‘India is not a price-conscious market any more’

After being at the helm of premium fashion retail for several years, Wills Lifestyle, the niche retail business of ITC, has taken up a major brand- and image-building exercise. From offering styles put together by top-notch designers of the fashion industry and tying up with design institutes, to sponsoring the Fashion Week and planning a new look for the stores, it has left no stone unturned to tap the evolving, discerning Indian consumer.  Atul Chand, the divisional chief executive of the Lifestyle Retailing Business of ITC, tells DNA Money’s Tanvi Shukla and Madhumita Mukherjee about these new initiatives and more. Excerpts:

How has your customer changed over the years?
We are observing a change from price-led thinking to a greater emphasis on aesthetics and differentiation. Our customers’ wardrobes are becoming bigger and they are putting greater thought into dressing up according to the occasion. The same pair of shirts and trousers won’t do anymore for work, dinners and special occasions.

How have you changed with their evolution?
The portfolio that we offer has become bigger. We have a range for different occasions. We have also tied up with international design houses and 7-8 Indian designers to offer their ranges in our stores.

What new initiatives have been taken at Wills Lifestyle?
Apart from working on our brand imagery through sponsorships and customer relationship programmes, we have decided to give our stores a new look. We have hired a US-based design house, FRCH, to design all our new stores. The idea is to provide an ambience that reflects our premium product offering. All our new stores in the last four months have been designed accordingly in terms of interiors and display.

And the old stores?
They will be refurbished and changes will be made accordingly.

Wills Lifestyles stores have always sported a premium look. So why change?
We are positioning ourselves as a more upscale brand. It is a shift from premium to super-premium. For our stores to reflect that shift, we needed a new look. It has proven successful in our pilot project, where we witnessed a 20% boost in same store sales post-refurbishment.

A lot of focus is on visual merchandising, which definitely pushes sales as you can successfully tell a story with proper showcasing.

Have you seen any decline in sales or footfalls in the last few months?
We have been growing at 15-20% in the past few months. My theory is that the higher you are in the economical strata, the more insulated you are to market dynamics. But yes, the mid-price segment has become a bit sluggish, even for some of the brands that we offer. We are seeing lower footfalls, but our brands are strong and will not be affected.

Where is the growth coming from?
We are seeing enormous growth in the women’s segment, which is growing at 30% even though the base is lower. Lifestyle category itself is at a nascent stage and so, there is tremendous potential for growth.

So your expansion plans are on track?
Yes, we currently have 50 stores in 30 cities. In less than two years, we will have 100 stores. We are now entering tier II cities such as Raipur, Indore, Nagpur and Siliguri.

You were eyeing the overseas market. What happened to those plans?
No, we are focusing on India right now. We may take at the overseas market in one-two years. But right now, we see possibilities across segments within the country. India is growing and the fundamentals are okay. The Indian fashion market is at a nascent stage. The branded ready-to-wear market is only Rs 8,000 crore. This is not even 40% of the total Rs 20,000-crore apparels market. The branded segment is growing at 15%. Like I said earlier, India is not a price-conscious market any more, though it is value-conscious. The consumer today doesn’t mind paying for something hatke (Hindi word for ‘different’).

How has the association with the India Fashion Week impacted your branding?
First, it has helped the brand become more popular. Designer-wear now accounts for 15% of our sales. So, as a brand, we are being able to service consumer needs better. Secondly, footfalls in our stores increased by 15% over the last six months thanks to our association with design labels. Thirdly, we have registered a growth of 25% in sales against the industry average of 15%. Lastly, women’s wear has become a strong segment, accounting for 35-40% of our sales.

What is your core branding today?
When we started out 7-8 years ago, Wills Lifestyle was mainly a ‘man-woman’ brand. Today, it is a ‘wardrobe lifestyle’ brand. About 50% of our clients are women. When they come into our stores, they also buy for men! In the 40,000 strong loyalty programme, about 12,000 are women. And where designer wear is concerned, women do better. This particular segment is growing at 30% for us against the industry average of 15%.

What will the future focus be on?
We aim to make the brand more upscale - in terms of service, catalogues etc. We have plans to focus on formal wear and, overall, on women’s wear. Also, our stores are going to smaller cities.

(Atul Chand spoke to the reporters on two separate occasions. This interview is a combination of the two interactions.)

s_tanvi@dnaindia.net
m_madhumita@dnaindia.net