Dubai: India's fabric and retailing brand, Raymond, is stitching together a new marketing strategy in the Gulf. And it is calling on extensive market research conducted in the core markets of the UAE and Saudi Arabia to create the design.
Four months ago the $250 million-plus enterprise decided to go in for the research, which took up the better part of two months. Raymond operates more than 20 retail outlets in the Gulf through its partners and is reckoned to be the number one volume seller in the category.
But, the company was getting the feeling that more could be done, not just by way of growth, but also in breaking through to new shopper demographics.
"One of the purposes of the research was to find if there was something in the brand that would appeal to the Arab shopper over and above what we have with the Indian diaspora," said Ashish Grover, vice-president for apparel and fashion.
Shifting gears
"While we weren't sure it did, the research showed there was acceptability for the brand among the Arab audience and that they could connect with its emotive aspect. That revelation threw up a complete greenfield opportunity for the brand and the reason why we're about to change gears now.
"We have been operating in these markets for many years and there is an established retail network. Like everything else in life, we felt there was a need to change. Moreover, what we were doing right — or wrong — in the last 15 years was not necessarily what you would be doing going forward."
The renewed focus should see a doubling of the retail presence from the current 20-plus stores within the next two years. It could even mean seeking a location within malls in the UAE and Saudi Arabia, the key markets.
The intention is on fast-tracking the changes required to connect with a wider customer base. All through this week, a senior team from Raymond has been outlining the shape of things to come to its regional partners.
As part of the process, the UAE franchisee has been given the rights for Qatar as well, where there is a lot of potential going forward.
There are subtle changes that will be brought into the retail format as well. "In India, we are launching a new generation of stores and that's something we will create in the Gulf as well — but there will be some additions pertinent to these market," said Grover.
Adding local flavours
"Their form and feel will appeal to the Arab shopper as well, at least that's the intention. We are getting the best architects to do the stores in line with the findings and create a tailor-made format. Now that we have the findings, we are trying to get a global footprint with local flavours."
From April onwards, the changes in the retail side will become apparent at the new stores. Some of the existing locations could also go in for a makeover, but that would be a gradual process.
Raymond will, however, not be making any changes on one score. The outlets will continue to promote a mono brand. "What the research has shown quite clearly is that our shoppers prefer it this way." While the changes will be led by the franchise partners, Raymond could consider owning some of the new stores if such an option came about, Grover said.
So, what sort of future growth numbers would all of this achieve? According to Grover, for the international operations to make up 20 per cent of the overall turnover would be a happy state of affairs.
"The truth is we are too big in India," Grover added. He has a point there — Raymond operates more than 500 outlets in India and plans to add a lot more in the short term.
