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Case study on

Allen Solly - Entering the Indian Women's Western Wear Market

Allen Solly - Entering the Indian Women's Western Wear Market

• The case discusses the strategies adopted by the company in terms of marketing research, product design, retailing and promotion. The case also provides information about other players in the women's Western wear market in India and takes a look at the market's future prospects.

introduction • The case examines the changing dynamics of the women's wear market in India during the 1990s and early-2000s. Changes in India's cultural values and social system, and the impact of these changes on the dressing styles of Indian women are explored in detail. Madura Garment's decision to enter the readymade women's Western wear segment is examined in detail in light of the above changes

• Understand the reasons for the increased activity in the branded women's Western wear market in India in the early 21st century. • Women have too many different kinds of clothing. They want exclusive outfits and would not buy mass produced garments. They just want the look and do not care about the label. It is too risky. It is a headache. It just would not work."

• from a news article on www.BharatTextile.com, January 11, 2002. • "We feel there is a definite potential to expand the market by offering a range of western women's wear, properly styled and cut according to body types, under the Allen Solly brand name. That will complete the whole lifestyle package we will have both Allen Solly Men's and Women's wear, and have a strong retail line-up for both." • - Vikram Rao, Director, Indian Rayon, in October 2002.

• In September 2002, leading Indian apparel company, Madura Garments launched a line of readymade women's western wear under the brand name 'Allen Solly Women's Wear.' The launch was backed by advertisements in the national print and outdoor media.

• The move attracted attention for two reasons. First, this was the first-ever nationwide exercise by any company to offer readymade Western wear for women in India on this large a scale. Second, Madura seemed to have taken a risk by trying to extend its hitherto 'exclusively for men' brand, Allen Solly, to the women's segment.

• The nationwide launch was undertaken following the brand's impressive performance during the test-marketing phase in the city of Bangalore (Karnataka) in December 2001

• Indus League had launched women's wear under the 'Scullers' range, while Raymond's had entered the segment with its designer range 'Be.' By late-2002, many other brands, such as Benetton, Mango, Wills Sports and Blackberrys, had either launched (or were planning to launch) exclusive women's wear in the country. This rush to enter the segment was not difficult to understand, considering the fact that the market was almost completely in the hands of the unorganized sector and had very few branded players.

• Most of the national level branded players were present only in the men's wear segment. In 2001, the women's wear industry was estimated to be around Rs 161 billion with a growth rate of 9%, of which the women's western wear market was estimated to be growing at 15-20% per annum, according to a study conducted by KSA-Technopa

• Some analysts felt that these figures did not justify the pace with which companies were entering the market. And, more importantly, many analysts felt that the business did not hold too much promise, because Indian women would not be comfortable giving up their traditional attire. Around 95% of working women in India wore salwar suits to work, and perhaps not many of them would be willing to shift to Western corporate wear

• Madura, however, justified its move, citing studies, which revealed that though Indian women liked to experiment with Western wear, they did not have access to styles that suited them. • The company was confident that it would be able to make a success of the venture despite the increasing number of players and the threat of much cheaper unorganized sector products.

• Madura, however, justified its move, citing studies, which revealed that though Indian women liked to experiment with Western wear, they did not have access to styles that suited them. • The company was confident that it would be able to make a success of the venture despite the increasing number of players and the threat of much cheaper unorganized sector products.

• However, most Indian women traditionally wore sarees and other ethnic wear . Though Western wear entered the country through Hindi movies in the 1950s itself, it remained limited only to teenage girls even by the early 1980s. This was so because after marriage Indian women were generally expected

• Despite the apprehensions of some analysts, many players began taking interest in the Western women's wear segment in India. Leading textile company Arvind Mills (the market leader in the Indian denim market with brands such as Lee, Levis and Newport) planned to enter into the women's Western wear segment by early-2003 under its popular premium brand 'Arrow.' • Darshan Mehta, President, Arvind Brands, said, "In the US, there is a strong women's line under Arrow, which we plan to launch in India

• Raymond's planned to extend its distribution chain to 100 exclusive Be outlets by 2003, mainly through the franchisee route. The company also considered the possibility of integrating Be with the existing Raymond's retail outlet network. Said Singhania, "We already have 250 outlets for Raymond. Going down the line, we will certainly look at integrating Raymond with