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'Cosmetic brands have to stay agile'

By Nabamita Chatterjee | August 19, 2013

Venkat Narayanan, Chief Merchandising Officer, Spencer's Retail Ltd, in a chat with VJ Media Works, talks about retailing of cosmetics brands and on why the retail brand believes in creating expansive"œexperience zones" within the hyper-stores.

1.    In terms of in-store visibility what trends do you see among cosmetics brands today? 

Cosmetic Brands in India are catching up with the international trend of allowing customers to try out and become familiar with their products.  Creative use of space and displays are also allowing for better visibility.

2.    Can you share some key observations on cosmetics shoppers/buyers today?


Cosmetics shoppers today are increasingly aware of global trends -- example, the movement towards organic and natural products (which also appeals to the India tradition of herbal cosmetics). They are well informed due to exposure to media and the internet and seek both new domestic brands as well as international brands that create an emotional connect. Importantly, customers are looking for brands they trust to provide them with the solutions they need.

3.    What do you think are the key challenges for a brand today in connecting with this segment?


Given the fast evolving nature of the Indian consumer as well as new trends in the India, brands have to stay agile while maintaining their core essence. This is a delicate balance since they have to ensure that they build and retain customer trust.

4.     So what do you think brands should do to connect with them?


Brands today have to connect with their consumers across channels - in-store presence is of course the most important part of the equation in order to generate sales, but at the same time the relationship has to be built well before a customer walks into the store. Leveraging traditional media as well as the internet and social media and integrating that with the in-store display, messaging and customer service is essential to build a successful long term relationship.

5.     How do you think brands can leverage the retail space offered by you in reaching out to the consumers?


We are very conscious of the need to provide customers the ability to experiment as well as try out new product - therefore Spencer's is increasingly focusing on creating expansive "experience zones" within our stores that will not only allow brands the ability to display their full product range but also enable customers to really understand the benefits of a particular product through product trial. Imagine an afternoon out shopping for your home, apparel or grocery needs, where you also get a makeover in the process!

6.    Could you share some interesting case studies of in-store promos/merchandising initiated by you/brands? How did it convert to sales?


Spencer's has successfully created beauty counters in the stores that allow for enriched product displays while providing a unique experience to the customers, resulting in a huge sales increase. For example, Spencer's flagship store in South City Mall- Kolkata, is one of the highest sales grosser for several premium cosmetic brands today.

7.    What do you think will be the future trends in this category?

As the Indian consumer comes of age and demographic trends continue to favour a young population, this category is set to explode in sales.
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