1

“Opportunity For Fabindia To Tap The Unstitched/Ready- To- Stitch

Fabric Market As An Add-On Business”.

FABINDIA OVERSEAS LIMITED

By

Medhavi Jain

MUM13MM11

Under the guidance of Prof. Tanmay Kandekar

Batch 2013- 2015

Master of Fashion Management

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Department of Fashion Management Studies

National Institute of Fashion Technology

[Mumbai]

CERTIFICATE OF OWNERSHIP AND ORIGINALITY

All statistics are drawn from official, national and international sources unless otherwise indicated.

All the information in the report is verified to the best of author’s ability but does not accept

responsibility for the loss arising from decisions based upon them.

This report has been prepared for the exclusive academic use of National Institute of Fashion Technology.

All rights reserved. No part of the report may be reproduced, or transmitted in any form or by any means

without the prior permission of the authors.

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CERTIFICATE FROM FACULTY MENTOR

This is to certify that Ms. Medhavi Jain has completed the Degree Project entitled “Opportunity For

Fabindia To Tap The Unstitched/Ready- To- Stitch Fabric Market As An Add-On Business” under my

guidance. She has been submitting the progress report on time. She is hereby allowed to participate in

the internal and external jury for Degree Project.

(_________________________)

Name of Faculty Mentor:Mr. Tanmay Kandekar

Date:13th may, 2015

Place: Mumbai.

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DECLARATION

I, Medhavi Jain hereby declare that the Project entitled “Opportunity For Fabindia To Tap The

Unstitched/Ready- To- Stitch Fabric Market As An Add-On Business” is my original work and no part of

the project has been copied from any other reports or any other were carried by someone else and this

have been submitted for any other degree/award. However, any material taken from any other published

sources has been suitably referred and acknowledged at various places.

Name: Medhavi Jain

Roll Number: mum13mm11

Batch: Master of Fashion management,2013-2015

Centre: NIFT, Mumbai

Date:13thMay, 2015

Place:Mumbai

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ACKNOWLEDGEMENT

I am grateful to NIFT for providing me an opportunity to do research work on “Opportunity For Fabindia

To Tap The Unstitched/Ready- To- Stitch Fabric Market As An Add-On Business”. I express my whole

hearted thanks to my faculty guide Mr. Tanmay Kandekar for her encouragement and moral support in

organizing my work and giving me valuable tips for making it presentable.

I am indebted to Mrs Anuradha Kumra, Creative Head at Fabinida my industry mentor who has guided

and supervised me throughout this study. I have no words to express my gratitude to her.

I am also thankful to Mr, Sumit Arora and Mr. Shivam(former) of women Indian Category Heads

providing me the details of conducting the research from its inception.

I will be failing in my duty if I do not mention the name of my CC Ms. Lipi Choudhary and other faculty for

his help in my Degree Project

TABLE OF CONTENT

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SR.NO TOPIC PAGES

1 INTRODUCTION 1-19

1.1 COMPANY PROFILE

1.1(A) COMPANY OVERVIEW

1.1(B) BUSINESS OVERVIEW

2 RESEARCH METHODOLOGY 20-21

2.1 RESEARCH DESIGN

3 LITERATURE REVIEW 21-32

3.1 WOMEN’S INDIAN WEAR INDUSTRY

3.2 RTS INDUSTRY

4 COMPETITIVE ANALYSIS 33-37

5 CUSTOMER ANALYSIS 38-46

6 GAP ANALYSIS 47-50

7 MOCK RANGE 51-53

8 LEARNING 54-55

9 RECOMMENDATIONS 56

BIBLIOGRAPHY

ANNEXURE

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CHAPTER-1

8

CHAPTER-2

9

CHAPTER-3

10

CHAPTER-4

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CHAPTER-5

12

CHAPTER-6

13

CHAPTER-7

14

CHAPTER-8

15

CHAPTER-9

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Executive summary:

Fabindia was founded with the strong belief that there was a need for a vehicle to market

the vast and diverse craft traditions of India. Our endeavour is to provide customers with hand

crafted products which help support and encourage good craftsmanship.

My project is focused on options by which we can explore the untapped opportunities in the

Women’s Indian Department to increase the business size and products offered to the customer.

After thorough research I saw the scope for Fabindia to tap the unstitched dress material market

which is still growing at a rate of at 7.9 percent annually.

This need was felt when we went for a Pakistani exhibition and Surajkund exhibition at New

Delhi. It was astonishing to see the demand for unstitched dress material among the ladies. A lot

of consumers were witnessed shopping the same.

• In this project, I have done Research on the current unstitched/ready- to- stitch fabric

market and reason for seeing it as an opportunity for Fabindia

• Analysing strategies adopted by other brands to cater to customers demanding

unstitched or semi-stitched garments

• To understand the needs of the Fabindia customers for the unstitched/ready- to- stitch

fabric market

• Strategies to bridge the gap, if any

• Suggestion of a mock option plan

Through this project I conclude that there is a vast scope for Fabindia to venture this sub-

category and it should be launched in the top stores in limited numbers as test marketing

to see the response of the customers. We also observed a lot of stores who are into

Indian crafts already doing the same business quite well. This justifies the reason for

Fabindia to start this new sub-category of unstitched dress material.

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Company Profile:

Fabindia- Fabric of India

“Fabindia was founded with the strong belief that there was a need for a vehicle to market

the vast and diverse craft traditions of India and thereby help fulfil the need to provide and

sustain rural employment.”

“Our endeavour is to provide customers with hand crafted products which help support and

encourage good craftsmanship.”

John Bissell

The Vision

At Fabindia we celebrate India, and endeavour to bring all that we love about India to customers

around the world.

The Mission

We will harness the transformative power of a well-run business committed to profitable growth

in support of Fabindia‟s Vision.

We will strengthen and support our community of customers, designers, artisans, farmers, makers

and entrepreneurs inspired by India.

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We will give our customers products that delight them by interpreting our rich heritage and

traditional knowledge, while protecting the natural environment.

Values & Guiding Principles

To remain true to our company‟s history and our founder‟s original Vision: "In addition to making

profits, our aims are constant development of new products, a fair, equitable and helpful

relationship with our producers, and the maintenance of quality on which our reputation rests."

– John Bissell

To ensure that we delight our customers with our products and service, and always make them feel

that they are getting great value for their money.

To design, make and sell products with intrinsic worth that comes from the original designs,

knowledge, care and skill with which these are made.

To be true to our commitment and history as an ethical and trust-worthy brand promoting a stake-

holder based community model of inclusive capitalism.

To constantly share our Vision with our employees, suppliers, business associates and customers,

so that we collectively ensure that all our actions are in service of our Vision, Mission and

Guiding Principles.

Early Times

John Bissell who founded Fabindia was born in Hartford in Connecticut and was educated at

the Brooks School in North Andover, Massachusetts, and at Yale. He was introduced to India

by his father, who told him stories of his time in India when he was posted there during the

Second World War. John Bissell worked as a buyer for the American departmental store,

Macy‟s. In 1958, under a programme run by the Ford Foundation, he came to India to advise

the Central Cottage Industries Corporation created by the Indian government, on showcasing

Indian handlooms and handicrafts. His role was to advise on issues relating to marketing

Indian handicrafts. He was new to India and he did not know any Indian language. In spite of

these inconveniences, he travelled extensively over India and met several craftsmen. He came

across a lot of skill, among craftsmen but he also observed that they had no idea about

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marketing their products and they were in no position to access distant urban or international

markets. He liked his experiences in India and hence kept coming back. What Bissell

discovered was a village-based industry with a profusion of skills hidden from the world.

However, they lacked the skills to market their products and access the large urban and

foreign markets.

Determined to showcase Indian handloom textiles, and providing equitable employment to

traditional artisans, and sensing an entrepreneurial venture, Bissell established Fabindia in

1960. It was also to fuse the best aspects of East & West collaboration. Initially, Fabindia

started as a wholesale export company, concentrating on the export of upholstery fabrics,

durries and rugs.

Initially his goal was to export to the US and to other western countries. With that aim in

mind, he incorporated Fabindia in 1960. The company operated from Bissell‟s residence in

the posh Golf Greens locality in New Delhi. Growth was initially slow for the company and in

1965 the company moved out of his house into a proper office. By then, Fabindia had an

annual turnover of rupees Rupees 20 lakhs. Most of this turnover was accounted for by a

single buyer and a single supplier. A. S. Khera made durries and other home furnishings in his

workshop in Panipat and most of the output was purchased by the UK based Habitat, which

was founded by a famous interior designer, Sir Terence Conran.

Retail Foray

Bissell‟s Greater Kailash shop was a success. It attracted a distinct category of customers.

But in spite of such success in its direct retail business, Fabindia remained dependent on

exporting and Habitat continued to be their single major buyer. In the early 80‟s, Fabindia

made a significant addition to its product range by adding ready to wear garments too in their

retail offerings. In an interview in 1977, Bissell said, „‟The greatest thing that happened to our

business was the move in Europe and America a few years back to the natural look - natural

textures, natural fibres - and away from things like polyester and nylon‟‟. Similarly, like in

Europe and America in India, a distinct group was emerging. Some of India‟s new young

politicians, media stars and other celebrities patronized Fabindia and were able to provide

Fabindia with nationwide exposure for its products. In spite of all that, its domestic retail

business grew slowly. It continued to focus on export business.

However as time passed Fabindia's marketing shifted from exports, to the local Indian retail

market. This was especially so from 1990s.

In 1999, on John Bissell‟s death, his son William aged 32,formally took over as the

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Managing Director of Fabindia. The Company‟s domestic expansion had been spectacular

after William took over. By 2001, Fabindia had six stores concentrated in the metro cities. By

the end of 2004, these had increased to 20, and the company was seriously considering

expanding its stores into the tier-II and tier-III, cities as well as overseas. By the end of 2007

Fabindia had 75 retail stores across India and in addition, stores in Dubai, Rome and

Guangzhou in China.

Fabindia across India

What started as an export house has today become a successful retail business presenting

Indian textiles in a variety of natural fibres, and home products including furniture, lights and

lamps, stationery, home accessories, pottery and cutlery. In 2004, food products range was

launched and in 2006, Fabindia Sana, their authentic body care products range, was launched.

Recently, it has also ventured into the jewellery segment. However, the major chunk of

Fabindia‟s product range is textile-based.

The company has continued its focus mainly on the artisans and sources its products from

over 15,000 craftsmen across India. With a strong foundation, the company has been

successful in increasing its presence all over India.

Channels of business

It has created a visibility in the international market either through its own stores or through

other retailers and boutiques and also through institutional sales. The main advantage

Fabindia has enjoyed is that its products have a distinctive and quintessential style and it can

easily be identified by potential customers.

Retail

The retail channel is already developed within India with almost 100 stores in Tier 1 and Tier

II cities. As of today, internationally Fabindia owns stores in Rome (Italy), Guangzhou

(China), Dubai (UAE), Manama (Bahrain) and Doha (Qatar).

The product range consists of garments for men, women, children and infants; garment

accessories; home furnishings – bed, bath, table and kitchen linen, upholstery fabric, curtains,

floor coverings and a range of non textile products like furniture, lights, lamps and stationery.

In addition to handcrafted clothing and home furnishings, Fabindia‟s product line includes

organic foods and body care products.

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Wholesale exports

As of today, Fabindia exports to more than 34 countries. The clients are wholesalers as well

as secondary retailers. Products exported include home linens as well as garments. Exports

are done as per the Terms and Conditions agreed by Fabindia and the customer.

The export being a very lucrative market, Fabindia develops a special collection for exports

markets twice every year. The special collections are showcased at the Indian Handicrafts and

Gifts Fair, New Delhi in Spring and Autumn. This collection draws on different techniques to

present a range of home furnishings comprising bed and table linen, with a focus on textures

– both visual and tactile. As different wholesalers and retailers flock to these fairs to address

their sourcing needs, Fabindia is able to reach out to potential clients.

Institutional Sales

Fabindia envisages to service high business institutional segment especially the heritage

hotels and multinational corporate houses. It provides customization and interior designing

consulting for clients like heritage hotels, resorts and corporate houses.

Mechandise Mix:

During the early days, merchandising was not a planned activity. Whenever Bissell saw

something of interest, he procured it for display at the store. Sometimes he would also invite

the craftsmen , to display the products and assist in the sale. This orientation of customer

relationship later became a part of the company culture.

The expansion in merchandize mix is mainly done through customer feedback especially that

of its loyal customers. Fabindia believes: “ A delighted Customer is our Best Brand

Ambassador”

Fabindia does not follow any customer acquisition strategy. It instead focuses on customer

retention. Fabindia creates its market through its existing customers which is quite evident

from the fact that about 85% of its customers are repeat customers. The Unique Selling

Proposition of Fabindia is the quality of the fabric and the traditional style, which is always in

vogue. It has designed the stores‟ decor and ambience keeping this in mind. It constantly

attempts to improve the quality of the products in order to retain its customers.

The company concentrates on customer feedback by maintaining a visitors‟ register to record

customer views. The store managers prepare a report on buying pattern among consumers

which is periodically reviewed by the Product Selection Committee at Fabindia . Recently,

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the CRM software has been implemented in a select few stores which aims to help in

maintaining a centralized database. This will help Fabindia in retaining customers by building

lasting relationships and improving loyalty. The implementation, however, is still in its

nascent stage, but is soon expected to be spread across all the stores in the country. Fabindia

also has the Mystery Shopper Program to gauge the customer satisfaction level. Mystery

shoppers posing as normal customers perform specific tasks such as purchasing a product,

asking questions, registering complaints or behaving in a certain way and then provide

detailed reports or feedback on their shopping experiences to the management. It serves as an

effective tool to improve the customer experience.

Moreover, the brand managers at Fabindia rely upon a concept of intuition. If a new line of

traditional kurtis is launched, the jewellery which suits the attire also gets launched. It

automatically gets sold without any promotion. Before launching any new product, be it

traditional, western, organics, jewellery or furniture, Fabindia looks into the value which a

customer may feel by having the product as a part of his/her life. Some customers are so

inclined to Fabindia that they just don‟t believe in going elsewhere else, and don‟t even tell

other people that they have purchased the particular item from Fabindia.This helps them

create an image of exclusiveness . Hence, uniqueness, innovation and intuition are the most

important aspects of of Fabindia‟s product planning.

Store layout and location:

The store layout in Fabindia depends upon the type of store. Fabindia works on various types

of stores which include concept stores as well as full fledged store. In a posh locality in a

metropolitan city, Fabindia works as a full fledged store which has almost all the product

lines. On the other hand, in a concept store, the place specific products are retailed. Market

potential determines store location for Fabindia, which is fast expanding in Tier II cities like

Bhopal where still mall culture is non existent.

The layout usually keeps clothes section at the back of the store and the entrance area is

utilized for home products. The exclusive jewellery counter is also kept in the fronts.

Why Fabindia?

Fabindia since its inception has concentrated on cultivating an image of „Indianness‟. Relying

on its word of mouth publicity, Fabindia has been highly successful in creating a pool of

repeat customers, who come again and again for the unique Fabindia experience.

The core values of Fabindia have always been to provide its customers with quality products

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which reflect the unique Indian culture and tradition. Since most of Fabindia‟s customers are

repeat customers, the motivating factor for the customer remains the quality and consistency

of product and the service provided by Fabindia.

The major problems for Fabindia occur in the maintaining the consistency of the products.

Since the supply and the manufacturing happens on a small scale over a large geographical, it

becomes difficult for the firm to maintain the same level of quality. Fabindia makes sure that

a minimum level of quality is maintained, but it also has strong relationships with all its

suppliers. It makes sure that a supplier does not suffer due to marginal quality lapses. The

Fabindia customers also understand this and are largely tolerant of the discrepancies in

garment in terms of size & prints etc. In fact, over 77% of the customers buy Fabindia,

because of the „Fabindia‟ brand and its contribution to improving the life of rural artisans.

Fabindia has in store posters which educate customers about the dyes used in the products,

and also the possible problems which could be faced in washing and using them. Thus,

Fabindia has succeeded in making the inherent inconsistency of the product into an appeal

factor by positioning each garment as „unique‟.

Also, even though the products sometimes have problems due to the fading of colours, or

shrinkage, the service personnel make sure that the customers are not inconvenienced on

account of such problems. The general response is to exchange the garment for another,

which makes sure that the customer goes back happy, and remains a loyal customer.

In case of organic products, it is still a nascent market. Itts appeal is mostly to people who are

already aware of the product offering and have been using similar products. The major

problem there is erratic delivery and product availability, which does lead to customer

dissatisfaction. But this is a very small part of the clientele. Over 83% of Fabindia‟ s

customers go abck satisfied, with 58% being highly satisfied with the brand and its offerings.

Fabindia has been expanding its product range to include jewellery, home furnishings, Body

care products, etc. This has mostly been done as an extension of the Garment brand. For

example, the men‟s garment range was started because the founder, John Bissell, needed

shirts. Therefore, for quite some time, the Fabindia men‟s garment line was restricted to shirts

and that too in only one size, because it was John‟s shirt size!

Although Fabindia appeals to the Indian customer‟s need to remain rooted with the tradition

and culture, it has made sure that it changes with the times. It had inculcated a large number

of western fashions and garments into its range. This is done keeping in mind the customer

feedback received and the inputs given by the store managers. Fabindia relies on its managers

to identify client needs and trim the store offerings accordingly.

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Competition:

Competition Faced by Fabindia is from both the organised and unorganised retail sector. The

unorganised sector has the local tailors who provide customised garments to the customers

at reasonable prices and the local NGOs selling wares. However, the scale of operations does

not pose a major threat to Fabindia.

One such competitor is the Delhi Haat, an upgraded traditional weekly market, located in the

hub of south Delhi. The place has been developed by the Tourist Department of Delhi to

enhance the craftsmanship of our country. It is an amalgamation of craft, food and cultural

activities. Unlike the village haat, the Delhi haat is a permanent haat that offers a

kaleidoscopic view of the richness and diversity of the Indian handicrafts and artefacts.

Spread over a spacious six acre area, imaginative landscaping, creative planning, and the

traditional village architectural style provide for a major tourist attraction. One is very happy

to get goods at a very nominal price here.

Another such regional competitor is the market outside the law garden in Ahmedabad. The

law garden is a famous place for buying handicrafts and Gujarati outfits from local hawkers.

This garden provides one with various recreational options like music, theatre, rides for kids

and a great variety of Gujarati food.

The common thread that links both the Delhi Haat and the Law Garden is the experience they

create for the customer by combining crafts, food and cultural activities. Such an experience

is lacking in case of Fabindia. A tourist would be lured by the overall ambience he gets in the

former case.

However, a far greater threat is posed by the organised sector especially Government owned

Khadi Gram Udyog outlets and Cottage Industries Emporiums across the country. The

product mix offered by both is similar to Fabindia. Also, they have the backing of the

governments. However, the quality of products and service provided by Fabindia is perceived

to be higher than that of the government run outlets.

Fabindia‟s main competitors are the ethnic wear retailers like Khadder, W and Good Things,

who are also expanding at a rapid pace. W, for example, has well over 30 exclusive stores

now, in addition to being available at some multi-brand outlets.. There is also severe

competition from the ethnic wear labels of modern Indian retail chains, such as Shoppers

Stop and Pantaloons. Stand alone stores like Shristi and Biba in Bangalore, Prapti in Kolkata

and Sadka and Shoma in Delhi have been doing well for a while and could pose a challenge

by expanding. New competition is expected from overseas retailers also. The government

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has already permitted single brand retailers to set up shop and others like Carrefour, Walmart

and Metro have devised ways to get into the Indian market. Powerful Indian business houses

like Tata, Reliance and Birla are expanding their retail businesses.

The organised retail sector also includes outlets by corporate houses like Lifestyle and

Westside which cater to the same demographic profile. However, the products served are

more contemporary in nature and does not aim at the same target audience. Stores like

Anokhi have the same target audience, but do not have the reach of Fabindia.

International Presence

Fabindia has gradually attained a strong foothold in India. It has become the niche player of

choice for the urban and semi-urban masses when it comes to buying something with “Indian

flavour” added. The constant product innovations and agility in identifying associated

product lines has been the key. Be it garments with distinctive folk patterns to furniture with

carvings and designs reflective of rich Indian heritage, the products have an intrinsic appeal

to customers.

As of January 2009, they have 97 stores across the length of the country. They have also

opened international stores in Italy, UAE, Qatar and China. Their network is spread across 34

countries worldwide and 511 destinations in India.

Fabindia Products

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The major portion of Fabindia‟s product range is textile based. Non- textile introductions to this

range are Home Products (introduced in October 2000), Organic Food Products (introduced in

July 2004) & Fabindia‟s range of authentic Personal care products (introduced in March 2006).

The textile-based product range includes ready-to-wear garments and accessories for men, women,

teenagers and children; bed, bath, table and kitchen linen; floor coverings, upholstery fabric and

curtains. Cotton, silk, wool, grass, linen and jute are the basic fibres used.

The Home Products range carries furniture, lighting, stationery, tableware, cane baskets and a

selection of handcrafted utility items.

Fabindia Organics carries several types of cereals, grains, pulses, spices, sugar, tea, coffee, honey,

fruit preserves and herbs.

Fabindia's range of authentic Personal care products includes soaps, shampoos, hair oils, pure oils,

moisturisers, body scrubs, face packs, hair conditioners & special skin care products.

Garments

Accessories

Home linen

Home furnishings

Home products

Floor coverings

Personal products

Organics

Organic Certification

Fabindia's Categories of Food Products

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Products displaying our Green logo are 'Fully Certified' Organic. All processes, from

growing to preparing to packing have been done according to National and International

standards, verified by accredited agencies.

Products displaying our Blue logo are 'In Conversion'. This means that the farmer is using

purely organic techniques, and has registered and is complying with set standards. Farmland must

be managed organically for about 3 years before it can be fully certified.

Products displaying our Yellow logo are 'Natural'. This category contains products

produced by small farmers who use purely organic techniques, but who have decided to not yet

register for certification. It also includes some processed foods, which do not contain any synthetic

preservatives, colours, flavours or additives.

National and International Standards

India's organic certification standards are set by the National Programme for Organic Production

(NPOP), which are based on standards set by the International Federation of Organic Agriculture

(IFOAM).

In India, there are a handful of certifying agencies accredited by NPOP. Farmers and producers

must register with one of these agencies, who will in turn verify whether NPOP standards have

been met.

For certified Organic products, look for a certified agency's logo, for example SGS, and NPOP's

India Organic logo.

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Business Overview:

Women‟s Indian Department

Kurta Med

• Contributing a whooping 65% to the total Women‟s India sale Kurta Med is the largest

selling category in the Women‟s Indian offering.

• Kurta Med is available across different fits like A-Line, P Cut, Bias etc & in different

sleeve lengths for e.g. H/S, S/L, 3/Q, Cap sleeve etc.

• The Standard width of a Fab India Kurta Med is 38 inches from HSP.(for a Medium

size)

• Some of the fabrics in which Kurta Med is offered are as below:

Women’s Indian

Kurta

Kurta Med

Kurta long

Fab@ Large Kurta Long

Bottoms

Churidar

Salwar

Patiala

Lounge Wear

Kaftan

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Woven: Mang Pln, Mang Z bdr, Mang Str, Dobby, Ikat, Extra weft etc.

Printed: Kalamkari, Ajrak, Dhar, Mang Ptd, Chanderi Ptd, Tussar Ptd etc.

KURTA LONG

• Contributing 13.55% to the total Women‟s Indian sale Kurta Long is the second

largest selling category.

• Kurta Long is available across different fits like A-Line, P Cut, Bias ,Anghrakha,

Kalidar ,Anarkali etc & in sleeve lengths like H/S,S/L,3/Q, Cap sleeve, Megyar sleeve

etc.

• The Standard length of a Fab India Kurta Long is 40 inches form HSP.(for a Medium

size)

• Some of the fabrics in which Kurta Med is offered are as below:

Woven: Mang Pln, Mang Z bdr, Mang Str, Dobby, Ikat, Extra weft etc.

Printed: Kalamkari, Ajrak, Dhar, Mang Ptd, Chanderi Ptd, Tussar Ptd etc.

FAB @LARGE

• We also offer a range for the plus sized women-Fab @large wherein we offer sizes

larger than XXL

• This range needs to be separately displayed in the store

• The Standard width of a Fab India Kurta Long is 44 inches from the HSP.(for a size 0

& 1) and 45 inches from the HSP (for size 2 & 3).

• Some of the fabrics in which Fab @ Large Kurta is offered are as below:

Woven: Mang Pln, Mang Z bdr, Mang Str, Dobby, Ikat etc.

Printed: Kalamkari, Ajrak, Dhar, Mang Ptd, Tussar Ptd etc.

STYLES/FITS

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Fits Mini Kurta Long Kurta Kaftan

A Line √ √ √

Bias √ √

Kalidar

√

Phiran

√

P-Cut

√

Shoulder-Panel

√

Angrakha √ √

Anarkali

√

DoriLoop √ √

Types of products:

ESSENTIAL

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CLASSIC

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ARTISANS

• These are the products which are highly craft intensive and represent exclusive forms

of handicraft.

• Due to their exclusivity & the handicraft work done on them , these products are

highly priced

• Made in restricted numbers; these styles are to be showcased in selected stores in a

very special manner, highlighting the craft involved ;almost like telling a story of the

craft – E.g. Benarsi silk garments, exquisite embroideries on chanderi and silks.

PREMIUM

• These are products which are craft oriented and usually have an element of hand work

done on them in terms of embroideries, hand block printing, surface ornamentation etc

though these are not as exclusively handcrafted as products in the artisan range.

• These are available only in select stores and fresh ranges using the specific craft

techniques are introduced every year.

FLAGSHIP

• Available only in the Flagship stores; these products are highly craft intensive and are

made available for the more discerning customer.

• These are one time offerings and are usually done in very small quantities.

Work procedure:

SEASON / RANGE FINALISATION

1. Brief to be issued by Business head / Category head or concerned person.

2. Two types of development

FABRIC

-Design Reference Swatches received

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-Review w/concerned person and revert

to vendor.

-Rejected – notify / if yardage is required

-Ask for ydge and if modification reqd .request for same.

-If yardage recd , must come with IDF .

(annexure..)

-Ydge swatches to be filed in Fabric file.

-common file used for garment reference and

Fabric .

- Ask for color approval where ever fabric is approved.

GARMENT SAMPLING

JOB WORK

1. Yardage sourced by PSC.

2. Fabric t/b issued out to concerned vendor /PH for sample Development.

3. Developments Sample must W/costing in attached format and left over fabric

DIRECT PURCHASE

1. Sampling being developed directly by vendor/ pH

2. Developments Sample must be submitted along submitted along with the cost

- All samples received must be entered in Main tracker

- Review with Category/ Business heads and give feedback to vendors /PH‟s

- Rejected samples to be returned immediately.

- Samples should be returned for modification.

- Selected samples to be kept with PSC.

- In parallel Ramanto work on BUY PLAN.

- B2b Shoots to be done.

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- After modified samples are received complete range should be re reviewed along

with the selected samples and Range finalization to be done as per BUY PLAN.

- Complete range with the correct Modified samples / Tracker/ B2Bimages to

production team.

- Stamping to be done on the samples.

- Notify vendors on range finalized and cost negotiation to start.

- Range to be presented to MRH.

- After MRH, Color Developments of the base & Trim Fabrics should be

submitted along with the original swatch Cards.

- PH/Vendors to be clear that they need to submit base /trim fabrics/ any emb options

color wise together for one shot approval.

- If not submitted as required color closure would be open ended.

- If original color swatch not submitted PSC would cut the original sample for

reference.

- Fabric swatch sizes should be 8”x8” and 1 Counter to be submitted for PSC record,

No approval will be advised on small cuttings.

- Once approved – approval to be advised over email and signed swatch to h/over.

And PSC needs to dofiling of the approved counters.

- Approved color way to be tallied with perennial bottom color, if it doesn‟t match

Matching bottoms to be ordered with it.

ORDERING

- Once range is closed as per BUY plan, final tracker to be circulated within the team

internally and PH‟s.

- Please follow Tracker format as per attached (annexure).

- Tracker will be on shared Docs and concerned people would need to update their

respective areas timely.

- Parallel quantity to be plugged style wise as per the Buy plan.

- Order Templates to be made.

- Templates to be sent to market with all the relevant details.

- Orders are to be received from Markets within a week‟s Timeline.

- Quantities to be consolidated and DL‟s to be forwarded to Category Head.

- Final Updated tracker to be shared with the Category head.

35

- Then the tracker would be forwarded to CS for Sign off.

- Once Sign Offs happen category head to place order and PO‟s to be released

parallel within 2 days.

- Hard copied of PO‟s to be signed off by category head. 1 copy to be h/over to PH

and other to be filed along with the approved swatch cards.

GARMENT SPECIFICATIONS.

- Specification sheet to be created with the help of quality team with the consultation

Category head and Merchandise production team.

- Specification sheet to be shared with specific subject eg: WI/ Season /Order No :

11/ PH /spec sheet/S code

- Specification sheet /sample to be sent back on the same day when specs are

released from PSC / PH.

PRODUCTION /SHIPPING

- Fabric to be ordered at the release of garment order.

- Fabric approvals should be submitted in parallel to PSC fabric dept for quality and

color sign off.

Quality parameters are attached as annexure.

- Fabric Quality approval will be advised by fabric department while color & hand

feel approval will be given by PSC category head.

- Proto sample to be submitted within a 7-10 days of specs being released.

- Proto sample comments to be advised with 4 working days.

- Once proto is approved within a day graded spec sheets to be released.

- After graded spec sheets are release Size sets are to be submitted within a 7-10

days at HO along with the patterns.

- Size sets are to be reviewed and comments to be released within a week‟s time.

- PP samples in all color ways are to be submitted together for review and go ahead

within 15days of size set approval.

- Trim cards to be submitted along with the PP samples.

- All the Size set approvals should be 30-35 days prior to their delivery date.

- Weekly production follows ups to be done with vendors/PH. Every

Tuesday/Wednesday.

36

- On an ideal situation the DL‟s should be uploaded on AOM around 56 days before

EDA dates.

Research topic:

A. Title : Opportunity for Fabindia to tap the unstitched/ready- to- stitch fabric market

Objectives:

Research on the current unstitched/ready- to- stitch fabric market and reason for seeing it

as an opportunity for Fabindia

To analyse strategies adopted by other brands to cater to customers demanding unstitched

or semi-stitched garments

To understand the needs of the Fabindia customers for the unstitched/ready- to- stitch

fabric market

Strategies to bridge the gap, if any

Location:

The place of research was Fabindia Head Office, Delhi

The place of research was Fabindia stores in Delhi for the Customers survey

Type Of Data:

37

The data collected for research is both primary and secondary but majorly of primary in

nature because most of the information was collected on personal interview basis or based

on personal observations.

Data Required

We got 100 questionnaires filled by the respondents.

Respondents were only Fabindia customers who have bought kurta from Fabindia before.

Data Collection Method:

Survey Method

o personal interview

o personal observation

Sampling Techniques:

Quota Sampling Technique for Personal Interviews

Data Analysis:

I used Graphical Tools & descriptive analysis to analyse the data. I used Microsoft Excel

and SPSS to analyse and present the data inform of charts and frequency distribution

tables.

Limitations:

Location: only Delhi

38

Literature Review

Ethnic Wear Market in India

Presently valued at USD39 billion, the Indian Apparel market is expected to grow at a CAGR of

9.5% to reach USD 60 billion by 2017. The women‟s wear segment contributes a large share of

38% to the total market and will continue to grow at a CAGR of 10% over the next decade. The

optimistic growth of the sector is due to the increase in the number of working women. Over the

next decade, India will witness an increase of more than 10 million ladies within the working

middle class across the top 115 urban Indian cities, thus presenting a potential of 35 million

consumers by the year 2020 in the relevant cities. Further, since this growing population of

women includes a large proportion of working women, there will be a corresponding increase in

the disposable income of families. This surplus income within households will directly impact the

consumption of both essential and lifestyle products, such as various apparel categories. Ethnic

wear comprises 75% of the total women’s wear market, at USD10.82 billion. It is a dominant

contributor and will continue to grow at an optimistic 9.3%. This category offers a unique blend of

comfort and fashion to the consumer making it the preferred apparel for most occasions. Although

sarees have the largest share of 53% within the segment, the salwar kameez category will be the

primary driver of its growth. The salwar-kameez category contributes almost 38% to the

overall ethnic wear market and is growing at 10.8%. The preference for salwar kameez and

39

sarees is a regional choice; in northern regions of India, it is the preferred apparel for both regular

and festive occasions as it has been a traditional garment across generations while other regions

also prefer sarees for special occasions. While the Tier I cities tend to be strongly governed by a

traditional usage of the sari, the ethnic wear category is increasingly becoming the category sought

as it offers both convenience and conformity. Thus the focus tends to be on comfort fabrics such

as cotton with mid-fashion quotient. Currently, ethnic wear is dominated by the unorganized

sector. Interestingly, the unbranded and unorganized sectors straddle all segments of the

Indian ethnic wear market and continue to dominate 85% of the market. Further, in the

organized sector, the largest skew of brands‟ as well as formats‟ product offerings is within the

mid-premium segment. Overall, the sector is fragmented, with few brands having a strong

positioning. The lack of clear product and service differentiation has however led to low brand

loyalty and few national brands are gaining salience. The organized sector is dominated and driven

by brands and formats offering mid-fashion, contemporary wear. Ready-to-wear (RTW) has a

greater presence in the organized sector in comparison to Ready-to-stitch (RTS). Consumers

are increasingly seeking convenience, comfort, and style from the ethnic wear segment and this

trend seems to be driving the growth of modern formats, the organized sector, and Ready-to-wear.

The quest for convenience as well as fashion is reflected in the skew towards RTW product

offerings from key brands and formats. Further, the RTW segment will continue to grow at an

optimistic rate and also drive the growth of the organized sector. A limited number of brands

focus on RTS offerings within the organized sector. The preference for RTW and RTS differs

based on region and occasion. In the larger cities, RTS fabrics are preferred primarily for

special occasions as it offers the option of customizing embellishments and styling the

offering’s uniqueness. Being a regular article of clothing for most consumers, ethnic wear

emerges as a mid-involvement category leading to a fairly high purchase frequency and impulse

buying, although specific occasions tend to witness higher involvement of the consumer in the

decision making hierarchy. Consumers spend moderate amounts on ready-to-wear salwar kameez

with a high frequency of purchase. Ready-to-stitch, being an occasion-based wear, witnesses a

lower frequency of purchase but with higher ticket value. Characterized by the rising number of

independent women indulging in value-seeking shopping behavior, ethnic wear has transitioned

from being just traditional wear to daily wear that combines tradition with contemporary fashion.

Brands have identified the transition and offer products positioned across occasions as casual,

formal, weddings, semi casual. etc. They are targeting the younger generation with ethnic wear

being positioned as affordable, comfortable, and contemporary fashion. Fashion quotient is a

combined function of fabric, innovative and contemporary styling and vibrant, varied colors.

40

Women‟s ethnic wear market:

The unorganized segment, which traditionally, and still largely, caters to the ethnic wear industry,

has demonstrated steady growth over the past years and is set to grow further by 8.4% over the

next decade from the present INR 61,679 crore, or USD 11.63 billion. Modern retail, especially

large format retailers are ramping up their expansion plans across metros and Tier I & Tier II

cities. This will contribute significantly to the growth of the Indian ethnic wear market. The

women’s segment currently accounts for an overwhelming 87% of the total ethnic wear

market at INR 54,425 crore (USD 10.26 billion); it is the growth of this segment that will

continue to drive the overall sector.

The women‟s wear segment alone is expected to grow at a steady rate of 8% over the coming

decade. The opportunities thrown up by the wedding/bridal market in India are tremendous. Right

from local boutiques to established traditional retailers and regional brands, every bridal wear

retailer is vying for a share of the loyal consumer‟s wallet in a market that is governed more by

design than brand. Niche brands such as Manyavar, Diwan Saheb, and Vastra are few examples of

players that have managed to command a premium for their services. Owing to the religious and

cultural diversity of India, a wide range of occasions are celebrated. Such celebrations typically

start early in the year in January, when Northern India celebrates Lohri, and culminate around

October November with Dussehra and Diwali. On such festive occasions, consumers tend to

purchase ethnic wear for both personal use and for gifting, as brands typically bring out new

trends and designs to coincide with a festive occasion. These occasions typically drive the growth

for women‟s, kids‟, and men‟s ethnic wear.

Ethnic wear was initially a category that was largely restricted to the older age segment.

However, it is now finding acceptance even among younger consumers, especially women. The

young college going girl teams her Indian kurta with either a pair of denims or leggings that

represent a fusion of ethnic wear with western wear. This has led to brands focusing on ethnic

fusion wear product offerings, in western styles and prints, in order to capture the opportunity.

With an interesting interplay of wovens and knits, these brands have completely redefined ethnic

wear for younger consumers. Ladies across all ages prefer the salwar kameez subcategory as it is

associated with the attributes of convenience, comfort as well as contemporary fashion. One of the

key emerging trends contributing to the growth of this segment is the gradual increase in the

number of women in the corporate workforce. Many brands have been able to envision this

opportunity and have made suitable changes in their respective product portfolios. Thus it is not

41

surprising that, within ethnic wear, kurtas and salwar kameez, which represent 38% of women‟s

ethnic wear market, are expected to grow at robust rates in the next decade.

Currently at INR 20,700 crore (USD 3.90 billion), the salwar kameez category is poised to

witness optimistic growth at a CAGR above 10%. 87% 10% 3% Indian Ethnic Wear Market

Women's Kids Men's. Although traditional markets shall continue to be of importance, a

consequence of the above factors is the increasing salience of modern formats among consumers.

Until modern retail opened its doors for urban consumers, local tailors and neighbourhood

boutiques were satisfying the ethnic wear needs of most consumers. Large format retailers were

unheard of. Further, these local tailors barely met standards in terms of quality and designs.

With the coming of modern retail, consumers have easy access to branded products that straddle

the tiered pricing segments. In the value segment where few organized brands have been able to

make a mark for themselves, large format retailers such as Reliance Trends, Max, and Big Bazaar

offer private labels. In the premium segment, there are national players such as BIBA and W, to

name a few, while strongly entrenched local players dominate their respective geographies.

Neeru‟s, in Hyderabad, Frontier Bazaar and Bombay Selections, in Delhi, and Jashn, in Mumbai,

are some examples. Popular LFS formats such as Shoppers Stop, Lifestyle, and Westside are

increasing the width of the private label offering and offer the consumers contemporary styling as

well as convenience of comparing multiple brands under one roof .A very crucial pocket of

growth will be the demand from the small towns, which are the metro cities of the future. A large

number of brands are already eyeing this opportunity. Miraaya, for instance, has a strong presence

in Tier II and Tier III cities both through its EBOs and large formats. BIBA has also opened a

large number of stores in Tier I and Tier II cities like Vadodara, Indore, Patna, Visakhapatnam,

Agra, etc. However, the demand for ethnic wear is large even within these cities and this demand

frequently drives small town consumers to big cities for their shopping requirements. The onset of

the e-commerce revolution is also changing the game. Consumers are able to purchase many, if

not all, popular ethnic wear brands from the comfort of their homes. With many physical brands

setting up online stores and others selling through online portals, customers who do not have

access to physical stores can purchase the brands online. Though there are issues that need to be

ironed out before the online space emerges as one of the preferred shopping destination for ethnic

wear, many ethnic wear brands have started to think of their online presence as a viable sales

channel rather than just a website. As different channels continue to emerge and evolve in the

ethnic wear market, the growth of brands will be largely dependent on their ability to differentiate

themselves across product and service offerings.

42

Ready to Stitch

History

In pre-medieval Europe, clothes were merely functional objects serving the purpose of covering

and protecting the body. Bespoke tailoring developed in a slow but steady manner from the 12th

to the 14th century. When the Renaissance, celebrating humanism, transformed the world of arts

and culture, tailoring also became a way of accentuating the human silhouette.

Clothes, which were earlier made from a single piece of cloth, now began to be „tailored‟,

rendering a „fitted‟ look and highlighting the contours of the human form. From being a practical

necessity, clothing metamorphosed into a form of expression, as the aristocratic attitude to

clothing changed drastically during this revolution. Tailoring skills increasingly became much

sought after and created the market for bespoke clothing, as we know it today. It also marked the

beginning of what is known as „fashion‟. It was in the 18th century that bespoke, or made-to-

order, clothing was popularised by the tailors of Savile Row.

Customised for individual body types, and using the finest fabrics, these tailors spent more than 50

hours of manual labour for a two-piece suit. For clothing to qualify as bespoke, it had to be an

„exact fit‟, made in a size specific to the client‟s measurements. In addition to this, the patterns

were designed from scratch instead of using pre-designed ones. Even the stitching, done by hand,

was specific to the taste of the client.

Segments:

The majority of Indian population has historically been brought up on tailored clothing, as the

garmenting industry was restricted to smallscale manufacturing until the late 1990s. Also, due to

lack of size standardisation in apparel, there were few ready-to-wear (RTW) options for

consumers, who preferred to buy ready-to-stitch (RTS) fabric and then tailor the garment

according to their size. With the entry and expansion of international and domestic apparel brands

in the early nineties, the RTW segment increased in popularity, especially in urban centres, and

ever since, the segment has grown rapidly and outpaced the RTS segment of the apparel market.

The present tailoring industry of India can be segregated into three distinct segments.

Firstly, there is a traditional market of local tailoring for the general masses. The tailor in this

43

market is a skilled person or groups of persons catering to local orders. They have minimal

exposure to fashion trends, technology and product-specifi c knowledge.

However, they manage to satisfy the needs of the local consumer of small towns and rural areas

who wear basic products. Currently, around 80 per cent of the market comprises mass tailors.

Secondly, there are growing numbers of organised apparel brands that are offering tailoring

services in their fabric retail outlets. The tailors are trained to handle delicate and specialised

fabrics and they take extra care to ensure the right fi t and look of the tailored products. This

segment comprises around 15 per cent of the market.

Thirdly, there is a premium tailoring segment comprising fashion designers and bespoke or

luxury segment. Such fashion designers have their own tailoring functions that cater to the

requirements of the fashion-conscious elite sections of society. They ensure that the tailored

clothing suits the personality, social status and occasion of the client. This segment comprises

around 5 percent of the market.

Present scenario of RTS

Over the last decade, we have witnessed a big market share shifting towards the RTW apparel

category. There has been a visible migration from tailored clothing to readymade garments due to

the launch and expansion of several Indian and international apparel brands. Factors like easy

availability, variety of colours, and range available gave consumers enough reasons to shift their

preferences.

Currently, the RTS segment is estimated to be around `39,820 crore (US$ 8 bn) comprising

approximately 20 per cent of the apparel market while RTW fabric constitutes the balance

80 per cent. The share of RTW is expected to increase in years to come. However, the demand for

RTS is still large, and it is growing at an annual rate of 5.5 percent.

44

Source : Technopak Analysis *All numbers are rounded off Top 8 cities : Mumbai, Delhi,

Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune

Majority of RTS growth is coming from tier-I, -II and smaller cities, where consumers have still

not entirely shifted to RTW and continue to buy RTS fabrics. Currently, only 16 per cent of the

market is organised. However, the organised market is growing at a high rate and the share of this

market segment is expected to increase up to 23 per cent in the next five years.

RTS fabric for shirts, trousers and salwaar-kameez-dupatta (SKD) comprise the majority

share of RTS market. Shirting comprises the bigger share of market currently compared to

trousers and SKD. Other categories include coats and kurtapyjama.

GROWTH DRIVERS FOR THE RTS MARKET INCLUDE:

Growth of major RTS consuming population of > 40 years and middle-income households

Growing plus-size population

45

RTS fabric as a well-established gifting option for special occasions like weddings, birthdays,

etc in large parts of India

Growing consumption in rural markets, tier I, II and smaller cities

Increasing women workforce and increasing penetration of SKD and related ethnicwear to

southern parts of India

RTS SALWAAR-KAMEEZ-DUPATTA: MARKET OVERVIEW

A large part of the SKD market comprises tailored garments. The need for tailoring for SKD

segment is greater due to the higher variety of designs and tailoring requirements of consumers.

Even though RTW segment for SKD is increasing, there is still a general lack of options in case of

RTW and hence, consumers prefer to buy RTS or semi-stitched garments.

The overall RTS SKD market is estimated to be around Rs11,840 crore (US$ 2.4 bn) in 2012 and

is growing at 7.9 percent annually. Cotton or cotton blends comprise around 40 per cent of the

SKD market, which is expected to grow at a faster rate as compared to the overall RTS market due

to:

Higher preference for RTS in SKD, due to requirements of better fitting and design variety

Increasing women in workforce Also, cotton or cotton blends SKDs are expected to grow

faster than the overall SKD market due to:

Higher comfort and quality aspects of cotton SKD

Increasing focus of branded players on cotton fabrics

CONCLUSION

The Indian tailoring industry is thriving and growing despite the growth of ready-to-wear and

branded segment of the apparel market. While majority of consumers in major cities have slowly

graduated to branded apparel over the years, there is still a significant population that prefers RTS

fabric due to certain inherent benefits for specific segments like salwaar-kameez or suits and

trousers, etc. Also, RTS segment is still popular in smaller cities and is growing at a steady rate.

46

Till the time that RTW segment becomes strong in terms of standard sizes across all the key

categories of women‟s ethnic wear, suits, and trousers, the tailoring segment will continue to be in

demand and will continue to grow.

Bespoke allows for a differentiation in the products of an otherwise conservative market for men‟s

formals. Consumers have a choice of playing with the lining, lapels and collars, and personalising

them as per their individual tastes and preferences. Over the years, the emergence and

popularisation of new product categories has led to bespoke services being extended to shirts,

jackets, overcoats and even dresses for women.

Value retailers recruiting tailors

AHMEDABAD: For North Indian women customers who prefer flared Patiala salwaar suits, Arun

Sirdeshmukh is a new friend. The chief executive of Reliance Trends recently increased the length

of the garment retailer's ready-to-stitch salwaar suits by one metre in north Indian markets. He has

also lined up a battery of in-house tailors across the country to stitch garments 20% cheaper than

any other tailor in the neighbourhood.

Sirdeshmukh has altered the way Reliance's apparel fashion arm functions this year, soon after he

started studying Indian anthropometry (physique) and cultural needs of the region. "The Indian

customer needs someone who can offer affordable and fashionable clothing," says Sirdeshmukh .

He is not the only one to realise that. A growing line of value retailers such as Reliance, Future

Group's Fashion@Big Bazaar and Max Retail are selling ready-to-stitch clothes and recruiting

tailors to offer the perfect fit and customized style to customers as these marketers try to convert

more people to branded clothes across towns, cities and metros.

That's because Indians still love tailor-made clothes, literally. Tailored clothes account for half the

garment market in big cities and 60% of the market in smaller town and cities, say retailers.

Value retailers, who have greatly expanded the branded apparel market in recent years by offering

readymade garments at cheaper rates and hold a 30% market share in the $6-7 billion organised

apparel retailing, now bet on tailors to speed up growth. It is growing 20% a year.

47

"Value retailing is looking up, as 50% of Indians in the 15-45 age group prefer branded clothing.

The new model entails employing tailors and offering well-fitting garments at lower price," says

Prashant Agarwal, joint MD of Delhi-based Wazir Advisors , a management consulting firm

focused on Consumer Products and Services sectors.

Ready-to-stitch garments account for one-fourth of all units Reliance Trends sell.

In cities, apart from women who visit tailors for their Indian wear, men prefer bottoms and suits to

be stitched for the perfect fit. In smaller towns, lack of affordability (of fashionable garments) and

access to retail outlets confine customers to tailors . Also, affordable ready-to-stitch (RTS)

offerings attract several people who never tried readymade garments to these shops, the first step

to switching over to readymades.

Stand-alone tailors are feeling the heat. And many are changing with times. Rizwan Shariff, a

small-time tailor in Andhra Pradesh's Chintamani town, moved to Bangaluru two years ago and

joined Reliance Trends. "With customers preferring readymade garments and preferring organised

retailers over us, I came to Bangaluru," says Shariff who now heads a team of six tailors at the

Richmond Road outlet of the retailer.

Jitendra Chauhan, an Ahmedabad-based tailor-turned promoter of apparel multi-branded outlet

Jade Blue, says, "With organised retailing offering similar services at far lesser prices,

(standalone) tailors have no chance to survive the onslaught."

The picture is completely different from five years ago, when branded and readymade garments

would stand no competition to the tailor who would stitch a garment for as low as Rs 200.

The gap was bridged with the entry of a slew of value retailers such as Koutons, Cotton County,

Cantabil, Priknit, Westside, Big Bazaar, and Reliance Trends that started selling branded

readymade clothes at low rates.

Today, there are about 5,000 exclusive brand outlets of organized value retailers and the number is

expected to touch 7,000 by 2012 as existing players expand and new ones enter, says Wazir's

Agarwal.

Amit Kumar, head of Fashion@BigBazaar , the apparel and accessory arm of the country's largest

retailer Future Group, says the company is working towards dispelling the myth that fashion is

luxury. For example, Fashion@BigBazaar retails T-shirts and shirts at . 149 and Rs 199,

48

respectively, jeans at . 299, salwaar-kameez-dupatta sets for . 399-. 429 and ready-to-wear ethnic

wear at . 329.

"We bring tailors to one organised platform, enhance their skills through our retail know-how and

encourage their creativity. We even let customers design their own dresses with our in-house

tailors," says Agarwal.

The retailer is keen to take his tally of Big Bazaars, which house Fashion@BigBazaar , from the

current 137 to near 200 over 12-16 months. In addition, there are six standalone Fashion@Big

Bazaar outlets across five cities.

Value retailers are also expanding their product portfolio with popular local outfits to reach out to

more people.

"While we have been retailing everything from fabric, ready-tostitch , infant wear, children's ,

teenager's , women's and men's garments , Indian wear, corporate wear, speciality clothing

including active sportswear and yogawear, we have also been catering to local populace by

offering bandhni sarees (in Gujarat ), mundu (in Kerala) and burqa (in Hyderabad)," says Reliance

Trends' Sirdeshmukh.

Interestingly, the tailor-retailer axis is not limited to value players though. "Even premium men's

wear brands like Raymond, Reid and Taylor and Vimal have brought in tailors to customise

garments for their customers," says Jade Blue's Chauhan. "At my stores, the category is growing at

30% year-on-year ," he says.

Products:

India has a number of Wholesale Salwar Kameez markets dealing in Salwar Kameez,

procuring the need of domestic and International requirement for Salwar Kameez in retail

and Wholesale.

There is huge production of Salwar Kameez in Wholesale in the following categories:

Salwar Kameez Thaans: (A very large piece of fabric) : This is known as the raw

fabric to form Salwar Kameez. This raw fabric comes in wholesale in domestic and

International market for further selling.

49

Salwar Kameez Cut Pieces: Vendors of Salwar Kameez purchase the raw fabric from

manufacturers and make bunch of similar kind of Salwar Kameez and sell in Wholesale

bunch of 6-8 similar type designs of different colors.

Combination Salwar Kameez: There is a huge market of different combinations. In

combinations there is no similarity in colors style or fabric type. In brief, the combination

wholesaling of Salwar Kameez will have the bunch of different fabric, different color

combinations in all Salwar Kameez of one bunch and may have different Salwar Kameez

Neck Style in another bunch.

Salwar Kamee Designers Collection: There is big wholesaling of common designers suits

that will have the set of different Salwar Kameez Neck Style, different cut and curves,

different color combinations etc.

Designers Salwar Suits: There is very high profile market in India and Bollywood has a big

name in it. In designers suit there is uniqueness and different creativity done that is one suit

is of one style and one color. There are no match for that in respect of material, quality and

cost. These types of suits have retailing like wholesale because these are very expensive and

unique.

CUSTOMER PROFILE:

Demographics

- Female

– Age Group: 22 to 60

– Upper middle class

– Education Level: well learned

– Vocation: Working or home makers

- NRI‟s and foreigners

Attitude

Easy, simple and comfortable

Subtle, earthy and sober

50

Evolved and celebrates her feminity

Brand loyal, second generation loyalist

Supporters and love for Indian crafts

Lifestyle

Day to day Activities

Working woman: likes to wear Indian kurtis more to office. This will fulfill her daily clothing

needs of casual and formal wear look.

Home maker: knows how to balance her family and her own world. Takes time out for herself.

Not completely involved in the household but a good manager.

Weekends

Spend time with family – quality time with family and friends, lunch/dinner, party, weekend

trip, movie

Aspirations

Is actively involved in social activities: work for an NGO, kitty parties, society development

works. Strong face of society. Aspires to be independent, not a fashion follower.

Shopping patterns

Goes for window shopping and store browsing on weekdays. Doesn‟t keep the shopping only

for weekends. Shops for 2-3 garments every month. Doesn‟t wait for end of the month or for

salary to shop. As and when required or desired.

51

COMPETITION ANALYSIS

Place Merchandise

Mix

Picture Description Price

Unorganised

market

Kamla

Nagar, Karol

Bagh and

1 kurta cut piece

1 salwar cut

piece

No. Of options: more than 100

Majorly cotton

kurta set with plain

bottom and

Rs 500 for

cotton printed

SKD set.

52

Chandni

Chowk

1 plain duppatta

synthetic duppta.

They did not keep

silk options in

summer. Lucknowi

set were also

available.

Very cheap quality

and poor aesthetic

looks.

Rs 1000-1500

for Chanderi

and embroidery

work.

Organised

brands

Shopper‟s

Stop:

DIY

Haute n

Curry

Semi- stitched

Set

1 kurta (side

seam unstitched)

1 RTW bottom

1 chiffon

duppatta and

Unstitched Set

Cut pieces of

kurta,

bottom,duppatta

Number of options: unstitched

cotton (50), semi-stitched (120)

Kurta with

embroidery and

plain bottom with

chiffon dupppta

with border. It was

not matching the

look of Fabindia

and everything was

machine work. No

craft work was

seen.

Cotton set:1200

Chanderi

set:3500

53

Kilol

Product 1

Cotton kurta

emb yoke

Printed

salwar

Kota dupatta

Price range:

3360

Options: 150

Product 2

Cotton

printed kurta

Plain bottom

Chiffon

printed

dupatta

Price range:

2010

Options: 60

Product 3:

Chanderi or

Kota kurta

Cambric

bottom

Semi-stitched is

available only in

XL size. The

styles available

are same as in

other size set.

They have

vibrant dress

material with

bold prints, a

perfect addition

to your

everyday wear.

Accentuated

with an all over

printed chiffon

dupatta, it is

definitely a

fashion pick for

wardrobe

Fabric for Kurta

and Bottom:bengal

cotton

Price Range:

Cotton set

2610

Chanderi and

kota set 3350

Silk set 8000

Meena Bazar Top - Georgette

Bottom -

Georgette

Dupatta -

Chiffon

Very heavy,

jazzy and party

wear look with

lot of patch

work and

embroidery.

Doesn‟t target

the Fabindia

customers.

Price range:

1980-35980

54

Jaypore Cotton Silk

Block Printed

Kurta Fabric

with Dupatta -

Set of 2

Silk-Cotton

Maheshwari

Bagru Printed

Kurta Fabric

with Dupatta -

Set of 2

Tussar Silk-

Tissue Kurta

Fabric &

Dupatta Set

Set of 2

Striped Tussar

Silk-Muga Silk

Kurta Fabric &

Dupatta Set

No of options: 54

Products with

unique, high

quality

craftsmanship,

unmistakably local

designs which are

very much in line

with Fabindia

products.

Price Range:

1990

5500

55

Data analysis:

Feasibility Study:

There is mostly a positive response from the customers with only 8% of the surveyed customers

said they would mostly not buy unstitched dress material from Fabindia. A lot of them where not

sure or might buy if they like the offer. 36% of the customers would absolutely buy the product

offered.

Target Customers:

To identify the target customers for unstitched dress material the sample was analysed by

bifurcating it into two categories of age and occupation. All the sample size consisted only of

women. On analysing it was found that the majority of people interested in buying the unstitched

dress material were starting from late 30‟s and were mostly housewives followed by the working

class. The students and young customers did not prefer to buy the same.

Given below are some cross tabulations and bar graphs which would assist in understanding these

facts.

Chart 1.WILLINGNESS TO BUY UNSTITCHED PRODUCTS FROM FABINDIA

56

On analysing the bar charts it can be seen that the most positive response is from the age group of

40 and above. Though the number of respondents of 30-40 is the most but it is evenly distributed

throughout the scale. The unsure crowd was 20-30 about their purchase of dress material.

The bar graph below clearly shows that the highest demand of unstitched dress material is from

housewives and backed by working ladies. The students are the most unsure lot regarding the

demand of unstitched dress material.

57

Demand Estimation:

The demand can be estimated in the following manner:

Out of a sample size of 100 customers, 36 customers say they would definitely buy the products,

26 say they would probably buy the products and 30 people say that maybe they would buy the

products whereas there were 4 people who said that they would probably not buy and 4 definitely

not buy unstitched or semi stitched dress material. The demand can be now estimated as:

People saying "Definitely Yes" - 36 people [100% of 36 = 36 customers]

People saying "Probably Yes" - 33.75 people [75% of 26 = 19.5 customers]

People saying "Maybe" - 4 people [50% of 30 = 15 customers]

On adding the above figures it can be said that 70 customers out of a sample size of 100 customers

would be willing to shop unstitched or semi stitched dress material.

58

BUYING BEHAVIOUR OF THE TARGET CUSTOMERS

In order to understand the buying behaviour of our customers, I asked customers questions about

why do they prefer or do not prefer to buy unstitched or semi-stitched dress material, what is the

price point at which they buy, which places do they go to shop for the same.

From the following analysis we see that the major reason for people not preferring to buy

unstitched is it is time consuming to get it stitched as compared to buying ready-made garments.

59

When we compare the analysis with respect to age of the customers, the major reason for the young

crowd is it is time consuming, where as for the more mature crowd is that there are no good tailors

and it comes out to be expensive.

The reason that came out prominently as the reason for consumers choosing unstitched dress

material was because of better fit. These are the people who have problem in finding the right size

ready made garment for themself. The second biggest reason is consumers feel they can customise

their garment if they buy unstitched dress material with the silouttee, neck etc.

60

The analysis shows that the most common place for consumers to buy unstitched dress material is

from the local market such as Kamla Nagar, Karol Bagh etc. It is followed by designer boutiques

and exclusive stores where they go to buy occasion wears.

The price point at which customers buy 3 piece set from different platforms are exhibited below.

As we see the least expensive option for customers was local market and the most expensive is

boutiques which is more than 3000.

61

The price point at which customers buy 2 pieces is maximum at 1000-2000 from local market.

They do not buy two pieces from boutiques.

BUSINESS DEVELOPMENT

Product

The frequency of craft based product from Fabindia is 44 and is more than rest of the two.

Customers prefer to buy unstitched dress material in the craft based look.

62

When we cross tabulate the look preferred by them with their age we see that craft based look is

preferred by customers of all age group. Though, occasion wear is not desired by age group of 40

and above but the preference for casual daily look is high in them.

The next product related question was what product mix do they want in unstitched or semi

stitched dress material and it came out that the most desired option was that of only kurta. And 50

and above prefer only salwar kurta dupatta and no other option.

63

Interpretations:

Positive Responses:

1. The customers who were short in height said that they faced problem with the ready

made garments due to the length of the kurta and preferred to buy unstitched dress

material so that they can get it stitched accordingly.

2. The customers who wear Small size faced problem with the fit of the garment. They

gave a feedback saying there was excess fabric at the shoulders and did not sit well.

And another problem was the kurta is very broad at the bottom. Hence, they did not

mind buying dress material only for kurta from Fabindia.

3. The group of people with age group of 40+ were positive about buying kurta salwaar

dupatta in unstitched or semi-stitched form from Fabindia as compared to the people

of other age group.

4. There was a lot of people who loved Fabindia products so much that they were ready

to buy anything offered by Fabindia. They were the most loyal customers of the

company and had complete love with the fabric used by Fabindia.

Negative Responses

1. A lot of people thought that Buying unstitched or semi stitched dress material is very time

consuming as they have to find a good tailor and then go and collect the garment from him

again. So they preferred to buy ready-made garments.

2. Some of them felt that unstitched suit pieces turned out to be more expensive than stitched

ones because of the high rates charged by the tailors especially the organised or boutique

ones. So it was better to buy ready-made kurta and get it altered.

3. About 20% of the customers said that they buy Fabindia garments because of the designs

and contemporary cut and silhouettes of the garments, which cannot be obtained by any

tailor or a layman. So there was no point buying them.

4. A majority of customers also said that they buy unstitched dress material only for occasion

wear or party wear especially weddings. So Fabindia is not the place for unstitched

material as they do not have party wear category of clothes.

64

Gap Analysis:

By combining both the competitor analysis and customer analysis, the gaps in the present range

have been identified with respect to the competitors and weightage to the customer preferences

has been given along with highlighting the opportunity areas for the brand in order to plan a range

for the coming seasons and for the success of the categor.

1. Product Offerings:-

Starting with the product offerings, which is the actual product on the floor for sale. A

variety of offerings needs to be given to the customers for them to choose product as per

their requirement.

Gaps

If we analyze, it is clear that the second most demanded mix by customers is of

Kurta dupatta and there is only one competitor, Jaypore, which is only on online

platform, offers the same. Therefore, Fabindia should have options in this mix.

Another option which has maxmium demand is dress material of only kurta.

Because the customers these days prefer to mix and match and make their own

look. So they prefer to buy only kurta and wear it with already purchased bottom

and duppatta.

Unstitched Kilol Jaypore Meena bazar SS

SKD Yes No Yes Yes

Salwaar kurta No No No Yes

Kurta dupatta No Yes No No

Only Kurta No No No No

Semi-stitched

SKD Yes No Yes No

Salwaar kurta No No No No

Kurta dupatta No No No Yes

Only Kurta No No No No

65

2. Price Point

Gap:

First thing to notice is that there are hardly customers who buy SKD in unstitched or semi-

stitched form from a branded store. It is mostly purchased from exhibitions, boutiques or

local market. Therefore it is the apt time for Fabindia to enter the market now and create

the buzz, so that they get the first mover‟s advantage.

Secondly we see that customers are ready to spend Rs 1000 more on branded stores as

compared to the local market. And they spend the most when they buy from boutiques,

because they purchase party/occasion wear from there.

Unstitched Kilol Jaypore Meena bazaar SS

SKD 3000-5000 No 2000-25000 1200-3500

Salwaar kurta No No No Yes

Kurta dupatta No 1990-6000 No No

Only Kurta No No No No

Semi-stitched

SKD 3000-8000 No No No

Salwaar kurta No No No No

Kurta dupatta No No No 1500-3500

Only Kurta No No No No

66

When we compare the customer demand with the competitive chart we see that Kilol and

Shopper Stop are playing safe according to the customers. Jaypore is slightly on a upper

hand and Meena Bazar has a mix of all the price point making it assortment mix and

option plan higher in quantity and value as compared to others.

Hence, Fabindia should price it merchandise between Kilol and Jaypore. It should price its

3 psc at price of Rs 3000 and above and 2ps at Rs 2000 and above.

3. Look

Gaps:

The stark difference between the customer demand and what is offered to the customers

can be seen through this analysis. Customers want to buy craft-based products of Fabindia

Look Kilol Jaypore Meena

bazar

SS

Craft based

(khadi/hand

emb/traditional

prints)

Yes

Occasion wear

(silk/chanderi/surface

emb)

Yes Yes

Casual/daily wear

(machine/bright

colours/cotton

printed)

Yes Yes Yes

67

eg. Various craft based print techniques of different craft clusters of India. But this is only

offered by Jaypore currently. Hence this can be a very big market to target for Fabindia.

The least demanded look from the customers is of occasion wear. But the occasion wear

offered by Meena Bazar and SS is completely different from what Fabindia intends to sell.

There occasion wear look is very jazzy and heavy with lot of surface embellishment and

synthetic fabric being used which gives it a party/wedding wear look. But Fabindia‟s

occasion wear will be more to play with the natural fabric especially silk and chanderi or

their festive collection which is simple yet elegant.

The third is Casual/daily wear which has equal amount of demand and supply. Hence even

Fabindia should have decent number of options in this category, especially for summers.

68

Mock Range Plan:

This is the mock range plan for one promotion, which includes two months, but roughly the same

option plan can be used for all the promotions.

Price wise:

Lookwise:

Assumptions:

1. This is going to be an add-on business over and above the existing sub-categories.

2. The total budget for this category will be 10% of the WI budget.

3. It will be bought for SS collection only for the first hit.

4. It will be going only to the A+ and A stores, i.e. 50.

5. The number of options will be 50 after the competitive study of similar brands doing the

same product.

6. Each option will have 4 pieces. ( because each style has 8 pieces in a size set, so taking

half of it)

7. The price point is divided according to the price break up of the kurtas in WI

1500-2000: 24%

2000-2500: 28%

2500-3000: 27%

3000-3500: 14%

69

3500-4000: 7%

8. The ratio of SKD, Kurta Dupatta and kurta is divided according to the customer feedback,

hence dropping the option of salwaar kurta.

9. Space allocation for this sub-category would be a visible space in the showrooms, with

8*4 wall fixture in a space of 400 sq feet. So that each shelf has approx 6 pieces.

10. Mock Range: -

This mock range shows how a range should look like to grab attention of the customers and is

distributed as per the ratio observed by the customer analysis.

1. Craft Based

70

2. Occasion Wear

Casual wear:

71

Learning outcome

1. Being an active part in the whole buying process of SS‟16

The buying process of WI is the following

1. Brand brief given by the creative head

2. Reviewing of design reference swatches received by the vendor

3. Filing of yardages in the Fabric file for future reference

4. Garment sampling:

1. Job work

Yardage sourced by PSC and given to vendor for garment development

2. Direct Purchase

Sampling being done directly by the vendor

5. All samples received must be entered in Main tracker

6. Selected samples to be kept with PSC.

7. In parallel Ramanto work on BUY PLAN.

8. B2B Shoots to be done.

9. After modified samples are received complete range should be re reviewed along with

the selected samples and Range finalization to be done as per BUY PLAN.

10. Complete range with the correct Modified samples / Tracker/ B2Bimages to production

team.

11. Stamping to be done on the samples.

12. Notify vendors on range finalized and cost negotiation to start.

13. Range to be presented to MRH and feedback tweaked

TNA calendar

20th Jan – day 0

Summer 16 Sampling brief from PSC

20th Feb – day 30

Swatches developed & sent

to PSC

20th Mar – day 60

•Get back fabric yardages for samples

20th Apr – day 90

•Making samples, closing costs

14th May – day 115

•Closure of range for Summer 16

72

2. Store Allocations for three promotions from July-Dec‟15

3. Maintaining the Sampling Tracker for SS‟16

4. Making of PO‟s as and when the quantity was froze by the Category head.

5. Making of fabric indent sheet and filing the same

6. Tracking of proto, size set, PP and range room samples.

7. Making of Catalogue for WI for 2014-2015

8. Making of fabric story for 2014-2015

73

Suggestions:

Merchandising related:

1. Merchandising is at a rudimentary stage

2. Shopper‟s navigation can be improved

3. Stock issues

4. Unnecessary fixed cost expenses on PH‟s

Product related:

5. They should start core line or perennial collection for Kurtas as well

6. They should do more of surface embellishments as customers perceive it to be very print

centric

7. They should play with the trims more, especially tassels and buttons

8. They should improve the fitting of kurtis for women who wear S size

74

Reference

http://www.indiaretailing.com/Fashion/7/1/83/12183/Indian-Tailoring-Industry-Going-Bespoke

http://www.salwarkameezsale.com/wholesale-salwar-kameez.php

http://articles.economictimes.indiatimes.com/2010-12-06/news/27603851_1_tailors-readymade-

value-retailers

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Questionnaire

1. Do you prefer to buy Salwar Kurta Dupatta in unstitched or semi-stitched form?

o Yes

o No

o Maybe

2. What are the reasons for which you do not prefer to buy Salwar Kurta Dupatta in

unstitched or semi-stitched form?

o Time consuming

o Unavailability of good tailors

o Availability of fitted RTW

o Expensive

3. What are the reasons for which you prefer to buy Salwar Kurta Dupatta in unstitched

or semi-stitched form?

o Better fit

o Low cost

o DIY options/customised designs

o Gifting

o Any other,

4. Which are the places you go to shop for Salwar Kurta Dupatta in unstitched or semi-

stitched form?

o Organised market, specify

o Unorganised market, specify

5. What are the price points at which you buy Salwar Kurta Dupatta in unstitched or

semi-stitched form?

2pc 3pc 4pc

500-1000

1000-2000

2000-3000

3000 and above

76

6. Do you think there is a need for Fabindia to start this new category of

unstitched/semi-stitched Salwar Kurta Dupatta?

o Yes

o No

7. If yes, for which occasion would you like Fabindia to offer unstitched/semi-stitched

Salwar Kurta Dupatta?

o Casual/ daily wear

o Party wear

o Outer wear

8. If Fabindia offers you unstitched/semi-stitched Salwar Kurta Dupatta at the

parameters specified by you, will you buy the product?

o Definitely yes

o Probably yes

o May be

o Probably no

o Definitely no

Name: _________ Age: _________

Gender:_______ Marital status: __________

Occupation: __________ Qualification: ________

Income:___________