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  • 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,

designs, etc.

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)



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