The young fashion leader

Salil Chaturvedi, Deputy Managing Director, Provogue (India) Ltd, talks about the company’s retail policy to always stay on frontline of fashion retailing

Retailer: Provogue, a leading name in fashion, is in the headlines for its association   with some recent blockbusters. What’s the business strategy behind it? How much is it affecting your sales? Does it really draw the targeted customers?

Salil Chaturvedi (SC): Bollywood is a prime communication tool for many retail verticals, fashion included. One has to be careful to be associated with the best that Bollywood has to offer. We’ve been lucky to align ourselves with some of the greatest hits of the past few years. We have proven to ourselves that this cross-branding has had a beneficial effect to the Provogue brand and we want to continue to support the best film projects in the future.

Retailer: What are your criteria for selecting the brand ambassador?

SC: Our new Brand Ambassador today is Hrithik. Hrithik is the great representative of modern Indian culture, a great human being and we’re delighted that he represents us at this inflexion point in the commercial development of the fashion industry in India.

Retailer: Besides apparel, you’ve forayed into accessories. Is it through licensing arrangement? If yes, how prospective is licensing in India?

SC: Yes, most of our accessories business is under a licensing model. Shoes, Body Care Products and Eyewear are the major drivers for us. Licensing is a growing opportunity with the emergence and development of the consumer markets in the smaller towns across the country. It’s difficult for a brand to have the kind of reach that a professional distributor can deliver, so we are actively seeking to beef up our licensing business today.

Retailer: How frequently Provogue introduces new styles? How do designers at Provogue work to keep pace with changing style of youngsters? 

SC: We have two major seasons when the entire collection is relaunched and represented. Theses are Spring-Summer and Autumn-Winter. In addition we introduce capsule collections throughout the year to keep the brand fresh and alive and up to date with latest trends. 

Retailer: Retailers are passing through hard times. What is Provogue’s secret in retaining growth?

SC: Well first it’s been a tough year for us too. No one has been entirely shielded from the effects of the global economic downturn. However in India we have rebounded well and consumer confidence is back with prospects for the future looking bright based on our emerging consumption story. I think we were better positioned than some to ride this storm because we had invested in our retail footprint pan-India early on when store rents were better priced.

Retailer: In the time of market slowdown have you closed down any outlet? For store re-location what are the parameters a retailer should follow?

SC: We have a policy to close down any store that is not adding value to the brand or is not profitable in its own right. The market slowdown had no impact on this as a policy and in fact, as stated above, our stores were already quite well positioned from a cost point of view. In terms of relocation, we are focused on opening stores in successful shopping centres and if a new shopping centre location would encroach upon an exiting smaller high street location nearby, for example, we would close the smaller one and consolidate sales into the newer store.

Retailer: Are you opening new outlets too? What is your expansion plan? What are the criteria for selecting a location for setting up a store?

SC: We are aggressively rolling our store footprint across the country. We already operate in over 67 markets and we are enhancing our presence in these existing markets as well as opening up new ones in the highest growth cities and towns. Our criteria for a new location are probably the same as any retailer. We need a cost effective space, that is well positioned, well managed and is attracting other quality retailers so that together we can aggregate footfalls.

Retailer: Who are your target audiences and what is the price range of your products?

SC: Broadly speaking the target group is men and women from 20 to 35 years, who aspire to fashion lifestyles and demand quality products and service. We design and price our ranges to be affordable. Provogue is in the upper middle end of the price brand, but below the major international players. 

Retailer: What special offerings you have for festive seasons? How much sales it generate? What is the percentage of sales generated through discount schemes?

SC: We try to design festive offers around the mood of our time. For example this past Diwali, we offered customers a chance to purchase a Provogue gym-bag that contained a towel, a deodorant and a sport-drinking flask. We felt people were in a “get healthy state-of-mind” and it worked very well for us. As a policy we don’t offer discount schemes. We are value-add brand and this doesn’t fit with our business model. We do end-of-season sales like any other retailer in order to clear the decks for the new collections, but these are only twice annual events.