Consumer Behavior in Women’s Western WearGroup – 1Aditya GandotraKevin D’SilvaShubham KhuranaSuvid AnandTapan Malhotra

Objectives of our project Consumer Research QuestionsWho all are buying? (Identify Segments)How they different from each other?Which attributes do they consider important?What influences them to buy a brand of their choice?

United Colors of BenettonGlobal fashion brand owned by Benetton Group: HQ - Treviso, ItalyFounded by Benetton family in 1965; now global network of 6200 stores in 120 countries with yearly turnover of €2 billionCasual clothing marketed as ‘United Colors of Benetton’Ads by Oliviero Toscani contain striking images unrelated to the productsE.g. Ads on AIDS, war, death row inmates and such controversial subjects ISSUE : Below average sales growth in India

Global fashion brand owned by Benetton Group: HQ - Treviso, Italy

Founded by Benetton family in 1965; now global network of 6200 stores in 120 countries with yearly turnover of €2 billion

Casual clothing marketed as ‘United Colors of Benetton’

Ads by Oliviero Toscani contain striking images unrelated to the products

UCB’s CompetitorsUCB’s key competitors in the female casual clothing market are Levi’s, Pepe, Wrangler, Lee, Tommy Hilfiger, WLS However, Benetton considers all apparel brands as competitionTo counter other international brands, UCB has international retail formats offering wide range of styles and optionsAdvertising different from competitors – on lines of international campaign – controversial but cut-throughDistinctiveness from competitors seen in exquisite Italian styling and options and international garments at Indian pricesGurgaon factory to increase scale to compete - but higher-end garments imported from Milan, Italy

UCB’s key competitors in the female casual clothing market are Levi’s, Pepe, Wrangler, Lee, Tommy Hilfiger, WLS

However, Benetton considers all apparel brands as competition

To counter other international brands, UCB has international retail formats offering wide range of styles and options

Advertising different from competitors – on lines of international campaign – controversial but cut-through

Distinctiveness from competitors seen in exquisite Italian styling and options and international garments at Indian prices

Gurgaon factory to increase scale to compete - but higher-end garments imported from Milan, Italy

Recent trends in Indian apparel industryIndian consumers have converted to ready-to-wear; designers have introduced prêt lines for ready-to-wear marketIndian companies see a huge opportunity in partnering with luxury brands wishing to enter IndiaApparel brand have responded to increasing demand for organic friendly products with use of more organic cottonSince kids are heavily influenced by icons, character licensing very critical in apparel industryCompanies are exploring new' locations and tying up with cafés/restaurants for dedicated merchandisingM&As and backward integration used to cut costs

Indian consumers have converted to ready-to-wear; designers have introduced prêt lines for ready-to-wear market

Indian companies see a huge opportunity in partnering with luxury brands wishing to enter India

Apparel brand have responded to increasing demand for organic friendly products with use of more organic cotton

Since kids are heavily influenced by icons, character licensing very critical in apparel industry

Companies are exploring new' locations and tying up with cafés/restaurants for dedicated merchandising

M&As and backward integration used to cut costs

Understanding the ‘product’Product RangeChosen Categories

Exploratory Study MethodologyProvided us with variables & methodologyProvided us with factors relevant to Indian contextProvided us with decision model & critical variables

In-Depth Interviews Show pictures of Western Outfits and ask them to choose, the probe them about their choice. Expected Variables: Color, Texture, Line, Form, Rhythm, Balance, Proportion In-depth questions regarding their preferences and shopping behavior Expected Variables: Experience Enjoyment, Address of Emotions, Dominance, Same as in sensory dimension Ask them to pick their favorite apparel item and questions regarding that Expected Variables: Message of Reality, Message of Fantasy, Cognitive Enjoyment, Same as in emotional dimensionTarget Consumer Characteristics: A consumer with confidence, with a strong interest in her physical appearance, who is loyal towards certain brands, who enjoys shopping for clothesSampling Used: Purposive Sampling

Variables Identified Using the PIL Model, the following variables were identified:Physical: Health, Comfort, Fabric, Body Shape, Balance/Fit, Body Exposure, Climate, Functionality, Image Judgment, SeasonalityIdentity: Mood, Color, Boldness, Taste, Sensuality, Beauty, Attraction to particular clothes, Detachment, Personal Style, Elegance, Celebrity InfluenceLifestyle: Exclusivity, Fashion, Ease of care, Profession, Durability, Opposite Gender, Same Gender, Moral Conventions, Welfare, Quality, Versatility, Brand, Price, Age Appearance, Ethnicity, Religion

Classification of Variables according to Self-Concept

Conceptualized Decision Making ModelPrice RangeComplimentarityPresent WardrobeClimatePersonal StyleExternal InfluenceColorPatternsFashionDesignBrandFabric / MaterialFitComfortBody ExposureBeautySensualityEleganceImage JudgmentQualityDurabilityExclusivityWord of MouthFactors / Variables which play a major role specific to each stage

Descriptive ResearchCustomer SurveySample Size of 82 womenMostly aged between 19-28Wear western wear more than 3 days a week.Have purchased western wear in the last 3 months.Data Collected

Choosing Surrogates Fashion ForwardnessLikes to buy clothes which have just hit the streetsLikes to buy what’s in vogueLikes to experiment with different styles and looksHedonistic / Impulse buyerHas little or no idea about what she wants to buyEnjoys shopping and spends a lot of time doing it17 statements were formedResponses were taken on a 7 point scale[ -3 Strongly Disagree | +3 Strongly agree ]

Cluster analysisK Means Cluster Analysis was performed. Following Cluster centers were obtained.

Results Obtained5 attitudinal clusters emergedFashion LeaderLoyal ConformistPractical Fashion SeekerVariety SeekerBalancedInterpretation on scores helped differentiate attitudes

Fashion Leaders Fashion is very important and who are very keen to be dressing in the latest trends. Shopping for clothes is a pleasure and they will invest considerable time locating the perfect outfit. Not need based shoppers. They like to experiment with new looks and don’t look for factors like durability etc. They are highly emotional and mostly shop from international fashion labels.

Loyal Conformist Looking good is not first priority, dressing in commonly acceptable clothes is. Unwilling to buy clothes just for the sake of trends. The key features they are looking for are fit and comfort and ‘acceptability’. Ideal scenario would be to return to the same brand, which is tried and tested.

Practical Fashion Seeker Require clothes which are comfortable as well as fashionable. They are well aware of international fashion trends and brands but shop to suit their own individuality rather than relying entirely on the dictates of the season. Highly rational buyers, they may occasionally splash out on an expensive label but are definitely not bargain shoppers.

Require clothes which are comfortable as well as fashionable.

They are well aware of international fashion trends and brands but shop to suit their own individuality rather than relying entirely on the dictates of the season.

Highly rational buyers, they may occasionally splash out on an expensive label but are definitely not bargain shoppers.

Variety Seeker Little or no idea of what they are going to buy. Impulsively tend pick what they think will suit them. Take an emotional approach to shopping clothes. They do not have strong preferences for particular shops, and prefer to look through a number of key stores to find the best value (comparative shoppers). Tend to buy in mainstream malls where they know they will be able to find plenty of variety of clothes.

Little or no idea of what they are going to buy.

Impulsively tend pick what they think will suit them. Take an emotional approach to shopping clothes.

They do not have strong preferences for particular shops, and prefer to look through a number of key stores to find the best value (comparative shoppers).

Tend to buy in mainstream malls where they know they will be able to find plenty of variety of clothes.

BalancedThey are somewhat rational purchasers who will only try out the latest fashions if they know it will suit them. But they do make some attempt to keep up with fashion trends by buying the odd item here and there that will mean they are not completely out-of-date. They prefer Indian brands since in their opinion domestic brands offer better fits/silhouettes and are comparable in quality to any other international brand

They are somewhat rational purchasers who will only try out the latest fashions if they know it will suit them.

But they do make some attempt to keep up with fashion trends by buying the odd item here and there that will mean they are not completely out-of-date.

They prefer Indian brands since in their opinion domestic brands offer better fits/silhouettes and are comparable in quality to any other international brand

Putting things in perspective

Factor AnalysisRate the importance of following factors while making a purchase decision-3 -2 -1 0 1 2 3Limited the number of factorsFactor Analysis

Factors Obtained

One way ANOVA – Kruskall Wallis Test (Non Parametric)Clusters -> Grouping variableFactor scores -> Test variables

Brands consideredConsideration Set evaluated product category wise – few brands offers wardrobe solution

Consumer InsightsNo standardized product.Unsatisfactory experience doesn’t mean no trialOnly repeated disconfirmation will drive away consumers. Consideration set large for most womenStandard products across brands. Ex. White cotton shirtCategory subject to comparison.Need based shopping For formals consideration set is smaller

Consumer InsightsFocus to shift towards improving service encounter than promotions.Customer loyalty : Mostly behavioral (based on satisfactory past experiences) rather than attitudinal (brand pull)Value of Product : Women mostly seek the following benefits How many compliments will I receiveWhere all can I wear this?How does it feel when worn?Merchandize selection should be based on three parameters – Fashion Quotient, Versatility Quotient and Comfort Quotient

Consumer InsightsLong-term and permanent positive brand associations critical for Loyal ConformistsPractical fashion seekers value "good buys" e.g. international brands at affordable pricesSocial acceptance overrides any sense of experimentationClothes seen as basic functional necessity not as a lifestyle enhancer.Most likely to enroll for loyalty programsResemble "fashion leader" in terms of fashion consciousness But they apply their self-concept to the trends rather than reverse.Cognitive dimension of the brand must be harped on.

And more Consumer Insights For fashion leaders, fashion and styling are much more critical than price.This segment willing to pay a premium for fashion.Need to strengthen affective dimension of the brand.The self-concept of the individual depends on the brand personality to a reasonable extent.All promotions to focus on self-concept.

Pre 2004“Craftsmanship”Post 2004“Your Style”

External InfluencesWoM emerged as most important influence. Women actively discuss clothing and fashion within their social circles.TV, Magazines also important. Women use it for clothing ideas.Store window very important as women have little idea what they want to buy. Drives impulse purchase.Mostly Fashion Leaders and PFS

RecommendationsUCB is in consideration set of most womenWoM most important influenceVersatility an important benefit for womenFocus to shift toward retail productivity (availability, store staff etc.) service encounter & merchandize improvement.Need to create WoM by leveraging social media.Use social networking to generate WoM and identify opinion leaders. Make them brand evangelists.Increased use of surrogate indicators showing versatility.

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