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‘Market dynamics is changing very rapidly accelerated by the ever changing consumer behavior’
 Crocodile
was registered in India as early as 1952 but made inroads in the Indian market
in 1998. Crocodile Products, the company catering to the Indian market
is a 40:60 joint venture company between Shivarams Associated and Crocodile
International Pte, Singapore. To provide best value for money to the Indian
consumers, Crocodile strategically positioned itself in the medium price segment
with a guarantee for international quality. In an exclusive interview Mr
Venkatesh Sivaraman, managing director, spoke to Sudha Swaminathan. Excerpts.
What impact has the brand made in the Indian market?
I would say we are yet to make an impact in the Indian market. We should have
a minimum of 300 Crocodile Galaries across India to make a dent in the market.
To open up these stores we need investments in logistic, planning and people.
We are more on a growing phase and are gearing to that level.
So what do you have up your sleeves?
During the last one year, we were in a consolidation phase and this year we
have plans for expansion. We are planning to open 40-50 Crocodile Galaries in
South India in next one year (starting April 2004) for which the groundwork
is being prepared. Crocodile will make huge investment in brand promotion from
April. Crocodile International, Singapore is studying the possibility of a worldwide
branding exercise and is also in the process of synergising the operations in
26 countries.
How are brands leveraging from the retail boom?
The retail boom augurs well for brands. It creates more space for the brands
and will increase the visibility for brands. I think a lot of stores from the
high streets will move on to malls. There are certain malls which have become
a hit while others have got stuck in the rut. To understand the real impact
we will have to wait and watch.
Do you see a surge in the private labels and how would
branded players meet the challenge?
The concept of private labels came from America where large format stores introduced
private labels to boost sales. It is exclusive to the format stores and the
label is not available in any other stores. However it is difficult to categorise
a private label in India. There is a case where there is a store promoted label,
which is available in other outlets too. With the coming of malls and large
stores, it is expected that the concept of private labels will also catch up
in India. It will certainly eat into a proportion of market share of brands.
Brands can meet the challenge by focusing on exclusive stores. Also, the brand
loyalty will keep us going.
What major changes has the coming of international brands
ushered in?
The foray of foreign brands has created awareness among the consumers about
quality. It has been helpful to the industry to access new technology. They
make available fashion inputs and introduce the local consumers to international
trends.
Do you think the Indian garment industry is prepared to
face the challenges of WTO?
Definitely. We have improved a lot in quality and supply chain management. Large
work stations have come up with 800-1000 machines. All these vouch that we are
matured enough to face the challenges of quota free regime.
Would the market witness more international brands?
Yes. The size of the domestic market would attract more foreign brands. But
sustenance will be a million dollar question. It the last 5-6 years I have seen
more than thirty brands (both local and international) come and go. It will
very difficult for new players to sustain and it will consume a lot of time
for the brands to create a niche in an already flooded market. Market dynamics
are changing very rapidly accelerated by the ever changing consumer behavior
and brands will have to quickly adopt to changes.
Are Indians brand conscious?
Indians are not just brand conscious. Value for money is also important to
them. Hence, they prefer brands that provide value for money.
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