Recently, I shared the news of my departure from Lippo after an incredible 21-year journey that began in April 2003. I won't delve into the details of how I left an established retail career in the USA to join the Lippo Group, as my initial plan of a 2 ½ year contract transformed into a love affair with Indonesia that has spanned over two decades, with no end in sight.
My passion for retail started at the tender age of 16. The bulk of my career revolved around fashion retail in department stores, encompassing luxury, premium, moderate, and lower-moderate brands. As I progressed, I developed a keen interest in footwear, beauty, and what we call "center core" categories, which include beauty, handbags, jewellery, and other categories that attract the female shopper. Through my focus in these categories, I discovered the power of effective marketing, with the beauty industry being the epitome of marketing expertise. In the department store industry, new beauty launches were and continue to be crucial in creating captivating shopper experiences.
During these launches, we experimented with various methods to build brand awareness and establish our stores as the go-to destination for beauty. We also developed cross-promotions for "center core" categories to maximize the impact of these major launches.
Now, let's shift our focus to the current state of department stores. I've closely examined the retail industry in Indonesia, and here are my observations. The industry continues to evolve, with new brands emerging at an unprecedented pace. Many of these brands have a short lifespan and lack sustainability, yet they occupy valuable selling space in retail stores. It appears that the curation of brands by retailers is often driven by factors such as "listing fees" and margins, rather than focusing on products that align with their customer segmentation. I believe this stems from inexperienced decision-makers or a strict adherence to short-term financial targets.
Consequently, department stores and other retailers are missing out on the excitement that comes with new product launches, brand debuts, and the creation of experiences that establish them as destinations for innovation and discovery. Today's retail landscape is often a sea of brands, with large installations for international or major national brands, or limited SKU presentations that fail to communicate the benefits of the products effectively.
Furthermore, the majority of Beauty Advisors or SPGs lack in-depth knowledge of product benefits or rely on scripted pitches that do not cater to individual needs.
I have strong opinions on how to reignite the excitement in retail, but it requires investments. Most stores are reluctant to fund these necessary changes, prioritizing short-term benefits over long-term investments for the future.
I'm curious to hear your thoughts on this matter. Do you agree with my observations, or do you have a different perspective to share?
KOL Manager
2moExciting times!🫶🏼🫶🏼🫶🏼