Innovation for Creating Sustainable Lifestyle Brands: A Case Study

Abstract

The Indian consumer has evolved since 1991, when multinationals entered India, offering products and services which were not available earlier. He now has a large number of options to choose from and globalisation has aided the cultural movement due to which the western lifestyles, products and services are demanded by a typical upper middle class young consumer. He looks beyond product utility, to seek intangibles like style statement associated with the product. But can a service become a lifestyle statement? Can companies think of sustainable innovative business models? This paper attempts to answer these questions with the example of an Indian Company called Kaya Skin Clinic, a leading lifestyle brand in the professional skin care segment. The aim of the paper is to develop a conceptual model and illustrate with example the role and relevance of innovation in creating niche, urbane, and yet sustainable business. Kaya Skin Clinic has been able to create a whole new market segment of scientific approach driven skincare solutions. What was once a supplementary service offered by traditional beauty salons, has now become a thriving business model. Armed with a robust proprietary Information and Technology architecture that facilitates Customer Relationship Management, Loyalty and Referral Marketing, Kaya has created a lifestyle brand from what was once a basic service. (Here - Lifestyle brands create a certain degree of style statement for consumers). The case study shows that developing innovative business model by industry convergence, backed by creation of entry barriers can give sustainable competitive advantage to firms and develop consumer lifestyles.