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M A R K E T I N G Dressing up Ms Desi
All apparel marketers have to be men. How else does one explain that until now there were virtually no women's western-wear brands? Now, though, a bevy of big ready-to-wear players like ColorPlus, Proline, Wills Sport, and Indus-League, along with leisure-wear veterans such as Lacoste, Benetton, and Weekender, have started doing contemporary womenswear. And if they are to be believed, this sliver of a segment is a goldmine waiting to be tapped. The reason: acceptance of western-wear by women and their sheer number in the workforce. Says Fazle Naqvi, director (marketing & merchandising), Indus-League Clothing, which has launched Scullers range of smart casuals for women: ''The women's apparel market is estimated at Rs 6,500 crore, of which western-wear accounts for a tenth. With choices available in right fit, style, and price, these numbers could go up dramatically.'' Proline, well-entrenched in sports and leisure-wear, has brought out a semi-formal range for women that could classify as office wear. Called Proline For Women, the range has knits and wovens in tops and semi-formal trousers for women. Says Kabir Lumba, coo, Proline: ''We plan to invest here as we see a lot of potential in this virtually captive market.'' Yet another player, the Chennai-based ColorPlus, has introduced a small but premium women's line in high-end fabrics like celanese acetate. This line includes blouses, skirts, trousers, and evening-wear. The company expects womenswear to account for about 12 per cent of its turnover in the next two years. Add to this the limited semi-formal range that players like Lacoste and Benetton have, along with stores like Westside and Shoppers' Stop chain, and there could very well be a boom on the distaff side. -Paroma Roy Chowdhury O
F F - B E A T
One claims to be the nation's family optician; the other, just a place where the best in spectacle fashion is sold. One has a 123-year-old legacy; the other will be celebrating its Golden Jubilee next year. One claims to have fit spectacles for Mahatma Gandhi, Prithviraj Kapoor, and Amitabh Bachchan; the other boasts having had Indira Gandhi, Rajiv Gandhi, and Sushmita Sen among its clients. The first, of course, is the venerable Lawrence & Mayo, and the second is Bon Ton-an upmarket (and upcoming) optical chain. And both want to be India's best-known eye care brand. Lawrence & Mayo is already present in 12 cities, with 25 showrooms and 400 employees. Bon Ton has just four showrooms in Delhi (there is one more independent branch that belongs to a fragment of the family that owns the others). Over the next five years, Lawrence & Mayo wants to be present in every state (roughly 50 cities), and Bon Ton plans to push deeper into the north, especially Punjab, with three more outlets planned next year, and then move into the west and the south. It's a brave move for both, considering that the optical care market is dominated by the unorganised sector, partly because eye care awareness is low. The two brands, however, are doing their bit to change that. For instance, Lawrence & Mayo regularly conducts vision-screening programmes in schools. Similarly, Bon Ton periodically hosts eye-care camps. Both are focusing on better customer service to build their brand equity. Says Sanjeev Madan, Director, Bon Ton: ''Nearly 60 per cent of the business is from prescription glasses, and you need good people to fit the spectacles and check the lenses.'' Quality, however, comes at a cost. The two opticians stock the best of brands like Boucheron, Ray Ban, Police, Dolce and Gabana, Giorgio Armani, and Fendi. The price range? Rs 300 to Rs 30,000. In the US, large chains like Lense Crafters, Wal-Mart (yes, it has a spectacles counter), and Vision Express have 500-plus stores. But, as Vivek Mendonsa, Director, Lawrence & Mayo, points out: ''America is a mature optical market, where brands compete with in-house store brands.'' But there's no denying that India's wannabe optical giants have their sights trained on the right target. -Vinod Mahanta R
E T A I L After traipsing to one side of town for marble tiles, another for sanitary fittings, and yet another for paint, you reach home pooped-only to have the contractor tell you that he needs used dhotis (white cloth). No more groaning, though. House-building just got easier. A new home building and renovation retail chain, Arcus, fashioned after Home Depot of the US, has set up shop in Gurgaon, near Delhi. The retailer aims to offer fixed prices, assured quality and advice, and a panoply of products, ranging from tiles and paints to hardware and electricals. Says I.S. Narula, President, Arcus: ''In the building materials business, retail is a very weak link. Most consumers don't know what products are available to them.'' Arcus has only one 30,000-sq. ft store-with 23,000 SKUs (Stock Keeping Units) sourced directly from manufacturers-in Gurgaon, but plans to have a total of 10 within the next three years. It will involve a Rs 100-crore investment, to be brought in by the Amit Judge (of Stencil fame)-promoted Turner Morrison group and private venture funds. The store is aimed at individuals as well as professionals. Says Arvind Nagarajan, CEO, Arcus: ''We will be a one-stop shop-good prices, fixed quality and customer advice.'' Arcus is confident that within the next three years, each store will do Rs 30 crore-plus in terms of turnover. But it will not be an easy task. Says Dipankar Halder, manager, KSA Technopak: ''To get volumes, Arcus will have to look at getting smaller players to shop from them.'' Besides, managing the huge inventory list will be critical. The retailer already has an ERP in place, and is growing its SKUs step by step. Or, as Narula might say, nail by nail. -Seema Shukla C
O N S U M E R E L E C T R O N I C S In a lacklustre market, pit a good stable brand against the perceived flamboyance of a foreign brand. Who'll win? If you are talking about the Indian market, chances are that the phoren tag will stick. No, it's not pessimism or bitter swadeshi angst, but hard data, that's behind the statement. Take a look: Three top brands in colour televisions-BPL, Videocon, and Onida-are losing marketshares to aggressive foreign players-especially the Koreans and the Japanese. Two research agencies corroborate the fact. According to ORG-MARG, BPL's marketshare in August, 2000, was down to 19.3 per cent versus 20.9 in the same month in 1999. Videocon took a bigger hit, losing share from 14.2 per cent to 9.8 per cent. And so did Mirc Electronics (Onida), whose share slipped from 12.5 per cent to 11.2 per cent. Another set of figures from research agency, Francis Kanoi, reveals that the erosion in marketshare has been steady (See How The Cookie Crumbles). Says Francis Kanoi, Managing Director, Francis Kanoi Marketing Services: ''The transnational brands, through brand image and product offerings, have come to occupy the premium and, therefore, the profitable segments. The Indian brands have been pushed down the price points, where volumes determine profitability. And pushing volumes is becoming more and more difficult.'' The aggressive gainers have been Samsung and LG, who five years ago were non-existent, but today command 8.3 per cent and 7.6 per cent, respectively (according to Francis Kanoi). Claims Ravinder Zutshi, Vice-President (Marketing), Samsung Electronics: ''We have an edge over the others in digital technology.'' Yet, the fact remains that BPL, Videocon, and Onida still lead the pack. And, as Rajeev Karwal, Senior Vice-President (Consumer Electronics), Philips, says: ''If the leading players play their cards well, there's no reason why they can't maintain their lead in the long term.'' Did somebody say, amen? -Vinod Mahanta N E
W P R O D U C T S Call it vying for a share of throat. Savvy marketers around the country are zeroing in on coffee, particularly of the cold, frothy kind. Nestle India, the leader in the 7,000-tonne instant coffee market, has just launched frappe, an up-market cold coffee mix that has a blend of mocha and vanilla. Britannia Industries has introduced a cold coffee under its Milk Man umbrella, and milk products behemoth Gujarat Co-operative Milk Marketing Federation, that markets the Amul range, plans to enter the cold coffee segment. That's not all. The Java Coffee Company (JCC) that operates the coffee-chain Barista is looking to set up 40 outlets in top 10 cities by March, 2001. And there is Qwiky's launched by Chinmayo Chains in Chennai, with a licence from Qwiky Corp. in the US. Says Carlo Donati, chairman, Nestle India: ''Though the category is marginal at present, we see a lot of potential. May be it will be the new Maggi for us.'' That statement isn't all froth. Despite a dismal national per capita consumption rate of seven cups, the 55,000 tonnes ground-and roast-coffee market is growing at 7 per cent. As there is a marked seasonality in sales of coffee as a hot beverage, the new offering from the Nestle stable, could help increase consumption in the summer months. Also, cold coffee by virtue of being a cold beverage, can compete with juices and colas, and therefore rake in a bigger market share. The fact that it is milk-based, makes it a healthier alternative as compared to carbonated drinks-something that Britannia Industries uses to its advantage, while pushing its 'Milk-Man' range. And, as Naveen Chopra, marketing manager, (new business), Britannia Industries, adds: ''Health is a concern with youth and adults alike, an attribute which we engender in almost all our products, including the cold coffee.'' Price could be a barrier though, taste notwithstanding. While the Britannia product is offered at a reasonable Rs 12 for 200ml. (the chocolate and strawberry variants are priced at Rs 10), Nescafe's Frappe is priced at a steep Rs 49 for 50gms, while each Barista Coffee is priced at Rs 30 or more. Well, who says coffee, particularly the cool variety in tall, frothy glasses, is meant for the masses? -Paroma Roy Chowdhury
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