RETAIL IN

APPARELINDUSTRY

MMA 2ND Semester :

By:By:Ghousia Islam Ghousia Islam Madhuri Jain Dugar Madhuri Jain Dugar Neha AgrawalNeha AgrawalPiyushi SanghaiPiyushi SanghaiRiya JainRiya Jain

By:By:Ghousia Islam Ghousia Islam Madhuri Jain Dugar Madhuri Jain Dugar Neha AgrawalNeha AgrawalPiyushi SanghaiPiyushi SanghaiRiya JainRiya Jain

What is Retailing ? What is Retailing ? Retailing is a set of business activities that adds value to the products & services sold to the consumers for their personnel or family use.

India Stats in 2011 :Indian retail business valued at around US$ 550 billion in 2011 A report by Boston Consulting Group (BCG) has revealed that the country's organised retail is estimated at US$ 28 billion with around 7 per cent penetration. It is projected to become a US$ 260 billion business over the next decade with around 21 per cent penetration.

Apparel Retailing Apparel Retailing ::

In India, clothing retail accounts for 36% of organized retail business.

With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before.

Although the apparel industry seems to be in the maturity stage and growth is slow, fashion trend cycles are accelerating

The Indian apparel retail industry representing a compound annual growth rate (CAGR) of 9.9%.

Ranked as the top retail destination globally & among 30 emerging markets in the world.

It is the second largest untapped market after China.

Indian Indian apparel retail apparel retail industry industry

SWOT Analysis : Apparel IndustrySWOT Analysis : Apparel Industry

Strength :Growing domestic market, increase in number of mallsDemocracy provides a stable economic and social environment, putting international players at easeEasy credit facility and plastic card revolution is increasing the purchasing power, particularly of the younger generations.

Weakness :Predominance of unorganized sectorTechnological obsolescence in the supply chainTaxation hindrances: VAT and multiple tax levies. Inconsistent octroi and entry tax structure. Presence of large grey market

Threats :Increased competition in the domestic marketCheaper importChanging Government’s policy on FDIPrice of land and lease rentals are high while margins are low

Opportunities :Increasing demand for brands from the middle class Research and new product development can help the companies to move across the value chainRetail sector in rural India is almost untouched, presenting tremendous opportunity

Traditional Retail Cycle:

Modern Retail Cycle:

APPAREL RETAIL PYRAMID

New Market, Bada Bazaar etc

FORMAT DESCRIPTION EXAMPLE

DEPARTMENTSTORES(MBO)

Average size varies between 10,000 sq. ft. and 60,000 sq. ft.Offer a large layout with a wide merchandise mix.

Shoppers stopLifestylePantaloonsWestside

SPECIALTYSTORE

Single-category storesFocus on individuals and group clusters of the same class, with high product loyalty

ProvogueSpykarLevi’s

DISCOUNTSTORES

Average size — 10,000 sq ft• Offer wide range of products, mostly branded, at discounted prices

Big Bazaar

FACTORYOUTLETS

Average size — 600 sq ftRelatively small retail store offering slightly defective branded product at a discount

Spykar Factory OutletProvogue Factory Outlet

SUPERMARKET Average size — 75,000 sq ftOffer several thousand stock-keeping units (SKUs) and generally have bulk buying requirements.

MetroBharti-WalMart

ORGANISED REtail APPAREL FORMAT IN INDIA

Apparel’s are essentially segmented into Men's wear, Women wear Apparel’s are essentially segmented into Men's wear, Women wear & Kids& Kids

MENS•Consist of trousers, shirts, jeans, t-shirts, coats etc •The Indian menswear market has average revenue of $11.8 billion representing a compound annual growth rate (CAGR) of 8.6%

WOMENS

•Consist of dresses, sarees, tops, jeans, trousers etc•India's women’s wear market generates average revenues of $10.2 billion representing a compound annual growth rate (CAGR) of 11.6 percent .

KIDS

Consists 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 booming.

Sneak Peek at the major Retailing Giants – History, Target

Markets & Business Strategy :

Multi Brand Outlets:

Name Shoppers Stop Pantaloon Lifestyle West Side GlobusNO. OF STORES

34 45 25 49 27

AVG FLRSIZE(sq ft)

Around 40,000 Around28000

Around50000

15000 - 30000

15000

ABOUTTHECOMPANY

By K.Raheja GroupOffers wide variety of national and international brands.

It is a flagship enterprise of ‘The Future Group’Became public limited in 1991

A part of Landmark group (Dubai)

part of Tata Group, Trent Ltd

ISO certified with ERP enable supply chain

BUSINESSSTRATEGY

Offers concessionaire space to brand,Primarily catering to lifestyle retailing segment

Drives 75% of its sales from private labels like JM Sports, Bare Denim etc

One stop shop for 350 national &international Brands

Has created niche for its brand of merchandise creating a loyal following

Has an in-house team of designers but actual production is outsourced.

Exclusive Brand Outlet:Casuals:

NAME SPYKAR PROVOGUE LITTLE KANGAROOS

KOUTONS KILLER

NUMBER OF EXCLUSIVESTORES

Above200

127 10 850 6

AVAILABLE IN NUMBEROF MBOS

Above700

223 Above600

NA 800

ABOUTTHECOMPANY

Incorporated in 1992Into fashion apparels & accessoriesFocused on youth

Incorporated in 1997Launched brand ‘PROVOGUE’ in 1998Focused on urban consumers

Incorporated in 1976An International brandFocused on kids wear

Incorporated in 1991Company has no middle agenciesFocused on upper & upper middle class society

Incorporated in 1989An International brand since 1994Focused on 16 –30 years of segment

Sports Wear:NAME NIKE ADIDAS REEBOK PUMA FILA

NUMBER OF EXCLUSIVESTORES

Above1000

Above600

Above 400 51 15

AVAILABLE IN NUMBEROF MBOS

Above600

Above500

Above 500 NA Around 800

ABOUTTHECOMPANY

Incorporated in 2004.Entered into India through 7 year license agreement with Sierra Industrial Enterprise

Incorporated in 1989 in IndiaFocused on sportswear apparel

Incorporated in 1995 in IndiaIt is subsidiary of German sportswearcompanyAdidas

Incorporated in 2005 in IndiaGerman sportswear companyEach outlets have retailing space of 1200 sq ft

Incorporated in India in 2009An Italian sports lifestyle companyIt plans to setup 60 – 70 stores by 2014

Formal Wear :NAME PARK

AVENUEJOHN

PLAYERSMARKS & SPENCER

LOUIS PHILIPPE

PETER ENGLAND

NUMBER OF

EXCLUSIVESTORES

22 220 21 Above 57 400

AVAILABLE IN NUMBER

OF MBOS

Above550

Above 1300 NA NA Above 1600

ABOUTTHE

COMPANY

subsidiary of Raymond Ltd Raymond has its own MBOs

offering its private label.Focused on corporate

wear

Launched by ITC Ltd

In 2005, John Players was

declared 'The Most

Admired Shirt

Brand of the Year'

brand of Marks & Spencer Reliance

India Pvt Ltd is a

Joint Venture

An International

brand

owned by Madura Garments the retail arm of

Aditya Birla Group’s garment division

owned by Madura Garments the retail arm of

Aditya Birla Group’s garment division

Plans expansion in next 3 years

Case Study :

Pantaloons•Large Indian retailer, part of the Future Group, operates multiple retail formats in both the value and lifestyle segment.• Headquartered in Mumbai • Over 1,000 stores across 71 cities, employs over 30,000 people. • As of 2010, it was the country's largest listed retailer by market capitalization and revenue.•The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town, eZone and Central. 

Pantaloons is among India's largest chains of fashion stores. Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers

STORE DISPLAYSTORE DISPLAY

Hanging display

Shelf Display Basket Display

Gondolas

PRODUCT PORTFOLIO

•Ajile•Bare Leisure•Bare Denim•Lombard•Umm•Urbana•JM Sports •John Miller•RIG•Urban Yoga•Indigo Nation •Lee Cooper•Scullers

Men

’s W

ear •Annabelle•Honey•Rangmanch•Ajile•Trisha•Akriti •Bare Denim•ALL•RIG•Scullers•Umm

Wom

en’s

Wea

r • Chalk• Sach• Pink & Blue• Bare 7214• Umm• RIG• Lee Cooper• Bare Kids• Liliput

Kid’

s W

ear

SALES PROMOTION

PROMOTIONAL STRATEGY:PROMOTIONAL STRATEGY:GIFT VOUCHERS GIFT VOUCHERS

GREEN CARDS GREEN CARDS

20

SHOPPERS STOP :Shoppers Stop is one of the first retail chains started in India in

1991 by the Raheja Group. It now boasts of 27 retail outlets across the country and is now one of India's largest retail

chains. Vision: To be a Global Retailer in India and Maintain No.1

position in the Indian Market

PositioningShoppers’ Stop is positioned as a family store

delivering a complete shopping experience defined by its mission, vision and values.

Range of merchandise…Apparel brands like Provogue, Color Plus, Arrow, Levi’s, Scullers, Zodiac & Shoppers' Stop retails its own line of clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers’ Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill.

Their motto: “We are responsible for the goods we sell”.

Customer ProfileShoppers’ Stop’s has core customers They fall between the age group of 16 years to 35 years, Majority of them being families and young couples with a monthly household income above Rs. 20000 A large number of Non - Resident Indians visit the shop for ethnic clothes in the international environment they are accustomed to.

India – 2000 & Beyond… Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai (Andheri, Bandra, Chembur, Kandivli, Mulund), Pune, Gurgaon and Kolkata, Shoppers’ Stop is today recognised as India’s premier shopping destination. With a customer entry of about 50,000 customers a day, a national presence with over 6,00,000 square feet of retail space and stocking over 250 brands of garments and accessories, Shoppers’ Stop has clearly become a one stop shop for all customers.

The IT Backbone 

Realizing the role of IT way back in 1991, Shoppers’ Stop

was among the first few retailers to use scanners

and barcodes and completely computerised its operations.

Today it is one of the few stores in India to have retail ERP in place, which is now

being integrated with Oracle Financials and the Arthur Planning System, the best

retail planning system in the world. Future Plans

Shoppers’ Stop aims to position itself as a global retailer. The company intends to bring the world’s best retail technology, retail practices and sales to India.

Currently, they are adding 4 to 5 new stores every year

What more Can be done in This Industry ??

Conclusion :

BIBLIOGRAPHY:

Indian Institute of Management Ahmedabad Research Paper – Preeta H Vyas.

Google Indian Textile & Apparel

Industry Research Paper By Arvind Sanghal - Technopark

Case Study Reference – Pantaloons & Shoppers Stop

IBS Research Paper

THANKING YOU!!

To our respected teacher Dipa Ma’am& Friends!!!