What is Retailing ?Retailing is a set of businessactivities that adds value to theproducts & services sold to theconsumers for their personnel orfamily use. India Stats in 2011 : Indian retail business valued at around US$ 550 billion in 2011 A report by Boston Consulting Group (BCG) has revealed that the countrys organised retail is estimated at US$ 28 billion with around 7 per cent penetration. It is projected to become a US$ 260 billion business over the next decade with around 21 per cent penetration.
Apparel Retailing : In India, clothing retail accounts for 36% of organized retail business. With the advent of modern format retailers and the growth of plastic cards, affluent urban Indian women are shopping like never before. Although the apparel industry seems to be Indian apparel in the maturity stage and growth is slow, fashion trend cycles are accelerating retail industry The Indian apparel retail industry representing a compound annual growth rate (CAGR) of 9.9%. Ranked as the top retail destination globally & among 30 emerging markets in the world. It is the second largest untapped market after China.
SWOT Analysis : Apparel Industry Strength : Opportunities :Growing domestic market, Increasing demand for brands increase in number of malls from the middle classDemocracy provides a stable economic Research and new productand social environment, putting development can help theinternational players at ease companies to move across theEasy credit facility and plastic card value chainrevolution is increasing the purchasing Retail sector in rural India ispower, particularly of the younger almost untouched, presentinggenerations. tremendous opportunity Weakness : Threats :Predominance of unorganized sector Increased competition in the domesticTechnological obsolescence in the marketsupply chain Cheaper importTaxation hindrances: Changing Government’s policy on FDI Price of land and lease rentals are highVAT and multiple tax levies. while margins are lowInconsistent octroi and entry taxstructure.
Traditional Retail Modern Retail Cycle: Cycle:
APPAREL RETAIL PYRAMID New Market, Bada Bazaar etc
ORGANISED REtail APPAREL FORMAT IN INDIAFORMAT DESCRIPTION EXAMPLEDEPARTMENT Average size varies between 10,000 sq. ft. and 60,000 Shoppers stopSTORES sq. ft. Lifestyle(MBO) Offer a large layout with a wide merchandise mix. Pantaloons WestsideSPECIALTY Single-category stores ProvogueSTORE Focus on individuals and group clusters of Spykar the same class, with high product loyalty Levi’sDISCOUNT Average size — 10,000 sq ft Big BazaarSTORES • Offer wide range of products, mostly branded, at discounted pricesFACTORY Average size — 600 sq ft Spykar FactoryOUTLETS Relatively small retail store offering slightly Outlet defective branded product at a discount Provogue Factory OutletSUPERMARKET Average size — 75,000 sq ft Metro Offer several thousand stock-keeping units Bharti-WalMart (SKUs) and generally have bulk buying requirements.
Apparel’s are essentially segmented into Mens wear, Women wear & Kids •Consist of trousers, shirts, jeans, t-shirts, coats etc MENS •The Indian menswear market has average revenue of $11.8 billion representing a compound annual growth rate (CAGR) of 8.6% •Consist of dresses, sarees, tops, jeans, trousers etc •Indias women’s wear market generates average revenues of $10.2 WOMENS billion representing a compound annual growth rate (CAGR) of 11.6 percent . Consists of uniform, trousers, jeans, t-shirts etc •Kids wear is not a small business anymore. Driven by huge demand KIDS from brand conscious children, the Indian kidswear retail market is booming.
Sneak Peek at the major Retailing Giants –History, Target Markets & Business Strategy :
Multi Brand Outlets:Name Shoppers Stop Pantaloon Lifestyle West Side GlobusNO. OF 34 45 25 49 27STORESAVG FLR Around 40,000 Around Around 15000 - 15000SIZE(sq ft) 28000 50000 30000ABOUT By K.Raheja Group It is a flagship A part of part of ISOTHE Offers wide variety enterprise of Landmark Tata Group, certifiedCOMPANY of ‘The Future group Trent Ltd with ERP national and Group’ (Dubai) enable international Became public supply chain brands. limited in 1991BUSINESS Offers Drives 75% of One stop Has created Has an in-STRATEGY concessionaire its sales from shop for niche for its house space to brand, private labels 350 national brand of team of Primarily catering like JM Sports, &internatio merchandis designers to Bare Denim nal e but lifestyle retailing etc Brands creating a actual segment loyal production is following outsourced.
Exclusive Brand Outlet: Casuals:NAME SPYKAR PROVOGUE LITTLE KOUTONS KILLER KANGAROOSNUMBER OF Above 127 10 850 6EXCLUSIVE 200STORESAVAILABLE Above 223 Above NA 800IN NUMBER 700 600OF MBOSABOUT Incorporated Incorporated Incorporated Incorporated IncorporatedTHE in 1992 in 1997 in in 1991 in 1989COMPANY Into fashion Launched 1976 Company has An apparels & brand An no middle International accessories ‘PROVOGUE’ International agencies brand since Focused on in 1998 brand Focused on 1994 youth Focused on Focused on upper & Focused on urban kids upper 16 –30 years consumers wear middle class of segment society
Sports Wear:NAME NIKE ADIDAS REEBOK PUMA FILANUMBER Above Above Above 400 51 15OF 1000 600EXCLUSIVESTORESAVAILABLE Above Above Above 500 NA Around 800IN NUMBER 600 500OF MBOSABOUT Incorporated Incorporate Incorporate Incorporate IncorporateTHE in 2004. d d in d in d inCOMPANY Entered into in 1989 in 1995 in India 2005 in India India in 2009 India through India It is German An Italian 7 year license Focused on subsidiary sportswear sports agreement sportswear of German company lifestyle with Sierra apparel sportswear Each outlets company Industrial company have It plans to Enterprise Adidas retailing setup space of 60 – 70 1200 sq stores by ft 2014
Formal Wear : NAME PARK JOHN MARKS & LOUIS PETER AVENUE PLAYERS SPENCER PHILIPPE ENGLAND NUMBER 22 220 21 Above 57 400 OFEXCLUSIVE STORESAVAILABLE Above Above 1300 NA NA Above 1600IN NUMBER 550 OF MBOS ABOUT subsidiary of Launched by brand of owned owned THE Raymond Ltd ITC Ltd Marks & by Madura by MaduraCOMPANY Raymond has In 2005, John Spencer Garments Garments its own MBOs Players was Reliance the retail the retail offering its declared India arm of arm of private label. The Pvt Ltd is a Aditya Birla Aditya Birla Focused on Most Joint Group’s Group’s corporate Admired Venture garment garment wear Shirt An division division Brand of the International Plans Year brand expansion in
Case Study :Pantaloons•Large Indian retailer, part of the Future Group, operates multipleretail formats in both the value and lifestyle segment.• Headquartered in Mumbai• Over 1,000 stores across 71 cities, employs over 30,000 people.• As of 2010, it was the countrys largest listed retailer by marketcapitalization and revenue.•The group owns several leading formats including Pantaloons, BigBazaar, Food Bazaar, Home Town, eZone and Central. Pantaloons is among Indias largest chains of fashion stores.Pantaloons Fresh Fashion, with its focus on fresh look, feel andattitude offers, trendy and hip collections that are in sync with thehopes and aspirations of discerning young and young-at-heartconsumers
STORE DISPLAYGondolas Hanging displayShelf Display Basket Display
PRODUCT PORTFOLIO •Ajile •Annabelle •Bare LeisureMen’s Wear • Chalk Kid’s Wear Women’s Wear •Honey •Bare Denim • Sach •Rangmanch •Lombard • Pink & Blue •Ajile •Umm • Bare 7214 •Trisha •Urbana • Umm •Akriti •JM Sports • RIG •Bare Denim •John Miller • Lee Cooper •ALL •RIG • Bare Kids •RIG •Urban Yoga • Liliput •Scullers •Indigo Nation •Umm •Lee Cooper •Scullers
PROMOTIONALSTRATEGY: GIFT VOUCHERS GREEN CARDS 20
SHOPPERS STOP :Shoppers Stop is one of the first retail chains started in India in 1991 by the Raheja Group. It now boasts of 27 retail outlets across the country and is now one of Indias largest retail chains. Vision: To be a Global Retailer in India and Maintain No.1 position in the Indian Market Positioning Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its mission, vision and values. Range of merchandise… Apparel brands like Provogue, Color Plus, Arrow, Levi’s, Scullers, Zodiac & Shoppers Stop retails its own line of clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers’ Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill. Their motto: “We are responsible for the goods we sell”.
Customer ProfileShoppers’ Stop’s has core customers They fall between the age group of 16 years to 35 years, Majority of them being families and young couples witha monthly household income above Rs. 20000A large number of Non - Resident Indians visit the shop forethnic clothes in the international environment they areaccustomed to.India – 2000 &Beyond… Expanding its operations to Bangalore, Hyderabad, Jaipur,Delhi, Chennai, Mumbai (Andheri, Bandra, Chembur,Kandivli, Mulund), Pune, Gurgaon and Kolkata, Shoppers’Stop is today recognised as India’s premier shoppingdestination. With a customer entry of about 50,000customers a day, a national presence with over 6,00,000square feet of retail space and stocking over 250 brands ofgarments and accessories, Shoppers’ Stop has clearlybecome a one stop shop for all customers.
The IT Backbone Realizing the role of IT way back in 1991, Shoppers’ Stop was among the first few retailers to use scanners and barcodes and completely computerised its operations. Today it is one of the few stores in India to have retail ERP in place, which is now being integrated with Oracle Financials and the Arthur Planning System, the best retail planning system in the world. Future Plans Shoppers’ Stop aims to position itself as a global retailer. The company intends to bring the world’s best retail technology, retail practices and sales to India. Currently, they are adding 4 to 5 new stores every year
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BIBLIOGRAPHY: Indian Institute of Management Ahmedabad Research Paper – Preeta H Vyas. Google Indian Textile & Apparel Industry Research Paper By Arvind Sanghal - Technopark Case Study Reference – Pantaloons & Shoppers Stop IBS Research Paper