C
M
Y
CM
MY
CY
CMY
K
FASHION LEADERSHIP WITH STYLE
Contents
08
10
20 Years: Looking back
12
‘Customer-centic retail must!’
Business Model Canvas
This is what Ramanathan Hariharan,
pathbreaking strategies, workshops
Group Director and India Chairman,
and meets that set the foundation
emphasises on, the FFA approach
and put it on the road to success.
launched to ensure profitable growth
A graphic representation and
of Lifestyle was, at the roots, led by
overview of the FFA approach.
Felicitations from Renuka Jagtiani and Group CEO for all the good work
A graphic look at the scenario. 22
FFA and the Offline Approach
this very policy.
Appreciation from the Chairperson
11
20
A visual look at some of the
24
FFA 1: Securing the Top 20 Stores
Gensis: Five Focus Area (FFA)
The immediate imperative of
and team spirit that makes Lifestyle
Vasanth Kumar, outgoing MD /
FFA 1 was to secure the top 20
India so special.
CEO Lifestyle, had done a deep-sink
stores that delivered one-half of
analysis of the company and the
the top line and two-thirds of
Felicitations from Kabir Lumba
market before he arrived at the Five
the bottom-line. This initiative
The Group Director congratulates the
Focus Area (FFA) approach. It aimed
was specifically geared to achieve
team and sets the tone for the future.
to take up the bottomline.
this goal.
14
LIFESTYLE
3
30
FFA 2: Delivering Store-Brand
42
FFA 4: Concern Stores and New
56
FFA and the Online Approach
Profitability
Stores Turnaround
A graphic representation and
The mapping of individual store brand
In a brand that was doing well overall,
overview.
profitability and evolving systems to
why were some stores lagging behind
better their performance was the aim
— this was what FFA 4 sought to
of FFA 2.
examine and rectify.
58
Pivoting the FFA Online Approach Even as the Five Focus Area (FFA) approach was functioning well,
36
4
LIFESTYLE
FFA 3: Fresh Fashion
FFA 5: Strengthening LS Brand
the online platform was emerging
Availability & Service
Equity and Loyalty
as a concern area. So, an online
A loyal customer visits a Lifestyle
Once all else was on track, the matter
interpretation of FFA was put in place.
store 6-7 times a year but stock
of strengthening brand equity and
turnover was happening 3 times at
loyalty became critical to ensure
best... FFA 3 sought to tackle the
consolidating the gains of the FFA
Approach at a glance
resultant customer fatigue.
system. This was the focus of FFA 5.
With the application of the
48
66
Overall Outcome of the FFA
FFA approach, the NPS score
too underwent radical change that
of Lifestyle India shot up from
was to impact the years to come...
24% to 46% between the last
A look ahead.
quarter of 2018 and August 2019. By Feb-Mar’20 the NPS score
76
Way Ahead - the Four-pillar
shot up higher. Check the umbrella
Approach
view of the figures.
Rishi Vasudev CEO, Lifestyle, who took over the reins from
70
Business Beyond the Pandemic
Vasanth Kumar, interpreted the FFA
The pandemic and lockdown brought
approach in the light of the pandemic
business to a grinding halt. When
and arrived at a four-pronged
work resumed, there was a change in
approach to ensure that Lifestyle
customer expectations and mind-set.
is able to reach its potential and
In response, the business dynamics
soar even higher.
LIFESTYLE
5
Foreword
As the leading department store brand,
of fashion and lifestyle with aggressive
approach’. The leadership team worked
Lifestyle stood out as a singular concept
promotions. In such a situation, the need
out five pillars of action areas which were
when it was launched in India 20 years ago.
of the hour was for a refreshed strategy
to transform practices across functions
It caught the imagination of consumers
by adopting ‘blue-sky thinking’ that would
- including the offline and online entities.
and walked a high path of success almost
safeguard the long-term interests of the
This was successfully rolled out across the
immediately throughout the country –
brand, and insulate it from the effects of
organisation setting a strong foundation
starting with the metros.
discounting practices that were dragging
for the brand to stay ahead in the years
down profitability. This would ensure robust
to come. Rishi Vasudev, who took over
all-round performance.
from Vasanth Kumar held up the legacy of
But by 2014, rapid changes were happening in the market. Competition was abuzz
thinking out-of-the-box to take forward the
in the Indian market with the entry of
The CEO and Managing Director, Vasanth
international players that began vying with
Kumar, at that time, aided by the insights
brand business.
domestic players for a slice of the fashion
provided by the customers as well as the
Read on to know more of the FFA approach,
pie. Awareness of global fashion too was on
core senior management team at Lifestyle,
the modalities and how it helped turn
the rise. Most significantly, online business
came up with a turnaround game plan
around the brand and set Lifestyle on a
was taking giant steps into the space
termed as the ‘Five Focus Area (FFA)
sound footing for the future.
LIFESTYLE
7
Eventful journey It’s the people who make a company and Lifestyle India has been fortunate to have great leadership and a sterling team. As the company moves forward, a look at pathbreaking strategies that set the foundation for taking the company ahead.
8
LIFESTYLE
Top row from left: 1. Mr Ram at Retail Strategy Meet 2020 2. Launch of CREATE at Strategym 19 workshop 3. LS Senior leadership along with the founder of Thyrocare Bottom row from left: 1. Vasanth addressing Strategym 19 meet 2. Strategym 2019 3. Tidings 19 group excercise by senior leadership 4. Tidings 2019 5. Outbound Excercise at Strategym 2018
Renuka Jagtiani, Chairperson and Group CEO Congratuations to all of you at Lifestyle! We have completed 20 years and what a journey it has been. From 1 store to 77 stores. Wherever you are – on the floor, in the office, the warehouse, in buying – each of you make a difference. We have won many awards – something we should all be proud of. Our biggest challenge is to continue to stay relevant for the next 20 years, to be where the customer is, whether it is online or offline; whether it is fashion or footwear or children… Work to push the bar, to serve the customer, to be part of their journey, to evolve with them, even as they evolve with us.
10
LIFESTYLE
Kabir Lumba, Group Director Congratulations on an incredible journey! Lifestyle powered the growth for Landmark India by laying a strong foundation. I have been privileged to have been part of this team and am proud of all that we have achieved. The next 20 years are going to be even more interesting and I am sure you will rise to the occasion and meet the needs of a fast changing consumer. We will become more agile, discerning, and even more hard working! Thank you for your commitment and efforts. I am looking forward to the next 20 years where I am sure you will make the brand more relevant and take it to greater heights.
LIFESTYLE
11
Landmark Group Director Ramanathan Hariharan, has always supported customer-centric initiatives. The FFA approach launched to ensure profitable growth of Lifestyle was, at the roots, led by this very policy...
12
LIFESTYLE
‘ Retail must bE Customer-centric’
Mr Ramanathan Hariharan,
India, he emphasises that the industry
execute aided Lifestyle and Home Centre
Group Director and Board Member of
needs to be more customer-centric. He is
adapt to the changing market dynamics
Landmark Group, had once said in an
always supportive of strategy and business
while consolidating the brand’s position in
interview: “I think my key professional
plans that seek to expand the business via
the respective market segments.
accomplishments (include) building a
making customer experience as pain-free
focused team with a vision to outperform
as possible.
in the market place.”
With an eye to carrying the Lifestyle business forward on its trajectory of
The Five Focus Area approach, spearheaded
growth through the pandemic and beyond,
Ram, as he is popularly known, has always
by the former CEO Vasanth Kumar, has
under new leadership, Ram reiterated the
enjoyed working in retail as he strongly feels
at its base, the aim of facilitating the
company motto: “As we transition into the
it is a truly dynamic industry, constantly
customer’s journey with Lifestyle - and falls
new leadership, let us continue to support
changing, and therefore providing a
under this large umbrella vision that Ram
the vision of the organisation, live our values
perfect platform to apply strategic and
speaks of. Ram further points out that the
in everything we do, and stay committed to
operational capabilities. For retailing in
strategies that Vasanth helped evolve and
achieve greater success.”
LIFESTYLE
13
P LAN BUSINESS THE
GENESIS: FIVE FOCUS AREA (FFA)
L i f est y le
15
Vasanth Kumar, former CEO Lifestyle, had done a deep-sink analysis of the company and the market before he arrived at the Five Focus Area (FFA) approach. On the one hand was the pressing need to weed out processes and systems that no longer served the company and on the other, there was the imperative to take up the bottomline...
16
L i f est y le
“Lifestyle is a youthful brand which offers fashionable products with a seamless shopping experience and remarkable service” — the mission statement of the brand was the mantra that set it soaring on its journey of success in India…
The time had come for Lifestyle to redefine the dynamics of business, infuse fresh ideas into it and take business to a new high. The plan had to be formulated at the top but involve employees down the line. The directions and initiatives needed to percolate through the organization. So it was that the second half of 2018 saw a flurry of workshops and planning meets which involved not just the top management but second and third level employees as well. A special ‘Outbound Workshop’ was organised for the senior leadership team to encourage introspection and help in rebooting the system. Breakaway sessions helped identify focus areas. The brain-storming was followed by customer in-sighting across five cities to Come 2018, Lifestyle was still leading
competition between online market players
ascertain whether the company was in-sync
the competition but the fashion space
aided by aggressive discounting; value
with customer mindsets. By December
in the country was in a worrying churn.
fashion players becoming dominant; and
2018, the ground was laid for crafting the
International players were entering the
a ‘mall explosion’ in top cities leading to
Five Focus Area approach to take business
market with their deep pockets and quick
abundant choices, coupled with attractive
to the next level of sustainable profitability.
fashion turnovers, luring the consumer.
prices. Department stores and premium
The online revolution too was gaining
brands had to protect their market share
Challenges were rapidly converted to
momentum. Key issues with largely offline
through high decibel promotions and a
opportunities. Buying and design, planning,
retail entities were the following: intense
prolonged EOSS period.
sourcing, and merchandizing architecture
L i f est y le
17
By December 2018, the stage was set for crafting the FFA approach to take business to the next level of profitability
THE PLAN DIPPED INTO 20 YEARS OF LEARNINGS
THE BEAUTY OF THE PLAN LAY IN ITS SIMPLICITY
The FFA was divided into 3 buckets: Customer Experiences, Customer Loyalty and Operational Efficiency
18
L i f est y le
and IT deployment were all aligned to achieve common goals. To avoid dilutions and contradictions that may arise, each function was divided into ‘Customer Facing’ and ‘Support Function’. The Top 20 stores went through a 360º overhaul from store upgradation and theme-based promos with a 42-week calendar supported by brand partners to focus on the CX. The EOS sales were to focus on conversion and customer experience. Geo-fencing, VM alignment, in-store zoning, brand realization and many front-end functions too were streamlined. Support functions, including IT initiatives, automation of VM, planning and analytics, team KRA alignment and social media — were all synced to
Value Propositions: Customer Experience,
Delivery of store-brand profitability
complete the 360º focus.
Operational Efficiency and Customer
Turnaround of new/concern stores
Loyalty. In a nutshell, therefore, the FFA
Strengthening brand equity and loyalty
The FFA approach aimed at strengthening
comprised products and services to
the journey of Lifestyle in the path towards
increase gains (Gain Creators) and reduce
The following chapters will unfold how
sustainable profitable growth. The brand
pain (Pain Relievers).
the FFA approach took the brand on
was to deliver its main value proposition
a journey with outcomes boosting
and strengthen its market leadership
The FFA pillars were the following:
profitability and concretizing systems
position through the approach. The FFA
Securing of profitability of the top 20
that were poised to be carried forward
was divided into three buckets or Customer
Freshness Fashion Availability and Service
beyond the pandemic.
L i f est y le
19
Business Model Canvas
Key Partner
Theme: Lifestyle is positioned as a youthful, stylish and a vibrant brand that adds style to every aspect of one’s life
Dated: Feb. 2019 Version: 1
Key Activities
Cost Structure Property Lease Rentals, Store Capex,
20
Designed for:
Key Resources Lifestyle Assets
Revenue Streams TO, EBIDTA, PBT, FCF, ROCE, IRR,
Store Opex, IT Hardware, Software,
ABS, Conv, ABV, NPS, CLV
People cost: Corporate/Region/Store
Employee Engagement
Marketing Investments
Company Credit Rating
L i f est y le
Value Proposition
Customer Relationships
Customer Segments
Channels
L i f est y le
21
The Five Focus Area (ffa) The FFA approach was evolved after several rounds of discussions with team members across employee levels; detailed market insights and analyses; and deliberations gaining learnings over past performances and triggers.
22
Lifestyle
.01
.02
SECURING THE TOP 20 STORES
DELIVERING STORE-BRAND PROFITABILITY
.03
.04
.05
Fresh fashion and availability
Concern Stores and New Stores Turnaround
Strengthening Brand Equity and customer Loyalty
Lifestyle
23
AREA FOCUS 24
Lifestyle
.01
SECURING THE TOP 20 STORES
Lifestyle
25
The FFA approach evolved after several rounds of meetings and analyses aimed at increasing overall profitability. The immediate imperative of FFA 1 was to secure the top 20 stores that delivered one-half of the top line and two-thirds of the bottom-line. These stores were the torchbearers of the brand with consumers as well as with brand partners and developers.
CASE FOR CHANGE
stepping in roughly 6 times a year, was likely to see the same displays over several visits. This pushed up the fatigue factor
1.1 Static look and feel in-store
and discouraged repeat-visits. The problem
The look and feel of Lifestye stores across
was compounded with competing online
the country – including store windows and
fashion entities refreshing their virtual
in-store display clusters – even in the top
displays frequently. The other issue around
20 stores were being changed only about
freshness was that the brand’s uniformity
3 times a year. So a typical loyal customer
code did not leave room for regional
102% was the target
achieved in EW during the 2019 festive perod with 13% LFL growth
nuances and festivals to be captured in the displays which was a sellng-point for several brands. The fatigue factor extended to shelves as well as with goods being stocked across 3-4 months. This often cost the store heavily as the customer would wait for EOSS to get at the goods on display for the previous 2-4 months at a discounted price. 1.2 Availability issue with merchandize Often even the products promoted were not available in several stores across the country. The NPS data generated indicated that availability of stocks was a big issue across designs; as also in the varieties in categories. Sizes were another stumbling block. This pain-point was particularly felt in the Top 20 since the footfalls here were higher. Ready availability would automatically push up sales. This was a high-criticality area. 1.2 The missing ‘something more’ To enable the Top 20 to maintain their position and cut the clutter among
Lifestyle
27
competition, there needed to be that extra something on offer. While the stores were contributing the mega chunk of business, there was scope to enhance business by engaging more with the bigger footfall.
PLAN AND IMPLEMENTATION Store experience upgrade: Display windows, which were the face of the store, were enhanced and changed every week. Instead of showcasing only global trends, regional trends were included and popularised. Festive clothing for Pujo in the east, Onam in the south or Navratri in the west were introduced. The festive and regional push was amplified by bringing in bloggers to talk about the time-bound collections on their platforms. Local celebrities too were invited for in-store
larger-than-life representations of the latest
Online & offline connect: The top 20
promotions.
collections and fashion interpretations.
stores were the first to establish a seamless
Inside the stores, ‘heightened trend zones’
Technology upgrade: Technology was
experiences for the consumer. Design
were created – these were mannequin
upgraded to incorporate LED screens with
elements and merchandize display patterns
clusters in high-impact areas that created
content playing round-the-clock and
online were reflected on-ground to create a
interesting islands for the customers to see
in-section displays of stores were refreshed.
holistic brand appeal.
connection between the online and offline
28
Lifestyle
FFA 1 and Womenswear The extensive in-store exercise to reduce non-profitable areas netted tangible results. Here are some notable points: a) Womenswear in private labels and external brands, saw significant leaps. This was largely attributed to the expansion of Fab Alley, J 21 and Cover Story; rationalising of the area allocated for Ginger and the Denim zone; and increased focus on the Dress category. b) During the 45-day festive period, the APL team ensured least cut sizes of fast movers, and helped deliver Rs 100 Cr in October 2019 – this translated to 102% budget achievement with 13% LFL growth. c) The ‘monthly drops’ of fast fashion under Ginger Runway helped establish a connect with younger customers with the right trend and freshness. d) EW brands business improved from 2.5% PBT to 6.8% within 7 months with the introduction of the right product mixes and brands.
to remove bottlenecks and ensure that merchandize availability was maintained in the Top 20. (Read more about these tools in later chapters.) This aim was further met by the consolidation of top-seller brands, which were allocated more space. Low-selling brands were discontinued. This enabled the conversion of more customers in quality areas, directly affecting PBT. Novelty fashion freshness: ‘Flash representations’ that included limited editions and runway collections were introduced to bring in exclusive design lines at the Top 20. The ‘Star Wars’ collection was one such trial effort that performed well. External brands too were encouraged to introduce limited editions to increase overall profitability – as Levi’s did with the ‘Stranger Things’ exclusive collection. This approach also enhanced freshness.
Stock-turnover enhanced: The all-
Merchandize availability: It was ensured
important issue of stock-turnover
that both private label and external brand
Campaign events such as ‘Dress for an
was addressed on a war-footing. No
items reached the top 20 stores within 24
Occasion’ were hosted in February 2019;
merchandize more than 60-days was
hours of arrival at distribution centres. An
March of the same year saw an event
allowed to sit on shelves. The back-end
enormous level of planning and systems
called ‘Colours’ where the entire store
was built up to ensure there were no
optimisation, including incorporating the
was coordinated to a colour theme. These
bottlenecks to new stock availability.
latest software, was initiated at all levels
processes resonated well with customers.
Lifestyle
29
AREA FOCUS 30
Lifestyle
.02
2
DELIVERING STORE-BRAND PROFITABILITY
Lifestyle
31
22% of the total
store area was reflecting
48% of the losses
32
Lifestyle
This implies the under performance of individual brands within specific stores. The exercise to map individual brand profitability within a store and evolve systems to better their performance – even in profitable stores - thereby increasing store profit margins, was what the FFA focused on.
CASE FOR CHANGE
profitability in particular categories across a concept that was doing well in the store.
1.1 Low-performing brands in stores
This was another specific issue identified.
Upon analysis of the figures in the last
For instance, the menswear concept may
quarter of 2018, it was discovered that as
be performing well in the store but a few
much as one-third of the area in profitable
brands may be under-performing in the
stores was making losses. For instance, a
category, bringing down the category
100,000 sq. ft./45,000 sq. ft. store with an
profitability from achieving potential.
overall high profitability may only be making profit on an area of 65,000-67,000 sq.ft
1.3 Underrepresentation of brands
/30-32,000 sq. ft while incurring losses
In certain stores, within a successful
on the remaining 33,000/15,000 sq. ft.
concept, there was a lack of variety and
due to low-performing brands. Basically, in
choice, which led to the need for bringing in
such stores, large areas allocated to non-
fresh brands.
performing brands were decreasing their overall store-brand profitability.
1.4 Brand visibility Another area that came up was that
In fact the figures revealed a startling fact:
sometimes there was a new and sought-
22% of the total store area was reflecting
after brand coming in with low visibility.
48% of the losses. This was a clear call to
This had to be offset by a high-visibility
relook the spaces allotted to brands. The
brand to keep the balance of store-brand
fact that they were profitable stores overall,
profitability.
meant that the real estate or overheads were not the cause of loss.
1.5 Store & customer profile mismatch The catchment profile or customer profile
1.2 Low-performing categories
needed to be matched to the merchandize
Certain external brands were seen as
stocked. This was not happening. This
low-performing due to the lack of sales/
when, often, there is a difference between
Lifestyle
33
customer profiles even in localities within a city – for instance, in Bangalore, the profile of the customer visiting a Koramangala store may be different from that in Yelahanka. These nuances had to be reflected in the brands and categories.
PLAN AND IMPLEMENTATION Some brands were taken off shelves: Monthly reports for each store under headers of brands and concepts were generated. Loss making brands were tallied against the space allocated to them and a plan initiated either to remove or replace them from across the retail chain – for example, Chromozome and VH in the men’s innerwear category were removed in order to replace them with performing brands. Performing brands given more space: Profitable brands in stores were offered more space which they were happy to avail and pay the higher premiums applicable. This improved store brand profitability significantly.
34
Lifestyle
Performing brands were given higher in-store visibility
suffering due to poor service to customers.
Benefits Realised
Trained manpower was enabled to improve the performance of such brands. The ‘category-first’ approach adopted: Earlier the focus was more on ‘brand first’.
As a result of the policies of the FFA2 approach, in a matter of months, there was a drop from a loss of 33% to 2-3% towards the 4th quarter of 2019.
Under FFA 2, it was ‘category first’. Category traction was assessed first. Basically, the category that was relatively more in demand in a particular store was taken into focus first, and brands offering more or better in the category were given priority. Emphasis on regional brands: If a brand was to be replaced within a store, the
Merchandize mix matched to customer:
retail team was asked to identify a better-
Each store had to go through the process
performing brand which may be a regional
of identifying consumer behaviour relevant
brand. The store team had to:
to the area the store was located in, the
Screen the proposed regional brand to
demographics, and only then decide the
meet the profile, market standing and price
product mix on offer.
point of Lifestyle. Check alignment of the proposed brand
Price-performance analysis applied to
with the Lifestyle customer base and their
brand & category: Price sensitivity was
shopping habits.
gauged through external research. A new
Ensure distinct style identity to set it
sequence was followed in stores: first there
apart from Lifestyle brands.
was category assessment, followed by application of the price sensitivity findings,
Manpower for servicing brands: In certain
and only then were the brands to be
cases, it was found that the brand was
featured in the store decided.
Lifestyle
35
AREA FOCUS 36
Lifestyle
.03
3
Fresh Fashion and Availability
Lifestyle
37
38
Lifestyle
A loyal customer visits a Lifestyle store 6-7 times a year but stock turnover was happening 3 times at best. The customer ended up seeing the same merchandize multiple times, triggering fatigue. Along with this, the related matter of availability of desired stock or sizes was another issue. These related issues were to be addressed through FFA 3.
The core promise at Lifestyle is not
every 3 months, the sell-through happened
only to provide great services, but also to
only in 5 months. This was primarily
offer customers freshness, variety and
because of the fatigue factor of the same
availability of what they are looking for. In
goods being on shelves for long, and the
short, Lifestyle is about fashion needs and
customer not being engaged with fresh
indulgence. Freshness is key to fulfil this
fashion. A worrying natural fall-out was
need. Customers do not always walk into
that the business became highly dependent
the store seeking discounts.
on EOSS.
CASE FOR CHANGE
On the other hand, at this time, fast-fashion brands such as Zara and H&M were delivering between 6-10 stock-turns a year,
1.1 Turnover of fresh fashion
attracting most customers. Being on trend
While stock replenishments happened
is afterall the core of business of fashion.
Lifestyle
39
1.2 Category freshness The lack of availability of product variety
PLAN AND IMPLEMENTATION
within a category too meant the loss of potential sales. Customers looking for a
Only goods on shelves for less than
product type rarely opt to purchase an
60 days were deemed ‘fresh’: The
unrelated item, despite a greater choice
plan was to keep the category approach
in the other category. For instance, if a
and seasonality in focus while sourcing,
customer is set on picking up T-shirts
purchasing, merchandising and creating
for summer, he or she is unlikely to be
the planogram. And during season, new
persuaded to pick up shorts and dresses.
options needed to be provided for every category drop.
1.3 Size availability Required sizes of merchandize
All functions were aligned: A calendar
on display may not be available at
encompassing all stores was created to
the store or warehouse – creating
align merchandising, retail, purchasing, VM
customer disgruntlement.
display, colour palettes and promotions for a 60-day periodicity.
1.4 Pressure at EOSS Since turnover of fresh fashion was slow,
Fresh fashion every week: Store windows
most customers would wait for EOSS to
and display clusters were refreshed weekly
get at the merchandize at a lower cost.
and communicated through marketing
Typically, a regular customer understood
channels. Fortnightly planograms ensured
that the products they had earmarked
the process was followed. Periodical
would be available a couple of months later
liquidation of slow-sellers on an ongoing
and at a cheaper price so they avoided
basis too was introduced.
purchasing pre EOSS. This in turn, put high
40
pressure on EOSS to achieve a high sell-
Size availability ensured: This was
through - and at lowered costs.
achieved by shifting products from low-
Lifestyle
footfall to high-footfall stores to ensure
Software to facilitate the process: This
unbroken size sets. This particular function
included Kanvas, a visual analytics software,
was earlier controlled from Bangalore but
that helped the planning, buying and front-
under the FFA approach, four regional
end retail teams to collate, analyse and
controllers were set up, allowing for more
collaborate effortlessly; and a platform tool,
flexibility and faster decision-making.
BOARD, to build the basis data of planning and merchandising functions.
Early season launch: The season launch was advanced by a month to improve the pre
Changes in the team structure: Earlier the
EOSS sell-through and to reduce the sell-
Planning and Merchandising teams were
through burden during EOSS.
clubbed and operated centrally. To ensure agility in decision-making on store floors,
Category-first approach: To address the
Merchandising was attached with regional
problem of lack of freshness and variety in
teams. The teams were to focus on allocation
categories, the stocking of merchandize
of merchandize as per store matrix, periodical
was decided first by category demands. The
consolidation of merchandize and so on.
brands to be featured in stores were decided
The Planning department was to focus on
by their stock of the categories in demand in
upcoming seasons with supportive analysis
the particular store.
for decision-making, increasing private label share and so on.
‘Category-first’ and external brands: All
The category-first approach serviced customers optimally
stakeholders too were brought under the
System to ensure higher sell-through pre-
purview of the store/category/brand review
EOSS: The target was to achieve 60-65% pre
to ensure that customers seeking fresh
EOSS sell-through. Weekly analysis grouped
fashion and variety in category were not
options under ‘good’, ‘average’ and ‘poor’
disappointed. Way-ahead strategies for non-
– basis the sell-through achievement. The
performing brands in this matrix were altered
‘average’ and ‘poor’ options were put out on
where required.
periodical discount in season prior to EOSS.
Lifestyle
41
AREA FOCUS 42
Lifestyle
.04
4
Concern Stores and New Stores Turnaround
Lifestyle
43
As the plans for rebooting Lifestyle in India were being formulated, it was inevitable that the matter of a section of stores not doing well come up. Why this was so in a brand that was doing well overall — was what FFA 4 sought to examine and rectify with new systems in place.
44
Lifestyle
CASE FOR CHANGE
regardless of store space or productivity. In smaller stores, this pushed up spends,
1.1 Number of ‘tail stores’ at a high
pulling down profitability.
In the early years of Lifestyle in India, store-profitability was at an all-time high
1.4 Outlay in real estate
and 90% of the stores were classified as
Some of the concern-stores revealed
‘high-performing’. However, as it expanded
an imbalance in the space to potential
into suburbs and tier 2 cities, productivity in
profit ratio. Some stores with relatively
some of the stores started stagnating and
low footfall, for instance, were found to be
profitability dropped significantly. Towards
occupying large spaces, adding to their
the end of 2018, more than 23 stores out
spends in real estate, affecting overall
of 80, were making marginal profits or
profits. This was a glaring issue that was
accruing losses.
crying for attention.
1.2 Merchandize stocking strategy The strategy of using a uniform policy or yardstick to decide merchandize stocking
16 out of 23
stores doing poorly were turned around in less than a year with the FFA approach
PLAN AND IMPLEMENTATION
at all stores across a large region or even nationwide, without taking into account
Non-performing stores were shut down:
consumer behaviour at a micro level, was
Factors which may have added to the
no longer working and was a key factor in
non-profitability of a store and which were
pulling down productivity in certain stores.
possible to rectify with changed policy, were
In some other stores even loss-making
examined thoroughly. Once that exercise
brands were allowed to continue due to lack
was done, it was decided that stores where
of alternatives.
projected recovery was not possible, were to be shut down. So, for the first time in the
1.3 Manpower allocation in-store
history of the company six stores were to
Resource was allocated brand-wise,
be closed down.
Lifestyle
45
Performing brands were given higher store visibility
46
Lifestyle
Benefits Realised The FFA 4 approach helped turn around the situation significantly. With the encouraging results in the bottom line, the system was applied to six additional stores to better profitability. By the 3rd quarter of the plan implementation, numbers began to improve. In less than a year, out of the 20-23 stores in focus, 16 were turned around. The FFA 4 approach is now being extended to the ‘bottom’ brands or those performing poorly in the B stores as well, thereby further improving store profitability. The ‘floor staff manning mode’, that reduced staff on floors was also deemed an appropriate way forward post the pandemic due to restrictions imposed by the municipality in several areas.
Change of strategy: The presence
of manpower too was undertaken. The
of regional brands in concern-stores
process was initiated in five stores as a test
were systematically strengthened to
activity. Manpower optimisation included
engage better with the consumer. The
several new approaches like the “floor staff”
one-size-fits-all approach trickling down
manning model for ‘C’ stores. For instance,
from the city centres was sought to be
if the menswear section was adjacent to
changed. Categories with appropriate
the footwear section, the personnel were
price points with higher traction were
trained for both areas. Since in the concern-
expanded – categories with no traction
stores, footfall was anyway relatively low,
were discontinued. More value price points
the system was effective. So typically, in
were introduced. Popular online brands
such a store where 15 employees were
such as Fab Alley, Indya and WRNOG were
manning a single area earlier, with this
introduced. Loss-making brands in stores
system, 10-11 employees sufficed to
were weeded out.
manage both areas. The net result was a direct cut of manpower and more money
Brand mixes allocation redefined: So
saved to bridge the bottom line.
far, the brand mixes per store was decided according to regions. But what works at a
Downsizing of real estate: Store area with
store in Koramanagala may not work in a
relatively low footfall was surrendered to
Yelahanka store – though it fell in the same
the developers. For example, in a 35,000 sq.
region. So, basis relevant analysis and focus
ft. store, as much as 7,000 sq. ft. area was
on regional stores, mixes were decided as
given up in consultation with the developer,
per local customer profiling.
and rentals re-negotiated. Developers with a keen eye on future business agreed to
Manpower optimisation: Instead of
the proposal and lowered rents, helping
deciding the number of staff per brand,
to cut brand spends. Several developers
resources were allocated per floor and
also helped promote the stores in the local
selling-space productivity therein. Training
catchment areas through BTL activities.
Lifestyle
47
AREA FOCUS 48
Lifestyle
.05
5
Strengthening LS Brand Equity and Loyalty
Lifestyle
49
This area of focus had to come into play after the earlier aspects of planning were already underway and showing results. For instance, FFA 4 (Fresh Fashion and Availability) had to be ensured before any activation could be done to strengthen brand equity or boost loyalty. But once all else was on track, the matter of strengthening brand equity and loyalty became critical to ensure consolidating the gains of the FFA system.
50
Lifestyle
CASE FOR CHANGE
1.3 Poor in-store customer engagement There was no hands-on customer
1.1 Pain points needed to be identified:
engagement in stores – the point of
The overall Net Promoter Score (NPS)
interaction happened only at the end of the
score across stores was plummeting.
customer visit when he or she was paying
The NPS of each store is the comparative
for goods selected for purchase.
percentage of benefactors against detractors and is a clear indicator of the
1.4 Lack of fresh fashion
equity and loyalty enjoyed by a brand.
A customer walking in frequently would invariably see the same displays and stock
1.2 Loss of differentiator edge
3-4 times - this hit brand loyalty severely.
Into the 3rd quarter of 2018, it was observed that the increasing clutter in the market was taking away from the brand’s differentiator edge. For example, if a
PLAN AND IMPLEMENTATION
consumer were to shop at Lifestyle vis a vis another department store, 70-80% of the
Pushing up the Net Promoter Score:
merchandize would overlap. Lifestyle and
An analysis was undertaken to identify the
the other department store were also likely
areas which had the maximum detractors,
to be similar in general layout and size.
and aggressive customer service
There was hardly any novelty in shopping
enhancement and systematic fresh fashion
in a Lifestyle store.
communication plans were set in motion. The initiatives caused the NPS score to
1.2 Lack of regional connect
rise from 32 in September 2019 to 51 by
In a competitive environment with the
January 2020 and 53 by February.
increasing entry of global players, as well as aggressive competition from local players,
Quick movement at cash counters:
the brand needed to relook strategy.
One of the key problems was the long
Lifestyle
51
wait-times at cash counters during high
which enabled them to easily access and
way. An initiative called Vision Smiles
footfall time between 5-8 PM. To rectify the
process feedback for the day and the week
helped document and develop a culture of
situation, more personnel were assigned to
more efficiently.
such narratives. For example, a customer
cash counters during the time. A concept
in Hyderabad gave Lifestyle a rating of 2 on
called the ‘All-cashiering model’ too was
Empowering the business manager:
the NPS scale because the lipstick she had
introduced. This meant, there were to be
Earlier, the buying teams would decide what
purchased was chipped. In response to
no ‘dedicated cashiers’ anymore. All store
products to push to stores, even though the
this, the store manager procured her
personnel were to be enabled to work at the
business manager, by virtue of managing
address and sent her a replacement that
billing counter as and when required. This
operations on ground locally, would have
assured her loyalty. In Delhi, a customer
helped remove bottlenecks at the counters.
more insight into what product mixes work
wanted to replace a product but she lived
better in his store. The managers were in Uniformity of promotions: Another area
a position to improve performance of the
where the NPS score took a beating was in
store and brand/s – provided the needs
the perceived complexity of promotions.
of the local customer and market could
Often, a customer would arrive at the
be formally assessed, and merchandize
billing counter with what he or she had
allocation influenced by them. As part of the
assumed was a discounted product only to
FFA 5 approach, various initiatives were put
be informed he/she had misinterpreted the
in place to improve the empowerment of
promo. This resulted in longer queues
the business managers.
and customer disgruntlement. Promos were simplified and made uniform.
Soft skills of business managers:
This simple step helped smoothen out
Detractor issues were usually processed
things considerably.
through a call centre but from October 2019, under the FFA 5 plan, the store
52
Real-time visibility of detractions: The
business managers began calling the
brand moved to a platform called ‘One
customers themselves, understanding
Direct’ that enabled real-time feedback. All
pain-points and ensuring that grievances
store managers were provided with the app
were taken care of in a far more qualitative
Lifestyle
The Loyal Customer Brand loyalty is not built up overnight but is a critical aspect that a brand needs to focus on to ensure sustainable profitability. This was the key realisation that the FFA 5 hinged on. The policies of FFA 5 continue to bring in dividends.
too far away from the store. The store manager delivered the product to her on the same day through an employee who lived in the area. CRM LS EDGE programme: An incentivebased programme for consumers, LS EDGE, was introduced as a differentiator with far-reaching consequences. Under LS EDGE, a host of privileges was provided to consumers for just Rs. 499 a year. These benefits included a 15-20% discount during birthday-months sponsored by brands; free parking; and home-delivery of altered garments (waiting time being a sore point with customers). The programme became a runaway success: From quarter 1 to 3, enrolments to the programme shot up from 10,000 to 75,000. As a fall out, the MVC (Most Valuable Customer) turnover reduced. While the total customer enrolments reduced, the MVC segment increased. Building a regional connect: A regionbased customer service and connect
Lifestyle
53
plan was implemented. An LS instore app was also made possible to connect with customers on a regional basis. Enhanced customer engagement: This was addressed internally and externally. From an organizational standpoint, the focus was to have adequate systems and processes to monitor customer feedback and sync it to an upgraded MPS. From a consumer viewpoint, the focus was on better engagement, how to increase footfall and revive old customers and attract peripheral customers. Internally, a system that involved everyone at all levels in the Integrated Go-To Market (IGTM) approach was created. This was also to ensure process-driven discipline. Other measures that were taken under this scheme was to own categories with
Performing brands were given higher in-store visibility
specific approaches. For example, for Valentine’s Day an occasion was created called ‘Dress for a Date’ that created a focus point of engagement for customers. The Buddy app, a virtual shopping assistant, helped consumers navigate, choose and
54
Lifestyle
redeem rewards. Downloading of the app
him/her on the shopping journey to the
disseminated to the consumer base more
was incentivised with offers. The app also
point of transaction.
effectively. This also helped offset the issue
helped connect with the customer on a regional basis.
of online companies being able to change Freshness in fashion: One of the key
their displays with rapid frequency.
parameters addressed was freshness in Changing from M.G.D TO G.E.T: The
fashion not just in stock availability but
Instagram to Planogram: One of the ways
philosophy of M.G.D (Meet. Greet.
also in the look and feel of the store to
this was achieved was through the Buddy
Direct) was replaced by G.E.T (Greet.
encourage repeat visits and prevent the
app. When a customer keen to purchase
Engage. Transact). Instead of greeting the
tendency of consumers waiting for end of
an outfit as shown in instagram, opens the
customers and directing them only when
season sales where they know they would
Buddy app in the store, the Style Bot, on
requested for help, the new system had the
get the same merchandize discounted.
it, through AI, recommends the complete
floor personnel engaging with the customer
Store windows and other displays were
look put together from different brands.
to gauge his/her tastes and accompany
changed weekly and communication was
The customer can simply pick up what she wants without having to wade through a lot of merchandize she may not be interested in. Also part of the system was to enable the checking for availability of products in the store at the time of shopping. In case the product was unavailable, the app facilitated online viewing of the same at the online store where it was likely to be available. The next step was to enable seamless tech enabled Omni channel shopping through Whatsapp, Search and Social Media with collaborations on and off line – to address safety and delivery concerns of the customer in the post-Covid environment.
Lifestyle
55
The Online FFA Approach Covered The Following Aspects
56
Lifestyle
SECURE LMR Customer Base First
Drive Profitability of Top Categories
The first priority was to secure the
Overall profitability was not the sole
LMR base, strenghten it and woo it to
benchmark. Focus was to ensure all
get on to the online platform as well.
categories were profitable.
Marketplace Turnaround
Fresh Fashion 24x7 Online
Build Loyalty Through the App
Scoring against competition no longer
The online fashion presentation was
The app-users were the core loyalists
sufficed. Lifestyle was to bring about a
to keep pace with the offline, and also
so strategy was to be evolved and
change in the marketplace.
ensure availability of fresh fashion.
followed to enhance this base.
Lifestyle
57
P LAN BUSINESS THE
PIVOTING the FFA APPROACH ONLINE
L i f est y le
59
60
L i f est y le
Even as the Five Focus Area (FFA) approach was securing dividends on the offline brickand-mortar entity, the online platform was emerging as a concern area. Marketplace players were serious competition. But at the same time, there were opportunities that could be leveraged. Therefore, pivoting the FFA approach online – with required drivers to align the model to online business dynamics – was the need of the hour.
The Five Focus Areas initiative to impact the online platform were identified as the following: Secure LMR Customer Base First Drive Profitability of Top Categories Marketplace Turnaround Fresh Fashion 24x7 Online Bring Loyalty Through the App
LMR First Approach This approach was aimed at securing the customers in the LMR base which contributes to over 70% of the online business. Offline consumers were sought to be brought online through tele-calling by store staff. Several benefits were added to woo the top customers to shop online. These included special banner offers, segmented offers at POS, a chance to avail size variety via the Buddy app and extension of EDGE benefits online to LMR customers. Also, the dormant LMR base was targeted through SMS. The Home Centre online customer base too was targeted under the initiatives for online-users. There was a concerted effort to retain customers, woo them
L i f est y le
61
to make Lifestyle online a habit, and build advocacy. The Omni-channel customer was encouraged to tap online through promotional activities via SMS, Whatsapp and email. Another focus area of this initiative for the online platform was to reactivate the online potential ‘winback base’. Patterns of browsing or shopping online were tracked to engage with the ‘winback’ consumer on his/her favourite platform.
Drive Profitability of Top Categories In 2018-19, Lifestyle was ahead of its main competition in the top 7 categories of online sales - LS.com figures were Rs. 12.7Cr whereas Myntra figures were at Rs. 9Cr. In the next 10 categories too, LS.com was at Rs. 5.7Cr and Myntra at Rs. 4.2Cr. But it was clear that Lifestyle profitability could be significantly improved by focussing energies on the top 7 categories and deep-diving into category profitability at GMC levels.
62
L i f est y le
Fresh impetus and systems were
measures, including influencer marketing
Availability of top-sellers of NSM
introduced, including daily stand-up
and other promotional activities.
(new season merchandize) was
reviews with the core-team. Systems were overhauled to ensure regular review reports (daily, weekly and monthly) were generated to allow for thorough analysis which would
another area of focus with fortnightly
Marketplace Turnaround
replenishments. Marketing spends were aligned and increased to generate the right profile in traffic.
lead to sharpening of micro activities to push the top categories through a host of
Simplify e-com Online platforms must appear an attractive proposition and provide ease of operation. This is particularly relevant for the conversion of conservative shoppers — a large percentage of who have been found to change brand loyalty for ease of operating the app or ecom site.
Scoring against competition no longer
As with the offline business, online too,
sufficed. Lifestyle’s foray into the
reviews were of paramount importance
marketplace was to gain penetration and
with analysis of monthly reports of figures
profitable growth. It was seen that Myntra
from competition, and alignment of sales
was marginally profitable while Flipkart
targets and profitability targets with those
was delivering negative PBT mainly on
of competition online.
account of mismatch in the offerings vs the demand. Overall, the marketplace potential to be tapped.
Fresh Fashion 24X7 ONLINE
A host of steps were planned and put
This was a significant initiative offline - both
into action with projections for 2021 as
in the area of display and merchandize in
well. These included creating a co-owned
stock at Lifestyle stores. Online, the criticality
business plan for FY21, focusing on fresh
of ‘fresh fashion’ was especially significant
and full price sales, and weekly review of
as online-only players, with no outlay on
plans and incorporating learnings regularly.
maintaining physical stores, were able to
Ensuring the right merchandize mix for
pour in more resources to pump up their
online viewers was seen as high criticality
presence. Also, with only digital promotions
– keeping in mind seasonality, concepts,
required, they were in a position to update
brands, categories and sub-categories.
their merchandize with rapid frequency.
under-delivered for Lifestyle leaving much
L i f est y le
63
Under this approach, the first step actioned
presentations online were sought to be re-
was to formulate season-launch and promo
created and interpreted such that an online
calendars in tandem with the offline. Online
savvy customer stepping into a Lifestyle
was to go live with fresh merchandize
store would not experience a disconnect
along with the stores: 96% private label
between his/her experience of the brand
merchandize to go live on day 1; followed by
between the platforms.
85% external brands by day 3. The other impactful step was that of the On the website, fresh campaigns were to
Business Intelligence dashboard being put
be put up twice weekly (barring the months
in place to ensure real-time monitoring.
when End Of Season Sales were on). Banners and tiles were to be refreshed twice weekly. put in place for customers who bought NSM.
BUILD LOYALTY THROUGH THE APP
Other measures under this focus area
Analysis and research undertaken amongst
included: Replenishment of top-sellers
online consumers prior to the launch of the
through reviews every 15 days; SVI (single
FFA approach underlined the stickiness
view of inventory) implementation through
of users of brand apps. The app-user
A+ stores, which were intended to increase
makes a conscious choice to download the
availability of NSM - SVI live on all 28 top
particular brand app. It was therefore vital
stores - 100% order fulfilment; removal
that more consumers be wooed to use the
of old season merchandize within 10 days
app; the brand also needed to ensure the
from launch of new season products.
continued loyalty of the consumer who was
Systematic communication protocols were
already on the app. Another move was to ensure a seamless
64
merging of offline and online flow of
The strategy was devised to make the app
fashion. Elements, designs, merchandize
offer better solutions. The steps included:
L i f est y le
www.no bags jus
promotion of the 42‑week Omni calendar;
ags justcarts.com
specific category promotions twice a month and weekend sale campaigns every month; and a couple of marquee events in the year. In order to increase downloads and enhance repeat-customer conversions, push services, emails and SMS notifications too were part of the plan.
Online & the ‘new-normal’ Retail therapy, by definition, was driven by brick-andmortar entities - well appointed showrooms. These provided the much sought-after real look and feel of merchandize. Plus, spacious showrooms satisfied the need for the ‘shopping experience’. Much as eating at a restaurant was always more than just about the food, visiting a showroom was much more than about buying the products. However, the pandemic put brakes to this, and posed a new challenge to online shopping platforms — such platforms had to redefine their strategy to fulfil what was traditionally being provided by offline platforms. This is where the well-structured and thought-through Five Focus Area online approach scores and is all set to be interpreted as required through the forseeable future of Lifestyle in the country.
Other steps included campaigns to enable prospecting, re-targeting and re-marketing to generate new and repeat-customers. Part of the daily measures were to generate sessions from SEO, direct, social, push and referral platforms. INITIAL RESULTS: The FFA online approach which got rolled out for the year 2020-21, had already started yielding results during May and June 2020 across most metrics. In the post pandemic scenario, the stage was set for a ‘new normal’ where online shopping was poised to take a big leap. In this situation, pivoting the FFA approach online was indeed the right step taken at the right time.
L i f est y le
65
P LAN BUSINESS THE
Outcome of the FFA approach: At a glance
L i f est y le
67
With the application of the FFA approach, the NPS score of Lifestyle India shot up from 24% to 46% between the last quarter of 2018 (when the FFA approach was discussed) and August 2019. By Feb-Mar’20 the NPS score shot up higher.
FFA 1 OUTCOME - FOR TOP 20 STORES Scenario in 2018-2019
Scenario In Oct’19 To Feb’20 LFL
NOT growth
(-3.9%)
NOT growth
% PBT growth
(-1.4%)
% PBT growth
+4.6% +1.2%
Walk-in growth
(-3.5%)
Walk-in growth
+5.8%
FFA 2 OUTCOME - Brand Profitability Scenario in 2018-2019 23% Topline T.O contributing to (-50%) Bottom line PBT Loss
68
L i f est y le
YTD Feb’20 PBT loss contribution brought down by half to 26%
FFA 3 OUTCOME - Sell Through Scenario in AW18
Scenario In AW19
Pre-EOSS Sell Through
Brand:
41.4%
Brand:
40.5%
Private Label: 57.4%
Private Label:
51.9%
Delivery Improved to 93.9%
Hit-wise delivery: 85.6%
FFA 4 OUTCOME - Concern Stores Scenario in 2018-2019
Oct’19 to Feb’20
6 LFL stores below break-even
5 LFL <BE
11 New/NLFL stores below break-even
4 New/NLFL <BE
Total 17 stores below break-even
Only 9 Stores below break even 8 Stores Turned Around
FFA 5 OUTCOME - Brand Equity and Loyalty Scenario in 2018-2019
Oct’19 to Feb’20
LFL Walk-in growth (-6%)
LFL Walk in +4.3%
LFL Sales growth (-2.8%)
LFL Sales +3.7%
CRM Green member Value Churn 42%
Green Member Regain by +2.5%
Market share decline by (-2%)
Market share regain by +1%
P LAN BUSINESS THE
BUSINESS BEYOND THE PANDEMIC
L i f est y le
71
72
L i f est y le
The pandemic and lockdown brought business to a grinding halt. When work resumed, there was a change in customer expectations and mind-set. In response, the business dynamics too underwent radical change that was to impact the years to come...
Safe shopping environment
the loyalty and trust they enjoyed with
all merchandize that was going out for trial -
customers by assuring them that all stops
whether it was sunglasses or watches - was
were being pulled out to ensure their safety.
to be sanitised. External brands too had to
An aspect that was acknowledged to have
adhere to hygiene requirements strictly.
forever changed, even in the initial days
Stores were made safer, and this was
post the lockdown, was the approach
communicated through different channels.
to safety in the shopping environment.
Measures taken included contactless
Hygiene and sanitisation of personnel and
payments, paperless invoices and sharing
stores respectively were top priority –
of charge slips only on SMS. Detailed safety
almost like a mission statement. Lifestyle
precautions were taken by the staff; social
On ground, post the lockdown, the buying
as a brand felt the need to underscore
distancing within the store was a must; and
trend of customers was predicted early
Changed consumer mind-set
L i f est y le
73
74
on to tilt towards functionality and basics.
There was a significant drop in offline
Another aspect that emerged out of
Soon after the lockdown was lifted, it was
business in stores but Lifestyle
the situation, was the need to focus on
noticed that casual wear was taking a front
being a strong brand was expected,
multi-channel shopping avenues keeping
seat, with formal wear being relegated to
even in the early days post-lockdown,
in mind the changes in shopping patterns -
the background. Track pants for instance,
to emerge successful once the market
triggered by health fears following
was doing better business than jeans. The
rebound happened in the near future.
the outbreak - that were here to stay.
projection was that weddings, festivals and
For the short-term however, after
Assisted shopping through video calling
the winter season would be key triggers for
careful deliberations, the cost structure
facilities, Whatsapp based shopping,
shopping so the marketing calendar was
was optimised in light of subdued
adoption of Google local inventory
aligned accordingly.
consumption patterns.
and modules for hyper local delivery and
L i f est y le
product-mix change
THE ROAD ahead
Omni-channel capabilities too were
The pandemic was understood to have
With its strong credentials and initiatives
strengthened.
reinforced basic values, values ‘with heart’ –
mentioned above, even in the months
this idea permeated into all aspects of life,
following the lifting of the lockdown, it was
including fashion. So, sustainability, ethical
estimated that the brand would consolidate
fashion, durability and utility emerged as a
business within the year, and move ahead
strong parallel driver for Lifestyle. The brand
from the short-term turbulence to execute
had already tied up with an organization
the long term strategy - albeit keeping the
In order to offset the dip in offline
called the Better Cotton Initiative (BCI)
new customer expectations in perspective.
business, contribution of private labels
which facilitates ethical sourcing of organic
or in-house Lifestyle brands - both online
cotton. Post the lockdown, the brand also
Also, it was observed that the customer
and offline - became more critical to
explored collaborations with mills for anti-
response at Stand Alone Stores (SAS)
ensure growth.
microbial finish and skin-friendly finishes.
post-pandemic was significantly better
so on were experimented with and successful options adopted.
Emphasis on in-house brands
than in mall stores due to the ‘trust’ factor. This was more marked in Tier 2 markets. This underscored the need to develop and
Stand-alone stores naturally scored over those located in more crowded malls. This was therefore to be a focus area going ahead, after the pandemic.
establish the SAS network for which there was a market study undertaken earlier in December 2019. So, along with consolidating its presence in malls with multi-brand formats, the brand hoped to strengthen the private label portfolio and push expansion in Tier 2 cities through the SAS model. These approaches would push up Top Line growth and profitability in the medium to long term. Post the pandemic was felt to be the right time to fast-forward such initiatives.
L i f est y le
75
Rishi Vasudev CEO, Lifestyle, who took over the reins from Vasanth Kumar, interpreted the FFA approach in the light of the pandemic and arrived at a fourpronged approach to ensure that Lifestyle is able to reach its potential and soar even higher
76
Lifestyle
Way ahead: The four-pillar approach The pandemic catapulted the company
The first pillar was to be Innovation. The
ways of connecting with consumers.
on to a learning track to understand the
unprecedented health crisis shook the
Consumer behaviour was changing and
emerging normal, and devise operating
world and business houses across the
new retail cost structures were emerging.
ways which would make Lifestyle and Home
globe, and created what is referred to as
Centre continue to retain past glory.
the ‘new normal’.
In such a scenario, it was critical that innovation come into sharp focus and
More Innovation: need of the hour
So the need of the hour was that
be top priority. An Innovation Cell was
employees were required to go beyond
started keeping this in view. This pushed
what they had been doing and define new
employees to look at alternate sales
ways of doing things: operating more
channels. All the employees were given
What was arrived at as a possible action
efficiently; looking at newer categories,
the opportunity to try new things with
plan was defined in four pillars.
brands, formats; and evolving fresh digital
room for failure, should there be any.
Lifestyle
77
Greater Speed: To grab emerging opportunity The second pillar was Speed. It was felt that much energy and time was being consumed in doing a few things – too many checks and balances had emerged. Post the pandemic, no company had the luxury of time. Things had to move fast, lost ground had to be acquired and the business taken forward. Also, to be able to innovate, speed was of the essence. In order to grab emerging opportunities in the market, the company needed to be on fast track.
Emphasis on Digital: Impact across functions It was felt that emphasis on digital capabilities – a part of the FFA approach - to harness Omni channel capabilities should be the third pillar of action. How the digital world was emerging and the business responses needed to adapt was a learning relevant for everyone in the company.
78
Lifestyle
Product development, for instance, would
design approach – it did not suffice to think
need to take into account the online
of large warehouses in big cities. The answer
customer as well as the traditional offline
it was felt, may lie in designing smaller
consumer; pricing too had to be arrived
warehouses across many cities.
at keeping both channels in view. Even the warehouse person was no longer largely handling shipments to the store – he was handling bulk shipments to the consumer directly. This, in turn affected the warehouse
Develop Partnerships: To do more with less The fourth pillar that was arrived at was the greater need for partnerships. The emphasis was on doing more with less. Across the world, large ecosystems were
Getting Back...
being created, retailers were collaborating
The Five Focus Area approach galvanised the company into a new mode and upped profits. The unexpected event of the pandemic threw up the need to evolve means to get back on track and put the company on the trajectory to success.
hire people to build capabilities but could
with other retailers. Lifestyle needed to gear up to find partners to leverage each other’s strength. Strong tie-ups would mean the company would no longer need to always lean on partners for the same. These four areas were seen as the immediate focus areas. However, things were fluid, and Lifestyle had to work through the post-pandemic scenario to arrive at a clearer approach keeping the learnings of the FFA in the background.
Lifestyle
79
concept, content & strategy Shveta Sahu, Manjira Dutta DESIGN & ART DIRECTION Vipin Gupta EDITORIAL Poonam Kashib, Kedar Kaushik
PRINTERS Vishwakala Printers, No 28, 2nd Stage, Industrial Suburb, Yeshwantpur, Bangalore
C
M
Y
CM
MY
CY
CMY
K
