GAS is a leading Italian premium apparel brand owned by Grotto S.p.A and promoted by the Grotto family. The founder, Mr Claudio Grotto, started his business in fashion in the early '70s. In 1986 the Company was incorporated as Grotto S.p.A. and beginning in 1990 commenced a new phase: which was the launch the very first internally produced GAS collection. The brand has strengthened its reputation by setting fashion trends across 56 countries and 3000 points of sale. Foreign sales are steadily growing thanks to a targeted sales strategy that receives the support of six European branches (Italy, Germany, France, Spain, United Kingdom and Hungary), the Japanese branch in Tokyo, the Hong Kong branch for the Far East area and the newly born GAS India. The Company has a strong Vertical Retail strategy that is being implemented on a global scale.
The GAS brand in India was launched in August 2007 by Raymond Limited in New Delhi. GAS' retails a lifestyle collection that includes its core heritage in premium denim clothing. The brand seeked to offers Indian fashion patrons an incredible fusion of contemporary international fashion and quality clothing that represents GAS values of passion, positive thinking, sensuality and essentiality.
With a total investment of approximately Rs. 500 million, this joint venture was supposed bring together Grotto S.p.A's proven expertise in design and managing a successful brand and Raymond Ltd.'s expertise in apparel brand building and retailing along with its vast distribution network. Besides exclusive stores, GAS is retailed through several multi-brand outlets across the country.
Targeted at high purchasing power, fashion-intelligent consumers, men and women who look for great quality and style with which they can express their own personality. The apparel is priced between Rs.1500 and 8000.
The brand however has run into troubles 2 years after launch and there have also been news in the media about Grotto evaluating the option of quitting the JV.
Analysing Positioning
Since this is a little complex analysis lets take the identity-image route to analysis. Apart from other things this will also present the problem and solution in a more structured manner.
IDENTITY: The core identity of GAS revolves around two constructs namely “essential’ and “sensual”. The brand tries to position itself in the market place around these two constructs. The brand has been very successful in the west because of its positioning on these dimensions so the company deemed it fit that the brand should be brought to India as well. However it seems the company or its JV partners in India (Raymond) did a wrong assessment as to how much important these constructs are to the Indian customers. There are some major problems in the brand logo too. The double rainbow logo is good as a metaphor for synergy or convergence but not sensuality…ateast not in the Indian context. Moreover the logo colour hardly has any connotations of sensuality in it. Also the name GAS doesn’t seem to have an element of sensuality in it …atleast not to me. The stores do not exhibit the exclusive feel that should have been typical for a brand priced at Rs.1500-8000. It is important to note here that the identity may have been perfectly fine in some other culture, but here in this culture the image it will eventually form is likely to be different from that intended. (This is because each culture’s perceptual process is conditioned according to the fundamental BVC of that culture.) *BVC stands for beliefs,values,customs.
IMAGE: The brand is most likely to form a very confusing image in the minds of the consumer this is because of the confusing identity. For eg the products are priced high but the store ambience doesn’t reflect that. Confusions in the mind of the customer as to what the brand stands for - is it for sports wear, formal wear, day wear, night wear, casual wear etc etc. The brand is available in exclusive showrooms as well as multi brand outlets this adds to the existing confusion. But the major problem leading to a confusing image is the fact that the brand’s positioning is very unclear, customers simply “can’t see” what the brand is, what it stands for and for whom it is. Unless a major revamp is done the brand is unlikely to become effective in near future.
Someone needs to convey this to Mr.Grotto that changing JVs isnt going to change the problem....repositioning the brand will.