MARKET
The retail industry in Sri Lanka is growing at over 20% each year. This growth is being driven by changes in purchasing habits and how people spend their leisure time. Branded retailers are capable of providing consistency in service and quality that others often cannot. The retail landscape in Sri Lanka has thus seen dramatic changes in sectors such as fast food, petroleum, electronics, supermarket channels and the fashion industry, to name just a few. With the entry of multinationals, higher customer expectations from retail services compel local retailers to keep pace with these changes – or close down.
Odel has played a leading role in first creating and then expanding the upper end of the fashion industry’s retail channel in Sri Lanka.
With a per-capita income in excess of US$ 1,100, the country is on the threshold of moving from a developing to a developed economy. In the Western Province and specifically in Colombo, where a significant proportion of economic activity takes place, customer expectations and disposable incomes are rising. Odel is, therefore, ideally positioned to leverage on this trend.
New aspirations of Sri Lankans, coupled with the increasing number of tourists visiting the country, has helped Odel grow – it can now be classified as a large business enterprise. Sales, which more than doubled annually in the early stages, has grown by an average of 25% over the last ten years. More recently, Odel’s revenue stream has stabilised at around 15% per annum.
Odel operates at the top end of the retail fashion market, where it has carved out a niche through a highly focused approach. Targeted at the upper-middle and higher-income groups, Odel has maintained its leadership position by providing a modern, world-class retail environment that has become the standard for the South Asian region.
With a wide array of products, Odel is now Sri Lanka’s only genuine department store.
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ACHIEVEMENTS
Odel is Sri Lanka’s leading fashion brand. Its ability to constantly innovate and offer something new to the customer each and every time has made it a firm favourite. A pioneer in its time, Odel forged a fashion revolution in Sri Lanka, ushering in designer labels and interpreting the latest trends from fashion runways in its offerings.
Its success lies in implementing a fully integrated range of activities, each of which has resulted in creating a special ambience within the department store. This consists of a modern interior design supported by friendly staff and world-class merchandising standards, coupled with a unique selection of local and imported products.
The Odel brand mantra is to inspire customers by providing trendy, stylish clothing and fashion accessories in an environment that is customer friendly, affordable and accessible. This brand vision, together with product, service and communication, has resulted in the creation of a consistent and powerful image. This brand vision has been translated easily into every aspect of its business.
Odel’s founder Otara Gunewardene has gained prominence as a pioneering entrepreneur. She has won a slew of awards – most notably, she has been bestowed the SAARC Woman of Achievement and the Jaycees TOYP awards, recognising her exceptional entrepreneurial skills.
And Odel’s advertising campaigns have won many prestigious Sri Lanka Institute of Marketing (SLIM) awards – they have also been featured in the local and international press, magazines and TV programmes.
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HISTORY
The origins of Odel go back to 1989, when a small retail outlet selling clothes was established at Dickman’s Road, in Colombo 5. Its founder, Otara, had returned from the US after completing her tertiary education and following a modelling stint in New York.
Today, Odel’s department store is a 36,000 square foot, lavishly appointed store that could be equally at home in any of the fashion districts of Milan or Paris.
In the 1980s, fashion was a stranger to Sri Lanka, where there were few internationally known brand names or world-class stores. Activity in the shopping segment was characterised by unimaginative interiors and products that were put together haphazardly.
From its inception, the brand Odel was not merely about buying clothes, but about a lifestyle choice being made by shoppers. Odel, which set out to create a new retail standard through meticulous attention to detail, positioned itself as the lifestyle brand in Sri Lanka.
From a core apparel range, the outlet began to stock items for the home. At first, these were highly selective to test consumer response; but subsequently, they were more liberal. This resulted in a need to expand store space further, which was done – and with it came a rapid increase in sales and the number of merchandise items on display. In order to consolidate and enhance the shopping experience, refreshments and food were then introduced. This resulted in the launch of the Odel Café, which was a huge success. Next, there was a need to attract select brands to the store. This resulted in the introduction of the bath and body-scrub range of products with the Lush franchise, Delifrance for food, Il Gelato for ice cream, Nihonbashi for Japanese cuisine and Dilmah for tea. Each retail partner was carefully picked – not merely to supplement the Odel brand and the range of products available, but also to enhance the Odel shopping experience.
This chain of events created the unique Odel experience, which attempts to excite and tempt shoppers – rather than stocking shelves and expecting them to merely walk in, buy an item and walk out. A coffee shop and a book corner complement the shopping experience with nooks where customers can indulge, making shopping a wholesome leisure activity. Odel has sought personal interaction with its customers and this has created a core group of loyal shoppers.
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PRODUCT
Odel prides itself on being a truly world-class department store that offers a one-stop-shopping experience – and more. Its departments cater to every whim and fancy of the discerning shopper. Odel offers shoppers of any age or inclination the promise of high quality. Its in-store décor has always been top-of-the-line. It invests in the best merchandising standards and provides training for its staff to maintain a high level of customer service.
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RECENT DEVELOPMENT
Having grown under the leadership of its founder, the organisation has realised the importance of professional management in order to maintain and enhance the customer experience at store level. This requires building and empowering employees throughout the organisation, which now comprises a team of 430 people. The store has also undertaken customer-satisfaction surveys to monitor its performance.
As the organisation grows and expands, it is confident that its employees will sustain and enhance the Odel brand. With this in mind, the organisation is carrying out an extensive revamping of its human-resource base and practices – its objective is to put in place a state-of-the-art outfit. This back office focus should result in a stronger organisational structure to support the needs of customers, as their expectations continue to rise. The ability of the organisation to adapt to these needs is the key to maintaining the uniqueness of the Odel brand.
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PROMOTION
Odel is at the cutting edge of design and contemporary living, delivered through its range of products, innovative displays and superior customer service. Substantial investment is made in store displays that are both stylish and eye catching, especially its décor for Christmas, and Sinhalese and Tamil New Year celebrations.
Continuous mystery-shopping and customer-care surveys ensure that staff at Odel understand customer needs and provide the desired level of customer service. Training programmes for staff to enhance customer service are being strengthened by way of higher levels of investment.
Regular fashion shows unveiling upcoming fashion trends offer shoppers an insight into the styles of tomorrow. In-store promotions and generous discounts for loyal customers are amongst the incentives drawing shoppers closer to the Odel brand. A bimonthly publication is circulated to loyal customers, to keep them informed of upcoming events and new developments in the store.
Odel’s advertising is contemporary in expression and on par with global developments. Billboards are the brand’s primary medium, supported by the print and electronic media. Effective public relations and a dynamic relationship-marketing programme have helped complement the brand’s advertising strategy and give Odel a holistic brand image.
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BRAND VALUES
Odel has achieved the status of an iconic brand with its tireless ability to reinvent itself at regular intervals. The Odel brand promise is to inspire customers with trendsetting styles and premium quality products which are available at affordable prices. To support this, the Odel retail experience consists of delivering new trends, stylish products, friendly staff, contemporary interior designs and merchandising, engaging presentations, affordable prices and simplicity.
The brand personality is therefore simple, yet sophisticated, in taste. It is trendy (through imagery), energetic (through the many activities in the store), friendly (through its staff) and international in its delivery standards.
Odel’s deep-rooted values makes it a strong competitor in the marketplace. These values impact its social responsibility and how its employees work together to keep the dream alive. Odel can claim to have a loyal customer base because it has retained its core brand value and not compromised on quality that has come to be synonymous with the brand.
Odel has been successful in carrying its brand values and philosophy through to all its endeavours, thus creating a uniform experience that affirms faith in Odel’s promise. Its ability to respond quickly to emerging trends has been a key factor in its success story.
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THINGS YOU DONT KNOW ABOUT ODEL
♥ Odel works with more than 3,200 suppliers. Some 1,500 of them are local small-scale entrepreneurs.
♥ There are 33,250 individual items in the store.
♥ 1.4 million people go through the store in one year.
♥ The Odel website attracts 12,850 hits each day.
♥ The name Odel was coined by combining the founder’s two names – Otara & Del.
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www.odel.lk
