Rendezvous

Guess & Gc

A Rendez-Vous

How did your background in retail and distribution help you in formulating the business model for Guess and Gc?
Well, I was in retail for over 20 years. I came from a background of department stores in the most developed market of the world, the US. I
transitioned into the wholesale business by having my own company (US$15 million), which had a substantial retailing element. These career stints set up the foundation for what I am doing today because I understand the challenges of retail, distribution and the various chains therein. I believe that small retailers are the future of the business. Mega retail chains will be fairly successful inspite of some of the things they do. The big mass retail chains bring in a lot more of sophistication and innovation. It’s about knowing what the trends are; what consumer psyche is; and then offering the same entailing minimum costs while knowing yourself! We educate distributors about the various tools so that they can educate their retailers. Every month, we gather market information from 6,000 to 7,000 retailers across the world on what they are selling! It’s important to know what they are selling and give them the same. It’s important to avoid the financial risk stock in today’s scenario. That’s how we have set up our business model.

How did you fare in 2009? What’s the outlook for 2010?
From July 2009 to July 2010, we have increased GC points of sale by about 1,000. For Guess, we already have 20,000 points of sale around the world. We are rationalising the same as we are looking for perfect synergies in our retail points with our brand philosophy. Year 2009 was a fair year and we strengthened our retail presence. The first half of 2010 was so good that we are probably going to have the biggest growth year in history in a long, long time. Year 2010 is going to be the biggest growth year in our history. In fact, it takes us to the heady days of 2007 before the global economic slowdown crept in.

What strategy will you adopt in India?
India is part of the BRICs group of emerging markets that will influence the world because of resources and human capital. India has technology too in addition to natural resources and intelligent human capital. This will be the key drivers for the future. We are looking a 2-3 years ahead strategy. We are coming up with a strong retail strategy. We are looking at positioning the brand efficiently and effectively within the prevalent and future retail infrastructure. We are also looking establishing and building brand equity in the minds of the consumer and also in the minds of the trade as personal relationships are critical in India. We shall be expanding the number of retail outlets in the top 24 mega cities of India. We are doing it step-by-step and are covering the key fashion metro markets in India and China. We are getting active in other key markets and building the foundation.

What’s your message to the Indian trade?
During the interaction with the India trade, I was fascinated by the fact that they speak the same language and think along the same lines. Our real mission is to help them to be successful. My role is not to take care of me, but to take care of the retailers. There is no maximum that the trade has to buy from us but there is only a correct or right way of doing business. We clearly define right. We have to have requisite information before we open the retail outlet. If we don’t know what you sell or how you intend to sell, we can’t give you the right products. We want to help smaller retailers understand the importance of merchandising and visual merchandising. We want you to buy what you feel you can sell! They consider them to be our soldiers in the front line. But it’s also a partnership of equals because we need them as much as they need us. We need to know what they think; how they plan to reach the customer; and what they need and within the boundaries of what we do, we need to satisfy their needs.