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April 19, 2004 - Strategy Magazine
News

Mainstream retail spices it up
Sears, Ikea - even The Brick - respond to growing consumer demand with new ethnic offerings

by Lucy Saddleton
page 4

Turkish carpets, Mexican furniture and Indian silk throw-cushions are no longer limited to exotic far-away locations that most of us only dream about. In fact, these and many other symbols of foreign exotica are becoming more commonplace in Canadian homes.

Driven by multiculturalism and globalization, as well as a desire to reflect a unique sense of style, Canadians now have a strong propensity for ethnic clothing, furniture and accessories.

According to retail analyst John Torella, of Toronto-based JC Williams Group, ethnic products are now firmly entrenched in Canadian stores. "More than 50% of consumers in Toronto are from a non-English or French background," he says. "Consumer diversity is growing so the market for ethnic products is going to grow more and more."

And although retailers are catering partly to the large multicultural groups - according to Census Canada, in 2001, there were 1.8 million immigrants in Canada who had arrived since 1991, making up 6.2% of the total population - they are also catering to the mainstream consumer who, in part thanks to the impact of immigration, has become decidedly more open to international goods, according to Wendy Evans, president of Toronto-based retail analyst Evans & Co.

"People are travelling more now than ever before," she explains. "Kids are graduating from high school and travelling the world so they come back with all this knowledge of other cultures and they want to reflect that knowledge in their homes."

Sears Canada is the latest major retailer to jump on the international bandwagon by launching its first ethnic product line. "Postcard," which is marketed with the tagline "We've shopped the world for you." It includes clothing under Sears' Jessica brand, and home décor accessories with fabrics and designs inspired by far-flung destinations such as India, Morocco, Spain and Tunisia.

The range (which targets the retailer's traditional market of female shopping enthusiasts aged 25 to 50) was born as a result of extensive research that uncovered a demand for brightly coloured fabrics and far-eastern inspired artifacts.

"Our fashion retailers literally travelled the world looking for important trends in fabric and colour," says Vincent Power, director of corporate communications at Toronto-based Sears Canada. "When we put them together creatively, it reminded us of the ancient spice route." Power adds that the retailer was looking for new ways to add an international flair following "very favourable" customer feedback from an anniversary flyer that thanked its customers in 13 different languages in spring 2003.

In order to kick-start the new line, a two-week promotional program was launched on March 21, including a 25% to 40% discount on "Postcard" products. The sale was promoted through 4.1 million newspaper flyers featuring a glowing artistic impression of the Taj Mahal in India, and two national TV spots created by BBDO Toronto, which display some of the new products. In addition, three stores were chosen in high-density urban locations (including Toronto's Yonge and Dundas) to host a series of events during the two-week period, ranging from Indian fashion shows and dances, to fire-eating and Indian and Moroccan cuisine. The marketing mix also includes in-store banners and an online contest to win one of seven trips to India.

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