707 Store’s mantra on cultivating brand

707 Store, a local multi-brand retailer, first opened its door on Christmas in 2006. The first store was located in Kemang, South Jakarta. The mission is simple: bringing in brands that Indonesians might not be aware of.

Back in those days, there was no curated store like 707. The definition of curation itself is not limited to selecting brands to sell at store. There is more to it. “We want to create a space where customer can come in and talk about brands,” said 707 Store President Marcel Lukman.

Introducing brands to the market, building brand awareness and creating retail experience become their core strategies in expanding 707. For instance, collaborating with local brands like Dominate to launch exclusive collection at 707.

While collaboration or exclusive collection might not sound innovative, it is harder to execute than one can imagine. For starter, 707 specialises in urban wear or street wear brands. The number of street wear brands will keep on growing and it is not slowing down anytime soon.

The product categories are also similar from one to another, with t-shirts, sweaters, hoodies and caps being the essentials. When every brand competes in similar categories, how many graphic tees or sweaters can a person own? Sooner or later, consumers will experience product fatigue and they will crave for something new.

“Retail isn’t only about creating a brand. Creating a brand isn’t just about designing something. Just because I can design a good t-shirt, doesn’t mean I can build a brand. It’s more than that.”

A successful exclusive collection has to come from a brand with loyal following, strong character, as well as good quality and design. Character, perhaps, plays a vital role in the decision because it can set a t-shirt apart from other t-shirts.

From there, the retailer incubates local brands, helping the brands grow their presence in the market. One of the local brands 707 is interested in is ShopatVelvet, a minimalist women’s wear brand. In other instances, they also help refer a brand to retailer overseas.

The incubation includes management. The business side can make or break a brand. “First of all, brands need to understand their potential. Second, retail business is about inventory management, so they need to understand finance too.”

“You can be good at the creative side, but you can also be bankrupt the next day. It may be because you can’t reinvest the revenue into operations or you have a really cool store but the revenue cannot cover up the rent. There are a lot of aspects that come into play.”

At the end of the day, according to Marcel, having a brand is all about discipline. Brands that are consistently evolving have the highest chance of penetrating the market, be it local or global.