Luxury Hotels Secrets : Sales, Clients, Profits, Marketing & China | Kimirica | FO417 Raj Shamani

34:42But I think this could be better which will give you consumer a better value. And consumer today there are many reports that more than 60 % of consumers when they check into hotel room they open the bathroom and see what toiletries are kept there it is a product of which gives you surprise, value addition and exclusivity sense so we focused on these parts and you have to learn the consumer mindset first of all, let's study the consumer what's the consumer profiling what's the type of hotel what's the brand what's the business class hotel what's the resort wellness property sell our spy essentials collection colorful property self elements so this whole framework broughtly when I was myself the framework was making it so that there are larger teams and then when meetings we started we started talking on each and every attribute when you are small you have to show very little things but what my thought was at that time I didn't give a presentation on PPT or on Keynote there was a very fancy application called Prezi you didn't use it?

35:54No. And in that time, it was very hard. Oh, the procedure flowed out. Flowed out. PPT didn't. Flowed out. I remember. When I was studying, I had a speaker that had shown the presentation. And again, being a designer, I thought, what did I show you? That you first show camera, then you zoom in K, kind of products. Then you zoom out and then you know M. This was so amazing. people were watching presentations and they said how did this make it happen I will tell you later I will tell you first so we used these kind of things to you know to make them feel confident and happy that they are doing something and they are making trust this was the overall thing which we wanted to do after the presentation there were boxes the product is coming out of 4 bottles but there was a collection French note so it's so big acrylic in this way I was going to make acrylic in this way I was engraving the French note black color and white color and all the table were put on all the tables and people came to the room so they came to the sir I was request please sit take your seats you can listen to me 30 minutes in the beginning and what did you think when I started the presentation people how do you do this how do you do this how do you do this how do you do this so I said After that I learned how to speak.

37:23I said, sir, you have to listen to me in 30 minutes. Maybe the presentation is finished. You will get all the answers. And the presentation started. I started opening one box before. I started to cover company introduction. In these soft stories, which are true today, Kimmerika's name's story, and how we started. these things really work because people have credibility that they are genuinely trying to do it today it's not so big but it's true so you have to convince yourself so start the presentation with key USPs what difference in our product you won't believe in 2012-2013 vegan paraben free there was no one no one didn't listen to it I was living in one year and I saw trends coming up and Paraben is going to be banned in India.

38:23We became the first company in India to launch Paraben free hotel toiletries. We became the first company to launch PETA certified vegan toiletries. And how did we get the vegan? It's a Jain. I didn't eat any of it. So I thought that when we don't consume we have to put it in the product. It's the last thing. How can we use that little decision also to make it a marketing point which is true right we spoke to Peter they gave a certificate we became a certified company nice so I used to talk about these USPs of product formulations certifications that we have and then started talking on products this is the first collection and why we think this is best for your hotel because we have studied your hotel and this is you are a French hotel and the French note perfectly fits and they were like wow what have you thought I think these small things really before going to the end Before going to the hotel, there is a small point.

39:17I had to meet them all. They are very professional people. A lot of hotels have no gifting policy, which is quite fair. So, I used to take Indori, Agrawal Suites, and the Seon and Michar. I used to take SOP. I used to take this. because the first thing is it is totally local and I am proudly saying that it is coming from my city from my Andorra and Andorra is famous and I was always saying that sir don't give me I used to always say that sir there is no price what price is this package I mean it is a little bribe and I have come from Andorra and freshly my mind was coming so I would love it so I used to take these things and I was watching my product samples but I took this thing and they loved it now I have some manager GMs they say we have used

40:23all of those because you don't need to make a strategy it just comes out I think these all things really help to crack those first set of 10-15 clients. Harsh bhi to hota hooga bhoat baar. Woh actually aapko sunte hain, itna time dete hain, 30 minutes dete hain, itna pyaar se karte hain ki bich bich mein toke dete hain. Ki bich mein toke bhi dete hain, phir uske baad as a vendor aapko drag karte chal kala na, aray bharas, aray bhoat time hoogaya, bore hoogaya, aapki company kare bhand kare ho, like thudhe batta meese bhi toh hoogay loog. Hume nne pahele toh bhoat alag thara ka business karne ka decent bna liya.

41:04you know that we will supply in 5 star hotels in a lot of these hotels this is a very niche especially when it was not cool like when you guys made it now it now it feels like what obvious thing was it so many hotels nobody did it but no now what happens that you never went to 5 star hotels before and when you come to a first time when you come to a Leela Mumbai or Ritz Carlton then you get a common man you get a lot of people that you know what is going on that you mean

41:40I remember my first time I and my father went to a five-star hotel And very later I think I was going to be 18 years old 19 years old That was the first five-star hotel And we went to a hotel And in the room They had two bottles Complimentary water we didn't open it because we were scared that this is 4 opened it then 500 rupees we didn't get it we didn't get it we didn't get it touch touch touch touch touch touch touch touch I'm like educated modern I'm like first time it's true I get your point I'm like order I'm like 4 levels I'm thinking about coming and thinking about it What do you do? I'm asking for money I'm going to go to a new channel I'm not going to go to a new channel I'm not going to do it I'm a startup Now I buy a product from us At the beginning of my opinion At the beginning of my question I asked for curiosity Some people have been asking me I said that the hotel They have to eat many money Purchase They have to get an entry They get so big and big contracts So when I started At the first meeting I took a box of Ferro Rosher.

43:02When I was teaching myself to take a napkin, I was going to take a first meeting. I was going to talk about two meetings. I put the rosher in front of him. They opened a rosher. One rosher gave me a rosher. One rosher gave me himself. I said, go back and take it back. After that, don't take it. Why sir? but I said, when I take this gift or this gift, when I see my office, the purchase manager and other people, I don't want to leave an impact, that this is a hotel in business. My intent is not. My intent is not. But I will not tell you, that this is like this. So, I was surprised, I heard something about industry.

43:54But trust me, today we will be 10 ,000 hotels in this country 4 ,000 hotels directly to our team this industry is really very good culture today we don't have to get money to get there today I was amazed a purchase manager never under the table never asked tea, pany bar travel nothing you think you think how big we married 168 hotels in India today the purchase managers didn't have been here 8 days before married we invited I told married this I don't get the purchase managers all in the I want to show them the plan they trust 10 years before where the company is This was the first time that these 100 purchase managers of Merit Visited my plant in Indore So what is that?

45:02Who are these companies? We are seeing a hotel, but who are companies? Merit, Hyatt, Hilton, Accor, Radisson These are the world's big conglomerates Their governance are consulted by the biggest of the consulting of the world Their processes Today they are so strong in their processes in the American brand and you open a small hotel and open a small hotel in the city. So they are very heavy process driven. So they have such tight guidelines in the mentorship program they run within their circles. To not do all this I think is one of the key factors that I have never seen this practice getting followed.

45:41It could be possible in some government organizations we have not done it but we have heard that this will happen. but in professional companies which the hotels I named I never came across any incidents where I have to do something in product quality for the product quality or for the order to get someone to favor. But a couple of other factors which really worked for us import was very big in the country today we were talking about that if there was no initiative and married I would say proudly one of the first organizations which has taken a decision that we are giving a startup in a chain hotel and then all hotels have shown trust and it followed on if it wasn't happening then the country is at least 1500 crore every year import today the whole product of cable hotel and amenities our category is 500 crore but overall category but what is happening that with a spark and a decision many people are growing so we not only open doors for our teams and ourselves but we opened doors for several other startups that someone started wooden products started sleepingers started coffee I am amazed to know that in the room except the capex thing they have got 90 % of the consumables were Indian and we feel so proud that we have now that 90 % import behavior industry we have now stood in India and beyond that Besides, the impact which it has created in giving birth to so many startups, you can see snacks, water bottles, everything is local.

47:25There was a big, and why did anyone think that there is no problem? But I think it's the right time that it was supposed to happen through us. So it happened. And import prices increased. Modiji came in 2014, make in India. So I think all factors worked in your favor. So I think that really helped us to build this.

48:12but product you can understand it the purchase manager was very much in confidence we had to take America house keeping team confidence he came on the table I told him your product is Germany import and I make you the same product but I recommend that you have plastic lavitation I give you aqueous warn because plastic doesn't have recycled I am giving you more arian product on my own ! I gave mine treatment same ... ... ... ... ...

48:53Because I have the same to you and believe your what is the same way So I asked my sister of this, remember whether this, it's not exactly what you are here, you get all the same There is nothing to make about Hi there is no change, that left my anger My anger didn't understand Its I can tell you all I could have told him I could have told him I thought I didn't understand I didn't understand I said okay sir I will do the same but the same pricing is 35 % and the difference is if it will be 20 % I don't need to I don't need to

49:55I have to give him the same product. He paid me more money on that product. but ultimately I also think this is a case of where someone doesn't want to understand, he was very arrogant, he was but it happens to be, but if I say overall, I might say that maybe in my 1000 presentations, maybe 1 or 2 will be when I will do this otherwise the industry is very cultured I have so much sale I mean, I have I had to travel for 175 years. I had to go to Delhi to Delhi, and I bought a car from Mumbai airport, and then I bought a car from Delhi. I started to do it. The first thing was that, the price of flight versus number of meetings.

50:57If you have gone one time, how much can you get to get? Expense to conversion ratio. That ratio was very important. You got to get tickets for 500 ,000 rupees, and you are gone. I remember in the meeting in the morning. I had lunch at the beginning of the meeting. Because it was so important time. Peak time in the meeting. If you have lunch at that time, you can't do that. I started at 9am first meeting. And at 9am to 5am. There were 4-5 meetings. till the end of the day there was no money there was no money and when there was presentation which runs for one hour then two or three presentations has to be there now when we come to sales then definitely we especially go fly for one meeting but teams are there teams are doing now it's different now it's different but very honestly if I show you my sales textbook I start trading my team in a way saying that customer is God you never forget that your salary is coming from where is and the empire is standing up how does this make it?

52:12customer has given you money and the cycle has come from all the cycles you connect to the cycle so I always should tell my team customer is a god today we do existence that customer has given you business he was able he would have been able to do business to any other customer that was a very easy decision so if you have to bankrupt a simple decision to buy from someone else so customer is bad and if someone comes to don't like to give a smile and a laugh so you never have to reply to his reply so I've been in my whole 10-12 years career I've never talked about any customer I've never talked about any customer I have never had a good feeling.

53:03I have never had a bad feeling. I have never had a bad feeling. Because what do you do? You have to lose your temper? You have to satisfy your inner ego? You have to have to listen without listening? I have to have a good feeling. I have to have a good feeling. The other thing, the customer doesn't understand you. But you will understand you tomorrow. Because you are in X hotel group. You will go to Y hotel group. But you will be in the way. Because the fraternity is very closely connected. if you have a bad conversation then that's by him he told the 10 merchant you had a good study then it would be a man if he could go and Thus he questions which one who whoever the top opinion

53:52must be good So, the best part of this industry is that the consumer of the product doesn't take the decision. Because if they are in the hotel, they don't use it. The decision of the product doesn't take the price. So, today, the general manager and the housekeeper typically decides what we should put in hotel to all it is in rooms. Purses Manager को केवल pricing दिखती है कि मुझे तो भाई price आप सही दो तो I'll qualify you कि ऐसर और Director of Rooms और ऐसे कुछ 2-4 रोल जो होते है जो influence करते है तो influencers है और decision maker I think यह broad combination है hotels में जहां पर तो आपको influence उनको एक set category को करना होता है price match match price match match some times this happens that rooms will say UKR I like the product and I need it sir I don't but manager says I need it in the price now this price is imported this he is not ready

55:00to pay that price you can ask your price I need it sometimes it happens they come on our side they step in reverse users talk to their person manager कि यार कुछ midway निकाल लो यार so I think then but after certain time it becomes first meeting के बाइब बिकम्स common decision for everyone जब एक बार अपने परेटेंटे से दे लिए आप सबसे मिल लिए तो सब ही effort डालते हैं buyer, seller, influencer, decision maker सब decision डालते हैं कि यार अगर product पसंद आगे है So how do you do it? You can change the size, color change, but you can change the size. You can change the size. But you can change the size.

55:36But it is. But people, in the hotel industry specifically, have heard that payments didn't come in long time. And you touched that you didn't have a year that you didn't have money. So the biggest name of the chain is the global name. So the longest check for someone's payment was the longest? So at the beginning we had this impression. There were hotels, Pfizer hotels, how many green business are you doing? You know, you get cash, you go to advance booking.com, you get the first money from Make My Trip, you can't do cash flow. So, for the beginning of 6 months, we wanted to buy the money. In the very beginning time, we would say, how cheap are you asking for money?

56:19I think that the answer is not coming. Let's not follow. I said, for 2-3 months, there's no need for money. I said, sir, you have outstanding. You have new order. So we need money. Then they set our culture and started working and it took time. So today I would say 70 % of hotels, again the same factor, which are international groups, or organized chains, they are very tight protocols. So, in their KPI, they wrote that you have to delay any vendor's money. So, everyone has fulfilled their KPI. So, where the organized business is, there is no challenge. But where the independent business is, there is very independent.

57:03In India, there are 50 % hotels and independent hotels. There was a big challenge that you keep following up, message, mail, people get 50-50 emails. The longest I have waited, I think, I think we are still waiting for that payment, even after three years. 3 years from now ultimately we have concluded that sir, no matter what 3 years we have taken vouchers of that hotel payment 12-30 lakhs 20 lakhs 12 lakhs 3-4 years we have taken vouchers 2-3 years 12 lakhs office office people travel in major city in Mumbai what is the average time hotel payments average time is 60 days after delivery or after order from invoice from the point of invoice I have delivery in invoice and delivery 4 days more PO doesn't mean PO if there are hotels we asked for advance that first Our first your roy protagonist becomes your can..

58:16That's how ios do First your's order is advance to that First your 시간이 got 50 % Fifty percent after delivery The third of your delivery release You'll need anything to stir Yes Do you have a rare example I Vamos a Där Which I have diya We used indivolts now Depending in which industry When somebody thinks Who prepared or investors Who disputed It or Others has bought a big resort because we have a business, a village etc. They open in large scale but they would run it like as if they're property. Correct. So today our independent hotel chains market share is reduced. In India, we run a 70 % market share.

59:02When it comes to 4 star, we are less than 15%. When I say 3 star, we are less than 10%. Huge scope still to cover up. I think we have this for us. Payment cycles are protected. And the other thing that we have created is that distribution is our own. So, if we are technically if we are looking at it, we are the biggest hotel suppliers of India. Which we have last realized when we were dealing with this deal. We realized that that we have been talking about that distribution margin which is also a distributor. We have all our own and we have all our own. It's also a value. If there is a distributor and the whole business it's a percent.

59:49And it's a cost and it's a value addition. Transport cost. Then it's all. We have recently realized that we are what we are doing is we are connected to 6 ,800 direct customers. and these customers are behemoth not like customer they are large organizations and we connect to all these purchase managers directly we connect to all the GM's, all the house keepers directly and I think that is the biggest strength what we hold today so 60 days payment cycle direct order etc etc what would the average order size be in a hotel? so again in our case since we right now I would say 60 % business comes from 5 star how many 5 star hotel so 1 5 star hotel typically you can say average 200 street ice room correct the salon order category depends on 5 star there are 2 3 categories that are absolutely luxury so you can Ritz Carlton St.

1:01:04Regis and these hotels or you also give it. After that, you have a category that comes from JW Merritt, JW Merritt, Hilton, and other things. Third category, in the Star Hotel, then you have a Novotel's which are the league. One Boy and Fairfield. Fairfield is very small, Fairfield is 3-star and so, so this is how, I said actually, sorry, what was the question? My question was, what is the average size? The average order size is yearly. Three categories you have told. Ultra luxury, luxury, and then entrance luxury, mass luxury. Correct, correct. So average size of business in a five-star hotel annually varies between 70 lakhs per year one property to 1 lakhs per year per year one property.

1:01:53Now there are also categories. If you buy only liquids from your products, there are two broad categories. Liquid amenities and dry amenities. Liquid amenities mean shampoo, shower gel, lotion, conditioner soap, dry immunity means dental kit, shaving kit which was never in our primary business but we did it but it was done it was never-same-no-wale-adat someone said that you can do dental kit one supply and do it probably what we will probably 101 crore cable dry immunity which was never part of plan so if they are taking liquid then I think 50 lakh rupees a year if they are taking dry then another 20-30 lakh rupees a year so this is broad numbers of order if we come to small utils then N.T.

1:02:46N.T. M.T. per year till the time. But 1 crore, 7 crore, 1 crore, 1 crore, 1 crore, in a base level language. So, 1 crore, just in India, we selected customers. But only 50 lakh rupees. So, there are many products. There are actually 20-22 products. Shampoo, shower, lotion, conditioner, soap, loofah, laundry bag, sleeper. 5-6 lakh rupees and they buy it. So, multiple categories and some products are very expensive. Some are a rental kit. So, a rental kit has a higher price as compared to a shower cap. But then, the entire kit comes to around one crore for luxury five-star and 30-40 lakhs for a mid-level five-star.

1:03:39How many weird demand came here in your hotel? Look, the weirdest demand for the product. Weirdest demand. I heard it all. So, Maldives was a hotel and his phone came to make a kit where we need condoms lubricants and toys and feather and sex toys and we can explain that we don't do it and why we don't do it and we can do it we will do it if we should do it in our mind we should give it presentation nice so we made an entire deck for them I didn't have because of all these so we made an entire deck with them started communicating to vendors who supply condoms vendors who supply sanitary napkins vendors who supply so it was a mix of all these products which are not regularly available in all the hotels but then it was a big deal again 10 years ago, it sounded weird.

1:04:49Then we made beautiful tin box. We gave our intimacy kit. Oh, nice. And then we gave it a lot of graphics. And then we made beautiful. Today we have a lot of hotels. But again, the niche of the niche ones, buy it. But then, it was you were buying existing brands that you guys curate and create it. So, this product was like which we didn't want to do in our brand portfolio. So, we always went for best curation of the brands available in market. Okay. Here, which top-notch brand is in India and internationally known? Because, there are international customers in Maldives. So, what brands typically are famous?

1:05:26You would source it from them and then build it. Box organize it and then let's do it. When you were little, now you're bigger. Like now, it's so easy that any hotel can't bully you because 70 % market share is big. Sometimes, when you were little, big hotels bully you just because that we're a brand. You're a small supplier. So, we will take our tender So, we will not give payment, delay And we will say, let's talk about the next month So, this is not what anyone has done But, it is necessary to have someone who has said that Who is this? Where are you from? What are you doing? Who are you doing?

1:06:08Who are you doing? Where are you standing? I think that's the problem. This happened two-three times. And I think that it's bad. I think that it's bad. If you make successful, then you should have 4-5 times ego-hurt. So you have to challenge it. It's a small story. Indian hotel chain. When I started business, I was told that they had to get a million. I was told that I was starting up. You are Indian hotel chain. I am Indian startup. I see an opportunity that you support and all the products. He asked me if you would supply Hilton Hyatt merit so you don't have experience in the 5-Stars hotel then how do I order you?

1:07:01I said you too they will say but you too it's not good you don't say. You're Indian. You have to put up in that mindset and support. So it became really it got a big thought that I didn't call myself I didn't ask her I didn't call myself something to say but I didn't get how you all sell the request of client Mm-hmm.

1:07:28I wasn't going to apply all your Hilton Marriott Accord All of the time He was done All of the time He was done He had a phone For scene Radieship You have so much You have so much You don't have to See us I was the first You have to And then I asked But I had No disrespect I will come back And then We will craft Some great product For you so we went back we met them it took almost one year again because they don't take decisions that fast ultimately we got a significant chunk of their business now nice and I have a lot of I have followed all of my I have followed and I have told all my sales team that I have never in any presentation don't do any bad of any competitor never say that this is a bad company or its bad product always say that you how good you are.

1:08:33But you say 10 times, sir, my product is better. Which is fine. But you say one time, sir, this product is bad. It will register it. And why do you say it? I have to say, in fact, in the 12-13 years, there will not be a hiring even in competition. Everyone thought, what happened? Two people in the industry and they were gone. I think it's a great time. I think India for 10-15 years from the manufacturing perspective so no to any可能 make it when I say I often discuss in China will be concerned indeed what happened over 2012 there are lots of gaps so I start to think 500 1500 crores and now China and thinking we need a mindset of China that it can happen.

1:09:31So, in our case, we did what we did. It was a very complex supply chain. We realized in a very early stage that if we have to compete with China, we have to think like China. Today we are world leaders. Today we are world leaders. Today we will have 80 % market share. Because ultimately, brands are luxury in Italy and Europe, but all of China are in hotels. So, I will always say to my team, it is America versus China right because our computer is the same price benchmarking I do them from them cost benchmarking product benchmarking we have to do with them because they are industry leader correct and you are the first who has done it so you can do India in India who can do it so China exactly why they were able to do it that like today in China the ecosystem that they make a toothbrush city tooth brush city name is the place Ningzau or Jinxau name is the place in the whole city it's called tooth brush so what are you doing mold is made injection molding machine brush bristle tuffing machines injection molding brush world's share it's called 100 km so we thought Why are they able to do it?

1:10:57At that price, why are they able to do such price of products? So we started a program in 2015, very early stage. If we have to complete it, we have to think about it. We called that program Procure Within 100. It was the thought that our Khmerika is a factory. From 100 kilometers away, we can buy the product. we should have to buy it. And if we have done this, we will compete. Today, my 57 % procurement happens within 30 km of my plant. We worked closely with almost 30 suppliers, which were in the nearby region. Today, I have a bottle, a bottle, labels, corrugated boxes, to some level fragrances, packaging material all these products are made within 30 km of my plant and these were the vendors if someone makes a bottle of water then we made it from a hotel toalitory toothbrushes retail for some boutique scale to make a brush some people who have annual turnover will be 50 lakh and today their annual turnover will be 10 crore and we buy 80-90 % of supplies.

1:12:22Wow. So we invested a lot of time, also money, in some cases, to handhold them. Because we have cracked this. That our hotel, again, which you have brought, is a top-notch industry. There is no compromise. If you haven't been in retail, if you haven't been in the shop, there are products available in retail, then brands feel proud that we are stocked out. In our country, if you haven't reached a 10-Rupiah product, If you don't reach the price, you can't open the camera for 10 ,000. So supply chain deliverability has to be there.

1:12:57This initiative which we took, Procur of 100, impacted so much that we were working on recently. So we have directly employed 900 people in Indoor today and indirectly employed 3 ,000 people in Indoor today. there are factories in which 300 people are working 80 % of revenue 100 people are working 90 % of revenue and we have the amount of money the amount of money you give it 10 % when you get it you will feel what have you created when you see things in action we are operating at around 3 ,000 ,000 square feet new plant is under construction which is probably South Asia's largest hotel toiletry manufacturing plant it's a huge indoor import is a big structure but that state of art unit is coming up but if you go there you could feel the thrill of how it happened and it comes to small ideas and it got connected to each other so I think this thing which I am telling you it has a camera city like a camera city it was a good thing one place is a toothbrush one place is a tissue paper one place is a packaging material so it has a hubs and this really helped us what is the quality control the biggest problem in India is that you can make a product you can make a mistake you can make a mistake it doesn't know the product is going to be the right it doesn't know the idea it's not so under-exposed vendor it doesn't know the product it's cut and cut the money so quality control so our team today, we were going to go to 2-4 hours I was sitting there, I didn't pack it, when the bottle was falling from the machine, you put it straight into the bore, don't put it in the bottom, put it in a liner, put it in a tray, then put it in a corrugated box, and put it in a bottle, so that I can put it in a automatic line.

1:14:53We started this practice to go and train vendors, so our QA, quality assurance, their work is done, because if you come to a bottle plant, then what do you do? You will replace it, you can replace it, but you can buy time because the whole supply chain the complexity of you you can see a shampoo bottle in a bottle in a bottle, you can see a bottle in a bottle, you can put a label below the batch code in a shampoo liquid which is 70 ingredients from 100 suppliers and you have a use of 3 ,500 active use which you can get 10 ,000 items and you can make it and you can make it

1:15:41So it is complex So this initiative helped us a lot That you have quality control better R &D cost That you have to make a deal from Japan or China Fuel cost, carbon footprint That you have to make money from Delhi From Mumbai, China, Korea That you have to make all these products and you could make it. So I think this really helped in building that Chinese mindset of ecosystem. Nice. And today we proudly in some tenders have better coached and won. I've never heard a better explanation of Chinese mindset than this. Incredible. And it's happening. You'll go there when you're tired. You know, there's a chappal that's a chappal that's a chappal that's a chappal.

1:16:26It's like, what product will happen? It's 5 kilometers the area of the city. You will see the sole from one house, the flap from one house, and the flap from one house, and you will see the finished product from one house. It's such an ecosystem. It's crazy. You think that I can't recreate it. How many years have been created? It can't be recreated. But then I think with that little spark, we try it. It's done, it's done, it's done. Because in India, It's one moreitchens you get a fortune before you μέ suced. So for a day you'll actually add the soap in one bowl. So you'll see efficiency wise I think that is working on machines.

1:17:14I'm not sure How does it help me? And they still managed to do on China products on Datka that it impressed QC passed. I used to buy an adapter, but QC passed. They do 100 % QC of a product which they sell even for 1 rupee. Can you believe that? The product is sold in 1 rupee. They do 100 % quality control. Nobody does it in the whole world. People do random sampling. We don't do it ourselves. We do our formulation. These are the proven theories of random N number. You do sampling and you put back. But even with millions of units, they still do it. And they are still competitive. China's wages 35 ,000 minimum wages.

1:18:03Our minimum wages are 15 ,000-12 ,000 of the year. We can do it in one-fourth price. Why not do it? Because the efficiency which is their. They show their videos and show them and we have a training session in factory. Let's see. To the extent, we have a new consultant on-board for manufacturing efficiency. First of all, they told me We husband, we. We must go ahead and stay down. We must become three. assistir is our fastest get from Abro apply63. It will be the one we can apply the value of our Unit of custom packaging speed. if a day with one boaally Dåh온i for medical packages in. and this we used to be through five minutes.

1:18:48We shall demonstrate them sitting by and saying I cannot do and it really worked we really improved 15 % efficiency by just demonstrating them that I don't know what I'm skilled for this job, you're always doing it when I'm randomly coming to you 10 % better work, then you're always doing it 20 % better efficiently so in China the mindset efficiency is incentivize people on every unit they pack other than salary and then there were large QC table this all after this the product is also QC level and after this I will see that I will do everything I will do everything I will do everything 100 % QC 2-Rupes not possible to manage that level of thing so I think learnings are but you are so now you have this level detailing sourcing now for every hotel you have supply chain crack all crack buy

1:19:54so there are public reasons between the and the Indian supplier are, which I didn't bother because my satisfaction was back of mind that Indian change is already Indian suppliers are supplying namely these two-three brands who are already supplying them I was surprised that India has a hotel, it's a grach Indian and it's coming from China and it's coming from here so first of all, they pack it and then they pack it and then they go to any other day which I have told you a case that we will take it so I think and now it's happening still and I think any of it is 70-75 % market share it's incredible anyway I'm just wondering what will happen so I think that it's okay there are other players who have performed and worked but what is in them that they are buying from someone else what reason it seems to be so again some people were saying again now we don't come to retail now we don't come to retail now we don't come to B2B but I think a reason that some hotels have said that that is a retail product so it doesn't have a customer delight that you are a hotel supplier that is a retail brand so we have a lot of value for put a 20 years old legacy story I can say 20 years cost is 20 years that you cannot buy a brand when you make 20 years So, I think that is one of the key reasons.

1:21:37Second is, independent hotels, they still feel that if we get 15-10 % and quality, customer delight, because they don't understand it until that level.

1:21:54But it adds immense value in the entire customer experience. It is as important as the taste of food that you are giving as important as pillow as important as chaddar, taqiya they don't feel anything but they don't feel anything they don't move on it's part of experience I've met so many people who are frequent business travelers and they and I get a customer from Oyo room and 5 star hotel they just change the hotel Yeah but we have not gone No good That'srad之前 Quality

1:22:42Your behaviour will understand more спорт

1:22:54Weipper Virgil Virgil to know that behavioral change that the miniatures came from the dispensers shifted to the miniatures complaints came from the hotel that the dispenser is breaking and they said that all the design we had done in the same way it was high end design production was completely in the same way and some hotels were lost there was no complaints there was no complaints why was it then somehow when we met these housekeeping people did meetings with them what is the factor that the same product in the past family room in the room, 6 months, nothing's happening. This is also 100 times a check-in.

1:23:30But there was no connection that was better. The only connection was that customer in the initial time was not happy that you took a miniature and you took a dispenser and you took a $10 ,000. So out of frustration also customers were damaging the product and using it in the wrong manner. How much time do you have in the boardroom and how much time you sit in the after hours when you sit and do time pass? relationship so you mean we and customers yeah no you and you and the hotel so GM probably relationship strong because I think I retain business so I think that time because my presentations are very low for myself teams do it teams manage it but that time I told you that I had lunch skip because of efficiently using my time.

1:24:26What I used to do is that when we were in a meeting, someone used to ask from a courtesy, I used to say that I'll have a vanilla shake or something which is a little heavier than just a glass of water to sustain for next two more hours. And if someone offered lunch, you'd come to the canteen. So I used to say yes. If you're going to the canteen, you're going to eat it ready. You'll be free at 15 minutes. And if you're sitting with someone for a half hour, I can't get it. So, it's a good friend. You don't have a friend. You don't have a friend. But it's a good thing. I think that if you want to make a relationship network, you want to make a relationship, where will you pay off?

1:25:13There's no scale. Some relationships are like, I've always liked it. We sometimes connect with a cycle. connect karte hai kichi se ap kaha milethe isne usse mila ya ita usne usse mila ya ita karte karte aaj 8 saal baad woi wakti apko is teach ke li helpful lua hai so I think selfless not being selfish on entering into you know building relationship this is what our belief is and in fact hotels maybe I would say ki it is not that we have managed relationship by doing them them some favors or not more than in Dori Namkin and Laddu sometimes so nothing of the of the official relationship that and you said that business is very big but margins is a small business so how many people can sustain it do you think that you just just look for big volume you bleed a lot no we never hunter we never we never but absolute economies when you have a product there is no reason that you would lose money because we come from school of thought we have to do danda danda marwadi everyone's mindset is that you have to bring a house you have to bring a house so that's how it is it's a good thing we have to do how much of a house exactly so in that way we have to build a little challenges and mindset challenges I'm learning but I think margins come because again same factor that the product is free and the product is not selling but if you are efficiently planning it it's a B2B business you have to very nicely plan it you have to very nicely invest in right technology at the right time to make sure that you never need to be blended with unit economics so that continues evolution of high end machines like when we started business, we had 10 tubes per minute.

1:27:19We had a pedal tube machine, we had liquid and we had a tube pack. Then we had a machine of 35 tubes per minute, 45 tubes per minute. Today we had 400 tubes per minute pack. Which is, I think, one of the country's largest setup for any hotel supplies to do. We had a tube in the country. There was a bottle in the water. I recall that you had bottles in the water. We thought that in the tube it looks less than plastic in the tube. eco-friendly when it's less plastic then it will cost from the bottle I've always used because conditioner and lotion you have to tap tap tap then you can squeeze in the bottle in the tube now you can squeeze in the tube we were the first company to introduce tubes in hotel toiletries and today you can see I think entire India is doing tubes so I think these were and I keep learning and I keep learning when you are in that zone I think every day is an innovation every day is an evolution interesting but tell me one more because one I was looking at a loop you had to see in starting I had to see with a lot of so what did you do when you started something like that you would like maybe I should go to this brand or I should go to this go to this assistant or assistant whatever some people do some random stuff so I don't know what you do so when you are very young you are notorious you want to do all things because you you you hear it you you

1:29:02L We had a 5-star hotel chain in the 5-star hotel chain. We had a car and we had a car. We had a car in 2014 and we had a helmet to the hotel. They told us that we will visit. I will go to the market. We had a small plant in the first place. It was the first place of the father's office. It was the first place of 3000 square feet. It was audited. And the competition was the 20-year-old company. Now, we had Innova. We had a very small business. I will tell you that the mindset of your children I mentioned that you had to tell me that I have a car. I have a car. I have a car. I have a car before I called and explained the road.

1:30:04Our factory was a small road in the Raja Indegar Main Road. The people often go out there. I told you this road, you take it here. I came to the guest and I went to the car. and I said to the driver, take the plant. He went and went and went and went and went. He said, you forgot to go there. You don't go there. He feels like today, how much time it was. That's how much time it was. You're going to start doing this. Farm is not. There's no car. There's no car. There is no need... You will have to get a scooter. You if you're auditioned with your person... that you don't say anything. I will go on.

1:30:56I will you method. What I can do? You can do another thing itself. Dangerously, you won't get me. You can't say it yourself.

1:31:08I'm transparent. And rather than you taking my luggage. And that material is different. But now I think I do hope that It's like That much Mm-hmm

1:31:27Good� �

1:31:44Our most important customer is our customer. Nice. The most important customer is our customer. The most important level was that the guest gate was running around the gate. Just before the name of the board was put on the name and the next to the next. It was very important that you didn't know what to do. Ultimately, the thing is not that you are saying or not that you are saying wrong. The thing is that you have to understand yes . . we have all the world's certification which has been in India rare companies so the vision was that that didn't have money but that didn't have you but you have to establish that I have a vision that my plant and the first factory when I shift I have to use the line to sell the cement order to sell the engine and CAD and the design and the whole factory I have to make the plant in the past plant in 800 people work.

1:32:49The whole plant initially we both made it. The new plant is done by biggest of the consultants and architects of the world. Not different things. But now it's important that time is important. You can't do that. We are very personally involved in this thing even today. But then at that time we had all that you have to establish yourself. I will do it. Do you know They don't know. We will see them. I have to tell them. I have told them that when the federal officer has 100 managers in the States. Oh, nice. No, Nova knows them? No, I don't know. Today I will tell you. Two things I want to ask. First is, because you're in so many places, you're in the world, right?

1:33:37You'll tell a lot of markets. So I want to understand region-wise that India, US and China, how are the luxury markets? and where people buy what type of things because in India hotels that would be very different than China and then very different than US correct so I think luxury what I feel is luxury luxury is not just bhanga product correct isn't it luxury is not just it can be bhanga product but luxury is not only mehenga product okay so how I put luxury is that we use regular you know the way we design our products so I tell my teams we have to be interested about luxury so we have a payback model luxury theoretically exist that first perceived value of the product should be higher if you should look at the product and it will be mehenga how can it be finished packaging second luxury is always experiential product functional but product functional experiential design should be experiential third there should be a brand story you have no luxury of product but you have a brand luxury because you will make a luxury but you will always have a brand affiliated with it Willeroy and Bosch designed or Cartier designed.

1:35:14So brand story has to be there. Third is C is for craftsmanship. Product's craftsmanship should be so fine that it stands out of all the normal products that you keep around. And the last one is exclusivity. The luxury is a big factor. Why do hotels for the most easy product hotel was to keep in the room lux sunsilk clinic plus you are getting no supply chain quality approved why do you never see sense of exclusivity which makes it luxury you have asked for example in Europe luxury is heritage this is what I feel in Europe you have any brand since 1852 you will always see European luxury talking about a legacy and heritage in India luxury is about discovery because in India history is very strong but we've been in the last 3-4 years we've forgotten and we came to a point zero so we don't have a history in terms of luxury to cherish and sell a product.

1:36:40So, in India, luxury is discovery. Discovery means. And that discovery comes from these little experiences of unboxing a product, having a great product design, and ultimately, making someone feeling happy. Correct. So, Kimirika is one of the core punchlines. We say, we bring moment of happiness into your everyday life. that starts from your hand wash that we have this model and again this was also subconsciously used after we understood that hair exists that we have so beautiful designed that people have had hand wash gift no one would have thought that I will gift someone to hand wash I love your hand wash I need to pause here and tell you this I buy and I swear buy that my hand washes and lotion together I have and I am not a luxury buyer I have a very basic random if I have any hand wash I don't have any loyalty for some reason for some reason first time I have your hand wash and lotion after Dolce Zimbrin and I think it was opening in her store and I just went there once to visit her and I saw there and then she was telling me about they were telling me about you guys and how you guys are friends and everything I was like this is incredible like just I fell in love and I didn't buy it I was living in the dorm and I didn't have anything when I came to Bombay then I had a year and I was like I was like when I first I was like I was like I was like now I have I have I have so I have and since then till today there's nothing else thank you we were able to convince a buyer like you who probably doesn't have much I don't have any I don't have any I'll give any body wash hand wash but I just there's beauty in it you have a experience which we always say that we don't we don't have to design and sell products we have to sell experience I'm prepared for 800 I was ready to give 100 rupees.

1:39:04I was like, 100 rupees will get something. I'm okay. By the way, highest conversion will be in Bombay. I've been calling all the people. Everyone has asked me and I'm getting better. I've sent and now I've got a blanket blanket. But for the last two years, I used to send it to people left, right, center. Now I've got a different one. Now I've got a lavender collection. I have put a lot of love and pink now we are launching

1:39:39all your luxury reed diffusers I love hand wash so I think you think what is and it's a giftable product now that you are saying that it just makes sense why does a hand wash gift because it was happy what did you say I will have reached 100 in the house what did you have reached your house you have reached this thought that my selection is so thoughtful. And you see, I have gifted someone that you haven't seen in India. I will tell you about giftings. So when luxury comes in, and I have proved this that luxury is not only price. I have$5 ,000. At an accessible price. And vision of Kimerica is not to sell expensive products that I will buy in one day.

1:40:26We have different tiers, different collection, different fragrances with different prices. Now, when it comes to the product, when you have to design for luxury, it's different from the market. So we always discuss, we call camera thoughtful self-care. That's the brand core front punchline. We have to be thoughtful in every aspect if we have to create luxury. When we design that product, what we discuss is that the products of the collection, love story is our number one selling gift set love story was designed a fragrance of first night that when you're in Suhagrat the camera is closed, how do you feel like it?

1:41:11jasmine, mogra, this thought our collection is Viva amazing Viva is rose Viva is marigold, Genda which one is rose? rose is bouquet, rose is gulista that's my love we thought that we have made collections and inspired by the other how can we make sure that we can make 5 collections or 4 collections and again it connects to your point on how these luxury experience creation in a product or a brand happens so we made a model which we call NIF model product nomenclature that they made a happy that this is a happy happy and majestic happy Now its name is Swagrat It's called Love Story Similarly We have made a wedding collection We have made its name Viva Lavender collection is French note And what you're talking about It's called a bouquet Because I thought it was Giftable-sleeve Gift something which Gifts a bouquet which gives you good fragrance Forever It will never die And when you're in the morning When you're in the hand, you'll remember that it was a good boost.

1:42:27That was a thought. So, nomenclature. Inspiration. Your inspiration is what is the luxury product in the world. Love Story was romance. Viva was wedding. Gulusta was the inspiration. So, inspiration can come from anywhere. It could be a festival. It could be a food dish. It could be a city. French note. Then comes a unique fragrance. you can see our every collection one unique fragrance which is hero fragrance love story Jasmine if you married what should you do Ginda French Nune what should you do lavender then the color and if you do it you can see higher if you have a collection if you have a color if you have a viva what should you do婚 yellow color love story romance pink color you can see all the collection color dixi nga, or aakhri hai French lavender bhi woh white purplish color hai, correct, or piche Eiffel Tower ki image je bottle bose dixi, you know details, you know bottle us ki, right, ki humnne liquid ke piche eek label laga ya, joh bottle ke front se aapko Eiffel Tower liquid bose dixi nga cost utni hai, correct, price us label ki, or thadha label ki price me ho koi farak nai ho ga, and the last one is hero ingredient ki us collection ka hero ingredient kya hona chahi hai, shadi is turmeric in the viva love story is jasmine or iris is gulista rose water is not so then we made this and now leave so this is not a proven theoretical model but then we made this and now this is because we have to today the pool is coming stage 1 that idea is coming anywhere it can travel and memories from a place, from a place.

1:44:22So I think this is how we have tried. Nice. So, you know,

1:44:30how this creates that wow. You just got to give me 100 people's hand wash. I think these are all touch points that will make everyone good in everything. Now you have given me a new way to sell your brand. But so cool. I never thought that there will be so many things. it was just I love it I was reading a fact that by 2018 the personal consumption was 1.8 trillion in India in 2018 this personal consumption will be 5.3 trillion dollar will be the personal consumption and 50 crore people in 2030 will come to the medium and high income group so 2 trillion dollar to sell the extra cable is this way that people will sell the same consumption same product for premium so it's a great opportunity for everybody to have a premiumization story because we say we have$500 ,000 so we have it's just a pivotal point that we are just not going to be and all the inspiration ultimately I mean why do we think the mindset that the western mindset that we have and the costs it seems like life is genius quality product and people will pay for that premium experience true I hope they continue doing that because your business will grow thank you so much for coming here it was a pleasure talking to you I didn't have 500 questions I didn't ask you but I really enjoyed it thank you so much for doing this finally it happened I'll tell everybody I texted them when I started my podcast then for 2 years neither you nor Rajat bhai nor anyone saw my LinkedIn that message I reached out and nobody saw and then one day you guys saw and since then we've been trying to one of the first guests who I had message you so you didn't reply but I think it's never late finally it happened it's been great it's been great Thank you so much for doing this.

1:46:43Love you. And I am now researching my team. When we were briefing, I was thinking about the briefing. I was thinking about it more than who you are and what I am talking about. I was thinking about it because when I was looking at the Jadugar, I was very inspirational. I think you were one of the first stories in which you will come from the indoor. We didn't tell anything about it. We didn't tell anything about it. I didn't have a boat in the past 4 years. After that, people said that I was able to do this and then Things changed. Thank you so much for watching this episode. Now you have to do three things.

1:47:21First of all, subscribe to this channel because as much as you subscribe, the best and valuable guests will be able to get you. Number two, tell me in the comments, what did you feel good and bad so that you can repeat mistakes and which guests you want to see in our podcast so that we can take them and give you more value and number 3 you have to share this episode because one conversation can change someone's life I'll see you next time until then keep figuring out

1:48:05you