Khimji’s Luxury & Lifestyle Stores, perhaps the most visible part of the Khimji Ramdas Group, are franchisees for some of the most prestigious luxury and  lifestyle brands in the world. Over the years, Khimji’s  have become synonymous with quality shopping in Oman. Khimji’s are renowned for retailing Luxury and lifestyle brands. Vistas spoke to Vivek C. Pande – CEO of Khimji’s  Lifestyle group to understand what goes behind retailing of luxury and lifestyle brands.
Excerpts:

Please give us an overview of retailing in the context of your company. What are the brands/goods your retail? What is your retailing strategy?

At Khimji’s Luxury & Lifestyle (KLL) position ourselves as retailer of ‘world’s best brands under one roof’. Our approach can be classified as ‘narrow and deep’ as we cater primarily to an elite clientele who appreciate the best and settle for nothing less.  Khimji Luxury & Lifestyle Stores represent perfumes from Chanel, Penhaligon’s, Caron, L’Aritsan Parfumer, United Colors of Benetton; household section from Moulinex, Fissler, Coleman; linen from Thomaston and Mora; luggage from Samsonite; writing instruments from Cross and Sheaffer; sunglasses from Ray-Ban, Sunglass Hut and Maui Jim; photographic equipment from Nikon  and Crystal from Swarovski. The exclusive Swarovski boutique also has a distinguished collection of the finest crystal in the world.

Does the coming of Hypermarket chains in Oman, pose a threat to stand-alone luxury & lifestyle  outlets like yours?

Life style products across the world are marketed to niche markets mainly, and this doesn't change in Oman. Specialty stores not only allow the products to be reached to the customers but also showcase the brand, its true value and differentiates it from other brands. For e.g. a Swarowski store will create an ambience and an aura for the customer on a subliminal level, it will allow the customer to appreciate the wide range and variety of the products and will also get a detailed information from subject matter experts in the store. Such an  experience is unlikely to ever happen at Hypermarkets . For instance, ‘Chanel’ will not allow the products to be listed in a Hypermarket as it will diminish the brand positioning and the perceived value.
 
Speciality store are present as stand alone stores in shopping malls. For e.g. Samsonite store at Muscat City Centre. Products sold in speciality stores are premium products and will not be sold in hypermarkets , this helps avoid the distribution and price conflicts.

Where does Oman stand today in retailing? How big is retailing in Oman, it in your experience?

Retailing is poised to be a big thing in Oman and the first signs of the same are already visible by the interest level of so many new players entering the market every day. With the economy in a solid growth path the disposable income of the population is on the increase which would support the retail industry in a big way.

What do you think needs to be done to make the industry more competitive? How many big players can the market support?

It is not possible to put a number to this. Each retailer has to have a Unique selling proposition (USP) for his target segment in order to survive.

Is the availability of trained manpower an issue?

Yes, it is a challenge especially for specialized retailers like us, were a lot of in-depth product knowledge is required as we deal in high involvement products. We have a proper manpower plan in place to overcome this issue.

What about retail-related activities such as, retail supply logistics, warehousing, sourcing and merchandising management that  are seen as absolutely essential if the front-end retail business is to take off on a meaningful scale across the country?

These are all necessary for retail trade to flourish, but in Oman we are still in an early stage. However, we are sure these would develop further, with retail volumes picking up, justifying the economies of scale. The main challenges however would be lack of retailing space and world class interiors. Also, there needs to be more investment in infrastructure and manufacturing.

Where do you see the Oman retail business five years from now
?
Five years ago, we had departmental stores selling a wide range of products, which catered to one customer's many needs however the service and range the customer could choose from, was limited.

 Now, at Khimji’s we have reinvented our marketing strategy and are going with specialty stores which specialize in a specific range of merchandise and related items. These stores however have extensive width and depth of stock in that specific range and provide high levels of service and expertise. I feel that departmental stores and specialty stores will still co-exist and will complement each other, as they will together give customers added value and choice.

Retailing in Oman will be a big thing five years from now. The activity will go beyond the Muscat region to spread geographically to high growth markets like Sohar. But the facilities need to grow at a faster pace in places like Sohar and Salalah. With the increase players in the market the customers will have a wide selection of products and services to choose from, at value prices proving again the old cliché that ‘the customer is the king’

Is the growth of tourism in Oman, helping the lifestyle and luxury retail segment?

Yes, to some extent. Tourism in Oman has grown at a rapid pace it has surely complimented retailing; however, there is still a lot of ground to cover, for Oman to become a premium-shopping destination. At the moment there are tourists buying lifestyle products from Oman, some of the strategies adopted to attract this segment is promoting credibility and authenticity of the brands that are sold here. Customers can be guaranteed that the products brought from authorized dealers in Oman are authenticated. The brands are promoted from the airport itself where there are billboards put up, which helps to educate customers of the brands we have to offer. The prices are very competitive too when it is compared it to the international market.  This sector has grown over the last couple of years and the efforts the government is making to bring in tourists will help to further develop this market, like in the neighboring  Dubai where of the population of 1.6 million, for every one resident there is one tourist, and the large volume of retailing of lifestyle products is done to that.