Gp - Consumer Preference On Garments - Adani Retail

CONSUMER PREFERENCE ON GARMENT

ACKNOWLEDGEMENT It is pleasure to acknowledge those who have contributed to this project directly or indirectly, though it will be still an inadequate appreciation of their contribution, we here by acknowledge the names of the people to whom we shall always remain grateful. We would sincerely like to express our gratitude to Mr. Ravjibhai Patel who gave us the grand opportunity to have Grand Project at Adani Supermarket. We would especially like to thank Mr. Manish Christian, the Retailing Manager at ADANI for evincing keen interest in our work, continuous encouragement and guide us through out our survey. Without his cooperation it was impossible to reach up to this stage. We are also very thankful to all the members of Adani Supermarket who shared their valuable knowledge with us & gave us opportunity to understand the field of competitive Retail industry. We are also very thankful to Prof. Rajeshwari Jain who performed as a guide for this project. We are thankful for her constant guidance, support and inspiration. We would also like to sincerely express our gratitude to our director Prof. S. Chinnam Reddy & all the faculty members who have been time & again directly or indirectly helped us in relation to the Grand Project. Without the theoretical knowledge imparted by them during 4th Semester of M.B.A. course it was not possible to have it applied in practical life. We are thankful to the librarian at the SKPIMCS & at the AMA for extending their helpful hands as and when needed without any hesitation. Thanks to our parents, who always keep us from falling apart during endless hours of our project. They always keep our sprits up and our hamstring in working order. We eagerly look forward for the suggestions for improvement from the readers of this project. Dhaval Pandya Mayur Karavadara

CERTIFICATE

CONSUMER PREFERENCE ON GARMENT This is to certify that Mr. Dhaval Pandya and Mr. Mayur Karavada, the students of M.B.A. 2nd Year of S.K.Patel Institute of Management & Computer studies, Gandhinagar have completed their grand project titled as “A STUDY OF CONSUMER PFERENCE IN GARMENT IN ADANI HYPERMARKET AT AHEMDABAD” in the year 2005-2006 in partial fulfillment of Gujarat University requirement for the award of degree of Master of business administration.

Prof. S. Chinnam Reddy Director

Prof. Siddarth Das Coordinator

Date: __/__/2006

DECLARATION

Prof. Rajeshwari Jain Grand Project Guide

CONSUMER PREFERENCE ON GARMENT We hereby, declare that the grand project on “A STUDY OF CONSUMER BEHAVIOR PATTERN WITH RESPECT TO PART OF PRODUCT MIX FOR UPCOMING HYPERMARKET IN AHMEDABAD” is our original work and has not published elsewhere. This has been undertaken for the purpose of partial fulfillment of Gujarat University requirement for the award of degree of Master of Business Administration. Date: __/__/2005 Place: Gandhinagar

Uteshiya Dilip M.

Thakrar Milan R.

INDEX

SR. NO.

PARTICULARS

PAGE NO.

CONSUMER PREFERENCE ON GARMENT

01

EXECUTIVE SUMMARY

02

02

PREFACE

03

03

INTRODUCTION OF RETAILING

04

04

INDUSTRIAL ANALYSIS

07

05

PROBLEM OF THE INDUSTRY

10

06

FUTURE SCENARIO OF THE INDUSTRY

12

07

THE TIMES OF INDIA – HIGHLIGHTS

13

08

A BRIEF HISTORY

15

09

STORY OF THE TIMES

17

10

SIZE AND FORM OF THE ORGANIZATION

19

11

AWARDS AND ACHIVEMENTS IN ADVERTISING

20

12

FUTURE PLANS OF THE COMPANY

22

13

VARIOUS DEPARTMENTS OF THE BCCL

23

14

RMD – RESULTS & MARKETING DEVELOPMENT

24

15

PORTFOLIO OF BCCL

26

16

THE TIMES OF INDIA

28

17

THE ECONOMIC TIMES

32

18

FEMINA

36

19

FILMFARE

41

20

CURRENT TRENDS OF MAGAZINE INDUSTRY IN INDIA RESEARCH METHODOLOGY

47

21

o RATIONALE OF THE STUDY

50 50

CONSUMER PREFERENCE ON GARMENT o RESEARCH PROBLEM

50

o RESEARCH OBJECTIVE

51

o HYPOTHESIS

52

o STRATAS

52

o SAMPLING PROCESS

52

o SOURCES OF DATA

53

o RESEARCH INSTRUMENT

53

o LIMITATIONS OF THE STUDY

54

o TABLES & CHARTS OF THE RESEARCH STUDY

55

o CONCLUSION OF THE RESEARCH STUDY

61

22

SALES PROMOTION OF FEMINA & FILMFARE

62

23

PROCESS OF PENETRATION FOR FEMINA & FILMFARE

64

24

SUGGESTIONS

70

25

EXTRA ACTIVITIES

71

26

BIBLIOGRAPHY

72

27

QUESTIONNAIRE

73

EXECUTIVE SUMMARY The grand project at ADANI HYPERMARKET, Ahmedabad was very informative and knowledge giving. We have done Research Study on the consumer preferences on garment. The Research Study was confined to Ahmedabad City with a sample size of 250. We have primary data through questionnaire. We have also used different retail magazine and web-site for require information in our secondary data.

CONSUMER PREFERENCE ON GARMENT At the end of the Research study we have come to the conclusion that ADANI HYPERMARKET have good potential to attract customer in store but they require to create more awareness in the garment selling at hypermarket. There were some limitations also of our Research study. All the suggestions and findings might prove important to ADANI RETAILING and helpful to find consumer preferences in garment department.

PREFACE The business of retail in India has seen significant changes in last few years. We have seen the emergence of new formats and the application of global concepts and constructs albeit with modifications to suit the Indian environment. It not only provides the Indian consumers a wide choice, but also represents a very large employment opportunity for people with diverse skill sets. India has largest retail density in the world with 12 million retail outlets for a population of over a 1000 million, though 96% of these are smaller than 500 sq. ft. A 2 percent share of organized retail in India is the way below the 80 per cent share in USA, 40 per cent in Thailand and 20 per cent in China. Organized retailing is growing very rapidly in India.

CONSUMER PREFERENCE ON GARMENT In India we find Convenience store, Department store, Hypermarket, Supermarket, Specialty store etc. from where people purchase their requirement. All these stores can be differentiated based on size as well as the product mix available. Adani retailing India Ltd. is the group company of Adani group having nearly 61 supermarkets and 5 hypermarkets in Ahmedabad. It has penetrated the Ahmedabad market and it is on the way of expansion in other cities of Gujarat. Adani want to improve there consumer promotion scheme in garment. So studying the consumer preferences and find what the people of Ahmedabad expect in garment preferences should be understood. Our questionnaire is based on the requirement of the company. Our study will provide some insight to the company in understanding consumer buying behavior and deciding the part of product mix requirement for upcoming hypermarket.

1. INTRODUCTION The first question that must be considered is: what is ‘retail’? The word retail is, in fact, derived from the French word RETAILER, which means to cut off a piece or break bulk. A retailer may be defined as a ‘dealer or trader who sells goods in small quantities’ or’ one who repeats or relates’. Retailing can hence, be considered as the last stage in the movement of goods and or services to the consumers. put simply, any firm that sells products to the final consumer is performing the function of retailing .it thus consists of all the activities involved in the marketing of goods and services directly to the consumers, for their personal, family or household use. The past century has been witness to many changes occurring in our everyday world. Industrial and technological growth has made a significant impact on our lives as consumers. One such industry, which has made a phenomenal impact on our daily lives, is retail. This industry touches our lives as end consumers, by providing us with the products or services that we need.

CONSUMER PREFERENCE ON GARMENT

Almost everything we use in our daily lives including the feed we eat, the clothes we wear, and the things we need for our homes or for ourselves, are bought from retail stores. Goods are manufactured all over the world but are ultimately sold to us through these retail stores. India has already proven its mettle as superpower in the arena of information technology. The retail industry offers to bloom to the same level if conductive environment and support is provided it. India’s one billion populations make the country the second largest in the world in terms of population which is the very basis for successful organized retailing. We should take heart from the fact that most of the world’s successful retail stories in the developed as well as developing countries have shaped up in small towns and villages. Retailing is a green pasture not just for individuals or companies but also comes with job opportunities in all aspects of the operations. Professionalisms in retail while still in its infancy does show some promising future for those keen to make a career in this fascinating world. Talking about our project, the title of the project is “A STUDY OF CONSUMER BEHAVIOR PATTERNS WITH RESPECT TO PART OF PRODUCT MIX FOR UPCOMING HYPER MARKET IN AHMEDABAD”. For acquiring related data we have formed one questionnaire which contains 12 questions. Basically all these questions are focused on the consumer’s behavior for visiting any outlet, purchase the product and frequent need of the products. We have also learned the theoretical knowledge which requires for completing this project. We have got the knowledge about the Retailing, as well as the consumer behavior. We have learned about the Retail industry in Indian context as well as in global context. After studding these aspects of Retailing we have tried to give the suggestions and the recommendations for strengthening the future policies of the Adani hyper market in the Ahmedabad. This project will helpful to the organization for knowing what is consumers’ behavior regarding products and services offered by local provision store and general store, as well as about the part of the product mix..

CONSUMER PREFERENCE ON GARMENT

1.

2. RESEARCH METHODOLOGY

2.1 TITLE OF THE PROJECT: “A study of consumer behavior patterns with respect to part of product mix for upcoming hyper market in Ahmedabad”

2.2 OBJECTIVES:  To study consumer behavior for purchasing products from different types of retail format  To analyze product requirement of consumers from provision store, superstore etc. with frequent use. 

To analyze product mix factor affecting switching of consumer from traditional retail formats to hypermarket.

 To analyze the consumer’s perception about the concept of discounted sale.

2.3 SCOPE: • Study of consumer behavior patterns who purchase their household necessity from provision store as well as from the supermarket and the study was limited to 180 ft. Ring road, Kalawad road, Raiya road, Gondal road, Nirmala convent road, 150 ft. ring road. University road, Yagnik road Karanpara, Manharplot etc.

2.4 TIME SCOPE For completing this project we have taken a time period of three month with our study of the 4th semester.

2.5 SAMPLE DESIGN: 2.5.1 Sampling type In this project convenient sampling method is used for the selection of customer.

CONSUMER PREFERENCE ON GARMENT 2.5.2 Sampling unit To define sampling unit, one must answer the question that who is to be surveyed. In this project sampling unit is households who are purchasing there household necessity from the supermarket and the customers who are purchasing there routine household items from the provision store of Ahmedabad city of different areas. The Geographical Unit is Area and the social unit is house holds. 2.5.3 Sample size The sample size of the survey was 200 customers.

2.6 METHODS OF DATA COLLECTION 2.6.1 Primary methods 1. Questionnaire 2.6.2 Secondary methods 1. Magazines. 2. Newspapers 3. Websites 4. Books 5. Other projects. 2.7 FIELDWORK: In order to gather the primary data associated with our survey of consumers over a selected hub of areas in Ahmedabad, we have undergone an extensive fieldwork. The basic purpose of the field work was, obviously, to record responses of target consumers. 2.8 LIMITATIONS •

The time duration to carry out the survey of all the areas of Ahmedabad was very short.

•

Our survey was restricted to areas like 180 ft. Ring road, Kalawad road, Raiya road, Gondal road, Nirmala convent road, 150 ft. ring road. University road, Yagnik road Karanpara, Manharplot etc.

CONSUMER PREFERENCE ON GARMENT •

The sample size for the survey of customers was limited to 200 respondents, which might not be representative of all customers of Ahmedabad city.

•

The respondents are selected by convenience so they may not be representative of the analysis.

•

The results are totally derived from the respondent’s answers. There might be a difference between the actual and projected results.

•

Research also depends on surveyors’ bias & his/her ability to analyze the data & draw conclusion.

CONSUMER PREFERENCE ON GARMENT 3. INDUSTRY PROFILE 3.1 GLOBAL RETAILING Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain - connection the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. A retailer, typically, is someone who does not effect any significant change in the product execs breaking the bulk. He/ She is also the final stock point who makes products or services available to the consumer whenever require. Hence, the value proposition a retailer offers to a consumer is easy availabilities of the desired product in the desired sizes at the desired times. Many retailers did globalize, and some succeeded. Yet many more retailers, especially U.S.-based retailers, struggled and failed to find the holy grail of globalization. Indeed, the retailing industry is littered with the charred remains of investments that drained cash from the bottom line. Retail behemoths were humbled by poorer, technically unsophisticated local companies that simply knew their customers better. They were sideswiped by financial crises in such disparate locations as Argentina, Indonesia, Russia, and Mexico. So is there still hope for retail globalization? The answer is yes. Despite the many failures, there are also many successes. The factors that drove enthusiasm in the past have not disappeared. Emerging markets still represent the greatest hope for increased spending power, home markets are still laden with excess capacity and slow growth, and big retailers still have much to offer consumers in emerging countries. In the developed countries, the retail industry has developed into a full-fledged industry where more than three-fourths of the total retail trade is done by the organized sector. Huge retail chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now replaced the individual small stores. Large retail formats, with high quality ambiance and courteous, and well-trained sales staff are regular features of these retailers

CONSUMER PREFERENCE ON GARMENT

Top Ten Retailers Worldwide Rank Retailer

No of stores owned

Sales in FY-00 US$ Millions

1

Wall-Mart Stores Inc. (USA) 4178

$180,787

2

Carrefour Group (France)

8130

$61,047

3

The Kroger Co. (USA)

3445

$49,000

4

The Home Depot, Inc. (USA) 1134

$45,738

5

Royal Ahold (Netherlands)

7150

$45,729

6

Metro AG (Germany)

2169

$44,189

7

Kmart Corporation (USA)

2105

$37,028

8

Sears, Roebuck and Co. (USA)

2231

$36,823

9

Albertson's, Inc. (USA)

2512

$36,726

10

Target Corporation (USA)

1307

$36,362

Broadly the organized retail sector can be divided into two segments, In-Store Retailers, who operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers, and the non-store retailers, who reach out to the customers at their homes or offices. Apart from using the internet for communication (commonly called e-tailing), non-store retailers did business by broadcasting of infomercials, broadcasting and publishing of directresponse advertising publishing of traditional and electronic catalogues, door-to-door solicitation and temporary displaying of merchandise (stalls).

3.1.2 Global 250 Highlights

CONSUMER PREFERENCE ON GARMENT

This year we have expanded our coverage of large retailers. The table presents the 250 largest retailers around the globe. An additional 50 retailers were added, in part, because there are a large number of companies that have sales in the low- to mid-$2 billion range that in previous years were not being highlighted. Several of these companies are rising stars; others simply are solid performers whose status should be acknowledged. The retailers in the current list generally performed well in 2003. The global economic upswing gained momentum in 2003, which provided an important lift to retailers around the world. Importantly, many regions — North America, Asia, Latin America, Africa — exhibited growth in consumer demand for the year. This synchronous upturn underpinned the 3.9 percent gain in inflation-adjusted global GDP in 2003. It was the global economy’s strongest rate of increase since 2000. Only Western Europe did not experience acceleration in growth during the year. 2004 Results Retail sales for these 250 companies totaled $2.6 trillion. With global retail sales of roughly $8 trillion, these 250 retailers are capturing about a third of the marketplace. Retail sales varied across a wide range — from a high of $256 billion for Wal-Mart to CBRL Group’s $2.2 billion. (CBRL Group is known mostly for its Cracker Barrel Old Country Store Restaurants.) However, at the bottom of the list, the race was much tighter. There were 58 retailers whose sales were within a very narrow band of $3 billion to $2.2 billion. There also were nearly a dozen more retailers with sales of slightly more than $2 billion who just missed making the list.

CONSUMER PREFERENCE ON GARMENT The improved global economy, coupled with increased productivity from technology investments, has helped retail profitability. For those companies who report their results, only 5 retailers, or 6 percent, recorded a net loss in 2004. In last year’s report, 7 percent of the retailers had losses, and in the prior year, 13.5 percent were unprofitable. For those who were profitable in 2004, the average net income figure represented 3.3 percent of group sales. The largest retailers have, for the most part, retained their leadership roles. Among the top 10 retailers, there were only small movements in the rankings. The top three companies — Wal-Mart, Carrefour and Home Depot — remained the same. Tesco and Aldi Einkauf moved up two slots, while Sears dropped from 10th to 13th largest global retailer. Sales from these 10 retailers reached $740 billion, representing 28.4 percent of the total from these 250 companies. There are two new Chinese retailers that have joined the ranks of top retailers. Shanghai friendship, ranked 164 on the list, is the parent company of China’s largest supermarket Operator, Lianhau Supermarket. Beijing Gome Home Appliance is the 230th largest retailer on the list. As the Chinese government continues to support efforts of consolidation among its retailers, the number of large retail conglomerates will continue to grow. China’s securities regulator in October 2004 approved a plan for Bailian Group to acquire major stakes in five other retailers, including Shanghai Friendship. The Chinese government is facilitating consolidation, in part, to allow its retailers to better compete against the growing presence of foreign retailers. At the end of 2004, China began allowing foreign retailers to set up wholly owned units, with no restrictions on the number of outlets or locations. 3.2 RETAILING IN INDIA 3.2.1 RETAIL SALES The evolution of Indian retail industry For Indian retailing, things started to change slowly in the 1980s, when India first began opening its economy. Textiles sector (which companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim) was the first to see the emergence of retail chains. Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms. For long, these remained the only organized retailers, but the latter half of the 1990s saw a fresh wave of entrants in the retailing business. This time around it was not the manufacturer looking for an alternative sales channel. These were pure retailers with no serious plans of getting into manufacturing. These entrants were in various fields, like - Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. As of the year ending 2000 the size of the Indian organized retail industry was estimated at around Rs. 13,000 Crore. The various segments that make up the organized retail industry along with their size are in table given below. Retail growth is already gathering momentum and

CONSUMER PREFERENCE ON GARMENT the organized retail industry is expected to grow by 30 per cent in the next five years and is expected to touch Rs. 45,000 Crore in 2005. Thus, the growth potential for the organized retailer is enormous Retailing in India The retail market size in India is estimated to be around $180 billion. Retailing provides jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India's GDP. But the flip side of the coin is that the average size of each of the retail outlets in India is only 50 square feet and though a large employer, the industry is very unorganized, fragmented and with a rural bias. 1. The Indian retail industry is unorganized

There are nearly twelve million retail outlets in India and the number is growing. Two thirds of these stores are in rural location. The vast majority of the twelve million stores are small "father and son" outlets. According to the "Retailing in India" report published by the PwC Global Retail Intelligence Program, share of the unorganized sector is 98%. 2. The Indian retail industry is fragmented

Retail stores in India are mostly small individually owned businesses. The average size of an outlet is 50 sq. ft. and though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 sq. ft per person is amongst the lowest in the world. 3. The Indian retail industry has rural bias

Nearly two thirds of the stores are located in rural areas. The retail industry in rural India has typically two forms: "Haats" and "melas". Haats are the weekly markets: they serve groups of 10-50 villages and sell day-to-day necessities. They are frequently used as replenishment point for the small village retailer. Melas are larger in size and more sophisticated in terms of the goods sold. Mela merchandise would include more complex manufactured products such as televisions. Even in urban areas, organized in India is restricted to the top few cities of the country as shown in Table given below: Trends in Retailing Retailing in India is at a nascent stage of is evolution, but within a small period of time certain trends are clearly emerging which are in line with the global experiences. Organized retailing is witnessing a wave of players entering the industry. These players are experimenting with various retail formats. Yet, Indian retailing has still not been able to come up with many successful formats that can be scaled up and applied across India. Some of the notable exceptions have been garment retailers like Madura Garments & Raymond’s who was scaled their exclusive showroom format across the country

CONSUMER PREFERENCE ON GARMENT 1. Experimentation with formats Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out; the old ones tweaked around or just discarded. Some of these are listed in Table below. Retailer

Current Format

New Formats. Experimenting With

Shoppers' Stop

Department Store

Quasi-mall

Ebony

Department Store

Quasi-mall, smaller outlets, adding food retail

Crossword

Large bookstore

Corner shops

Pyramid

Department Store

Quasi-mall, food retail

Pantaloon

Own brand store

Hypermarket

Subhiksha

Supermarket

Considering moving to self service

Vitan

Supermarket

Suburban discount store

Food world

Food supermarket

Hypermarket, Food world express

Globus

Department Store

Small fashion stores

Bombay Bazaar

Aggregation of Kiranas

Efoodmart

Aggregation of Kiranas

Metro

Cash and carry

S Kumar's

Discount store

Retailers are also trying out smaller versions of their stores in an attempt to reach a maximum number of consumers. Crossword bookstores are experimenting with Crossword Corner, to increase reach and business from their stores. Food World is experimenting with a format of one-fourth the normal size called Food World Express. 2. Store design

Irrespective of the format, the biggest challenge for organized retailing is to create an environment that pulls in people and makes them spend more time shopping and also increases the amount of impulse shopping. Research across the world shows that the chances of senses dictating sales are as much as 10-15% for certain categories. This reason is good enough for organized retailers to bring in professional designers while developing a new property. And, that is why retail chains like Music World, Barista, Pyramid and Globus and laying major emphasis & investing heavily in store design. Music World spent three months in college campuses and metros studying the market and talking to youngsters before starting work. The brand identity was created after extensive research: a logo was designed and the look of the stores across the country was decided upon. Apart from the visual impact, the functionality of the store design was also taken care of. Listening posts have been created for people to listen to their favorite album and an area in the center of the stores has been earmarked for celebrity visits and promotions. 3. Emergence of discount stores

CONSUMER PREFERENCE ON GARMENT What does Subhiksha in Chennai, Margin Free in Kerala and recent entrants like Bombay Bazaar in Mumbai, RPG's - Giant in Hyderabad, Big Bazaar in Kolkata, Hyderabad and Bangalore have in common? Their products are below MRP. Discount stores have finally arrived in India and they are expected to spearhead the revolution in organization retailing. Though this segment is growing, it is small compared to international standards where around 60 per cent of the business comes from this format. Internationally, the largest retailer in the world Wal-Mart is a discounter. These discount stores have advantages of price, assortment dominance and quality assurance and have the ability to quickly build scale and pass on the benefits. However, the success would be for retailers who are able to build the scale fast and manage their operations efficiently while offering value to the customer consistently. 4. Unorganized retailing is getting organized

To meet the challenges of organized retailing that is luring customers away from the unorganized sector, the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart have also been formed which are aggregations of Kiranas. In a novel move, six Delhi based restaurants have come together and formed a consortium: NFC, to promote New Friends Colony, a posh locality in the Capital, as a branded place in town. The aim is to increase footballs in the area, which is fast losing its sheen to its closest and upcoming destinations such as large cineplexes, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR'. 5. Not all stories are a success

A lot of activity is happening in retail and though we do have may success stories, not all ventures have been successful. Shoppers' Stop, for example, implemented JD Edwards ERP, but could not reap much benefit due to less than optimal number of operating locations. A few references of other such less successful ventures is given below: 

Franchising, as a way to grow has not worked out well for Vitan, the second oldest food supermarket. More than two third of its 19 odds outlets have either folded up or snapped up ties with the parent.



The foray of organized retailing in the small towns of India has met with limited success. The notable example being Shoppers' Stop foray in Jaipur. The retailers are now focusing their energies on the top six cities.



India's oldest food supermarket chain, the Bangalore based Nilgiris has been up for sale for a few months now but yet to find takers.



In Delhi, the Escorts group-promoted Nanz, a food supermarket has shut down after being unable to find a white knight.

CONSUMER PREFERENCE ON GARMENT These failures and limited successes have happened both due to a lack of experience and understanding of issues.

VISION 2010

CONSUMER PREFERENCE ON GARMENT

15000

Organised

Others

2094 1538

3665 2691 Durables

3665 2691 Personal Care

Consumer

4189 3076 Eaiting out

4712 3460 & Leisures

Entertainment

5759 4229 Specially

0

Apparel

5000

Malls

6283 4614

10000

Grocery

INR Cr

20000

16148

25000

21990

Industry Retail Industry 2004

According to ICICI estimates, the share o organized retailing is set to increase from 20 percent in 2010. A share of Rs. 2900 Crore in 2004 will leap to Rs. 38,447 in 2010.

15000

Organized

2094 1538

3665 2691 Personal Care

3665 2691

4189 3076 Eaiting out

5759 4229 Specially

4712 3460

6283 4614

5000

Malls

Grocery

10000

Others

Durables

Consumer

& Leisures

Entertainment

0 Apparel

INR Cr

20000

16148

25000

21990

India Retail Industry 2010

CONSUMER PREFERENCE ON GARMENT The past 2-3 years have seen a number of developments in the retailing business in India. The entry of corporate houses like RPG, Tata and Piramals has increased the capital availability in the market. Bigger players like Shoppers Stop are in a position to take advantage of their sizes in dealing with the manufacturers. Despite a slowdown in the economy, customer queues at the stores are not decreasing. Retail sector is bound to grow in the coming years. But how much and in what direction are the questions that need to be evaluated. Various agencies have made different estimates of the size of organized market in 2010. The one thing in common amongst these estimates is that the Indian organized retailing industry will be very big in 2010. The status of the industry will depend a lot on external factors like Government regulations and real estate prices, besides activities of the retailers and demands of the customers. Based on our analysis of present trends, and development of retailing elsewhere, we present our perspectives and snapshots of organized retailing, as it would exit in 2010.

1. Investment will increase

Retail sector will see huge investments in the next 4-5 years. Newer chains will come in and the present players will increase their penetration. By 2005, the established players would have reached saturation levels in metropolitans and will shift the focus of their investments to other Class 1 cities. By 2010, there will be little difference between the metros and the next 20 cities (the present million plus cities). However, the investments would largely be private investments, or at best secondary markets. This will happen because expansion will happen through investments by business houses that will not sell their stakes. If any purely retailing company exists, it will be an exception. However, if the ban on foreign players holding a controlling stake is lifted, the sector could see drastic movements. The entry of foreign players will undoubtedly result in buying and selling and some businesses might withdraw their money in anticipation. The entry of foreign players, if allowed, will not only affect ownerships, but also change the basics of business. Huge investments in stores and their supply chains can transform the entire scenario. But the lifting of ban is a policy issue that cannot be predicted, and can only be decided by the government. 2. Demographics

In the next 10 years, India population is expected to grow by about 14 per cent. But this increase will not be even. Important trends that will affect retailers are listed below.

CONSUMER PREFERENCE ON GARMENT The number of children (0-15 years) will remain stable at 30 million: This will mean a lesser growth for toys, games and some apparel segments. But given the current nascent stage of the growth, these sectors will still offer high growth rates. The number of people in 40-60 years of age will go up by 30%: Sales of cosmetics, skin care, hair dyes, and other youth inducing products will rise. More consumer resources would be spent on retirement planning and saving for retirement. Home improvement and financial services firms would benefit from this trend. The number of households will increase by 25%: This would lead to a higher growth in the household-decor items vis-a-vis personal items as apparel and fashion accessories. 3. Regional differences will stay

Although a few players will be able to form pan-Indian retail supply chains, the retail market is unlikely to be a single entity. For example, food retailing in Chennai, Kolkata and Chandigarh is vastly different in terms f shopping habits and consumer tastes. Many such differences will remain. Though a few national retail chains will develop, they would have to coexist with strong regional players, who would excel in their understanding of the customers and strong brand names. The national players would primarily be is sectors like Apparel, Fashion, Food and Music. Importance of local supplies for grocery sector would ensure the regional chains would reign supreme in these sectors. The key to success for national players will to maintain the efficiencies that come from their large-scale operations while retaining the ability and the flexibility to satisfy different needs of different consumers. However, organized retailing, in some cases, will change and harmonize consumer habits, purchasing patterns and consumer behavior. McDonalds and Barista have already been successful in doing this. 4. Retailers would adapt more than one format

Today, internationally all top-retailers (except Kmart and Aldi) operate 3-4different formats, with companies like Metro AG operating 13 formats. This diversity of formats allows the company to utilize its brand value across different segments and categories of customers. Signs of such a development are visible in India as well. A movement towards Class-I cities necessitates modification of operating format5s to suit different needs. By 2010, top retailers would be operating at least 3-4 formats. The biggest challenge that the retailers will have to face would be of maintaining different brand images, and though clashing images would be formed, a few retailers would be able to use Brand Extensions to establish different images in different cities. 5. Dual focus on costs and time

CONSUMER PREFERENCE ON GARMENT

With more dual income families’ consumer ability to spend will increase, but the time available for shopping will go down. Customers will become more demanding in terms of rapid and friendly service. Retailers would develop shopping as an entertaining experience, but the more successful ones will be the ones who provide faster service. On the other hand, increasing competition would push the prices down. Efficiencies in supply chain and economies of scale would allow retailers to reduce their prices without compromising either on the shopping experience or on their own profitability. 6. 24 hours retailing

Time stressed consumers will also ask for round the clock retailing. As these consumers will be ready to pay a premium for service at odd hours, the timings of shopping will have to adapt to needs of these consumers. A number of 24 hours retail stores would emerge to cater to this need. The assumption here is that the current administrative restrictions on running shops at nights will be lifted. It is expected that in the face of increasing demand from both the consumers and the industry fore, regulations regarding retailing will be eased. 7. Small retailer will coexist

Within a decade; large organized retailers would be controlling a substantial portion of the retail trade. Yet, it is not to say that small, independent and unorganized retailers will disappear in large numbers. They will survive on their core strengths of personal relations with customers and closeness to residences. The experiences of South East Asian countries has been that even after 10 to 15 years of allowing FDI in retailing, unorganized retailers still control a sizeable chunk of the retailing market. The Indian experience in retailing is expected to be no different.

However, to compete with the big retailers on price, small retailers will form cooperatives for purchasing, just as the once in France, Spain and Italy have already done. This trend has also started in Delhi, and is only expected to increase. 8. Supply chain dynamics

T he balance of power between retailers and manufacturers will shift towards the retailers. The bigger retailers would be able to seek the lowest prices, require their suppliers to assume greater business risks, and collaborate with suppliers to achieve overall cost reduction in their operations. Scale economics would help in operating optimized supply chains and logistics network with investments in information technology enabling process efficiencies and effectiveness.

CONSUMER PREFERENCE ON GARMENT Increased volumes would enable investments in specialized equipment for transportation of goods. Retailers with large chains would negotiate and get central procurement but local dispatches from their suppliers. 9. Internet

Internet retailing will thrive in the coming decade. It may not be apparent now because internet access is far behind the US and west, and high usage charges represent a serious impediment to frequent consumer usage. The Government has already shown intent to deregulate the telecommunications sector. Deregulation would increase Internet usage in the country and also the trading on the net. However, it is expected that the bricks and mortar stores converting to clicks and mortar model would dominate the Internet sector. ? This is because of their already existing brand names and economies of operations that they would be able to reap. Conclusion

The past 4-5 years have seen increasing activity in retailing. Various business houses have already planned for few investments in the coming 2-3 years. Though the retailers will have to face increasingly demanding customers and intensely competitive rivals, more investments will keep flowing in and the share of organized sector will grow rapidly. Organized retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants.

CONSUMER PREFERENCE ON GARMENT

3.2.2 MAJOR RETAIL PLAYERS Retailing in India is still evolving and the key players are working with newer formats in an attempt to grow at a fast rate. The table lists some of the important retailers in India at the present time:

CONSUMER PREFERENCE ON GARMENT Format

Neighborhood stores

Supermarket

Brands

Margin Free Margin Free (Discounter) Safal Mother Dairy Subhiksha Subhiksha (Discounter) Foodworld RPG Nilgiri’s Sabka Bazaar Haiko

Hypermarket Cash & Cary Departmental store

Group

Trinetra Ravji’s Giant (Discounter) Big Bazaar Metro Shoppers Stop

No of Stores (Approximate) 350

Estimated Turnover (INR millions) 5500

279

1000

150

1500

90

3600

Nilgiri’s Sabka Bazaar Lakewood Mall Pvt Ltd Trinetra Adani RPG

30 19 1

500 110 120

19 5 1

400 150 850

Pantaloons Metro K Raheja Group-Real Estate

5 1 13

1800 --3,030

CONSUMER PREFERENCE ON GARMENT

The trend of large corporate groups entering the organized retail sector - looking for new business opportunities continues. Groups such as ITC, RPG, and Tata’s which entered the organized retail sector are expanding their operations in the country. Most of the players in organized retailing are in the initial stages of their business and expansion plans. Accordingly, most are not profitable businesses at the present time. Pantaloon and Westside (Trent) are listed on the capital markets and have shown net profitable in the last year. Most other players are hoping to break even and start making money only in the coming years. The presence of multinational retailers is still an exception with Dairy Farm, Marks & Spencer, already on the market. Metro is expected to set up operations by the end of the year. 3.2.3 RETAIL & CONSUMER SECTOR CHALLENGES AND OPPORTUNITIES Hurdles faced by the Retail Sector The Indian Government is in the process of formulating a strategy to nurture and support the retail sector. Due to this, retailing in India is largely unorganized and fragmented. Lack of FDI (Foreign Direct Investment) is another reason why it remains so traditional. Policy makers continue to put barriers for the entry of foreign enterprises due into this sector. But the last decade has witnessed significant movements towards modern retailing, especially in the consumer durable products segment. Products, marketed on ‘lifestyle’ platforms, experienced a dearth of appropriate retail outlets, which could fit their brand positioning. As a result, many brands began to set up their own retail outlets initially, thereafter expanding their modern retail network through franchise arrangements. In contrast, the grocery segment has been slow to take to modern retail. The grocery sector in India is estimated to be USD 90 billion. The organized retailing in this segment is still in its nascent stage and needs to develop in terms of its scale and share in the market, margins earned, labour productivity, and economic propositions like distinctive sourcing, development of private labels, technology, etc. But there are some modern retailing formats in grocery that have emerged and are catching on with the increasing number of nuclear households in urban India, where both husband and wife may be working out of home or traveling. A large number of retail outlets in India still remain family owned. They offer limited Products and finance facilities. Banks are hesitant to provide these retail sector units with finance facilities due to their small size which is non viable for the banks. The supermarket format in India faces the difficulty of obtaining licenses, customer inhibition and the lack of suitable personnel.

CONSUMER PREFERENCE ON GARMENT But organized retailing is likely to emerge in other categories like appliances, IT products and others. This kind of progress will depend largely on real estate, prices, supply chain bottlenecks and sourcing. Emerging Channel Conflicts The relationship between manufacturers, wholesalers, middlemen and retailers need to improve so that business practices are smooth and stock outs in India become uncommon. In the grocery sector, for example, there are still no direct transactions between major owners and large retail chains-with local suppliers still being routed through the company’s distributors. Direct interaction through intermediation of the distributor could lead to conflicts for the larger part of the business of brand owners. However, with recent changes and growth in the retail segment, the supply chain relationship is also likely to undergo several changes in future years. Brand Competition The Indian urban consumer is quite aware of international trends and most consumers are very value-conscious. Indian retailers need to be extremely efficient in their operations and design, as the value-conscious Indian consumers will not pay more for a superior shopping experience. What this means for international brands is that they need to clearly offer contemporary designs and provide value to the Indian consumer - even if this means adapting their international designs to suit local conditions. With the advent of global competition in the retail sector, domestic companies will have to learn to keep up with the trends of the market or face the consequences of shutting down. But consumers have benefited from this competition as it provides them with a larger variety of choices and a better standard of living. Franchising Development Transnational retail giants have opened up stores in India through franchise arrangements with Indian promoters. Marks and Spencers have recently opened its store in New Delhi and Mumbai through the licensee route. 3.2.4 RETAIL & CONSUMER SECTOR EMERGING TRENDS/OUTLOOK An Emerging Middle-Class The income distribution of households has also undergone a sea change in recent years. The consolidated purchasing power of the country has gone up, and the trend is projected to continue. A significant share of population will move up the affordability and affluence ladder by 2006 - 07.---

CONSUMER PREFERENCE ON GARMENT

Market The Affluent Upper middle Core middle Low middle Poor Sub Poor

Metros 600000+ 480000-600000 120000-480000 48000-120000 15000-48000 < 15000

Towns 480000+ 3000000-480000 96000-300000 36000-96000 12000-36000 < 12000

Rural areas 360000+ 180000-360000 72000-180000 30000-72000 9600-30000 < 9600

As the table above shows, the lower middle income segment is also expanding. While the affluent, upper middle and core middle segment taken together is 86 millions, the low middle segment itself is 204 million. This segment could be an equally attractive proposition for retailers and they could target specific business models for this segment Growth of Organized Retail The sheer size and potential of India’s consumer market is enough for the big international retailers to have an interest in setting up stores in the country, despite the obstacles they might face. The growth prospects of this sector seem to be very positive. A large number of malls, entertainment complexes and eateries are being set up. The next few years is likely to see rapid growth in organized retailing with several leading international retailers establishing a presence in India.

3.4 ENVIRONMENTAL ANALYSIS In order to understand the industry we undertook two different environmental analyses. The first is the PEST Analysis where the political, environmental social and technological

CONSUMER PREFERENCE ON GARMENT aspects are looked into and another is Porter's Five Forces where the competitive environment of the Industry is analyzed. 3.4.1 PEST Analysis Now, in a particular geographic region, the environment there affects the retailers in the region in various ways. We have studied the effects under the following heads: 1. 2. 3. 4.

Political environment Economic Environment Social (Socio-Cultural) Environment Technological Environment

1. Political Environment With the opening up of the economy, more and more MNC's have pervaded the Indian Business arena, through joint ventures, franchisees or even self-owned stores. The very first MNC getting into the business was Spencer's, a tie up between the RPG Group and the Dairy Farm International; a $ 10 billion Hong Kong based company, and a part of the Jardine Mathenson group. Government uses regulation to prevent development of monopolies, which results in restricted competition and fixed prices. (MRTPC). Government also propounds price competition laws and unfair trade practice laws. Retailers must understand what rights they have in pricing merchandise, what provision they should make for customer relations, what rights and responsibilities they possess when making a sales, what rights their employees have and what liabilities they may face while selling products to the consumers. 2. Economic Environment The type of economic system (capitalism or socialism etc.) existing in a country has a direct bearing on the potential for and the development of the retailing industry in that country. A retailer cannot escape the effects of the factors in the macroeconomic environment, be it domestic or global that influences the local market. Inflation, unemployment, interest rates, tax levels, the GDP and the rate of real growth in GDP (Inflation adjusted) are some aspects of the economy which a retailer must cope with. Real growth makes more income available to people who then tend to spend more, leading to higher sales and more profits for the retailers. However growth also leads to higher competition in the long run. As the economy expands, higher demand levels lead more firms into the market, trying to fulfill the consumers' needs. The inflation (i.e. increase in price) leads to less goods being bought at higher prices. As the retailers' cost of goods increases, they attempt to pass on this increase to the consumers. However, it is often not possible to pass on the entire amount to the consumer, hence resulting in cuts in the retailers’ profits. With the increase in Purchasing Power Parity (PPP) and the disposable income of the Indian consumer, retailing is catching up at a very fast space in the country.

CONSUMER PREFERENCE ON GARMENT

3. Social Environment The demographic trend and lifestyle patterns, of the society that a retailer intends to serve, decide the retailer’s strategy. Traditionally, children seldom accompanied their parents while grocery food shopping. Shopping for children was confined to that during festivals when dresses were brought for them. But, in the present day, due to scarcity of time, working parents prefer to spend as much time as possible with their children and this includes their shopping hours also. As the organization retail sector offers the option of entertainment along with shopping, the younger couples opt for these retail outlets for shopping Speaking at KSA Retail Summit, 2000, Peter Lau, Chairman of Giordans International, Hong Kong, said, "It is the format of consumer expectation that changes, not the goods or services they want.” KSA Techno Park conducted a study on consumer attitude towards shopping in association with the market research firm ORG- MARG in January and February 1999. The study was spread over the four zones of India viz. North, South, West and East and covered a random sample of 7300 respondents in twelve cities. The results of this study clearly reflect that the buying patterns do vary according to the customs and lifestyle of a region. In the south approximately seven hours are spent on shopping per week. This figure is the highest amongst the four zones, which probably explains the more spurt of new malls and supermarkets in the south than in the other zones. Further, the study has attempted to find out what a customer expects out of a store. Here, the six attributes desired by most number of people (65% and above) are polite and courteous salespeople, quality of products, non intrusive sales persons, value for money, attractive displays and range of products. Although desired by a very low percentage of people (only 10%) yet the attribute of an entertainment centre for children has also figured in. That is to say, apart from quality and range of products, value for money and attractive displays, the human touch has a vital role to play. Smart, polite and courteous sales people might make all the difference for a store, which is like any other in terms of its Product offerings. There is also emphasis on schemes and promotions, which, as the study ratifies, do pull customers. Further the trend is towards more convenience and flexibility in terms of exchange/ return policies, which play a vital role in encouraging the purchase.

4. Technological Environment Technology is probably the most dynamic change agent for the retailing industry. The computerization of the various operations in a retail store, including inventory management, billing and payments as well as database (of customers) management, widespread use of bar coding, point -of-sale terminals and Management Information System has changed the face of retailing drastically. Apart from providing the retailers with better and timelier information

CONSUMER PREFERENCE ON GARMENT about their operations, the technology also does the job of preventing theft, promoting the store's goods and creating a better shopping atmosphere. These can be done with the help of closed circuit televisions, video walls, in-store video networks, kiosks and other forms of interactive applications ranging from CD-ROMs to virtual reality to let customers select and buy products. They make the customer's life a lot easier by facilitating the use of developments like credit cards. Toll free 800 numbers have brought about a revolution in consumer's ordering and feedback mechanisms. These also pave way for tele-shopping and net-shopping. Emerging technologies will also facilitate just-in-time management of certain products within the store. These trends are already visible in the music and greeting card industries. 5. Legal Environment Despite the size and the phenomenal potential that exists, retailing is among the lesserevolved sectors of the Indian Industry. Retailing as an industry is yet to be recognized in India. The policy environment is currently seen to be unfavorable to organized retailing. Given the huge investments that need to be made, a look on the Foreign Direct Investment Policy in the sector might be needed. Complex sales tax rates, octroi and excise structures are major deterrents. Other impediments to growth of retail include the bureaucracy, inflexible labour laws and multiple licensing requirements. Real estate in India is also not geared to facilitate organized retailing. Restriction on FDI The Indian economy is highly regulated and the most significant regulation is the restriction of foreign ownership. A strong FDI presence in retail sector is expected to not only boost the retail scenario, but also act as a driving force in attracting FDI in upstream activities as well. This will be more prominent in food processing and packaging industries because many large retail chains also promote their own brands by way of backward integration/contract manufacturing. The status of organized retailing in some South East Asian countries that allowed FDI in retailing has been given in Table below: Country

Organized Retailing

Traditional Retailing

Malaysia

50%

50%

Thailand

50%

50%

Philippines

35%

65%

Indonesia

25%

75%

South Korea

15%

85%

China

10%

90%

CONSUMER PREFERENCE ON GARMENT India

2%

98%

In view of the demands made by industry and the need to boost the retail trade, the Government is actively considering removing the restrictions. A recent note circulated by the Ministry of Commerce has proposed permission for FDI up to 100 per cent in retail trade subject to Government approval on a case-to-case basis. However, this permission, if it is given, will be with lots of strings attached. Besides following rules on minimum capitalization, the foreign entrants will be expected to neutralize the outflow of foreign exchange (repatriation of dividends) by way of export earning on a year to year basis. The biggest opposition to allowing 100% FDI is the feared exit of the small retailers. Currently, moves are on to counter these apprehensions and the players are keenly awaiting the final decision from the Government. Land and Property laws There is a shortage of good quality retail space and rents are high for what is available. Compounding these shortages are the following problems. One of the drivers of property prices is the high demand for space in the cities. This demand is exasperated by the flow of black money (undeclared for tax purpose) that is generally invested in the property sector. Only Indians can own property in India, which complimenting the restrictions placed on FDI, restrict the entry of foreign players. Stamp duties on property deals are significant (12.5% in Gujarat and 8% in Delhi). The lease alone can cost up to 6-10 per cent of sales while it's just 3-5 per cent globally. The initial urban planning of cities was done with smaller plots in mind which along with rigid building and zoning laws make it difficult for procurement of retail space. The urban land ceiling act and rent control acts have distorted property markets in cities, leading to exceptionally high property prices. The presence of strong pro-tenancy laws makes it difficult to evict tenants and make people reluctant to give real estate on rent. The problem is compounded by problems of clear titles to own Labour Laws The labour laws instituted to protect store workers are not flexible enough to support the modern formats of retailing. These rigidities in the law constrain the operations of modern retail outlets.

CONSUMER PREFERENCE ON GARMENT

Working hours are restricted, with shops required to close one day of the week and the hiring of part-time employees is difficult, However, in Bangalore, the State Government has permitted flexibility in the use of labour without doing away with the associated benefits accruing to it. Taxes 

Corporation tax is 38% and this would be even higher at 45% for a foreign business.



Even essential basic foodstuffs are taxed (8% on milk).



The varying sales tax rate across states make supply chain management an even more difficult task for retailers.



With the expected introduction of Value Added Tax (VAT) in April 2005, some of the sales tax anamolies in the supply chain could get correct over a period of time. However, retailers might also be additionally burdened as given below:-

Changing tax structure: Retailer margins to come under VAT net 

In the tax regime contemplated from April 1 2003, VAT will be imposed at every stage between the manufacturer and the final consumer. Thus, margin payable to the distributor and the retailer will also be taxed.



As retailers and wholesalers would be taxed under VAT, their margins will decline. Companies, in turn, will come under pressure to increase trade and distributors margins to the extent of the tax being paid by them, thus pushing up the cost of the product. The MRP could therefore increase in order to neutralize the impact of VAT on margins. Goods with a long distribution chain between the manufacturer and final consumer, such as FMCG items and consumer durable, would be the worst affected.

CONSUMER PREFERENCE ON GARMENT 3.4.2 Porters Five Forces As yet, we have been analyzing the retailing industry in the context of the macroenvironment - consisting of Political laws, Economic regulations, Social customs and Technical standards, in the land of a particular retailer. Now we move on to the analysis of the industry in the contest of competition prevalent within the players of the industry. This addresses the need to identify those factors in the environment, which influence the capability of a firm to achieve a competitive advantage and to position itself to such advantage. Players at different levels of scale of operations have to confront different levels of competition posed collectively by the five forces- threats of new entrants, rivalry amongst the existing firms, and pressure from the substitutes and the bargaining power of buyers and suppliers. Different forces take on prominence in shaping the competition at and also across different levels. 1. Threat of Entry To an industry depends on the extent to which there are barriers to entry, which most typically, are one or more of the following six: 1.

Economies of scale are not such a big issue in the retiling industry. The scale of operation might be small for a firm to begin with and it can, in its initial stages, focus on a specific target segment whose needs can be addressed by that scale of operations. But these surely gain importance once expensive technological advancements (which may be beyond the reach of small retailers) come into picture.

2.

For instance, it may be difficult for the small firms (or retail outlets or chains) to use fully automated inventory systems or toll-free 800 numbers or in-store video networks or other interactive applications. As a result, they might lose out on the grounds of efficiency, in competition with their larger competitors. So they must adapt by concentrating on providing more personalized services to the target segment seeking it. Hence this factor is mainly responsible for triggering competition between large and small retailers.

3.

Capital requirements again depend on the scale of operations. Franchisers have an edge over the corporate retail chains in this regard as they are able to form national / international networks without high investment of their own.

CONSUMER PREFERENCE ON GARMENT 4.

Cost advantages independent of size (scale) arise due to the experience gained by early entrants and the relationship they have established over time with their suppliers, manufacturers and customers. These might also pose difficulties in handling market and operational problems. This is why absolutely new local entrant faces severe competition from the large retail chains operating worldwide who might want to plunder their regions, with the expertise that they have gained as a result of years of experience. On the top of it, with the help of lucrative offers, they tie-up with the existing local players who know the area well.

5.

Expected Retaliation from the existing firms (at large scales) is rising over time or due to recent trend of foreign collaborations, they now have the financial muscle to combat any sort of competition relating to price or promotion. For small and local retailers, this is not such a big issue. v. Legislation regarding location, prices, number of employees etc. affects the operations or even establishments of a new entrant - at large as well as at small scales. Today legislation has contributed towards increasing competition tremendously by allowing entry of foreign players, independently or as a joint venture with the local players. But it works towards keeping a check on entry by implementation of regulations.

6.

Differentiation: postulates that new entrants might have to spend heavily to overcome existing customer loyalties, which established firms are enjoying due to past advertisement and customer service or simply due to early entry into the market. To attract its target segment, a retailer will have to project some benefit(s) that he/she is offering over and above the offerings of the existing players.

2. Intensity of Rivalry Among Existing Competitors is High In case of tangible products in retailing industry as the existing feature in the consumer market is brand loyalty (i.e. loyalty to a manufacturer's product) rather than store loyalty. Consumers look for a particular brand which they have used/ consumed/ heard about, which might be available with a number of different types of retailers- big and small. Today big supermarkets or malls with specialized retailers do pose a threat to the neighborhood retail stores, which are now used for fulfillment of immediate and small needs only. On the other hand, large professional retailers face competition from more personalized retailers who might be more comfortable with offering facilities like credit on purchases, return and exchange offers, specialized, hard to get and better quality items and extended business hours in order to retain whatever customer base they have and not let it be lured away by competitors. They just have to niche around big retail stores and malls by improving customer service, tailoring selection to customer needs and not competing directly with their product lines. Big retailers cannot match small ones on value. They live on hype and not reality. E.g. Big retail stores (chains) like Wal-Mart create illusion that they always undersell the market, based on a handful of heavily promoted items at rock bottom prices, but the rest of their inventory is not as price competitive.

CONSUMER PREFERENCE ON GARMENT Mr. R Gopalkrishnan of Tata Sons has opined that- "In India, smaller retailers continue to grow contradictory to the normal economic development where small retailers decline in numbers with their emergence of the large players." Experts feel that the size of population and the high unemployment rate have contributed to their growth of small retailers. With so many looking for work, setting up a small outlet is relatively a simple Thing to do. Lastly, high (10%) industry growth has turned competition into a market share game. 3. Pressure from Substitutes Emerges Mainly From Two Factors 1. 2.

Switching costs for customers to the substitute. Buyer willingness to search out for substitutes.

Also the threat of substitution may take four different forms, each of which we shall now discuss with reference to above factors. Product-for-product substitution The growing popularity of traditional non-store retailing base of catalog mail orders, direct mailers, telephone sales, door-to-door selling, supplemented by recent innovations like vending machines, in-home video tape infomercials, on-line CD ROM systems, tele-shopping and net shopping poses a threat to store retailers. These media do provide the customers with ease of shopping, some entertainment and even more information about range of products. But still it according to Indian consumer psyche it will take time to apply in Indian market. E-tailing transactions are less than a quarter of a percent of the total retail business in India. Even in western countries, it accounted only for 20% of the total retail spending. Substitution of need We take switching from one store or one type of store (e.g. small neighborhood retail outlet) to another (e.g. a big department store) as an example of this type of retailing. In this case, the buyers might be looking out for new experiences and might not mind the nominal switching costs (like longer distance to be covered)

Retailing will definitely remain, in one form or the other, as long as the manufacturers manufacture and consumers consume. Retailing does not seem to become extinct even in the future. The issue that remains to be addressed is just - what forms it keeps evolving into. One most prominent form visible today is e-tailing. 4. Bargaining Power of Suppliers Is High If 1.

There is high supplier concentration (i.e. few number of suppliers for the industry). In case of the retailing business, large numbers of manufacturers are competing for shelf space, resulting into low bargaining power of suppliers in this context.

CONSUMER PREFERENCE ON GARMENT

2.

There are other substitute products for sale to the industry. With large numbers of firms manufacturing similar goods or providing similar services, differentiation is what gives a competitive edge to some suppliers over others. But again due to spade of brands in the market bargaining power of suppliers is low even in this context. But in one specific case of exclusive distribution or dealership bargaining power of suppliers may be high.

3.

The industry is not an important customer of the supplier group. This is not at all the case here. Today, apart from probably factory outlets, retailing is the only interface between manufacturers and consumers. The suppliers' product is an important input to the buyer's business. Generally, this is not the case with individual suppliers, hence affecting their bargaining powers adversely.

4.

Switching costs from one supplier to another are high. This again is not the case in most of the categories of retail sales expect for the exclusive dealership of some firms.

5.

There is threat of forward integration by suppliers. This might be a threat in the long run. Signs are visible in the form of direct mailers, door-to-door selling, tele-shopping and etailing.

6.

Marketers across the FMCG category and the durable sector feel that the retailer is going to be a powerful influence on buyers. A primary reason for this is trust. Many families take goods on credit from the retailer and moreover, spoilt goods are taken back by him. With all these facilities thrown in, when he recommends a product, the consumer has no reason to doubt him.

5. Bargaining Power of Buyers Is High Bargaining Power of Buyers is high for the retailing industry because of flux of retailers of varying sizes and types within the reach of consumers. Hence because of nominal or no costs of switching suppliers (for the final consumers), these retailers are fighting for the fixed budget of consumers. The customer in the past decade has become the key focus. The marketing strategies revolve around him. From shopping, the trend has shifted to Shopping entertainment and In certain cases, where retailers are providing highly differentiated products or services to the buyers, the buyers have low bargaining powers e.g. Crossword in Ahmedabad.

4. COMPANY PROFILE OF “Adani group” 4.1 VISION OF THE GROUP

CONSUMER PREFERENCE ON GARMENT “To be a globally competitive, India focused MNC with leadership in trading, private infrastructure and select niche technologies and be committed to the delight of our customers and shareholders.” 4.2 BUSINESS AREAS 4.2.1 Global Trading • • •

Adani Export Limited Adani Wilmer Limited Adani Global Limited

4.2.2 Private Infrastructure • •

Adani Port Limited Gujarat Adani Port Limited

4.2.3 Niche Technologies • •

B2C India Limited iCall India Limited

4.3 CORPORATE OFFICE Adani Group “Adani House” Near Mithakali Circle, Navrangpura, Ahmedabad India – 380 009 Tel: + 91 79 6565555 / 5555555 Fax: + 91 79 6565500 / 5555500

CONSUMER PREFERENCE ON GARMENT

4.4 B2C INDIA LIMITED B2C India Limited is promoted with an intention to foray into retailing marketing business with an immediate objective of setting up a chain of retail outlets in line with its core competence of Trading and Infrastructure. This venture has a starting advantage of the trading and procuring strengths of Adani group. In a few months with the institutional thrust and support of Adani group B2C has created a multi locational retail store chain with 24 supermarkets & 4 hypermarkets 4.5 INTRODUCTION OF ADANI’S HYPERMARKET& SUPERMARKET Ahmedabad, since the 1990’s, witnessed a retail revolution that is fast catching up with the rest of the country. Leading the pack in the race for retail supremacy is Adani’s supermarket. It all began with Vahid brainchild, V. set up in 1990. Later, a company promoted by the Rs. 2000 crore Adani Group, B2C India Ltd, set up Adani’s Ravji supermarkets in Ahmedabad in July 2001. The Adani Group entered into retailing business, through the entity B2C India Ltd, with the takeover of Ahmedabad’s famous – “V Ravji Supermarket” as a business model. Seeing an opportunity in the retail market, Adani Group had signaled the arrival of corporate chain retail supermarkets in a field that earlier was family owned and run single outlets. The Adani Group’s core competence of global trading, infrastructure development and focus on niche technologies- essentially a service oriented intermediary between consumer and producerled Adani’s into retailing. Adani Group helped Vahid Ravji to realize his dream of reaching a wider audience and exposing them to the choice, quality and service of a big supermarket chain still bearing his name. They have been certified with ISO 9001 and with ISO 2000 for only ISO Certified retail chain At present, the Adani group has one fully operational “Adani’s hypermarket” located on 150 ft. ring road, near Indira circle in Ahmedabad

4.5.1 MISSION

CONSUMER PREFERENCE ON GARMENT To attain and maintain a position of leadership and market dominance in “Food & Grocery Selling” while leveraging our core strengths of sourcing & logistics. 4.5.2 VISION ‘To achieve national leadership in retailing business by smooth amalgamation of professional expertise and systems with a family like atmosphere interacting with the consumers.’

STRATEGIES FOLLOWED BY ADANI Strategies followed by Adani are as follows  Many store rather than big store in one place so they can capture the more market place and also satisfy the customer by providing the routine household products nearer to there place.  Maximize the profit from the manufacturer’s brand  Higher customer satisfaction by providing the better quality, higher convenience, extra ordinary Ambience, value addition and attractive promotion schemes.  Pursue new customer groups and entry into new geographical areas.  Expanding their business in particular one state e.g. Gujarat then nationally and then internationally.

CONSUMER PREFERENCE ON GARMENT

MARKETING MIX OF ADANI HYPERMAKET & SUPERMARKET Marketing mix is defined as the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market. Apart from the traditional ‘four Ps’, which are product, price, place and promotion, authors such as Booms and Bitner add the three extra Ps of people, physical evidence and process. They argue that the marketing mix of four Ps is not comprehensive enough. The major difference is argued to be the intangible element of human behavior, where quality and its control is of paramount importance. The main task of marketers in retail is to understand many of the complexities of the marketing mix in order to ensure they will be better prepared to plan, control and manage different type of retail operations. Retail managers have to control the aspects of the marketing mix, which have most bearing on the demand creation and satisfaction level of consumers.

It is to be noted that the decisions regarding all the 7 P’s discussed below are taken at the central warehouse situated at Mithakhali. PRODUCT A product is anything that can be offered to a market that may satisfy a need or a want. This means a combination of goods and services, which includes the store, the staff and the merchandise. In retailing the complete retail offer of location, price levels, merchandise, store layout or method of selling, brand name and service provided play a pivotal role in a firm’s existence and long-term success or survival. The shopper has to believe that the merchandise, or outlet, offers added value in order for it to be successful. Service In a hypermarket, the customers are expected to perform self-service by carrying their own purchased items. So considering this expectation that prevails in any supermarket, in Adani hypermarket also the customer performs self-service and is guided by the store staff, wherever required, whose roles are mentioned in the ‘people’ aspect of the marketing mix. Some of the stores provides the home delivery and also take the order on phone if the residence of the customers is nearer from the store. Merchandise Offered PRODUCT CATEGORIES 1. Drinks/Juices 2. Bakery Products

3. Breakfast 4. Jams & Pickles

CONSUMER PREFERENCE ON GARMENT 5. Tea & Coffee 6. Biscuits 7. Squashes/Syrups 8. Baking Products 9. Instant Food 10. Snacks 11. Confectionery 12. Dry Fruits/Mukhwaas 13. Spices 14. Dairy Products 15. Oil/Ghee 16. Noodles/Pastas 17. Dals/Pulses 18. Plastic Products 19. Detergents 20. Dental Care 21. Soaps 22. Shampoos 23. Baby Care 24. Hair Care 25. Lady Care 26. Home Remedies 27. Disposables 28. White goods 29. Apparels 30. Jewellery 31. Vegetables 32. Footwear 33. Cosmetics.

CONSUMER PREFERENCE ON GARMENT

PRICE As far as products sold in any Adani outlets are concerned, any branded products are sold at their Maximum Retail Price [MRP] on which they get some percentage of margin from the manufacturers. The purchase manager at the central warehouse decides this margin on a negotiation basis, with the manufacturer of the company whose product/s is to be purchased. Finally the goods of that company are purchased who offer them the best deal. Same is the case in Adani labeled commodity goods which are purchased from the producers at some price and are sorted, packed and are resold to the customers by adding some percentage of margin. The prices of those goods are set at par with the prices prevailing in other major Kiranas stores and supermarkets. Again the discounts offered on various products depend on the level of margins offered by the manufacturers out of which some percentage is passed on to the customers in the form of discounts. PLACE CHANNELS AND CHANNEL FLOW Adani follows the both type of supply chain structure limited as well as extended. A extended channel is where the manufacturer wholesaler and retailer provide a chain of facilitating service in order to sell the right product to the final consumer. In case of the perishable goods they follows the limited supply chain structure in which Adani store manager gives order directly to the producer and for all the other goods they follows the extended supply chain structure. A central warehouse controls all purchases of the products branded as well as groceries for all the outlets. Individual store would send their requirements to the central warehouse, which in turn disburse goods to them according to their requirements. This system would give an advantage in purchasing bulk items at very good rates and hence pass this advantage to customers. This activity of purchase is being handled at SKC [Stock keeping Center], all the other stores send their requisitions to this main store, and thus maintain their inward and outward entries with SKC.

CONSUMER PREFERENCE ON GARMENT Typical Supply chain at ADANI

Store 1

Supplier

SKC [Central Ware house]

Store 2

Store 3

Internal Movements When Necessary

In a typical inventory of any ADANI’s hypermarket, goods presently received, after checking them are received by handing over of an inward slip to the suppliers. At the same time any goods going out of the hypermarket, would go along with an outward slip. A regular stocktaking activity takes place in the hypermarket periodically. At that point, the sales associates are required to assist in the activity by taking the actual physical stock for their work arrears. They are supplied with a printed blank from with heads like the Item Code, Item Name, Rate, Quantity, wreck Number etc. for which they are supposed to note down for particular areas allotted to the for stock taking. After handing over this list/report to the manager’s desk, the report is then tailed with the stock as per the stock statement of the system. The sales associates are answerable to clarify discrepancies if any to the management. DISTRIBUTION Goods after being received from the supplier are then packed in various sizes, packages to cater to the retail requirements of customers in case of private label brands. Other brands products are dispatched to different stores as per their requirements. Stocks are also being internally transferred to other stores according to requirements of various outlets in times of shortages. DANI’s has daily business cycle by transferring goods mainly on daily basis. However this differs according to the category of the goods. In case of perishable items, manager can directly order to the local suppliers.

Customer

CONSUMER PREFERENCE ON GARMENT RETAIL LOGISTICS Retail logistic is the organized process of managing the flow of merchandise from the source of the supply to the customer – from the producer/manufacturer, wholesaler/intermediary through to the warehouse, transport to the retail units until the merchandise is sold and delivered to the customer. Adani’s store logistics system incorporates the following functions. Physical Movement of the goods The holding of these good in the stockholding points The holding of goods in quantities required to meet the demand of from the end consumer The management and administration of the process, which in modern complex distribution systems is a function in its own right PROMOTION The store has quantified promotion objectives taking into consideration the: Specified target audience; Main communication points; Responsibilities and tasks; Period times for promotions Thus the so-called SMART objectives are derived which will provide Specific, Measurable, Actionable, Realistic and Timed results. Before deciding and taking action on the objectives formed the following considerations are taken into account: 1. The full range of available promotion methods and out of them which one or a combination will be most suitable. 2. The probable overall budget to be allocated. 3. The existing competition of the company and the brand. 4. Evaluation of past promotional campaigns. 5. The customers and supplier’s attitude and behavior to the company and the brand. 6. Assumptions about what promotions are most effective. Advertising

CONSUMER PREFERENCE ON GARMENT The advertising media used for promotional purposes at present is only major newspapers like Times of India and Gujarat Samachar. As a designing of advertisements is concerned, they have their own in-house advertising agency named ‘Aashin’. Apart from the advertisements in the newspapers, insertions of these ads are also put in the newspapers, which are printed on high quality paper in four colours. The store’s advertising is an institutional one, which sells the store as a pleasing place to shop, which can be easily understood from their slogan, ‘Extra shopping pleasure at no extra cost’. No other media is being used presently, but considering the changes in the situation of the economy and the market place they may go in for Internet as one of the media for selling the merchandise they offer, online. But still e-shopping is a new concept and is in its budding phase in India, so they think that people will take more time to adjust to it and thus may think over it in the near future. SALES PROMOTION Currently they are giving the promotional scheme like 2 kg Sugar or Rasana worth Rs. 60/- on every purchase worth Rs. 500/-. Bapunagar store which they have recently acquired from the Radhe, they have given the sales promotion like on the purchase of Rs 500/- you will get the tow tickets of City Gold is free and on the purchase of Rs. 300/- one ticket is free of the City Gold theater. Before one month back they have given the sales promotion like on the purchase of Rs. 500/- customer will get either Nazarana Basmati Rice worth Rs. 60/- or Rasna worth Rs. 60 free. And on the purchase of worth Rs. 300/- customer will get the Year Fundoo Mug or Rasana worth Rs. 30 free. Another sales promotion scheme they had followed before one month back is customer will get the Assured Gift on the collection of 10 or more coupons. One coupon for every purchase worth Rs. 100/-. [*****Refer Annexure]

Discounts Offered No. 1

Product on which discount is offered Colgate total (150 gm)

Discount & Offers Only Rs. 49[MRP 51]

2

Godrej colour soft (hair colour)

Rs. 25 off

CONSUMER PREFERENCE ON GARMENT 3

Ashirvad Atta (5 kg)

1 kg Ashirvad Atta free

4

Palmolive talc

15% off.

5

Close- Up toothpaste red (150 gm)

Neslte Kit-Kat worth Rs.6 free

6

Oral-B tooth brush

25% discount

7

Palmolive shaving brush + shaving cream

15% off

8

Fa shaving cream

25% off

9

Palmolive shaving gel

Buy 1 get 1 free

10

Gillette get

15% off

11

Sunsilk sampoo (50 ml)

Lipton ice tea worth Rs. 20 free

12

Palmolive soap

Buy 2 get 1 free + 20% off

13

Nivea soap (75 gm)

Buy 3 get 1 free + 15% off

14

Harpic toilet cleaner (500 ml) triple action

15% off

15

Mr. White detergent (3 kg)

Mr. White soap worth Rs. 30 free

16

Surf Excel (1 kg)

10% off

17

Frooti green mango (500 ml)

200 ml frooti free

18

Mapro squash & syrup

25% off

19

Kissan ketchup / sauce (1 kg)

Lipton ice tea worth RS. 20 free

20

Tastybite Dhalmakhani (instaunt food)

Buy 1 get 1 free

21

Pickwick waffer (200 gm)

15% off

22

Priya Gold biscuit family pack

15% off

23

Sundrop superlite (5 lt. Jar)

Heritage rice 1 kg free

24

Sundrop Heart

Daawat Rice 500 gm free

25

Sundrop Nutrulite (5 lt. Jar)

Heritage Rice 1 kg free

26

Ching’s veg. Noodles (200 gm)

Buy 2 get 1 free

27

Smith & Jones (200 gm)

Buy 2 get 1 free

CONSUMER PREFERENCE ON GARMENT

28

Cadbury bournvita (500 gm) Refile pack

Cadbury perk worth RS. 5 free

29

Mapro Jam (500gm)

25% off

30

Purchase worth RS. 500

Get 2 kg’s Sugar or Rasana gift hamper worth RS. 60 free.

The percentage of discount offered also depends on the expiry date of the products purchased apart from the margins they get. For e.g., if the expiry date of any product purchased from the manufacturer is very near then the purchase manager of Adani demand more margins from them which is passed on to the customers and so on such products the percentage of discount would be more as compared to other products whose expiry date is quite away. PEOPLE NO OF EMPLOYEES & THEIR ROLE There are around 60 to 80 employees or more than that in each store which constitutes of both frontline and back stage staff. . Sales Girls &boys The roles of them are To arrange the products properly in the shelf and also keep them clean To arrange the products as per the expiry date To paste the Bar – code stickers on the respective products. To guide the customers whenever required and if necessary they also help the customers by carrying the basket and moving the trolley. On a rotation bases some of the sales girls have to make bills, handle cash, credit card or other forms of payments and hand over receipts and change. 2-3 wrecks are allotted to every salesgirl whose responsibility is to take care of the handling and ordering of the merchandise of those wrecks, which at the end is reported to the store manager. They are also responsible for any kind of theft by the customers.

CONSUMER PREFERENCE ON GARMENT

Manager The manager is responsible for all the floor activities of the store like Managing and monitoring the staff of the store To see the products are well arranged in the shelf and the window display is attractive To fax the stock requirements of the store to the central warehouse every night before closing the store and to order for the perishable goods from the local suppliers Interacting with the customers and handling their complaints, whenever required To discuss the accounting related issues with the accountant. To carry out the performance appraisals of the sales girls To give the on-the-job training to the salesgirls

CONSUMER PREFERENCE ON GARMENT Empowered for any kind of special displays. Assistant Manager In some of the stores there is the Assistant manager who helps manager in maintaining the floor activities. Security Guard The role of the security guard is To take care of the belongings of the customers by giving them a coin, which the customers have to return back to him after shopping To give the basket to the customers The all security guards are on contract based. Helpers The role of the helpers is to Verify the stock received and keep the stock to be displayed in front of the respective wrecks and the extra stock in the storeroom. Helping the customer by lifting the carry bags to their vehicle. Data Entry Operators The role of the data entry operators in the Adani store is to enter the daily transaction of outflows and inflows. TRAINING Training is provided at store level for the salesgirls. They are given training by some of the experience salesgirls and by the manager in areas of product knowledge, company procedures and more importantly how to deal with customers to ensure maximum satisfaction. The training phase depends on capabilities of the sales girls. For the store managers the training is provided at store level as well as class room training. MOTIVATION

CONSUMER PREFERENCE ON GARMENT The staffs are motivated by the store manager. The store manager arranges for a small treat for staff of the store bye offering them ice cream, juice apart from regular cup-of tea. If the salesgirls do something extra apart from their regular work then they will be rewarded. The staff members are given a Diwali Bonus. There is a contest for the best person of the store who will be rewarded. There is also another contest for the best store, which will receive a trophy and certificate of appraisal and dinner for the entire staff of that store. PHYSICAL EVIDENCE SIGNAGE Internal: As far as the store’s internal signage are concerned, to promote the schemes offered, various pamphlets are pasted on the walls, banners are hanged which attract the attention of the customers. Also danglers of discounts offered on various products are hanged above and on the respective wrecks. External: There is a signboard of Adani’s hypermarket in front of the building indicating that there is an Adani outlet here, which can be seen from some distance away. Also banners are displayed at the crossroads bit away from the store to direct the customers towards the store. DRESS CODE Salesgirls: - Blue apron with a badge of Adani on left. Each sales girl has her own ID card attached to a string which they wear daily depicting their identity as the sales girls of that store. Helpers: - Grey colour shirt and trouser. Manager/Assistant/Accountant: - Any kind of formal dress. PROCESS BRIEF EXPLANATION OF THE PROCESS

CONSUMER PREFERENCE ON GARMENT There is either two or one way to enter the store. But there is no fixed way to enter or exit the store, i.e., the customers can enter or exit from any side they prefer. If we look into the process as to how a customer enters the store, visit it and at last exits, the normal steps a particular customer has to follow are summarized below: There is some parking space in front of the store where the customer can park his/her vehicle. A security guard sits in front of the store at the entrance wherein the customer has to keep his/her belongings before entering in the store. He will give the customer a plastic coin bearing a number, which the customer has to keep with him/her until he/she finishes shopping. As the customer enters the store he/she will find a counter on either side of the one or two ways. On the one side counter a person is found making entries in the computer regarding the inventories received and on the another side counter a sales girl is found preparing bills of the customers who have already shopped, in short it is a billing counter. Say if we consider that the customer enters the store he/ she will find various product categories arranged in a sequence, wherein first comes drinks/juices followed by bakery products, breakfast, tea & coffee, biscuits and so on. It is seen to it that the sequence of the product categories is constant in any Adani outlet as far as possible but may differ depending on the store layout of each. One thing taken care of is that certain product categories that are altogether used for a different purpose are kept apart from each other. For e.g., any food products category is kept totally away from the categories like detergents, bathing soaps, shampoos, lady care, etc. The wrecks are arranged in a circular plan wherein the necessary items of like that of grocery are displayed in the wrecks in the back end of the store thereby making the customer walk through every part of the store. The customer moves further the display of tea & coffee, biscuits, grocery items, etc. starts and as he/she moves to in each of the store they find in-store merchandise to keep extra stocks. Here the customer finds the helpers keeping the extra stock in that small room. As the customer moves further he/she will find the product categories displayed like that of detergents, lady care, baby care, dental care, home remedies, etc. and thus by taking this circular move he/she again reaches to those steps from where he/she came to the back end and now moves again to the front end.

CONSUMER PREFERENCE ON GARMENT As the customer visits the store in the front they found a refrigerator is kept to chill some products like butter, cheese, chocolates, juices, cold drinks, etc. Further the customer will find the categories like disposables, jams & pickles, dry fruits, instant food, etc. Here in between a small steel wreck is displayed wherein only wafers of various brands like Ruffles Lays, Balaji, etc. are kept. In his/her whole visit of the store the customer comes across the sales girls, who are found near every wreck and are ready to guide, wherever required. They help the customer by bringing the basket/trolley if they see him/her carrying various products in hands and also help in carrying some of the heavy products like Ghee & Oil tins to the billing counter, which could not be easily carried by the customer while shopping for other items. At last the customer reaches the billing counter. At the counter the sales girl in charge of that counter on that particular day first of all empties all the products purchased by the customer, from the basket and then scans them one by one through a hand barcode scanner. This automatically enters the relevant data of the products purchased in the computer, which includes the name of the product purchased, product code, number of items of each product, amount of each product and in the end the total amount to be paid by the customer. By the time the sales girl scans the products, a helper standing near the counter goes on keeping the products scanned in the carry bag Then as the customer pays the amount the sales girl types the amount received and then automatically the exchange amount is displayed on the screen, if there is any, which the sales girl returns back to the customer. Payment can also be done via Visa & Credit cards. The store accepts all the major cards. After all the data is fed into the computer bill is printed. The same bill is printed twice in one page, which the sales girl tears and makes two parts out of which one is handed over to the customer and the other one is kept with the sales girl to make further entries on the total of sales on that particular day. After the billing transaction is over the sales girl says ‘Thank You’ to the customer with a smiling face. Here again the helper if required helps in carrying the bag/s near the customer’s vehicle. At this stage the customer moves out of the store, probably from the way near the billing counter where he/she has to return the coin back to the customers to take their belongings.

CONSUMER PREFERENCE ON GARMENT

Flow of the Process Entry of the customer

Parking of the vehicle and collection of the coin by giving the belongings to the security guard sitting outside

Entry inside the store

Selection of the products by visiting the store

Going to the billing counter wherein the customer pays through cash or by credit card

CONSUMER PREFERENCE ON GARMENT

Exit from the store

Returning back the coin to the security guard to collect the belongings

Going to the place where the vehicle is parked

SWOT ANALYSIS OF “ADANI HYPERMARKET” STRENGTH     

Adani hypermarket has a large and dedicated customer base. It has Price advantage over its competitors for Branded goods and commodities. It has a wide product range catering to all types of customer needs. It has located all its Outlets at strategically convenient points for its customers giving it the locational advantage. The corner stones of Adani hypermarket’s operations are: Availability, Accessibility, Affordability, Quality, Reliability and Novelty.

WEAKNESSES  

Currently they have opened their retail chain in one state [Gujarat] only. Only focusing on branded product, may fail to attract the customer base that are not brand conscious.

OPPORTUNITIES   

It can encash on the Brand and goodwill it enjoys today to expand throughout the state and then country and then Global It can leverage on pricing with expansion by taking advantage of volume purchases. It can cater to growing middle-class/ upper middle class customers where purchasing habits have shifted to one stop shopping.

CONSUMER PREFERENCE ON GARMENT 

With its network it can add a wide product range including fast foods to the current product range to give a wider choice to the customers.

THREATS  



It has to be on the watch as large corporate may enter / are entering the retail arena. It could also face increased competition from the existing smaller chains and local stores. Continuous support of government’s policy of globalization may attract international player heavily to rock the Indian market.

5. RETAILING “Retailing consists of those business activities, which are involved, in the sale of goods or services to consumers for their personal, family or household use.” It is the final stage in the distribution process for goods and services from manufacturers to final consumers

Figure 1 A Typical Distribution Chain Retailing involves Interpreting needs of the consumers Developing good assortments of merchandise Presenting them in an effective manner so that consumers find it easy and attractive to buy. Retailing differs from marketing in the sense that it refers to only those activities, which are related to marketing goods and/or services to final consumers for personal, family or household use. Whereas marketing, according to American Marketing Association, refers to "the process of planning and executing the conception, pricing,

CONSUMER PREFERENCE ON GARMENT promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives." Organizational buyers purchase in order to perform a task or sell a product effectively, efficiently and at a profit. They could be industrial buyers or intermediary buyers. Industrial buyers are those who purchase goods and services to be used in or to aid manufacturing process. Intermediary buyers are those (i.e. wholesalers and retailers) who buy merchandise for resale. Retailers include street vendors, local supermarkets, department stores, restaurants, hotels, barbershops, airlines and even bike and car showrooms. Still retailing may or may not involve the use of a physical location. Mail and telephone orders, direct selling to consumers in their homes and offices and vending machines - all fall within the purview of retailing. In addition to it, retailing may or may not involve a "retailer." Manufacturers, importers, non-profit firms and wholesalers are acting as retailers when they sell goods and/or services to final consumers. atever the form of retailing, a retail marketing strategy defines the execution of the marketing process and facilitation of customer satisfaction. This retail marketing strategy involves selecting a retail target market (i.e. the carefully/exactly identified group of final consumers that a retailer seeks to satisfy) and then implementing the corresponding retail marketing mix (i.e. a combination of product, price, promotion and distribution strategies that will satisfy the retail target market). Retailing differs from marketing in the sense that it refers to only those activities, which are related to marketing goods and/or services to final consumers for personal, family or household use. Whereas marketing, according to American Marketing Association, refers to "the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfies individual and organizational objectives." Figure 2 depicts consumer service as the crux of the whole activity. The implementation of such a retail strategy mix benefits consumers and producers and yields economic utility. Product BrandingPrice Packaging Cost of goods Product DesignBusiness Expenses Assortment Gross Margin Services Profit Promotion Distribution Advertising Logistics Personal Selling Store Location Sales Promotion Site Evaluation Public Relations Transportation Visual Storage of goods Merchandising Figure 2 Retail Marketing Mix

CONSUMER PREFERENCE ON GARMENT

The implementation of such a retail strategy mix benefits consumers and producers and yields economic utility.

CONSUMER PREFERENCE ON GARMENT

5.1 BENEFITS OF RETAILING The implementation of such a retail marketing strategy yields benefits for consumers, manufacturers and wholesalers and creates economic utility as described by the following figure.

Figure 3 Benefits of Retailing The first point under retailing benefits for customers, bulk breaking refers to the act of retailers of buying goods in large quantities and then breaking them into smaller sizes for their individual customers. As a result purchases become convenient for customers - in terms of quantity bought as well as expenditures made. The assorting function is nothing but evaluating all the different products available and offering to the target the optimum array of products from which to choose. The storing function performed by the retailers relieves customers of the task of anticipating their desires too far in advance of their needs as the retailers keep goods in inventory until customers are willing to buy and use them. Further, retailers help manufacturers smoothen the production cycle by placing orders for peak demands well in advance and by managing inventory even on behalf of the manufacturer. They create economic utility for consumers by providing the products in the form and at the place and time desired by the consumer.

CONSUMER PREFERENCE ON GARMENT 5.3 Why Study Retailing So far, it has been seen that retailing is a vital and involuntary action performed by the living structure of the market economy (as opposed to the case in a barter economy). In a barter economy, barter transactions take place between consumers themselves. Consumers interact directly whereas in a centralized market economy, transactions taking place at a larger scale (both in terms of volume and variety) necessitate an interface between the manufacturers and final consumers. Hence we reinforce the fact that retailing is not a new deal. This industry is extant as an interface between production and consumption, from times immemorial, benefiting us - consumers or producers in the various ways discussed above. Our study concentrates on organized retailing, which consists of shopping malls, super markets, chain stores, and like. In the last few years a shift has occurred in India from individual retail outlets owned separately and managed distinctively to professionally managed retailing. This is an industry, which has now started attracting better investments and talent. Things changed primarily because of the rising expectations of Indian consumers and the corporates responding quickly. Today, the industry (in India) seems to be functioning somewhere between the accelerated development and maturity stages, with high growth rates, intense competition and moderate profitability.

5.4 RETAIL LIFE CYCLE

CONSUMER PREFERENCE ON GARMENT

Population size and age distribution determine what the retailers must be offering and to which segment of the market, depending upon their goals. Further, factors like average life expectancy, birth rate, marriage age, average number of children, family life cycle define the requirements of the market and the firms (retailers) should act accordingly. Applying the traditional family life cycle to retailers, thereby figuring out the relevance of each stage in cycle for retailing, we have the following table: Traditional Family Life Cycle to Retailing Stage in Cycle Characteristics Relevance of Retailing Independent. Young. EarlyClothing. Car. Travel. Café. Bachelor stage of career and earnings Entertainment Two incomes. RelativeFurnishing Apartment, Travel. Newly Married independence. Present andClothing. Durables. Appeal to future oriented togetherness Youngest child under 6 years.Goods and services geared to One / One and a half incomes.child. Family oriented items. Full Nest 1 Limited independence. FuturePracticality of items and appeal to oriented economy Savings, Home, Education. Youngest child under 6 years. Children oriented items. Family Full Nest 2 One and a half to two incomes. vacations. Appeal to comfort and Dependent.. Future oriented luxuries Youngest child at home but Education. Expensive durables for independent. High incomechildren. Replacement and Full Nest 3 level. Independent. Thoughts ofimprovement of parents' durables. retirement Appeal to comfort and luxuries. No children at home.Retirement home. Travel. Empty Nest 1 Independent. Good income.Entertainment. Luxuries. Appeal to Thoughts of retirement and self self gratification Travel , Recreation, Health related Retirement. Limited income. Empty Nest 2 items. Little interest in luxury. Present oriented Appeal to comfort Only one spouse alive. GoodImmersion in jobs and friends. Sole Survivor 1 income. Employed. PresentTravel. Entertainment. Clothing oriented Health Travel. Entertainment Health Only one spouse alive. Limited Sole Survivor 2 related items. Appeal to economy income Retired. and social activity

CONSUMER PREFERENCE ON GARMENT

5.5 CLASSIFICATION OF RETAILING Retailing is not bound or restricted by product categories, any consumer products manufactured by a company can be retailed and available in the market can be retailed ranging from food to books to toys etc Entire retailing market in India can be divided into traditional retail stores and modern retail stores. While traditional retail stores form the unorganized segment of the market modern stores are part of organized sector. Organized retail market can be further categorized in four different ways: 5.5.1 Based On Form of Ownership Based on the form of ownership, various types of retailers comprising the retailing industry are described below: An Unaffiliated or Independent The retailer is one who owns and operates only one retail outlet. A family mostly owns it with high dependence on the owner, thus affecting long run success and employee morale. He is supposed to have a friendly personalized image and his offering reflects his own tastes and preferences and to some extent those of his regular customers. Kirana shops are very good examples of such retailers. A Chain retailer or Corporate A chain retailer or corporate retail chain owns and operates multiple retail outlets (store units) under common ownership. Most chains have well defined management philosophies, which tend to be solid overall strategies. Consistent strategies with reference to store hours, product assortment, prices, sales personal, promotion and other policies must be maintained throughout all branches in order to project a particular image of the chain. This calls for centralized decision making which in turn result in difficulties for individual units in adapting to local needs of the target markets. There also exist associations of independent retailers, which are formed in order to compete more effectively with corporate chain stores. They enjoy the benefits of corporate chain while still maintaining status of individual owners. These associations could be formed with other retailers (known as co-operative chains), with sponsorship by a wholesaler (know as voluntary chains) rather than by the retailer themselves or by franchise agreements sponsored by manufacturers or distributors (known as dealers) or by service firms (known as franchisees).

CONSUMER PREFERENCE ON GARMENT

A Franchise System A franchise system results from contractual agreement between a franchiser and a retail franchisee thus allowing the franchisee to conduct a given form of business under an established name as per a particular business format in return for an initial fee and a percentage of monthly gross sales as royalty. It helps franchise to create national or international presence quickly and with lower investments (than required by the franchiser alone for creating such a presence independently). Moreover, franchisees, that are owners and not employees, have a greater incentive to work hard than the owners (or caretakers) of retail units in other forms of retail chain. Also to their advantage, they obtain SOPs and management skill from the franchise. Further, they have support from co-representative to spot and solve any problems. To maintain the brand image, uniformity has to be maintained throughout the franchisee network. So the franchisees have to meet some specified provisions of franchise agreements. These, if not met, give the right to the franchise to avoid the individual franchisee. It is for this reason that franchisees are seeking more and more independence from franchise rules and regulations. A Leased Department (LD) A Leased Department (LD) is a department in a retail store that is rented to an outside party. If the existing store is well known, with a large number of steady customers, it becomes easier for the LD to generate immediate sales. It operates in categories on the fringe of the store's major product lines and it must be taken care that it is not a parasite and does not live off the traffic generated by other parts of the store. Thus goods or services lines that it can offer may be restricted. Apart from this, various requirements are imposed to ensure overall consistency and coordination. Vertical Marketing System (VMS) Vertical Marketing System (VMS) comprises all the levels of business along a channel of distribution. In an independent VMS, there are three levels of independently owned businesses manufacturers, wholesalers and retailers. Such a system is most beneficial if manufacturers and/or retailers are small, intensive distribution is sought and customers are widely distributed. In a partially integrated VMS, two independently owned businesses (most likely a manufacturer and retailer) along a channel perform all production and distribution functions without the aid of the third party i.e., wholesaler. This type of system is most appropriate if manufacturers and/or retailers are large, selective or exclusive distribution is sought and existing wholesalers are too expensive or unavailable.

CONSUMER PREFERENCE ON GARMENT Through a fully integrated VMS, a single firm performs all production and distribution functions without the aid of any other firm. A fully integrated VMS enables a firm to have total control over its strategy, to have direct contact with final consumers, to have higher retail markups without raising prices (by eliminating channel members), to be self-sufficient and not rely on others and to have exclusivity over the goods and services offered. Consumer Co-operatives Consumer Co-operatives are retail firms owned by their respective customer members. In such cooperative arrangements, groups of consumers invest in the cooperative, receive stock certificates, elect officers, manage operations and share the profits or savings that accrue. Consumer Cooperatives come into existence with the purpose (of some consumers) of operating stores as well or better than traditional retailers, of getting control over prices, of saving money by substituting their own labor or of getting access to healthful, environmentally safe plots, not available from traditional stores. 5.5.2 Based On Location, Target Market, Price, Offerings & Customer Services & Competitors Challenges There are several types of retailers whom we can divide based on location, target market, price, offerings, and customer services and competitors challenges. The variety store It contains a wide variety and sells a wide assortment in inexpensive and popularly priced goods and services. Neither they are departmental stores nor they carry full product lines. This type mainly focuses on middle and lower class niche markets and the location can be a shopping center or an isolated store. Here the prices are average prices and the quality is below average and average. There is a wide range of offerings but customer service is limited. These types of stores face a stiff competition from specialty stores and discounters. Examples could be Food World and the Trinetra supermarket chain. The specialty store It concentrates on selling one goods or service line. That is the location may be a business district, or shopping center. Concentrates on selective market segments with very narrow width, extensive depth, and average to good quality. Generally the prices are fixed at above average. The offerings are like apparel and accessories, toys, furniture etc. Extensive sales force, knowledgeable sales personnel, good customer service policies are the main assets of these stores. Competition will be determined according to the depth of assortment and size of the store. Examples could be Walden and Odyssey at Hyderabad. The retail catalog showroom

CONSUMER PREFERENCE ON GARMENT It helps consumers select merchandise from catalogue and shop in a warehousestyle setting. It is located at shopping center or isolated store. And the targeted group is middle and lower middle class. Maintains average to good quality goods, with competitive prices. The offerings are electronics, house wares, gifts and watches. Here they try to avoid clothing and other high fashion items. These are mostly self-service based and face a difficult time reacting to both price rises by suppliers and price cuts by competitors because catalogs have to be printed in advance in order to carry out business. Examples here could be tiles shops, sanitary ware stores etc. Off-Price chain stores They are set up at business district, suburban shopping strip or can be an isolated store. The targeted group is price conscious customers. The assortment is with moderate width but poor depth; and average to good quality goods with low continuity prices. The offerings are apparel and accessories, footwear, linen, fabrics, cosmetic, house wares. They maintain limited sales force, no gift-wrapping, and extra charge for alterations. The challenges are from other institutions formats due to discontinuity of merchandise and insufficient customer service for some upscale shoppers. Examples here could be stores in towns and city suburb stores. Factory outlets They are mainly manufacturer-owned and sell the manufacturer's closeouts, discontinued merchandise, cancelled orders or in-season, first-quality merchandise. The location is out-of-the way site or discount mail. Choosy and price conscious customers are the target group. This has moderate width, poor depth, and a low continuity. The prices are also very low. Any factory or firm items will come under this category based on self-service. Competitors are specialty and department stores. These stores face challenges mainly from the manufacturer's key customers. Examples here could be Lee, Levis and other branded garment manufacturer's factory outlets. A Flea market It has many retail vendors offering a range of products at discount prices in plain surroundings. The location is an isolated site, racetrack, arena, parking lot, and stadiums. The customers are lower class and the assortment is extensive width, poor depth, variable quality, low continuity, with very low prices because the target group is low class. The products are antiques, knick-knacks, used merchandise, new clothing, cosmetics, watches, consumer electronics, hardware and gift items, self-service oriented and hardly any competitors or challenges

CONSUMER PREFERENCE ON GARMENT

The Membership club It is a club of consumers, which straddles the line between wholesaling and retailing. It is an isolated store or is located in secondary sites like industrial parks. The targeted groups are price conscious consumers who are the members of the club. This is with moderate width, poor depth and low continuity with low prices. The offerings are general merchandise (appliances, consumer electronics house wares, apparels), food and sundries (health and beauty aides, tobacco, liquor and candy). They manage with limited sales force. The challenges are the limited size of final consumer market segment. It is difficult to allocate efforts between business and final consumer accounts. 5.5.3 On the Basis the Area Covered By Various Stores Based on the area covered by the store we can categorize retail stores as follow Neighborhood stores They have an area in the range of 100-500 sq. ft. and are most common of all; these are present everywhere in every locality. These shops keep items pertaining to daily use ranging from food and grocery to stationery etc. High Street stores They have an area ranging between 300-1,000 sq. ft. These stores are generally specialty stores keeping only particular product category Small departmental stores They have area in the range of 500-2000 sq. ft. and these stores generally keep grocery and other daily use items Specialty stores They have an area in the range of 5,000-50,000 sq. ft. and these keep items pertaining to only one particular product category. Shopping malls They come at the top of this retail pyramid and it keeps products ranging all the product categories.

CONSUMER PREFERENCE ON GARMENT

5.5.4 On The Basis Of the Products Retailed By Various Stores On the basis of product retailed we can categorize stores into various types. In fact the categorization can be as vast as the number of product categories but taking into account the importance of the product category we can divide these retail stores into following types: Food retailing stores Apparel retailing stores Pharmaceutical retailing stores Books, music and life-style / entertainment retailing stores Fuel retailing stores Electronic goods retail stores Photo products and services retail stores House furnishing retail stores Food retailing stores can be further subdivided into fast food retailing stores, other fresh foods stores and groceries stores and apparel stores can be sub-categorized into women apparel, men apparel and children wear stores. Similarly we can do subcategorization in accordance with product categories and target segment. 5.5.5 On The Basis Of The Ownership Arrangement And Product Categories On the basis of ownership arrangement and product category categorization of retail outlets can be done in following manner: Departmental stores They are retail outlets that offer a number of products and a number of brands under one roof. That is the entire store is divided in to a number of departments with each department offering one category of products. These stores offer everything except grocery products. Super Market These offer products related to grocery and other food categories.

CONSUMER PREFERENCE ON GARMENT

Consumer Durable Stores It can be sub categorized into two: one Electronic Goods stores and Book and Music Stores Franchisee Stores It can be categorized into following types: Apparel stores Foot Wear stores Gifts and cards Stores Watches Stores Jewellery stores 5.5.6 On The Basis Of Readiness For Riding The Expected Retail Boom The organized sector of retailing can also be categorized on the basis of their readiness for off take to participate in the boom into three types: Ready to Go Those retail categories, which have all inputs in place and all development for the sector to take off has taken place. Shape and Adapt Those retail categories, which require development in logistics, cold storage facilities and some development in sourcing arrangement.

CONSUMER PREFERENCE ON GARMENT Wait and Watch These are the retail categories, which are waiting for the regulatory permission to take off. Ready To Go Men's apparel Dry Grocery Electronics / Consumer Durables

Shape and Adapt Women's apparel Fresh Grocery Fast Food

Wait and Watch Liquor Stores Fuel retail stores Pharmacy Stores

Life Style Products 5.6 11 WAYS TO MAKE DIFFERENCE FOR RETAILERS The following highlights the areas where retailer finds a ways to make difference – increasing growth and profitability in the face of intensifying competition and more discerning customers.

1. Raise net margin through strategic sourcing 2. Boost short term revenues category-by-category 3. Convert planning system investment in to profit 4. Maximize returns from low label 5. Drive brand for mutual benefit 6. Increase space productivity through store clustering 7. Target on-shelf availability to cure multiple sins 8. Build loyalty amongst high value customers 9. Adopt factory gate pricing for both efficiency and effectiveness 10. Prioritise Goble expansions 11. Focus on core skills and capabilities

CONSUMER PREFERENCE ON GARMENT

5.6.1 Raise Net Margins through Strategic Sourcing A “One-size-fits-all” approach to dealing with your suppliers is unlikely to get the best out of them, or create competitive advantage for you. Driven by the customer, each product/market segment requires different relationships with supplier.  Price-focused, or multi-dimensional criteria for supplier selection, e.g. product quality and innovation  Responsive or just cost-efficient supply-chains  Measures and incentives tailored to the supplier role. Strategic suppliers need encouragement to invest in innovation for longer-term growth. A low-cost strategy may be more appropriate for commodity suppliers. Strategic sourcing explores both avenues of improvement [whether efficiency or effectiveness- related]. Retailer margin improvements from 3% to 5% for food categories, from 4% to 7% for general merchandise, and more for clothing and fashion categories [including lower markdowns] are possible. Provided the relationship is structured appropriately, these benefits are not at the expense of quality of service or responsiveness.

5.6.2

Boost Short-Term Revenues Category-By-Category

Additional sales of 2%-5% are achievable in the short-term through a better understanding of the needs of key customer segments and the competitive environment of each. Even more is possible when this process is sustained through increasing levels of sophistication. Category management can require a slavish adoption of process-intensive techniques. We find that a serious of pragmatic actions is more effective at driving sales and profit.  Assortment tailored to key customer segments  Pricing reflecting competition and customer buying criteria o Entry-level o Space allocation by price point  Visual merchandising which stimulates rates of sale and reflects customer behavior.  Selective promotions and markdowns which suit both customer and retailer needs.

CONSUMER PREFERENCE ON GARMENT

Achieving these improvements requires close working between buying and merchandising departments and store personnel. This, in itself, forms a strong platform for increased sophistication and further improvements. 5.6.3

Convert Planning Systems Investments Into Profits

Talented staff creates value when focused on customers, product innovation and competitive differentiation, rather than mundane activities. Supply-chain skills are better applied to improved forecasting and closer supplier integration, rather than to firefighting and delivery glitches. Merchandise systems make a difference when they improve planning and replenishment decisions as well as transactions. Systems investments which neglect one of these typically fail to deliver bottom-line-results. By working on the effectiveness of a handful of critical decisions within the 40 to 50 decisions which make up the end-to-end buying and replenishment process. Small interventions can yield disproportionate improvements in growth and profitability. As a bonus, improving the effectiveness of critical decisions stimulates processes and behaviors to self-correct around them. As in many other areas, 80% of the benefits derive form 20% of investment. A business objective-driven approach, coupled with an understanding of the potential of information technology, ensures investments are commensurate with financial returns and not a blank cheque. Benefits include faster and more effective range evolution, enhanced customer service and lower supply-chain costs through stock reduction and operating savings. 5.6.4

Maximize Returns From Own Label

Retailers who innovate create greater shareholder value, particularly from own-label where they can capture and retain that value. Growth and profitability depends on performance at each stage of the own-label product development process. One weak link in the chain and benefits might be hard to realize. Yet many retailers lack transparency of performance at each stage. This level of understanding is necessary not just to enable process improvements, but also to configure the systems investments which drive and support process change. The benefits are greater speed-to-market, higher ‘hit-rates’ [e.g. twice as many successes from 30% fewer products launched], lower development costs [improvements of 100% or more are not uncommon] and reduced product costs [typically 5-15%].

CONSUMER PREFERENCE ON GARMENT

5.6.5

Drive Brands For Mutual Benefit

Retailers are faced with the growing power of branded suppliers and their options to maximize revenue and minimize costs from brands are more restricted than from own labels, Supplier portfolio optimization [SPO] is a proven methodology that alights the retailer’s needs with the branded supplier’s objectives and capabilities for mutual benefit.  Understand the dynamics of the market and the performance of the branded suppliers versus other brands and own-label.  Develop alternative retail brand-mix strategies for allocating space to different brands to maximize shelf profitability.  Prepare strategies for the retailer/supplier negotiation process o Win/win strategies:  Growth for both retailer and improved retailer margins.  Long-term partnership scenarios to encourage collaboration  Implement agreements and monitor results; continuously refine. SPO is applicable to both food and non-food retailers. The financial benefit or SPO can be net-profit improvements form 2% to 4% for food categories, and 3% to 6% for home and fashion categories, in addition to higher revenue growth for both the parties.

5.6.6 Increase Space Productivity through Store Clustering The benefits of tailoring the catalogue and other marketing variables to match variations in local customer and competitive profile are intuitively obvious. Yet, many retailers have been disappointed with their attempts at store clustering, having become mired in complexity. The art and science of successful clustering lies in identifying two or three key variables which differentiate store performance and using them to crate distinct store groupings, around which concrete actions can be taken:  Refining the existing product allocation process with pragmatic clustering ensures that the right product is merchandised in the right store, thus satisfying unfulfilled demand

CONSUMER PREFERENCE ON GARMENT  Redesigning in-store layouts to match the local customer profile emphasizes the appropriate product for that cluster.  Tailoring local promotions and window-line activity ensures that spend on these activities is optimized, whilst attracting new customers. The creation of distinctive clusters requires sophisticated statistical analysis, yet success depends on its simplicity. It is important to balance analytical insights with the qualitative input of store managers, marketing and merchandisers. Benefits in the region of 4% to 6% increase in sales and profit are possible. 5.6.7

Target On-Shelf Availability To Cure Multiple Sins

Consumer are getting increasingly frustrated, retailer are losing 2% to 5% of their sales, with individual manufacturers even more, because of poor product availability. Longer-term, poor product availability can undermine customer loyalty and undermine the retailer’s brand image. Retailers are largely in control of their own destiny. Roughly 70% of the problem is within the retailer’s own supply-chain. However, availability touches on every aspect of the retailer’s supply chain and its relationship with suppliers – there is rarely one simple answer and an 80/20 approach is needed:  Accurate measurement of true levels of availability weighted by the importance of the item in question based on rate of sales and overall volume.  Foot cause analysis to identify high potential areas and priorities improvement actions  Setting of availability targets by category/product type based on customer service targets and cost considerations  A systematic programme to improve planning and execution both centrally and instore: o Promotions management o New product introduction and deletions o Replenishment policies and practices  Commissioning systems [planning, EPOs, etc.] to drive/support process change Availability improvements of up to 12% can be achieved, translating into 2-5% increase in sales depending on the category. 5.6.8

Build Loyalty Amongst High-Value Customers

CONSUMER PREFERENCE ON GARMENT Market share gains and increased operating profits, return on capital and total shareholder returns are the rewards for retailers with loyal customers, particularly when those customers are high spenders on high margin products. The key is to convert customers from brand awareness to true brand loyalty.  Accurate segmentation to better understand buying criteria, particularly or high value customers.  More targeted propositions with ‘model’ customer in mind  Consistent design and optimization of the customer experience [touch points etc,]  Systematic processes to deliver consistently on the promise  Training and systems investments that drive continuous performance improvement A high-value customer is worth between 10-20 times an average one to the retailer. The goal is to capture high-value customers before your competitor does. The prize is market leadership and superior margins and/or growth – think Wal-Mart, Tesco, or the “new generation” of New Look, Zara, and others. 5.6.9 Adopt Factory-Gate Pricing For both Efficiency And Effectiveness Challenging supplier to quote factory-gate rather than final cost-prices is becoming increasingly popular. It provides an opportunity for the retailer to optimize inbound logistics. More importantly, it’s the next step towards logical conclusion of full cost transparency. Trough an understanding of factory inbound, as well as outbound costs/prices, and a break-down of fixed and variable supplier costs, retailers can make more strategic decisions about their supply-base:  What is the marginal benefit of concentrating supply with fewer suppliers?  How can we reduce our suppliers’ costs-to-serve?  How do we increase a supplier’s capacity utilization and what would be the effect on average costs?  How do commodity raw material price changes affect supplier cost?  What investments would be necessary for the supplier to grow its business with us? Retailing is following a path that other industries have already trodden. Cost transparency in the automotive industry has driven supplier consolidation, incentives suppliers to invest strategically, re-allocated responsibilities for product development

CONSUMER PREFERENCE ON GARMENT and delivery, and established relationships based on objective measurement of true performance. The same path is inevitable in retail. Retailers who are quick adopt and work with suppliers will gain edge on their competition. 5.6.10 Prioritize Global Expansion There does not appear to be easily transportable winning format or means of entry for retailers investing in new markets. Two out of three retailers fail to meet their initial targets when entering other countries. A.T.Kearney’s Global retail index helps retailers priorities where to expand and how to do it successful:  Identify target countries  Assess the environment and define the value proposition  Decide on the optimal timing and means of entry  Tailor the format, supply-chain and supply base  Prototype and roll-out Retailer who appropriately time entry and tailor local operations are twice as fast to break-even. 5.6.11 Focus On Core Skills And Capabilities While there is a strong tradition of reliance on in-house teams, progress towards greater outsourcing is gaining momentum for the mutual benefit of both customers and retailers. Any outsourcing decision depends on the economic logic of the proposition. Do outsourcing specialists; have the scale and/or skill to deliver lower costs? Do they have the expertise to create future commercial advantage more reliably than in-house teams? Outsourcers commit the investment to build stable platforms out of fragmented legacy system, on which leading edge, integrated applications with explicit business benefits are built. In addition to lowing cost, benefits include:  Higher sales and product availability  Flexibility to respond quickly to market changes  Cash injections to fund EPOS and other system upgrades

CONSUMER PREFERENCE ON GARMENT Choice of partners, the process of selection, and ongoing performance measurement, are critical.

10. Stage and roles in the product development process

CONSUMER PREFERENCE ON GARMENT

SUPPLIERS

IDEA GENERATION

PROJECT BRIEF

SAMPLES BUYINGTEAM

DEVELOPMENT TEAM RANGE PALNNING

PRODUCTION SAMPLES

CONSUMER PANEL

PACKAGING

CONSUMER PREFERENCE ON GARMENT

5.7 GUIDELINE FOR ESTABLISHING A NEW RETAIL BUSINESS In a bid to provide a guideline to those who might be considering starting a new retail business, we present a checklist to be followed by them: 5.7.1 Self-Assessment And Business Choice Evaluate your strengths and weaknesses vis-à-vis your target segment. Answer the questions: Why should you be in business for yourself? Why open a new business rather than acquire an existing one or become a member of a franchise chain? Decide the differentiating factor for the business and the way in which you intend to capitalize on competitors' weaknesses. Consider the effect that owning this business will have on your life-style and your family relationships. 5.7.2 Overall Retail Plan State your philosophy of the business. Choose an ownership form (sole proprietorship, partnership or corporation). State long- and short-run goals. Analyse customers from their point of view Research your market size and store location. Analyse your competition. Quantify your potential market share. Develop a specific retail strategy 5.7.3 Financial Plan Decide the level of funds you will need to get started and to get through the first year and where they will come from. (Refer to table 3 in Annexure 8 for a guideline on the same.) Determine the first year profit and return on investment. Project monthly cash flow and profit-and-loss statements for the first two years. Find out the amount of sales needed to breakeven in the time you stipulate. Decide upon the contingency plan if these sales are not reached in the specified time period. 5.7.4 Organizational Details Plan (Administrative Management) Describe your personnel plan (hats to wear), organizational plan and policies. Outline your inventory and accounting systems. Note your insurance plans.

CONSUMER PREFERENCE ON GARMENT Specify how day-to-day operations would be conducted for each aspect of your strategy. Lay down clearly the dos and don'ts for each aspect. Review the risks you face and how you plan to cope with them.

 FOREIGN DIRECT INVESTMENT IN RETAILING India with a population of more then one billion has become a magnet for many international industries who found their growth to be stagnating due to a saturated

CONSUMER PREFERENCE ON GARMENT domestic market in their countries. With the robust of economic experiencing sustaining growth. India is proving to be irrestible temptation to the companies looking to expand their scope of operations. With government showing proclivity in allowing FDI high and grocery retailing, the idea of permitting FDI in the Indian retail sector is slowly gaining momentum. An analysis on the various aspects of permitting FDI in the Indian retail sector is presented below. FDI in Indian retailing : Why not ? There are some strong arguments against opening up the Indian retail sector. Some of the specific reasons against permitting Foreign Direct Investment (FDI) in this sector as follow: Competaton for Indian retailer : The Indian retail market is in a state of in efficiency and it quite likely that a section of domestic retailing industry will be severely hurt due to entry of the foreign retailer, the most popular argument against the introduction of FDI. More limit for Indian retailers : the argument for more time is also a typical response given by a host country’s domestic industry when the threat of FDI looming large over its head. On positive note, Indian retailing has done a decent job. Currently, there are retail network in place that manages to make goods available even in the remote parts of the country. While it is not advisable to immediately introduce 100% FDI in retaling, a phased approach is recommaded to maintain a balance between protection of Indian retailers and the benefits that will accure to the consumer upon the introduction of FDI in retaling. Local borrowing of capital : One major cited by the most major supporters of theforeign capital would flow into India which would help in improving efficiency and cost effictiveness. But , this is strongly most global retailers who have setup base here , have borrowed locally to fund their operations rather bringing in fresh capital from abroad. Since, there are many such financial institutes both government and private, lending them capital at competitive rates. High cost of capital for Indian retailers : The cost of capital incurred by an Indian retailer, especially the smaller player, is significantly higher hten that of foreign players. In case of the mom and pop stores in India., avalibality of capital from the formal lending source is pretty difficult. Such situation would lead to huge price disparity between the foreigner owened retail chains and local Indian retailers. Devising alternate credit delivery mechanism in the markets can provide loans to smaller retailers at lower rates which will reduce the cost of the capital to the domestic retailers making them more competitive. Dumping by foreign retailers : Dumping of good manufactured in one country to another country is already an issue worldwide. The entry of the foreigner retailers poses such a threat as well. Certain industries that are currently operating ineffectively may face the threat of increased competition, ultimately leading to their clouser.

CONSUMER PREFERENCE ON GARMENT

FDI IN RETAILING : Why ? There are definitely strong case for permitting FDI in retailing inn India. At present , industry player s as well as the government is in sync to take this crucial an vital step, which would pave way to a structured retail industry in India. The critical analysis of Indian retailing industry is as follows :  Change in competition landscape : A study by AT Kearney on global retailing trends reports that India is the least competitive and least saturated of all major global markets. One definite advantage of FDI inflow in retailing would be an increase in competition. FDI can be a powerful catalyst to spur competition in this industry, due to the current scenario of low competition and poor productivity. Competition is the key diffusion FDI –introduces innovation across Indian retailing. Competition also critical for ensuring that the economic benefits from improved productivity are passed on to consumers through lower prices.  Supply chain improvement: Retailing is a front hand industry. Therefore, FDI investment would drive the growth in the entire supply chain. For example, McDonald’s and Metro set up their own supply chain when they entered India by adopting international standard for their Indian supply chain.  Investment in Technology: Technology in India retailing is still at a nascent stage. Widespread use of barcode readers and computerisation of records at retail outlets is the only visible barometer of the advancement in technology. Foreigner retailers currently own most coldchain in retail industry. The allowing of the FDI in the retail would help in introducing state-of-art retail technologies such as advanced inventory management systems into the market.  Manpower and skill development: Currently retail is ‘non-glamour’ industry in India. Also there is no specific curriculum available for training people in retail skills. Recently pantaloons retail India has tied up with welingkers Management Institute to offer a programme on retail skills. Allowing foreign investment would therefore ensure a greater flow of retailing talent into retailing industry in India. the international shopping community and have acted as major drivers of shipping community and have acted as major driver of tourism growth in these cities.  Tourism development: One lesson has been observed from the growth of Dubai and Singapore has been that a strong retailing sector can prove to be major boost to the tourism industry. The consumer electronics retailing in Singapore and gold retailing in Dubai are extremely popular in the international shopping community and have acted as major driver of tourism growth in these cities.  Greater sourcing from India: Once foreign players setup their base in India; they would also start increasing in the level of their sourcing from India. A point in case of Wal-Mart’s sourcing from china grew by almost five rime after was allowed in China and Wal-Mart was permitted to setup its base. A similar trend can happen here too.

Up-gradation in agriculture: A long term benefit of FDI in food retailing would be the transfer of globle best practisis to the Indian farmer McDonald’s and metros already have agronomistics in there team

CONSUMER PREFERENCE ON GARMENT who work with the farmers and educate them on model practices in India to, ITC has been working on similar initiative infect, ITC has gone a step ahead and set up Chaupals (village marts), where villagers can pick-up grocery as well as other house hold item in a more organize manner.  Efficient small and medium scale industries: A huge part of retailing comes from small and medium scale industries, especially in the food processing sector. Permitting FDI in retailing would create a drive towards efficiency in the related back-end small and medium scale industries.  Growth in market size: Introduction of foreign investment is likely to be accompanied by a huge explosion in the whole sector due to the greater spending power and data shopping experience.  Greater productivity: A combination of competition, industry status, better skills, greater scale, modern technology and better upstream processes, would result in a huge productivity growth in this sector.  Benefits to government: There are several benefits to the government. They can be broadly classified into three categories:  Greater GDP: Retailing currently contributes to almost 10 percent of the Indian GDP and is the largest private industry. Therefore, growth in retailing is vital if the Indian government seeks to achieve the 8-10 percent GDP growth.  Greater tax income: Allowing FDI in retail implies a growth in modern formals. Tax collection from modern formal stores is much easier from organized retail sector. Also, the implementation of VAT would be much easier. Modern retailing formats would also create a new set of income tax paying population, in the form of the skilled labor force that would be employed in the modern format stores. This would help in increasing the total tax revenues to the Indian government.  Huge employment generation: Retailing generates almost 8% of the total employment in this country. But this is still less than the 12% figure seen in the US and other countries where retailing is sufficiently modernized.

Regulating FDI in retailing Even as governments in emerging markets dole out lucrative incentives, many restrict the way foreign companies operate in order to protect the local industry and to maximize spillovers to the domestic economy. The most popular restrictions are local-content

CONSUMER PREFERENCE ON GARMENT requirement which force foreign companies to purchase certain % of inputs locally and joint-ventures requirements. All the local-contents requirements are now illegal under world trade organization rules, developing countries find barriers generally tariffs on components to restrict the way companies operate. When joint ventures make economic and strategic sense, foreign players pursue them. Local-market knowledge, after all, is crucial for success in service industries. In a low-margin business such as retailing understanding the nuances of consumer preferences and building reliable local supply and distribution networks make the difference between success and failure, and foreign players operate at the disadvantage in this respect.

FDI in retailing: An implementation frame work FDI Policy FDI Cap of 26%

Timeline 2005 – 2006

Highlights Objectives  Entry of smaller  Gear Indian American, retailers of the European impending

CONSUMER PREFERENCE ON GARMENT

FDI Cap of 49%

20062007

100% FDI Permitted

Beyond 2007

retailers.  Would see several “Financially innovative” ventures with dummy investors and the like.  Entry of major retailers  Partnership with existing major Indian players  Real testing ground for Indian retailers

onslaught of foreign retailers.  Help Indian retailers in organizing their set-up for better standards.  Emergence of Indian majors into retailers of reckoning.  Fostering development of Indian partners.  Consolidation of the Indian retail industry into a structured industry.  Metamorphosis of Indian retailers into global giants

What should the government do? To get the from foreign direct investment, developing nations should abandon their incentives and regulations and concentrate instead on strengthening their economics foundations in particulars stabilizing the economy and promoting competitive markets. Competitions are essential to diffuse to impact of foreign investment, for without to competitive markets, the entry of foreign players has little effect on inefficient domestic incumbents and their productivity. FDI had the most dramatic positive impact on domestic incumbents such as companies in Mexico’s food retailing industries, China’s consumer electronics industries and India’s business process outsourcing (BPO) industry

CONSUMER PREFERENCE ON GARMENT were not shielded from foreign rivals. To promote competitive markets, developing nations much reduce restrictions on foreign investment, lower import tariffs, streamline the requirements for starting new businesses and encourage new market entrants. Finally, developing countries should continue to build strong infrastructures, including roads, power supplies and ports particularly if they want to attract exportoriented foreign investment. In India, for instance, the continuous liberalization of the power and telecom sectors, a process that began in 1991, sparked off a boom in investment leading to the up gradation of related infrastructure. This, in turn has become an important prerequisite for development. Present FDI regime and entry routes The central government in 1997 had taken a careful policy decision of keeping FDI in retail at bay. But the present policy allows India to have a presence of international brands, through different routes as follows:  Franchise  Joint venture  Manufacturing  Distribution  Cash and carry (100%). FDI in retail –benefits and concerns:  Inflow of investment and funds.  Growth of infrastructure  Knowledge base/Technical know-how  Reduced cost and increased efficiency  Franchising opportunity for local entrepreneurs  Investment in supply chain, cold chains and warehousing  Implementation of IT in retail  Stimulate infant industries and other supporting industries  Increased local sourcing.  Increase number and improve quality of employment  Provide better value to end customers Concerns regarding foreign investments:  Foreign players would displace the unorganized retailers because of their superior financial strengths  Induce unfair trade practices like predatory pricing, in the absence of proper regulatory guidelines  Create monopoly and promote cartels  Give rise to cut-throat competition rather than promoting incremental business  Increase in real estate prices and marginalize domestic entrepreneurs What needs to be done? After leading the IT bandwagon, India is poised to grow as a retail hub. It is imperative to sustain the modernization of the retail sector and cater to the growing taste of the Indian consumer and dispel the myth that the Indian

CONSUMER PREFERENCE ON GARMENT consumer and the game is big v/s small or traditional v/s modern or organized v/s unorganized or local v/s foreign. Recommended CII policy  FDI should be gradually allowed first in relatively less sensitive sectorsgarments, lifestyle products, house ware, entertainment etc.  Alternative funding mechanisms and investment opportunities should be considered like FII and VC in the primary market, in addition to FDI.  At least two to three years lead-time should be given to the Indian retail to promote a level playing field for all  Promote FDI in tier II and less developed cities to focus on the thrust for infrastructure growth. Today, the question is not of whether “Indian should open”, FDI in retail can be leveraged for incremental results in the sector with an India –specific approach keeping the following points in considerations:  FDI should be opened in gradual phased manner thus allowing a lead-time for the Indian retailers to create a level playing field for all. Hence, it will promote competition and contribute to the growth of the Indian economy  Upgrade existing infrastructure and stimulate further development  Key initiatives that the government and the industry need to take together  Ensure that the opening of this sector to foreign players is a win-win for all  Ensure that Indian retail dynamics are very different from other countries. Since though we learn form global experiences, we do not go all out to ‘copy global models’.

Defining the way forward FDI would serve the purpose of much needed capital and bring in a boom in the retail sector. As some of the global retailers are already coming in through other channels there are no justifications to keep FDI in retail on hold. However, the industry also feels that capitl formations are needed and this will take at least two to three year’s time. Hence, retailers for capital formation need this leadtime, reiterating the fact that FDI should be allowed gradually. Since the objective of FDI is to increase investment there is also a need to explore alternative funding group, in addition to FDI. For example, if a capital turn over ratio of 1:5 is assumed, then it requires at least Rs.20, 000 core of investment. Hence, Foreign

CONSUMER PREFERENCE ON GARMENT Institutional Investors (FII) and Venture Capital (VC) firms should be legalized and encouraged for investment in the primary market. FII & VC firms are currently allowed to participate in the secondary market as well as necessary finance to increase investment in India.

AGE GROUP OF PEOPLE

• NAVRANGPURA

CONSUMER PREFERENCE ON GARMENT

AGE GROUP OF CONSUMERS

AGE GROUP 18-24

25-40 >40 TOTAL

23

37

In MAN 9 17 24 50

18-24

WOMEN 14 23 40 13 50

25-40

>40

TOTAL 23 40 37 100

Navrangpura we find 25-40 years customer equally better than 18-24. So above chart can tell them as Potential customer.

• BAPUNAGAR AGE GROUP 18-24

25-40 >40 TOTAL

MAN 3 15 7 25

WOMEN 4 12 9 25

TOTAL 7 27 16 50

AGE GROUP OF CUSTOMERS 27

7

16

18-24

25-40

>40

CONSUMER PREFERENCE ON GARMENT

As show in above pie chart of the Bapunagar for the age group of the customer 25 to 40 is the range of the customer age group which is maximum in number so we can interpret that 25 to 40 is the age group of the potential customer.

• ISANPUR AGE GROUP 18-24

25-40 >40 TOTAL

MAN 3 11 11 25

WOMEN 3 8 14 25

AGE GROUP OF CUSTOMERS

6

25

19

18-24

25-40

>40

TOTAL 6 19 25 50

CONSUMER PREFERENCE ON GARMENT

As show in above pie chart of the Isanpur for the age group of the customer more than 40 is the range of the customer age group which is maximum in number so we can interpret that 40< is the age group of the potential customer.

• VYASWADI

AGE GROUP 18-24

25-40 >40 TOTAL

MAN 7 8 10 25

WOMEN 4 9 12 25

AGE GROUP OF CUSTOMERS 11 22

17

18-24

25-40

>40

TOTAL 11 17 22 50

CONSUMER PREFERENCE ON GARMENT

As show in above pie chart of the Vyaswadi for the age group of the customer more than 40 is the range of the customer age group which is maximum in number so we can interpret that 40< is the age group of the potential customer in Vyaswadi.

CONSUMER PREFERENCE ON GARMENT

OCCUPATION OF THE CUSTOMER

• NAVRANGPURA OCCUPATION Businessman

Job House wife Student TOTAL

MAN 26 17 7 50

WOMEN 5 12 27 6 50

TOTAL 31 29 27 13 100

OCCUPATION OF CUSTOMERS

13 31 27 29

BUSSINESS

JOB

HOUSEWIFE

STUDENT

As shown in the above pie chart of the occupation of potential customer business men and the job person are maximum in the number and in female housewives are 27 which also maximum in female category.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR OCCUPATION Businessman

Job House wife Student TOTAL

MAN 3 17 5 25

WOMEN 2 4 15 4 25

TOTAL 5 21 15 9 50

OCCCUPATION OF CUSTOMERS

9

21

15

BUSSINESS

5

JOB

HOUSEWIFE

STUDENT

As shown in the above pie chart of the occupation of potential customer business men are maximum in the number and in female housewives are 15 which also maximum in female category.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR OCCUPATION Businessman

Job House wife Student TOTAL

MAN 5 18 2 25

WOMEN 1 4 17 3 25

TOTAL 6 22 17 5 50

OCCCUPATION OF CUSTOMERS

5

6

17 22

BUSSINESS

JOB

HOUSEWIFE

STUDENT

As shown in the above pie chart of the occupation of potential customer business men and the job person are maximum in the number and in female housewives are 17 which also maximum in female category.

• VYASWADI

CONSUMER PREFERENCE ON GARMENT OCCUPATION Businessman

Job House wife Student TOTAL

MAN 7 15 3 25

WOMEN 2 20 3 25

TOTAL 7 17 20 6 50

OCCUPATION OF CUSTOMERS

6

20

BUSSINESS

JOB

7

17

HOUSEWIFE

STUDENT

Vyaswadi have 17 job person and 20 house wife. So job person and house wives are the major occupation group customer for the hypermarket of garment.

CONSUMER PREFERENCE ON GARMENT

FREQUENCY OF VISIT BY CUSTOMER

• NAVRANGPURA FREQUENCY OF VISIT

MAN

WOMEN

TOTAL

Weekly

14 21 10 5 50

17 25 6 2 50

31 46 16 7 100

Fortnightly Monthly Bi-monthly TOTAL

FREQUENCY OF VISIT

16

7

31

46

WEEKLY MONTHLY

FORTNIGHTLY BI-MONTHY

Above data chart indicate that near about 50% customer visit fortnightly and 31% visit weekly. In Navrangpura hyper market most frequent time for customer visit is weekly and fortnightly by consumer from the above chart.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR FREQUENCY OF VISIT

MAN

WOMEN

TOTAL

Weekly

10 10 3 2 25

6 9 6 4 25

16 19 9 6 50

Fortnightly Monthly Bi-monthly TOTAL

FREQUENCY OF VISIT 6

16

9

19

WEEKLY MONTHLY

FORTNIGHTLY BI-MONTHY

In Bapunagar have fortnightly visited 19, weekly 16. So it is show that weekly and fortnightly most favored visiting duration.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR FREQUENCY OF VISIT

MAN

WOMEN

TOTAL

Weekly

8 13 4 0 25

9 9 4 3 25

17 22 8 3 50

Fortnightly Monthly Bi-monthly TOTAL

FREQUENCY OF VISIT 3

8

17

22

WEEKLY MONTHLY

FORTNIGHTLY BI-MONTHY

As shown in the chart weekly and fortnightly customer are more. So in Isanpur also have the trend of customer like Bapunagar.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI FREQUENCY OF VISIT

MAN

WOMEN

TOTAL

Weekly

7 7 10 1 25

8 11 4 2 25

15 18 14 3 50

Fortnightly Monthly Bi-monthly TOTAL

FREQUENCY OF VISIT 3

15

14

18

H

WEEKLY

FORTNIGHTLY

MONTHLY

BI-MONTHY

most preferred fortnightly and still customer give equal preference in weekly, fortnightly, and monthly.

INCOME GROUP OF THE CUSTOMERS

• NAVRANGPURA

INCOME GROUP .5 to 1 lakhs

1 to 2 lakhs 2 to 3 lakhs

MAN 6 13 19

WOMEN 8 11 15

TOTAL 20 30 28

ere

CONSUMER PREFERENCE ON GARMENT > 3 lakhs TOTAL

12 50

16 50

22 100

INCOME GROUP 20

22

30

28

50,000TO 1,00,000

1 TO 2 LAKH

2 TO 3 LAKH

3 OR MORE

Navrangpura have 80% customer who has income more than lakhs and 22 have more than 3 lakhs.

• BAPUNAGAR INCOME GROUP .5 to 1 lakhs

1 to 2 lakhs 2 to 3 lakhs > 3 lakhs TOTAL

MAN 7 8 6 4 25

WOMEN 7 9 4 5 25

TOTAL 14 17 10 9 50

CONSUMER PREFERENCE ON GARMENT

INCOME GROUP OF CUSTOMER

9

14

10 17

50,000TO 1,00,000 2 TO 3 LAKH

1 TO 2 LAKH 3 OR MORE

Bapunagar have more customers in income group of 1 to 2 lakhs. It indicates that Bapunagar is the area of higher-middle class consumer.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR INCOME GROUP .5 to 1 lakhs

1 to 2 lakhs 2 to 3 lakhs > 3 lakhs TOTAL

MAN 10 11 2 2 25

WOMEN 14 5 4 2 25

TOTAL 24 16 6 4 50

INCOME GROUP OF CUSTOMER

6

4 24

16

50,000TO 1,00,000 2 TO 3 LAKH

1 TO 2 LAKH 3 OR MORE

Isanpur have most customers in 1 to 2 lakhs which are 24. so in Isanpur consumer are belongs to the group of lower-middle class.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI

INCOME GROUP .5 to 1 lakhs

1 to 2 lakhs 2 to 3 lakhs > 3 lakhs TOTAL

MAN 5 14 4 2 25

WOMEN 8 9 5 3 25

TOTAL 13 23 9 5 50

INCOME GROUP OF CUSTOMER

5

13

9

23

50,000TO 1,00,000

1 TO 2 LAKH

2 TO 3 LAKH

3 OR MORE

In Vyaswadi 23% customers come in the income group of 1 to 2 lakhs. Which are most in all income groups.

CONSUMER PREFERENCE ON GARMENT

NAME OF THE VIHICLE CONSUMER HAVE • NAVRANGPURA NAME OF VECHICLE (MALE)

NO.

Scooter

24 19 39

Bike Car

NO. OF VECHICLE CURRENTLY

24 39

SCOOTER BIKE

19

CAR

Most of the customer have car which are 39 out of 100 and 24 have scooter. Most consumer come with family.

CONSUMER PREFERENCE ON GARMENT

• NAVRANGPURA OF NAME VECHICLE (FEMAL)

NO.

Scooter

45 8 28

Bike Car

NO. OF VECHICLE CURRENTLY

28

SCOOTER 45 8

BIKE CAR

28 have car and 45 have scooter, which have indication of average income class.

• BAPUNAGAR

CONSUMER PREFERENCE ON GARMENT NAME OF VECHICLE (MALE)

NO.

Scooter

18 13 8

Bike Car

NO. OF VECHICLE CURRENTLY

8 18 13

SCOOTER BIKE CAR

In Isanpur most customers have scooter and bike. It shows the middle class customer trend.

• BAPUNAGAR

CONSUMER PREFERENCE ON GARMENT

NAME OF VECHICLE (FEMALE)

NO.

Scooter

15 0 4

Bike Car

NO. OF VECHICLE CURRENTLY

4 SCOOTER

0

BIKE CAR 15

Most people have scooter, it can be consider as lower middle class.

• ISANPUR

CONSUMER PREFERENCE ON GARMENT

NAME OF VECHICLE (MALE)

NO.

Scooter

19 3 3

Bike Car

NO. OF VECHICLE CURRENTLY

3 3

SCOOTER BIKE CAR 19

Most male consumer have scooter.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR

NAME OF VECHICLE (FEMALE)

NO.

Scooter

14 0 5

Bike Car

NO. OF VECHICLE CURRENTLY

5

SCOOTER BIKE

0 14

According to the table 14 female have scooter.

• VYASWADI

CAR

CONSUMER PREFERENCE ON GARMENT NAME OF VECHICLE (MALE)

NO.

Scooter

16 7 2

Bike Car

NO. OF VECHICLE CURRENTLY

2 SCOOTER

7

BIKE 16

CAR

As shown in the chart 16 customers have scooters in Vaswadi in male category. This is also the indication of middle class customer.

• VYASWADI

CONSUMER PREFERENCE ON GARMENT

NAME OF VECHICLE (FEMALE)

NO.

Scooter

12 0 3

Bike Car

NO. OF VECHICLE CURRENTLY

3 SCOOTER

0

BIKE CAR 12

In Vyaswadi 16 male have scooter and 12 women have scooter. It is the area of middle class people.

DIFFERENT RANK GIVEN BY CUSTOMER

• NAVRANGPURA

CONSUMER PREFERENCE ON GARMENT FEATURE (MALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

OFFICE/ FORMAL 10 6 8 9 11 7

CAUSAL/ OUTING 3 11 8 9 13 6

20 15 10 5 0

PARTY/ OCCATION 4 3 11 12 17 3

HOME/ LOUNGE 1 1 9 11 15 13

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTER N

STITCHING QUALITY

COLOUR/PRIN T

BRANDNAME

HOM E/LOUNGE

In all category fabric quality and style is given more preference. But in formal 10 men preferred brand name.

• NAVRANGPURA

CONSUMER PREFERENCE ON GARMENT FEATURE (FEMALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

CAUSAL/ OUTING 5 2 1 18 19 4

PARTY/ OCCATION 9 8 7 14 11 1

HOME/ LOUNGE 2 5 3 6 20 17

OFFICE/FORM AL CAUSAL/OUTING

PRICE

FABRIC QUALITY

CUT

STYLE/PATTERN/

VALUE ADDITION

HOM E/LOUNGE

VARIETY OF

COLOUR/PRINT

PARTY /OCCASION

BRANDNAME

25 20 15 10 5 0

OFFICE/ FORMAL 4 5 7 10 13 11

In female Style, Pattern and Price are most given number ranking by customer in garment buying. Still fabric quality is the first criteria of selection of garment.

• BAPUNAGAR

CONSUMER PREFERENCE ON GARMENT FEATURE (MALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

OFFICE/ FORMAL 4 2 5 3 7 4

CAUSAL/ OUTING 2 0 0 2 12 9

16 14 12 10 8 6 4 2 0

PARTY/ OCCATION 0 4 6 4 8 3

HOME/ LOUNGE 0 2 1 1 6 15

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTER N

STITCHING QUALITY

COLOUR/PRIN T

BRANDNAME

HOM E/LOUNGE

Fabric quality and stitching quality are first preference and in home cloths price is the first criteria of buying.

• BAPUNAGAR

CONSUMER PREFERENCE ON GARMENT

FEATURE (FEMALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

CAUSAL/ OUTING 0 1 3 2 7 12

PARTY/ OCCATION 2 1 1 7 12 2

HOME/ LOUNGE 0 0 1 1 14 9

OFFICE/FORM AL CAUSAL/OUTING

PRICE

FABRIC QUALITY

CUT

STYLE/PATTERN/

VALUE ADDITION

HOM E/LOUNGE

VARIETY OF

COLOUR/PRINT

PARTY /OCCASION

BRANDNAME

16 14 12 10 8 6 4 2 0

OFFICE/ FORMAL 0 0 0 0 0 0

As shown in the chart, we can clearly see that no women b formal shirts in Bapunagar. And style and febrile quality are the two main criteria for buying a garment.

• ISANPUR

CONSUMER PREFERENCE ON GARMENT FEATURE (MALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

OFFICE/ FORMAL 1 2 4 0 11 8

CAUSAL/ OUTING 0 2 2 4 7 10

14 12 10 8 6 4 2 0

PARTY/ OCCATION 5 3 6 12 8 1

HOME/ LOUNGE 0 0 12 4 2 7

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTER N

STITCHING QUALITY

COLOUR/PRIN T

BRANDNAME

HOM E/LOUNGE

Isanpur consumer buying criteria rely on style, fabric quality, and price. In home stitching quality most preferred.

• ISANPUR

CONSUMER PREFERENCE ON GARMENT

FEATURE (FEMALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

CAUSAL/ OUTING 6 2 1 1 12 4

PARTY/ OCCATION 0 0 3 5 9 7

HOME/ LOUNGE 0 8 7 1 3 6

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTERN/ CUT

VARIETY OF VALUE ADDITION

COLOUR/PRINT

HOM E/LOUNGE

BRANDNAME

14 12 10 8 6 4 2 0

OFFICE/ FORMAL 0 0 0 0 0 0

No women buy formal shirts. Fabric quality and price are criteria of buying. Brand is least proffered.

• VYASWADI

CONSUMER PREFERENCE ON GARMENT FEATURE (MALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

OFFICE/ FORMAL 1 1 1 8 3 11

CAUSAL/ OUTING 1 2 2 2 5 13

14 12 10 8 6 4 2 0

PARTY/ OCCATION 2 3 4 5 7 4

HOME/ LOUNGE 0 1 2 4 6 12

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTER N

STITCHING QUALITY

COLOUR/PRIN T

BRANDNAME

HOM E/LOUNGE

Vyaswadi people are considering first price and then fabric quality & style. Brand and colour are least proffered.

• VYASWADI

CONSUMER PREFERENCE ON GARMENT FEATURE (FEMALE) Brand name Colour/Print Stitching Quality Style/Pattern Fabric Quality Price

CAUSAL/ OUTING 0 1 0 7 12 5

PARTY/ OCCATION 1 3 2 5 9 5

HOME/ LOUNGE 1 3 4 2 4 11

OFFICE/FORM AL CAUSAL/OUTING PARTY /OCCASION

PRICE

FABRIC QUALITY

STYLE/PATTERN/ CUT

VARIETY OF VALUE ADDITION

COLOUR/PRINT

HOM E/LOUNGE

BRANDNAME

14 12 10 8 6 4 2 0

OFFICE/ FORMAL 0 0 0 0 0 0

No female buy formal shirts. Fabric quality, stitching quality and price are criteria of buying garments.

VERAGE AMOUNT SPEND PER ITEM BY CUSTOMER • NAVRANGAPURA (MALE)

ITEM OF CLOTHING Formalshirts T-shirts CausalShirts/Party wear

100+

200+

400+

600+

1200+

2000+

2 8 1

23 14 23

17 19 21

8 9 2

3

-

CONSUMER PREFERENCE ON GARMENT Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

3 2 6 20

19 23 7 3 8 27

16 19 24 19 17 3

7 4 13 28 4 -

-

16

5 2 6 6

-

7

11

2

14

23

8

27 2

19 -

-

30 25 20 15 10 5 0

100+

Sweaters/Woole nwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Par ty wear

T-shirts

200+ Formalshirts

No. of Persons

Avg. Amount Spent Per Item

400+ 600+ 1200+ 2000+

Item of Clothing

In Navrangpura average range of shirts are 200+ and 400+. In trouser also 350-600 are most preferred price range. In blazer most of customer is in the range of 1200+ and second in 2000+ range.

• NAVRANGPURA (FEMALE)

CONSUMER PREFERENCE ON GARMENT ITEM OF CLOTHING Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

100+

200+

400+

600+

3 8 13 17 3 2 5 3 12

19 17 21 5 12 3 22 24 18 2 4 9 21

1 10 2 21 4 12 7 3 9 19 14 15 14

2 1 10 4 2 23 32 2 3

1200+ -

2000+ -

35 30 25 20 15 10 5 0

100+ 200+ 400+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/ lycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

600+ Formalshirts

NO. OF PERSONS

AVERAGE AMOUNT SPENT PER ITEM

1200+ 2000+

ITEM OF CLOTHING

Navrangpura less female by formal shirts. In sarees, kurta & jeans the buy in the range of 600+..

CONSUMER PREFERENCE ON GARMENT

•

BAPUNAGAR (MALE)

BAPUNAGAR (MALE) ITEM OF CLOTHING Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

100+ 9 11 8 1 3 2 7 13

200+ 12 7 11 14 7 12 11 4 4

400+ 2 4 5 4 6 3 3 1 -

600+ 1 3 1 6 2 4 2 -

2000+ -

3

1200+ 1

-

10

6

-

-

-

-

8 -

3 -

-

16 14 12 10 8 6 4 2 0

100+

Sweaters/Woole nwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Part y wear

T-shirts

200+ Formalshirts

No. of Persons

Avg. Amount Spent Per Item

400+ 600+ 1200+ 2000+

Item of Clothing

Bapunagar male purchase in the range of most of the items in 200+. Blazer purchased by less customer & that are in the range of 1200+.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR (FEMALE)

ITEM OF CLOTHING

100+

200+

400+

600+

1200+

2000+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

3 3 4 3 16

9 11 13 9 2 1 11 5 9 6 3 11 5

1 2 1 8 1 3 1 2 5 8 8 5 2

3 9 13 2 -

-

-

18 16 14 12 10 8 6 4 2 0

100+ 200+ 400+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/ lycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

600+ Formalshirts

NO. OF PERSONS

AVERAGE AMOUNT SPENT PER ITEM

1200+ 2000+

ITEM OF CLOTHING

Female in Bapunagar 13 out of 25 have formal shirts in the range of 200+. But most of other items the purchase in the range of 400+ and 600+.

• ISANPUR (MALE)

CONSUMER PREFERENCE ON GARMENT

ITEM OF CLOTHING Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

100+

200+

400+

600+

1200+

2000+

3 2 11 3 5 5 8

13 7 6 12 6 7 4 4 5

7 9 3 8 8 7 5 2 -

2 1 2 3 3 2 -

-

-

-

4

6

5

3

16

5

-

3 -

7 -

-

100+

Sweaters/Woole nwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Part y wear

200+ T-shirts

20 15 10 5 0

Formalshirts

No. of Persons

Avg. Amount Spent Per Item

400+ 600+ 1200+ 2000+

Item of Clothing

As shown in above chart shorts and causal shirts are purchase by customer in the range of 100+. Other items purchase b them in 200-400 range. So 200 to 400 is the completive price.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR (FEMALE)

ITEM OF CLOTHING

100+

200+

400+

600+

1200+

2000+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

3 9 7 6 1 2 2

6 3 6 5 2 1 9 8 9 4 7 12 15

2 8 4 2 2 6 14 8 3 3

1 2 3 1 2 2 5 7 1 2

-

-

16 14 12 10 8 6 4 2 0

100+ 200+ 400+

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

600+ Formalshirts

NO. OF PERSONS

AVERAGE AMOUNT SPENT PER ITEM

1200+ 2000+

ITEM OF CLOTHING

In Isanpur female competitive range of price is 400+. In saree and salwar kurta there are customer who by in the range of 600+.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI (MALE)

ITEM OF CLOTHING Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

100+

200+

400+

600+

1200+

2000+

7 9 3 2 4 11 14

13 7 13 8 13 10 5 4 3

5 5 4 11 9 7 4 3 -

1 2 4 3 3 4 -

-

-

8

6

5

-

7

12

4

1 1

4 -

5 -

-

16 14 12 10 8 6 4 2 0

100+

Sweaters/Woole nwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Part y wear

T-shirts

200+ Formalshirts

No. of Persons

Avg. Amount Spent Per Item

400+ 600+ 1200+ 2000+

Item of Clothing

As shown in the table most of the customer buy in the range of 200-400. In jacket & Kurta the purchase in the range of 600+ which are five in number.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI (FEMALE) VYASWADI (FEMALE) ITEM OF CLOTHING Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

100+ 8 4 5 4 5 3 2 4 13

200+ 7 5 9 11 3 3 10 4 8 14 7 5 7

400+ 2 3 6 1 2 9 8 2 5

600+ 6 3 -

1200+ -

2000+ -

16 14 12 10 8 6 4 2 0

100+ 200+ 400+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

600+ Formalshirts

NO. OF PERSONS

AVERAGE AMOUNT SPENT PER ITEM

1200+ 2000+

ITEM OF CLOTHING

Vyaswadi female purchase garment in average amount of 200+. In Vyaswadi jeans trouser, salwar, saree, nightwear in the range of 400+. Female in Vyaswadi who purchase in range of 600+.

CONSUMER PREFERENCE ON GARMENT

NO. OF GARMENTS CURRENTLY HAVE BY CUNSUMER ON WORD ROBE

• NAVRANGAPURA(MALE)

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

4 6 11 8 15 21 42 33 27

7 18 18 11 16 9 6 4 15

10 14 13 19 9 4 2 -

29 12 8 12 10 16 -

13 8

34

6

-

-

10

19 29

8 15

12 3

7 2

4 1

NUMBER OF CONSU. GARMENT ON WORDROBE 50 40 30 20 10 0

1-3 4-6 10+ Sweaters/Wool enwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Pa rty wear

T-shirts

6-9 Formalshirts

NO. OF GARMENT ON WORDROBE

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

In Navrangpura hyper market we find formal shirt, t-shirt, and jeans trouser are the garment which are most consume by customer in word robe.

CONSUMER PREFERENCE ON GARMENT

• NAVRANGAPURA(FEMALE)

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

11 8 3 1 20 14 24 26 14 1 8 34

12 13 21 4 7 5 7 3 12 4 2 13 8

7 7 8 6 1 5 19 5 4 3

9 5 23 1 23 43 1 -

27 13 14 14 17 31 18 21 16 3 24 5

NUMBER OF GARMENTS ON WORDROBE

50 40 30 20 10 0

1-3 4-6 10+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

6-9 Formalshirts

NO.OF GARMENTS ON WORDROBR

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

Formal shirts are less preferred by female. Sarees, jeans and salwar kurta are maximum consume by customer in word robe. Which are about 46% and 86% of total.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR(MALE) Don’t have

1-3

4-6

6-9

10+

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

8 10 14 9 10 16 16 11 13

9 12 6 8 7 5 1 4

2 1 2 6 -

6 2 3 2 1 -

7 4 9 13 8

17

2

-

-

6

11 17

8

-

-

14 -

-

NUMBER OF CONSU. GARMENT ON WORDROBE 20 15 10 5 0

1-3 4-6 10+ Sweaters/Wool enwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Pa rty wear

T-shirts

6-9 Formalshirts

NO. OF GARMENT ON WORDROBE

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

Formal shirt and casual shirts are the only items which are consumed by customer in 10+ others are 2 or less than 2.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR (FEMALE)

1-3

4-6

6-9

10+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

8 7 12 13 6 4 11 5 12 4 2 5 19

5 4 6 7 2 4 2 2 17 5 13 4

3 8 -

2 2 9 -

12 9 7 5 17 21 10 18 11 2 1 7 2

NUMBER OF GARMENTS ON WORDROBE

25 20 15 10 5 0

1-3 4-6 10+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

6-9 Formalshirts

NO.OF GARMENTS ON WORDROBR

ITEM OF CLOTHING

Don’t have

Don’t have

ITEM OF CLOTHING

Sarees, salwar-kurta and formal shirts are the most consume item by female but here still formal shirt is an exception because 12 do not have formal shirt out of 25 and there is no one in 6 to 9 range.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR (MALE)

ITEM OF CLOTHING

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

4 13 9 9 5 11 10 9 10

11 5 7 12 9 6 1 2 3

5 2 1 3 8 -

4 2 1 3 -

5 6 7 14 14 12

7

8

-

-

10

10 21

4

-

-

15 -

1-3 4-6

Sweaters/Wool enwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Pa rty wear

6-9 T-shirts

25 20 15 10 5 0

Formalshirts

NO. OF GARMENT ON WORDROBE

NUMBER OF CONSU. GARMENT ON WORDROBE

10+ Don’t have

ITEM OF CLOTHING

According to the table most of the consumer have 4 to 6 range but in formal shirt there are 4 and casual cotton trouser 3 person have 10+ garment.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR (FEMALE)

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

7 2 7 12 6 6 9 11 14 4 12 18

4 9 6 4 2 3 3 11 1 3 4

2 2 6 6 2 -

1 18 1 -

14 12 10 9 17 19 13 14 8 3 7 3

NUMBER OF GARMENTS ON WORDROBE

20

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

10+

Hipsters

6-9

0 Capri/Half Pent

4-6

5 Jeans Trouser

10

Tops/Party Wear

1-3

T-shirts

15

Formalshirts

NO.OF GARMENTS ON WORDROBR

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

Formal shirt, track pent and hipsters are least consume by customers and most of consumer have garment in 1 to 3 range except sarees in which there are 6 women 6 to 9 and 18 in 10+. So saree is the most consumable item b consumer.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI (MALE)

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

4 3 12 4 6 5 13 6 9

7 8 5 7 9 13 7 5

9 9 5 9 8 3 4 3

5 2 5 2 2 -

3 3 2 12 8 8

14

5

-

-

6

10 17

6

-

1

15 1

NUMBER OF CONSU. GARMENT ON WORDROBE 50 40 30 20 10 0

1-3 4-6 10+ Sweaters/Wool enwear

Blazer

/Sherwani

Kurta-Pajama

Pent/Bermuda

Shorts/Half

Sports Track

Jacket

Jeans Trouser

Trouser(Causal cotton)

Trouser(formal)

CausalShirts/Pa rty wear

T-shirts

6-9 Formalshirts

NO. OF GARMENT ON WORDROBE

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

Most of the consumer has formal shirt and trouser in 6 to 9 and 10+ ranges.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI (FEMALE)

1-3

4-6

6-9

10+

Don’t have

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

4 6 7 14 8 3 13 7 8 4 2 6 11

2 8 5 3 1 3 2 3 8 1 4 12

3 13 4 2

18 -

16 11 13 8 17 21 9 16 14 15 -

NUMBER OF GARMENTS ON WORDROBE

25 20 15 10 5 0

1-3 4-6 10+ Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/l ycra/Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

6-9 Formalshirts

NO.OF GARMENTS ON WORDROBR

ITEM OF CLOTHING

Don’t have

ITEM OF CLOTHING

1 to 3 is the common range for female except salwar-kurta and saree.

CONSUMER PREFERENCE ON GARMENT

FREQUENCY OF BUYING BY CUSTOMER IN YEAR • NAVRANGPURA(MALE)

6+

-

39 49

7 -

-

1-3 4-6 6+

Ja ck Sp et or ts Tr ac k Sh or ts /H Pe al f nt /B er m ud Ku a rta -P aj am a /S he rw an i

-

irt s Ts hi hi rts rts /P ar ty w Tr ea ou Tr r se ou r ( fo se r( rm C al au ) sa lc ot to Je n) an s Tr ou se r

40

C

Sw

ea

au sa lS

Fo rm al sh

4-6

Bl az W er oo le nw ea r

17 19 14 30 14 6 37 10 3 30 16 4 Frequency of10Buying In a3Year 37 37 10 2 50 37 42 -

te rs /

1-3

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket 60 50 Sports Track 40 Shorts/Half 30 Pent/Bermuda 20 Kurta-Pajama 10 /Sherwani 0 Blazer Sweaters/Woolenwear Frequency of Buying

ITEM OF CLOTHING

Item of Clothing

In Navarangpure formal shirts and the t-shirts are high consumption rate for consumer. Kurta and sports are less consume by customer. •

NAVRANGAPURA(FEMALE)

CONSUMER PREFERENCE ON GARMENT

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

23 31 27 12 32 17 31 29 28 24 3 24 43

5 6 16 1 2 1 3 14 5 1 2

1 3 9 9 42 1 -

1-3 4-6

Item of Clothing

According to the chart Navrangpura female most frequently by saree in maximum number which is 42. we also find that many buyer buy more than 10 sarees in a year. In salwar also there are customer who buys more than 9 salwar in a year. So salwar and sarees is most frequent buying product in a year with large quantity

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/lycra/ Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

6+ T-shirts

50 45 40 35 30 25 20 15 10 5 0

Formalshirts

Frequency of Buying

Frequency of Buying In a Year

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR (MALE)

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

19 23 22 21 17 21 16 12 17

4 2 2 4 1 -

2 1 -

19

-

-

11 25

-

-

Frequency of Buying

Frequency of Buying In a Year 30 25 20

1-3

15

4-6

10

6+

5

i an Sw

Tr ou

ea

te Bl rs az /W er oo le nw ea r

a rw

/S he

am

a

Pa j

ta -

m ud

Ku r

Pe n

t/B er

H al f

k Tr ac

Sh o

rts

rts /

t ck e Sp o

r Tr

s an

Ja

ou se

n) tto co Je

rm al ) se r

(C au

( fo

w

se r

ty Tr ou

sa l

r ea

s i rt ar

hi r ts /P

Tsh

C au sa

lS

Fo

rm

al sh

ir t s

0

Item of Clothing

As shown in above chart formal shirt and casual shirt are very much frequent buying item in Bapunagar. Other products are in a range of 1 to 3 and 4 to 6 range.

CONSUMER PREFERENCE ON GARMENT

• BAPUNAGAR (FEMALE)

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

11 9 15 13 6 4 13 7 13 8 5 16 14

2 5 3 7 2 2 1 13 10 2 4

2 2 9 -

18 16 14 12 10 8 6 4 2 0

1-3 4-6

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/lycra/ Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

6+ Formalshirts

Frequency of Buying

Frequency of Buying In a Year

Item of Clothing

In Bapunagar we find that 9+ female buy sarees more than 6 time out of 25 in a year. T-shirts and salwar are also there after frequent buying garment product.

CONSUMER PREFERENCE ON GARMENT

• ISANPUR (MALE) ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

15 18 17 23 20 18 11 11 16

2 2 1 3 -

2 2 1 2 -

15

-

-

10 25

-

-

Frequency of Buying

Frequency of Buying In a Year 30 25 20

1-3

15

4-6

10

6+

5

w ea r

le n

ze r

ea

te rs /

W oo

Bl a

an i

a am

/S he

rw

a -P aj

ta

m ud

Ku r

Pe n

t/B er

H

al f

k Sh o

rts /

t rts

Tr ac

ck e Ja

ro us sT

Sp o

er

n) tto co

an

au sa l

(C se r

Je

al )

r w

se r(

Sw

ty

Tr ou

Tr ou

lS sa C au

fo rm

ea

s irt ar

hi rts /P

Tsh

Fo

rm al sh

ir t s

0

Item of Clothing

In Isanpur formal shirts, trouser (both) are buying by man customer 6+ times in a year. Other items are buying in1-3 range

CONSUMER PREFERENCE ON GARMENT

• ISANPUR (FEMALE)

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

10 8 7 15 8 6 12 11 15 7 13 18

1 4 8 1 2 14 7 5 4

1 1 18 -

20 18 16 14 12 10 8 6 4 2 0

1-3 4-6

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Track Pent

Skirts(synthetic/lycra/ Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

6+ Formalshirts

Frequency of Buying

Frequency of Buying In a Year

Item of Clothing

Most of the consumer buys the items in 1 to 3 ranges in a year. Saree is the most demandable item in the customer.

VYASWADI (MALE)

CONSUMER PREFERENCE ON GARMENT

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts CausalShirts/Party wear Trouser(formal) Trouser(Causal cotton) Jeans Trouser Jacket Sports Track Shorts/Half Pent/Bermuda Kurta-Pajama /Sherwani Blazer Sweaters/Woolenwear

18 19 21 16 18 21 30 17 18

5 3 1 7 5 -

2 2 2 2 -

19

-

-

10 23

1

-

Frequency of Buying

Frequency of Buying In a Year 35 30 25 20 15 10 5 0

1-3 4-6

w ea r

ze r

ea

te

rs /

W oo

le n

i

Bl a

an rw

/S he

am a

a

-P aj

m ud

Ku rta

Pe n

t/B er

H

al f

k Tr ac

Sh o

rts

rts /

t ck e Ja

Sp o

er ro

us

n) tto

sT an

Je

al ) se r

(C

au sa l

co

r w

se r(

Sw

Tr ou

Tr ou

ty

fo rm

ea

s irt ar

hi rts /P

Tsh

C au s

al S

Fo

rm al sh

ir t s

6+

Item of Clothing

Vyaswadi male buy almost ever item in a range of 1-3. Still in the cater agar of trousers, jeans, and formal shirts buy by the .consumer in the range of 6+.

CONSUMER PREFERENCE ON GARMENT

• VYASWADI (FEMALE)

ITEM OF CLOTHING

1-3

4-6

6+

Formalshirts T-shirts Tops/Party Wear Jeans Trouser Capri/Half Pent Hipsters Skirts(synthetic/lycra/Ethetic) Track Pent Middy Salwar-Kurta/Chudidar Sarees Lehanga/Choli Nightwear

6 9 10 14 8 4 15 9 8 12 6 9 23

3 5 2 3 1 3 13 19 1 2

-

25 20

1-3

15

4-6

10

6+

Nightwear

Lehanga/Choli

Sarees

SalwarKurta/Chudidar

Middy

Skirts(synthetic/lycra/ Ethetic)

Hipsters

Capri/Half Pent

Jeans Trouser

Tops/Party Wear

T-shirts

0

Track Pent

5 Formalshirts

Frequency of Buying

Frequency of Buying In a Year

Item of Clothing

In Vyaswadi fame purchase in the range of 1-3 and 4-6. No consumer buy in the range 6+.

CONSUMER PREFERENCE ON GARMENT

FINDINGS OF THE QUESTIONNARIE

• 25-40 and 40+ is the frequent visitor. • Navrangpura have more businessmen & job people are consumer.Other store have more job person & housewife as a potential customer. • In Navrangpura customer are coming with their family. • Fabric quality and style are general first criteria for buying. Consumer give least preference to branding in garment preference. Isanpur, Bapunagar, &Vyaswadi people are more price conscious. • Formal shirts, t-shirts, trouser (both) more consumed by male. •

Female do not prefer formal shirt except Navrangpura. In most of store female have more number of sarees & salwar-kurta in high quantity.

• Average amount in all the store is 200+ for shirts & 400+ in trouser. Still Bapunagar, Insanpur & Vyaswadi consumer wants range in 200-350. • Male most frequently buy formal shirts, trouser(both),causal shirts.

CONSUMER PREFERENCE ON GARMENT

CONSUMER SUGGETIONS • There should be more variety in below 8 years children. • There should be more collection in kurta-pajama and party wear. • Women asked new variety and range in salwar-kurta. • Saree should be included in garment segment. • Consumer asked for gift system on garment buying as in other products. •

Consumer asked for more variety in buy one, get one free garments.

•

There should be more variety of color in shirts.

•

Jeans should be in a range of 300-500 with wide range of collection.

CONSUMER PREFERENCE ON GARMENT

 LIMITATION OF THE RESEARCH

 The respondent s may not give correct answers due to personal bias.  The sample size 250 is very limited. So, it is not possible to achieve 100% accuracy in research.  The research is limited to Ahmedabad city only. So, it is also a limitation of a area for appropriate analysis.  As, we are not expertise in this field, the result may not be as perfect as it should be for company’s expectations.

CONSUMER PREFERENCE ON GARMENT

CONCLUSION OF THE RESEARCH

The conclusion from this research could be derived that 200-400 is the idle range for garment selling price. And in woman wear there should be sari in the hypermarket which is highly demanded by consumer.

CONSUMER PREFERENCE ON GARMENT

BIBLIOGRAPHY WEBSITES: (1) (2) (3) (4) (5) (6) (7)

www.google.com www.stores.org www.adanigroup.com www.etretailbiz.com www.qestionpro.com www.indiainfoline.com www.indiatimes.com

MAGAZINES: (1) (2) (3) (4)

Retail Biz Business today 4 P’s Indian Economy

BOOKS: (1) Retailing Management by Swapna Pradhan (2) The Art of Retailing by A J Lamba (3) Marketing Management by Philip Kotler NEWSPAPERS: (1) Times Of India (2) Economics Times (3) Business Standard

CONSUMER PREFERENCE ON GARMENT