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Money control.com
11/7/12
Money control.com
positioned between designer wear that costs the moon, and mass market stuff that is cheap, but commonplace. This space is defined as the bridge to luxury. Worldwide, at one end of the spectrum, there are marquee brands such as Louis Vuitton, Armani, Bulgari, Gucci and Burberry that are synonymous with luxury, and at the other end there are unbranded, cheap, mass-marketed clothes. In the middle is the bridge-to-luxury, which a customer crosses, before graduating to high-end luxury. __PAGEBREAK__ On this bridge stand global brands such as Tommy Hilfiger, Calvin Klein, Zara and Armani Exchange. These brands become relevant to upwardly mobile customers as they move up the value chain. The Indian market is structured in much the same way. At the top end, there are high-end fashion designers vying with global brands, while at the bottom end there are thousands of players catering to the mass market. What makes the Indian market different is the dearth of brands in the bridge-to-luxury segment. Apart from foreign brands, which have a scattered presence in the major metros, there arent any brands that cater to the growing aspirational demands of upwardly mobile Indians. Zara is the acclaimed leader in this space, and is doing business worth almost Rs 200 crore in India, just two years after opening its first store. It has just nine stores across four cities. Dongres approach is unique, starting off in the bridge-toluxury segment, and then moving up the value chain with Anita Dongre Timeless. Usually designers begin at the high-end luxury segment, and then move to commoditising their brand. She is also heading towards the next big challenge: AND Men has just been launched. Very few designers are able to snag both genders. The Backend AND Designs has followed Zaras strategy of showcasing fresh designs and multiple collections throughout the year. The company has eight or nine designers for AND and Global Desi, and they turn out new designs every month. Every week, there are brand meets for each of the four brands, during which samples are displayed in front of Dongre and her merchandisers. They select the designs they like and check their commercially viability. Only then does a design go into production. Nine merchandisers employed by AND study trends, purchasing power and willingness of customers to spend on certain clothes, and styles that work in Tier II cities as opposed to metros. They travel every month to various AND and Global Desi outlets in different cities to gather customer data. They speak to the staff at these stores about what customers like, and what they are looking for. For instance, a girl in Lucknow will be willing to spend Rs 2,000 on a pair of jeans, but Rs 1,000 for a top. The merchandisers also found out that coloured denims, currently in vogue, had skipped the design teams notice, and were not available in any of the AND stores. The data provides an insight into what designs will work and what will not, and helps in taking decisions on the quantity of each design that should be stocked.
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11/7/12
Money control.com
One of the key factors behind Zaras success is its excellent logistical network, which allows it to refresh designs at its 1,600 stores globally almost simultaneously. For Dongre s company, churning out fresh designs every month to more than 85 stores and more than 270 points of sale is quite a challenge. Although its logistics and distribution is running smoothly at present, it might pose problems as AND scales up. Dongre has also avoided using the Bollywood route to building her brand, unlike luxury designers Sabyasachi Mukherjee and Manish Malhotra. Eight or nine years ago, Dongre had been the designer for a film. Her experience had been a harrowing one, and she vowed never to work for a movie again. Bollywood needs stylists, not designers, says. A lot of these she stylists pick up clothes from my stores, but just as regular customers. But opinion is divided on how useful the Hindi film industry is. In a country obsessed with religion, cricket and Bollywood, it would be silly not to partner with Bollywood to take your business forward. Bollywood can be very difficult or very embracing, depending on your personality. It is very difficult to make inroads, says Mukherjee. Malhotra has a different take on the issue: Bollywood definitely helps you get noticed, but it doesnt guarantee fame. You will sell a few garments, but what after that? Click here to read more More Forbes India Story
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