SYDNEY: High-spending and accessory-loving Asian consumers are key to Oroton Group's 2010/11 retail strategy, the company has revealed.
Speaking at the company's annual general meeting, Oroton Group CEO Sally Macdonald revealed the business plans to establish five Oroton stores within Asia before the close of 2010/11.
The first opened in Hong Kong in September, with four additional boutiques planned for Singapore and Malaysia.
“The depth and size of the Asian market is vast compared with Australia and their love of accessories far outweighs that of the average Australian consumer. So it is a very good market for Oroton to be in,” Macdonald said.
“So far our Hong Kong store is trading very well in its first 10 weeks since opening. We are studying results very closely... over 80 per cent of customers are new to the brand and yet happy to purchase at a rate that is triple to our Australian average.”
Also peaking in performance, Macdonald said, is Oroton's online store. The transactional site went live in 2006 and services both domestic and international consumers.
“In fact our Oroton.com website which was a top five store last year is now running as our number one store so far this financial year. It continues to pull in new customers to the brand and converts them at a higher price point.
“In fact we have evidence to prove that our online channel doesn't cannibalise our physical stores – it enriches them and makes us better designers, brand managers and retailers in the process,” Macdonald said.
On home soil, Oroton Group plans to open five additional Oroton stores before the close of the financial year, as well as “up to six” Polo Ralph Lauren stores. Oroton Group has held the local licence for Polo Ralph Lauren for over 20 years.
Macdonald added the company has “a long way to go” with regard to achieving its goal of operational excellence.
“This year we are upgrading our IT systems to better integrate foreign currencies, have made some interesting changes to our management reports and store team incentives and have a deeper focus on the resource planning tools we use at store level.
“... there is always more to learn, more to analyse and more to do to improve all facets of the way we do business.”