Van Heusen - From Power Dressing to Powerful communication

Madura Garments, the blue-eyed Retail business of the Aditya Birla Nuvo – among the most respected companies and a long-time Retailer in India, recently launched a powerful communication for its most revered Brand – Van Heusen, popularly known as VH. Calling it the “Master of Ceremonies” (probably pun unintended), the new line of Suits and other dress materials has woken up the upper segments of the apparel maket even during this so called “slowdown”. Typically focussed on the Middle and Senior Management of the working class, Van Heusen has many firsts to its credit. Those who are in the know would remember the olden days of classy exclusive Van Heusen boutiques in large and small cities all over India. Although the imported brand rights were licensed into India by the Birlas many years ago, most consumers thought it to be a really international piece, not just for its name but for its sustained styling and creations, needless to mention, an International ambience at its stores and well trained and groomed staff always around to assist customers.



Many would know that the Brand also associated with the main character of a recent Hindi blockbuster, Ghajini, and thereby bringing back the culture of waist-coats to Board Rooms. The weather conditions, however, in most Indian cities was a deterrent for this to become usable and popular. A few years back, another flagship brand of the company, Louis Phillippe associated itself with the powerful character played by the lead role in the Hindi movie DON. And many other Brands used and are continuing to use the Hindi filmdom, popularly known as Bollywood as well as other local language films to launch and showcase their collections.

Coming back to the MC Collection from VH, there is a great effort being taken by the Retailer this time. Similar to how international brands prefer taking appointments from their key clientele and make the brand feel superior, VH has taken a similar route this time around – to entice focussed walk-ins into the retail store. One needs to just call up a phone number and book an appointment for an exclusive “dekko” of the collections avaialble at the store. As is anyone’s guess, the conversion is almost certain, given the Brand’s equity in the market and the conviction of shoppers to posess this Brand. And most importantly, the pricing is not too high – ranges from INR 9,000 - 15,000 (USD 180 – 300). Freebies such as a matching Tie and a breast-pocket handkerchief, as always are packaged smartly along with the main offerring. This is being tested for two months in a row – May and June 2009 and in all probability, the Brand may retain such an exclusivity in future at certain stores in large cities.

Now, my point to make here is the attention given to the customer in today’s scenario. Losing regular shoppers to competition is usual, but losing shoppers due to an economic slowdown doesn’t happen frequently, not even in a few years’ cycle. This is the time Retailers must take care of the customers more than normal – pamper them as much as possible with innovative, yet simple ways to get them into the stores. As you would agree, atleast in most parts of India, many are holding back their spending – a typical phenomenon of sitting on the fence. Show them the value, and communicate with them in such a way, that they get down from the fence and walk into the stores, and that’s really half work done. And then, the Merchandising has to lead from there. Very few have realised this in today’s market condition. And they are sure to reap benefits. Like in Management, there are three types of Retailers – those who achieve success, those who watch, and then those who wonder! Clearly, our example here has always been the first – and it continues to strive excellence.

Luxury Retail at Airports

The so called economic slowdown has not dented the prospects of Luxury Brands and labels, atleast in India. According to recent reports, Luxury Brands across categories are actually opening more stores and are recording higher sales than before. One of the reasons stated was that these consumers would have normally bought these products at Singapore or Dubai or Hong Kong while they were travelling (on vacation or business) and now since they are not travelling too much, they are buying these products in their neighborhood... err., that’s within India!

Sounds logical, but personally am unsure how true it is without a sound research or backing. Another reason that is usually stated is that these consumers are price inelastic (or rather recession inelastic, if you may allow me to say!). And that’s why more people are interested to procure that coveted C-Class or 7 Series at 5% Interest or low EMIs. Sometimes, I get confused with what recession does to people.

Having said that, it’s always interesting to watch how people embrace luxury. The new age malls are creating a niche (if not already) for a select breed of people to meet in a defined environment. Whilst sipping that decade old wine, they also talk about how a European Airline treated them so badly, by not upgrading them to First Class from their Economy Class tickets, in spite of having enough air miles to their credit (and anyway the planes fly empty these days).

These are the same consumers who are the core audience for Luxury Brands at Airports. And these coveted Brands take up prime space at Airports mainly to be in touch with their audience - to launch a new line, to talk about new promotions and to keep pampering their regular shoppers with exciting offerings. Many wonder if these Brands actually do any business at all, and if yes, would that be enough to sustain the (perceived) high rentals at Airports. Contrarily, these Brands actually take space to showcase themselves for their markets. And then, of course over a period of time, they build reputation and connect with the frequent travelers. And thereby it becomes a strong reason for them to expand inland. This is one way of course.

However, many Brands prefer to do it the other way – to first open large stores inland and expand within the city/country and then to come to the Airports. It’s quite difficult to say which model works best, but keeping in mind high operating costs in the city and in the country, it may look more feasible to take shop-in-shops or run Specialty stores with the main Airport Retailers. One way or the other – it’s just another reason to be in touch with their consumers. In today’s market scenario, one would agree “out of sight is out of mind”, all the more reasons to be in touch.