Covid-19 impact: Reliance Brands pushes direct sales to boost business

With several stores locked down and most of its products falling in the discretionary spend category, the country’s biggest luxury retail player Reliance Brands faced a zero sales scenario until it went into the direct sales mode.

Through a blend of online events, video-guided tours and parties, and digital catalogues called “flipbooks”, the company’s sales have awakened after the easing of the lockdown.

On the back of thousands of WhatsApp messages, and at least 700 video calls, Reliance Brands sold close to 12,000 products across brands to 3,400 customers across 38 cities, RBL executives say, with at least 75 transactions valued at over Rs 1 lakh. “Small joys and rewards that gratify customers are the drivers,” says Deval Shah, vice-president, Reliance Brands.

RBL operates over 40 brand partnerships, including Tiffany & Co, Armani Exchange, Brooks Brothers, Bottega Veneta, Coach, Diesel, Dune, Emporio Armani, Ermenegildo Zegna, Giorgio Armani, Hamleys, Jimmy Choo, Kate Spade, Michael Kors, Mothercare, Muji, Paul & Shark, Steve Madden, Superdry, and Scotch & Soda.

Of these, top brands driving sales for RBL after the lockdown, in order of popularity, are Mothercare, Superdry, Canali, Tiffany & Co, The White Crow, Brooks Brothers, Bottega Veneta, Armani Exchange, Salvatore Ferragamo, and Hamleys. RBL today operates 795 doors, split into 450 mono-brand stores and 345 shop-in-shops in India.

“Mothercare filled the gap in serving the needs of families with new-borns with essentials that they were struggling to find during the lockdown,” says Shah. Other top-selling categories include gifts, bags and purses, sporting and casual lounge-wear, and shoes. 
 

Shah says apart from the digital blasts and video store-shopping, some partner-brands conducted novel events. “Michael Kors conducted an auction via video-conferencing, wherein clients placed bids on their favourite products, put together on a digital catalogue,” he says.

The event saw 66 customers in attendance and a presentation of 20 products, of which all sold. Fine jewellery and accessories company Tiffany& Co, which went live online first in India, has also serviced requests for birthday and anniversary gifts, and rings for couples whose weddings had been pushed back due to the lockdown.

Other events included an exclusive video-conference party for customers by Diesel. Giorgio Armani’s former lead stylist and now head training Andrea Perulli walked an exclusive set of customers through new collections — all through a video call, of course.

Shah states the newer marketing ideas, such as WhatsApp calls and video direct selling, are now being accepted by foreign partners, who may have been relatively conservative in a pre-pandemic world. Noticeable trends include doubling of transaction values, and a return to confidence in brands that consumers trust, especially when shopping online, Shah adds.

So, how does the distribution piece work? RBL delivers the same or the next day in cities where it has stores and uses couriers where it doesn't have a presence.

Payal S Kanwar, director general, Indo-French Chamber of Commerce and Industry (IFCCI), which has members that include Hermes, LVMH, Chanel, and Christian Louboutin, says that there’s a concerted effort to ensure that customers get the same experience offline as they would in brick-and-mortar stores. “So high-end brands are focusing on customer experience, personalisation, delivery, and the consolidation of customer base, which means using the CRM (customer relationship management) smartly: Identifying groups — one time shoppers and regular shoppers.”

Mumbai-based delivery companies have tied up with high-end malls to ensure premium delivery, and on the digital front, companies are working with WhatsApp Business Application Program Interfaces to improve customer satisfaction.

What's the big challenge for direct sales and will it impact traditional sales for the future? “We have to note that we are in the business of discretionary spend, so this won't impact bricks-and-mortar sales but touch and feel is the challenge,” Shah says. “However, it may be habit-forming in a post-Covid world, because it saves time.”