Ragtrader regularly catches up with a previously profiled brand to see how it has moved with the times. Here Belinda Smart talks to Club 21 marketing & communications manager Lucy Owens.
Company: Club 21 - Australasian licensee for A|X Armani Exchange and CK Calvin Klein marketing & communications manager: Lucy Owens
How has the company evolved in the past five years?
A key development during the period was the launch of CK Calvin Klein into the Australian market in July 2007, entailing two stores in Melbourne and one in Sydney. Also as a company we now have a structure in place, competency in people, strong leadership, and training programs. As a whole we now have a Club 21 culture.
How have the company's challenges changed in five years?
Five years ago A|X Armani Exchange's strategy was very Asian influenced and not applicable to the Australian market which presented its own challenges. Now, the challenge lies in the fact that due to our licensing agreement we have only have four stores in the Australian market, and while we see opportunities to open more stores throughout suburban locations, due to the international strategy we are restricted to CBD locations.
How has the Australian offer evolved?
In terms of A|X Armani Exchange, the buying strategy back then was not strategic in understanding the Australian customer and had a strong Asian influence, whereas now, the range is bought with the Australian customer in mind. Back then, A|X Armani Exchange had a clear point of difference in the market place in its core basic range and price point. Now, we also invest more of our buy allocation into fashion pieces; because we've identified that our customers want them.
How has your retail structure changed?
A|X Armani Exchange five years ago had five stores, now Club 21 operates four A|X Armani Exchange and three CK Calvin Klein stores, with the potential for CK Calvin Klein as department store concessions.
What was the retail/wholesale climate like for your business five years ago? How has it changed?
We were not achieving budget sales and growth due as the strategy was not right for this market. Now we have a clear understanding of the Australian market across all aspects of the business, from visual merchandising to buying, marketing and operations.
How have your marketing and promotions strategies changed?
There was no strategy back then; basic advertising was being used, for example in bus shelters and small publications. Also it was unmeasurable which did not help drive sales. Today, a clear marketing strategy for each brand - and the use of data collection - is driving traffic into free standing stores. The use of email and the internet has also helped us achieve sales growth.
How has your approach to recruitment and training changed?
In those days the company was not hiring the right people, so there was a lack of appropriate competencies, whereas now we have the correct policy and procedures in place and we are pro-active in succession planning. This is important given the growth of the company. We had around 40 staff members back then, and now with the introduction of CK Calvin Klein we have close to 100 staff members.
What about retail technology?
Stock loss was excessive five years ago. It was well under the company benchmark. Now, we manage it to one per cent of sales with a target of 0.5 per cent. We have achieved this through staff training, leadership and awareness.
What has been the high point in the past five years?
The launch of CK Calvin Klein
Any headaches?
The fact that back then our growth potential not being realised.
Armani Exchange at leading shopping centre Melbourne Central.