Product details

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Abstract

The 83 year old Chennai-based Nalli Group traversed a long journey from being a 'family-owned and run' single store brand for iconic silk sarees of Kanchipuram in 1928 to INR 5.5 billion Empire in 2011, straddling across various retail formats. The family-owned brand strived to uphold the principles on which it was built while moving with times shrugging the diffidence to put its expansion plans on the fast track since the third generation owner took charge of the business. The owners believed that personalised customer service and job satisfaction were the keys to build a loyal customer base, in addition to innovation. In line with next generation wants and wishes, the deep rooted traditional retailer, put the expansion plans on the faster pace, besides breaking the family tradition to involve his granddaughter, Lavanya Nalli for the first time, and even letting her work outside the family business for few years. With a modest 24 stores across major metros in India, the retailer, kick-started expansion plans to target Tier 2 cities where the growth was expected as modern retail was making inroads of late. Diverting from another tradition of relying on word-of-mouth, the retailer began to spend heavily on advertising and promotion. Analysts were of the opinion that Nalli had done very little to build itself into a 'true retail brand' and was still perceived as a local brand in Chennai with limited awareness and limited appeal. Although the brand was able to draw the attention of the rich and famous and built several loyal customers who shopped at the store for generations together, analysts felt that Nalli needs to redefine its unique value proposition to succeed in modern retail business and evolve a brand strategy and architecture to avoid being running into the risk of 'having done too little, too late.'

Time period

The events covered by this case took place in 2011.

Geographical setting

Country:
India

Featured company

Anonymous company no. 1
Industry:
Textiles and apparel retail

Featured protagonist

  • Lavanya (female), Vice President

About

Abstract

The 83 year old Chennai-based Nalli Group traversed a long journey from being a 'family-owned and run' single store brand for iconic silk sarees of Kanchipuram in 1928 to INR 5.5 billion Empire in 2011, straddling across various retail formats. The family-owned brand strived to uphold the principles on which it was built while moving with times shrugging the diffidence to put its expansion plans on the fast track since the third generation owner took charge of the business. The owners believed that personalised customer service and job satisfaction were the keys to build a loyal customer base, in addition to innovation. In line with next generation wants and wishes, the deep rooted traditional retailer, put the expansion plans on the faster pace, besides breaking the family tradition to involve his granddaughter, Lavanya Nalli for the first time, and even letting her work outside the family business for few years. With a modest 24 stores across major metros in India, the retailer, kick-started expansion plans to target Tier 2 cities where the growth was expected as modern retail was making inroads of late. Diverting from another tradition of relying on word-of-mouth, the retailer began to spend heavily on advertising and promotion. Analysts were of the opinion that Nalli had done very little to build itself into a 'true retail brand' and was still perceived as a local brand in Chennai with limited awareness and limited appeal. Although the brand was able to draw the attention of the rich and famous and built several loyal customers who shopped at the store for generations together, analysts felt that Nalli needs to redefine its unique value proposition to succeed in modern retail business and evolve a brand strategy and architecture to avoid being running into the risk of 'having done too little, too late.'

Settings

Time period

The events covered by this case took place in 2011.

Geographical setting

Country:
India

Featured company

Anonymous company no. 1
Industry:
Textiles and apparel retail

Featured protagonist

  • Lavanya (female), Vice President

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