Hot on the heels of a successful run at the u.k. retail clothing market, Canada’s La Senza International is set to open stores in Saudi Arabia, selling its line of sexy lingerie and sleepware items in a country where marketing initiatives will have to be modified sharply to accommodate Muslim traditions.
The company, a division of Dorval, Que.-based Suzy Shier, signed a master licensing agreement with Saudi company, F.A. Al-Hokair in mid-October.
It’s a potentially sweet deal for La Senza says Julie Drapeau, marketing manager for Al-Hokair, since only a few private boutiques are currently operating in the region. La Senza has an opportunity to establish itself as the first chain to market.
‘We do well in Canada and the u.k. and we hope to do even better in Saudi because there is no significant competition,’ she says.
The Saudi arrangement will mean the opening of five La Senza retail stores in the country at the beginning of 1998, with plans to open 25 more over the next five years. Confirmed store locations include one in Jeddah and one in the capital, Riyadh, while the other three locations are still being finalized. Five more stores are planned for the Japanese market, though no sites had been determined at press time.
Besides establishing retail outlets, the marketing of lacy underwear and camisoles in a socially conservative country where alcohol is banned and the punishment for theft can include the lopping off of a hand will be a new challenge for the retail chain.
Mark Carter, executive vice-president for La Senza, says Saudi advertising will vary sharply from what has been seen in Canada and the u.k., although he adds that ‘the essence will still be to maintain the La Senza world-class image and keep the brand integrity and trademark strong.’
The planned entry into Japan poses no problems, he says, since that country’s market has already adapted to North American marketing initiatives and culture. Most of the creative sent from Canada will merely be translated for the Japanese market.
However, as Al-Hokair’s Julie Drapeau explains, in-store visuals, magazine and newspaper ads, as well as billboards in Saudi Arabia will have to be modified for that market.
The Kingdom of Saudi Arabia’s constitution is based on the Koran and Muslim law, under which both sexes are strongly encouraged to dress conservatively in public. Many women wear black cloaks, abayahs, in public as well as head veils – imagery reflected in much of Saudi advertising.
Still, if the reaction of a recent Saudi delegation visiting Dorval is any indication, the retailer foresees no problems.
Executives from the Al-Hokair group visited Suzy Shier head office recently to see the upcoming Christmas and spring fashion collections. According to Drapeau, they were thrilled with the products they saw.
While 70% of the items seen in La Senza stores in Canada will also be sold in Saudi, some goods, such as those in flannel and polar fleece, will definitely not be shipped. The company is also adopting a ‘wait and see what sells’ attitude to determine what Saudi women – and men – prefer.
As for pricing, Drapeau says the retail chain’s prices abroad are and will continue to be comparable to those in Canada.
‘We want to be the destination lingerie store for all consumers,’ says Carter.
The Saudi and Japanese efforts come at a time when the company’s annual sales are expected to reach $60 million this year, while its Canadian market share is between 14% and 20%, according to Carter.
Since entering the u.k. market three years ago, the company has been eating away at retail giant Marks & Spencer’s 40% share of the lingerie market.
Carter would not say what other foreign markets are on the company’s agenda, but says La Senza’s International division was established specifically to seek out and support master licensing agreements world wide.
La Senza’s goals have always been to sell beautiful lingerie at affordable prices, he adds, and it will continue to do this throughout all the territories it enters.