1. INDIAN RETAIL SECTOR:-
The total concept and idea of shopping has undergone an attention drawing change in terms of format
and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has
entered into the Retail market in India as is observed in the form of bustling shopping centers, multi-
storied malls and the huge complexes that offer shopping, entertainment and food all under one roof.
A large young working population with median age of 24 years, nuclear families in urban areas, along
with increasing workingwomen population and emerging opportunities in the services sector are going
to be the key factors in the growth of the organized Retail sector in India. The growth pattern in
organized retailing and in the consumption made by the Indian population will follow a rising graph
helping the newer businessmen to enter the India Retail Industry.
INDIAN RETAIL SCENARIO:-
ORGANISED RETAIL :-
The Indian retail industry is divided into organized and unorganized sectors.
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses.
India is at an early stage of evolution in organized retail, with its current penetration being 5
per cent, which indicates a huge potential for growth.
ORGANISED REATIL APPAREL FORMAT IN INDIA
FORMAT DESCRIPTION EXAMPLE
DEPARTMENT
STORES Average size varies Shoppers stop
(MBO) between 10,000 sq ft and Lifestyle
60,000 sq ft Pantaloons
Offer a large layout with Westside
a wide merchandise mix,
usually in cohesive
categories including
fashion accessories, gifts
and products for the
home
2. SPECIALTY
STORE Single-category stores Provogue
Focus on individuals and Spykar
group clusters of the Levi‘s
same class, with high
product loyalty
DISCOUNT • Average size — 1,000 sq
STORES ft The Loot
Offer wide range of
products, mostly branded,
at discounted prices
FACTORY
OUTLETS Average size — 600 sq ft Spykar Factory Outlet
Relatively small retail Provogue Factory Outlet
store offering slightly
defective branded
product at a discount
CASH - AND - CARRY
Average size — 75,000 Metro
sq ft Bharti-Wal-Mart
Offer several thousand
stock-keeping units
(SKUs) and generally
have bulk buying
requirements.
ORGANIZED MARKET SHARE OF ORGANISED APPAREL RETAIL:-
India's textile and apparel industry (domestic and exports) is expected to grow from Rs 3.27lakh crores
to Rs 10.32 lakh crore by 2020, It estimates that by 2015, the overall Indian apparel industry would be
worth Rs 2.88 lakh crores and the organized market share will be25 per cent of this. Therefore, one can
say that the branded apparel market which is a major chunk of the organized market will thus be around
Rs 55,000-60,000 crores. A global study that predicts the world branded apparel market will reach $600
bn by 2015. Hence, India might just have around 2 per cent market share. A suggests that although
currently tempered by the economic recession, world market for branded apparel is nevertheless
expected to recover and gain momentum over the next few years. What are expected to drive growth is
renewed consumer confidence and a rapidly increasing demand from developing markets, especially.
the children‘s branded apparel segment which offers maximum hope for various stake holders in the
branded apparel segment. While men‘s, women‘s and sports branded apparel have come under the yoke
3. of the recession, children‘s branded apparel although hurting exhibits greater resilience to the economic
turmoil.
Unorganized retail:-
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for
example, the local Karana shops, owner manned general stores, pan/beedi shops, convenience stores,
hand cart and pavement vendors, etc. UNORGANISED retail grabs a major share in Indian retail while
organized retail account for a mere 5% Indian retail industry is characterized by ht widely dispersed
retail outlet situated at every nook & coner all over the country. The presence of small number of
players has made the Indian retail industry one of the fragment industries in the world.
RETAIL SECTOR IN INDIA GROWING AT PHENOMENAL PACE:-
The retail sector in India is growing at a phenomenal pace leading to job opportunities in different areas.
Aaditi Isaac reports
The retail sector in India is growing at a phenomenal pace. According to the Global Retail Development
Index 2012, India ranks fifth among the top 30 emerging markets for retail. The recent announcement by
the Indian government with Foreign Direct Investment (FDI) in retail, especially allowing 100% FDI in
single brands and multi-brand FDI has created positive sentiments in the retail sector.
(TOI SOURCE)
4. Clothing is a term that refers to a covering for the human body that is worn.
APPAREL INDUSTRY
Apparel is one of the basic necessities of human civilization along with food, water and shelter. The
Apparel Industry reflects people‘s lifestyles and shows their social and economic status. The Apparel
and Textile industry is India‘s second largest industry after IT Industry. At present, it is amongst the
fastest growing industry segment and is also the second largest foreign exchange earner for the country.
The apparel industry accounts for 26% of all Indian exports. The Indian government has targeted the
apparel and textiles industry segments to reach $50 billion by the year 2015.
China on the other hand, has already reached their target of $52 billion in 2004, and therefore, it is very
possible for India to reach its target soon. One of the most interesting features of the apparel industry is
that, it migrates from high cost nations to the low cost nations. The growth of the domestic demand for
clothing in India is linked with the success of the retailing sector.
This is primarily due to the rise in the standard of living caused by the rise in the middle-income groups.
In our present economic world of demand and supply, price and quality are the key factors, which
determine the success of any business. The key element here though, is the cost of labor. India and
China have a comparative advantage in this industry though, their vast labor forces and the relatively
low cost of labor. Since, India and China have the advantage of making textiles and so fabric costs are
lower than in other countries, they have become the Apparel sourcing choice for many international
companies.
Sourcing choices arise from profitability. This includes considering costs, such as, buying factors of
production, like land, buildings and machines versus factors affecting revenues, including pricing,
marketing, and distribution.
The issues of labor, material, shipping costs and tariffs structure also affect the sourcing choices. Since,
apparel production is a labor-intensive activity, wage rates are also a major factor in sourcing decisions.
This gives immediate competitive advantage to producers in countries like India and China to export to
more developed and high cost countries like the United States and the European Union. The worldwide
apparel industry is one of the most important sectors of the economy with regard to investment, revenue,
and trade and employment generation all over the world. The apparel industry in India has substantially
diversified on the basis of fashion, climate, region, culture and fiscal factors. Indian textile is witnessing
great growth and development in the industrial sector in India as well as abroad. The significance of the
apparel industry is entirely based on the contribution of the industrial productivity and employment.
Apparel sector in totality contributes to the country's GDP after agriculture. The important segments
covered in apparel industry include home decor and furnishings along with clothing and fashion
accessories for kids, women and men.
5. Process
Indian Apparel Industry
Apparels – Dressing the world over
The Indian apparel industry is estimated to be worth Rs. $28,102.6 million in FY10 and is
expected to grow at a compound annual growth rate (CAGR) of 9.9 per cent till FY16.
India‘s Apparel industry (domestic + exports) is expected to grow from the current $ 70 billion to
$ 220 billion by 2020.
The Indian domestic Apparel market size in FY10 was $ 47 billion and is expected to grow at
11% CAGR to reach $ 140 billion by 2020.
India‘s exports have also recovered in FY10 following increased global demand and is currently
worth $ 23.5 billion
India has been ranked as the top retail destination globally for retail investment attractiveness
among 30 emerging markets in the world. The Indian retail sector is the second largest untapped
market after China.
Retail business contributes around 11 percent of India‗s GDP. Retailing as a sector is witnessing
revolution in India. Retailing in India is gradually becoming the next boom industry. The growth
6. of India's retail sector not only limited to urban areas but also growing in rural areas. In the next
five years, it is expected that, India's retail industry will expand more than 80%.
Higher disposable income coupled with favorable demographic changes (Increase in working
women population, rise in nuclear family, largest young population and higher growth in urban
and sub-urban population), changes in consumer needs, attitudes and behavior, and increased
credit friendliness are some of the key growth drivers for modern retail in India.
The growth would primarily be driven by the surge in demand for readymade apparels in rural
areas, rising income levels and youth population and increasing preference for branded apparels.
The Domestic Apparel Industry constitutes of five segments:– menswear, women‘s wear, Kids wear,
unisex and uniforms. Menswear is the largest segment whereas uniforms and women‘s wear are the
fastest growing segments. Apparel manufacturing is the least capital intensive section of the textile value
chain and is therefore characterized by low entry barriers. At the same time, it is highly labour intensive
and requires skilled, unskilled and semi-skilled labourers.
Indian apparel industry is highly fragmented in nature. Due to the low entry barriers, numerous players
have entered the industry. Reservation of the sector for SSI units up to FY04, quota restrictions on
exports to US and EU up to CY04 and stringent labor laws led the industry to a highly fragmented
structure. It forms the most fragmented part of the Indian textile industry.
India‘s apparel exports grew at a CAGR of 6 per cent from INR 382 billion in FY06 to INR 511 billion
in FY11. The growth in exports can be attributed to shifting of the apparel manufacturing base from the
developed countries like the US and the EU to the low cost countries like China, Vietnam, India,
Bangladesh and many others. Multi Fibre Agreement phase-out at the end of 2004 also helped India to
increase its exports.
To remain competitive in the international market, Indian apparel industry needs to build up a strong
weaving and processing link so as to provide support to the apparel manufacturers and also set up large
units for reaping the benefits of economies of scale.
Apparel industry’s profitability is mainly influenced by the raw material and input prices.
Domestic players enjoy better margins as against the exporters. The raw material prices for apparel
players have been on rise in the recent past due to the soaring cotton and crude oil prices. The players
have been unable to pass on the rise in cost to the consumers due to the stiff competition and limited
pricing power. Therefore, the margins of the apparel manufacturers are expected to remain subdued over
the medium term.
COMPOSITION OF THE APPAREL INDUSTRY
The apparel industry is one of the largest segments of India‘s economy, accounting for 20 percent of
total industrial production and slightly more than 30 percent of total export earnings.
7. It is also the largest employer in the manufacturing sector with a workforce of some 38million people. In
addition, millions of others rely on the textile and apparel industry for their livelihoods, especially those
involved in cotton production.
MARKET SEGMENTATION:-
Apparel‘s are segmented into Ethnic, Formal, Casual and Sports. Casual apparels dominate the
segmentation with major share of 53% followed by sports with share of 27% due to youth population
being the major demographic of India‘s population.
SEGMENTS ARE FURTHER SUB-DIVIDED INTO FOLLOWING:-
MENS WEAR
WOMENS WEAR
KIDS WEAR
1. Menswear:-
Menswear is still the single largest product category, both in terms of value and volume. This
segment is also the most developed and better organized when compared to other categories
like women‘s wear and kids wear
Among all the apparel categories T-shirts was the fastest growing at a rate of 34.1 percent and
Trousers at 18.3 percent.
Men's Apparels
Casual Formal Essential Ethnic
Wear Wear Wear Wear
8. 2. Women‘s Wear:-
The women‟ s wear segment comprises 32.2 percent (INR 497.1 bn) share of the INR 1542.5bn Indian
apparel market in value terms Ethnic wear still controls women‟ s apparel market in India and while the
craze for designer sarees gets reinforced as a fashion statement for special occasions. Ethnic salwar
kameez still remains the mainstay of the Indian woman‟ s wardrobe and designers have a major chunk
of this market.
Women's
Apparel
Active Casual Formal Ethnic Non-Ethnic Essential Western
Wear Wear Wear Wear Wear Wear Wear
9. KIDS WEAR:-
Market for kids apparel is the fastest growing industry in India. Manufacturers are coming up with fancy
materials targeting kids who are more interested in the upcoming fashion trends. Children‘s garments
are available in various forms and designs. Kids apparel market is more unorganized than any other
segment of apparels. The market is a proposition of the good, bad and the ugly. A huge volume of kids
apparel in India is being dominated by local and unorganized players. This gives an excellent
opportunity for the organized players to lay a strong foundation in this segment. Indian market is now
moving towards an international look in terms of children‘s apparel. Cotton plays a major role in the
clothing of children. Approximately, 86% of the kids wear are of cotton.
According to the India Apparel Report, 2008 (Images Year Book, Vol IV), the size of kids wear market
is estimated to be at Rs. 30, 510 crore. Industry experts predict that the market will further grow to reach
Rs. 45, 000 crore by 2013, with braded apparels contributing to a major share.
Children's Wear
Boys Girls
Casual Western Causal Western Essentials Uniforms
Essentials Uniforms Wear Wear
Wear Wear
10. •Mens wear consist of trousers, shirts, jeans, t-shirts, coats etc
•The Indian menswear market had total revenue of $11.8
billion in 2009, representing a compound annual growth rate
(CAGR) of 8.6% for the period spanning 2005-2009
•Womens wear consist of dresses, sarees, tops, jeans, trousers
etc
•India's women’s wear market generated total revenues of $10.2
billion in 2009, representing a compound annual growth rate
(CAGR) of 11.6 percent for the period spanning 2005-09
•Kids wear consist of uniform, trousers, jeans, t-shirts etc
•Kids wear is not a small business anymore. Driven by huge
demand from brand conscious children, the Indian kidswear
retail market is expected to touch 45000 Cr's by 2013.
Marketing Mix Modeling in the Apparel Business
Various components are used in the marketing plans of a business; advertising, promotion, packaging,
media weight level, sales force number etc. But, the number of inputs and the resulting outcome in terms
of sales or profit is the workhorse. Marketing mix modeling is the art of using statistical analysis on
sales and marketing to estimate and manipulate various promotional tactics on sales, and further forecast
the result of promotional tactics.
Marketing Mix Modeling in the Apparel Business:
Consumers are getting quickly immune to the marketing tactics of businesses, and margins are being
squeezed by demanding customers. Focus is getting shifted from mass advertising to making of new
trends. Clothing industry is a very competitive arena. Due to the highly fragmented nature of apparels,
and fashion sector, an apparel brand must differentiate itself from its competitors right from the stage it
enters the market.
Price:
In case of apparels, especially in fashion, price is not of big importance. Gone are the times when
companies competed on price. Service is the key today which will shift to focus on personality in the
11. future. Innovative designs are no longer a competitive advantage. New sketches are transformed into
garments and make their way in store shelves within a span of three weeks. New disposable fashion has
shortened the product development cycle from 16 months to 20 days.
Promotion:
In integrated communication is as essential part of the marketing mix.
This is even more important for clothing industry as communication is
a critical tool in creating an impression in the minds of the consumers.
An apparel, to become acceptable by public must first be adopted by a
group which has acknowledged respect in the society. Celebrities are
the most influential people who can influence public opinion. CPR
(Consumer Personal Reference) marketing refers to the process of
marketing where a customer publicizes a brand by accepting the
product and spreading the trend by word of mouth.
Product:
Product not only refers to tangible items but also to intangible attributes such as brand name and
customer service. Earlier it was believed that a good product will sell itself. In todays competitive
market, there is no such commodity as bad product. So, manufacturers must focus on creating a product
or service that will satisfy the demands of the consumers. The product characteristics must be defined
with functionality, quality, appearance, brand service, support and warranty.
Place:
Apart from price and quality, the place of distribution
must also be taken into consideration while creating a
right marketing mix, as the apparel industry is primarily
based on perception. Store designs must be deployed to
create an elegant atmosphere emphasizing a brand
image and reflecting current trends. Focus must also be
kept on the distribution processes and partners, without
which even excellent products will fail. Big revolutions
in business have come about by changing place.
Location, logistics, channel motivation, service levels,
and channel members must be taken into consideration.
Good marketing mix is like an appetizing food recipe. The key for a successful strategy is the right
combination of ingredients to get the right taste of food. The key ingredients of a successful marketing
mix modeling such as product, price, place, and promotion needs to be combined in the right way, and in
the right time for an appropriate marketing of a product
12. Major players in Indian apparel market
Globus India:
Launched in January 1998, Globus is part of the Rajan Raheja group. The company opened its first store
at Indore in 1999, followed by the launch of its second store in Chennai (T-Nagar).Soon to follow was
another store in Chennai located in Adyar. The flagship store in Mumbai opened on 1st November 2001
Currently Globus operates more than 30 location spread across India. Recent launches include Kanpur
city in Z- square mall and Pune city in Inorbit mall.
Globus is on a mission to revolutionize fashion and become an iconic youth fashion brand in India. We
aim at creating a deep connection with the Indian youth with inspiring product designs, signature store
experiences and compelling marketing.
Youth Fashion Brand
The spirit of the youth can be captured with three words - vibrant, maverick and expressive. Globus is
exactly that. Our vibrant and maverick designs are not just creating fashion trends, but more importantly,
helping our customers express themselves. The entire fashion range comprises of apparel for men,
women, kids as well as accessories at amazing prices. The range spans across occasions: work wear,
campus wear, club and lounge dressing; and genres: Western, Indian and mix-n-match. Well researched
sizing ensures a good fit for the Indian silhouettes.
Globus is on a mission to revolutionize fashion and become an iconic youth fashion brand in India. We
aim at creating a deep connection with the Indian youth with inspiring product designs, signature store
experiences and compelling marketing.
EYE CANDY FASHION
F21 is an accessible hi-fashion brand, offering high-quality apparel. F21 - the edgy fashion brand - is
designed to appeal to the more experimental and adventurous consumers who seek cutting edge fashion.
Styling and fabric innovations help F21 offer high end fashion at prices which are affordable to young
consumers. From casual wear to club wear, F21 promises consumers attention unlimited.
The store, which now offers only ‗young fashion', has been selling entirely its own labels in
womenswear, both ethnic and Western, and accessories since 2005. It has both private labels and other
brands in men's and denims, though. ―In the women's category, the product is important. Men, who don't
enjoy shopping the way women do, just pick up a product and become brand-loyal. We need to stock
those brands to get them to try ours,‖ explains Mr Nadkarni. The core customers are aged 16-25 but 80
per cent are aged 18-35 years, he said.
Globus expects to make Rs 250 crore by March 2012. With store additions, it has been growing at
CAGR of 20 per cent and is making a profit, he said, though he declined to mention how much.
13. The chain has grown quite a lot in 2011, Mr Nadkarni said. It had added seven stores between April and
October. Henceforth, it will add 8-10 stores every year, in Capital cities and major towns of States. It
expects to invest Rs 5 crore per store and increase the number of stores from 34 to 37 by March 2012.
Marketing mix:-
Product:
Hands bags from La Belle & Carlton London from Enroute & Carlton London. Accessories from
Globus. Kids wear from Dafoodiles , Lilliput, Barbies, & Catmors & ruff. Men‘s wear are from Flying
Machine, Spykar, India Terrain Provogue, US Polo, PEPE jeans, Mufti & Proline.
Price:-
Globus offers affordable price that are trendy & fashionable & keep pace with the changing trends with
the discounts & offers everytime.
Place:-
Globus has currently 35-37 store across the major cities and towns in india. It wants to eastablish globus
as synonym for youthfull & trendy fashion
Promotion:-
Globus promotes through newspaper, magazine & hording. Globus is also a brand partnr to some of the
fashion weeks earlier it has its brand ambassador as Soha Ali Khan, Kunal Kapoor & karena
kapoor.globus also offers to its cutomer a good amout of discounts and offers at festive and end of the
season sale.
People:-
Globus emphasis and value its customer the most. After it make it staff highly trained so that they can
give assistance to the customer correctly. It lays stress on long term relationship with its customers.
Physical Evidence:-
Globus believes on the saying ―product gets the customer to your store the first time, but services ensure
that he comes back again‖. Thus it ensure quality service to its customer through better appearance of
the store and employees in the store.
14. Shoppers Stop:-
Shoppers Stop is an Indian department store chain promoted by the K Raheja Corp Group (Chandru L
Raheja Group), started in the year 1991 with its first store in Andheri, Mumbai] Shoppers Stop Ltd has
been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award", by
World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. In 2011,
Shoppers Stop has 52 stores in India.
STORE:-
Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of
department stores under the name ―Shoppers‘ Stop‖ in India. Shoppers Stop has 52 stores across the
country (with the latest one being the outlet at Kumar Pacific Mall, Pune) including three airport stores.
Shoppers Stop retails a range of branded apparel and private label under the following categories of
apparel, footwear, fashion jewellery, leather products, accessories and home products. These are
complemented by cafe, food, entertainment, personal care and various beauty related services.
Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails
all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories.
Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad.
Marketing mix:-
Product:
Identifying the needs for and creating a suite for brand that reflects style, international class and fashion.
Shoppers Stop is Indian largest chain of Super Stores and has many stores in whole of India Shoppers
Stop Ltd. Excels in Service quality and the stores of a high class feel which is different from Big Bazaar
or similar stores
PROMOTION:-
The communication strategy of Shopper‘s Stop has been to reach out to the customers in their own style
and language. SS uses print as well as OOH media to promote the brand. The private label STOP is
promoted in store through logo and proper placement in the store ad join similar national brands
Associates itself with Local festivals and events. Shopperstop adopts the strategy of ―enveloping the
customer‖ with communication on tv, press, hoardings and radio.
PRICING:-
15. SS has a proper mix of both premium and affordable priced products. The brands are sold at
MRP and lower. The main USP is the choice given to the customer rather than the Price.
Various Pricing Strategies used by Shopper‘s Stop are as below:
1. Premium Pricing
2. Economy Pricing
3. Psychological Pricing
4. Optional Product Pricing
5. Promotional Pricing
6. Geographical Pricing
7. Value Pricing
.
PACKAGING:-
Pervious packets of ssbags has pervious logo while new bags which are widely distributed have
company symbol on it. The company has also brought collectible shopping bags for selective
distributors with different themes anf launched the first in the series based on themes ―FASHION
THROUGH AGE‖.
Pantaloons:-
As India‘s leading retailer, Pantaloon Retail inspires trust through innovative offerings, quality products
and affordable prices that help customers achieve a better quality of life every day. We serve customers
in 93 cities and 60 rural locations across the country through over 17 million square feet of retail space.
Pantaloon Retail is the flagship company of Future Group, India‘s retail pioneer catering to the entire
Indian consumption space. Through multiple retail formats, we connect a diverse and passionate
community of Indian buyers, sellers and businesses. The collective impact on business is staggering:
Around 300 million customers walk into our stores each year and choose products and services supplied
by over 30,000 small, medium and large entrepreneurs and manufacturers from across India. This
number is set to grow.
PRODUCT:-
Fashion: The group offers a variety of options in fashion. Its brands include aLL, Blue Sky, Central,
Etam, Fashion Station, Gini & Jony, Navaras, Pantaloons, and Top 10
2. Price:
16. Pantaloons India has brought a whole new revolution when it comes to pricing strategies, which is
evident through the success of its Big Bazaar and Food Bazaar outlets.
3. Place:
The company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities
in India and 65 rural cities with taking over Aadhar. It plans to take up floor space of 30 million square
feet by 2011.It has plans to open over 3000 new stores by 2010. It is targeting the Tier-2 and 3 cities
which has a huge unleashed potential.
4. Promotion:
They use magazines, newspapers, television, radios , hoardings, internet etc for promoting the brand .
They have joint ventures and alliances with many companies to promote the brand.
Seasonal Discounts , Sales Discounts during Festivals are offered to attract consumers, instant
discount,etc.
―Pantaloons Femina Miss India‖ is also a major key promotional strategy to promote the brand.
5. Physical Evidence:
It has a huge list of awards, recognition in its kitty like Most Admired Fashion Group Of The Year,
Most Admired Food & Grocery Retailer Of The Year , Most Admired Food Court , Most Admired
Retailer of the Year, ,Most Admired Food & Grocery Retailer of the Year – Supermarket
It is the pioneer in the retail industry and it believes in developing strong insights on Indian consumers
and building businesses based on Indian ideas, as espoused in the group‘s core value of ‗Indianness.‘
The group‘s corporate credo is, ‗Rewrite rules, Retain values.
Raymond Apparel Ltd.
A 100% subsidiary of Raymond Limited, Raymond Apparel Ltd. (RAL) ranks amongst India's largest
and most respected apparel companies. We bring to our customers the best of fabric and style through
some of the country‘s most prestigious brands – Raymond Premium Apparel, Park Avenue, Parx and
Notting Hill.
RAL entered into the ready-to-wear business with the introduction of Park Avenue in 1986 catering to
the men's formal wear market. Parx was launched in 1998 to address the growing trend of smart casuals.
Raymond identified the vacuum for a high end, casual wear brand and hence decided to acquire
ColorPlus as a part of strategic expansion plan for their ready-to-wear business. Notting Hill was
launched in 2007 to cater to the popular price segment.
17. Crossing the gender divide two of our brands, Park Avenue launched the Western Women's wear
collections. 'Park Avenue Woman'- A complete range of Premium Business Wear for women is
designed specially for the working women professionals of today.
All our brands are available at exclusive brand stores, ‗The Raymond Shop‘ retail outlets and multi-
brand outlets across India and the Middle East.
PRODUCTS:-
Raymond Premium Apparel
Raymond Premium Apparel is a premium formal wear brand which is positioned to offer classic
garments with impeccable fits and inviting styles to the Global Indian. Needless to say that the
product is made only from premium Raymond fabrics.
Park Avenue
Park Avenue is a premium contemporary formal wear brand and the single largest formal and
occasion wear brand in India. Park Avenue has been constantly reinventing itself successfully
addressing the changing needs of the consumer – whether in formalwear, relaxed work wear,
heritage wear or evening wear.
Park Avenue Woman
Park Avenue Woman is a complete range of Business Wear for women. ‗Park Avenue Woman‘
is designed specially for the working women professionals of today.
ColorPlus
ColorPlus is among the largest premium category smart casual wear brand in the country. The
company acquired by Raymond caters to the growing demand for a high-end, casual wear brand
in India. Some of the technological innovations by ColorPlus are thermo-fused buttons, golf ball
wash, soft jeans, wrinkle free technology, stain-free fabric, and cone dyed technique.
Parx
Parx is a premium casual lifestyle brand, which is positioned to cater to the needs of consumers
who are looking for dressing up for life across occasions and events. Parx makes available the
latest international trends through differentiated designs and styles. It has always been part of the
consumer who is looking at making lifestyle statements.
Notting Hill
18. Notting Hill reflects style and manifests originality of today's fashion-conscious and discerning young
professionals at an affordable price. With exceptional fits, styling and colour range. Notting Hill
promises to be an instant hit with the young working professionals.
ABOUT PROVOGUE:-
Provogue is a fashion & lifestyle retail business owned by Provogue (India) Limited, a public company
listed on the Mumbai and National stock exchanges. The Provogue Brand was developed and launched
in 1998 as a Menswear fashion range of contemporary clothing with a styling that made it relevant for
the Indian market and quickly established leadership. Over the years the Brand has evolved into a
comprehensive collection of men‘s and women‘s fashion apparel and accessories and has won numerous
awards throughout its history. In 2011, the Provogue fashion collections are available through more than
350 doors across 73 cities pan-India.
The Provogue brand continues its heritage as India‘s leading fashion label, by continuously evolving
garment designs, introducing new categories, enhancing its retail environments and extending its reach
through new locations across the country. Most recently Provogue has introduced a range of fashion
watches, footwear, innerwear, sunglasses etc. to compliment the collections. Provogue has always
projected its brand through Iconic Brand Ambassadors and is today proud to have superstar Hrithik
Roshan and Sonakshi Sinha representing its brand through their youthful style, passion and vibrancy,
which reflects the brand‘s core values.
Provogue (India) Limited is one of the premier retail-centric companies in India and has grown
multifold since its incorporation in 1997. In addition to the fashion brand business, Provogue has its own
garment manufacturing facilities in Daman and Baddi, Himachal Pradesh to meet fast-to-market demand
and ensure the highest quality standards for its customers. In addition, Provogue operates an office in
Hong Kong to manage the sourcing of offshore raw materials.
Investment Considerations
The Apparel Industry is fragmented and highly competitive. There are a number of major players, but
there are also countless niche stores and private companies that cater to specific demographics. Too,
general merchandisers and foreign companies bring more competition to the sector. Consequently,
19. Apparel companies need to be nimble and highly efficient to survive in this cutthroat industry. Having
the right product is also essential. Fashion trends change frequently, and companies need to adapt to
varying consumer tastes quickly. Apparel stocks are economically sensitive. Although clothing is a basic
need, people have wide discretion as to when they update their wardrobes and how much they spend.
When times are good, apparel sales are usually brisk, but during periods of economic uncertainty and
contraction, clothing is an area where people can easily trim outlays.
Swot Analysis of Indian Apparel & Textile
Industry:-
The Indian Textile industry provides employment to 38 million people and thus, is the second largest
employment provider after agriculture. The Indian Apparel & Textile Industry is one of the largest
sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of
the total exports of the country. A systematic SWOT analysis of the textile and apparel industry
indicates the following:-
STRENGTHS:-
Labour Cheap labour and strong entrepreneurial skills
have always been the backbone of the Indian
Apparel and textile Industry.
Flexibility The small size of manufacturing which is
predominant in the apparel industry allows for
greater flexibility to service smaller and
specialized orders.
Rich Heritage The cultural diversity and rich heritage of the
country offers good inspiration base for designers.
Domestic market Natural demand drivers including rising income
levels, increasing urbanization and growth of the
purchasing population drive domestic demand
and also increasing number of malls.
Growing domestic market Growth in the domestic demand for fashionable
cloths and increase in the no. of malls in cities is
20. giving opportunities to the industry to grow.
Stable economic and social environment Democracy provides a stable economic and social
environment, putting international players at ease.
Easy credit facility plastic card revolution is increasing the purchasing
power, particularly of the younger generations
which also enhances the customer to buy more.
WEAKNESS:-
More dependence on cotton Due to over specialization in cotton, the bulk of the
international market is missed out, synthetic
products in India are expensive and fabric required
for items like swimsuit, sky-wear and industrial
apparel is relatively unavailable.
Spinning Sector Spinning sector lacks modernization and there is a
need of introducing new technology.
Weaving Sector India has relatively less number of shuttles-less
loom.
Fabric Processing Processing is the weakest link in the Indian textile
value chain, adversely affecting its ability to
compete in exports.
Poor Infrastructure High power costs and long export lead times are
eroding India‘s export competitiveness across the
textile chain.
Low Labour Productivity Productivity levels for manufacturing various
apparel items are far lower in India in comparison
21. with its competitors.
The unorganized sector sells out their product at
lower price with low cost of operational margin
Predominance of unorganized sector which dominates to the organized sector to carry
out their activities.
Technological obsolescence in the supply India is still lacking when it comes to properly
tackled supply chain management.
chain
Eg.VAT and multiple tax levies. Inconsistent
octroi and entry tax structure. Presence of large
Taxation hindrances
grey market
OTHER WEAKNESSES:-
Less attention on man power training
Poor quality standards
Distance of the potential market
Lower average consumption in domestic market
Lack of professionalism and integration of supply chain
Dependence on quota system
Very low investment on R&D
Limited exploitation of economies of scale
OPPORTUNITIES:-
Increasing demand Due to the increasing awareness in the customer
mind there is increase in the demand for the
branded products in the market even in the middle
class and lower income group.
22. NPD ( New Product Development ) Research and new product development can help
the companies to move across the value chain and
make their activities as flexible as they can.
Rural sector remains untouched Retail sector in rural India is almost untouched due
to poor infrastructural facilities.
Increasing demand for the luxury brand Due to the increasing influence by the international
brands there is the demand for the luxury brand
THREATS:-
Increased competition Increased competition in the domestic market by
the local brands with the low price offering does
not allow the big brands to enjoy their offering to
the customers.
Cheaper imports Due to the cheaper imports from the country‘s
such as china act as a threat to the apparel industry
of India.
Price of land, high rental cost High price of the rent and high cost of land also
adds to the cost of expenditure that the companies
need to maintain additionally.
23. RESERCH METHODOLOGY
Background of Problem:-
The report focuses on the in-depth study on the Indian retail apparel industry and customer perception
about the brands. In this study I have take five major players PANTALOONS, SHOPPERSTOP,
PROVOGUE, RAYMONDS and GLOBUS where I have tried to analyze that which of these brands attract
the customers.
Objective of Study:
Approach to Problem:
The research realize mainly on primary data collected of 50 sample size of students between all age
group. This has been collected with help of questionnaires circulated among students. The question
is based on the consciousness of the customers about the brands, their buying behavior, their
preferences towards brands, price preference so as to analyze the perception of customers towards
brand. The data is then statically presented to understand the preference in every parameter which is
being considered.
Type of research design:
An exploratory research was designed to collect data from respondents and to analyse it. The
exploratory research helped to select the best-suited options in the design, data collection methods,
etc.
Data collection source:
The data collection source was primary as well as secondary data. Primary data was collected
through questionnaire method and the secondary data were collected from companies websites, and
other best suited websites which provide best and relevant information about the companies,
manuals etc.
