Godrej & Boyce unveils expansion plan, targets tier-2 and tier-3 cities to meet growing consumer demand

Godrej & Boyce, the flagship company of the Godrej Group, is getting ready to change the the consumer landscape in tier-2 and tier-3 cities with an ambitious expansion plan, by 2027.

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  • Storyboard18,
| February 5, 2024 , 6:15 pm
This move by Godrej & Boyce positions the company to capitalize on the growing aspiration and digital payment-driven demand in smaller cities and towns (Representative Image: Vardan Papikyan via Unsplash)
This move by Godrej & Boyce positions the company to capitalize on the growing aspiration and digital payment-driven demand in smaller cities and towns (Representative Image: Vardan Papikyan via Unsplash)

Godrej & Boyce, the Godrej Group’s flagship company, has announced plans to expand the distribution of its various consumer businesses in tier-2 and tier-3 markets by the fiscal year 2027. The move aligns with the brand’s target of catering to consumers’ changing needs and tap into the growing demand in smaller cities and towns. This broad initiative includes Godrej Appliances, Godrej Security Solutions, Godrej Interior, and Godrej Locks.

Anil Verma, CEO and Executive Director of Godrej & Boyce, outlined the company’s vision, stating, that they are going to operate into tier-2 and -3 cities by improving their network and online presence through our industries. he also added that the towns have been driving the growth of premium products and services, fueled by ambitious consumer demands and digital payment methods. “We intend to expand our footprint to over 400 towns by FY27 to meet changing consumer demands”.

This expansion strategy takes a holistic approach, using organized retail stores specializing in hardware, furniture, and appliances. Additionally, local outlets will also have an important role in attracting potential buyers through sales strategies. Verma highlighted the importance of creating a detailed plan for each consumer-facing business that uses a variety of channels, such as stores, distributor-retailer networks, multi-brand outlets, modern trade outlets, traditional channels, and e-commerce platforms.

Overall, Godrej Appliances intends to expand its presence by increasing the number of exclusive brand and brand outlets. Simultaneously, Godrej Interio plans to open more than 100 stores outside of major cities each year, demonstrating its commitment to reaching new markets. By FY27, Godrej Security Solutions expects to have more than 6,000 stores, more than doubling its current number. Meanwhile, Godrej Locks and Architectural Fittings aims to expand its presence to 600 cities, including a network of 14,000 stores over the same time.

This expansion is aligned with the ongoing trend of premiumization across multiple consumer categories. Verma noted that Indian consumers are becoming more selective in their purchasing decisions, looking for brands that align with their values. Consumers actively seek superior-quality offerings and innovative products, showing a visible desire for premium products and elevated experiences.

This move by Godrej & Boyce positions the company to capitalize on the growing aspiration and digital payment-driven demand in smaller cities and towns. As the company prepares to expand its presence across more than 400 towns, the consumer landscape in tier 2 and tier 3 cities can expect a major increase of Godrej brands and offerings, elevating the overall customer experience.

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