Retail Brand Extensions

Brand Extensions has always been a very dynamic concept and theoretically there have been line extensions and product extensions.

So how far can you extend? Virgin is a case in sight where the Virgin brand is extensions into many diverse categories, some successful, others not so much.

Brings to my mind when Neiman Marcus extended the NM brand to Galleries by NM - a smaller, jewelry focused format. Think they had 3 stores going but this extension didn't quite work for them. From competing with Saks 5th Avenue their competition for this format changed to Tiffany. They did decently on the organization structure for this format, but perhaps they could never get past the fact that large stores were destination stores but a medium sized store couldn't do that.

There must have been multiple reasons, so I will revisit with more dope on Neiman Marcus and brand extensions.....

Ciao!

Indian cafes' : Atmospherics vs. Product Quality

Coffee business in India is not as new as it appears to be. Coffee came to India in 1800s or so. In its current 'new and improved' cafe' avatar though, coffee business is a symbol of cultural changes in India.


Conceptually, sit down cafes are just what would work in India - what with people looking at meeting friends ad acquaintances outside of homes ...and not all of India can go to 5 star hotels. So, cafes' it is. Implicit here that coffee 'to go', 'on the go'. 'take away' doesn't seem to find many takers in India - what with large part of India having detailed breakfasts at home, and if you are down south then there is 'filter coffee' available outside at your lane at Rs 5 !!


That said, the customer who goes to the cafes spends upwards of 1/2 an hour there. What it means is he is looking at more 'eats'. Also, to this customer, it doesn't seem to be important whether there is 'circulation space', 'comfortable seating' etc. (Now that explains, the upright wooden chairs at Barista and 1 1/2 half feet aisles at Cafe Coffee Day. (Why am I thinking of having read that 'Indian customers enjoy the jostling').

Anyway, so the atmospherics don't seem to be very important. But most people feel that the taste and temperature of coffee are important. More about my study on atmospherics vs product quality in Indian cafes at another juncture.

Keep coming back.

The Irony of Luxury Retail In India

I have begun some work on luxury retail in India and am still astounded at the opportunity....I mean even in these times.....with a phenomenal food inflation, apparel retailers under tax pressure et al. While there might be a different opinion if this was looked ta a micro level, there is no denying that largely the opportunity in luxury in India is still unexploited.a survey conducted by AT Kearney (‘Luxury In India -A CII-AT Kearney Report,2010) estimates that the Indian luxury market is worth $377 million and is likely to grow at an annual rate of 28% in the next three years And this opportunity extends beyond the top of the pyramid.

Take jewellery for instance...of paramount importance in Indian families - even in the lower middle class. Precious gems and jewellery are a part and parcel of Indian traditions and customs. `According to a report by NCAER (How India Earns,Spends and Saves, 2008)gold has traditionally been valued in India as a savings-and investment vehicle and even today, continues to be the second most popular instrument after bank deposits.It goes on to say that 16% of the total investment made by an Indian household is in jewellery.And when we say this we include the great Indian middle class.

In a very ironic manner, its the saving culture of India that boosts the spend on luxury (jewellery to be specific). While I research these cultural aspects, will keep you posted on the various cultural aspects of luxury buying behaviour in India.