A different Soch

You are an organised ethnic wear brand targeting women in a market where the unorganised sector is 10 times larger. You are also competing against western wear for attention. Western wear for women has invaded the workplace due to some practical reasons — one does not have to contend with the dupatta or the pallu of a sari getting stuck under the wheel of an executive chair. Then, if you are travelling in a Mumbai local, western wear is much easier to manage.

The price points also favour western clothing. While the average price for a western outfit falls in the range of ₹1,200-1,400, that of ethnic wear ranges above ₹1,800.

Still, Soch, which prides itself as an Indian fashion brand, is growing by leaps and bounds. It already has 48 exclusive branded outlets apart from presence in 16 multi-branded outlets. Vinay Chatlani, MD and CEO, Soch, says the brand will see five additional stores by the end of the year and the ₹250-crore business is growing at a healthy pace. With many colleges insisting their students wear ethnic and many companies introducing an ethnic wear day once a week, Chatlani believes the opportunity will only get bigger.

What differentiates Soch (‘think’ in Hindi) from the rest of its competition is the way the brand thinks differently about its business. For instance, the retailer has a stock turn rate that’s higher than the competition. Stock turns are defined in retail parlance as the number of times the inventory turns over every year. For instance, if a store carries stock worth ₹1 lakh and manages a sales turnover of ₹3 lakh, then the stock turn of that business is 3.

In the case of Soch, when the industry average in apparel retail is 2.5 to 4 stock turns, Soch always manages to keep its at 4-5. That’s by keeping store inventory at an optimum level, say executives. Even for its end-of-season sale, Soch takes the early flight out. It announces its sale at least a week or two before the rest of the industry. That ensures that it gets advertising space prominence and also brings customers with a loaded wallet — it being the first sale of the season. Probably goes to show that competitive advantage need not necessarily be restricted only to the merchandise on display.