Unveiling Swiss Military’s Proactive Strategies: Driving Sales Growth in the Indian Market
Anuj Sawhney, MD of Swiss Military on Overcoming Challenges, Pioneering Sustainability, and Charting a Visionary Growth Trajectory in an Exclusive CXOToday Feature
- What specific actions did Swiss Military take to achieve sales growth?
Our overall approach, encapsulated by the catchphrase “We have just begun,” reflects our robust entry into the market, achieving over 70% year-on-year growth in FY 2022-2023. By addressing unmet customer needs with affordable, multi-utility products, we have cultivated a significant “Impulse Buy” factor. Swiss Military’s success lies in its unique positioning as a global lifestyle brand, employing word-of-mouth marketing to minimise costs and provide customers maximum value. The comprehensive expansion plan covering Tier 1, Tier 2, and Tier 3 locations ensures our brand resonates with diverse preferences across the Indian consumer landscape.
Swiss Military’s sales growth is a result of our proactive strategies in the ever-evolving Indian market. Introducing a range of new products in Travel Luggage, including Backpacks, Sling bags, Laptop Strollers, Duffle bags, and Travel Accessories, has expanded our portfolio and captured the interest of a diverse consumer base. Our strategic partnership with Flipkart to launch the ‘Sky Scape’ brand in the Luggage & Travel Gear segment is a crucial step toward reaching a wider audience and fostering growth prospects.
Additionally, our commitment to technological advancement is evident through the implementation of an SAP-based Enterprise Resource Planning solution and a new data management system. These IT upgrades enable efficient data handling, empowering data-backed decisions that contribute to sustained sales growth.
- What were the main highlights of this quarter’s performance for Swiss Military? Can you provide insights into the sales strategies that Swiss Military plans to implement in order to sustain its growth momentum?
In the fourth quarter of FY 2022-23, we achieved outstanding financial results, with a total revenue of Rs 43.55 Crore and a profit before tax of Rs. 2.61 Crore. On a standalone basis for the fiscal year ending March 31, 2023, Swiss Military reported remarkable growth, exceeding 100% in both topline and bottom line, showcasing our resilience and strategic acumen in navigating market volatility.
This exceptional performance includes significant milestones and strategic achievements, such as a robust entry into the Indian retail market, resulting in over 70% year-on-year growth. Key highlights involve surpassing key performance indicators and establishing a strong network of over 1,000 retail touchpoints within a year of market penetration.
To sustain this momentum, we are implementing comprehensive sales strategies. Our focus includes technology integration, efficiency improvement, sustainability initiatives, and enhanced customer engagement as pillars for future growth. We are committed to exploring innovative approaches to further improve top line growth and profitability.
The expansion strategy involves multiplying our product range, entering new territories, and initiating manufacturing operations to introduce global best sellers at competitive prices. Our emphasis on a comprehensive retail presence throughout the Indian subcontinent, particularly targeting Maharashtra, Gujarat, and South India, demonstrates our commitment to understanding the evolving consumer landscape.
Sales strategies revolve around offering innovative, multi-utility products that address unfulfilled needs. Our emphasis on value proposition ensures that our lifestyle goods enhance quality, provide long-term durability, and offer cost-saving advantages. Our forward-thinking approach reflects our commitment to an omnichannel experience, enhanced online presence, and strategic partnerships.
Sustainability remains a key focus, with the introduction of eco-friendly alternatives. These strategies align seamlessly with Swiss Military’s core values of innovation, affordability, and customer-centricity, positioning us for sustained growth and market leadership.
- What were the major challenges faced when introducing the brand in the market?
Despite being leaders in corporate gifting, inflight sales, and e-commerce, launching the brand in the Indian sub continent in 2015 brought its unique set of hurdles. Foremost among these challenges was comprehending the unique nuances of the Indian market—a task that demanded time and precision. From establishing a diverse product portfolio to fine-tuning our advertising strategies, every step was crucial in navigating the intricacies of this dynamic market.
The price sensitivity of Indian consumers presented another challenge. Striving to position ourselves as a premium brand while aligning with the budget-conscious nature of consumers required a delicate balance. Our focus on affordability without compromising on quality became pivotal in addressing this challenge.
Navigating through intense competition in the market was yet another hurdle. To carve our niche, we prioritised technological innovation in the innerwear space, ensuring optimal performance and standing out amidst competitors.
The ever-evolving consumer landscape in India added complexity. With a growing middle class and shifting purchasing power, staying attuned to innovative market trends became imperative. Despite these challenges, our commitment to a customer-centric approach, emphasis on affordability without compromising quality, and continuous adaptation to market trends position us as a frontrunner, meeting the dynamic demands of India’s discerning consumers.
- How has Swiss Military incorporated advancements to improve its product offerings and enhance customer experience?
Swiss Military prioritises product innovation to enhance both offerings and customer experience, utilising technological advancements in manufacturing, materials, and design. This commitment is exemplified by our dedication to sustainability, embodied in our apparel offerings “EKOSWISS” range which incorporates eco-friendly alternatives, such as recycled PET products, micro-modal, or bamboo cotton fabric. By doing so, we are trying to actively contribute to reducing plastic waste, promoting a circular economy, and resonating positively with modern consumers. These choices align with the principles of sustainable tourism, offering customers not just quality and durability but also a brand ethos that values environmental stewardship.
Moreover, our global best-seller sub-categories of Backpacks, Sling bags, Laptop Strollers, Duffle bags & Travel Accessories offer a holistic and dynamic range to the Indian market. Beyond crafting exceptional products, we actively analyse customer behaviour and market dynamics. This understanding allows us to fine-tune our offerings, staying attuned to customer preferences and market trends. The commitment to customer satisfaction extends beyond the point of purchase, with Swiss Military providing robust after-sales service to enhance the overall customer experience.
Additionally, we ensure easy access to our products through various channels, be it physical stores or online platforms. This approach reflects the brand’s dedication to innovation and customer-centricity, offering customers a seamless and convenient shopping experience.
- What measures has Swiss Military implemented to enter tier 2 and tier 3 city markets? How does the company plan to balance product adaptation and pricing to meet these market requirements without compromising on quality?
Recognising the surging demand for premium goods in non-metro areas, Swiss Military is actively pursuing Tier 2 and Tier 3 locations in India with tailored measures. Having successfully established a foothold in central, east, and northern markets, our commitment extends to achieving a nationwide presence, with a specific focus on untapped western and southern markets.
Understanding the Indian market’s price sensitivity, Swiss Military places paramount importance on offering value for money. Through extensive research and development in India, we identify unmet needs and design products that not only meet these demands but also uphold our commitment to innovation, affordability, and customer-centricity. This has resulted in creating a plethora of innovative products such as the UFO hard case series backpacks and slings, the Multi-Utility Laptop Overnighter bags, the energy-saving Induction cooktops, the front pocket Leather Flip Wallets, or even the Modal series Undergarments. Our just-in-time production strategies ensure the delivery of premium products at the lowest possible cost.
In addition, Swiss Military adopts an omnichannel distribution strategy, ensuring product accessibility through various channels, including physical stores and online platforms. We already have a strong presence on Amazon, Flipkart, and Myntra, and now we have an ambitious goal to expand our retail presence to over 10,000 shops in the next fiscal year, compared to 3,000 in the previous year. This multifaceted approach reflects our dedication to meeting the diverse needs of consumers across different regions of India.
- What steps is the company taking to differentiate itself from competitors and establish a brand identity in the market?
To set ourselves apart from competitors and craft a distinctive brand identity, Swiss Military is executing a comprehensive strategy. We’re revamping our marketing approach, leveraging innovative strategies like an impactful social media campaign to project a dynamic brand image. Our focus is on accentuating the value proposition of our lifestyle goods, emphasising how they enhance the quality of life, ensure long-term durability, and provide cost-saving advantages.
Operational efficiency is key to competitive pricing, so we’re actively optimising costs and streamlining operations. This includes the launch of integrated warehouses to support expansive Pan-India operations. Elevating our online presence, especially through targeted social media campaigns across all product categories, is a pivotal aspect of our strategy.
A customer-centric approach is at the core of Swiss Military’s differentiation strategy, balancing affordability with product quality. This approach resonates with India’s price-conscious consumers, positioning us as a frontrunner in meeting their specific needs. Additionally, we place significant importance on team building initiatives, enhancing team spirit, and synergising organisational benefits to create a solid foundation for sustained success. Through these concerted efforts, Swiss Military aims not only to stand out in the competitive landscape but also to establish itself as a leader in catering to the diverse demands of the Indian market.
- Could you provide details on how Swiss Military integrates sustainability practices into its business operations and product development?
At Swiss Military, we are dedicated to integrating sustainability practices into our business operations and product development. We recognise the significant environmental impact of the lifestyle and fashion industries and acknowledge the urgency of adopting sustainable practices.
One key initiative is the introduction of the “EKOSWISS” range, featuring eco-friendly alternatives. This range includes products made from recycled PET materials, micro-modal and bamboo cotton fabrics, demonstrating our commitment to reducing plastic waste and promoting a circular economy.
Furthermore, we place a strong emphasis on the “Make in India” initiative. By heavily investing in its own manufacturing facilities in India, Swiss Military aims to bring global best sellers customised to Indian tastes at surprisingly low prices. This aligns with sustainability goals and supports the government’s initiative to promote domestic manufacturing and reduce the environmental impact of supply chains.
Swiss Military values collaboration with various stakeholders, including industry partners and government bodies, to drive innovative solutions and create a more sustainable industry. The commitment to sustainability extends beyond product development to encompass the entire business model, reinforcing Swiss Military’s dedication to responsible and eco-friendly practices.
- What are the key growth projections for Swiss military across different product categories and markets for the upcoming fiscal year?
Swiss Military has set ambitious growth targets for the upcoming fiscal year, strategically focusing on expanding its retail presence across the entire Indian subcontinent by March 2024. Our strategic vision involves a substantial expansion of our retail touchpoints, targeting a remarkable surge from our current market base to surpass 10,000 retail touchpoints within the next five years. This expansion will specifically prioritise the general trade segment while concurrently introducing large format stores. Additionally, we plan to establish exclusive brand Franchisee stores as a means to effectively showcase our extensive product portfolio. This aggressive expansion plan reflects a targeted 30% compound annual growth rate (CAGR).
In the upcoming phase of retail expansion, we have outlined a specific focus on Mumbai in West India and South India. Additionally, we plan to enhance our presence in the general trade segment, emphasising large format stores to showcase the diverse product portfolio. This strategic approach aligns with the objective of reaching a broader audience, especially in Tier 2 and Tier 3 locations, to cater to the escalating demand for premium goods in non-metro areas. We plan to double our manufacturing partners from the existing 10 in the current year.
Swiss Military acknowledges the dynamic nature of the business landscape and commits to maintaining an agile and growth-oriented approach. With a positive outlook for the upcoming years, Swiss Military remains confident in its ability to not only meet but sustain the projected growth trajectory. This commitment reflects our adaptability to emerging trends and challenges, ensuring a resilient and optimistic outlook for the future.
