Showing posts with label Versace. Show all posts
Showing posts with label Versace. Show all posts

29 September, 2011

Controversial Ads, Branding and Footfalls

There has been a lot of furore over the recent so called “indecent” advertisements in the mainline media by “Flying Machine” (FM), a popular denim wear brand in India for close to two decades now. The brand, which was one of the earliest entrants in the denim wear market competed with international ones such as Lee, Levis and Pepe since the late 90s and has hence maintained its position as an entry level fashion wear due to its affordable price tag and distribution reach – since it shares shelf space with other brands such as Arrow and Lee from the house of Arvind Mills. The debate is about how much indecent an ad can get and what the society would feel rather than its impact on sales! Well.

(Suggested reading: National Shopping Day)

Denim Market in India is highly unorganized – with less than 25% of all denim wear sold at Organized retail outlets such as Shoppers Stop, Lifestyle, Central Malls, MegaMart, Brand Factory, Fashion @ Big Bazaar and other exclusive brand stores. We have denim wear (bottoms) starting from as low as Rs. 200 (1 USD = Rs. 48 approx) on footpaths at Linking Road in Mumbai, Janpath in New Delhi, Commercial Street in Bangalore, etc. to over Rs. 10,000 across premium brands such as Tommy Hilfiger and Diesel and in the range of Rs. 20,000 – Rs. 40,000 across exclusive luxury brands such as Versace and Armani. Denim for long was not considered a comfortable dress to use in India due to various reasons;

  • The texture/fabric was rather thick – and many thought it wasn't suitable to wear during hot and humid weather which is the case across the country for 6-9 months a year
  • Washing the Denim wasn’t an easy affair since most households (in the urban areas) didn’t have Washing machines and maids would complain washing denim by hand due to its heaviness when soaked in water
  • It wasn’t well accepted in the society – Colleges had banned them, Offices preferred formal attire and hence Denim was rather dedicated for a select few special occasions
  • Women were not the main Target consumers, essentially because denim bottom wear couldn’t be well coordinated with other dresses in the wardrobe
  • Blue and Black were the only colours mostly and the “fit” was standardised

Things have changed and how over the last decade!

The fabric has been well-treated to ensure it is light-weight and easy to wear. Also most reputed brands mix denim with cotton fabric, thus ensuring sweat is absorbed and hence making it a comfortable thing to wear all through the year. A fully automatic Washing Machine from a reputed brand that used to cost over Rs. 20,000 during the early part of the past decade is almost half the price now. Most urban households have moved away from the concept of house maids (especially for washing clothes) and now boast of semi-automatic or even fully-automatic washing machines which also dry the clothes after washing within an hour! Most colleges do not have such bans anymore, as long as the students wear decent clothing! More and more offices are moving towards smart work-wear and hence denim (especially on Fridays / Weekends) at most offices and all week across companies in the IT and ITES sectors, Ad agencies, etc. is an accepted norm. Denims are now available in various colours and women coordinate with traditional looking “Kurtis” or short-tops. To the benefit of consumers and retailers, the market has indeed evolved for good. The number of “fits” available today is exhaustive and one can really choose the best fit for oneself – mostly across brands.

(Suggested Reading: Customer Service)

So, do brands in this space still need controversial aspects to advertise, to divert attention? FM is not the only exception. During a Fashion Show last year, actor Akshay Kumar, the brand ambassador for Levi’s walked up to his wife and yester year actress Twinkle Khanna who was seated in the front row for her to open the button fly in full public view! The act was a trending video online and the photos would have been searched a zillion times! Bizarre, some quipped. What a great attention seeking tactic, many others said. “Seeking Cheap Publicity” – a few blasted. Well, no more than that.

Leading Business newspaper The Economic Times has carried an interesting article over the weekend that illustrates how internationally denim brands use controversial advertisements and other such acts especially in the print media to create attention. The big question though is “Has it increased Sales?”. the answer is a big NO. But what it does is create a flutter effect – people get talking about it and the word spreads faster these days than before, thanks to powerful social media tools such as Twitter and Facebook. For Retailers (and Brands), the most important outcome for any investment is a substantive increase in footfalls at its stores. Research has it that only 30% of men and 60% of women who enter a store undertake “product trials”, however over 80% of those who took a trial end up buying the product. And this applies all the more for Denim-wear because each fit is different and unique in its own sense. Now, do such Ads pull shoppers into the stores? No. And hence the question of “new trials” doesn’t arise. However, Ad agencies benefit enormously in the meanwhile. #justsaying

(Suggested Reading: The Levi’s way of collaboration)

I bet if such ads are a great way of brand-building, especially when the Brand is communicating to middle-class masses who neither understand nor appreciate such bold communication. It is a lot different when showcased at Fashion Weeks in London or Lisbon, Paris of New York. For now, the focus should be on creating Ads that have a pull-effect; one that attracts the eye of potential shoppers and drives them to the stores. If not anything, the Retailer’s names and contact numbers could have been a font bigger in the said Ad. If only someone is wanting more footfalls, that is.

13 September, 2011

Luxury Retailing in India

 

Last week was a fascinating one to the world of Travel Retail and Luxury Retail. One of the world’s most coveted luxury brands, Louis Vuitton from the house of Moet Hennessey Louis Vuitton (LVMH) finally debuted at Incheon Airport in Korea (which has also been ranked the number 1 airport in the world in passenger satisfaction by ACI International) amid much fanfare and excitement according to the first online update from The Moodie Report. Korea, which is famous for its “cheaper” alternatives in electronic products and automobiles (led by Hyundai) was the obvious choice for the cult brand since it is the most preferred transit destination between Mainland China, Japan and Korea and the rest of the world. Louis Vuitton was also ranked the number one luxury retail fashion brand (behind Hermes, Gucci, Chanel and Cartier) by the media house “My Retail Media” recently. LV, as it is popularly known, is most famous for its accessories & luggage (which ranges between USD 500 – 5,000) and is one of the last brands in the “Luxury” segment to enter the glamorous world of Travel Retail. Such is the potential of passengers travelling through airports!

(Suggested Reading: Travel Retail)

When LV entered the city of Bangalore in India (2008), it had installed a huge trunk outside the terminal building of Bangalore International Airport (BIAL), a first of its kind in the country but one which the brand does quite frequently across the world. Apart from this, LV operates at Delhi and Mumbai and is looking forward to expanding across other Indian cities in times to come. Hermes opened its first outlet in Pune this year, which was later followed by its flagship store at Mumbai. The beauty of this location is that it opened its store where the distance from / to Mumbai is ‘0’km (zero km)! Other luxury brands such as Gucci, Chanel, Cartier, Rolex, D&G, Armani, Hugo Boss, Omega, etc. have their standalone stores at Mumbai, Delhi and Bangalore. Although, the offtake is not as expected, according to market reports. There was even a recent article online in which the writer claims that the “Indian Luxury” market is a not as successful citing examples of how Nita Ambani (wife of Mukesh Ambani, one of the world’s top billionaires and the Chairman of Reliance Industries) shopped her porcelain from nearby Sri Lanka for their new billion dollar home! Indeed, Gucci, Prada and their ilk in Luxury Retail have not taken off the same way in India (estimated at less than USD 1 billion compared to that of USD 17 billion in China) but I wonder if that’s just the measure.

(Read: World’s cheapest car and its possible impact on Retailers)

The article also quotes the number of dollar millionaires – I guess, the methodology in itself is flawed. There is probably more “black money” in India than in white, hence it is not the best way to assess the wealth of native Indians. Mercedes Benz, the oldest German luxury automobile in India along with with its country counter parts Audi and BMW sold over 2,500 cars last year (at an average price of USD 100,000). Property Developers such as DLF, Prestige, Sobha and many more are developing high-end customised villas that range from INR 2 Crores to 5 Crores (USD 500,000 onwards). A typical Indian middle class family spends between USD 20,000 – 50,000 – something that’s unheard of in the Western world where Church weddings do not accommodate more than a 100 people while the big fat Indian weddings feed over a thousand people, twice a day, for 3-7 days! If western wear and accessories are any measure to say that Luxury Retail in India hasn’t take off, that’s right. But then, the Indian shopper doesn’t consider Western wear for day today use and hence their usability is restricted. The article claims that even an entry level secretary in Japan or China would sport a LV bag (it doesn’t mention if original) which is not the case in India. (But they do sport gold jewellery which is not considered…). High end electronic gadgets are favourites with the working middle class including the iPod, the iPhone the iPad and a wide range of mobile phones and related accessories.

I wonder why “Luxury Retail” in India is always connected with western apparel and accessories. Women do not sport western wear to work everyday! And the reason is simple – an average Indian (women) is more comfortable in her Indian clothing. The climatic condition is more conducive for comfortable dressing and hence their preference. Would this change in the next 20 years, yes. Would it match the world markets? No. I can assure that this market will never be the same in size as what it is in Japan or China, forget Europe or the US. Indian women and the society at large are indeed embracing western wear in a big way, especially for formal occasions at workplace. Even for holidays and other occasions. However, the appreciation for high-end Luxury remains lukewarm since the reasons to wear (other clothing) is far more. Cufflinks are famous all over the world to match blazers, jackets or suits. But a majority of people in the working class do not wear a full-sleeve shirt to work, forget other accessories! And the reason is that the Indian weather conditions do not permit wearing a heavy suit all day at work. Two thirds of the working class still commute in public transport (Metros / A/c buses) and two-wheelers and hence prefer an easy attire than the complicated ones. This is one reason why “wrinkle-free” shirts and trousers are a big draw in the country.

(Also Read: Luxury Retail at Airports)

But no one bothers to compare the gold consumption in India – the most coveted precious metal with the rest of the world. Some one from the Jewellery industry told me recently that if all the gold in Indian houses is collected and offered in the world market, the price of it would be cheaper than that of copper! Really. That’s the amount of gold that is collected and retained in India. For Indians, gold (Swarna, as in Goddess Lakshmi) is bought for various reasons – as traditional jewellery, as savings for future, as a means to display wealth and so on. A former minister from the state of Karnataka who was recently arrested and jailed apparently had a gold-plated chair and even cutlery / crockery for dining at his home according to press reports when the CBI raided his house!

I am sure that the Luxury Market as opined by experts will indeed grow - Coupled with better Retail Infrastructure and Government taxation norms. Soon, one can expect an LV at an Indian airport too. You never know. It’s just a matter of time.

27 March, 2011

Redefining Airport Retail – Terminal Three, Delhi Airport



It was the first time ever (and hopefully the last time) that I ever missed a flight. Was stunned by the fact that something like that could actually happen! It wasn’t because I was wandering across the sprawling retail areas of the airport but because of a silly gaffe. Anyway, the pupose of my visit was fulfilled with a three hour walkthrough across the various areas of the airport. Although it’s been already written and told a few times so far, here’s a firsthand account of what’s for an avid shopper at T3. Firstly, if you were to really explore this place, block 60-90 minutes ahead of the scheduled boarding time (not the departure time). The design of the airport terminal is such that one enters the main hub after security check and then there are different spokes (or arms) which lead the passengers to the Boarding Gates. The Hub is where most of the Retail and F&B action is. So, be prepared to walk a long way before you finally get seated into the aircraft. Undoubtedly one of the most modern airports in the world, T3 as it is famously known is constructed and managed by the GMR Group which also manages the Hyderabad Airport in India and Ataturk Airport in Turkey.

As with most international airports, the Check-In and Arrival areas are common for both Domestic and International passengers. While there are limited Retail and F&B opportunities in these areas (mostly for convenience), I guess it is more by design since the passengers are expected to spend time and money in the main commercial areas after security check.  The walkway for passengers is through the retail stores – an interesting idea first explored at the Bangalore International Airport, which is predominantly how airport retail layouts are planned and executed world over. The idea is to make the passengers walk through the stores – the store aisles are identical to the walkways and hence give immense opportunity to convert passersby into potential customers. In the Domestic Departures, one is welcomed with a fascinating WH Smith, the UK based books and stationery retailer through a joint venture in India. Adjacent to it is another British Giant – Marks & Spencer that showcases daily wear fashion for men and women including accessories. The undergarments’ section at the entrance was a surprise – am sure store planners would have visualized some other way than reality. Then there are other major retail brands such as Fab-India and Swarovski showcasing Indian and International contemporary fashion, Croma Zip, the electronics mini-format from Tata Retail, Perfumes and Cosmetics from home-grown Parcos, Toys and early learning products from ELC, Sweets and Confectionery from Chokola and local delicacies from Haldirams. The F&B range is rather remarkable – given that passengers prefer to spend more time at bars and restaurants. T3 is the second home for Coffee Day Square that serves the most premium single-origin coffee sourced from all over the world apart from the regular fare that’s available across its other 1,070 cafes; Kingfisher Good Times Bar as the name suggests welcomes tired passengers to offer one for the runway; the massive foodcourt in the first floor offers over a dozen Indian and International offering– over 300 exciting items to choose from. On the way to the gates, there is also Dilli StrEAT – a superb idea that showcases local food delicacies. And then there are the Lounges which overflow (read pax waiting outside for some of them seated to move out) during the peak hours.

Given that our domestic passengers are not habituated to shop at airports, it was surprising to see such a spread-out retail offering. For example, the distance from the Business Lounges / Shopping & Dining areas to the Boarding Gates could be between 200 metres to 1,000 metres which means one may have to walk between 10-20 minutes to reach the aircraft.

The International Departures (after Emigration and Security check) is quite similar, except that the entrance is welcomed by one of the most fabulous Duty Free selections across categories such as Liquor and tobacco, Scotch whisky, Premium Wines, Perfumes and Cosmetics etc. Ethos, India’s largest retailer of watches and timewear operates a premium watch boutique. They have indeed walked a long way in Airport Retail after debuting in Bangalore Airport in 2008 and thereafter at Mumbai Airport. Then there are other premium and luxury brands such as Versace, Hugo Boss, Samsonite Black, Swarovski, Mango, Kimaya, etc. An interesting idea is the Indian souvenir and gifts shop - it also includes a SPA / Therapy centre and is welcomed with exciting artifacts and a photo of the Mahatma with a Charka – quite didn’t understand the significance except for a small note on “Service”. Coffee Bean and Tea Leaf has a cafĂ© in the ground level but for a more detailed fare, one has to walk up to the first floor which has a massive food court and a special area for children to play – I guess the planners would have thought children would be playing while the adults are having a bite at the foodcourt which is again located between 200 – 1,000 meters from the Boarding Gates.

The kilometer long piers (at Domestic & International Departures) that connect the main building to the Boarding Gates do have some F&B opportunities, but the menu is selective and doesn’t attract passengers quite a bit, unless there is a compulsive need to stop-by. Pepsi is the exclusive partner for this airport and hence one can find a vending machine selling various packed beverages every 20 meters. Vodafone is the prominent telecom partner and even offers free browsing!  There are a number of ATMs, just look for them and you have the convenience of picking up cash on the go. 

Overall, it’s a joy to be at this Airport Terminal for which we have waited for many years - this airport was completed in 37 months with a capacity to manage 34 million passengers a year in comparison to Singapore Changi T3 (76 months, 22 million pax capacity), London Heathrow T5 (60 months, 25 million pax capacity) and Beijing T3 (60 months, 45 million pax capacity) – easy in and easy out - 168 check-in counters; 49 emigration counters, 46 immigration counters; in-line baggage handling system with a capacity to handle 12,800 bags per hours; 97 automatic travelators and 78 Boarding Bridges; an overall area of 5.4 million sqft including 215,000 sft of Retail space! Just that it takes too much time than anticipated, so double your proposed time if you want to pass through the Retail, F&B areas. As for shopping, if you still do, then Happy Shopping.

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