Youth with a capital U

As the section in rustan’s that’s dedicated to that demographic of 19- to 30-year-old fashion-conscious consumers, U has always made it a point to be dynamic, responsive and contemporary.

But, to be honest, there was a point when, to the sensibilities of this specific customer group, the "dean of department stores" began to resemble an antediluvian, creaky relic. These shoppers would frankly dismiss the bulk of the apparel merchandise as "matronic" or "pang sugar-daddy". Even European brand names that were making the shift to more modern lines were subjected to the comfort zone of merchandisers who would pick out the "safe" and conventional styles that had traditionally sold.

To respond to this, new blood was transfused, and it came in the form of third generation Tantocos.

Joel Tantoco, son of Rico who, in turn, is son of founders Bienvenido and the late Glecy, is one of these third generation retail mavericks. As Division Manager of U, pushing the retail envelope is his chosen task, and it’s one that he’s responded to by marrying commercial viability with image building and global retail awareness.

The conceit was to create a haven of sorts for this age group within the proud department store. It involved letting them feel that while the rest of the store could stick to the successful traditional formula that no one was ready to discard, Rustan’s was also responding to the knowledge that these upwardly mobile younger consumers had a more radical concept of fashion–and Rustan’s still wants them as part of their stream of patrons.

Created to have a strong, distinct identity within the shop floor, U strives to practically be a "hang out" place within the department store. In Makati, there’s a small Starbucks, a CD-listening section and a magazine kiosk. Piped in music is markedly different from and louder than the rest of the store. As Joel elaborates, "By early next year, we’ll have an area devoted to Internet surfing, and we’ve tapped various DJ groups. BBC will serve us their Nova-lounge music and that’ll be the floor music. I’ve spoken to NBK, and Mano (Dario) has promised two compilation CDs every year, one for summer and one for Christmas. They’ll be customized CDs that can be bought at a special price when you buy merchandise here at U."

In Shangri-la Mall, there’s to rise by January 2004 a concept store designed by young architect Chut Cuerva. "It’ll stand as a prototype of what U stores should look like. There’ll be clear branding through the interiors, vignettes of the various brands with strong visuals. The personality of each brand will stand out on the floor."

At the Padre Faura Wing of Robinson’s Place Ermita, U also stands as a cornerstone area within Rustan’s retail floor, occupying 200 of the 1,200 square meters.

Merchandising strategy is a heady mix of established youth-oriented retail brands and cutting edge names that we read about in foreign fashion publications. To their credit, U has also made a commitment to develop young local designers into the RTW fold. The recent launch of Dennis Lustico’s Unite line, exclusive to U, is an example of this.

"Dennis is one of those rising stars that we just had to have on the team," Joel enthuses. "He’s created a black-and-purple line for us, using richer fabrics and catwalk fashion designs, yet reasonably priced. It’s a co-gender line so both men and women will find something exciting in his section. "

The U philosophy is simple. "We can’t compete head on with the other local retail brands on price alone, and we don’t want to enter that arena. While we do have the casuals and basics, we also have to strive for differentiation, looking back in history to what Rustan’s originally stood for–the Philippines’ high-end quality department store. As such, the thrust is to rekindle the culture of U and Rustan’s as the House of Brands, more position- and product-driven than price-driven."

Specific to U, Joel further explains, "With U Girl’s and Boy’s for example, we have to constantly be giving the customers something new. We can’t just rely on the two seasons of Spring/Summer and Fall/Winter as the major American and European brands do. Within each season, we’ll have six different stories, so that the shopper who enters U can find something fresh every three to four weeks. This is the same strategy that brands like Zarah, which have major European retail floor areas, utilize."

Echoing the Young VIP Council of yesteryears, a new image group was formed. Tagged as RepUblic, it’s an assortment of eight young men and women, chosen for the various fields they come from, and the mix of interests they represent.

RepUblic was inaugurated last December 12th. Looking at the roster of RepUblic, we find among them Alexi Alunan, daughter of Raffy Alunan, who has done some print modeling. Multi-lingual, she actually teaches basic Mandarin and Spanish at the Berlitz schools. Luis Alandy is a known face, having come out in various commercials and TV shows.

Gabbie de la Rama laughs recalling her unfortunate brush with ramp modeling. "I almost tripped and since then, I’ve stuck to print and TV. It is a sideline though, and my regular job is at Fully Booked at the Power Plant." Benjo Marquez is an established DJ, and Joel raves about his "showman" qualities. Boo Valdez is a commercial model who’s smack in the limelight right now, appearing in several TV commercials (most popularly, the teacher in the Colgate ad). She also represents the unique demographic of Young Mother.

Unanimously, the members of RepUblic agree that they love the clothes at U, and appreciate the vision that brought the various looks and labels under one roof. And obviously, the chance to wear the clothes for free doesn’t do any harm.

Keeping up to speed with other global retail giants and projecting the culture that’s endemic to the demographic, there’s a U website that’s about to be unveiled. It’ll allow one to shop on the Net, to avail of specials and keep abreast of the new merchandise and promotions. As Joel enthusiastically reports, "These are exciting times, and we want to be plugged in to this generation. While the standards and philosophy may be constant, the need to be current, to respond to and generate interest is the challenge. While the older customers may find the things that we’re developing superfluous to how they shop, we’ve studied how what we’re doing will redound to our benefit, as we communicate to the U shoppers in a language they appreciate."

Some may call it the changing face of retail, but at its essence, it’s just sound business decisions. To widen the net, to increase the catch, you learn their habits and find the ways and means, in a cost-effective way, to be attractive to the segment of the buying public you’re targeting. If smaller boutiques had made inroads on this customer type, Rustan’s and U are out to prove they’re still very much in the game.