Embracing Change New look found the second time around By Charles Mak A rebranding exercise is likely to affect every aspect of a company business so it pays to call on expert outside assistance Even the best-established brands sometimes need to find ways to update their image and spark new sales. For many companies in Hong Kong the time for that kind of change arrived as the year 2000 approached. The economic outlook was less certain, IT systems had to be upgraded, and the general mood leant towards a re-examination of what was needed to make a business successful in the 21st century. "Our own Chicks brand, which has been known in Hong Kong since 1953, was still selling well, but we decided it was time to try something new," says Robert Tam, executive director, Chun Au Knitting Factory Ltd. "We had seen what other companies had done to revamp their image and, therefore, undertook a careful internal analysis of the strengths and weaknesses of our brand before deciding what to change." This meant a detailed reappraisal of everything from the design and styles of the clothes to packaging, pricing, shop locations and decoration. "The intention was to look again at every facet of the business and force ourselves to have new ideas," Mr Tam explains. "Once feedback had been received, it was agreed we had to make the brand young again and bring a feeling of energy to our stores, while not losing our reputation for good quality and value." Implementation of the plan began in early 2000 with the introduction of a new range of colours and styles and a redesigned look for the shops. "We can admit now that it was not a resounding success," notes Mr Tam. "The in-store decoration we went for was a 'cyber look' which moved us too far away from our traditional image. Older customers wondered if it was still the real Chicks." During the planning process, special attention had not been paid to the needs and preferences of older customers, even though they were still expected to generate a significant proportion of monthly sales. All employees are encouraged to communicate openly when they have any ideas that will help the company Second thoughts Learning from their mistakes, the company went back to the drawing board. They came to the conclusion that change was wanted, but not too much at once. Also, they realised that the first attempt at revitalisation had lacked any truly independent perspective. "It became clear there was no advantage in trying to be too self-reliant," says Mr Tam. "We began again by calling in a rebranding consultant to help us align all our business strategies and also sought more general advice from other contacts in the business community." The second time things went much better. Focus groups, market research, qualitative and quantitative analysis were all used to pinpoint customers' opinions and their likely reaction to specific changes. The objective of properly integrating the old with the new was acknowledged as a key challenge. For this, a team of creative designers was brought in with instructions to make the brand attractive for new customers, while not forgetting the traditional support. "The design team was asked to look at everything from the ground up," explains Mr Tam. "They quickly understood what Chicks wanted and were able to interpret our concepts and transform them into practical ideas which brought together old and new in just the right way." Right combination Core items like woollen underwear were retained, but more fashionable lines of both underwear and outerwear were added. Different materials were used, brighter colours selected, and each season was marked by the introduction of around 150 new styles. "Nowadays, there should be something for everybody," states Mr Tam. And consumers seem to agree with that sentiment if the current plans to open two or three new stores a year are anything to go by. With expansion underway, steps are also being taken to restructure the company into functions and units. A separate marketing department has been spun off from the sales and operation department, and additional employees have been taken on in product development, fashion design and sales staff training. "We have a strong and stable core team," says Mr Tam, "but we will be hiring extra staff in the coming months to cope with our current growth and, in particular, for the new retail outlets." As a matter of corporate policy, all employees are encouraged to take individual responsibility and to communicate openly when they have any ideas that will help the company. "Though we are satisfied with the speed of change and the way things are going, we can still make further improvements in every part of the business," Mr Tam adds. "We have managed to put new life into the Chicks brand and are determined to maintain the quality and listen closely to all of our customers." The hatching process First attempt Thought that a complete revamp of styles was needed Moved too far from traditional customer base Too reliant on internal planning and ideas Influenced by external factors to create a 'cyber look' in stores Second attempt Fully recognised the sales revenue generated by core items Found a way to combine the old and the new Appointed a rebranding consultant and design team Made use of market research techniques to pre-test customer views Taken from Career Times 3 December 2004 Your comments are welcome at [email protected]