Woodland has launched its new campaign as they shift their strategy to ‘Urban’. Woodland is best known as being an outdoor brand but now they want to bring the same philosophy of explorer to urban city life. The film has been directed by Hello Robot, a leading global visual design and ad production firm with offices in India and USA.
The ad film revolves around two maverick motocross riders as they trail blaze their way across Los Angeles riding across everything, except for city streets. They go off road with their bikes and apply that freedom on the urban landscape.
Amit Gupta, Director Hello Robot said, “It was a very challenging production on many levels, productions of this nature often take a year to put together and upto a million dollars in budget. We achieved this in a fraction of the money and time! Each location had to be vetted by our location manager then revisited by the stunt co-ordinator and director. Often due to safety reasons we were unable to use the locations and had to start the process from scratch. We had to co-ordinate street closures in downtown LA and had police escorts through the filming. Some of the stunts performed were extremely dangerous and the stunt teams took days to ensure safety for all the riders. We had support from amongst the best in the business.â€
With a strong presence in LA; they can give access to celebrity Hollywood talent for direction of Indian ad films. With Indian brands growing to a global style appeal, such a level of quality in ad film making is seeing a growing demand. Hello Robot brings together the best of these two countries- the leading film making capitals of the world to put together cutting edge talent and creativity in ad films.
Hello Robot also has the capability to produce ad films across myriad locations across India, Europe and USA. Theirs being a ‘collective’ approach brings together a blend of talent across technical experts and story tellers from across the world. It’s clear that having a base in two of the largest film-outputting regions of the world has its benefits for both their Indian and US clients.
LinTeractive, the digital division from Lowe Lintas + Partners has been awarded Woodland’s online business. The partnership comes on the back of Woodland’s close association with Karishma Lintas, a creative agency of Lowe Lintas + Partners that has been handling the brand’s creative mandate for over two decades.
Woodland is a leading Indian lifestyle brand operating successfully in the footwear, apparels and accessories domain. With the digital expertise that would be offered by the agency, Woodland aims to create innovative digital and social marketing engagements that will further enrich the brand experience.
Sharing his views on the new appointment, Harkirat Singh, Managing Director, Woodland said, “We’re glad to have LinTeractive as our digital partner. We’re confident of charting out a bullish growth trajectory across our verticals on the back of the expertise and solutions that would be offered to us by the digital agency.â€
As part of the association, LinTeractive would be handling online community management, web development, content development, and media duties for Woodland.
Sharing his views on the role that would be essayed by the agency for brand Woodland, Vikas Mehta, Chief Marketing Officer, Lowe Lintas + Partners and Executive Director – LinTeractive said, “Woodland is one of the few Indian brands that have successfully built a strong lifestyle stature for itself, especially among youth. You can’t build a youth brand today without innovating on digital platforms and our agency is very excited to enter Woodland’s timeline. We believe the enormous experience of Karishma Lintas, coupled with LinTeractive’s domain expertise should create some compelling brand stories, on and offline.â€
As part of the growth graph, Woodland currently has 300+ company owned exclusive Woodland stores across various cities in India that are growing at a healthy rate of 25 to 30 per cent. The brand also has a presence in more than 3,000 plus multiâ€brand outlets in a number of countries. With the new partner-agency, the focus would be to get consumers to experience the brand on a more profound level.
The festive season sales have started off well in most of the country with marketers reporting up to 30% jump in year-on-year sales as consumers swarmed malls and markets in the first weekend after the Shraadh fortnight.
Top retailers and brands such as Samsung, Peter England, Woodland, Van Heusen, Indigo Nation, Biba and Scullers attributed the positive start to festive sales to pent-up demand, 10% hike in dearness allowance for more than 80 lakh central government employees and pensioners, and the payout of festival bonus. “The festive season has started off in good spirit,” Harkirat Singh, managing director at shoes and apparel retailer Woodland, said. “There has been a modest 30% jump in sales, with consumers buying for themselves and gifting,” he said.
Consumer electronics and durable-makers like Samsung and LG said that while sales in the east has picked up in the weekend before Durga Puja, in places such as Delhi and Mumbai, consumer enquiries, sales bookings and purchases of large-screen televisions and large home appliances such as side-by-side refrigerators and fully automatic washing machines have increased. Atul Jain, senior vice-president for consumer electronics at Samsung India, said the demand increased by up to 30% last weekend over the previous four days. “This gives us huge confidence as we enter the festival season,” he said. Samsung is targeting a 50% jump in sales in east and 40% rise in national festive sales to around Rs 3,500 crore.
The festive spirit was most palpable in Kolkata where malls were choc-a-bloc this weekend and there were long queues in front of popular stores such as Sreeleathers and Baazar Kolkata on Sunday evening.
Some like Sreeleathers kept their store open from 6 am till 10 pm. SB Dey, partner at the leather products retailer, said that despite extending operational hours, huge rush created long queues outside all his stores. At Great Eastern, the largest durable retailer in the east, sales started picking up from the last week despite heavy rains, its director Pulkit Baid said, adding that sales are up 15-20% over last year. The pick-up in consumer demand has come as a relief for retailers after lukewarm sales during Onam, Kerala’s biggest festival, last month.
Future Group-owned apparel maker Indus League, which owns and sells brands like Indigo Nation, Scullers and Jealous Jeans, said it had to rush in fresh stocks to several outlets across several cities including New Delhi and Mumbai.
“We did not anticipate such a huge demand since Onam sales were comparatively dull this year,” Indus League CEO Rachna Aggarwal said.
Women’s ethnic fashion brand Biba said its sales have grown 35-40% so far this season, almost double the pace of its expectation. “During this season, we usually see a lot of traction in heavy clothing sets which cost around Rs 8,000. But this year, consumers are not shying away from buying garments priced up to Rs 20,000,” Siddharth Bindra, managing director at Biba, said.
Men’s apparel brands Van Heusen and Peter England said their sales are growing 40% and up to 25%, respectively, in the east. “However, sales growth is yet to touch what it was in 2011,” Kedar Apshankar, chief operating officer at Peter England, said.
There has been an increased focus by brands today on being environment-friendly. The outdoor adventure brand, Woodland has been consistent in its effort to be Green conscious ever since its inception. However, now the company is making concerted efforts to imbibe a 360-degree approach going green. It started with in-house effort to go green in their manufacturing process to converting the retail stores to being environment friendly, now the effort it to communicate the same to consumers extensively and rope in partners who would help Woodland in their Green initiatives.
Talking about their approach, Amol Dhillon, Vice President-Strategy & Planning, Woodland, said, “We have been constant in our effort to be environment friendly and sustainability. Our campaigns like Eco Everest, Leave No Trace and Proplanet have always conveyed the message. Our effort is to be carbon neutral by 2015. In this direction we have started listing the eco index on our products and educate our customers on the amount of carbon footprint that they are leaving with each Woodland product.”
The company has been taking conscious effort to make earth a green place like its Eco Everest Campaign where teams of Sherpas who brought in trash from their climb in a bid to keep the Himalayas clean. Then there is the Leave no Trace campaign which is in collaboration with the music fests to connect with young TG and make them conscious about keeping the environment clean. In its effort, Woodland is looking at innovative ways to connect to the youth through popular interactive festivals and events like Sunburn (New Delhi) and Raagasthan (Jaisalmer). Woodland in partnership with these properties has been co-sponsoring the ‘Leave No Trace’ campaign to inculcate a sense of responsibility in the youth towards a clean and safe environment to meet their ultimate goal which is to inspire the next generation and increase their participation in the conservation of nature.
The initiative is heavily promoted by a 360-degree approach thus Woodland making its stance clear on environment and sustainability once again.
Mr Dhillon explained, “We are an outdoor and adventure brand and we believe that we must make an effort to keep our outdoors and environment clean thus we keep finding ways by which we can collaborate in our effort and thereby also connect with our TG.”
The company is now looking at partners with whom they can collaborate in their green initiative. It has recently joined hands with Lufthansa as their green partner and even with Royal Challengers Bangalore in their green initiative. The focus is to partner with more stakeholders in this bid.
Woodland last year committed 15 crore in its Proplanet campaign. In fact the focus is to allocate 5 percent of the total budget in innovation and communication of Green projects.
Woodland hopes to end this financial year with 400 stores that are not just in tier 1 and II towns but also in tier III and IV tows too. The company has been seeing a year-on-year growth of 30 percent in the last few years and in fact the sales this year in November is 50 percent more than compared to the same month last year.
Continuing with the feature we carried on July 2 (Link: http://www.mxmindia.com/2012/07/the-half-year-that-was/), we bring in more views from the industry on the six months gone by. This half-yearly report card is again a mixed bag – while some have had an excellent run, others had few hitches on the way. Here’s bringing views from some leading players of the industry.
Broadcasting:
Rohit Gupta
Rohit Gupta, President, Sony Entertainment Television
So far, it’s been an excellent year for Sony network. And I’m sure it’s been same for the industry, at large. The industry is still growing and there have been no cuts in spends. People are still putting their money in the medium. I’m sure there is no gloom surrounding this industry. Even the 2008 slowdown didn’t affect us. So, there is nothing to worry about too.
Sunil Lulla
Sunil Lulla, MD and CEO, Times Television Network
I would say, it has been testing six months for the broadcast industry. The biggest set-back has been the extension of the digitization implementation. The IBF ran a very good campaign for it but since MSOs couldn’t fulfill the requirements, unfortunately it has to be postponed. My advice to the ministry now would be to take strict actions and make sure the new deadline is met. It is important for the industry since it will shape the industry and help us understand it better too.
By and large, important events in the broadcast industry like IPL, Indian Idol did well and a new show like Satyamev Jayate was launched. However, there is still a gap between how a show performs and what the viewers really want. Hence, I think TAM needs to be more clear and needs to increase its sample size too.
But what really shocked the industry was the new adult timings and ‘A’ restrictions on television. What happened with Dirty Picture’s telecast was regrettable. Nevertheless, after the self regulation imposed by various channels – news and GECs – the quality of content has improved.
As from the business point of view, from January till April, it was good; but May onwards the marketers have had a watchful attitude. It might not impact the industry at large, but a certain sections might get affected. Also, given the current economic climate, one will have to keep a very watchful eye for the near future.
The last six months have been eventful for the broadcast industry. First it was the whole discussion regarding digitization – from notifications to it finally getting delayed. Hopefully, the new deadline will be met as it is positive for the broadcast industry. Also, the new advertising guidelines set by TRAI will make sure that the market doesn’t get diluted.  Such moves will only benefit the industry and help it grow.
However, there has been a slowdown in ad sales and revenue generation. Everyone knows what happened during an event like IPL. It is a slow phase right now, but the costs of purchasing rights are still high. So, it won’t be wrong to say that testing times are ahead.
K Sriram
K Sriram, GM, Vijay TV
The last 6 months in the Tamil GEC space has seen a dramatic change in programming. KBC travelled into Tamil Nadu and with actor Suriya donning the role of anchor. The barrier between the big screen and television was truly breached for the first time. KBC Tamil ensured that prime time television in TN was redefined, as it not only cut across audiences, but also surged ahead of the power cuts and the IPL fever and eroded into SUN TV’s prime time shares. Vijay TV saw a growth of 41 per cent in the year in a market which was otherwise declining. Content came to the fore.
Tamil television also saw the movie acquisition game being taken to another level with Nanban, the hit Tamil adaptation of 3 idiots, being screened within 100 Days on Vijay TV. Another path breaker given that A+ titles before were insulated for a year. Loud and clear in the Tamil GE space – the game just got bigger and in the last 6 months there was only one player playing the game. Competition is sure playing catch up.
Marketers:
Harkirat Singh
Harkirat Singh, MD, Woodland
The overall market in the branded retail segment has been seeing growth. The biggest change that one sees in this segment is that now the growth comes from smaller towns. In the earlier phase, the growth came from metros; and if one ventured into smaller towns in branded retail say a decade back, most likely, things would not fall in place. Now the risk factor in venturing into the smaller towns is much less and there are many players in branded retail who are turning towards these cities knowing that growth opportunity lies there.
For Woodland, last six months have seen steady growth and we intend to open 60 stores this year, though the rider is to expand but be selective. The market, I would say, has been slow. But that is the trend I would say during a particular time of the year where each year business is slow and picks up only later. As for retail, I think the market is vibrant and the sector has been seeing activity and is slated to see increased activity with FDI in retail being relaxed.
Vikas Jain
Vikas Jain, Executive Director and Co-Founder, Micromax
For the mobile phone industry there has been no concern about consumption, as the demand for new sets continues to be on rise. The change being that now the customers are well-educated on the mobile sets they want to buy and with change in technology there have been change in the preference on the type of mobile sets. The key, therefore, is to recognize and anticipate the product in demand and meet the needs of consumers. The players need to create a roadmap of the products to be launched rather than get carried away by technological changes. Keep an eye on the changing trends and tweak the launches accordingly.
On the flip side, the devaluation of rupee has put pressure on the margins and Micromax being a player that vouches for being cost effective will not yield to increasing prices of the phone sets. As for following any trend on cost cutting on the marketing and communications front, we have not done any. We continue to be associated with Bollywood and Cricket and would associate if any good opportunity came to us.
Media Agencies:
PM Balakrishna
PM Balakrishna, COO – Allied Media
I think the months of April-May were on par but June was not so great. The feeling is that of a slowdown for sure. But an advertising perspective there is cause for worry. It’s a reflection of the economy not looking good in the past few months with petrol prices seeing a hike, inflation seeing a rise and other such factors. These factors play a part in the way media spends pan out.
Where television is concerned there were some properties that did well like the Euro Cup recently and also the IPL before that, but then there are signs of slowdown with advertisers not being too keen to be associated with properties and also with the rates coming down. With Print, which sees ads from sectors like Real Estate and so on, there was a sudden upsurge that was seen in June with most property dealers advertising a lot in dailies and magazines. But that may be a sheer sign of desperation because transactions are not really happening or consumers are not really picking up stocks. There has not been a surge from other sectors as well and they are treading cautiously. So if one were to do a quarter to quarter analysis, one would see that there has been a decline in April-June this year compared to the same quarter last year.
As for the revival, what I have observed recently is that clients have been drawing up plans which they might want to unveil soon, probably around the festival season. But I think overall, the growth will meander along in the next quarter also. Probably the last four months of this year may turn out to be good but whether it is enough to offset the slow-burn over the first six months – I am not too sure.
Anamika Mehta
Anamika Mehta, COO – Lodestar Universal
Although we are six months into the year, I do not think the industry will record the original projections that were forecasted. We are just into the first quarter and therefore we cannot conclude much but overall some categories are seeing a slowdown. Sectors like real estate and finance have seen a slowdown in the spends but FMCG companies are yet to go slow. They are playing a cautious game though.
Also, much of the growth is also the result of the current economic conditions which do not look good at the moment. But it will not be all gloom and doom as is being witnessed in Europe but it will also not be a great story as was being propounded forIndia. Also, one cannot predict the exact figure beyond a point but the approach is going to be that of caution.
Sundeep Nagpal
Sundeep Nagpal, MD, Stratagem Media
I would say the media industry in India is already feeling the effects of the economic gloom that has been in the works for some time now. From what I have been given to understand the first quarter of this fiscal has been reasonably difficult. In fact nothing can be said about the trend that will emerge in the next six months as there is some amount of scepticism in the industry. Unfortunately, in our industry fluctuations are happening faster than what we have witnessed before – whether up or down. It takes a lot of deeper understanding and attention to details if one has to figure out what the current media scenario correlates to. Frankly, even I do not have an answer to that. It’s very easy to say that it is dependent on the overall global or Indian outlook but that is too macro a view to attribute to. If I was a media planner, I would be looking at ways to look out for the early signals and accordingly find out the relevant methods to adopt. Overall, the industry may just about see a decline in its growth numbers for 2012 than what was originally anticipated.
Advertising:
Arvind Sharma
Arvind Sharma, Chairman, Indian Subcontinent, Leo Burnett
As the GDP numbers have been showing a slowdown, one can see that it is getting reflected in the advertising spends too. While at peak the advertising industry was showing a growth of 25 per cent, it would be somewhere around 7 per cent in the first half of 2012. At individual agency level, while we have seen a growth on 40 per cent in 2010 and 25 per cent in 2011, in the first half of 2012 we would see a growth of around 15 per cent. But I think at an individual agency level we still can manage fairly good growth as India has close to Rs35,000 crore advertising expenditure hence the need of the hour is to get aggressive and lay claim to the bigger pie from that budget. This will happen from organic growth from current clients to acquiring new businesses. This growth will also come from making our offering robust.
If one were to look at growth, then in our case, I would say that we have seen growth from our existing clients but growth from new clients or from new major initiatives have been significantly less. However, I would say that the mood currently is to be cautious.
PR:
NS Rajan
NS Rajan, Managing Director, Ketchum Sampark
While we have grown by about 20 per cent in the first half, we are witnessing headwinds gathering across various sectors which can in turn affect growth in these segments and consequently the PR business in the second half.
Also margins could be under pressure in the coming months as the increased cost of servicing may not be compensated by incremental revenues unless the economic environment changes significantly which can lift up sentiment.
Launched 16 years ago as a music channel, Star India’s Channel V is now turning into a full-fledged youth entertainment channel. Starting July 1, V will stop airing music programmes in India and focus on fiction and non-fiction shows. The reason: “Over the last two years, there has been an explosion of ‘music only’ channels, but everyone’s playing identical playlists,” says Prem Kamath, executive vice-president and general manager at Channel V. “In order to grow as a channel and as a brand, it has always been critical to have an offering that is unique in our competitive space,” he adds on being quizzed on the decision.
Many experts feel that it was bound to happen as more and more channels try to mould themselves to stay connected with what their target audience wants. But there many questions arise: could this mean the beginning of the end of music on TV? What is the future of music genre? Where is it headed?
The beginning
The scene for Indian music channels was set with the launch of MTV in the early 90s. Soon after, Channel V was launched in 1994, and since then there has been no looking back.
The launch of these music channels also led to a boom in international as well as Indie pop culture. However, it was shortlived and Bollywood music took over, and the two channels, along with many other launched afterwards, started playing popular filmi songs. But over a period of time, these two channels moved beyond playing only music with shows like Roadies, Splitsvilla and Dare 2 Date.
Hemant Kenkre
According to music columnist Narendra Kusnur, somewhere down the line for these channels, music took a backseat: “I’m sure any channel would do thorough research while trying to change their gameplan. So, if a music channel shifting towards being a youth entertainment channel is proved beneficial – for viewership as well as revenue – then it wouldn’t harm them to take such a step.”
He’s not alone in voicing this. Even Hemant Kenkre, a former music channel professional and a corporate and brand communications veteran, feels that channels are now branding themselves differently to reach out to their TG. He, however, does blame the availability of music on various platforms – radio, cellphones, laptops, iPods – as the reason for this shift. “Today, the youth is moving towards reality shows and they want it from the channels meant for them. As for music, they get their share of it from other mediums too.”
Luke Kenny
Former VJ, musician, actor and 9XO programming head Luke Kenny, on the other hand, feels that the channel (Channel V) decided to shift long back and has been moving slowly towards it, but there are still many who want music on television. “If music was dead on TV, then how would you explain other new music channels cropping up and doing well too?”
He added: “Having said that, I do believe that with more channels showcasing Bollywood songs, music channels have lost their niche and have just became promotional channels. Therefore, if a channel decides to change colours, it might work. And you never know, Star India might come up with a new music channel called Music OK.”
Industry talk
If one takes a look at various channels, be it music or a GEC, they will find that, there is a great deal of music in some or the other. We have music trailers/songs aired across all channels. Award shows, too, have musical performances and talent shows like Saregama, Indian Idol, DID and even celeb dance show Jhalak Dikhla Jaa are high on ratings.
Mohit Joshi
Therefore, according to media planners, the existence of specialised music channels is a difficult game. “Today, unfortunately for the masses in India, music equals to Bollywood. This is the challenge. This was not the case in the ’90s when there were a lot of private music albums that were launched -Silk Route et al, and the music channels were used for their amplification. So, there was something more than Bollywood, which is not the case today. In the current scenario, if music channels do not experiment with music or the content, then there is a fear that they will dilute their relevance over a period of time,” says Mohit Joshi, managing director, MPG India.
Adds Carat Media India’s senior VP Himanka Das: “Channel V’s decision to discontinue music is a welcome change and would offer interesting opportunities to build engagement content with the youth, considering the very little content that is available to them in entertainment beyond music. Music as a genre gets 6-7 per cent share in the youth segment of viewers with Channel V contributing 24 per cent to this share amongst 20+ channels. Channel V vacating this space is someone else’s gain!”
Punit Pandey
Meanwhile, other music channels aren’t perturbed and are waiting to see how the channel is accepted in its new avatar. As per TAM (CS4+, All India market), there has been a consistent growth in the music genre. In 2007, the genre share of music channels was 2.02 per cent whereas in 2012 (till week 24) the share has grown to 3.62 per cent.
Punit Pandey, senior VP and business head, 9X Media Group, agreed with Mr Das and added: “Music has, and will continue to, work on television. It is close to a Rs360-370 crore industry (in the HSM belt) and growing. More and more people are ‘watching’ music, so there is nothing to worry about for music channels at large.”
Nikhil Gandhi
Similarly, the view from UTV Bindass which started out as a Youth Entertainment Channel (YEC) and has been a pioneer in the segment is that though in the recent past music channels, especially MTV and Channel V, have started shifting focus from music to fictional and non-fictional shows, there is no reason for sleepless nights. “We have an advantage over other channels entering the YEC genre as we have already created a connect with the TG,” says Nikhil Gandhi, Disney UTV Executive Director – Youth Channels, Media Networks. And adds an alert: “So, I would like to tell other channels entering the YEC genre to work on their strategies well.”
Apprehensive marketers?
The change in positioning is due to the feeling that youngsters now have a strong spending power. And, hence, are targeted by various brands more than ever before. TV forms a core part of advertisement for these brands as youngsters also spend a lot of time in front of the television sets.
Simeran Bhasin
But what happens to youth brands if a channel changes its content strategy? According to the various marketing heads, the apprehensions will emerge if the channel isn’t clear about the shift and isn’t able to help a brand reach its TG.
“If the TG of a brand matches that of the channel, it won’t matter if they decide to change over a period of time. However, if there is a shift in TG then a brand would think twice before advertising on that channel,” says Simeran Bhasin, head – Marketing and Retail, Fastrack.
Harkirat Singh
MTV’s latest show Sound Trippin was partnered by Woodland because the brand feels that youth oriented channels helps them reach their TG. However, the brand is clear that it get associated with channels or shows only if it feels there is a connect between the brand and the viewers. “Like any other brand, while media planning, the TG of a certain channel is important for us. We look for shows which are able to reach and connect with our TG. So, if a channel changes its content plan, we will want to go through their new strategy to figure out where do we figure and how it can benefit us,” says Harkirat Singh, MD, Woodland.
Will the shift work?
According to the industry professionals, the change in content plan by a channel is done after a lot of research and only time can decide if it will work in its favour or not. However, they believe that a channel should remain true to its philosophy because otherwise it will lose its identify as well.
Samyak Chakrabarty
Expanding on it, Samyak Chakrabarty, MD, Electronic Youth Media Group and Chief Youth Marketer, DDB Mudra Group believes that ‘youth’ is a very misunderstood word and youngsters cannot be defined in one category as all depends on the exposure and the background one comes from. “In their perception to become ‘youth’ channels, they are getting muddled up and don’t know where they are headed. Today, a youngster cannot associate MTV or Channel V with anything like they do for other brands. For instance, technology means iPad, connectivity means Blackberry etc. I think music channels should have remained with what they started as, instead of losing their identify to gain more TRPs. Such moves will only lead to their downfall, in the long term.”
From being largely optimistic to one predicting a downfall, we received mixed reactions to the proposed change in Channel V’s identity. However, one thing is clear, no matter what Star India decides, there will be many who will wait to see what this mean for them and the genre, at large.
Just like an unusual April in Delhi when temperatures remained below 40 degress, retailers are dishing out discounts and special offers to attract buyers in early summer. From Future Group’s Big Bazaar to Lifestyle and Marks & Spencer, almost all retailers are courting buyers through special offers as growth remained muted in March and April. With the overall economy looking weak, customers are tightening their purse strings amid low increments.
Big Bazaar just concluded its first-ever public holiday sales, while Marks & Spencer is offering 30 per cent discount to liquidate stocks. Ditto for FMCG major Godrej that has announced offers for its furniture brand. Woodland says it has intensified its promotional activities, Lifestyle Retail is offering discounts and freebies and Shoppers Stop is offering higher rewards.
Although retailers are choosing not to talk at the moment, numbers point to slower offtake. For instance, Shoppers Stop, which reported an 87 per cent decline in fourth quarter net profit, has seen a 3 per cent rise in transaction size, despite the average selling price going up 9 per cent. Even conversion rate is down 5 per cent despite footfalls rising 29 per cent during the fourth quarter.
Spencer’s Retail says its same store sales growth has moderated from 12-13 per cent during 2011 to around 8 per cent during January-March 2012. Same store sales is a measure used to gauge how sales have been in stores that were operational in the previous year.
While brands are aiming to revive buying sentiments, for some the offers are intended to make up for the backlog from the last season. A store manager at a Pantaloon Retail outlet in Delhi said while it had increased prices by 12 per cent last year, in some cases the company has been forced to slash prices by around 20 per cent to boost sales.
“Buyers are waiting for the sale period to make purchases as things have become more expensive. We have to offer some incentives to retain customers even though our profit margins have reduced,” said the Pantaloon store manager.
“It has become more challenging for a retailer to keep his customers engaged. Buyers are now more demanding and are always looking for offers and discounts,” said Harkirat Singh, MD, Woodland.
Godrej Interio associate VP Subodh Mehta said offers tend to get customers to purchase. With sales growth around 25 per cent, compared to the 30 per cent target, the company is not just offering discounts of up to 20 per cent on furniture but is jacking up ad spend by close to 20 per cent. Godrejs’ same store sales grew 15 per cent (3 per cent below target).
“Buying sentiments will remain choppy due to the uncertain economic scenario. Customers need to get back disposable income to start spending again,” said Ankur Bisen, associate director (retail) at Technopak.
There has been an increased focus by brands today on being environment-friendly. The outdoor adventure brand, Woodland has been consistent in its effort to be Green conscious ever since its inception. However, now the company is making concerted efforts to imbibe a 360-degree approach going green. It started with in-house effort to go green in their manufacturing process to converting the retail stores to being environment friendly, now the effort it to communicate the same to consumers extensively and rope in partners who would help Woodland in their Green initiatives.
