Panel Discussion: Emerging Trends in Lifestyle Retailing

Feb 6 2014.

• Vasanth Kumar, ED, Max Retail• Rahul Mehta - President, Clothing Manufacturers Association of India

• Darpan Kapoor, Vice President, Kapsons Fashions• Vineet Gautam, Country Head, Bestseller India• Vinay Nadkarni, MD & CEO, Globus Stores Pvt Ltd

Panelists (from Left to Right)

Moderated by Rahul Mehta : President CMAI

What is the one trend that has been driving Indian lifestyle retail in recent years?

• Having established 100 stores across 40 cities, the strategy that has worked is “Affordable Fresh Fashion”.

• Retailers have a choice - 75% margin, with 2 inventory turns a year or 35% margin on 8 turns

• We operate at a 40-42% margin and turnaround stock 6 times a year.

• Store profiling is the key to this business

• We price our products sharply to allow us to turnaround stock within 60 days.

• We have been following this strategy since 8 years i.e. the beginning of Max Retail.

Vasanth Kumar, ED, Max Retail

Moderator: Rahul Mehta, President CMAI

Our high level of inventory turns makes us immune to market discounting.

What is the one trend that has been driving Indian lifestyle retail in recent years?

• Kapsons aggregates key international brands.

• There is huge awareness about international brands as India follows the West in terms of fashion.

• Earlier, we used to turnaround stock almost 6 times a year.

• However, due to growth in our brand value, now we turnaround 4 times a year.

Darpan Kapoor, Vice President, Kapsons Fashions

Moderator: Rahul Mehta, President CMAI

In the world of brands, style is the key.

Customers are willing to pay (full price) for international brands.

• Consumers are looking for value from lifestyle spends.

• We are witnessing surging demand from Tier 2 and Tier 3 cities.

• 60% demand is from women’s fashion. The trend these days is for mothers & daughters to shop together.

Vineet Gautam, Country Head, Bestseller India

Moderator: Rahul Mehta, President CMAI

What is the one trend that has been driving Indian lifestyle retail in recent years?

What is the one trend that has been driving Indian lifestyle retail in recent years?

• Demand for women’s wear is at its peak.

• Trust is an important factor whereby customers are looking towards lifestyle stores to validate the information they already have from Internet and other sources.

• Lifestyle stores need to appreciate the time spend by customers in the store and make their experience worthwhile.

• Online retailing is certainly challenging our business but we do need brick & mortar stores as a mode of distribution.

Vinay Nadkarni, MD & CEO, Globus Stores Pvt Ltd

Moderator: Rahul Mehta, President CMAI

Is e-commerce is threat or an opportunity?

• E-commerce is very exciting for all retailers. However, brick & mortar retailers like us should enter the online space for product validation and not to make profits.

• Retailers today need a good mix of brick & mortar stores as well as a good online presence.

• We have seen a 6% growth in six months owing to our strong e-commerce website.

Moderator: Rahul Mehta, President CMAI

Darpan Kapoor, Vice President, Kapsons Fashions

Vineet Gautam, Country Head, Bestseller India

Why are value stores venturing into fashion formats?

• Convergence of technology and services is a growing trend.• Value formats in fashion are a way to tap unmet aspirations among budget shoppers.

• Customers don’t want to be seen as buying value products.

• However, all purchase decisions are driven more by value proposition than brand consciousness.

• Value retailers are entering fashion to try and straddle this balance.

Moderator: Rahul Mehta, President CMAI

Vinay Nadkarni, MD & CEO, Globus Stores Pvt Ltd

Vasanth Kumar, ED, Max Retail

Why are end-of-season-sales (EOSS) growing in popularity among lifestyle shoppers?

“EOSS demonstrates lack of strategy during non-sale periods”

Vinay Nadkarni, MD & CEO, Globus Stores Pvt Ltd months.”

“Apart from clearing stock, EOSS is a way to draw footfalls and the

trend is here is stay.” Vineet Gautam, Country Head,

Bestseller India

“Retailers must use EOSS period to introduce new stock and make it

profitable at an overall level.” Darpan Kapoor, Vice President,

Kapsons Fashions

“EOSS is a opportunity to correct mistakes of the whole year and

the objective should be to reduce sale time.”

Vasanth Kumar, ED, Max Retail

Moderator: Rahul Mehta, President CMAI

Panel Discussion: Emerging Trends in Lifestyle Retailing

Feb 6 2014.