It is not uncommon for a second or third generation entrepreneur to inherit a successfully running business and manage the responsibility of ongoing operations. However, for Anupam Barman, a third generation entrepreneur who inherited a family-run business of manufacturing Banarasi sarees in Varanasi, it wasn’t the same. When Anupam inherited Anupam Retail in 1992, the business was facing several challenges of declining sales, increasing return of goods and an unhealthy cash flow.

Anupam, an engineer by qualification from Manipal Institute of Technology, had secured a comfortable job at Wipro Infotech when he was asked to come back to Varanasi to take charge of his family business. Anupam not only addressed the problems at hand but also steered the family business towards success and took it to greater heights. 

GlobalLinker (GL) spoke to Anupam Barman about his journey of turning around a century-old business.

Excerpts from the interview.

GL: Tell us about your family business and the problems you faced when you joined.

Anupam: Our business was established in 1875 by my forefathers. We are into manufacturing all kinds of Banarasi sarees. When I joined the business in 1992, we were facing two major problems. First, there were late payments and bad debts. Apparels are normally sold on credit by manufacturers to wholesalers or retailers. At times, we would receive our payments late and at times retailers buying from used to wind up, taking all our money with them.

Second problem was returns. As the goods were sold on credit, at the time of payment, many shopkeepers used to return the leftover inventory. These returns were of no use to us as the designs of the returned goods would be outdated by then. We had to clear these returned stocks on heavy discounts, much lower than our cost rates. These two problems had made a major dent in the functioning of the business. 

GL: How did you turn the situation around? 

Anupam: In 2003, while surfing online, way before the age of Flipkart, Amazon and Snapdeal, I came across baazee.com, later known as ebay.in. Intrigued by the idea of selling online, I wanted to explore this opportunity. I invested in my first camera and made my wife pose in our Banarasi sarees (as modelling services were not as prevalent in Varanasi). I posted these photos on baazee.com with details about the sarees and started selling online. 

GL: How did your family react to this new way of selling?

Anupam:  Initially, everybody thought this was only a passing fad and more like hobby (as some said in Punjabi – nave-nave shauk meri fatto nu– new-new hobbies of my dear). However, given the stupendous response we received, the idea of selling online was graciously accepted and welcomed. 

To be honest, even I had never expected such a good response. So much so that today our online retail sales have exceeded sales of our traditional 128-year-old wholesale business.

GL: Since the concept of e-tailing was fairly new then, did you face any challenges in selling your products online? 

Anupam: Online selling was like a new line of business for us, and every new expansion or initiative in business has its challenges. When we started selling online, there was no concept of online payments. As a seller, I was supposed to co-ordinate with the buyer myself for the payment. This led to trust issues - how could a buyer trust an unknown seller? Things started getting serious when marketplaces started addressing and managing payments for products being sold on their sites. 

Even after this, it wasn’t as smooth as it sounds. Expanding from wholesale to retail had its own challenges. Foremost challenge was managing multiple accounting entries. Earlier, we used to keep accounts of limited number, as the transactions were lesser in number but higher in volume. Now, we had to keep an account for thousands of small invoices and the tracking of receipt of payment, delivery of goods, returns, refunds and marketplace commissions. 

The other problem was returns. People change their mind very often. Delivery is often refused. I guess this might depend on the mood of the consumer at the moment when the delivery person reaches him/her. Or maybe husband-wife had an argument over the purchase after ordering (he chuckles).

GL: What was the turning point for your business? 

Anupam: The turning point for us was when we received an invitation call from a marketplace to sell on their site. I could see my long cherished dream of selling to multiple locations come true. The team came over to look at our range of Banarasi sarees, gave their suggestions around the preferences of online buyers, and initially even provided modelling services. Today, we are selling on all the major marketplaces and even catering to international consumers. 

GL: What about your traditional clients? How did they react to your online venture?

Anupam: My traditional clients are semi-wholesalers and retailers and they didn’t approve the idea of selling online back then. Many of our traditional clients have frowned upon it, as they see online as their biggest competitor today. But now, I have separated the premises of both my online and offline businesses so that my traditional clients are assured of proper supply. 

GL: Did your business strategy change for your new online customers?

Anupam: Yes, selling online provided us several learnings and experiences. Since we were able to track our customers’ preferences and understand their needs, we modified our strategy and started catering to specific demands.

The benefit of being an online seller is that manufacturers, like us, may increase/decrease the production of varieties/colours as per customer demand. If any particular colour is selling well, we increase its production.

GL: How has the experience been and what are your thoughts on e-tailing?

Anupam: Now, our online turnover has exceeded our wholesale arm. We have received orders from every nook and corner of India, from far-flung places, including orders from as far as Middle East, Australia, US and Sri Lanka. We have also received orders from places which we didn't even know existed. It has been an overwhelming experience. With the support of my family and friends, we plan to take the business ahead by keeping ourselves updated with latest trends in both manufacturing and retailing. Now I am running two separate entities within by business – online and offline, and I am looking forward to continued expansion from here. 

Anupam Barman is one of the  many business owners to access the big business advantage on GlobalLinker. Because there are no small or medium dreams.

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