outlets per month. Along with its exclusive brand outlets, Baggit also retails through its network of over 30 distributors which links it with a mix of small, independent stores and large scale regional stores.
 
“We find it relatively easy to secure franchises because many new store openings are initiated by existing franchisees who find the business profitable,” said Lekhi. “Franchisees are not expected to take on inventory risk; instead, they provide a security deposit. We determine the inventory selection for each store based on location profiles and customer preferences.”