CHUMBAK and its Transformative Leadership by PG SINDDIYA

Transformative leadership can have numerous benefits for small businesses. This leadership style focuses on inspiring and motivating employees to achieve their full potential and drive positive change within the organization.

Benefits

• Increased Employee Engagement

• Enhanced Innovation

• Improved Employee Morale

• Greater Adaptability

• Increased Employee Empowerment

• Better Communication

• Enhanced Problem-Solving

• Talent Development

• Improved Customer Relations

• Sustainable Growth

Example of Transformative leadership and benefits

Chumbak — A Lifestyle Brand

Background:

Chumbak was founded in March 2010 by Vivek Prabhakar and Shubhra Chadda to create fun and colorful Indian souvenirs. It has since grown into a lifestyle brand with locations in Bengaluru, Mumbai, and Delhi. It also has flagship stores in Bengaluru and Delhi, as well as online stores.

In 2009, they sold their house for Rs. 45 lakhs to finance their Company called Chumbak.

Chumbak marketed its goods primarily through its distributor network and online presence from 2010 to 2013. They opened their first office in Bangalore in 2013 and began extending their operations to other cities. Currently, the Indian gifting Chumbak Brand has grown to be the most successful gift brand globally, with over 150 stores and a strong E-commerce presence. According to Crunchbase, Chumbak began by selling a house worth Rs. 45 lakh and has since received a total of $28,868,814 in funding from Narayan Ramachandran, Blacksoil, and Gaja Capitals, in addition to their seed funding.

Shubhra Chadda and Vivek Prabhakar, like many others, struggled at first, whether it was finding the right vendor or having the ideal template for their customers.

Chumbak claims that year-over-year growth is about 300%. The organization has benefited from the hybrid model, which includes both an online and offline presence. It is now relying on different technological channels to maximize the contribution of its online revenues to its overall earnings of at least 30%.

Transformative Leadership Benefit in Chumbak:

1. Creativity and Innovation: Shubhra Chadda, one of the co-founders, demonstrated transformative leadership by fostering a culture of creativity and innovation within Chumbak. She encouraged her team to explore their artistic talents and draw inspiration from Indian culture.

Result: Chumbak’s product line became known for its unique and vibrant designs, setting it apart from competitors in the market. Customers were drawn to the brand’s distinctive products, contributing to Chumbak’s growth.

2. Employee Engagement and Morale: Shubhra Chadda and Vivek Prabhakar focused on creating a positive and supportive work environment. They valued their employees’ input and ideas, making them feel like integral parts of the company’s success.

Result: High employee morale led to a dedicated and motivated team. This employee engagement translated into better customer service, product quality, and overall brand reputation.

3. Adaptability and Expansion: In a highly competitive retail market in India, Chumbak faced the challenge of expanding its presence. Transformative leadership played a pivotal role in helping the company navigate these challenges.

Result: Chumbak successfully expanded its retail presence across India and ventured into e-commerce, adapting to changing consumer preferences. The company’s ability to embrace change and seize opportunities for growth allowed it to establish itself as a well-known brand in the Indian lifestyle market.

4. Talent Development: The leadership at Chumbak recognized the potential of its employees and invested in their development. They provided training and opportunities for growth within the organization.

Result: Many employees at Chumbak have grown within the company, taking on more significant roles. This talent development strategy reduced turnover and ensured that the company had a skilled and loyal workforce.

5. Community Engagement: Transformative leadership extended beyond the organization’s boundaries. Chumbak engaged with local artisans and craftsmen, helping them showcase their work through the brand.

Result: Chumbak’s commitment to supporting local talent and artisans resonated with customers who appreciated the brand’s socially responsible approach. This community engagement not only contributed to Chumbak’s success but also had a positive impact on the local communities it worked with.

In this example, transformative leadership, as demonstrated by Shubhra Chadda and Vivek Prabhakar, played a vital role in Chumbak’s growth and success as a small lifestyle brand in India. Their focus on creativity, employee engagement, adaptability, talent development, and community engagement helped Chumbak stand out in a competitive market and establish a strong brand presence.

Conclusion

It’s important to note that while transformative leadership can offer these benefits, it may not be the best fit for every small business or situation. The effectiveness of this leadership style depends on factors such as the business’s culture, the leader’s abilities, and the needs of the organization. Small business owners should assess their specific circumstances and determine whether transformative leadership aligns with their goals and values.