Mumbai:-How do retailers in high fashion sustain profits over the long term? Across segments, individual players had their own solutions for a highly unpredictable and high-risk market.

For retailers selling apparel, and lifestyle products such as footwear, baby clothing and related products, costs involved are high because of the small lots manufacturers have to make, the frequent changes required in most products, and rather specialised manufacturing required and the unpredictability of the market.

Lowering costs in these areas is a key challenge — through supply chain efficiencies, high-quality machinery and investing in ambience, which needs to be refurbished on average every 4-5 years.

In addition, manpower training, a popular refrain all through the Indian Retail Forum, and predicting trends are other issues that need to be tackled.

Retailers are also changing traditional methods of sale in showrooms. For instance, Lifestyle's showrooms are offering whole solutions in furniture — not just parts of a bedroom or dining room, but everything ranging from fixtures to drapes to furniture.

According to Mr Bijou Kurien, CEO, Titan Industries, for its watch and jewellery sales, the company was keenly targeting impulse sales. He said high street and mall modes of sale offered vastly different experiences — malls attracted younger customers who were more fashion-conscious and prone to impulse buying, whereas purchases from high streets were planned.

Though footfalls were very high, the mall pattern was highly unpredictable and weekend traffic often proved unmanageable. Frequent changes in mall designs and displays were essential. However, it was impossible to do without either.

Mr Rajiv Handa, Retail Head, Tata Teleservices, said that customers wanted to accessorise handsets and needed newer designs more frequently. Catering to diverse needs, he said, posed a huge opportunity. The company already has a huge chain of stores that offered the exclusive sale of telecom products under the Tata Teleservices brand. It now offers its services in about 1,505 multi-brand outlets. It also has a second format which acts as a one-stop shop offering a range of services.

The multi-brand outlet model, he said, had led to a 20 per cent increase in sales through the value-addition offered.

For clothing brands, different models suit different players. Sourcing its clothing range from overseas considerably raised product prices. According to Ms Reetika Dalal, Executive-in-charge, Forbes Gokak Ltd, once the company became the licensee of the brand, it moved manufacture to local companies, worked closely with them and was able to bring down costs substantially. As a result, the company had not spent much on advertising or promotions. It had instead invested in before and after sales and creating ambience.

She added that the company holds its own stocks and does not rely on distributors or franchisees, which has helped the company retain its brand image and position itself very clearly.