“The fundamental principle of retailing remains unchanged: understanding the customer’s mindset, offering desirable products at the right time and price,” says Tom Singh, the visionary founder of New Look and an independent director on the board of Ace Turtle.
Sharing insights into his compelling journey of building one of the UK’s leading fast fashion brands which began in 1969, he offers his perspective on the evolving retail landscape in India and his role in Ace Turtle’s growth strategy.
Edited excerpts:
Q1. What inspired you to start a fashion retail brand, and what challenges did you face in your early years?
Singh: During my time at university, I gained experience working on my family’s market stall. After graduating, I took the leap and opened my first New Look store in Taunton, UK. My initial goal was to be self-employed and not work for anyone else. The inspiration for this venture stemmed from a shift in the fashion industry, where the traditional model of ordering six months in advance was disrupted by the emergence of cash & carry wholesalers in the east end of London, giving rise to fast fashion. This unique approach set us apart from other established fashion retailers.As we navigated the challenges of growth, transitioning from a small family business to a more process-driven operation while retaining the agility to meet customer demands was crucial. Our expansion strategy initially focused on small towns with prime locations and low overhead costs, gradually moving into larger towns and cities as our confidence grew. Our customers’ loyalty was cultivated through weekly deliveries of new styles, offering them the latest trends as they emerged.
Q2. With the retail landscape continuously evolving, how did New Look adapt to changing consumer behaviour and technological advancements over the years? Can you elaborate on your strategies to stay competitive?
Singh: To cater to a wider audience, we introduced the 915 range for 9 to 15-year-olds, allowing mothers and daughters to enjoy the shopping experience together and grow with the brand. In the late 90s, we expanded our product range to include footwear, applying the fast fashion model to become the leading UK footwear retailer by volume in a short time span.
During our expansion to 600 stores, we secured private equity funding before transitioning to a publicly listed company. At our peak, we achieved profits totaling £230 million.
Q3. How is New Look positioning itself to capitalize on these trends, and what are your key priorities for the brand’s growth and expansion in the coming years?
Singh: As I have not been involved with New Look for the past five years, I am unable to provide insights into their current strategy. However, I have observed the rise of robust online fashion retailers, such as Shein, who offer affordable fashion directly from China at wholesale prices. One of the key challenges faced by online affordable fashion retailers today is the high volume and cost of returns, as customers increasingly use their homes as fitting rooms, trying on multiple styles and returning items for free. Despite this challenge, there is an opportunity for retailers to cater to customers seeking new experiences.
Q4. As we see a lot of brands entering Indian market following a D2C model and an omnichannel approach. What specific things the fashion retailers should focus on to stay ahead of the competition?
Singh: The fundamental principle of retailing remains unchanged: understanding the customer’s mindset, offering desirable products at the right time and price. My initial foray into the Indian market was through my investment in Forever New at its inception. Forever New embodies several key success factors required for the Indian market, offering high-quality fashion at competitive prices that stand out from other offerings in the market.
Q5. Looking ahead, what trends do you foresee shaping the future of Indian fashion retail?
Singh: Since the onset of the pandemic, the Indian retail sector has elevated its offerings to a global standard, providing exceptional products at remarkable value. This development fills me with anticipation as I look forward to witnessing the potential growth of local Indian brands expanding into international markets.
Q6. Being an independent director on ace turtle’s board, how do you see the company and its vision for the Indian retail market?
Singh: During the pandemic, I had the opportunity to meet Nitin and Berry, the founders of Ace Turtle. I was impressed by their extensive experience in the Indian market gained through their careers. Through Ace Turtle, they have effectively leveraged cutting-edge technology and data to seamlessly integrate the online and offline customer shopping experience, supported by efficient real-time processes.
Initially, their business model focused on supporting international brands with local operations in the market, typically through distributors. However, Lee and Wrangler quickly turned to Ace Turtle for assistance in revitalizing their business by leveraging their technology and retail methodology.
Subsequently, other brands, such as Toys“R”Us and Dockers, have recognized the value in Ace Turtle’s model for building their brands in the market as it tailors international brands’ product offerings to suit local consumer tastes through their local design and sourcing supply chain whilst importantly maintaining the brand’s integrity.
The company is innovating further and developing more proprietary and industry-first technology. I remain bullish about Ace Turtle’s potential to positively impact the Indian retail market.
