Fashion Leadership With Style

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FASHION LEADERSHIP WITH STYLE

Contents

08

10

20 Years: Looking back

12

‘Customer-centic retail must!’

Business Model Canvas

This is what Ramanathan Hariharan,

pathbreaking strategies, workshops

Group Director and India Chairman,

and meets that set the foundation

emphasises on, the FFA approach

and put it on the road to success.

launched to ensure profitable growth

A graphic representation and

of Lifestyle was, at the roots, led by

overview of the FFA approach.

Felicitations from Renuka Jagtiani and Group CEO for all the good work

A graphic look at the scenario.

22

FFA and the Offline Approach

this very policy.

Appreciation from the Chairperson

11

20

A visual look at some of the

24

FFA 1: Securing the Top 20 Stores

Gensis: Five Focus Area (FFA)

The immediate imperative of

and team spirit that makes Lifestyle

Vasanth Kumar, outgoing MD /

FFA 1 was to secure the top 20

India so special.

CEO Lifestyle, had done a deep-sink

stores that delivered one-half of

analysis of the company and the

the top line and two-thirds of

Felicitations from Kabir Lumba

market before he arrived at the Five

the bottom-line. This initiative

The Group Director congratulates the

Focus Area (FFA) approach. It aimed

was specifically geared to achieve

team and sets the tone for the future.

to take up the bottomline.

this goal.

14

LIFESTYLE

3

30

FFA 2: Delivering Store-Brand

42

FFA 4: Concern Stores and New

56

FFA and the Online Approach

Profitability

Stores Turnaround

A graphic representation and

The mapping of individual store brand

In a brand that was doing well overall,

overview.

profitability and evolving systems to

why were some stores lagging behind

better their performance was the aim

— this was what FFA 4 sought to

of FFA 2.

examine and rectify.

58

Pivoting the FFA Online Approach Even as the Five Focus Area (FFA) approach was functioning well,

36

4

LIFESTYLE

FFA 3: Fresh Fashion

FFA 5: Strengthening LS Brand

the online platform was emerging

Availability & Service

Equity and Loyalty

as a concern area. So, an online

A loyal customer visits a Lifestyle

Once all else was on track, the matter

interpretation of FFA was put in place.

store 6-7 times a year but stock

of strengthening brand equity and

turnover was happening 3 times at

loyalty became critical to ensure

best... FFA 3 sought to tackle the

consolidating the gains of the FFA

Approach at a glance

resultant customer fatigue.

system. This was the focus of FFA 5.

With the application of the

48

66

Overall Outcome of the FFA

FFA approach, the NPS score

too underwent radical change that

of Lifestyle India shot up from

was to impact the years to come...

24% to 46% between the last

A look ahead.

quarter of 2018 and August 2019.

By Feb-Mar’20 the NPS score

76

Way Ahead - the Four-pillar

shot up higher. Check the umbrella

Approach

view of the figures.

Rishi Vasudev CEO, Lifestyle, who took over the reins from

70

Business Beyond the Pandemic

Vasanth Kumar, interpreted the FFA

The pandemic and lockdown brought

approach in the light of the pandemic

business to a grinding halt. When

and arrived at a four-pronged

work resumed, there was a change in

approach to ensure that Lifestyle

customer expectations and mind-set.

is able to reach its potential and

In response, the business dynamics

soar even higher.

LIFESTYLE

5

Foreword

As the leading department store brand,

of fashion and lifestyle with aggressive

approach’. The leadership team worked

Lifestyle stood out as a singular concept

promotions. In such a situation, the need

out five pillars of action areas which were

when it was launched in India 20 years ago.

of the hour was for a refreshed strategy

to transform practices across functions

It caught the imagination of consumers

by adopting ‘blue-sky thinking’ that would

- including the offline and online entities.

and walked a high path of success almost

safeguard the long-term interests of the

This was successfully rolled out across the

immediately throughout the country –

brand, and insulate it from the effects of

organisation setting a strong foundation

starting with the metros.

discounting practices that were dragging

for the brand to stay ahead in the years

down profitability. This would ensure robust

to come. Rishi Vasudev, who took over

all-round performance.

from Vasanth Kumar held up the legacy of

But by 2014, rapid changes were happening in the market. Competition was abuzz

thinking out-of-the-box to take forward the

in the Indian market with the entry of

The CEO and Managing Director, Vasanth

international players that began vying with

Kumar, at that time, aided by the insights

brand business.

domestic players for a slice of the fashion

provided by the customers as well as the

Read on to know more of the FFA approach,

pie. Awareness of global fashion too was on

core senior management team at Lifestyle,

the modalities and how it helped turn

the rise. Most significantly, online business

came up with a turnaround game plan

around the brand and set Lifestyle on a

was taking giant steps into the space

termed as the ‘Five Focus Area (FFA)

sound footing for the future.

LIFESTYLE

7

Eventful journey It’s the people who make a company and Lifestyle India has been fortunate to have great leadership and a sterling team. As the company moves forward, a look at pathbreaking strategies that set the foundation for taking the company ahead.

8

LIFESTYLE

Top row from left: 1. Mr Ram at Retail Strategy Meet 2020 2. Launch of CREATE at Strategym 19 workshop 3. LS Senior leadership along with the founder of Thyrocare Bottom row from left: 1. Vasanth addressing Strategym 19 meet 2. Strategym 2019 3. Tidings 19 group excercise by senior leadership 4. Tidings 2019 5. Outbound Excercise at Strategym 2018

Renuka Jagtiani, Chairperson and Group CEO Congratuations to all of you at Lifestyle! We have completed 20 years and what a journey it has been. From 1 store to 77 stores. Wherever you are – on the floor, in the office, the warehouse, in buying – each of you make a difference. We have won many awards – something we should all be proud of. Our biggest challenge is to continue to stay relevant for the next 20 years, to be where the customer is, whether it is online or offline; whether it is fashion or footwear or children… Work to push the bar, to serve the customer, to be part of their journey, to evolve with them, even as they evolve with us.

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LIFESTYLE

Kabir Lumba, Group Director Congratulations on an incredible journey! Lifestyle powered the growth for Landmark India by laying a strong foundation. I have been privileged to have been part of this team and am proud of all that we have achieved. The next 20 years are going to be even more interesting and I am sure you will rise to the occasion and meet the needs of a fast changing consumer. We will become more agile, discerning, and even more hard working!

Thank you for your commitment and efforts. I am looking forward to the next 20 years where I am sure you will make the brand more relevant and take it to greater heights.

LIFESTYLE

11

Landmark Group Director Ramanathan Hariharan, has always supported customer-centric initiatives. The FFA approach launched to ensure profitable growth of Lifestyle was, at the roots, led by this very policy...

12

LIFESTYLE

‘ Retail must bE Customer-centric’

Mr Ramanathan Hariharan,

India, he emphasises that the industry

execute aided Lifestyle and Home Centre

Group Director and Board Member of

needs to be more customer-centric. He is

adapt to the changing market dynamics

Landmark Group, had once said in an

always supportive of strategy and business

while consolidating the brand’s position in

interview: “I think my key professional

plans that seek to expand the business via

the respective market segments.

accomplishments (include) building a

making customer experience as pain-free

focused team with a vision to outperform

as possible.

in the market place.”

With an eye to carrying the Lifestyle business forward on its trajectory of

The Five Focus Area approach, spearheaded

growth through the pandemic and beyond,

Ram, as he is popularly known, has always

by the former CEO Vasanth Kumar, has

under new leadership, Ram reiterated the

enjoyed working in retail as he strongly feels

at its base, the aim of facilitating the

company motto: “As we transition into the

it is a truly dynamic industry, constantly

customer’s journey with Lifestyle - and falls

new leadership, let us continue to support

changing, and therefore providing a

under this large umbrella vision that Ram

the vision of the organisation, live our values

perfect platform to apply strategic and

speaks of. Ram further points out that the

in everything we do, and stay committed to

operational capabilities. For retailing in

strategies that Vasanth helped evolve and

achieve greater success.”

LIFESTYLE

13

P LAN BUSINESS THE

GENESIS: FIVE FOCUS AREA (FFA)

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Vasanth Kumar, former CEO Lifestyle, had done a deep-sink analysis of the company and the market before he arrived at the Five Focus Area (FFA) approach.

On the one hand was the pressing need to weed out processes and systems that no longer served the company and on the other, there was the imperative to take up the bottomline...

16

L i f est y le

“Lifestyle is a youthful brand which offers fashionable products with a seamless shopping experience and remarkable service” — the mission statement of the brand was the mantra that set it soaring on its journey of success in India…

The time had come for Lifestyle to redefine the dynamics of business, infuse fresh ideas into it and take business to a new high.

The plan had to be formulated at the top but involve employees down the line.

The directions and initiatives needed to percolate through the organization.

So it was that the second half of 2018 saw a flurry of workshops and planning meets which involved not just the top management but second and third level employees as well. A special ‘Outbound Workshop’ was organised for the senior leadership team to encourage introspection and help in rebooting the system.

Breakaway sessions helped identify focus areas. The brain-storming was followed by customer in-sighting across five cities to Come 2018, Lifestyle was still leading

competition between online market players

ascertain whether the company was in-sync

the competition but the fashion space

aided by aggressive discounting; value

with customer mindsets. By December

in the country was in a worrying churn.

fashion players becoming dominant; and

2018, the ground was laid for crafting the

International players were entering the

a ‘mall explosion’ in top cities leading to

Five Focus Area approach to take business

market with their deep pockets and quick

abundant choices, coupled with attractive

to the next level of sustainable profitability.

fashion turnovers, luring the consumer.

prices. Department stores and premium

The online revolution too was gaining

brands had to protect their market share

Challenges were rapidly converted to

momentum. Key issues with largely offline

through high decibel promotions and a

opportunities. Buying and design, planning,

retail entities were the following: intense

prolonged EOSS period.

sourcing, and merchandizing architecture

L i f est y le

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By December 2018, the stage was set for crafting the FFA approach to take business to the next level of profitability

THE PLAN DIPPED INTO 20 YEARS OF LEARNINGS

THE BEAUTY OF THE PLAN LAY IN ITS SIMPLICITY

The FFA was divided into 3 buckets: Customer Experiences, Customer Loyalty and Operational Efficiency

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L i f est y le

and IT deployment were all aligned to achieve common goals. To avoid dilutions and contradictions that may arise, each function was divided into ‘Customer Facing’ and ‘Support Function’.

The Top 20 stores went through a 360º overhaul from store upgradation and theme-based promos with a 42-week calendar supported by brand partners to focus on the CX. The EOS sales were to focus on conversion and customer experience. Geo-fencing, VM alignment, in-store zoning, brand realization and many front-end functions too were streamlined. Support functions, including IT initiatives, automation of VM, planning and analytics, team KRA alignment and social media — were all synced to

Value Propositions: Customer Experience,

 Delivery of store-brand profitability

complete the 360º focus.

Operational Efficiency and Customer

 Turnaround of new/concern stores

Loyalty. In a nutshell, therefore, the FFA

 Strengthening brand equity and loyalty

The FFA approach aimed at strengthening

comprised products and services to

the journey of Lifestyle in the path towards

increase gains (Gain Creators) and reduce

The following chapters will unfold how

sustainable profitable growth. The brand

pain (Pain Relievers).

the FFA approach took the brand on

was to deliver its main value proposition

a journey with outcomes boosting

and strengthen its market leadership

The FFA pillars were the following:

profitability and concretizing systems

position through the approach. The FFA

 Securing of profitability of the top 20

that were poised to be carried forward

was divided into three buckets or Customer

 Freshness Fashion Availability and Service

beyond the pandemic.

L i f est y le

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Business Model Canvas

Key Partner

Theme: Lifestyle is positioned as a youthful, stylish and a vibrant brand that adds style to every aspect of one’s life

Dated: Feb. 2019 Version: 1

Key Activities

Cost Structure Property Lease Rentals, Store Capex,

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Designed for:

Key Resources Lifestyle Assets

Revenue Streams TO, EBIDTA, PBT, FCF, ROCE, IRR,

Store Opex, IT Hardware, Software,

ABS, Conv, ABV, NPS, CLV

People cost: Corporate/Region/Store

Employee Engagement

Marketing Investments

Company Credit Rating

L i f est y le

Value Proposition

Customer Relationships

Customer Segments

Channels

L i f est y le

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The Five Focus Area (ffa) The FFA approach was evolved after several rounds of discussions with team members across employee levels; detailed market insights and analyses; and deliberations gaining learnings over past performances and triggers.

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Lifestyle

.01

.02

SECURING THE TOP 20 STORES

DELIVERING STORE-BRAND PROFITABILITY

.03

.04

.05

Fresh fashion and availability

Concern Stores and New Stores Turnaround

Strengthening Brand Equity and customer Loyalty

Lifestyle

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AREA FOCUS 24

Lifestyle

.01

SECURING THE TOP 20 STORES

Lifestyle

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The FFA approach evolved after several rounds of meetings and analyses aimed at increasing overall profitability. The immediate imperative of FFA 1 was to secure the top 20 stores that delivered one-half of the top line and two-thirds of the bottom-line. These stores were the torchbearers of the brand with consumers as well as with brand partners and developers.

CASE FOR CHANGE

stepping in roughly 6 times a year, was likely to see the same displays over several visits. This pushed up the fatigue factor

1.1 Static look and feel in-store

and discouraged repeat-visits. The problem

The look and feel of Lifestye stores across

was compounded with competing online

the country – including store windows and

fashion entities refreshing their virtual

in-store display clusters – even in the top

displays frequently. The other issue around

20 stores were being changed only about

freshness was that the brand’s uniformity

3 times a year. So a typical loyal customer

code did not leave room for regional

102% was the target

achieved in EW during the 2019 festive perod with 13% LFL growth

nuances and festivals to be captured in the displays which was a sellng-point for several brands.

The fatigue factor extended to shelves as well as with goods being stocked across 3-4 months. This often cost the store heavily as the customer would wait for EOSS to get at the goods on display for the previous 2-4 months at a discounted price.

1.2 Availability issue with merchandize Often even the products promoted were not available in several stores across the country. The NPS data generated indicated that availability of stocks was a big issue across designs; as also in the varieties in categories. Sizes were another stumbling block.

This pain-point was particularly felt in the Top 20 since the footfalls here were higher.

Ready availability would automatically push up sales. This was a high-criticality area.

1.2 The missing ‘something more’ To enable the Top 20 to maintain their position and cut the clutter among

Lifestyle

27

competition, there needed to be that extra something on offer. While the stores were contributing the mega chunk of business, there was scope to enhance business by engaging more with the bigger footfall.

PLAN AND IMPLEMENTATION Store experience upgrade: Display windows, which were the face of the store, were enhanced and changed every week. Instead of showcasing only global trends, regional trends were included and popularised. Festive clothing for Pujo in the east, Onam in the south or Navratri in the west were introduced. The festive and regional push was amplified by bringing in bloggers to talk about the time-bound collections on their platforms. Local celebrities too were invited for in-store

larger-than-life representations of the latest

Online & offline connect: The top 20

promotions.

collections and fashion interpretations.

stores were the first to establish a seamless

Inside the stores, ‘heightened trend zones’

Technology upgrade: Technology was

experiences for the consumer. Design

were created – these were mannequin

upgraded to incorporate LED screens with

elements and merchandize display patterns

clusters in high-impact areas that created

content playing round-the-clock and

online were reflected on-ground to create a

interesting islands for the customers to see

in-section displays of stores were refreshed.

holistic brand appeal.

connection between the online and offline

28

Lifestyle

FFA 1 and Womenswear The extensive in-store exercise to reduce non-profitable areas netted tangible results. Here are some notable points: a) Womenswear in private labels and external brands, saw significant leaps. This was largely attributed to the expansion of Fab Alley, J 21 and Cover Story; rationalising of the area allocated for Ginger and the Denim zone; and increased focus on the Dress category. b) During the 45-day festive period, the APL team ensured least cut sizes of fast movers, and helped deliver Rs 100 Cr in October 2019 – this translated to 102% budget achievement with 13% LFL growth. c) The ‘monthly drops’ of fast fashion under Ginger Runway helped establish a connect with younger customers with the right trend and freshness. d) EW brands business improved from 2.5% PBT to 6.8% within 7 months with the introduction of the right product mixes and brands.

to remove bottlenecks and ensure that merchandize availability was maintained in the Top 20. (Read more about these tools in later chapters.) This aim was further met by the consolidation of top-seller brands, which were allocated more space.

Low-selling brands were discontinued. This enabled the conversion of more customers in quality areas, directly affecting PBT. Novelty fashion freshness: ‘Flash representations’ that included limited editions and runway collections were introduced to bring in exclusive design lines at the Top 20. The ‘Star Wars’ collection was one such trial effort that performed well. External brands too were encouraged to introduce limited editions to increase overall profitability – as Levi’s did with the ‘Stranger Things’ exclusive collection. This approach also enhanced freshness.

Stock-turnover enhanced: The all-

Merchandize availability: It was ensured

important issue of stock-turnover

that both private label and external brand

Campaign events such as ‘Dress for an

was addressed on a war-footing. No

items reached the top 20 stores within 24

Occasion’ were hosted in February 2019;

merchandize more than 60-days was

hours of arrival at distribution centres. An

March of the same year saw an event

allowed to sit on shelves. The back-end

enormous level of planning and systems

called ‘Colours’ where the entire store

was built up to ensure there were no

optimisation, including incorporating the

was coordinated to a colour theme. These

bottlenecks to new stock availability.

latest software, was initiated at all levels

processes resonated well with customers.

Lifestyle

29

AREA FOCUS 30

Lifestyle

.02

2

DELIVERING STORE-BRAND PROFITABILITY

Lifestyle

31

22% of the total

store area was reflecting

48% of the losses

32

Lifestyle

This implies the under performance of individual brands within specific stores.

The exercise to map individual brand profitability within a store and evolve systems to better their performance – even in profitable stores - thereby increasing store profit margins, was what the FFA focused on.

CASE FOR CHANGE

profitability in particular categories across a concept that was doing well in the store.

1.1 Low-performing brands in stores

This was another specific issue identified.

Upon analysis of the figures in the last

For instance, the menswear concept may

quarter of 2018, it was discovered that as

be performing well in the store but a few

much as one-third of the area in profitable

brands may be under-performing in the

stores was making losses. For instance, a

category, bringing down the category

100,000 sq. ft./45,000 sq. ft. store with an

profitability from achieving potential.

overall high profitability may only be making profit on an area of 65,000-67,000 sq.ft

1.3 Underrepresentation of brands

/30-32,000 sq. ft while incurring losses

In certain stores, within a successful

on the remaining 33,000/15,000 sq. ft.

concept, there was a lack of variety and

due to low-performing brands. Basically, in

choice, which led to the need for bringing in

such stores, large areas allocated to non-

fresh brands.

performing brands were decreasing their overall store-brand profitability.

1.4 Brand visibility Another area that came up was that

In fact the figures revealed a startling fact:

sometimes there was a new and sought-

22% of the total store area was reflecting

after brand coming in with low visibility.

48% of the losses. This was a clear call to

This had to be offset by a high-visibility

relook the spaces allotted to brands. The

brand to keep the balance of store-brand

fact that they were profitable stores overall,

profitability.

meant that the real estate or overheads were not the cause of loss.

1.5 Store & customer profile mismatch The catchment profile or customer profile

1.2 Low-performing categories

needed to be matched to the merchandize

Certain external brands were seen as

stocked. This was not happening. This

low-performing due to the lack of sales/

when, often, there is a difference between

Lifestyle

33

customer profiles even in localities within a city – for instance, in Bangalore, the profile of the customer visiting a Koramangala store may be different from that in Yelahanka. These nuances had to be reflected in the brands and categories.

PLAN AND IMPLEMENTATION Some brands were taken off shelves: Monthly reports for each store under headers of brands and concepts were generated. Loss making brands were tallied against the space allocated to them and a plan initiated either to remove or replace them from across the retail chain – for example, Chromozome and VH in the men’s innerwear category were removed in order to replace them with performing brands.

Performing brands given more space: Profitable brands in stores were offered more space which they were happy to avail and pay the higher premiums applicable.

This improved store brand profitability significantly.

34

Lifestyle

Performing brands were given higher in-store visibility

suffering due to poor service to customers.

Benefits Realised

Trained manpower was enabled to improve the performance of such brands.

The ‘category-first’ approach adopted: Earlier the focus was more on ‘brand first’.

As a result of the policies of the FFA2 approach, in a matter of months, there was a drop from a loss of 33% to 2-3% towards the 4th quarter of 2019.

Under FFA 2, it was ‘category first’. Category traction was assessed first. Basically, the category that was relatively more in demand in a particular store was taken into focus first, and brands offering more or better in the category were given priority.

Emphasis on regional brands: If a brand was to be replaced within a store, the

Merchandize mix matched to customer:

retail team was asked to identify a better-

Each store had to go through the process

performing brand which may be a regional

of identifying consumer behaviour relevant

brand. The store team had to:

to the area the store was located in, the

 Screen the proposed regional brand to

demographics, and only then decide the

meet the profile, market standing and price

product mix on offer.

point of Lifestyle.  Check alignment of the proposed brand

Price-performance analysis applied to

with the Lifestyle customer base and their

brand & category: Price sensitivity was

shopping habits.

gauged through external research. A new

 Ensure distinct style identity to set it

sequence was followed in stores: first there

apart from Lifestyle brands.

was category assessment, followed by application of the price sensitivity findings,

Manpower for servicing brands: In certain

and only then were the brands to be

cases, it was found that the brand was

featured in the store decided.

Lifestyle

35

AREA FOCUS 36

Lifestyle

.03

3

Fresh Fashion and Availability

Lifestyle

37

38

Lifestyle

A loyal customer visits a Lifestyle store 6-7 times a year but stock turnover was happening 3 times at best.

The customer ended up seeing the same merchandize multiple times, triggering fatigue. Along with this, the related matter of availability of desired stock or sizes was another issue. These related issues were to be addressed through FFA 3.

The core promise at Lifestyle is not

every 3 months, the sell-through happened

only to provide great services, but also to

only in 5 months. This was primarily

offer customers freshness, variety and

because of the fatigue factor of the same

availability of what they are looking for. In

goods being on shelves for long, and the

short, Lifestyle is about fashion needs and

customer not being engaged with fresh

indulgence. Freshness is key to fulfil this

fashion. A worrying natural fall-out was

need. Customers do not always walk into

that the business became highly dependent

the store seeking discounts.

on EOSS.

CASE FOR CHANGE

On the other hand, at this time, fast-fashion brands such as Zara and H&M were delivering between 6-10 stock-turns a year,

1.1 Turnover of fresh fashion

attracting most customers. Being on trend

While stock replenishments happened

is afterall the core of business of fashion.

Lifestyle

39

1.2 Category freshness The lack of availability of product variety

PLAN AND IMPLEMENTATION

within a category too meant the loss of potential sales. Customers looking for a

Only goods on shelves for less than

product type rarely opt to purchase an

60 days were deemed ‘fresh’: The

unrelated item, despite a greater choice

plan was to keep the category approach

in the other category. For instance, if a

and seasonality in focus while sourcing,

customer is set on picking up T-shirts

purchasing, merchandising and creating

for summer, he or she is unlikely to be

the planogram. And during season, new

persuaded to pick up shorts and dresses.

options needed to be provided for every category drop.

1.3 Size availability Required sizes of merchandize

All functions were aligned: A calendar

on display may not be available at

encompassing all stores was created to

the store or warehouse – creating

align merchandising, retail, purchasing, VM

customer disgruntlement.

display, colour palettes and promotions for a 60-day periodicity.

1.4 Pressure at EOSS Since turnover of fresh fashion was slow,

Fresh fashion every week: Store windows

most customers would wait for EOSS to

and display clusters were refreshed weekly

get at the merchandize at a lower cost.

and communicated through marketing

Typically, a regular customer understood

channels. Fortnightly planograms ensured

that the products they had earmarked

the process was followed. Periodical

would be available a couple of months later

liquidation of slow-sellers on an ongoing

and at a cheaper price so they avoided

basis too was introduced.

purchasing pre EOSS. This in turn, put high

40

pressure on EOSS to achieve a high sell-

Size availability ensured: This was

through - and at lowered costs.

achieved by shifting products from low-

Lifestyle

footfall to high-footfall stores to ensure

Software to facilitate the process: This

unbroken size sets. This particular function

included Kanvas, a visual analytics software,

was earlier controlled from Bangalore but

that helped the planning, buying and front-

under the FFA approach, four regional

end retail teams to collate, analyse and

controllers were set up, allowing for more

collaborate effortlessly; and a platform tool,

flexibility and faster decision-making.

BOARD, to build the basis data of planning and merchandising functions.

Early season launch: The season launch was advanced by a month to improve the pre

Changes in the team structure: Earlier the

EOSS sell-through and to reduce the sell-

Planning and Merchandising teams were

through burden during EOSS.

clubbed and operated centrally. To ensure agility in decision-making on store floors,

Category-first approach: To address the

Merchandising was attached with regional

problem of lack of freshness and variety in

teams. The teams were to focus on allocation

categories, the stocking of merchandize

of merchandize as per store matrix, periodical

was decided first by category demands. The

consolidation of merchandize and so on.

brands to be featured in stores were decided

The Planning department was to focus on

by their stock of the categories in demand in

upcoming seasons with supportive analysis

the particular store.

for decision-making, increasing private label share and so on.

‘Category-first’ and external brands: All

The category-first approach serviced customers optimally

stakeholders too were brought under the

System to ensure higher sell-through pre-

purview of the store/category/brand review

EOSS: The target was to achieve 60-65% pre

to ensure that customers seeking fresh

EOSS sell-through. Weekly analysis grouped

fashion and variety in category were not

options under ‘good’, ‘average’ and ‘poor’

disappointed. Way-ahead strategies for non-

– basis the sell-through achievement. The

performing brands in this matrix were altered

‘average’ and ‘poor’ options were put out on

where required.

periodical discount in season prior to EOSS.

Lifestyle

41

AREA FOCUS 42

Lifestyle

.04

4

Concern Stores and New Stores Turnaround

Lifestyle

43

As the plans for rebooting Lifestyle in India were being formulated, it was inevitable that the matter of a section of stores not doing well come up. Why this was so in a brand that was doing well overall — was what FFA 4 sought to examine and rectify with new systems in place.

44

Lifestyle

CASE FOR CHANGE

regardless of store space or productivity.

In smaller stores, this pushed up spends,

1.1 Number of ‘tail stores’ at a high

pulling down profitability.

In the early years of Lifestyle in India, store-profitability was at an all-time high

1.4 Outlay in real estate

and 90% of the stores were classified as

Some of the concern-stores revealed

‘high-performing’. However, as it expanded

an imbalance in the space to potential

into suburbs and tier 2 cities, productivity in

profit ratio. Some stores with relatively

some of the stores started stagnating and

low footfall, for instance, were found to be

profitability dropped significantly. Towards

occupying large spaces, adding to their

the end of 2018, more than 23 stores out

spends in real estate, affecting overall

of 80, were making marginal profits or

profits. This was a glaring issue that was

accruing losses.

crying for attention.

1.2 Merchandize stocking strategy The strategy of using a uniform policy or yardstick to decide merchandize stocking

16 out of 23

stores doing poorly were turned around in less than a year with the FFA approach

PLAN AND IMPLEMENTATION

at all stores across a large region or even nationwide, without taking into account

Non-performing stores were shut down:

consumer behaviour at a micro level, was

Factors which may have added to the

no longer working and was a key factor in

non-profitability of a store and which were

pulling down productivity in certain stores.

possible to rectify with changed policy, were

In some other stores even loss-making

examined thoroughly. Once that exercise

brands were allowed to continue due to lack

was done, it was decided that stores where

of alternatives.

projected recovery was not possible, were to be shut down. So, for the first time in the

1.3 Manpower allocation in-store

history of the company six stores were to

Resource was allocated brand-wise,

be closed down.

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Performing brands were given higher store visibility

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Lifestyle

Benefits Realised The FFA 4 approach helped turn around the situation significantly. With the encouraging results in the bottom line, the system was applied to six additional stores to better profitability.

By the 3rd quarter of the plan implementation, numbers began to improve. In less than a year, out of the 20-23 stores in focus, 16 were turned around.

The FFA 4 approach is now being extended to the ‘bottom’ brands or those performing poorly in the B stores as well, thereby further improving store profitability.

The ‘floor staff manning mode’, that reduced staff on floors was also deemed an appropriate way forward post the pandemic due to restrictions imposed by the municipality in several areas.

Change of strategy: The presence

of manpower too was undertaken. The

of regional brands in concern-stores

process was initiated in five stores as a test

were systematically strengthened to

activity. Manpower optimisation included

engage better with the consumer. The

several new approaches like the “floor staff”

one-size-fits-all approach trickling down

manning model for ‘C’ stores. For instance,

from the city centres was sought to be

if the menswear section was adjacent to

changed. Categories with appropriate

the footwear section, the personnel were

price points with higher traction were

trained for both areas. Since in the concern-

expanded – categories with no traction

stores, footfall was anyway relatively low,

were discontinued. More value price points

the system was effective. So typically, in

were introduced. Popular online brands

such a store where 15 employees were

such as Fab Alley, Indya and WRNOG were

manning a single area earlier, with this

introduced. Loss-making brands in stores

system, 10-11 employees sufficed to

were weeded out.

manage both areas. The net result was a direct cut of manpower and more money

Brand mixes allocation redefined: So

saved to bridge the bottom line.

far, the brand mixes per store was decided according to regions. But what works at a

Downsizing of real estate: Store area with

store in Koramanagala may not work in a

relatively low footfall was surrendered to

Yelahanka store – though it fell in the same

the developers. For example, in a 35,000 sq.

region. So, basis relevant analysis and focus

ft. store, as much as 7,000 sq. ft. area was

on regional stores, mixes were decided as

given up in consultation with the developer,

per local customer profiling.

and rentals re-negotiated. Developers with a keen eye on future business agreed to

Manpower optimisation: Instead of

the proposal and lowered rents, helping

deciding the number of staff per brand,

to cut brand spends. Several developers

resources were allocated per floor and

also helped promote the stores in the local

selling-space productivity therein. Training

catchment areas through BTL activities.

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AREA FOCUS 48

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5

Strengthening LS Brand Equity and Loyalty

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49

This area of focus had to come into play after the earlier aspects of planning were already underway and showing results. For instance, FFA 4 (Fresh Fashion and Availability) had to be ensured before any activation could be done to strengthen brand equity or boost loyalty. But once all else was on track, the matter of strengthening brand equity and loyalty became critical to ensure consolidating the gains of the FFA system.

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CASE FOR CHANGE

1.3 Poor in-store customer engagement There was no hands-on customer

1.1 Pain points needed to be identified:

engagement in stores – the point of

The overall Net Promoter Score (NPS)

interaction happened only at the end of the

score across stores was plummeting.

customer visit when he or she was paying

The NPS of each store is the comparative

for goods selected for purchase.

percentage of benefactors against detractors and is a clear indicator of the

1.4 Lack of fresh fashion

equity and loyalty enjoyed by a brand.

A customer walking in frequently would invariably see the same displays and stock

1.2 Loss of differentiator edge

3-4 times - this hit brand loyalty severely.

Into the 3rd quarter of 2018, it was observed that the increasing clutter in the market was taking away from the brand’s differentiator edge. For example, if a

PLAN AND IMPLEMENTATION

consumer were to shop at Lifestyle vis a vis another department store, 70-80% of the

Pushing up the Net Promoter Score:

merchandize would overlap. Lifestyle and

An analysis was undertaken to identify the

the other department store were also likely

areas which had the maximum detractors,

to be similar in general layout and size.

and aggressive customer service

There was hardly any novelty in shopping

enhancement and systematic fresh fashion

in a Lifestyle store.

communication plans were set in motion.

The initiatives caused the NPS score to

1.2 Lack of regional connect

rise from 32 in September 2019 to 51 by

In a competitive environment with the

January 2020 and 53 by February.

increasing entry of global players, as well as aggressive competition from local players,

Quick movement at cash counters:

the brand needed to relook strategy.

One of the key problems was the long

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wait-times at cash counters during high

which enabled them to easily access and

way. An initiative called Vision Smiles

footfall time between 5-8 PM. To rectify the

process feedback for the day and the week

helped document and develop a culture of

situation, more personnel were assigned to

more efficiently.

such narratives. For example, a customer

cash counters during the time. A concept

in Hyderabad gave Lifestyle a rating of 2 on

called the ‘All-cashiering model’ too was

Empowering the business manager:

the NPS scale because the lipstick she had

introduced. This meant, there were to be

Earlier, the buying teams would decide what

purchased was chipped. In response to

no ‘dedicated cashiers’ anymore. All store

products to push to stores, even though the

this, the store manager procured her

personnel were to be enabled to work at the

business manager, by virtue of managing

address and sent her a replacement that

billing counter as and when required. This

operations on ground locally, would have

assured her loyalty. In Delhi, a customer

helped remove bottlenecks at the counters.

more insight into what product mixes work

wanted to replace a product but she lived

better in his store. The managers were in Uniformity of promotions: Another area

a position to improve performance of the

where the NPS score took a beating was in

store and brand/s – provided the needs

the perceived complexity of promotions.

of the local customer and market could

Often, a customer would arrive at the

be formally assessed, and merchandize

billing counter with what he or she had

allocation influenced by them. As part of the

assumed was a discounted product only to

FFA 5 approach, various initiatives were put

be informed he/she had misinterpreted the

in place to improve the empowerment of

promo. This resulted in longer queues

the business managers.

and customer disgruntlement. Promos were simplified and made uniform.

Soft skills of business managers:

This simple step helped smoothen out

Detractor issues were usually processed

things considerably.

through a call centre but from October 2019, under the FFA 5 plan, the store

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Real-time visibility of detractions: The

business managers began calling the

brand moved to a platform called ‘One

customers themselves, understanding

Direct’ that enabled real-time feedback. All

pain-points and ensuring that grievances

store managers were provided with the app

were taken care of in a far more qualitative

Lifestyle

The Loyal Customer Brand loyalty is not built up overnight but is a critical aspect that a brand needs to focus on to ensure sustainable profitability. This was the key realisation that the FFA 5 hinged on. The policies of FFA 5 continue to bring in dividends.

too far away from the store. The store manager delivered the product to her on the same day through an employee who lived in the area.

CRM LS EDGE programme: An incentivebased programme for consumers, LS EDGE, was introduced as a differentiator with far-reaching consequences. Under LS EDGE, a host of privileges was provided to consumers for just Rs. 499 a year.

These benefits included a 15-20% discount during birthday-months sponsored by brands; free parking; and home-delivery of altered garments (waiting time being a sore point with customers). The programme became a runaway success: From quarter 1 to 3, enrolments to the programme shot up from 10,000 to 75,000.

As a fall out, the MVC (Most Valuable Customer) turnover reduced. While the total customer enrolments reduced, the MVC segment increased.

Building a regional connect: A regionbased customer service and connect

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plan was implemented. An LS instore app was also made possible to connect with customers on a regional basis.

Enhanced customer engagement: This was addressed internally and externally.

From an organizational standpoint, the focus was to have adequate systems and processes to monitor customer feedback and sync it to an upgraded MPS. From a consumer viewpoint, the focus was on better engagement, how to increase footfall and revive old customers and attract peripheral customers.

Internally, a system that involved everyone at all levels in the Integrated Go-To Market (IGTM) approach was created. This was also to ensure process-driven discipline.

Other measures that were taken under this scheme was to own categories with

Performing brands were given higher in-store visibility

specific approaches. For example, for Valentine’s Day an occasion was created called ‘Dress for a Date’ that created a focus point of engagement for customers. The Buddy app, a virtual shopping assistant, helped consumers navigate, choose and

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redeem rewards. Downloading of the app

him/her on the shopping journey to the

disseminated to the consumer base more

was incentivised with offers. The app also

point of transaction.

effectively. This also helped offset the issue

helped connect with the customer on a regional basis.

of online companies being able to change Freshness in fashion: One of the key

their displays with rapid frequency.

parameters addressed was freshness in Changing from M.G.D TO G.E.T: The

fashion not just in stock availability but

Instagram to Planogram: One of the ways

philosophy of M.G.D (Meet. Greet.

also in the look and feel of the store to

this was achieved was through the Buddy

Direct) was replaced by G.E.T (Greet.

encourage repeat visits and prevent the

app. When a customer keen to purchase

Engage. Transact). Instead of greeting the

tendency of consumers waiting for end of

an outfit as shown in instagram, opens the

customers and directing them only when

season sales where they know they would

Buddy app in the store, the Style Bot, on

requested for help, the new system had the

get the same merchandize discounted.

it, through AI, recommends the complete

floor personnel engaging with the customer

Store windows and other displays were

look put together from different brands.

to gauge his/her tastes and accompany

changed weekly and communication was

The customer can simply pick up what she wants without having to wade through a lot of merchandize she may not be interested in. Also part of the system was to enable the checking for availability of products in the store at the time of shopping. In case the product was unavailable, the app facilitated online viewing of the same at the online store where it was likely to be available.

The next step was to enable seamless tech enabled Omni channel shopping through Whatsapp, Search and Social Media with collaborations on and off line – to address safety and delivery concerns of the customer in the post-Covid environment.

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The Online FFA Approach Covered The Following Aspects

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SECURE LMR Customer Base First

Drive Profitability of Top Categories

The first priority was to secure the

Overall profitability was not the sole

LMR base, strenghten it and woo it to

benchmark. Focus was to ensure all

get on to the online platform as well.

categories were profitable.

Marketplace Turnaround

Fresh Fashion 24x7 Online

Build Loyalty Through the App

Scoring against competition no longer

The online fashion presentation was

The app-users were the core loyalists

sufficed. Lifestyle was to bring about a

to keep pace with the offline, and also

so strategy was to be evolved and

change in the marketplace.

ensure availability of fresh fashion.

followed to enhance this base.

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P LAN BUSINESS THE

PIVOTING the FFA APPROACH ONLINE

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Even as the Five Focus Area (FFA) approach was securing dividends on the offline brickand-mortar entity, the online platform was emerging as a concern area. Marketplace players were serious competition.

But at the same time, there were opportunities that could be leveraged.

Therefore, pivoting the FFA approach online – with required drivers to align the model to online business dynamics – was the need of the hour.

The Five Focus Areas initiative to impact the online platform were identified as the following:  Secure LMR Customer Base First  Drive Profitability of Top Categories  Marketplace Turnaround  Fresh Fashion 24x7 Online  Bring Loyalty Through the App

LMR First Approach This approach was aimed at securing the customers in the LMR base which contributes to over 70% of the online business. Offline consumers were sought to be brought online through tele-calling by store staff. Several benefits were added to woo the top customers to shop online. These included special banner offers, segmented offers at POS, a chance to avail size variety via the Buddy app and extension of EDGE benefits online to LMR customers.

Also, the dormant LMR base was targeted through SMS. The Home Centre online customer base too was targeted under the initiatives for online-users. There was a concerted effort to retain customers, woo them

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to make Lifestyle online a habit, and build advocacy. The Omni-channel customer was encouraged to tap online through promotional activities via SMS, Whatsapp and email.

Another focus area of this initiative for the online platform was to reactivate the online potential ‘winback base’. Patterns of browsing or shopping online were tracked to engage with the ‘winback’ consumer on his/her favourite platform.

Drive Profitability of Top Categories In 2018-19, Lifestyle was ahead of its main competition in the top 7 categories of online sales - LS.com figures were Rs. 12.7Cr whereas Myntra figures were at Rs. 9Cr. In the next 10 categories too, LS.com was at Rs. 5.7Cr and Myntra at Rs. 4.2Cr. But it was clear that Lifestyle profitability could be significantly improved by focussing energies on the top 7 categories and deep-diving into category profitability at GMC levels.

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Fresh impetus and systems were

measures, including influencer marketing

Availability of top-sellers of NSM

introduced, including daily stand-up

and other promotional activities.

(new season merchandize) was

reviews with the core-team. Systems were overhauled to ensure regular review reports (daily, weekly and monthly) were generated to allow for thorough analysis which would

another area of focus with fortnightly

Marketplace Turnaround

replenishments. Marketing spends were aligned and increased to generate the right profile in traffic.

lead to sharpening of micro activities to push the top categories through a host of

Simplify e-com Online platforms must appear an attractive proposition and provide ease of operation. This is particularly relevant for the conversion of conservative shoppers — a large percentage of who have been found to change brand loyalty for ease of operating the app or ecom site.

Scoring against competition no longer

As with the offline business, online too,

sufficed. Lifestyle’s foray into the

reviews were of paramount importance

marketplace was to gain penetration and

with analysis of monthly reports of figures

profitable growth. It was seen that Myntra

from competition, and alignment of sales

was marginally profitable while Flipkart

targets and profitability targets with those

was delivering negative PBT mainly on

of competition online.

account of mismatch in the offerings vs the demand. Overall, the marketplace potential to be tapped.

Fresh Fashion 24X7 ONLINE

A host of steps were planned and put

This was a significant initiative offline - both

into action with projections for 2021 as

in the area of display and merchandize in

well. These included creating a co-owned

stock at Lifestyle stores. Online, the criticality

business plan for FY21, focusing on fresh

of ‘fresh fashion’ was especially significant

and full price sales, and weekly review of

as online-only players, with no outlay on

plans and incorporating learnings regularly.

maintaining physical stores, were able to

Ensuring the right merchandize mix for

pour in more resources to pump up their

online viewers was seen as high criticality

presence. Also, with only digital promotions

– keeping in mind seasonality, concepts,

required, they were in a position to update

brands, categories and sub-categories.

their merchandize with rapid frequency.

under-delivered for Lifestyle leaving much

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Under this approach, the first step actioned

presentations online were sought to be re-

was to formulate season-launch and promo

created and interpreted such that an online

calendars in tandem with the offline. Online

savvy customer stepping into a Lifestyle

was to go live with fresh merchandize

store would not experience a disconnect

along with the stores: 96% private label

between his/her experience of the brand

merchandize to go live on day 1; followed by

between the platforms.

85% external brands by day 3.

The other impactful step was that of the On the website, fresh campaigns were to

Business Intelligence dashboard being put

be put up twice weekly (barring the months

in place to ensure real-time monitoring.

when End Of Season Sales were on). Banners and tiles were to be refreshed twice weekly. put in place for customers who bought NSM.

BUILD LOYALTY THROUGH THE APP

Other measures under this focus area

Analysis and research undertaken amongst

included: Replenishment of top-sellers

online consumers prior to the launch of the

through reviews every 15 days; SVI (single

FFA approach underlined the stickiness

view of inventory) implementation through

of users of brand apps. The app-user

A+ stores, which were intended to increase

makes a conscious choice to download the

availability of NSM - SVI live on all 28 top

particular brand app. It was therefore vital

stores - 100% order fulfilment; removal

that more consumers be wooed to use the

of old season merchandize within 10 days

app; the brand also needed to ensure the

from launch of new season products.

continued loyalty of the consumer who was

Systematic communication protocols were

already on the app.

Another move was to ensure a seamless

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merging of offline and online flow of

The strategy was devised to make the app

fashion. Elements, designs, merchandize

offer better solutions. The steps included:

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www.no bags jus

promotion of the 42‑week Omni calendar;

ags justcarts.com

specific category promotions twice a month and weekend sale campaigns every month; and a couple of marquee events in the year. In order to increase downloads and enhance repeat-customer conversions, push services, emails and SMS notifications too were part of the plan.

Online & the ‘new-normal’ Retail therapy, by definition, was driven by brick-andmortar entities - well appointed showrooms. These provided the much sought-after real look and feel of merchandize. Plus, spacious showrooms satisfied the need for the ‘shopping experience’. Much as eating at a restaurant was always more than just about the food, visiting a showroom was much more than about buying the products. However, the pandemic put brakes to this, and posed a new challenge to online shopping platforms — such platforms had to redefine their strategy to fulfil what was traditionally being provided by offline platforms. This is where the well-structured and thought-through Five Focus Area online approach scores and is all set to be interpreted as required through the forseeable future of Lifestyle in the country.

Other steps included campaigns to enable prospecting, re-targeting and re-marketing to generate new and repeat-customers.

Part of the daily measures were to generate sessions from SEO, direct, social, push and referral platforms.

INITIAL RESULTS: The FFA online approach which got rolled out for the year 2020-21, had already started yielding results during May and June 2020 across most metrics.

In the post pandemic scenario, the stage was set for a ‘new normal’ where online shopping was poised to take a big leap. In this situation, pivoting the FFA approach online was indeed the right step taken at the right time.

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P LAN BUSINESS THE

Outcome of the FFA approach: At a glance

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With the application of the FFA approach, the NPS score of Lifestyle India shot up from 24% to 46% between the last quarter of 2018 (when the FFA approach was discussed) and August 2019. By Feb-Mar’20 the NPS score shot up higher.

FFA 1 OUTCOME - FOR TOP 20 STORES Scenario in 2018-2019

Scenario In Oct’19 To Feb’20 LFL

NOT growth

(-3.9%)

NOT growth

% PBT growth

(-1.4%)

% PBT growth

+4.6% +1.2%

Walk-in growth

(-3.5%)

Walk-in growth

+5.8%

FFA 2 OUTCOME - Brand Profitability Scenario in 2018-2019 23% Topline T.O contributing to (-50%) Bottom line PBT Loss

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YTD Feb’20 PBT loss contribution brought down by half to 26%

FFA 3 OUTCOME - Sell Through Scenario in AW18

Scenario In AW19

Pre-EOSS Sell Through

Brand:

41.4%

Brand:

40.5%

Private Label: 57.4%

Private Label:

51.9%

Delivery Improved to 93.9%

Hit-wise delivery: 85.6%

FFA 4 OUTCOME - Concern Stores Scenario in 2018-2019

Oct’19 to Feb’20

6 LFL stores below break-even

5 LFL <BE

11 New/NLFL stores below break-even

4 New/NLFL <BE

Total 17 stores below break-even

Only 9 Stores below break even 8 Stores Turned Around

FFA 5 OUTCOME - Brand Equity and Loyalty Scenario in 2018-2019

Oct’19 to Feb’20

LFL Walk-in growth (-6%)

LFL Walk in +4.3%

LFL Sales growth (-2.8%)

LFL Sales +3.7%

CRM Green member Value Churn 42%

Green Member Regain by +2.5%

Market share decline by (-2%)

Market share regain by +1%

P LAN BUSINESS THE

BUSINESS BEYOND THE PANDEMIC

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The pandemic and lockdown brought business to a grinding halt.

When work resumed, there was a change in customer expectations and mind-set. In response, the business dynamics too underwent radical change that was to impact the years to come...

Safe shopping environment

the loyalty and trust they enjoyed with

all merchandize that was going out for trial -

customers by assuring them that all stops

whether it was sunglasses or watches - was

were being pulled out to ensure their safety.

to be sanitised. External brands too had to

An aspect that was acknowledged to have

adhere to hygiene requirements strictly.

forever changed, even in the initial days

Stores were made safer, and this was

post the lockdown, was the approach

communicated through different channels.

to safety in the shopping environment.

Measures taken included contactless

Hygiene and sanitisation of personnel and

payments, paperless invoices and sharing

stores respectively were top priority –

of charge slips only on SMS. Detailed safety

almost like a mission statement. Lifestyle

precautions were taken by the staff; social

On ground, post the lockdown, the buying

as a brand felt the need to underscore

distancing within the store was a must; and

trend of customers was predicted early

Changed consumer mind-set

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on to tilt towards functionality and basics.

There was a significant drop in offline

Another aspect that emerged out of

Soon after the lockdown was lifted, it was

business in stores but Lifestyle

the situation, was the need to focus on

noticed that casual wear was taking a front

being a strong brand was expected,

multi-channel shopping avenues keeping

seat, with formal wear being relegated to

even in the early days post-lockdown,

in mind the changes in shopping patterns -

the background. Track pants for instance,

to emerge successful once the market

triggered by health fears following

was doing better business than jeans. The

rebound happened in the near future.

the outbreak - that were here to stay.

projection was that weddings, festivals and

For the short-term however, after

Assisted shopping through video calling

the winter season would be key triggers for

careful deliberations, the cost structure

facilities, Whatsapp based shopping,

shopping so the marketing calendar was

was optimised in light of subdued

adoption of Google local inventory

aligned accordingly.

consumption patterns.

and modules for hyper local delivery and

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product-mix change

THE ROAD ahead

Omni-channel capabilities too were

The pandemic was understood to have

With its strong credentials and initiatives

strengthened.

reinforced basic values, values ‘with heart’ –

mentioned above, even in the months

this idea permeated into all aspects of life,

following the lifting of the lockdown, it was

including fashion. So, sustainability, ethical

estimated that the brand would consolidate

fashion, durability and utility emerged as a

business within the year, and move ahead

strong parallel driver for Lifestyle. The brand

from the short-term turbulence to execute

had already tied up with an organization

the long term strategy - albeit keeping the

In order to offset the dip in offline

called the Better Cotton Initiative (BCI)

new customer expectations in perspective.

business, contribution of private labels

which facilitates ethical sourcing of organic

or in-house Lifestyle brands - both online

cotton. Post the lockdown, the brand also

Also, it was observed that the customer

and offline - became more critical to

explored collaborations with mills for anti-

response at Stand Alone Stores (SAS)

ensure growth.

microbial finish and skin-friendly finishes.

post-pandemic was significantly better

so on were experimented with and successful options adopted.

Emphasis on in-house brands

than in mall stores due to the ‘trust’ factor.

This was more marked in Tier 2 markets.

This underscored the need to develop and

Stand-alone stores naturally scored over those located in more crowded malls.

This was therefore to be a focus area going ahead, after the pandemic.

establish the SAS network for which there was a market study undertaken earlier in December 2019. So, along with consolidating its presence in malls with multi-brand formats, the brand hoped to strengthen the private label portfolio and push expansion in Tier 2 cities through the SAS model. These approaches would push up Top Line growth and profitability in the medium to long term.

Post the pandemic was felt to be the right time to fast-forward such initiatives.

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Rishi Vasudev CEO, Lifestyle, who took over the reins from Vasanth Kumar, interpreted the FFA approach in the light of the pandemic and arrived at a fourpronged approach to ensure that Lifestyle is able to reach its potential and soar even higher

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Way ahead: The four-pillar approach The pandemic catapulted the company

The first pillar was to be Innovation. The

ways of connecting with consumers.

on to a learning track to understand the

unprecedented health crisis shook the

Consumer behaviour was changing and

emerging normal, and devise operating

world and business houses across the

new retail cost structures were emerging.

ways which would make Lifestyle and Home

globe, and created what is referred to as

Centre continue to retain past glory.

the ‘new normal’.

In such a scenario, it was critical that innovation come into sharp focus and

More Innovation: need of the hour

So the need of the hour was that

be top priority. An Innovation Cell was

employees were required to go beyond

started keeping this in view. This pushed

what they had been doing and define new

employees to look at alternate sales

ways of doing things: operating more

channels. All the employees were given

What was arrived at as a possible action

efficiently; looking at newer categories,

the opportunity to try new things with

plan was defined in four pillars.

brands, formats; and evolving fresh digital

room for failure, should there be any.

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Greater Speed: To grab emerging opportunity The second pillar was Speed. It was felt that much energy and time was being consumed in doing a few things – too many checks and balances had emerged.

Post the pandemic, no company had the luxury of time. Things had to move fast, lost ground had to be acquired and the business taken forward. Also, to be able to innovate, speed was of the essence. In order to grab emerging opportunities in the market, the company needed to be on fast track.

Emphasis on Digital: Impact across functions It was felt that emphasis on digital capabilities – a part of the FFA approach - to harness Omni channel capabilities should be the third pillar of action. How the digital world was emerging and the business responses needed to adapt was a learning relevant for everyone in the company.

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Product development, for instance, would

design approach – it did not suffice to think

need to take into account the online

of large warehouses in big cities. The answer

customer as well as the traditional offline

it was felt, may lie in designing smaller

consumer; pricing too had to be arrived

warehouses across many cities.

at keeping both channels in view. Even the warehouse person was no longer largely handling shipments to the store – he was handling bulk shipments to the consumer directly. This, in turn affected the warehouse

Develop Partnerships: To do more with less The fourth pillar that was arrived at was the greater need for partnerships. The emphasis was on doing more with less.

Across the world, large ecosystems were

Getting Back...

being created, retailers were collaborating

The Five Focus Area approach galvanised the company into a new mode and upped profits.

The unexpected event of the pandemic threw up the need to evolve means to get back on track and put the company on the trajectory to success.

hire people to build capabilities but could

with other retailers. Lifestyle needed to gear up to find partners to leverage each other’s strength. Strong tie-ups would mean the company would no longer need to always lean on partners for the same.

These four areas were seen as the immediate focus areas. However, things were fluid, and Lifestyle had to work through the post-pandemic scenario to arrive at a clearer approach keeping the learnings of the FFA in the background.

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concept, content & strategy Shveta Sahu, Manjira Dutta DESIGN & ART DIRECTION Vipin Gupta EDITORIAL Poonam Kashib, Kedar Kaushik

PRINTERS Vishwakala Printers, No 28, 2nd Stage, Industrial Suburb, Yeshwantpur, Bangalore

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