Delhi-based Nysaa Retail Pvt. Ltd, which operates a chain of ‘Value Retail’ stores under the brand name ‘1-India Family Mart’ across Eastern and Northern India has stepped up its expansion plans. The fastest growing value retail chain in India plans to invest Rs. 200 crore and open around 100 stores in the next two fiscal.

Image Source – One India Family Mart

1-India Family Mart has been consistently proving its mettle as one of the fastest growing value retail chains by providing affordable fresh fashion and general merchandise to its large customer base in Tier 2 & Tier 3 cities. With its inception in 2013 and a vision to address the need of 75% of the population that resides in the small towns and cities of India, Nysaa Retail Pvt. Ltd backed 1-India Family Mart looks to expand and accumulate around 12 Lakh square foot of retail space by 2020.

Jay Prakash Shukla, a retail veteran and the founder & Chief Executive Office of 1-India Family Mart, said

Value retail has long been associated with consumers having to compromise in terms of the shopping experience, ambiance and customer service. 1-India Family Mart wants to change this perception and provide a value retail experience akin to the experience of walking into a supermarket in a Tier I city. The understanding of business for this segment was scarce but there was an innate enthusiasm about the possibility of business that could be extracted from these towns.

The plan is to expand and accumulate about 12 lakh sq. ft. of retail space by 2020 from the present 4.25 lakh sq. ft. Following the opening of the new stores, we expect to record net revenue of about Rs 750 crore in 2019, which will further increase to Rs 900 – 1,000 crore by 2020.

About 50% of the total investment required would be raked in through internal accruals and the remaining through debt. Nysaa Retail Pvt. Ltd has recorded more than 60% growth over the previous fiscal, with net sales rising to Rs 235 crore as against Rs 147.5 the previous fiscal year. Earlier this year, Nysaa raised Rs. 42.5 crore from private equity firm Carpediem Advisors Private Limited in the company’s first and only external funding round since it was founded in 2012.

Currently the company has established 56 stores across Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh and the North East and will touch a top line of Rs. 750 Crore in net revenue by 2019. More stores have translated into significantly higher revenue, which has grown at a steady clip and 1-India Family Mart has been profitable for three years running.

The retail sector in India contributes to 10% of the GDP. However, lack of innovation and new-age infrastructure has hindered the rise of organized retail in rural areas. To combat this, 1-India Family Mart analyses big data insights accumulated from their customer’s buying habits and trends. These insights then give way to their unique growth strategy by anticipating the fashion and lifestyle changes required by their consumers.

So far, the company has already implemented this in 35 stores and aims to further gain competitive insights regarding their customers’ frequency of visits, buying behavior, instant preferences and repetitions via big data. The concept of Value Retail has been successfully cracked by 1-India Family Mart by catering to the aspirational and pocket-friendly requirement of the buyers, bringing high street designs at affordable prices for the multitude.

Value retail stores have pioneered the concept of meeting their profits by virtue of large scale reach and unique target audience segmentation. What is noteworthy here is that 1-India Family Mart manages to maintain quality products in a brick and mortar presence at extremely competitive and affordable prices.

About 1-India Family Mart

Nysaa Retail Private Limited, the holding company of 1-India Family Mart was established in 2012 with a vision of providing Fresh and Affordable Fashion and General Merchandise to its customers. The Value Retail Chain began operations in 2013. The company established its first store in UP and soon expanded operations to Bihar, Jharkhand, Chhattisgarh, and North East. Today, 1-India Family Mart has 56 stores across East and North of India. Being a customer focused Value Retail chain; 1-India Family Mart is committed to providing the latest range of affordable fresh fashion apparels, lifestyle products and general merchandise to its customer across India.

If you are in India, you would have definitely visited Big Bazaar at least once and experienced a chat with the cashier asking you to signup for a Loyalty Card. Whether it is in India or elsewhere, shoppers love discounts and they often shop from a place [offline/online] that offers them maximum discounts. Though we love discounts, according to a study, Indians are most demanding, yet loyal customers globally. What if customers are rewarded for their loyalty to a brand via Loyalty Points that can be redeemed across different partners in various verticals like e-commerce, food, travel, etc. 🙂 Sounds interesting, ain’t it ?

Image Source – LoyalZoo

According to published customer research reports, the most preferred form of rewarding loyalty is through ‘loyalty points’ that a customer accumulates from transactions, and their fungible nature makes them universally acceptable across the network of partner brands, of a multi-brand loyalty program [Source]. In India, PAYBACK is formidable player in the multi brand loyalty program market.

It offers its members multitude of benefits over traditional, stand-alone customer loyalty schemes. It has over 50 partners including affiliate brands participating in the PAYBACK Network across categories in-store as well as online [Source].

Importantly, PAYBACK Partners are mostly market leaders in consumer segments covering daily needs, ranging from food to travel and entertainment. With such a varied portfolio of partners, PAYBACK Members can earn points on everyday shopping and redeem them for attractive rewards, at their preference.

Today, we have a discussion with Mr Gaurav Khurana, Chief Marketing Officer of PayBack India about the PayBack program, Market Share, overall loyalty programs market, competition, etc. So let’s get started…

Tell us about PAYBACK program ? How was the company conceptualized ? What was the idea behind PAYBACK ?

PAYBACK, the largest loyalty program in Europe entered Indian market in 2010. Today it is India’s largest multi-brand loyalty program offering its members a multitude of benefits over traditional, stand-alone customer loyalty schemes. With over 50 in-stores and online partner brands, the program has a wide reach covering nearly 70% of everyday consumer spend categories ranging from groceries, travel, entertainment, apparel and more.

PAYBACK enables consumers to collect and redeem loyalty points with a wide range of relevant partners across formats using a single card or even their mobile number on the move. The brand has received an overwhelming response in the country with over 60 million customers already associated with the platform and growing by the year.

PAYBACK entered the Indian market via acquisition of iMint, what are some of positive’s that came out of this acquisition [apart from customer base, please talk about local know-how, etc.]

The transition post-acquisition into the Indian market was smooth, iMint being a strong brand with multiple partners and a large member base. Also, with iMint being the established player in India and on other side PAYBACK adding a huge benefit to the existing business and introducing international expertise, with a massive global partner network resulted in a consolidated ecosystem in loyalty space. This move added more value to member & partners, making the rewards and loyalty sector accomplish new heights in a such an exclusive business model.

Who are your partner brands across the retail industry ?

PAYBACK is multi-brand loyalty program with more than 50 online and offline and affiliate brand partners across a diverse kitty of categories. Brands range from fuel leader HPCL, to banking partners ICICI Bank, American Express, daily needs partner Big Bazaar, travel portals; Makemytrip and Tripadvisor, apparel brands; Central, FBB, Brand Factory, Rare Rabbit, entertainment portal; Bookmyshow, online portals; ebay, voylla, naaptol, electronics and Home Décor brands; eZone & Hometown & affiliate partners like Amazon, Flipkart, Snapdeal, Jabong, Myntra just to name a few. The network is growing at a very fast pace.

Mr Gaurav Khurana, Chief Marketing Officer-PAYBACK India

How much market share does PAYBACK have in the Loyalty cards segment ?

We are currently one of the industry leaders in coalition loyalty space in India. PAYBACK has been the only successful brand in India to build a diverse partner portfolio and over 60 million members already associated with the platform and is growing continuously.

Apart from online partners [like Flipkart, Shopclues etc.], how much does offline partners contribute to the overall revenue of PAYBACK.

Our major chunk of the business is contributed from our offline businesses. Our partners are renowned brands in this section and they play an essential role in this business, with a 70% revenue clocking in from offline, we can safely say that this our main line.

Our online business is fast gaining momentum in India, as a growing economy, the digital boom has increased the business here, we are at a 30% currently. PAYBACK have been working with large offline partners like Future Group, HPCL, ICICI, these brands have been associated with us for a long time.

How and where does PAYBACK help customers and retailers by using data analytics ?

PAYBACK Platform help retailers in manifold ways:

  • We integrate our solution with the existing POS/ERP infrastructure
  • We capture customer data to the last mile [basket & product level data]
  • We run in-depth analytics driven by multi-dimensional view of spend & usage patterns
  • We enable retailers to gain real-time insights into customer behaviour and propose ways to engage and retain
  • We provide integration with the PAYBACK rewards database
  • We personalize multi-channel communications

The insights are used for targeted engagement campaigns through a multi-channel ecosystem; E-mailers, SMS, web, social media and so on. These enable retailers to plan interventions throughout the customer life-cycle and plan retention and engagement activities instead of a single-minded one for all approach. This business intelligence [BI] is relevant specifically in cases of banking and retail industries which move a high volume of data and need to create much sharper offerings in order to create differentiation in the competitive landscape.

As part of the retention strategy at each retailer, various experiential offerings are also built in into the transactional ecosystem to create a distinction which may include home delivery, separate queues, variable benefits, privilege access, etc. at pre-defined retail outlets. For PAYBACK apparel and fashion is the biggest segment, followed by grocery. This segment sees high value in loyalty programs as it ensures customer stickiness. Further advanced analytics help determine customer behaviour and retailers are able to customize programs for each of their customer segments and also engage inactive customers.

Can you share some of the competitors of PAYBACK in India?

We are currently one of the industry leaders in the coalition loyalty space in India. With over 50 in-stores and online partner brands, PAYBACK has been the only successful brand in India to build a diverse partner portfolio and over 60 million members already associated with the platform.

We continue to benchmark ourselves against our own potential and targets. We need to invest in our capabilities to ensure we keep pace with the changing demographic, technology and evolving needs of our customer base.

Please share some interesting trends observed by PAYBACK in terms of consumer behaviour?

We see a huge change in consumer dynamics, with a large scale shift from offline to online consumption of goods & services and a change in demand of the categories retailing online. The new age customers tend to be quite experimental in nature and we are seeing more movement in new and unconventional categories like Furniture, Health and Beauty care, Apparel and Groceries as opposed to traditional online categories of books and consumer electronics.

In online world, personalization of experiences is the key to purchase consideration while segmentation with location considerations is critical to offline retailers. Among the factors that are driving retail choices, in additional to end prices and delivery experience are the trust in the retail brand, good returns policy, depth of offerings and loyalty incentives. Shoppers are increasingly valuing digitally enhanced in-store experiences or web channel experiences, easy check-in and check-out experiences and consistent omni-channel customer engagement which are increasingly influencing purchase as well as purchase location decisions.

Moreover, we do see an increasingly ingrained value consciousness among consumers fueled by the open discount models but also the fact that customers are willing to go an additional mile to draw more benefits in their day to day purchases.

Each Loyalty card company offers some unique value proposition , how does PAYBACK ensure to stay ahead of the competitors ?

PAYBACK is India’s largest coalition loyalty program and has been successfully adding a substantial customer base to their wide spread network. It provides many advantages over traditional, stand-alone customer loyalty schemes restricted to a single brand or company. The power of PAYBACK stems from amalgamating loyalty benefits from many attractive partners namely, using one single card, members earn loyalty points when they shop at a wide range of merchants and brands – offline and online.

PAYBACK has been the only successful brand in India to build a diverse portfolio of partner brands both in-store and online with options to earn and redeem points and avail rewards. Importantly, all PAYBACK partners are mostly market leaders in consumer segments covering every aspect of the consumer life ranging from daily needs, fuel, travel, home-care, shopping to entertainment.

As a result, members are able to accumulate a large number of points quickly. A coalition of strong partners united on the common PAYBACK platform also multiplies redemption opportunities. The combination of rapid accumulation of points and their easy redemption for desirable rewards is what makes PAYBACK so attractive. Other benefits include discounts on purchases through points earned or through coupons and exclusive special offers. Shoppers love these unrivaled features, because they simply get more value for every rupee spent.  All this has helped PAYBACK stay ahead of the market as a specialist in building coalition and adding value to both the partners and consumers alike while contributing to the growing loyalty market in India.

What are your future/expansion plans ?

We are seeing a healthy rise in the loyalty transactions over the past few years in India. More real-time and personalized experiences delivered to the customers have been the actual reasons behind this upsurge. Understanding this scenario, we aim to:

  • Continue to acquire new partnerships
  • Focus on adding value to our existing network of offline and online partners
  • Continue to innovate and offer a rewarding experience to our members
  • Educate shoppers today on the advantages of loyalty points and how best to utilize them

The idea is to grow our network through our initiatives as driving loyalty, engagement and customer experience is the future of customer acquisition and retention.

Closing comments for our readers on Loyalty Card market landscape.

In India, loyalty transactions have been growing consistently over the past few years due to more real-time and personalized experience being delivered to the customers. With the advent of new age businesses and technological capabilities, there has been remarkable change in consumer behaviour and their affinity to brands and offers. The demographics are changing and majority of new age people are having higher retail spend.

From fuel, apparels, entertainment, travel, financial services and daily needs all these categories are leading to tangible retail spend. In such a scenario, coalition loyalty program would be game-changer as it offers a diverse portfolio of partner brands in-store and online, with options to earn and spend points, and avail rewards. Loyalty programme which consolidates the reward system will go a long way in ensuring customer stickiness.

We thank Mr Gaurav for his time and sharing valuable insights for our readers! If you have any questions for the PAYBACK team about the program, impact on retail segment, etc., please email them to or leave your question in the comments section.

Mindtree, a leading digital transformation and technology services company have announced the launch of its Flooresense platform to increase in store conversions for retailers. The solution will enable retailers to enhance customer experience and improve the productivity of store associates.

A big challenge faced by brick and mortar stores today is identifying and engaging a high potential shopper needing assistance to make a purchase decision, among a crowd of shoppers. Flooresense helps retailers identify real-time sales floor opportunities to enhance shopper experience and optimize sales time.

The cloud-based platform which runs on Microsoft Azure, offers intelligent recommendations that connect the right store associate with high potential shoppers needing assistance. The solution identifies and prioritizes potential shoppers using video feeds and custom algorithms while maintaining shopper anonymity.

Gaurav Johri, Senior Vice President and Head, Platforms & Solutions Group said

Over 80% of retail sales still take place in brick and mortar stores, especially for complex purchase decisions. Solutions that improve shopper conversion in stores can have an outsize impact on retailers’ revenues. Store associates are a retailer’s primary brand ambassadors and Flooresense equips them with relevant information to provide a superior customer experience leading to increased conversions.

Brendan O’Meara, managing director, Worldwide Retail and Consumer Goods at Microsoft said

Modern retail chains can use platforms leveraging technologies like cloud, mobile and video analytics to empower their employees and power their business. The combination of Flooresense purchase-intent learning algorithms and a collection of Azure integrated services allows retailers to deliver a great customer experience with flexibility and scale across their entire store network.

The solution requires low investment from retailers, as it utilizes the stores’ existing infrastructure such as video surveillance to sense the floor and is easily deployed on corporate networks. It requires minimal integration with store systems, making it a fast and affordable choice for improving in-store conversions.

More about Flooresense can be found here

About Mindtree

Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. “Born digital,” Mindtree takes an agile, collaborative approach to creating customized solutions across the digital value chain.

Pine Labs, the largest integrated payment solution company of India has introduced Paybypoints – This platform enables card holders to pay for purchases & services instantly through their reward points accrued on leading banks/issuer cards, at a wide range of merchants.

In India, the average monthly points earned are worth Rs.50 crores and monthly redemption is about Rs. 20 crores.  Paybypoints enabled  merchants can now accept the redemption of reward points through Pine Labs point of sale, while accepting card holders payments at point of sale [POS]. Its first of its kind technology platform which aggregates India’s top loyalty reward programs on a single platform.

The process of reward points redemption for the Card Holders, which otherwise was a tedious and time consuming through catalogs ; now with Paybypoints is easy, convenient and the one with the magic of ‘instant gratification’ by facilitating use of reward points instantly at POS, to get what they want. No more wasting or lapsing of reward points, plus the card holders get an array of merchant outlets to choose from, to spend their reward points. The use of reward points, not cash or card to pay for a purchase or a service, is what creates – The true joy of shopping for the consumers. Paybypoints platform is estimated to give easy and convenient reward points redemption to reward point bank worth of Rs. 3000 crores held by more than 300 Million Card Holders.

Sharing his perspective about the launch, Lokvir Kapoor, CEO, Pine Labs India Pvt Ltd. said

In India, there is a huge pile of accumulated reward points and the card holder usually end up not utilizing it. In short, there is tremendous potential to increase spending at the merchant outlet with Paybypoints. Giving an option to pay with points creates a great pull for the card holders to Paybypoints enabled merchants.

Various marketing campaigns by Banks/issuers & Pine Labs would further create the reach and the opportunity for the merchants to access premium customers. Paybypoints, one single platform helps merchants to engage and acquire premium customers of multiple premium loyalty reward programs.

Paybypoints has brought together leading issuers like Amex, Citibank, Axis Bank, PAYBACK, etc. on a single platform. Some of its respectable and trusted partners are- Apple, BOSE, Samsung, The Mobile Store, Croma, Clarks, Vishal Megamart, VLCC, Wildcraft, Beer Cafe, Costa Coffee, Chaos,Shoppers Stop, Babyoye, Central, Westside, Marks & Spencer etc.

About Pine Labs

Pine labs is the largest integrated payment solutions company that simplifies payment acceptance, while creating business opportunities for Issuers, merchants and brands. Pine Labs began its journey with specialty payment and loyalty solutions for closed-user group applications for Retail Petroleum industry. Today it has evolved into a payment acceptance partner choice with a POS base of more than 1,00,000 ranging from large worldwide enterprises with a wide network across India to locally-owned small businesses.

Pine Labs merchants and partners get a robust platform to create new revenue streams with best in class value added solutions like Instant EMI, Instant Discounts, Cash Back Programs, Pay by Points, Loyalty Solution, Gift Solution, Targeted Promotions, Dynamic Currency Conversion etc.  For more information, please refer Pinelabs

[Image Credit* – Pine Labs]