Shopper's Stop Limited - Securities and Exchange Board of India

Our arrangements with our vendors
We have various types of arrangements with our vendors for the merchandise they supply to us. These
include:
Bought Out Merchandise
We purchase the merchandise from the vendor under this arrangement, and hence own the inventory. All
our private label products and some of the brands that we retail form part of this arrangement.
Merchandise on Consignment Basis
Under this arrangement, the consignor remains the owner of the inventory and bears all inventory related
risks. All unsold stock can be returned to the consignor, with our responsibility being limited to stock that
may get damaged or lost while in our warehouses or stores. The consignor receives the payment for the
merchandise only after it is sold.
Other Arrangements
In order to provide our customers with an enhanced range of products and services, which require
specialized skills, we also enter into Conducting and Concessionaire arrangements. This also helps us
shift our risks on inventory.
Concessionaires
These are arrangements under which we provide our concessionaires with a demarcated space within
our store to sell its products. The concessionaire is responsible for its inventory and also employs its own
staff at its counters. We monitor the product range as well as the sales staff to ensure consistency with
the Shoppers’ Stop offering. The concessionaire uses our billing and cash collection system. We get a
percentage of sales under such arrangements, with a fixed minimum amount.
Conducting arrangements
Under this arrangement, we permit others to conduct their business in our stores in demarcated areas,
and in return pay us a conducting fee. The conductor has its own billing and cash collection system, and
independently manages its operations. The conducting fee that we receive from such arrangements is
generally fixed as a percentage of the revenues generated by the conductor subject to a fixed minimum
amount.
Advertising & Promotions
Our advertising strategy is based on creating a bond with the customer and enhancing their trust in
Shoppers’ Stop. Our advertisements thus promote the Shoppers’ Stop brand and moods and not the
merchandise, store or the property location. We extensively use promotions and events to further our
relationship with our customers. We have a central marketing team at our service office in Mumbai,
supported by representatives at our stores.
Promotions
We use promotions as an important part of our marketing tool to reinforce the brand positioning ‘Feel the
experience, while you shop’. The promotions are targeted at enhancing the fun in shopping and providing
the customer with a unique shopping experience and not just on offering discounts and bargains. Our
belief is to give more for same and not same for less.
We plan our annual promotions calendar and carry out these promotions simultaneously across all our
stores.
Some of our promotions and events include:
• Parikrama: Festival celebrating Indian tradition and culture, which not only serves to bring the
consumers closer to culture, but also provides a platform to promote upcoming artisans from remote
and rural areas giving them an opportunity to showcase their art and craft at Shoppers’ Stop.
• Men in Vogue: Event showcasing apparel and accessories for men with offers ranging from gifts to
trips to international destinations and discounts etc. with every buy that they make. The event serves
to bring men into the stores.
• Wardrobe Exchange: A charity promotion under which customers donate their old garments and
accessories and earn discounts on new purchases at Shoppers' Stop. The old garments are donated
to Concern India Foundation.
Besides these, we have organized several other festivals such as:
• Disney Carnival, in 1993, with official Disney characters from Disney Inc (Mickey, Minnie,
Donald and Goofy) participating.
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