Retailers search for right fashion formula

Are retailers tapping the country's Rs 3 lakh crore fashion industry judiciously? "No," say the domestic and international retailing pioneers.

The industry leaders say domestic retailers are either not offering the right products to local consumers or not discovering their own identity while aspiring to go global.

Hem Chandra Javeri, co-chairman of Fashion Alliance and president of Madura Garments, believes that the consumer is defining standards that only the nimble can survive.

"We are on the threshold of a huge opportunity. With the organised retail sector expected to grow from 3-4 per cent to 10 per cent by 2010, the fashion retailing has no reason to slow down in at least 10 years," said Javeri during the Images Fashion Forum.

"It is a challenge for all retailers on how the industry can drive the economic growth and make it relevant to Indian consumers," he added.

Javeri feels domestic retailers are following global fashion trends blindly. He said, "Do we need a Spring/Summer, Autumn/Winter collection in Mumbai, which has no winter? Or do we create a unique season for India?"

Stressing the need for a consumer-centric approach, he said the local consumer does not care whether it is Indian or foreign retailer. "The real challenge is whether the consumer is getting what he is looking for. When an international retailer enters India, initially he will have advantages. But finally, he succeeds only if he can deliver to the consumer," Javeri said.

Illustrating the fashion retail scenario with the characters of lethargic Mohan Pyare, opportunist Gurubhai and the latest international entrant McKinsey, Future group CEO Kishore Biyani gave a wake-up call to retailers in the fashion industry to exploit the opportunity.

Comparing fashion retailing with mobile telephony, Biyani said in less than 10 years the cell phone industry has overtaken the fashion industry. "A single company's market capitalisation is more than the total fashion industry. The largest fashion player is worth Rs 2,000 crore, while the biggest mobile phone company is Rs 20,000 crore," he said.

"There are only six players in the mobile segment, but the fashion industry has thousands of players," Biyani added.

Other interesting point Biyani made was about mobile phone companies catering to the Rs 3,000 entry segment to the Rs 30,000 premium segment. "The Nokia model has worked wonders for the company," he said.

"Though there is enough opportunity in low and mid-priced products, the fashion industry is over-focusing on premium products. There is not a single company in the fashion space that sells products at all the price points," Biyani said.

Biyani believes that only acquisitions need not drive growth. "Collaboration and partnerships will also give profit, margins and growth," he said.

Asking the industry stakeholders to create a fashion category mindshare among consumers, Biyani said retailers should try and make consumers spend more on fashion.

Speaking on the vision of global fashion brands for the country, Bill D'Arienzo, CEO, WDA BrandMarketing Solutions, said, "Indian middle/upper brands must establish themselves at home before they can go global, and global joint venture partners will expect this."

Jeffrey Doltis, managing director, Savile Row, said his company's vision for the country's market was that "India will one day become one of the fashion capitals of the world".

Towards this end, Savile Row was using Indian colours with local skills to create the right Indian product and make Savile Row fit in with Indian tastes and become an integral part of the India High Street. "This is our dream for the future and I hope that you will help us make it a reality," Doltis said.

Klaus N Hang, editor and publisher, Sportswear International, told domestic retailers to set their own identity and offer something unique in the world. Illustrating his views with examples of Shanghai Tang and Polo Ralph Lauren, he said both these brands became successful as they had strong roots in their culture and had a global appeal.

"Shanghai Tang used the imperial connection of 1920s and 1930s to expand. Polo Ralph Lauren recognised the emotional longing of Americans and translated this into lifestyle apparels," he said.

Hang said the country's retail industry should put forward its best practices. He said ayurvedic practices could lead to spa activewear and lifestyle products with brand marketing.

"You could leverage on the strengths in organic food, clothing and so on. What you should concentrate on is authentic differentiation of your products," Hang said.

"Do it with your own brands that you offer to the world. Retailing must discover something new, something unique. Go back to your roots, your Indian identity and retain the identity of your Indian store," he added.