‘We’ve moved from impulsive to mission shopping’

In the DNA retail discussion, our expert panel debate how India's retail market is faring better than that of the West

DNA: How has the recession affected the Indian retail sector?
Sandip Tarkas: I don't think we should use the word recession. 'Slowdown' would be a better word. People are thinking before buying anything, especially if it's expensive. But given these circumstances we at Future group are doing fairly well.

Tina Tahiliani: Where designer wear is concerned, it's the diffusion line that has been hit the worst. The high end lines at Ensemble — especially bridal couture hasn't really taken a beating and that's because in India, weddings are a big deal and no bride wants to compromise on her trousseau. It's something you save for all along and then don't hesitate to splurge on — unless your dad has lost everything in the stock market crash!

Gayatri Ruia: Ours is a developing market. At High Street Phoenix, we had a good run till November which is when the attacks happened and the global financial scenario started dimming.

Smeeta Neogi: The consumer has become very cautious now. We’ve moved on from impulsive to mission shopping — where you you stick to the alotted budget.

Sangita Kathiwada: The market for high end clothing will never disappear. At Melange, we stock a lot of specialised clothing, a majority of which falls into diffusion category. So yes, the sales went down by 20% last year end. Even January saw a dip in the sales as the market for specialised clothing is by nature a very erratic one. 

Smeeta: Westside went on sale in January but many stores had started offering discounts as early as last November.

Tina: What was really surprising was that some of the high end international luxury brands went on sale. That kind of sent signals to other stores as well — that they too should go on sale. But it's a bad idea of everyone going in for early sales, it will only hurt the retailers. Especially if the sale is being held during the peak season; it's like committing suicide.   

Sangita: December and January are the peak season for designer wear as that's when most of the weddings happen. I was shocked when LVMH went on 95%
discounts in New York!

Gayatri: Yes, with the sales, the basic price points for the low end lines at our stores went lower. But it has translated into some good business over the past few weeks.
Tarini Jindal: Business at my store Muse has been affected, but not to a staggering extent. Abroad, something is always on sale; it's a part of their retail culture. But I have stuck to the British calendar for the sales — one happened in January and the other will be in July and no earlier.

Sudhendra Hayagrib:  It's not as bad as it's being made out to be. The metros are very aware of the recession but the smaller towns are not. For example, our Century Apparels stores in Varanasi have done better than the ones in South Ex, Delhi. So all is not lost for the Indian market.

Varuna D Jani: We have to re-package things in an innovative manner and give the customer a new value-for-money experience.
 
DNA:  How is the mall culture doing under these circumstances?
Gayatri: An electronics store has just opened at our mall and it's getting sales of around Rs40 lakhs during weekends. So the shopping on weekends has increased and the weekdays have suffered a setback.

Sudhendra: But not all malls are faring equally well.

Gayatri: That just boils down to haphazard development. One  Sunday I went to my mall and just looking at the crowds made me feel very happy.

DNA: Has the demand for jewellery shot up now?
Varuna: Of course, the demand for gold has gone up and it will continue to rise despite the increase in its prices. Such are the times that gold will be looked at for a sense of security. But ironically, the demand for diamonds has gone down; solitaire sales have reduced by 25%. After all, diamonds are a luxury item generally bought out of secondary income which has decreased due to the global slump.

Sudhendra: Irrespective of jewellery or clothing, the company or store in question should just continue to focus on brand building. 
 
DNA: How does one go about brand building in such times?
Sangita: My store's USP has always been the fact we dwell on young talent and even the rural sector; we have created a niche.

Tina: No matter what, the USP shouldn't be discounts on current offerings; that doesn't make sense at all.

Sandip: We are looking at targeting specific set of customers. For example, the Jealous 21 range is getting good response from teenagers.

Smeeta: Window dressing is turning out to be very important. Especially in the smaller towns, we have realised that the dresses put on the mannequin are the first ones to be sold. Even in the cities, the customer gets a kind of assurance when he / she sees the outfit on the mannequin.

Varuna: Yes, we should rope in stylists to do up certain dummy looks at our stores. But it should be something new.

Sudhendra: They say that the Internet is a great marketing tool but most people here want to see the product and then buy it.

Smeeta: There's also the literacy issue that comes in where internet usage is concerned.
Gayatri: Bollywood is a big influence on Indian fashion and the NRI clientele — especially in the Middle East laps it up. 
 
DNA: Have the men veered towards designer wear as opposed to the brands?
Tina: Men indulge in very random purchasing. They pick up a few shirts for special occasions but on a regular basis, the investment banker will still go for branded suits to be worn at work.

Gayatri: Yes, branded menswear items are usually value for money.