The Hindu Business Line : Digjam's comeback bid

FROM a brand which catered only to the globetrotting elite and celebrities such as Shekhar Kapoor, Birla VXL's Digjam brand now talks about the global Indian spirit. The company, which recently moved from its earlier positioning of being the `fabric for the great suit' is now talking about `dressing the world.'

The brand's focus now is on the young global Indian achievers who, over the years have carved a niche for themselves and command a lot more respect the world over. Prathap Suthan, National Creative Director, Grey Worldwide (the agency which handles the account), says the brand's positioning is unique and has never been tapped by competition. "Unlike other brands which either talk to CEOs or show the homecoming of wealthy Indians living overseas, Digjam is about the new Indian man who lives in India and travels abroad as the ambassador of the country. He needn't be a city-bred person. He could also hail from small towns."

Following the IT and BPO revolution, the intellectual calibre of young Indians is respected much more now than it was earlier, he says. "The Digjam brand celebrates the winning spirit of global Indians."

In sync with its new brand positioning, the company has launched a collection of fabrics in contemporary designs, and a new jacketing range called the Free Spirit Collection. "The collection is a mix of formal and casual fabrics and has colourful checks which gel with the taste of the younger generation," says Rajiv Pal, Marketing Head, Digjam.

Pal, in fact, says that prior to the brand repositioning, there was no uniformity in its branding strategy. "Even our retail outlets didn't have uniform signage," says Pal.

The company, which has set aside almost six per cent of its turnover for branding and retail activities, is also going to embark upon a new retail strategy. "We plan a complete overhaul of our store interiors and are also looking at increasing our presence in malls."

Naresh Gupta, Head-Planning, Grey Worldwide, says the decision to switch focus from high street to malls is obvious. "It is in the malls that most young Indians like to hang out today, and a presence in the malls will definitely attract their attention."

In fact, the company is also planning to launch a new retail identity, the brand name of which, says Gupta, is still under discussion.

On the marketing and advertising front, the company is planning a series of below-the-line and Web-based activities. While its print campaign has already been released, the TV campaign will be aired shortly.

Commenting on the company's new branding and retail strategy, Arvind Singhal, Director, KSA-Technopak, said that from a strategic point of view, Digjam's brand positioning and retail strategy are absolutely right, but the challenge is in how well it is executed. "Some of their recent advertising campaigns are not very contemporary. The communication has to be effective. Having younger models is not enough," he says.

"Raymond is far ahead in terms of the same strategy. It has high quality stores, offers a host of value-adds, and has also switched from older age profiles to younger models," he adds.

On the other hand, an industry observer says that Digjam, with its new brand repositioning, has filled the space which Vimal vacated. "Unlike the other worsted fabric brands which cater to the elite and wealthy, Vimal focused on ambitious young men who are challengers to the CEO's position. Now Digjam is where Vimal was."

Anand Parekh, Managing Director, Birla VXL, says the company is on a strong footing after going through a bad phase for two-three years. "Our topline grew by 10-12 per cent, while our operating profits grew by 210 per cent. We are back on the rails and have to now create proper shareholder value."

He also shared the company's plans to enter the formal ready-to-wear segment in 2006. "We will initially launch trousers and then get into the other categories."

However, Singhal of KSA-Technopak says the company has to ensure that it focuses on distinctive and differentiated merchandise to be successful. "If you are focusing on youngsters, you have to come up with distinctive apparel as there is no dearth of good brands today."

But Parekh feels that there is a dearth in variety of formal ready-to-wear apparel. "Most of the leading brands have more of causal offerings and very little formal wear. Therefore, we would be treading on almost virgin territory."

Coming back to the company's core focus, fabrics, Singhal says that the worsted fabrics category is doing extremely well. "With young people getting into service jobs and having to travel overseas every now and then, a formal suit has become an integral part of their dress code."

How well Digjam capitalises on this current trend and executes its branding strategy is to be seen.

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