In our Previous Coverage we wrote on Lacoste’s Polo Lounge and Live Lacoste Stores in India. Today we’d like to discuss on how French Retailer, Lacoste Opens Single Branded Lifestyle Apparel Stores, RoI on each store and how the locations are chosen to expand their presence in India.
Size of an average Lacoste StoreThe average size of a Lacoste store in India is 1,500 sq.ft., up from 700 to 800 sq.ft. earlier. Some years ago, as the footfalls increased, thus they closed all 50 or so Lacoste stores in India and opened bigger ones. For example, South Extension store in Delhi was shutdown Delhi and a new one of 4,000 sq.ft. opened right above it. It is now Lacoste flagship store in the city. Currently, Lacoste stores get about 300,000 customers a year combined.
Store Location Choice for Lacoste Brand In the last three to four years they’ve been mostly targeting Malls. Currently, 80 percent of stores are located in malls and will continue to do so going forward. Why Malls ? The reason we choose malls is simple. On any weekend, average spending families looking for a break prefer an air-conditioned environment where they can get food, shopping and entertainment, all under one roof. However, there are a few high streets on such as Linking Road in Mumbai, Connaught Place in Delhi, MG Road in Bangalore, and MI Road in Jaipur because these still carry a lot of value.
Investments in a Lacoste Store and RoI Whatever they spend in India is comparable to any other Lacoste store across the world. The idea is to give customers the exact impression, experience and furniture as they get anywhere else. Every bit of our store decor in India comes from the Lacoste worldwide design team. In India, the landed cost is high as is the custom duty, which makes it more expensive. The Polo Lounge is 100 percent more expensive to make than a standard Lacoste store. Product pricing differs while positioning is the same worldwide – affordable luxury – regular polo shirt costs $50 in India, Euro 90 in Paris, $100 in the US, and $120 in China. But the manufacturing costs remain almost similar.
Earlier, stores took around one month to break even. Now, it takes around three months. This is because of new catchments and mainly looking at the mall format. Sometimes, the mall takes time to pick up.
Lacoste’s closest competitor is Polo Ralph Lauren but they are not yet present in India except in The Collective stores. Armani Exchange which is another competitor in denim wear. They actually welcome competition because the larger the number of brands entering the country, the higher is the brand loyalty and consciousness.