1. Lifestde-Rht Mix Perfect Match
beginners have plenty to learn from Lifestyle - a Dubai-based retail chain, which started
operations in India three years ago. Most international retailers consider India a difficult
market to crack. Says a renowned retailer, “India is a country where preferences change
every five kilometres”. However, this did not stop Lifestyle from emerging hugely
successful. Today, the company has three
- in Hyderabad, Chennai and bangalore and is all set to enter Mumbai.
or Lifestyle, sourcing is whàtmakes it completely different from the other stores in the
country. In retail operations, supply chain is the key and this ‘means getting the right
thing at the right place at the right time and in the right quantities. Given the waler-thin
margins and the number and complexity of items handled, this function assumes
enormous significance for a retailer_This is where Lifestyle India stands apart.
Lifestyle has ensured a mix of domestic and
international goods in its merchandise. This means
-
global sourcing has been a part of company strategy from day one. Savvy marketing and
clear
communication emphasising its international
affiliation attracted customers. And once they were in the store, Lifestyle made sure that
they would
want to come in again and again. This is where merchandising and sourcing played a
major role. At
the outset, the company clearly identified the categories which could be sourced from the
country

2. those that had to be imported. Says H Ramanathan, MD, Lifestyle India, “we first
decided what sort of statement we wanted to make. Then we ‘broke our entire
merchandise into core and fillers.
‘Wherever possible, we try to get the core and even a lot of seasonal merchandise from
the domestic
market, while fillers and flashes are sourced from international markets. In certain
categories like household items, gift glassware ranges and furniture are sourced from the
international markets, as we did not find good suppliers from within the country”. The
whole idea was to provide ‘a varied merchandise mix, which was different from that
offered by competitors.
ç s rtwitwe ad a lot of problems hi
I ith.A h_.rm..a’ - mr’ m..Sc” —.
from India”, says Mr Ramanathan. The company
was taken aback by the plethora of regulations,
complex sales tax, octroi and excise structures.
“While the retail margins were very low, the other • costs especially the real estate costs
were very high”, says Mr Ramanathan. Clearly, the company needed to come up with
something to function effectively at these lower margins. So it began working directly
with the smaller manufacturers and regional brands which provided considerable
flexibility in merchandising and range planning. This helped Lifestyle in offering more
variety.
t this strategy was not devoid of difficulties. Reveals Mr Ramanathan, “one of the major
problems we faced was to have these people think and plan for longer cycles”. Many of
the smaller vendors have an erratic way of functioning with no concept of seasonal
planning. The company actually worked with them, stressing the importance of planning
for the season, developing collections, giving them feedback on the products and in
making them understand the importance of having a variety. “Initially, there is a lot of to-
and-fro before the final range is accepted”, he explains.
Quality was another major issue. “We have very strict guidelines on quality and some of
these vendors could not empathise with our requirements initially”, says Mr Ramanathan.
Quality was not restricted only to stitching - the company also needed to work on the
styles, fits and designs to make them conform to international standards. The company
holds training sessions for these vendors to familiarise them with the organisation’s
culture and update them with the latest in fashion. As a result of these stringent controls,
it takes the company an average of 6 months (sometimes even a year) to register a
vendor. This involvement, right ‘from the fabric development stage, has paid rich
dividends and today the company is acclaimed for its range planning. Not only this, the
company ‘stocks a large variety of brands - but the company has been able to achieve
great product adjacencies in the stores with the help of these brands and its private labels.
“It took us almost two years to solve our problems. We also made ‘mistakes and learned
from them - today we are prepared to expand our market reach”, says Mr Ramanathan.
-- —-w--- — Technology plays an important role in achieving the company’s goals. The
company has an in-house planning and monitoring software, which has been connected

3. with the P08 system and the company can download the stock movement data of the store
on a daily basis. The software was devised by the parent company six years ago and has
been used successfully in several markets.
‘With an array of merchandise to manage across centres, efficient logistics and supply
chain management is a valuable asset for the company. Lifestyle seems to have adopted
and adapted its ‘practices across the world for its operations in India. The merchandise
mix at the Lifestyle stores comprises Indian branded products, locally ‘manufactured
goods and imported brands. Usually, household items, high fashion garments, toys,
nursery furniture and toiletries for infants are imported.
‘he company operates through city-specific warehouses, which are located in each city
where Lifestyle showrooms are located. The warehouse
can service one or more showrooms in the city. A
._.Th._e_____C ._rTh.
The company operates through city-specific
warehouses, which are located in each city where
Lifestyle showrooms are located. The warehouse can service one or more showrooms in
the city. A centralised sourcing set-up based in Chennai handles the complex tasks of
range planning, vendor identification, sourcing, order placement and administration.
Goods are shipped to regional warehouses once the centralised sourcing base in Chennai
has placed the order.
The key to the success of Lifestyle stores has been the horizontal deployment of globally
practised ‘methods and principles. Lifestyle believes in the
‘science behind retailing -- understanding
‘manufacturers, markets, consumers, trends and so
on. Information on practices are collated and periodically shared across centres. The
group also lays substantial emphasis on training. Merchandisers and buyers are trained
both locally
globally on various parameters. Senior global buyers are consulted in certain key
decisions such as fashion trends. It is this international experience and knowledge that
has led to Lifestyle’s success
narathershortsanof ti me.