KCG masters brand positioning for Indonesia’s premium segment

It adopts the latest tech-based solutions to better manage 92 retail stores across 20 cities in Indonesia.

LIVING and breathing competition. That has been the mark of PT Kurnia Ciptamoda Gemilang (KCG) as it works to make each brand under the KCG name relevant during intense retail market competition in Indonesia.

Every brand must be uniquely positioned and stand out, especially in the premium segment. To achieve this, KCG masters how to personalize its services with the help of the latest technologies, according to KCG Business and Operational Director Haryanto Pratantara.

The brands

KCG’s journey began in 1998 when the company opened the first international store of the Singaporean brand Charles & Keith in Indonesia. From there, the company started pioneering the distribution of two internationally recognized brands in Indonesia: Pedro in 2006 and EA7 Emporio Armani in 2019. Recently, KCG has also brought the Thai brand Pomelo and Armani Exchange under the Armani group.

At present, KCG manages 92 retail stores across 20 cities and 14 provinces in Indonesia, encompassing these five international brands.

Notice how these brands are uniquely positioned from one another, allowing them to be more competitive and sustainable in the Indonesian market. Charles & Keith as well as Pedro, for instance, focus on style.

“When customers want to buy a laptop bag, there are many options, but if they want a specific stylish look, they will choose Pedro. Similarly, customers who want to dress up will buy shoes at Charles & Keith,” Haryanto told Retail Asia in an exclusive interview recently.

He said that Charles & Keith and Pedro offer products with styles similar to luxury brands but at more affordable prices. This provides a unique appeal for consumers who want to look stylish without having to spend too much.

Meanwhile, EA7 Emporio Armani fills the gap in the sports or athletic leisure fashion market, particularly in the luxury segment, which is still rare in Indonesia. EA7 Emporio Armani offers products that are more exclusive than other international sports brands.

Adapting to consumer preferences

By recognizing the uniqueness of each brand, KCG consistently adjusts its services to align with evolving consumer trends. According to Haryanto, consumers currently desire a variety of choices, personalization, and convenience.

“KCG responds to this by offering various sales channels, including offline, online, and chat shop, making it easier for consumers to interact and shop according to their preferences,” he said.

Haryanto explained that Chat Shop is a semi-online solution for consumers who want direct interaction but don't have time to visit physical stores. This service allows consumers to ask store staff directly for quick responses without having to search for information on the website themselves.

Meanwhile, one of the personalized services offered by KCG is personal home shopping for EA7 Emporio Armani products.

“This service allows store staff to come to the consumer's home with the desired products since EA7 products are exclusive, and EA7 customers usually don't buy just one item. Additionally, we provide a video call service to show products directly to customers who want a more detailed look before purchasing,” Haryanto said.

Moreover, KCG offers convenience to customers with a flexible return policy, allowing them to exchange purchased items within 30 days. “The unique aspect of this policy is that customers can exchange items at any store, even if the initial purchase was made at a different location. For instance, a customer who buys an item in Bandung can exchange it at a KCG store in Surabaya,” Haryanto explained.

The company is also working on enhancing the services they offers, including simplifying the return process by partnering with convenience stores that are spread across the country.

Another convenience feature extended by KCG is addressing stock availability issues. In the apparel and footwear retail industry, ensuring all sizes and colors for each model are in stock is challenging.

KCG’s solution allows store staff to check item availability across all Indonesian stores and warehouses. If available, customers can pay in-store, and the item will be shipped to their specified address.

To minimize shipping costs, items are sourced from the closest location to the customer's address, ensuring quick and efficient service.

Tech-assisted solutions

Despite the expanding range of online services, offline sales still dominate as long as visiting malls is considered a form of recreation in Indonesia, said Haryanto.

Fashion products like shoes require proper fitting, making them more frequently purchased offline. Consumers feel safer and more comfortable when they can try the products in-store. For apparel, customers usually have to go through the hassle of trying clothes on in and out of a fitting room. To address this, KCG has innovated by adopting technology in its physical stores through the implementation of smart fitting rooms, a retail solution that combines convenience with a personalized shopping experience.

The smart fitting room at the Pomelo flagship store in Central Park Jakarta is equipped with interactive tablets, allowing customers to choose clothing easily without leaving the fitting room.

Store staff members are ready to assist by promptly delivering selected items directly to the fitting room, enhancing the shopping experience, and encouraging customers to make more purchases. “This smart fitting room not only changes how customers interact with products but also significantly improves store conversion rate,” said Haryanto.

This innovation is part of the company’s strategy to enhance customer satisfaction. For this innovation, KCG received the Apparel Retailer of the Year – Indonesia award from Retail Asia Awards  last June.

This was KCG’s third award, having previously been recognized for its excellence in footwear and customer service.

Of course, KCG is no stranger to recognition. It obtained various international certifications such as ISO 9001 for quality management systems, ISO 27001 for information security management systems, and ISO 45001 for occupational health and safety management systems.

“We aim to strengthen our positioning as a quality company. Not just one that pursues quantity, but quality,” said Haryanto.

Looking towards the future, KCG will continue to innovate and adapt to trends to maintain brand positioning and provide convenience for customers. “The company targets a 20% sales growth from the previous year by the end of this year,” Haryanto said.