Despite its almost 40-year history in Malaysia, many locals are still surprised to learn that Padini is a homegrown, and not a European brand. Founded in 1971 by the group’s managing director Yong Pang Chuan as the Hwayo Garments Manufacturers Company, the breakthrough came when Yong realised that taking his company to the next level would require a strong brand identity.

In 1975, the Padini brand was launched — selected by Yong out of five brand identities crafted by a consultant. From the beginning, Padini was an affordable mass-market office-wear brand which the market then lacked.

Today, the group has 10 brands in its stable with the Padini brand upgraded to a “masstige” (prestige for the masses) market focusing on office-wear. “If you’re looking for ladies’ shoes, you will check out Vincci, office-wear takes you to Padini, urban style means SEED, preppy casual means PDI, and quality casual is Padini Authentics,” said Padini Holdings Bhd executive director Chan Kwai Heng in an  interview with The Edge last year in conjunction with Malaysia’s Most Valuable Brands (MMVB) 2009. Padini was No 23 in the MMVB ranking, three spots higher than in the inaugural 2007 ranking.

The group’s other brands are maternity and kid’s fashion store Miki, funky P&Co, Vincci Accessories, affordable luxury shoes and bags label Vincci+, and budget store Brands Outlet.

During the financial year ended June 30, 2010, Padini Holdings opened six new stores, namely two Vincci+ shops in Pavilion KL and Gurney Plaza, Penang; a Vincci shop in Kluang Mall; a Padini Concept store in Aeon Bandaraya Melaka; and two Brands Outlets in Kluang Mall and Aeon Bandaraya Melaka.

Padini Holdings relies on two main factors to drive awareness of the 10 brands it owns: store presence and always giving the customer a reason to stop by. With over 200 free-standing stores nationwide, Padini’s brands are present in every major shopping mall. Some of the group’s stronger brands have identities that have made them automatic destinations for shoppers looking for particular styles.

Their quick turnaround time for styles — Vincci has something new every week, and the other brands, every month — gives customers a reason to walk into the stores. During sales, the group releases stockpiles of more affordable merchandise that is further discounted. “Malaysia has so many sales that if we didn’t produce more of the lower-priced lines than we could sell normally, we’d have nothing to offer customers!” said Chan.

Another business decision that helped boost the group’s brand identity and the brand presence of its labels was the introduction of the Padini Concept store in 1997. The large 16 standalone multi-brand stores have paid off not only in reducing rental and operational costs, they have become must-see destinations for shoppers. “It used to be we had to position our standalone stores at high-traffic areas so people would stop by on the way to a department store or a supermarket. But now we can tuck the concept store in a remote corner and shoppers will come looking for us. Now other stores situate themselves so they can attract our traffic,” said Chan.

During the downturn, the group focused on its bargain-friendly Brands Outlet stores. Introduced in 2007, Brands Outlet features Padini designs, but with more affordable fabrics and lower-cost production resulting in rock-bottom prices. “We invest in the ambience, it’s spacious and brightly-lit and looks more expensive than the merchandise sold,” added Chan.

The Brands Outlet stores have been a growth driver for the Padini group, contributing around RM54.6 million in sales of the brand’s own products. Overall, the Brand Outlet stores contributed 10% of the group’s FY2010 total sales revenue, said Chan in an email interview on Sept 27. “To give an idea of how the Brands Outlets are performing, as at June 30, 2009, we had eight stores, and sales from our own products totalled around RM24 million. As at June 30, 2010, the stores number 10 and sales from our own products rose to RM54.6 million,” explained Chan, adding that for 2011, the group planned to open three more Brands Outlet stores.

At present, the group has no plans to launch any new brand, but would be building and possibly revamping its current brand stable, said Chan.

This article appeared in The Edge Financial Daily, October 11, 2010.