Robinson to rebrand along lifestyle lines

BANGKOK: Thailand's third-largest department store chain, Robinson Department Store, is repositioning itself as a lifestyle store after a survey revealed that customers were more concerned with image than low prices.

The finding reinforces the view that major cities in Asia have reached a level of affluence which necessitates the need to compete on differentiation as well as on price.

Besides adding a home-improvement section called Home Universe, the company will introduce 100 new international and domestic brand names to its 17 stores, in a move which will be accompanied by the launch of a thematic advertising campaign.

"We are upgrading in terms of our products, look and atmosphere, said Paul Millar, vice-president for retail business at the department store chain. "We will look a lot brighter, cleaner and crisper, he said.

Service will also be an important element in the new Robinson concept, he added, which would be offered "at a very personal level to inform, help and engage a customer to chose the right product to suit them".

Millar denied that Robinson was abandoning its middle-class orientation.

He said that the company was "emphasising that market by responding to the needs which emerged from a survey the group had commissioned to a Taiwan-based French research company.

"We think it's a good niche market and no one is identifying with these customers as clearly, Millar said.

The middl class market segment in Thailand refers to those earning between 10,000 baht and 30,000 baht a month.

"We have been working exclusively with Dentsu Young & Rubicam since February and we will be ready to relaunch the Robinson brand at the end of 2002 or the beginning of next year, Millar said.

A marketing budget of 30 million baht (about US$700,000) has been set aside for the three-month launch period.

The upcoming campaign will be unlike previous Robinson marketing communications initiatives, according to Millar.

He said that the new marketing thrust would be thematic and "have a more lifestyle feel, identifying with the customer and how they live".

The department store would also be making significant use of targeted direct mail to reach existing customers. "We will be reaching those who are loyal to Robinson rather than sending out blanket leaflets, he said.

Sales this year are expected to rise by about 10 per cent to nine billion baht (US$209 million).