Apparel Retail In India Ppt

Retail in India Life Style and Apparel Retail

Presented by: Anuranjan

08/25/09

YMT's College Of Management

1

World Retail Scene  global retail sales to cross US$13 trillion!

08/25/09

YMT's College Of Management

2

Share of organized retail in selected countries

08/25/09

YMT's College Of Management

3

Spread of Modern Retailing in developing countries Late comers in Modern Retail Diffusion  Restriction on FDI  Demand side features  Income  Middle Class  Urbanization 08/25/09 Share of women inYMT's work force College Of Management

4

Future Trends  Retail Business will slowdown in developed countries

 Population in age group 50-70 will explode  Modest population growth in 20-35 age group  Decline in 35-50 age group  Plenty of workforce and consumers in developing countries 08/25/09

YMT's College Of Management

5

Indian Retail  The growth of Indian retail is associated with the growth in the Indian economy

08/25/09

YMT's College Of Management

6

Growth in Indian Retail (Total)

08/25/09

YMT's College Of Management

7

Growth in organized retail (in Bn) 2003 2004-05 -04

2005-06 2006-07

CAGR 2004-07

Total organized retail

350

408

479

598

19.5

Share in total retail

3.3

3.6

4.0

4.1

08/25/09

YMT's College Of Management

8

Indian retail: share of categories (%)

08/25/09

YMT's College Of Management

9

Share of organized sector in total retail by category (%)

08/25/09

YMT's College Of Management

10

Organized retail expansion by format

08/25/09

YMT's College Of Management

11

Apparel Retail in India  Market Definition Menswear Womenswear Infants wear 08/25/09

YMT's College Of Management

12

Market Analysis

08/25/09

YMT's College Of Management

13

Market Segmentation

08/25/09

YMT's College Of Management

14

Market Forecast

08/25/09

YMT's College Of Management

15

Apparel retail format

08/25/09

YMT's College Of Management

16

Adidas • Came to India in 1996, Established by Adi Dassler • Adidas today has a total of 96 exclusive stores across the country. • The price range starts from Rs. 120 for a pair of socks to Rs. 12,500 for our iconic product the adidas • Our core audience comprises of young Indians aged 14 to 24 years with 17 year olds at the epic centre. • Positioned as a sports performance brand. We have fashionable products. 08/25/09 YMT's College Of Management 17 •

Adidas • Adidas branding of 3 Stripes in various colors such as Black, Light Scarlet and white. • Feel range uses muted-bright seasonal color trends such as Blaze red, Mélange, Black and Chrome and focuses on sensory appeal in fabrics and washing. • Brand ambassadors like Sachin Tendulkar, Sania Mirza, Zaheer Khan and many others,

08/25/09

YMT's College Of Management

18

Adidas

08/25/09

YMT's College Of Management

19

Adidas • Clarity of thought : The window display focuses on the women wear and accessories specially for the sports. • Creativity : The tagline being used is quite motivating for the women of this era and would assure her that anything is possible for. Also, the color used in the background is blue signifying the cool and sporty look.

08/25/09

YMT's College Of Management

20

Adidas • Effectiveness : The display of upside down women signifies the freedom and independency of women and thus is very much effective which motivates them to walk in the store. • Why did it work : It forces female customers to ponder what all does the store holds for them. 08/25/09

YMT's College Of Management

21

PANTALOONS India’s leading retailer operating in value and Lifestyle segment of the Indian consumer Market  Headquartered at Mumbai  Company operates over 7 million square feet Of retail space,1000 stores across 51 cities in India and employees over 25000 people  A flag ship company of future group 08/25/09

YMT's College Of Management

22

ACHIEVEMENTS  “INTERNATIONAL RETAILER OF THE YEAR 2007” By U.S based National Retail Federation  “EMERGING MARKET RETAILER” of the year 2007 at world retail congress held at Barcelona.  The Reid & Taylor Awards For Retail Excellence 2008  Coca-Cola Golden Spoon Awards 2008  Most admired Retail Company of the year: Pantaloon Retail (India) Ltd 08/25/09

YMT's College Of Management

23

FUTURE GROUP  VISION: “To deliver everything, everywhere, every time to every Indian consumer in the most profitable manner”

 MISSION: “Indianess as a core value”  CORPORATE CREDO: “Rewrite rules, retain value” 08/25/09

YMT's College Of Management

24

COMPETITORS FOR PANTALOONS • As retail is a growing sector there are many market players in the field. To name a few: Shopper stop, Vishal Mega mart, Westside, Wills Lifestyle an ITC brand, etc.

08/25/09

YMT's College Of Management

25

Pantaloons

08/25/09

YMT's College Of Management

26

Pantaloons • Clarity of thought : The window display clearly shows that the sale season is going on for the apparels and accessories offered by the store. • Creativity : The red color is used to indicate sale period which can be discovered from a far distance. Red color is physically and psychologically attached to the customers and portray excitement. 08/25/09

YMT's College Of Management

27

Pantaloons • Effectiveness : A customer interested would surely walk-in to avail the discounts as the display is shouting out for the sale season. • Why did it work : The entire display used the red color tints and shades indicating sales period & also providing an opportunity to avail extra reduction.

08/25/09

YMT's College Of Management

28

SHOPPER’S STOP LIMITED VISION “To be a global retailer in India and maintain its no. 1 position in the Indian market in the department store category.”

08/25/09

YMT's College Of Management

29

SHOPPER’S STOP- PRODUCT LINE • Shopper's Stop Ltd. with its ear-to-theground approach first defines consumer expectations and then meets them. Home stop is a step in this direction. • Shopper's Stop Ltd. operates Mother care stores in India under franchise from Mother care PLC, UK.

08/25/09

YMT's College Of Management

30

Brands

08/25/09

YMT's College Of Management

31

SHOPPER’S STOP • The stores offer a complete range of apparel and lifestyle accessories for the entire family. From apparel brands like Provogue, Color Plus, Arrow, Levi’s, Scullers, Zodiac to cosmetic brands like Lakme, Chambor, Le Teint Ricci etc., to accessories like Cross, Ray-Ban, ferrari,police watches…etc 08/25/09

YMT's College Of Management

32

SHOPPER’S STOP LIMITED  Shopper's Stop First Citizen  Reward Points for every time you shop at Shopper's Stop.  Exclusive benefits & privileges.  Exclusive cash counters at Shopper's Stop so you can spend more time shopping than waiting in a line.  Also the Rs 303 crore-turnover retail group, Shoppers' Stop's experimentation with a festival during its off-season period has paid it dividends.  Extension of operations online and to other cities.

08/25/09

YMT's College Of Management

33

Shopper’s Stop

08/25/09

YMT's College Of Management

34

Shoppers Stop • Clarity of thought : It is very much clear from the display that the store is selling casual party wear apparels for youth. • Creativity : The display gives the party like feel with the use of dark colors and props like party hanging balls. The window glass has a sticker signifying music which tells about enjoyment and excitement. 08/25/09

YMT's College Of Management

35

Shopper’s Stop • Effectiveness : The display is effective as it attracts the youth to walk-in and buy the merchandise for parties or even for casual. • Why did it work : The display is very attractive & would serve the purpose for people who want to look trendy but in a funky way.

08/25/09

YMT's College Of Management

36

• Wills Sport relaxed wear for men and women. • Launched Wills Classic formal wear (2002) and Wills Club life evening wear (2003). • Introduced John Players, in 2002. • In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week

• Will open 50 more exclusive outlets, thus establishing its presence in 40 Indian cities 08/25/09

YMT's College Of Management

37

Achievements & Awards Retailer of the Year Award at Asia Retail Congress 2008. Top 5 Luxury brands in the country in a Global Luxury Survey conducted by TIME Magazine 2004: Rising Star Brand of the Year - John Players 2003: Most Admired Exclusive Brand Retail Chain of the Year - Wills Lifestyle 2002 : Most Admired Women's Wear Brand of the Year Wills Sport 2001 :The Most Admired Exclusive Brand Retail Chain of the Year - Wills Lifestyle. 08/25/09

YMT's College Of Management

38

Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear. fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products for men and women. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country. Wills Lifestyle has been established as a chain of exclusive specialty stores providing the Indian consumer a truly 'International Shopping Experience' 08/25/09

YMT's College Of Management

39

08/25/09

YMT's College Of Management

40

• Clarity of thought : The display is very clear & tells that the main merchandise on display are apparels and accessories for teenagers & women. • Creativity : The entire display gives a very homely touch & is very attractive being for the season.

08/25/09

YMT's College Of Management

41

• Effectiveness : The colors being used are bright colors like blue and red signifying cool, excited, stimulated and powerful environment. • Why did it work : The display gives an aesthetic touch and a homely environment. The display gives a feeling to the customer that they can also avail the same comfort and calmness by acquiring these merchandises. 08/25/09

YMT's College Of Management

42

• The company, founded in 1853 by a Bavarian migrant, • Levi Strauss markets apparel in more than 60 countries, 53 production facilities and 32 customer service centers in 49 countries. • Levi Strauss, is planning to open 1050 stores across India in the next three years. • The company plans to have exclusive Levi's stores in 100 towns and Docker's stores in 500. It will also have exclusive signature stores in 1000 towns. 08/25/09

YMT's College Of Management

43

• Levi Strauss has 30% share of the premium segment of the denim market and 10% of the overall market across price segments in the country. • planning to launch a sub-category of denim by winter to add to its stable comprising of sub-brands like Sykes, 501, Red Tab and Red Loop. • Redwire Jeans are priced at Rs 9,000 and are available for both men and women. 08/25/09

YMT's College Of Management

44

• Competitors Lee, Blackberry, Pepe Jeans, Wrangler, Provogue, Pantaloons, Diesel, Woodland, Reebok, Strategy • "We aim to open a store each day in the next three years." 08/25/09

YMT's College Of Management

45

08/25/09

YMT's College Of Management

46

• Clarity of Thought: The product being offered here is apparels as well as shoes for men and women. • Creativity: One of the mannequins has been placed upside down that too only the lower part of body to give it a very funky look, which would appeal to the younger generation. While the other mannequins are placed in a way to give a social look with a flex being used in the background. 08/25/09

YMT's College Of Management

47

• Effectiveness : The display is done to give a very relaxed feeling which would indicate that the clothes are very comfortable and can be wore anytime throughout the day. • Why did it work : The display is successful in increasing walk-ins as well as conversions as it is visible from outside the store and appeals to the younger generation and gives a very chilled out attitude for them. 08/25/09

YMT's College Of Management

48

1. Pantaloon Retail (India) Limited –The Future Group

08/25/09

YMT's College Of Management

49

1. Pantaloon Retail (India) Limited –The Future Group –Business Strategy • Targeting greater market share by entering into formats such as departmental stores, supermarket, hypermarkets, malls etc. • Developed a Dual Strategy • –Of opening smaller versions in its flagship stores like ‘BIG BAZAAR’ • –Opening larger Independent Stores.

08/25/09

YMT's College Of Management

50

1. Pantaloon Retail (India) Limited –The Future Group • Currently adopted retail format by the group: –Lifestyle Segment• »Pantaloon • »Central –Value Segment • »Big Bazaar • »Food Bazaar

08/25/09

YMT's College Of Management

51

1. Pantaloon Retail (India) Limited –The Future Group • –Private Labels •Pantaloon’s apparel retail business derives its 75 per cent of sales from its private label such as: • John Miller shirts JM Sports • Lombard Pantaloon • Bare Leisure Bare Denim • Annabelle Mix Match • Akkriti 08/25/09

YMT's College Of Management

52

1. Pantaloon Retail (India) Limited –The Future Group –Major Strategic Alliances • PRIL has entered into 50:50 JV with Ginni & Jonny–known brand for kids • Sole Franchisee of Mark& Spencer, Guess and Women’s Secret in India • PRIL holds a 51 per cent stake in JV with Liberty Shoes called ‘Foot Mart’ • runs stores under the name of ‘Shoe Factory’ • located in shopping malls and also opened as independent stores • Pantaloon Retail 08/25/09

YMT's College Of Management

53

2. Shopper’s Stop

08/25/09

YMT's College Of Management

54

2. Shopper’s Stop –Business strategy • –Primarily catering to the Lifestyle Retailing segment through Departmental Stores -Offers a gamut of products –apparels, accessories, footwear, cosmetics, music, books, leather products, furnishing etc. • Ventured to the Value Retailing segment with inception of ‘HYPERCITY’ • Apart from these stores, the company also has presence in Niche Retailing format. 08/25/09

YMT's College Of Management

55

2. Shopper’s Stop -With the brands such as: • Crossword–a lifestyle bookstore; these are run in 3 formats –‘Corner Store’, ‘Brand Stores’ and ‘Flagship Stores’. • MAC –it’s a tie-up with a cosmetic major, Estee Lauder. • Home Stop –it’s a specialty store, caters exclusively to home furnishings and furniture. • Mother Care -it’s a franchise agreement with a UK-based Mother care marketing baby clothes, toys, baby care products and maternity clothes. 08/25/09

YMT's College Of Management

56

2. Shopper’s Stop Future Expansion Plans • The company plans to form a JV with AGROS of UK to start Catalogue Retailing Business in India • Plans to diversify into airport retailing, for which also signed an MOU with the Nuance Group of Switzerland

08/25/09

YMT's College Of Management

57

3. Globus Stores Pvt ltd –Business Strategy • The company started as a departmental store, but gradually shifted its focus to the apparels and private labels. • »has an in-house team of designers and merchandisers responsible for quality • »Actual production activity is outsourced • The company is mainly targeting smaller cities like Vadodara, Muradabad, Jamshedpur Ranchi, Udaipur Bhopal, Ludhiana 08/25/09

YMT's College Of Management

58

3. Globus Stores Pvt ltd • The group is planning to set up 100 stores by 2008 across the country –Up-coming stores are to set up in Varanasi, Hyderabad and Noida –Financial information of Globus Stores Pvt Ltd is not available as the company is a privately held company.

08/25/09

YMT's College Of Management

59

4. Provogue (India) Pvt Ltd

08/25/09

YMT's College Of Management

60

4. Provogue (India) Pvt Ltd –Business Strategy •Retail Formats followed by the company:– ‘Provogue Mega Studios’–stores a wide range of merchandise –The company operates through its stores –‘Provogue Studio’ »These are stores that are managed directly by the company or through contracts »Located mainly in malls –Have allocated space in other departmental stores on a shop-inshop basis 08/25/09

YMT's College Of Management

61

5. The Raymond Group

08/25/09

YMT's College Of Management

62

5. The Raymond Group The Raymond Retail Shops are premium retail stores offering complete range of men’s wardrobe. • –the largest one stop retail network in the country. • –There are over 350 stores exclusive 'The Raymond Shop' (TRS) in prime locations, in 150 cities in India. • –27 overseas outlets in 15 cities across the Middle East, Sri Lanka, Bangladesh and Nepal. • –Includes top-of-the-line brands -Raymond, Manzoni, Park Avenue, ColourPlus and Parx. 08/25/09

YMT's College Of Management

63

5. The Raymond Group

• Reach of the brand is spread all over the country across big cities and smaller towns thereby targeting a wide spectrum of consumers. • –Also extended its presence in some of the leading Malls with new retail format.

08/25/09

YMT's College Of Management

64

5. The Raymond Group Brand Stores • –exclusive stand-alone stores for brands -Manzoni, Park Avenue, Parx, ColorPlus, Be: and Zapp! • –Each store makes available to customers the entire product range of garments and accessories. • –The highlight of these stores is that they provide customers a unique and leisurely shopping experience • –Encompassing a look to suit every new occasion –formal, casual, outdoor and travel etc. 08/25/09

YMT's College Of Management

65

6. Wills Lifestyle -ITC's Lifestyle Retailing Business Division

08/25/09

YMT's College Of Management

66

6. Wills Lifestyle -ITC's Lifestyle Retailing Business Division Strategy: • With its brands, ITC aspires to build a dominant presence in the apparel market through a robust portfolio of offerings. • Wills Lifestyle has been established as a chain of exclusive specialty stores providing the consumer a truly 'International Shopping Experience' through world-class ambience, customer facilitation and clearly differentiated product presentation.

08/25/09

YMT's College Of Management

67

6. Wills Lifestyle -ITC's Lifestyle Retailing Business Division • To enhance product availability through expansion of “Wills Lifestyle” chain of exclusive stores in high potential catchment malls. The brand is now available in over 150 locations through ‘exclusive brand outlets’ (EBOs) and ‘shopin-shops’.

08/25/09

YMT's College Of Management

68

7. Murjani Group

08/25/09

YMT's College Of Management

69

7. Murjani Group Strategy: • The India strategy for Murjani, revolves around the creation of a unique Multi-Brand Retail Platform, with world renowned, premier international brands. • In the second phase of its India strategy, in 2005, Murjani identified several major international brands, to add to its brand portfolio and secured exclusive, long term rights to India, for 6 world renowned, premier brands: Gucci, Jimmy Choo, Calvin Klein, French Connection, Tumi & Build A Bear.

08/25/09

YMT's College Of Management

70

 Divided into two segments - Value retailing, which is typically  Low margin-high volume business and  High margin-low volume business

08/25/09

YMT's College Of Management

71

08/25/09

YMT's College Of Management

72

•

•

•

•

one of the most important sectors of the economy in terms of investment, revenue, trade and employment generation short product life cycles, tremendous product variety, volatile and unpredictable demand, long and inflexible supply processes. Finished clothing products made from both natural and manmade fibers like cotton, silk, wool, lenin, polyester, rayon etc.

Category

Sales $ Billion

Market Share (%)

Brick and Mortar

169.256

92.9

Catalog

7.177

3.9

Online/ Internet

5.873

3.2

sold through three major channels

08/25/09

YMT's College Of Management

73

Major Manufacturers and their Market Share

08/25/09

YMT's College Of Management

74

Global Trade Volume and Trends

•

The global apparel industry’s total revenue in 2006 was US $ 1, 252.8 billion, which was approximately 68% of the overall industry value.

08/25/09

Region

% Share

Asia Pacific

35.40%

Europe

29.40%

USA

22.30%

Rest of the world

12.90%

YMT's College Of Management

75

Country China • China had captured 65% of the Hong Kong global market share towards Italy the end of 2006 in total apparel Malaysia exports Germany Pakistan Thailand USA India

08/25/09

YMT's College Of Management

US $ Billion 8,260.921 1,723.210 1,353.586 1,255.069 669.130 618.830 597.758 595.171 522.463

76

Challenges  The Apparel retail Industry is growing at a very high rate but still there are some barriers, which are hindering the growth of this industry. Some of them are:  The production rate is still not able to match with ever rising demand.  Do not have enough resources and manpower to explore them.  Competition has increased.  As apparel industry is fashion driven, and fashion keeps changing. Thus they usually have to work under pressure.  Availability of products within the time. i.e SCM in apparel sector 08/25/09

YMT's College Of Management

77

Internal

External

• Retaining qualified manpower

• High real estate cost

• Implementing SOP’s & best practices

• Anarchic laws

• Focus on improving operational efficiency

• Shortage of qualified manpower • Unorganized & poor supply chain

• Cost control • CRM & Service levels

08/25/09

YMT's College Of Management

78

Opportunities • Before liberalization –Many brands were not available –Government disallowed imports of most products –Luxury items banned/had high import tariffs • Post liberalization –Enhanced availability of branded and superior products at affordable prices • Two incidental factors –Spread of cable and satellite television influencing consumer behavior —Emergence of brand-first foreign product available at 08/25/09

affordable price

YMT's College Of Management

79

•

4th largest economy in the world, in terms of Purchasing Power Parity

•

Growth primarily from Services Sector, currently accounting for 59% of the Economy

•

India is a part of the “golden triangle” countries (others being China & Russia) that are high on target list of premium & luxury brands

• A Growing Economy 2nd fastest growing economy in the world Rated among the most favourite investment destinations

08/25/09

YMT's College Of Management

80

• One-stop shopping, speed and efficiency of purchases • Consumerist attitude –Guilt-free spending –Savings not very high priority –Spending money for look-good -Shift of expense basket from basics to lifestyle products -Increased spend on Apparel, personal care • Consumer - High disposable income -Changing consumer preferences -28 states, 100+ religion, 250+ festivals 08/25/09

YMT's College Of Management

81

Resurgent India… • Over 70% population below 35 years, while 50% is below 25. • Increasing purchasing power. • Shift of population from rural to urban. • Shift of consumer towards brands. • Over 60 mn households have access to Cable TV

08/25/09

YMT's College Of Management

82

Thank U

08/25/09

YMT's College Of Management

83