'She-change' for Debenhams

The UK-based chain hopes to be second-time lucky in India by focusing exclusively on women's wear

The UK-based department store chain Debenhams is making a second attempt for a better fit in India. Its first foray in 2007-08 flopped as the chain wanted to be everything to everybody – a positioning that just didn’t work in a crowded marketplace.

When Planet Retail launched Debenhams in 2007-08, it was like any other department store chain, selling a mix of global and domestic brands and both menswear and women’s wear. As slowdown hit the chain, Planet Retail, which had plans to open 30 stores, could open only three stores. All the three stores were making losses and subsequently it closed down Mumbai and Delhi stores.

 

But the management restructuring in Planet Retail, which saw Samsonite South Asia’s Ramesh Tainwala picking 48.5 per cent in the company in 2011, saw the company changing its strategy.

“We realised that there was no point in selling the same products which all others sell,” says Aditya Nadkarni, business head, Debenhams at Planet Retail Holdings

The shift in strategy has meant the chain focusing exclusively on premier women’s wear as against its mid-market department store positioning in the UK. The other market where it has similar positioning is West Asia.

Debenhams, which runs over 225 stores worldwide and is run by its master franchisee Planet Retail in India, now sells 85 per cent to 90 per cent women’s wear in its three stores in Gurgaon, Mumbai and Bangalore as against 60 to 70 per cent in the UK.

“There are no women-centric department stores in the country now. Besides, most stores selling menswear are heavily dominated by brands. It would have taken us huge investment and energies to make a dent in that segment. Hence we chose women-centric stores which are a perfect fit for us in India,” says Nadkarni.

Debenhams is focusing on sizes and range of categories to attract women shoppers. For instance, the chain, Nadkarni says, has the widest range of lingerie.

Its rivals agree with the strategy. “It is a good shift. It would have been very difficult for Debenhams to compete with others with its heavy private brands play. While men prefer brands, women always prefer sizes, shapes, and shades and so on where Debenhams can score,” says the marketing head of a department store chain who did not want to be quoted.

The chain has also launched many well-known brands in its stores. For instance, it has dresses by Jenny Packham, the designer for Hollywood actors such as Angelina Jolie and Kate Winslet. In its home segment, the chain sells knives by famous chef Jamie Oliver and bed linens by US actress Kylie Minogue and products of Cookshop, the well-known kitchenwear firm.

In cosmetics, the chain has one of the highest selling shop-in-shops of Lancome, Forrest Essentials among others and is planning to launch shop-n-shops of D&G soon.

Planet Retail has also reduced the size of stores to around 20,000 sq ft to 30,000 sq ft as against the UK where stores are over 1,00,000 sq ft. “We can’t make money with that kind of size here,” Nadkarni said.

Consultants say the change in strategy might work given the rise in sale of premium apparel and Debenham’s high-end positioning.

“Though there are premium brands such as Mango and Escada which offer similar products, they sell both menswear and women’s wear. But Debenhams is above them due to positioning and price. Since premium customers are looking for a wide assortment, Debenhams with its wide range and brands might do good business,” says Prashant Agarwal, joint managing director at Wazir Advisors, a management consultancy.

Planet Retail wants to open three to four stores of Debenhams every year now and is looking at a break-even in FY 2013.