BT Dot.com: Q&A: Rajesh Nahar, Co-founder & COO, Chennai bazaar.com

DOT.COM: Q&A
''We Have Our Vision Intact''

Rajesh Nahar, Co-founder & COO, Chennai bazaar.com chats with BT's Nitya Varadarajan on the secrets behind the dotcom's low-profile ride, and its roadmap for future.

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Waiting With A New Bouquet

How do you explain your low-profile style in the loud B2C segment?

Well, we wished to be prudent and planned carefully for returns even as we learned the business. In the first six months we found that our start-up model of delivery to Chennai customers was not working. So, we switched to serving the NRI community. Since we were among the earliest in the field, we could create an awareness without much ad spend.

RAJESH NAHAR, COO, Chennaibazaar.com: Simplicity sells

Chennaibazaar has been perceived to be expanding a bit too slowly...

After a year of successful operations, just when we were ready to expand, the dotcom market crashed (mid-2000). But we are optimistic now of mobilising funds for our expansion. In three years you will find us bigger, because our roots are well established.

Repeat shopping has been one factor that seems to have helped you survive. What is the secret behind this stickiness?

The credit goes to our customer care team. They have been largely responsible for managing the 8,000 registered customers (growing at the rate of 200 a month through references; with a 70 per cent stickiness). We respond to queries on time; we source our merchandise well; and we maintain the delivery schedules expected of us.

How's your UK biz going? Have you tied up with any partners?

Inside Chennaibazaar

FOUNDED: December, 1998

WORKFORCE: 12

REVENUES (March, 2001):
Rs 65 lakhs

USP: Excellent customer relationships

FUTURE: Focus on global operations; targetting a 300 per cent growth in revenues in FY01

Ritesh Katariya (the other co-founder) and I plan to run the UK business ourselves. The UK strategy to get customers and keep them, is quite different from what is being done with US customers. I have spent six months there studying the psyche of the typical UK customer, and business plans are being tailored accordingly. If there are no obstacles, the business will take off in July. I am trying to build a strong team for this operation.

What about your plans to change name to reachhindustan.com? Don't you think you will loose out on brand value once you do away with Chennaibazaar?

The rechristening will coincide with our UK launch. Existing customers will be able to reach us through the old URL too. On the web we will explain the name change and the old name will be gradually phased out. Chennaibazaar has to go because the immediate association is that we operate only in Chennai while we already deliver across 40 towns and cities.

What does the future look like? How do you plan to fund your new forays?

We have our vision intact. First, we will hit the UK market. After that we will enhance our reach from the current 40 centres across the country (depending on NRI requirements). Then we will go international-where a UK person will ask for a gift to be delivered to some one in the US, for example. The focus will continue to be the Indian diaspora in various places. If we do not get immediate funding, there may at worst be a slowdown in our plans...but nothing can stop us, that is for sure.

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