While one of the brand carried by Dang's Fashion is planning to enter Parkson, it would be interesting to take a look into Parkson's business and their strategy.
Continuous rebranding or store remodelling the key to strong sales growth
"Our customers are now buying more. While the price per item has gone up, the value per transaction has also gone up, which in turn led to higher productivity per sq m. That’s why our same store like-for-like sales growth is strong. And we are the only one (retailer) who consistently upgrades and frequently remodels our stores because we have the resources to do so, " said Datuk Alfred Cheng, Parkson Retail Group Ltd group managing director.
"When we first made changes to our store in KLCC in 2004/2005, we saw sales drop off immediately in the first six to seven months before it started picking up. That’s because the profile of our customers changed and it was not a Parkson that people were used to seeing. Today, we have many regular customers who come back more frequently than they have ever been. We have given the KLCC outlet a facelift four to five times in the last 13 years," he said.
Parkson has evolved from a neighbourhood department store serving the man-in-the-street to one that caters to middle- and upper-middle class shoppers, though it did not become a brand icon overnight.
"We started the rebranding exercise in 2000. We had to move the merchandise overtime to a slightly higher level to communicate with a different platform," said Cheng. "But it has done very well for us. The image and perception of our brand among our consumers, I think today is very different from five years ago," he added.
Growing Kuala Lumpur-listed Parkson Holdings Bhd has been more than a journey; it’s an adventure.
Let's look at the overall strategy of Parkson's business:
Looking back, 10-15 years ago, we cannot imagine that we will be where we are today. We knew that we wanted to be a regional player, but we did not anticipate the scale that we have today. But again, we got to start thinking where we want to be 10-15 years from now.
This is very similar to previously studied Angry Birds' Tale - We built 51 games before Angry Birds so it wasn't like we were an overnight success...
Excerpt from:
Success did not come overnight for Parkson
http://203.115.192.117/thesun-epaper/mon/09012012/files/assets/downloads/page0015.pdf
Continuous rebranding or store remodelling the key to strong sales growth
"Our customers are now buying more. While the price per item has gone up, the value per transaction has also gone up, which in turn led to higher productivity per sq m. That’s why our same store like-for-like sales growth is strong. And we are the only one (retailer) who consistently upgrades and frequently remodels our stores because we have the resources to do so, " said Datuk Alfred Cheng, Parkson Retail Group Ltd group managing director.
"When we first made changes to our store in KLCC in 2004/2005, we saw sales drop off immediately in the first six to seven months before it started picking up. That’s because the profile of our customers changed and it was not a Parkson that people were used to seeing. Today, we have many regular customers who come back more frequently than they have ever been. We have given the KLCC outlet a facelift four to five times in the last 13 years," he said.
Parkson has evolved from a neighbourhood department store serving the man-in-the-street to one that caters to middle- and upper-middle class shoppers, though it did not become a brand icon overnight.
"We started the rebranding exercise in 2000. We had to move the merchandise overtime to a slightly higher level to communicate with a different platform," said Cheng. "But it has done very well for us. The image and perception of our brand among our consumers, I think today is very different from five years ago," he added.
Growing Kuala Lumpur-listed Parkson Holdings Bhd has been more than a journey; it’s an adventure.
Let's look at the overall strategy of Parkson's business:
|
Basically we operate with one brand (Parkson) everywhere, except in Indonesia. We will continue to develop the Centro brand there for now, which will cater to the middle-class market. That’s because Indonesia is at the stage of development where the
middle-class market is the best position for us to grow very quickly over there. As such, we will develop Centro for the next few years in the 12th or 13th largest cities outside Jakarta that are not quite ready for a Parkson outlet yet. At the same time, we will come back probably in the next 12 to 18 months, to introduce the first Parkson just in the major cities of Jakarta, Medan and Surabaya, which we will position for the uppermiddle class and premium segments of the market. This strategy allows us to have fast penetration (in Indonesia), while keeping the integrity of the Parkson brand as it is. |
Looking back, 10-15 years ago, we cannot imagine that we will be where we are today. We knew that we wanted to be a regional player, but we did not anticipate the scale that we have today. But again, we got to start thinking where we want to be 10-15 years from now.
This is very similar to previously studied Angry Birds' Tale - We built 51 games before Angry Birds so it wasn't like we were an overnight success...
Excerpt from:
Success did not come overnight for Parkson
http://203.115.192.117/thesun-epaper/mon/09012012/files/assets/downloads/page0015.pdf
