MARKET
In Sri Lanka in the mid 1990s, the lingerie market was transformed from being a basic clothing utility into a parade of vibrant fashion. Prior to that, the market was largely undifferentiated. The price point was a key determinant for success and the product offering was rather basic, with supportive styles and primary colours of black, white and skin tones. The market consisted of local brands.
The entry of Triumph marked a paradigm shift in terms of how lingerie is worn, perceived and marketed. Triumph created a fashion segment in an otherwise unsophisticated market – and it continues to lead and drive this segment today.
In a market which comprises nearly five million adult women, the branded lingerie segment is somewhat unexploited. Triumph enjoys a 15% penetration in the urban market. Lingerie marketing is still in its infancy and the market comprises a significant percentage of young adults. In the fashion segment, value growth generally outstrips volume increases. Triumph enjoys an estimated 27% value share in Sri Lanka.
Triumph is the only international brand – a challenger brand that continues to drive the segment by using the combined strategy of marketing innovation and experience. The main competition is from a well-entrenched local brand that competes on price alone. Customers who previously focused on functional, need-based shopping have been converted to mood-based, occasion-led shoppers through a variety of choice products and retail locations.
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ACHIEVEMENTS
A brand equity study conducted in the latter part of 2004 confirmed that Triumph, as a brand, holds a very strong position in the marketplace. Triumph is perceived as a highly visible, youthful brand that has injected new blood into the traditional lingerie market. Research also confirms that Triumph has reached aspiration-brand status in this market.
Triumph was the first to introduce two novel distribution concepts: network marketing and the establishment of exclusive lingerie boutiques to Sri Lanka in the mid 1990s. In a conservative market, Triumph revolutionised the retailing of lingerie by introducing open-display merchandising.
In recent years, Triumph has achieved double-digit growth in terms of revenue, volumes and operating profits. The key to this success has been the management of its multi-channel distribution network which has enabled the company to balance market development, cash flow and profitability.
The setting up of the Triumph Boutique enabled the company to continue to test new challenges such as price resilience, style acceptance and colour preferences, before rolling out to broader retail markets. It also helped drive its fashion positioning, through the concurrent introduction of innovative concepts launched regionally at its boutiques.
In 2005, Triumph received a Bronze award for brand excellence and a special award for the most creative entry, from the Sri Lanka Institute of Marketing (SLIM). Since 2000, the company has received accolades at SLIM’s annual advertising awards each year for locally produced print, radio and TV commercials. The first ever campaign produced to champion the Beginners Bra programme won a Gold at the SLIM awards.
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HISTORY
Triumph is a family-run private business founded in Germany in 1886 by the Spiesshofer and Braun families, who are still actively involved in its management. It grew from modest beginnings as a classic corsetry manufacturer in Germany to a multinational corporation which is still under private ownership. It is one of the leading intimate-wear producers in the world, with a turnover exceeding US$ 1.6 billion and a workforce of 39,000 people worldwide. The company has operations in 125 countries, with the strongest presence being in Japan, Germany and the UK.
Triumph has four power brands: Triumph, Sloggi, Bee Dees and Valisere. It first entered the Sri Lankan market through a joint-venture partnership and as a subsidiary of a local blue-chip company, MAS Holdings. A factory, Bodyline, was set up to manufacture and export lingerie. MAS Holdings is Sri Lanka’s largest apparel exporter, with a very strong regional presence. In 1995, Triumph International Lanka, a private company, was set up to undertake the retailing of lingerie in the Sri Lankan market. MAS continued to manufacture for the local market as well.
So Triumph revolutionised the dormant lingerie market through the use of bold product-marketing strategies that differentiated its products from the competition.
Its first exclusive lingerie boutique was launched at Majestic City, a heavily patronised shopping mall. This channel served the twin purposes of creating a lingerie-shopping ambience and leveraging the brand’s image by making available all innovative styles launched in the region.
The third innovative channel was based on the Avon model of direct sales. Being a premium brand that required education, a network marketing channel was an excellent means to penetrate the market. It also offered women self-employment opportunities. By enrolling with Triumph’s direct-sales operation, women were presented with an opportunity to become financially independent.
Triumph’s service orientation has helped it pioneer the concept of a one-of-a-kind fitting room at its boutiques, offering a full-service measurement, product fit on, a pleasing ambience, and trained and courteous staff. Presently, 55% of its business is driven through retail channels, while the remaining 45% comes from the combined channels of direct sales and Triumph Boutiques.
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PRODUCT
In the past three decades, lingerie has experienced intense transformation not only in Sri Lanka but the world over. Lingerie has risen from being an unnoticed item of underwear to what has now become a sensual product. Thanks to the creativity of designers, the line between underwear and outer-wear has become blurred. In fact, outer-wear fashions are now being challenged by the latest designs in underwear!
Leading underwear trendsetters like Triumph have been instrumental in fuelling this transformation. In Sri Lanka, Triumph is positioned as an innovative fashion brand for ultimate wearing pleasure by contemporary women. As a fashion brand, it is priced at a premium and targets contemporary women within the socio-economic classes of A, B and the top end of C.
Triumph has redefined the meaning of comfort in the Sri Lankan market. Before the entry of Triumph, comfort was synonymous with fabric. Triumph has proved that comfort is a function of a perfect fit. This was achieved through cup and bra-size variations, styles and the use of innovative fabric to complement its products. Triumph was the first to permit fit-ons of lingerie at its boutiques and other key outlets. Its brand benefit is confidence.
In a market where the average price point of the mass-market brand is US$ 2, Triumph’s price point commences at US$ 5 and extends up to US$ 30. Thus, there is a price point to suit everyone’s needs and aspirations. Triumph also has a product for every facet of a customer’s lifestyle – fashion, shape classics, everyday and other. It also markets beginner’s bras, and sports and maternity bras.
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RECENT DEVELOPMENT
At the turn of the twenty-first century, Triumph had a presence in almost every country in the world. The company now produces and markets foundation garments, lingerie, night-wear, swimwear, beachwear, sports and leisurewear.
In an effort to unify and strengthen its global positioning, Triumph has introduced strong branding at the retail level through the use of the red-wall concept and through merchandise branding through the use of hang tags.
Amongst the innovative concepts introduced at Triumph boutiques are the magnetic bra with a magnetic clasp; the cosmetic bra, using intelligent fabric, treated with Aloe Vera, sea cell or silk protein for moisturising and rejuvenating the skin; the T-shirt bra, adding a new dimension to clingy clothing; and the party bra, with its unique combination of being part underwear and part accessory.
And the most recent development – one that has revolutionised bra manufacturing – has been the one-piece bra. Traditional bra production requires the use of 40 components, while the one-piece bra is a single piece with no seams and fits like a second skin. Inspired by aerospace technology, the product is seemingly invisible, and the moulded cups are completely smooth inside and out. It is an ideal choice to be worn under evening dresses, clingy blouses and silky dresses. Another development is the legendary push-up bra that reveals a stunning cleavage. Variable straps provide flexibility to adapt to any fashion – from halters to strapless and multi-straps.
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PROMOTION
The company has adopted a two-pronged approach to promotions: communications and strong branding. Below-the-line activity is used as a primary tool and it accounts for 60% of Triumph’s communications budget. Activities have included the printing of product catalogues and dealer manuals used for promoting styles, disseminating valuable product information and data such as how to measure and selecting the right size for absolute comfort.
Direct-marketing activities have been used to promote dealer recruitments in direct sales and to publicise rewards and recognition schemes. Event-led promotions carried out at the Triumph Boutique have led to an increase in customer traffic and promoted the lingerie-shopping concept with much success. Triumph’s customer base over a period of three years grew by 200% and its conversion rate averaged at 90%. The Triumph Boutique, being an image store, does not offer any discounts. Every year, its ambience is changed to reflect diversity and enhance the shopping experience.
Triumph enjoys an advertising awareness of 74% amongst its target audience. Much of this is derived through below-the-line activities and the strategic placement of hoardings. In an effort to combat the competition, Triumph launched a beginner’s bra promotion in 2005, reaching schools directly with an educational programme. A special beginner’s bra catalogue was launched to supplement this effort and the range was complemented with styles to suit.
The powerful red-and-white logo has enhanced these marketing endeavours. Triumph’s brand presence has been felt at the retail level as a result of its open display, which comes complete with strong branding. Through the red-wall concept, a unified look has also been maintained. And hoardings at selected locations in close proximity to shopping malls have complemented Triumph’s branding strategies. All hoardings consistently feature an international model sporting lingerie and an entertaining tagline which has strong recall. The company is now focusing on strengthening the brand’s personality through PR, to complement its advertising and promotional activities.
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BRAND VALUES
Triumph is perceived as an aspiration brand and a fashion icon. The ultimate benefit offered to the customer is confidence.
As a brand, Triumph is built around four strong core values: quality, comfort, innovation and fashion. They give the brand a solid foundation, making it one of the world’s most successful intimate apparel brands. Triumph continues to differentiate by leveraging the brand values of innovation and fashion. It enjoys number one mind share, as confirmed by a brand-equity study.
Triumph’s philosophy continues to be people-centric. The company opposes any kind of discrimination on the grounds of sex, nationality, race or religion. It is committed to observing international human-rights statutes, both within its own product operations and among its suppliers.
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THINGS YOU DONT KNOW ABOUT TipiTip
♥ In 1959, Triumph International stunned the world by organising the biggest ever fashion show of ladies underwear in Berlin.
♥ Triumph is perceived as an aspiration brand by users and non-users, and it is perceived to be a fashion icon according to a recent study conducted by Quantum Research.
♥ Triumph uses intelligent fabric treated with ingredients such as Aloe Vera, silk protein and sea cell in its cosmetic-bra range.
♥ Underwear was first worn as outer-wear in 2002. The two categories are merging – and becoming almost indistinguishable! Outer-wear fashions are now being challenged by underwear designers!
♥ One in every four women continues to wear an ill-fitting bra!
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www.triumph.com
