Woodland-The Big Kick Off (1)

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Strategy MAGAZINE | JUN 21, 2014

"We needed to reinvent the way we do business, because if we didnt change, somebody else would have come in" Harkirat Singh,Managing director, Woodland

CORPORATE: STRATEGY

The Big Kick-Off Armed with innovative products and brand extensions in niche adventure and outdoors categories, Harkirat Singh wantsconsumers to see Woodland in a new lightVIKAS KUMAR

On Gurudwara Road in central Delhis bustling and crowded Karol Bagh market, it is easy to miss thenondescript, grey four-storey building that houses Aero Groups corporate office. Entering the reception,

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Since the newinnovations rely ontechnology,Woodland hastaken the licensingroute on thespecific applicationit uses them for

you feel as if you have been transported to a trading house from the 1980s. The ageing paint andweathered wood paneling gives the sense of a company steeped in its past, nowhere close to the youthfuland vibrant image of Woodland, the popular homegrown adventure brand it represents. That is, until youstep into the cramped but modern elevator that takes you up to the first floor. Here, gleaming workspaces,open layouts, wall cabinets whose doors cleverly double up as writing boards all give out a fresh vibe of acompany gearing up for the future

. Clearly, Woodland is a brand thats being refreshed for a new innings. The

transformational process has been underway for some time now, says MDHarkirat Singh. We needed to reinvent the way we do business, because ifwe didnt change, somebody else would have come in, he says.

Since its launch in 1992, Woodland has single-handedly built a small category outdoor lifestyle and grown it through a mix of sharply targetedadvertising for its young buyers, community building and events and allianceswith environmental organisations such as the World Wildlife Fund and theUnited Nations Childrens Fund. In doing so, it has cleverly straddled anexpanding adventure gear market. Woodland connects with the outdoorlifestyle image without being dependent on it, agrees Devangshu Dutta, CEO, Third Eyesight, a retailconsulting firm. Now, Singh and his team are upping the ante. Preparations have been underway for a

couple of years: a new line of innovative products has been unveiled and the brand extended intospecialised categories within the adventure and outdoors space. Take, for instance, shoes and garmentsused in mountaineering, trekking, cycling and equipment for rappelling. The idea was to address the needsof entry-level users and not necessarily professional climbers and trekkers to begin with. Some productsneed safety approvals and we may not go for them right now, points out Singh. For sourcing such products,it has tied up with global manufacturers. A few of these products have already been introduced, such asGoPro outdoor cameras and climbing stick sourced from an Italian company, and trekking umbrellas from aGerman supplier.

The initial response has been encouraging, prompting Woodland to work on a plan to introduce five to tennew products each year. Right now, I am holding a Woodland shoe with Gore-Tex lining and a Vibram sole,which will cost you only Rs 8,000 a pair, says Singh, who is down south visiting the companys Kochi store.

The point Singh wants to make is this: Woodland makes shoes that are comparable with global brands.

But old-time sellers such as Avinash Kamath of Mumbais Avi Industries havent heard of these yet. Heremembers the companys traditional range being perceived as rugged but bulky and unsuitable for climbingmountains. Their shoes are 50% heavier compared with European brands, he says. Started by his fatherin the 70s, the business is run by Kamath, a seasoned mountaineer. Stores such as Avi, Adventure18 inDelhi and Cliff Climbers in Dehradun have been the go-to places for gear for professional or earlymountaineers. They are also the key influencers for the category, which grows mainly by word-of-mouth.Kamath is pleasantly surprised when told about Woodlands advanced range. If they have such products,they should be promoting them. Its exactly what Woodland is trying to do with marketing and innovation.

Brand push

From selling shoes to adding apparel (extending into a more formal line of wear under the Woods brand), theRs 1,000-crore group has come a long way from its origins as a supplier of finished leather uppers to


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footwear manufacturers across the globe. An impulsive decision to replicate a design that the Aero Groupwas manufacturing for an Italian client and test it in the Karol Bagh market led to the creation of a brand thatis now available in 4,000 multi-brand outlets and boasts of 450 exclusive showrooms in around 200 cities.In the past few years, Woodland has been clocking 13% to 18% growth (see: On a firm footing), comparedwith 20% for the overall footwear and apparel market. But Singh is in no hurry to grow any faster. Though hewants the company, which earns 60% of its revenues from footwear, to be seen as a more entrenched andfocused player in the outdoor wear and adventure gear business, which currently accounts for a negligibleshare of revenues.

The reason the adventure sports market is gradually picking up pace in India on the back of corporateoutbound programmes and a general sense of awareness through television. Trekking, climbing and rapellinghave been most popular in that regard. Its a category that barely existed among the most passionate ofadventure lovers trekkers, mountain hikers and climbing enthusiasts. The outdoor category is a hugeuniverse. We are addressing only a small part, says Singh. And the company is doing that by creatingawareness of the category, celebrating everyday heroes. Woodlands brand ambassadors include peoplesuch as Loveraj Singh Dharmshaktu, an assistant commandant in the Border Security Force who hasclimbed Mt Everest five times; Planning Commission employee and ace endurance runner Arun Bhardwaj;Deeya Suzannah Bajaj, who at 14 was the first and youngest Indian to go kayaking in the Arctic Ocean inGreenland; and Archana Sardana, who is the countrys first woman B.A.S.E. jumper, skydiver and scubadiving instructor. Woodland, in fact, developed special gear a flappy bird-like jacket for Sardana forB.A.S.E. jumping, considered among the riskiest sports since it involves leaping off buildings and bridgeswith a small parachute.

Apart from using images and videos of these ambassadors and sharing details of their achievements on itswebsite, Woodland also leverages them as field testers for its ongoing product development and designprocess. Dharmshaktu, who has been tapped for his feedback on a new range of jackets, has also beenhired as a consultant for an upcoming adventure zone being created on the outskirts of Delhi. Located on a100-acre property on the Faridabad-Gurgaon Road at the foothills of the Aravallis, Singh says the zone,which is likely to be ready in six months, will serve as an events hub to connect with its audience anddemonstrate its newer range of mountain gear.

True to its Timberland-inspired positioning, Woodland has stayed consistent over the years about what it

stands for rugged, outdoorsy and for people with a desire to explore and seek adventure.Communication, too, has remained largely consistent with the brands core values. Over the years, itsbeen the most well-defined brand Ive worked on, says Tanul Bhartiya, senior VP at Lowe Lintas &Partners, the agency thats been handling the brand since its launch in India, now under division KarishmaAdvertising. While Woodlands advertising is largely print-centric, over the years, there has been a greaterpush towards digital marketing to stay connected with its target group 18-24 year olds. The rethinkprocess was kicked off four years ago, when Singh enrolled for a two-week Taking Marketing Digital courseat Harvard Business School with Amol Dhillon, vice-president, strategy and planning. That led to a digitalmarketing push for the brand that continues over popular platforms such as Facebook, LinkedIn andYouTube. Woodland now has 3.2 million fans on Facebook and 6,000 followers on Twitter. Its in-housesocial media content team is currently working on a Woodland TV app for iOS and Android, and a quarterlydigital adventure magazine modelled along the lines of Redbulls Red Bulletin. Brands have to be their own

content creators, says Dhillon.

All these initiatives assume importance as the larger market for adventure and sports goods opens up in thecountry.


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Bring it on

Though not in direct competition, Woodland will now have to contend with newer players entering its turf,even as older rivals cede ground. French sports and adventure goods retailer Decathlon is now available inIndia its Quechua label is a popular brand among mountaineers and Woodland is watching its progresscarefully. On familiar turf, Woodland has managed to ward off a larger threat from Timberland, the brand itssaid to be inspired from. The popular New England (US) brand, which changed ownership in 2011 to NorthCarolina-based VF Corporation, is represented in India by Reliance Brands. The resemblance has beenuncanny right down to the logo. But with 14 points of sale that include eight brand stores and six shop-in-shops, the iconic brand known for its signature Yellow Boot has settled to peacefully coexist withWoodland after filing for intellectual property (IP) infringement and losing the case in 2012 as the latter wasthe first mover in India. In what should be music to Singhs ears, Darshan Mehta, CEO, Reliance Brands,points out that Reliance is unlikely to renew Timberlands brand licensing agreement for India that comes toan end by mid-2015. We had already stopped expanding [Timberland outlets] a year back, adds Mehta.

Woodland has been aggressively adding 60-70 stores every year, and this year will see similar numbers,Singh says. We are more conservative in our new store additions since we do not follow a franchiseemodel. With a footprint extending to towns such as Thodupuzha (Kerala), Ambikapur (Chattisgarh), Barnala(Punjab) and Hamirpur (UP), Singh is confident of introducing new lines to every corner of the country.

But it wont be a cakewalk for Woodland. Professional users of outdoor gear arent really Woodlands core


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customers: they depend on globally established brands that are specialists in each line of adventure goods.Hardcore mountaineers, for instance, swear by brands such as Quechua, Merrell, Lafuma, North Face,Mountain Hardwear and Millet, even though they are far more expensive in the Rs 10,000-Rs 14,000range on average. Also, leading brands use the Gore-Tex waterproof leather treatment or its equivalent,which is a must for professional climbers, who often climb in snow. Similarly, Vibram outsoles, with theirnon-slippery grip, are de rigueur in trekking and climbing shoes. I would never recommend [Woodlandshoes] in their current state for high-altitude trekking. These shoes are very heavy, says a mountaineerwho runs her own adventure sports firm. Atul Anand, director, Cliff Climbers says, Woodlands shoes arenot at all comparable to technical products. Shoes are among the three elements of a good trek along witha light and well-designed backpack and the right kind of clothes.

Its clear that even as the brand ambassador programme is creating the right buzz for its potential andcurrent customers, there are enough gaps in this sphere. Many of these influencers arent informed about orconvinced of its professional line of products.

Singh is aware of the challenges that the brand faces and its not surprising that hes looking to up the ante by focusing on innovation and evolving their products to appeal to the serious adventurer.

By design

It all happened when Singh, who was already thinking of ways to innovate, heard about IDEOs design

innovation course at Stanford University. Last year, Singh and Dhillon attended the intensive five-dayprogramme, where they picked up lessons on consumer centricity through IDEOs famed design thinkingframework. As part of the course module, Singh and Dhillon had to spend time inside Los AngelesInternational Airport chatting up 20 passengers at random to understand their needs and concerns relatingto airline services, boarding and check-in procedures. That module was for US carrier JetBlue, which hadroped in IDEO to design a service offering that would appeal to frequent travellers and those passengerswilling to pay more and generate new revenue without alienating its core customers. Through thisexercise, the duo picked up cues on designing a better service experience for the Woodland brand backhome. It changed our way of thinking. We came back with an open mind to talk to our customers, he says.

Back in India, Singh was quick to organise brainstorming sessions for each vertical of the business, frommarketing to store sales and from manufacturing to design. Product ideas were discussed, so were ways to

improve store productivity. We asked our store sales people to talk to customers about what matters tothem and use that understanding to help us improve our offerings and service, says Singh. As it turned out,the feedback was that customers were looking for something revolutionary.

Armed with this new insight, Singh got down to raising the bar for Woodland. It began with technology, as


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Woodland roped in geeks to introduce new features into its products. Over the past six months, thecompany has rolled out a slew of new products as part of the initiative. One such product is a shoe thatallows blind people to trek. Another one, developed with the help of former NASA scientists, is a battery-operated jacket with heating pads that regulate temperature on long treks and sub-zero climes. Then theresthe ResQ jacket, which is embedded with the RECCO directional radar reflector chip for precise locationsearch in case its wearer gets caught in an avalanche. The signals from the chip can be detected up todepths of 30 metre below ice, and it runs without a battery. There are warm grip shoes to ward off frostbiteat temperatures up to -20 degrees Celsius, powered by a lithium-ion battery and a warming coil fitted intothe outsole. Woodland has also come out with outdoor bags fitted with solar powered chargers for mobilephones and other gadgets and is recycling plastic into fibre to make garments. Some of these ideas alsocame from the technology and outdoor sports-focused Consumer Electronics Show, an annual exhibitionheld every year in Las Vegas to showcase innovation in consumer technologies, and Ispo Munich, theworlds largest platform for young entrepreneurs in the sporting goods business.

Woodland is also backing up the new products with a campaign scripted by Lowe Lintas & Partners, titledLive to tell the tale, which showcases gear for adventurers to survive the harsh outdoors. The campaign,comprising outdoor hoardings, print ads and TV commercials, revolves around outdoor enthusiasts beingrescued from tough situations.

Since the new innovations rely on technology, Woodland has taken the licensing route on the specific

applications it uses them for. For example, the technology for the ResQ jacket is owned by Swedishcompany RECCO. Woodland pays it a royalty, plus a percentage of sales if the volumes are larger. Theseproducts are priced much higher and meant for specific or extreme uses. The jackets with heating pads, forexample, are priced between Rs 15,000 and Rs 20,000 each. These products are highlighters for ourrange. We dont look for huge volumes on them, says Singh. So the reflector radar jackets launched lastseason (winter) at a similar price band sold around 7,000 units, compared with the bestselling jacket, pricedaround Rs 4,000-Rs 6,000, which sold up to two lakh units in a year.

These and the mainline products are manufactured across four locations Baddi and Paonta Sahib forshoes, Dehradun and, recently, Roorkee for jackets and shoes. Jackets are also sourced from Bangladesh,while some products are sourced from factories in Vietnam and China. With an installed capacity of500,000 pairs of shoes 200,000 pieces of apparel each month, the groups manufacturing employs

advanced and more precision-oriented techniques now to cater to the more demanding domestic market andan export business growing at 35% as well.

Singh, however, is unwilling to quantify the impact that new additions will bring to the business, even as heis banking on Woodlands extensive reach for these products to piggyback on. We have real depth in themarket with our store network. This gives us an easy route to bring in new products and expand ourportfolio, he says.

Harminder Sahni, founder, Wazir Advisors, a Gurgaon-based retail consultancy firm, feels that Woodlandhas stayed true to its original values, which has served the company well. Theyve managed to grow andyet not spread themselves too thin, says Sahni. Only time will tell if the new bets will pay off. For now,Singh has no plans to outgrow the office building that has seen the brand prosper. We have become very

comfortable in this zone, he says. That may change when competition comes knocking, but for now Singh ishappy staying in the woods.

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Woodland-The Big Kick Off (1)

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