Jeanswest has emerged from a review of its operations poised for success. Just don't ask its head about the downturn, writes Belinda Smart
Stephen Younane has encountered numerous hurdles in recent months. Aside from the ever-looming global economic crisis or "GEC" - an acronym he declines to mention - he's had a company to turn around, to say nothing of an ongoing tussle with his own impulses.
"I'm extremely impatient by nature," admits the CEO of Jeanswest. "I basically want everything to be done yesterday, if not before."
Impatience can be a blessing, but when you're executing a 360 degree review of your business, it's also a risk.
"The challenge for any CEO is creating belief - working with a team to get buy-in and engagement from them. It's just as much about creating momentum as about looking at other aspects of the business."
The past year has apparently seen Younane - in his current role for around 20 months at the time of writing - achieve just that. He and a newly invigorated team have reworked the brand's positioning and architecture, he says, meaning they are now well positioned to tackle the challenges of the unmentionable acronym.
As part of its turnaround, Jeanswest has introduced a new "product pillar strategy" as well as revising its store design, upgrading service and CRM capabilities and launching an online store. The first of these is all about focus, meaning Jeanswest's burgeoning and somewhat cluttered product offer of old is no longer.
"We realised we had to have the courage to say no to certain categories and focus our full attention on denim and denim-related product."
A new leadership team and structure has helped - with ex-Sussan Group's Freya Cutelli as general manager product and Belinda Barlow as director of merchandise. Meanwhile the product and planning functions have been brought together under the same umbrella, and new CRM, e-commerce and business development functions complete the the picture. The changes seem to have paid off. Jeanswest is one of the few success stories to emerge from the current crisis, with calendar 08 boasting the best December results on record.
"We've worked hard to manage our inventories, reduce markdowns and achieve the right product mix, which means more pressure on product managers and planners. However it does create a system where there's more time for each SKU to be improved, with a heightened focus on quality, design and fashionability."
Released in March, the Selvedge denim range illustrates this new approach. Younane isn't shy to admit that using exclusive Japanese denim to compete with - and dramatically undercut - high end denim purveyors such as Ksubi at a mere $149 a pair, was a stroke of genius. More "star" ranges - probably around four a year - can be expected in future. As he reiterates, it's all about the denim.
"In fact [Jeanswest denim manager] Michael Zerger-Daddow is passionate about the stuff to the point of obsession," he says, adding stores have been revamped to convey that passion to customers.
"We've got new visual merchandising and a new fit out which has been prototyped at [Westfield] Doncaster, while an even more forward version has been installed at Forest Hill [Melbourne]."
Jeanswest customers can expect denim precincts in each store, and spanking new brand imagery to appeal to the fairer sex.
"We did some research and we found stores needed to be more contemporary and female-friendly. Women felt the old look was a bit macho, so the new stores are more neutral and designed to make product the hero."
Hot on the heels of the new design, Jeanswest also recently opened a new concept store called Jeanswest Express within the Melbourne University campus. Another new concept is due for launch into Melbourne and Sydney around May, although Younane declines to give details.
Boosted by all this novelty, along with the government's stimulus efforts, customers have been flocking to the brand, while a new CRM system designed to make data mining more accurate will capture their spending patterns to keep repeat business strong.
A sense of renewed enthusiasm has also translated to staff at Melbourne head office and throughout stores.
"We didn't have an integrated talent management system before, but it's happening now, with a new leadership development program. Hopefully the future of this company will be much more about bringing people through, reducing turnover and being equipped to identify and work with emerging talent. We're already seeing results. Some of our stores used to have 100 per cent turnover a year, which has now been reduced to 50 per cent."
With parent company Glorious Sun based in Hong Kong, Jeanswest is also rapidly gaining international traction. New international markets apart its existing presence in parts of Asia include Dubai, Saudi Arabia and Kuwait, while there is also potential in South America, South Africa and India. Meanwhile, concerns about the wider economic picture are simply grist to the brand's mill, Younane says.
"Into 2009 the weak Aussie dollar is the biggest issue for us, because of the knock-on effect on margin. However now is the time to stay focussed on our strategy so we can actually capture market share. In a downturn it's the brands that consumers trust that win out."
He's quick to add that he isn't in denial about how tough the GEC is likely to get. It's just that he doesn't like dwelling on it.
"What I'm saying is let's be aware, but not let it distract us. Acknowledge it, but move on. Don't let the economy be an excuse."