Selecting and accordingly, customising the global product assortment for the Indian market - Some global retailers select their product assortment (e.g., menu offerings, footwear, apparel, accessories, lingerie, etc.) from international product ranges. While the majority of international product ranges are correct for the Indian market, some retailers believe that it is necessary to customise the product assortment for India with regard to—
Style, fit and colour for apparel
Taste for food and beverage items
Product range and assortment for each store—For example, woolen apparel is required for North India but would not sell as well in South India.
This enables international retailers to be viewed or perceived as those who listen to and execute against local market insights.
Case in point 4 - The role of innovation and new product development at retail organisations
India-inspired products for l
The Spa Group partners with its vendors, such as Lladro, work to suggest and create India-centric products. Spa assumes a hand-
home accent products
holding approach with its vendors where it—
Factors for success • Trust, willingness to
• Suggests ideas and themes for products that are typically based on religion, mythology, culture, heritage, national/heritage monuments, etc.
listen to new ideas, constant cooperation
• Embarks upon Research&Development, interact with the vendor’s design department
Commitment towards the process, which may involve discarding over 50% of ideas and concept
Identifies and sends artists from India to validate sculptures,
The gestation period that encompasses concept creation, design and delivery typically lasts for three years. The collaboration between Spa and Lladro has proved to be successful—
Appetite for risk in launching country- specific product lines
Overcoming the perception that Indians only want products that are “foreign” in nature
Lladro’s Laxmi sculpture is one of the company’s best-selling items worldwide.
Fifty percent of Lladro’s sales in India come from India-inspired products.
Sixteen percent of Lladro’s global sales come from its range of India-inspired artifacts, suggesting the growing popularity of these products worldwide among non-resident Indians and others.
Lladro’s India-themed collections include Radha Krishna, Lord Krishna, Sacred Cow, Ganesha, etc.
There are 100 new products under development of which 40 to 50 will likely become new product additions for Lladro; between two to three new products will be launched every year for the next few years.
(Source: Primary research interview with The Spa Group)