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i | P a g e
A Study of Buying Behaviour of Working Adults towards
Branded Apparels in Selected Indian Cities
A dissertatio...
ii | P a g e
Executive Summary
The Indian apparel market has demonstrated resilience and growth in an environment
characte...
iii | P a g e
Certificate
This is to certify that this Project Report titled “A Study of Buying Behaviour of Working
Adult...
iv | P a g e
Acknowledgement
I am deeply obliged to my faculty guide Prof. Semila Fernandes, for her continual support
and...
v | P a g e
Table of Contents
S.NO TOPICS PAGE
NO.
1 Introduction 1
2 Review of Literature 10
3 Objectives, Limitations an...
1 | P a g e
1. Introduction
1.1 Retail
Retailing involves the sale of goods/merchandise for personal or household use, may...
2 | P a g e
In developed countries, so much of retail is organized that we rarely hear the term used.
Instead, categorizat...
3 | P a g e
These figures are by no means static; with every passing year, retailers are becoming
increasingly globalized ...
4 | P a g e
one-fifth of the gross domestic product (GDP), down from 59 percent in 1950.
The Indian retail sector accounts...
5 | P a g e
The Food & grocery segment is the largest retail category and accounts for ~70% of the total
retail market, fo...
6 | P a g e
Below is a category-wise break-up of Organized Retail in India. At 35%, Food & Grocery
has the highest share o...
7 | P a g e
1.6.1. The Menswear Market
With a market size of INR 87,500 crore (USD 16 billion) in 2012, menswear is the la...
8 | P a g e
In addition to the traditional colours, viz. black, blue, brown and grey, Indian men have
started experimentin...
9 | P a g e
Market Trends
With increasing women in the workforce, and the growing economic independence of
women, the dema...
10 | P a g e
2. Review of Literature
In this chapter, the concepts relevant to the present study are compiled and presente...
11 | P a g e
shop more in recent days. The increase in salary class people has also created a new platform
of consumers. M...
12 | P a g e
Fig 2.1. (Source: Philip Kotler)
2.3.1. Cultural Factors
Consumer behaviour is deeply influenced by cultural ...
13 | P a g e
• Reference Groups
Reference groups have potential in forming a person attitude or behaviour. The impact of
r...
14 | P a g e
If the income and savings of a customer is high then he will purchase more expensive
products. On the other h...
15 | P a g e
marketers are interested in them. Marketers can change the beliefs and attitudes of customers
by launching sp...
16 | P a g e
Specifically, the emergence of the latter form of customer need plays an integral role in
customer impulse sh...
17 | P a g e
2.4.4. Purchase
Making the purchase corresponds to the fourth stage of customer decision making process.
Fact...
18 | P a g e
Fig 2.3.
Pricing Objective can be one or more of the following:
 Survival
 Maximum Current Profit
 Maximum...
19 | P a g e
Enlisted below are a few prominent pricing methods:
 Mark-up Pricing
The most elementary pricing method is t...
20 | P a g e
In going rate pricing, the firm bases its price largely on competitors’ prices. The firm
might charge the sam...
21 | P a g e
 The influence of other marketing mixes elements
The final price must take into account the brand’s quality ...
22 | P a g e
Fig 2.4.
Marketing management must make four important decisions when developing an advertising
program:
2.7....
23 | P a g e
service or of introducing a new theme into an existing marketing program. Reminder
advertising might be used ...
24 | P a g e
 Message strategy
The first step in creating effective advertising messages is to plan a message strategy – ...
25 | P a g e
The major media types are newspapers, television, direct mail, radio, magazines, outdoor
and the Internet. Ea...
26 | P a g e
general media type. For example, television vehicles include Scrubs, and News etc.
Magazine vehicles include ...
27 | P a g e
the stores to buy clothing and fashion. The branded retail shops are opening up in both cities
and villages c...
28 | P a g e
manufacturer to consumer. The distribution channel is a group of firms that assist the
movement of products f...
29 | P a g e
3. Objectives, Limitation and Scope
3.1. Objectives of the Study
1. To study the effect of pricing, offers an...
30 | P a g e
4. ResearchMethodology
A study can be initiated with a proper
design and methodology to bring out the
suitabl...
31 | P a g e
questions to have reliability of response. Utmost effort is employed to ensure removal of
biases in the quest...
32 | P a g e
Below is the detailed timeline for the project:
Activity Timeline
Project Proposal - Initial research and sub...
33 | P a g e
5. Results and Discussion
The questionnaire that was distributed using the www.surveymonkey.com is as below:
...
34 | P a g e
7. Which city do you currently live in?
 Delhi/NCR
 Bangalore
 Mumbai
 Others
8. About how often do you s...
35 | P a g e
12. How much of your clothes are on sale or discounted when you buy them?
 All of them
 Most of them
 Only...
36 | P a g e
The data was collected from 155 respondents and the composition of the same is depicted by
the table below.
A...
37 | P a g e
above 40 years and few respondents who are not employed. This study is about “the buying
behaviour of working...
38 | P a g e
5.1.2. Gender/Sex
 Gender-wise Age Comparison
 Interpretation 1 – Majority of the respondents (80%) belong ...
39 | P a g e
5.1.3. Marital Status
5.1.4. Education
40 | P a g e
 Gender-wise Education Comparison
 Interpretation 2 – More female respondents are higher educated than male...
41 | P a g e
5.1.6. Income
There is a steady increase in the income group in the middle class and upper middle class
secto...
42 | P a g e
 Gender-wise Income Comparison
 Interpretation 4 – Most male respondents earn more than female respondents
43 | P a g e
5.1.7. Current City
 Gender-wise comparison
 Interpretation 5 – Female respondents represent all three citi...
44 | P a g e
5.2. Frequency of Purchase
About how often do you shop for clothes?
Answer Options
Response
Percent
Response
...
45 | P a g e
5.2.1. Frequency of Purchase: Gender-wise comparison
5.2.2. Frequency of Purchase: Gender-wise comparison (An...
46 | P a g e
 The results indicate that majority of the population, buys apparels once a month or
once in 3 months. Femal...
47 | P a g e
5.2.3. Frequency of Purchase: Income-wise comparison
48 | P a g e
5.2.4. Frequency of Purchase: Another Income-wise comparison
49 | P a g e
 Region-wise comparison shows that more respondents from NCR and Mumbai buy
once a month than Bangalore wher...
50 | P a g e
 Store Preference: Gender-wise Comparison
 Store Preference: Income-wise comparison
51 | P a g e
 Store Preference: Region-wise comparison
 Store Preference: Education-wise comparison
 Interpretation 8 –...
52 | P a g e
for women department store is the clear cut winner (70%). Discount stores and factory
outlets are a strict no...
53 | P a g e
 Ticket Size: Gender-wise comparison
 Ticket Size: Region-wise comparison
54 | P a g e
 80% of female respondents spend between Rs. 1000 – Rs. 3000 in a single shopping
while 57% of male responde...
55 | P a g e
5.5. Importance of factors that influence purchase decision (Price, Band perception, Fit
& feel, Style & appe...
56 | P a g e
 Purchase Factors: Gender-wise and Region-wise comparison
57 | P a g e
 Interpretation 10 – Among the factors influencing a consumer’s apparel purchase
decision, fit, feel, appear...
58 | P a g e
 Impact of discounts: Region-wise comparison
The results above re-emphasize the point that discounts and sal...
59 | P a g e
 Factors influencing Brand Perception: Gender-wise comparison
 Factors influencing Brand Perception: Region...
60 | P a g e
 Factors influencing Brand Perception: Income-wise comparison
 Interpretation 11 – A whopping 71% responden...
61 | P a g e
5.8. Influence of Reference Groups
 Influence of Reference Groups: Gender-wise comparison
62 | P a g e
 Influence of Reference Groups: Region-wise comparison
 Influence of Reference Groups: Income-wise comparis...
63 | P a g e
 77% respondents rated 3 and above and 40% respondents rated 4 and above, the
importance of reference groups...
64 | P a g e
 Influence of Advertisements: Gender-wise comparison
 Influence of Advertisements: Region-wise comparison
...
65 | P a g e
Interpretation 13 – While building an apparel brand’s perception, females are more
influenced by advertisemen...
66 | P a g e
5.10. Influence of the Mode of Advertisement
 Influence of the Mode of Advertisements: Gender-wise comparison
67 | P a g e
 Influence of the Mode of Advertisements: Region-wise comparison
 Influence of the Mode of Advertisements: ...
68 | P a g e
 Interpretation 14 – Television and radio advertisements are the most popular modes of
advertisements for bo...
69 | P a g e
 Preference of Store-format
 Purchase of discounted goods
70 | P a g e
 Interpretation 15 – Footfall driven to company/franchise owned retail outlets, is mainly
through television...
71 | P a g e
6. Conclusion
6.1. Interpretations from the Survey Results
From the data analysis conducted in the previous p...
72 | P a g e
youth earning between Rs. 2,00,000 to Rs. 10,00,000 annually, but as the income goes
beyond Rs. 10,00,000, co...
73 | P a g e
advertisement, are a distant second. The survey results also suggest that the influence
of advertisement towa...
74 | P a g e
equally. Income levels don’t have any significant impact on the mode of
advertisement an individual prefers.
...
75 | P a g e
d) Men also prefer buying from company/franchise owned retail outlets but most
women don’t.
e) Department sto...
76 | P a g e
e) Footfall in department stores, to much extent, is insulated from changes in
modes of advertisement. Any mo...
77 | P a g e
7. Bibliography
1. Schiffman L.G., Kanuk L. L., Kumar Ramesh S (2011). Consumer Behavior. (10th
Edition) Indi...
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A study of buying behaviour of working adults towards branded apparels in selected indian cities

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The Indian apparel market has demonstrated resilience and growth in an environment characterized by slow economic growth. The domestic apparel market, which was worth INR 207,400 crore (~USD 38 billion) as of 2012, is expected to grow at a compound average growth rate (CAGR) of 9% over the next decade. After food and grocery, it is the 2nd biggest category under organized as well as unorganized retail. Further, on 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India.
The face of Indian apparel market is changing very fast. A new class of customers with more money to spend, and a growing passion for fashion, has been generated by swift development and rising urbanization. In India’s high-growth, fast-changing retail clothing market, one can see significant new growth opportunities for foreign and domestic players. Much has been talked about all these issues viz. future of apparel retail in India, the impact of foreign players on the domestic apparel retailers etc. But we should not forget that customers are the end beneficiary of all the retail activities. As a democratic country with high growth rates, the consumer spending has risen sharply as the youth population (33 percent of India‘s population is below the age of 15) has seen a significant increase in its disposable income. The apparel fashion plays a paramount role in shaping apparel consumerism. As lifestyles change, fashion in India is becoming more diversified, as in the Western countries. Technology, ideas and lifestyles are moving concurrently and quickly. Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. Companies and brands that offered monotonous and mundane products for years, have now multiplied their product ranges and new appealing styles, shapes and forms are being launched each season by them. Hence, it becomes crucial to find out the perception of customers towards the various retail developments in apparel segment and the factors responsible for choosing a particular apparel store.
In the view of the above, an attempt was made not only to analyze the customers’ perception towards various retail developments in apparel segment but also to find out their buying behaviour with special reference to three select regions in India – Delhi & NCR, Mumbai and Bangalore.

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A study of buying behaviour of working adults towards branded apparels in selected indian cities

  1. 1. i | P a g e A Study of Buying Behaviour of Working Adults towards Branded Apparels in Selected Indian Cities A dissertation submitted in partial fulfilment of the requirement for the award of Degree in Master of Business Administration (Marketing) Submitted By SHUBHA BROTA RAHA Under the Guidance of PROF. SEMILA FERNANDES Symbiosis Institute of Business Management, Bangalore January, 2014
  2. 2. ii | P a g e Executive Summary The Indian apparel market has demonstrated resilience and growth in an environment characterized by slow economic growth. The domestic apparel market, which was worth INR 207,400 crore (~USD 38 billion) as of 2012, is expected to grow at a compound average growth rate (CAGR) of 9% over the next decade. After food and grocery, it is the 2nd biggest category under organized as well as unorganized retail. Further, on 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India. The face of Indian apparel market is changing very fast. A new class of customers with more money to spend, and a growing passion for fashion, has been generated by swift development and rising urbanization. In India’s high-growth, fast-changing retail clothing market, one can see significant new growth opportunities for foreign and domestic players. Much has been talked about all these issues viz. future of apparel retail in India, the impact of foreign players on the domestic apparel retailers etc. But we should not forget that customers are the end beneficiary of all the retail activities. As a democratic country with high growth rates, the consumer spending has risen sharply as the youth population (33 percent of India‘s population is below the age of 15) has seen a significant increase in its disposable income. The apparel fashion plays a paramount role in shaping apparel consumerism. As lifestyles change, fashion in India is becoming more diversified, as in the Western countries. Technology, ideas and lifestyles are moving concurrently and quickly. Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. Companies and brands that offered monotonous and mundane products for years, have now multiplied their product ranges and new appealing styles, shapes and forms are being launched each season by them. Hence, it becomes crucial to find out the perception of customers towards the various retail developments in apparel segment and the factors responsible for choosing a particular apparel store. In the view of the above, an attempt was made not only to analyze the customers’ perception towards various retail developments in apparel segment but also to find out their buying behaviour with special reference to three select regions in India – Delhi & NCR, Mumbai and Bangalore.
  3. 3. iii | P a g e Certificate This is to certify that this Project Report titled “A Study of Buying Behaviour of Working Adults towards Branded Apparels in Selected Indian Cities” is based on my original research work, conducted under the guidance of Ms. Semila Fernandes towards partial fulfillment of the requirement for award of the Master’s Degree in Business Administration (Marketing), of the Symbiosis Institute of Business Management, Bangalore. No part of this work has been copied from any other source. Material, wherever borrowed has been duly acknowledged. Signature of Author/Researcher
  4. 4. iv | P a g e Acknowledgement I am deeply obliged to my faculty guide Prof. Semila Fernandes, for her continual support and encouragement during the course of the project. I also take this opportunity to express my sincere gratitude to the website www.surveymonkey.com which has been extensively used for data collection and data analysis. The intelligent built-in-analytics of the website have been instrumental in the successful completion of this project. I sincerely thank SIBM Bangalore Director Dr. Rajesh Panda, Deputy Director Dr. V. V. Ajith Kumar and Associate Professor Dr. Anupam Mitra for being the guiding force behind the executive MBA students of SIBM Bangalore. I extend my acknowledgement to the SIBM-B library for the innumerable materials, articles and books I have referred to. Also, I express my heartfelt thanks to my family members and friends, for their invaluable co-operation and support. Last, but not the least, I extend my gratitude towards Dr. Philip Kotler for inspiring generations with his concepts, ideas and books and motivating myriad students across the globe to study and enjoy the subject of marketing. -- Shubha Brota Raha MBA (Executive Education) 2011-14 SIBM, Bangalore
  5. 5. v | P a g e Table of Contents S.NO TOPICS PAGE NO. 1 Introduction 1 2 Review of Literature 10 3 Objectives, Limitations and Scope 28 4 Research Methodology 29 5 Results and Discussions 32 6 Conclusion 70 7 Bibliography 76
  6. 6. 1 | P a g e 1. Introduction 1.1 Retail Retailing involves the sale of goods/merchandise for personal or household use, may be from a fixed location such as a division store or kiosk, or away from a fixed location and related sub-linked services. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as for the public. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. (Source: Wikipedia) Fig 1.1. 1.2. Organized and Unorganized Retail Organized retail or modern retail is usually chain stores, all owned or franchised by a central entity, or a single store that is larger than some cut-off point. The relative uniformity and standardization of retailing is the key attribute of modern retail. The size of each unit can be small so that a chain of convenience stores is modern retail. A single large department store is also modern retail. (Definition by: Indian Council for Research on International Economic Relations).
  7. 7. 2 | P a g e In developed countries, so much of retail is organized that we rarely hear the term used. Instead, categorizations such as ‘independents’ and ‘mom-and-pop stores’ are more common, and are typically references to what is known globally as unorganized retail. The table below, taken from a 2006 report by Technopak Advisors Pvt. Ltd. is a country-wise comparison of unorganized and organized retail that illustrates how diverse retail markets are globally. Country Total Retail Sales (USD) Share of Organized Retail (%) Share of Unorganized Retail (%) USA $2,983,000,000,000 85% 15% Japan $1,182,000,000,000 66% 34% China $785,000,000,000 20% 80% United Kingdom $475,000,000,000 80% 20% France $436,000,000,000 80% 20% Germany $421,000,000,000 80% 20% India $322,000,000,000 4% 96% Brazil $284,000,000,000 36% 64% Russia $276,000,000,000 33% 67% South Korea $201,000,000,000 15% 85% Indonesia $150,000,000,000 30% 70% Poland $120,000,000,000 20% 80% Thailand $68,000,000,000 40% 60% Pakistan $67,000,000,000 1% 99% Argentina $53,000,000,000 40% 60% Philippines $51,000,000,000 35% 65% Malaysia $34,000,000,000 55% 45% Czech Republic $34,000,000,000 30% 70% Vietnam $26,000,000,000 22% 78% Hungary $24,000,000,000 30% 70% Table 1.1. (Source: http://reurbanist.com/2012/08/unorganized-and-organized-retail-a-global-comparison)
  8. 8. 3 | P a g e These figures are by no means static; with every passing year, retailers are becoming increasingly globalized and the percentage of unorganized retail in developing countries is declining. Source: http://reurbanist.com/2012/08/unorganized-and-organized-retail-a-global-comparison/ 1.3. Shopping Shopping is an activity in which a customer browses the available goods or services presented by one or more retailers with the intent to purchase a suitable selection of them. In some contexts it may be considered a leisure activity as well as an economic one. Fig 1.2. The shopping experience can range from delightful to terrible, based on a variety of factors including how the customer is treated, convenience, and mood. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. 1.4. Indian Retail Currently, India is one of the fastest growing economies in the world and by 2030 India would be one of the Top 5 economies in terms of GDP. Agriculture now accounts for only
  9. 9. 4 | P a g e one-fifth of the gross domestic product (GDP), down from 59 percent in 1950. The Indian retail sector accounts for over 20% of the country’s gross domestic product (GDP) and contributes 8% to total employment. Fig 1.3. The cumulative foreign direct investment (FDI) inflows in single-brand retail trading, during April 2000 to June 2011, stood at 69.26 million USD. The current estimated value of the Indian retail sector is about 500 billion USD and is pegged to reach 1.3 trillion USD by 2020. The penetration level of modern retail (currently 5%) is expected to grow about six times from the current 27 billion USD to 220 billion USD in 2020, across all categories and segments. Below is the list of some of the key players in Indian Retail Sector. Table 1.2.
  10. 10. 5 | P a g e The Food & grocery segment is the largest retail category and accounts for ~70% of the total retail market, followed by the Apparel Sector. In terms of financial returns, Apparel is the most attractive product category amongst retail product categories both in terms of Returns on Capital Employed and EBITDA. Garmenting & Technical Textiles are the most attractive segments within the Apparel value chain in terms of ROA and EBITDA. Table 1.3. 1.5. Organized Retail in India The organized retail market is estimated at US$ 26 Bn and accounts for ~5% of the overall retail market for 2011. The organized retail market is projected to grow to US$ 84 Bn by 2016, @CAGR of 26%. Fig 1.4. Source: Technopak Advisors
  11. 11. 6 | P a g e Below is a category-wise break-up of Organized Retail in India. At 35%, Food & Grocery has the highest share of organized retail. Food & Grocery along with Apparel, Jewellery & Watches and Consumer Electronics & IT accounts for ~80% of the organized retail market in India in 2011. Table 1.4. Category-wise share in Indian Organized Retail (figures in Billion USD). Source: Technopak Advisors Factors driving the organised retail sector growth include the following:  Higher incomes driving the purchase of essential and non-essential products  Growth of modern trade format across urban, Tier I, Tier II and Tier III cities and towns  Evolving consumption patterns of Indian customers  New technology and lifestyle trends creating replacement demand  Increase in rural income as well as urbanisation  Increase in easy access to credit and consumer awareness  Rapid urbanisation and growing trend towards nuclear families 1.6. Indian Apparel Market The Indian apparel market has demonstrated resilience and growth in an environment characterized by slow economic growth. The domestic apparel market, which was worth INR 207,400 crore (~USD 38 billion) as of 2012, is expected to grow at a compound average growth rate (CAGR) of 9% over next decade. The recent omission of excise duty on branded apparel has provided an impetus to retailers in terms of the overall market sentiment.
  12. 12. 7 | P a g e 1.6.1. The Menswear Market With a market size of INR 87,500 crore (USD 16 billion) in 2012, menswear is the largest segment in India’s apparel market, accounting for 42% of the overall market. In comparison, womenswear makes up 38%, while kidswear comprises 20%, of the market. Market Size and Growth Projections The menswear market can be divided into various categories including woven shirts, trousers, denims, winter-wear, innerwear, T-shirts, suits, active-wear, ethnic wear and daily- wear. The woven shirts category is the single largest within the menswear market, followed by trousers and denim. The menswear market is expected to grow at a CAGR of 8.5% over the next five years to reach INR 131,000 crore (USD 24 billion) by 2017. Menswear Market in India (INR cr) 131000 87500 CAGR: 8.5% 2012 2017 (P) Fig 1.5. Source: Technopak Advisors Market Trends Menswear consumers are in a phase of transition; they no longer want to stick to wearing apparel of defined styles and silhouette but also want to experiment with the look of the clothing. The demand for occasion-specific clothing is rising within the menswear segment, e.g., the modern Indian male can be seen in active-wear at the gym in the morning; in formal shirts, trousers, and suits during office hours; in smart casuals in the evening; and in daily- wear/sleepwear at night. The demand for ethnic dressing at special occasions like marriages and social functions is also a distinct trend. Many brands have specifically forayed into men’s ethnic-wear to cater to this demand. The menswear segment is also witnessing an increase in the demand for coloured bottom- wear.
  13. 13. 8 | P a g e In addition to the traditional colours, viz. black, blue, brown and grey, Indian men have started experimenting with newer colours like red, green, orange, etc. Almost all domestic and international brands have started offering men’s bottom-wear in newer colours; they are also optimistic about the growth of coloured trousers and denim. Another interesting trend in the menswear market is the steady growth in the premium tailoring segment comprising the fashion designers and the bespoke / luxury segment. Customers in the super premium segment are willing to pay a premium to ensure that their tailor-made clothing reflects their own personality and also helps them differentiate themselves and get noticed. 1.6.2. The Womenswear Market The INR 78, 500 crore (USD 14.4 billion) worth womenswear market contributes 38% of the total apparel market of India. The growth of this market is more rapid than the menswear market. With the relatively lower penetration of brands, and the growing disposable income of modern women, this segment has become the focus of many Indian and international brands. Market Size and Growth Projections The womenswear segment comprises various categories that include sarees, salwar kameez, innerwear, blouse, winterwear, sleepwear, tops/shirts, trousers, skirts, denim, T-shirts, etc. Indian ethnicwear, which includes saree, salwar kameez, and blouse, is the biggest category within the segment with a 75% share of the entire womenswear market. The market is expected to grow at a CAGR of 9% for the next five years to reach a figure of INR 121, 400 crore (USD 22.3 billion) by 2017. Womenswear Market in India (INR cr) 121,400 78,500 CAGR: 9% 2012 2017 (P) Fig 1.6. Source: TechnopakAdvisors
  14. 14. 9 | P a g e Market Trends With increasing women in the workforce, and the growing economic independence of women, the demand for women’s westernwear is at an all-time high, thanks to which women’s westernwear is emerging a clear winner in the womenswear market. This trend is expected to continue as more women enter into the workforce or aspire to follow the lifestyle of working women. Within working women, there is a clear trend indicating the growing acceptance of women’s dresses and western formalwear. The working women in the metros and mini metros, in addition to traditional sarees and salmar kameez, are moving towards dresses, formal suits, and business attire. Though these markets may remain relatively small, they are expected to grow rapidly. Despite the trend of consumers moving away from ethnicwear, some sub-categories within women’s ethnicwear are emerging as promising business opportunities. The demand for contemporary ethnicwear with trendy look and comfort elements is accelerating. Even the traditional ethnicwear subcategory is witnessing the entrance of a growing number of organized players who assure the desired quality and right fit. The fusion of western style and cuts and even knitted fabrics with basic Indian ethnic designs is another noticeable trend in the womenswear market. 1.7. Looking to the Future Simply put, the future of the apparel market looks promising. At the same time, fashion retailers have to face some daunting challenges prior to tapping the extant opportunities. Rising real estate costs, increasing power tariffs, and supply chain inefficiencies are some of the issues that have to be tackled with utmost prudence. The growth story of Indian consumption is expected to revive in the medium to long term, but it will require improvements in the overall business performance and managerial prudence of the highest degree to benefit from this growth. To emerge a winner in a market marked by the presence of multiple players, brands and retailers have to optimize their business operations by addressing the challenges and harnessing market opportunities. Understanding the psyche of the Indian consumer, amalgamating the Indian style of functioning with western management techniques, and tailoring fashion offerings to defined consumer segments, are some of the key areas upon which fashion and innerwear players have to focus.
  15. 15. 10 | P a g e 2. Review of Literature In this chapter, the concepts relevant to the present study are compiled and presented in a logical order. To support and enrich the theoretical orientation of the present study, an attempt was made to review similar and relevant past studies and literature available in books, scholarly journals, magazines, newspapers and other resources. The concepts are related to: 2.1. Consumer 2.2. Consumer behaviour 2.3. Factors influencing consumer behaviour 2.4. Consumer decision making process 2.5. Buyer Roles 2.6. Pricing Strategies 2.7. Advertising 2.8. Retailing 2.9. Retailer 2.1 Consumer Consumers are individuals and households who buy goods and services for personal consumption. (Source: Philip Kotler) The Indian consumers are classified into five categories based on their income level by a McKinsey report taken from Indiantake.blogspot.com. It includes low level consumers (up to US $160 per month), lower middle level (US $ 165 – US $ 370per month), middle level (US $ 370 – US $ 910per month), upper middle level US $ 910 –US $ 1850 per month) and high level (above US $ 1850 per month). It is widely speculated that India will continue to be young unlike Europe and Japan, and there will be increase in smaller size household as families are not having any joint family (extended family composed of parents, their children, and the children's spouses) system which was traditional until late 1980‘s. It is generally observed that Indian consumers are becoming socially conscious and are increasingly using modern media like internet and mobile to know about the brands. The consumers are now multi-taskers; they use two or three media at a time comfortably. India has large share of young population starting from the age of 20 – 40 yrs who tend to
  16. 16. 11 | P a g e shop more in recent days. The increase in salary class people has also created a new platform of consumers. More and more people move into cities in search of better education, lifestyle and jobs. It was generally observed that Indian consumers lacked information on brand and quality. They regarded price as the foremost reason to buy fashion products, however today, consumers have become very conscious about quality and brand which shows the inclination of Indian consumers towards branded products. 2.2 Consumer Behaviour Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants Consumer behaviour involves study of how people buy, what they buy, when they buy and why they buy (1994, Kotler and Keller). It blends the elements from psychology, sociology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. There are different processes involved in the consumer behaviour. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below. (Source: http://ezinearticles.com) 2.3 Factors influencing consumer behaviour As per Prof. Philip Kotler, consumer buying behaviour is influenced by three major factors: 2.3.1 Cultural Factors 2.3.2 Social Factors 2.3.3 Personal Factors 2.3.4 Psychological factors
  17. 17. 12 | P a g e Fig 2.1. (Source: Philip Kotler) 2.3.1. Cultural Factors Consumer behaviour is deeply influenced by cultural factors such as: culture, subculture, and social class. (Source: Philip Kotler) • Culture Basically, culture is the part of every society and is the important cause of person wants and behaviour. The influence of culture on buying behaviour varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. • Subculture Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group. • Social Class Every society possesses some form of social class which is important to the marketers because the buying behaviour of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as: wealth, education, occupation etc. 2.3.2 Social Factors Social factors also impact the buying behaviour of consumers. The important social factors are: reference groups, family, role and status. (Source: Philip Kotler)
  18. 18. 13 | P a g e • Reference Groups Reference groups have potential in forming a person attitude or behaviour. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader (a person who influences other because of his special skill, knowledge or other characteristics). • Family Buyer behaviour is strongly influenced by the members of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyle. • Roles and Status Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. 2.3.3. Personal Factors Personal factors can also affect the consumer behaviour. Some of the important personal factors that influence the buying behaviour are: lifestyle, economic situation, occupation, age, personality and self concept. (Source: Philip Kotler) • Age Age and life-cycle have potential impact on the consumer buying behaviour. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. • Occupation The occupation of a person has significant impact on his buying behaviour. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. • Economic Situation Consumer economic situation has great influence on his buying behaviour.
  19. 19. 14 | P a g e If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. • Lifestyle Lifestyle of customers is another import factor affecting the consumer buying behaviour. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. • Personality Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behaviour of customers. Actually, Personality is not what one wears; rather it is the totality of behaviour of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behaviour for particular product or service. 2.3.4. Psychological Factors There are four important psychological factors affecting the consumer buying behaviour. These are: perception, motivation, learning, beliefs and attitudes. (Source: Philip Kotler) • Motivation The level of motivation also affects the buying behaviour of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction. • Perception Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. There are three different perceptual processes which are selective attention, selective distortion and selective retention. In case of selective attention, marketers try to attract the customer attention. Whereas, in case of selective distortion, customers try to interpret the information in a way that will support what the customers already believe. Similarly, in case of selective retention, marketers try to retain information that supports their beliefs. • Beliefs and Attitudes Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behaviour therefore
  20. 20. 15 | P a g e marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard. 2.4. Consumer Decision Making Process Consumer decision making process comprises five stages: (Source: Philip Kotler) 2.4.1. Need recognition 2.4.2. Information search 2.4.3. Evaluation of alternatives 2.4.4. Purchase 2.4.5. Post-purchase behaviour Marketing managers attempt to influence consumer behaviour during each of these stages as it has been discussed below in a greater detail. Fig 2.2. (Source: Philip Kotler) 2.4.1. NeedRecognition Need recognition is the first stage of consumer decision making process and it can be explained as “result of an imbalance between actual and desired needs” (Lamb et al, 2011, p.190). Interestingly, need recognition may relate to actual need of a perspective customer to a specific product or service, as well as, ‘perceived’ customer need imposed by businesses through effective marketing communication strategies.
  21. 21. 16 | P a g e Specifically, the emergence of the latter form of customer need plays an integral role in customer impulse shopping, and accordingly retailers attempt to create a ‘need’ in customer’s mind for the products and services they are offering. For instance, ‘imposed’ needs in retail environment may include ‘need’ to be refreshed and energised by consuming a range of soft drinks and energy drinks sold by retailers, as well as, ‘need’ to follow fashion trends by purchasing specific items sold by retailers. (Source: Philip Kotler) 2.4.2. Information Search The second stage of consumer decision making process relates to information search. Once a need is recognised by a perspective customer, he would seek for information about the available ways to satisfy the need. It is important to stress that “the extent to which the consumer needs to search for information depends on his current information levels and the perceived value of the additional information” (Pradhan, 2009, p.123). Customers are greatly influenced by marketing strategies of retailers during this stage of the decision – making process as well. Namely, retailers communicate information about the brand through various communication channels that might include any combination of advertising, direct marketing, public relations and publicity, personal selling, events and experiences and sales promotion (Kotler and Keller, 2009). 2.4.3. Evaluation of Alternatives During the third stage of consumer decision making process perspective customers are engaged in evaluation of alternatives. In other words, during this stage “consumers consider the relative importance of each attribute of the product-service mix” (Reid and Bojanic, 2009, p.39). Influencing customer behaviour at this stage of decision making process is critical for retailers in terms of improving their levels of customer attraction and retention. Accordingly, retailers attempt to attract customers with their competitive edges that are usually based in one or more elements of marketing mix. It is worth to be noted that “the marketing mix principles are controllable variables which have to be carefully managed and must meet the needs of the defined target group” (Kumar, 2010, p.45). Depending on the nature of their chosen strategy retailers might decide to base their competitive advantages on product (Marks and Spencer, Waitrose), price (Lidl, Netto), promotion (Tesco, Siansbury’s), and/or place (Tesco, Siansbury’s).
  22. 22. 17 | P a g e 2.4.4. Purchase Making the purchase corresponds to the fourth stage of customer decision making process. Factors playing significant role on the choice of retailer to make a purchase from at this stage include the level of satisfaction from past shopping experiences, product return policy, store atmosphere and the intensity of time pressure associated with the purchase. Moreover, it has to be stated that “if the need isn’t great and the solutions the consumer finds aren’t desirable enough to motivate a purchase, the consumer may postpone the purchase until a satisfactory opportunity presents itself” (Lake, 2009, p.29) 2.4.5. Post – Purchase Behaviour The last stage of customer decision making process involves post- purchase behaviour of customers. It goes without saying that “the post-purchase phase of the decision-making process is essential for marketers to ensure that consumers are satisfied after the purchase” (Ramesh, 2008, p.3). The level of satisfaction or dissatisfaction associated with specific shopping experience customer value brand perceptions and the nature of their repeat – purchase behaviour. Accordingly, a range of retailers invest in post-purchase communications among customers that can be done through follow-up calls or e-mails from salespeople. However, such types of practices are usually exercised in relation to high value items and it is not very popular among the majority of retailers. 2.5. Buyer Roles  INITIATOR: The first person to suggest the idea of buying.  INFLUENCER: A person whose views impact the buying decision.  DECIDER: The person who decides on what, when & where to buy the product or service.  BUYER: The actual purchaser.  USER: The person who uses/consumes the product or service. (Source: Philip Kotler) 2.6. Pricing Strategies The figure below indicates the steps involved in setting the price of a product/service.
  23. 23. 18 | P a g e Fig 2.3. Pricing Objective can be one or more of the following:  Survival  Maximum Current Profit  Maximum Market Share  Maximum Market Skimming  Product-Quality Leadership  Other Objectives After pricing objective is clear, price sensitivity, demand curve and price elasticity of demand needs to be studied. Next step is estimate all costs involved (fixed and variable) and analyze competitors’ cost, price and reaction. After all the above analysis, a firm needs to decide which pricing method suits it best and should accordingly employ the same method. (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.6.1 Pricing Methods 1 Select Final Price Method Competitor Analysis 2 3 4 5 6 Estimate Costs Determine Demand Pricing Objective
  24. 24. 19 | P a g e Enlisted below are a few prominent pricing methods:  Mark-up Pricing The most elementary pricing method is to add a standard mark-up to the product’s cost. Construction companies submit job bids by estimating the total project cost and adding a standard mark-up for profit. Suppose a toaster manufacture has a following cost and sale expectation Variable cost per unit …………….. $10 Fixed cost ………… … … . 300,000 Expected unit sales ……………. 50,000 The manufacturer’s unit cost is given by: Unit cost= variable cost + fixed cost =$10+ $300,000 =$16 Unit sales 50,000 Now assume the manufacturer wants to earn a 20% mark-up on sales. The manufacturer’s mark-up price is given by: Mark-up price = unit cost = $16 =$20 (1-desired return on sales) 1-0.2  Target Return Pricing In target return pricing the firm determines the price that would yield its target rate of return on investment (ROI). Target pricing is used to general motors, which price its auto-mobiles to achieve a 15-20 percent ROI.  Perceived Value Pricing In increasing number of companies based their price on the customer’s perceived value. They must deliver the value promised by their value proposition, and the customer must perceive this value. They use the other marketing mix elements, such as advertising and sales force, to communicate and enhance perceive value in buyer’s mind.  Value Pricing In recent years, several companies have adopted value pricing, in which they win loyal customers by charging a fairly low price for a high quality offering. Among the best practitioners of value pricing are WALL-MART, IKEA, and SOUTH-WEST airlines.  Going Rate Pricing
  25. 25. 20 | P a g e In going rate pricing, the firm bases its price largely on competitors’ prices. The firm might charge the same, more, or less than major competitors. In oligopolistic industries that sell a commodity such as steel, paper, or fertilizers, firms normally charge the same price.  Action Type Pricing This method is growing more popular, especially with the growth of the internet. There are over 2000 electronic market places selling everything from pigs to use vehicles to cargo to chemicals. One major use of actions is to dispose of excess inventories or to use good. Company needs to be aware of the three major types of actions and their separate pricing procedures *ENGLISH ACTIONS (ascending bids) *DUTCH ACTIONS (descending bids) *SEALED BIDS ACTIONS  Group Pricing The internet is facilitating methods where by consumers are business buyers can join groups to buy at a lower price. Consumer can go to volumebuy.com to buy electronics, computers, subscriptions, and another item. (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.6.2. Selecting the Final Price Pricing method narrow the range from which the company must select its final price. In selecting that price, the company must consider additional factors including physiological pricing, gain and risk sharing pricing, the influence of other marketing mix-elements on price, company pricing policy and the impact of price on other parties.  Physiological Pricing Many customers use price as an indicator of quality. Image pricing is especially effective with ego-sensitive products such as perfumes and expensive cars.  Gain-risk-sharing pricing Buyer may resist accepting a seller’s proposals because of the high perceive level of a risk. The seller has the option of offering to absorb part or all of the risk if he does not deliver the full promised value.
  26. 26. 21 | P a g e  The influence of other marketing mixes elements The final price must take into account the brand’s quality and advertising relating to competition. Brands with average relative quality but high relative advertising budgets were able to charge premium prices.  Impact of pricing on other parties Management must also consider the reaction of other parties to the contemplated price. How will distributors and dealers feel about it? Will the sales force be willing to sale at that price? How will competitors react? Will supplier raise their prices when they see the company’s price? Will the government intervene and prevent this price from being charged? (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.7. Advertising Companies must do more than make good products – they must inform consumers about product benefits and carefully position products in consumers’ minds. To do this, they must skilfully use the mass-promotion tools of advertising, sales promotion, and public relations. Advertising represents any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. (Definition) (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) The 5 M’s of Advertising are as below:
  27. 27. 22 | P a g e Fig 2.4. Marketing management must make four important decisions when developing an advertising program: 2.7.1. Setting advertising objectives 2.7.2. Setting the advertising budget 2.7.3. Developing advertising strategy (message decisions and media decisions) 2.7.4. Evaluating advertising campaigns (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.7.1. Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target-audience during a specific period of time. Advertising objectives can be classified by primary purpose – whether the aim is to inform, persuade, remind or reinforce  Informative advertising is used heavily when introducing a new product category. In this case, the objective is to build primary demand.  Persuasive advertising becomes more important as competition increases. Here, the company’s objective is to build selective demand.  Reminder advertising is a marketing strategy typically consisting of brief messages sent with the objective of reminding a target consumer group about a product or
  28. 28. 23 | P a g e service or of introducing a new theme into an existing marketing program. Reminder advertising might be used by a business that has already invested considerable resources in initially promoting their product or service and still wishes to maintain its competitiveness. Expensive Coca-Cola television ads primarily remind people about Coca-Cola rather than informing or persuading them.  Reinforcement advertising is intended to reassure customers (those who have already made a purchase) that they have made the right choice. Used commonly for big ticket items (boats, cars, condos), it may also include instructions on how to get the most satisfaction or value from their purchase. (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.7.2. Setting the Advertising Budget A brand’s advertising budget often depends on its stage in the product life cycle. New products need large advertising budgets to build awareness and to gain consumer trail. Mature brands require lower budgets as a ratio to sales. Undifferentiated brands – those that closely resemble other brands in their product class (beer, soft drinks, laundry detergents) – may require heavy advertising to set them apart. When the product differs greatly from competitors, advertising can be used to point out the differences to consumers. 2.7.3. Developing Advertising Strategy Advertising strategy consists of two major elements: creating advertising messages and selecting advertising media. 2.7.3.1. Creating the Advertising Message No matter how big the budget, advertising can succeed only if advertisements gain attention and communicate well. Many advertisers now see themselves as creating “advertainment” – ads that are both persuasive and entertaining. “Today we have to entertain and not just sell, because if you try to sell directly and come off as boring or obnoxious, people are going to press the remote on you.” “A commercial has to cut through the clutter and seize the viewers in one to three seconds, or they’re gone”.
  29. 29. 24 | P a g e  Message strategy The first step in creating effective advertising messages is to plan a message strategy – to decide what general message will be communicated to consumers. The purpose of advertising is to get consumers to think about or react to the product or company in a certain way. People will react only if they believe that they will benefit from doing so. Thus, developing an effective message strategy begins with identifying customer benefits that can be used as advertising appeals. Ideally, advertising message strategy will follow directly from the company’s broader positioning strategy. Advertising appeals should have three characteristics: First, they should be meaningful, pointing out benefits that make the product more desirable or interesting to consumers. Second, appeals must be believable – consumers must believe that the product or service will deliver the promised benefits. Appeals should also be distinctive – they should tell how the product is better than the competing brands. (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.7.3.2. Selecting Advertising Media The major steps in media selection are  Deciding on reach, frequency and impact  Choosing among major media types  Selecting specific media vehicles  Deciding on media timing  Deciding on reach, frequency and impact Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time. Frequency is a measure of how many times the average person in the target market is exposed to the message Media impact is the qualitative value of a message exposure through a given medium. For example, for products that need to be demonstrated, messages on television may have more impact than messages on radio because television uses sight and sound.  Choosing among major media types
  30. 30. 25 | P a g e The major media types are newspapers, television, direct mail, radio, magazines, outdoor and the Internet. Each medium has advantages and limitations.  Newspapers + Flexibility, timeliness, good local market coverage, broad acceptability, high credibility - Short life, poor reproduction quality, small pass-along audience  Television + Good mass-market coverage, low cost per exposure, combine sight, sound and motion, appealing to the senses - High absolute costs, high clutter, fleeting exposure, less audience selectivity  Direct mail + High audience selectivity, flexibility, no ad competition within the same medium, allows personalization - Relatively high cost per exposure, “junk mail” image  Radio + Good local acceptance, high geographic and demographic selectivity, low cost - Audio only, fleeting exposure, low attention (“the half-heard” medium), fragmented audiences  Magazines + High geographic and demographic selectivity, credibility and prestige, high-quality reproduction, long life and good pass-along readership - Long ad purchase lead time; high cost, no guarantee of position  Outdoor + Flexibility, high repeat exposure, low cost, low message competition, good positional selectivity - Little audience selectivity, creative limitations  Internet + High selectivity, low cost, immediacy, interactive capabilities - Small, demographically skewed audience, relatively low impact, audience controls exposure  Selecting specific media vehicles The media planner now must choose the best media vehicles – specific media within each
  31. 31. 26 | P a g e general media type. For example, television vehicles include Scrubs, and News etc. Magazine vehicles include People, Cosmopolitan etc.  Deciding on media timing The advertiser must also decide how to schedule the advertising over the course of a year. The advertiser has to choose the pattern of the ads. Continuity means scheduling ads evenly within a given period. Pulsing means scheduling ads unevenly over a given time period. (Source: Kotler,Keller, Koshy & Jha. Marketing Management, 13th ed. India, Pearson) 2.7.4. Evaluating Advertising Campaigns It is the last step in major decision of advertising. In this stage we evaluate the message of advertising. How much attention of how many people can be driven towards the advertising message? Its market covering capacity, style, tone, words and format etc are evaluated in this stage. The message must say something desirable or interesting about the product. The message must also say something exclusive or distinctive that does not apply to other brands in the product category. Finally, the message must be believable. Believability may be hard to achieve because many customers are sceptical about the truth of advertising in general. 2.8. Retailing  Retailing involves the sale of goods/merchandise for personal or household use, may be from a fixed location such as a division store or kiosk, or away from a fixed location and related sub-linked services. (Retailing definition)  Retailing is performing business activity which involves in selling goods or services to the final consumer. (Dale M. Lewison)  Retailing comprises of crucial action and steps required to deliver the final product or services to the consumer. (Patrick M. Dunne)  It is defined as an established business activity, which adds value to the products and services sold to the consumer for their private or domestic use. (Michael Levy) India has family run retail stores, they are small and it did not have interconnected branded shops until late 1990s in rural and some urban areas sales people would carry all the textile products in a bicycle and sell it to people at their homes. After 1990s, India witnessed growth in branded retail shops, which opened up their retail outlet in cities and people started to visit
  32. 32. 27 | P a g e the stores to buy clothing and fashion. The branded retail shops are opening up in both cities and villages creating brand awareness among consumer with their changing lifestyle. Retailing in India is one of the pillars of its economy and accounts for around 20% percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. (Source: Wikipedia) As of 2013, India's retailing industry was essentially owner manned small shops (called kirana stores). In 2010, larger format convenience stores and supermarkets accounted for about 4 percent of the industry, and these were present only in large urban centres. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership.(Source: Wikipedia) After months of discussion with various hurdles on 14 September, 2012 the cabinet approved the foreign direct investment in retail in India allowed 100% FDI in Single Brand and 51% FDI in Multiple brand with many preconditions. The minimum FDI limit has been set at $100 million. Moreover, half of any investment needs to be made in infrastructure like cold- storage chains and warehouses and at least 30% of the goods to be sold will have to be sourced from local producers. (Source: Wikipedia) 2.9. Retailer  Retailer is who involves in selling of goods or service directly to the end consumer for their domestic and non-business use. (Source: Philip Kotler)  Any business firm that aims in directing its marketing efforts in the direction of final consumer for the purpose of selling goods or services are called as retailers. (Source: Dale M. Lewison)  Retailers are the final business in the distribution channel which links the
  33. 33. 28 | P a g e manufacturer to consumer. The distribution channel is a group of firms that assist the movement of products from the place of production to the point of sale and to the final consumer. They aim to meet the consumer demand and satisfy it by having the right merchandise, at the right price, at the right place, when the consumer needs it. (Source: Michael Levy) The organized retailing is gaining momentum in India with the presence of large International players. Unorganized (Small shop run by individual or family own business without any interconnectivity) retailing had a large presence in Indian market for a long time in both rural and urban areas. With the FDI reforms in place, major global players are expected to invade the Indian market in near future. Table 2.1
  34. 34. 29 | P a g e 3. Objectives, Limitation and Scope 3.1. Objectives of the Study 1. To study the effect of pricing, offers and discounts on apparel buying behaviour of working adults (20-40 yrs of age) in NCR, Mumbai and Bangalore. 2. To study the effect of advertisements on apparel buying behaviour of working adults (20-40 yrs of age) in NCR, Mumbai and Bangalore. 3. To study the impact of demography viz. age, gender and income on apparel buying behaviour of working adults (20-40 yrs of age) in NCR, Mumbai and Bangalore. 4. To study the influence of reference groups viz. friends and family on apparel buying behaviour of working adults (20-40 yrs of age) in NCR, Mumbai and Bangalore. 3.2. Limitations of the Study Due to time constraints and professional commitments the sample size chosen is 150 respondents. Considering the huge population of the selected cities, the sample size is very small and hence might not be the right representation of the population. Thus, the conclusions can have deviations from the actual situation. Also, major part of Indian population resides in its villages, towns and tier-II cities. The study of buying behaviour in metros alone, cannot throw light upon the tastes and preferences of the nation and the national trend in general. 3.3. Scope for future Study Looking at the current trend of retail expansion in India, it is the tier-II cities where the real action is going to take place in the near future. There is a huge scope for further study, concentrating on the tastes and buying behaviours in tier-II cities. Also with the FDI reforms coming up in Indian retail sector, it would be interesting to track the positive and negative impacts on the national economy and the change in the buying pattern of Indian consumers.
  35. 35. 30 | P a g e 4. ResearchMethodology A study can be initiated with a proper design and methodology to bring out the suitable findings which are reliable and applicable to solve the problems and useful to carry out further research of interest. It needs a careful analysis of the consumer through which the results for the present study can be crystallized for framing suitable solutions. In this chapter, a brief description of the research methodology adopted in selection of the area, sampling of customers, method of data collection and the tools used for data analysis are presented. 4.1. Sampling Method The study was conducted in three major regions of India – National Capital Region, Mumbai and Bangalore. The respondents were working adults (20-40 yrs of age) in NCR, Mumbai and Bangalore. The respondents were selected on the basis of non random sampling and convenience sampling which means that only the customers willing to respond to the questionnaire were selected. The sample size selected was 150. 4.2. Data Collection Primary data collection technique was adopted using a self-administered online questionnaire. The questionnaire was prepared and distributed using the website – www.surveymonkey.com. Few questions in the questionnaire were customized in a way to disqualify entries from respondents who do not meet the criteria chosen for sample (20-40 yrs age, working adults, only from Mumbai, Bangalore & NCR). Prior to administration, the questionnaire was given to experts from industry and academia to get their opinions on the constructs and items used in the study. Data was collected though web-links, e-mails and social networking sites. The respondents were given a brief introduction about the purpose and importance of the study. Enough time was given to them to think over the answers for the
  36. 36. 31 | P a g e questions to have reliability of response. Utmost effort is employed to ensure removal of biases in the questionnaire. 4.3. Data Analysis Extensive graphs, tables and charts will be used to analyse the collected data. 4.4. Schedule Below is a Gantt chart that depicts the road-map for the project Activity 5th Aug 20th Aug 5th Sept 20th Sept 5th Oct 20th Oct 5th Nov 20th Nov 5th Dec 20th Dec 5th Jan 20th Jan Project Proposal - Initial research and submission Project Proposal Revision/Finalization Review of Literature Data Collection Soft copy submission of Intermediate Report Hard copy submission of Intermediate Report Data Analysis Revision and Conclusion Soft copy submission of Final Report Hard copy submission of Final Report Final Presentation Table 3.1.
  37. 37. 32 | P a g e Below is the detailed timeline for the project: Activity Timeline Project Proposal - Initial research and submission 5th Aug - 15th Aug Project Proposal Revision/Finalization 15th Aug - 31st Aug Review of Literature 1st Sep - 15th Sep Data Collection 20th Sep - 25th Oct Soft copy submission of Intermediate Report 6th Oct Hard copy submission of Intermediate Report 19th Oct Data Analysis 25th Oct - 25th Nov Revision and Conclusion 20th Oct - 20th Dec Soft copy submission of Final Report 22nd Dec Hard copy submission of Final Report 6th Jan Final Presentation 19th Jan Table 3.2.
  38. 38. 33 | P a g e 5. Results and Discussion The questionnaire that was distributed using the www.surveymonkey.com is as below: 1. Age  Below 20  20-24  25-29  30-34  35-40  Above 40 2. Sex Male Female 3. Marital Status Single Married Separated/Divorced 4. Education  Under-graduate  Graduate  Post-graduate  Doctorate 5. Occupation  Employed for wages  Self-employed  Unemployed  Student  Home-maker  Retired 6. Annual Income  Less than Rs. 2,00,000  Rs. 2,00,000 – Rs. 4,00,000  Rs. 4,00,000 – Rs. 6,00,000  Rs. 6,00,000 – Rs. 8,00,000  Rs. 8,00,000 – Rs. 10,00,000  Rs. 10,00,000 – Rs. 12,00,000  Above Rs. 12,00,000
  39. 39. 34 | P a g e 7. Which city do you currently live in?  Delhi/NCR  Bangalore  Mumbai  Others 8. About how often do you shop for clothes?  Once a week  2-3 times a month  Once a month  Once in 3 months  Once in 6 months  Once in a year 9. Where do you buy your apparels (clothes), mostly from?  Company/Franchise owned Retail Outlets  Department Stores  Discount Stores/ Factory Outlet  Online Stores  Local Outlets  I mostly get them tailor made 10. In a single shopping, how much do you usually spend on apparels (clothes)?  Less than Rs. 500  Between Rs. 500 – Rs. 1000  Between Rs. 1000 – Rs. 2000  Between Rs. 2000 – Rs. 3000  Between Rs. 3000 – Rs. 5000  More than Rs. 5000 11. Please rate the importance of the following factors with respect to apparel purchase Extremely Important Important Doesn’t matter much Doesn’t matter at all Price Brand Perception Fit and Feel Style and Appearance Offers (EMI, gifts, etc) Discounts Location of the Store Service offered by the Store
  40. 40. 35 | P a g e 12. How much of your clothes are on sale or discounted when you buy them?  All of them  Most of them  Only some of them  None of them 13. What makes you believe an apparel brand is good?  Good Advertisement  Good value for money  Good sales/after-sales service  When I see others using the brand  When my friends of family tell me so 14. On a scale of 1 to 5 (5 being the highest), rate the importance of friends, family and peer groups in building your apparel brand perception 1 2 3 4 5 15. On a scale of 1 to 5 (5 being the highest), rate the importance of advertisements in building your apparel brand perception 1 2 3 4 5 16. Which mode of advertisement influences your apparel purchase decision most?  Television/Radio  Newspaper/Magazines  Billboards  Internet  Phone Calls/SMSes  Others Few questions in the questionnaire were customized in a way to disqualify entries from respondents who do not meet the criteria chosen for sample (20-40 yrs age, working adults, only from Mumbai, Bangalore & NCR). Prior to administration, the questionnaire was given to experts from industry and academia to get their opinions on the constructs and items used in the study.
  41. 41. 36 | P a g e The data was collected from 155 respondents and the composition of the same is depicted by the table below. Age Answer Options Response Percent Response Count Below 20 0.0% 0 20 to 24 14.2% 22 25 to 29 56.8% 88 30 to 34 21.9% 34 35 to 40 5.8% 9 Above 40 1.3% 2 answered question 155 Sex Answer Options Response Percent Response Count Male 58.7% 91 Female 41.3% 64 answered question 155 What city do you currently live in? Answer Options Response Percent Response Count Delhi/NCR 25.8% 40 Bangalore 47.7% 74 Mumbai 14.8% 23 Other 11.6% 18 answered question 155 Occupation Answer Options Response Percent Response Count Employed for wages 81.3% 126 Self-employed 12.3% 19 Unemployed 1.3% 2 Student 3.9% 6 Home-maker 1.3% 2 Retired 0.0% 0 answered question 155 It can be seen from the data mix above that few respondents have marked their current city as ‘Other’ (other than NCR/Mumbai/Bangalore). Similarly there are 2 respondents whose age is
  42. 42. 37 | P a g e above 40 years and few respondents who are not employed. This study is about “the buying behaviour of working adults towards branded apparels in selected Indian cities”. Thus, the sample decided for the study consists only working adults (20-40 yrs of age) belonging to NCR or Mumbai or Bangalore, therefore respondents who have failed to meet the chosen criteria have been considered as outliers and their responses have been disqualified. After filtering the data as per chosen criteria, only 131 respondents out of 155 have been taken into consideration for the study. Their responses have been analyzed in accordance with objectives of the study. The results are presented and discussed in this chapter, hereunder. 5.1. General Data 5.1.1. Age
  43. 43. 38 | P a g e 5.1.2. Gender/Sex  Gender-wise Age Comparison  Interpretation 1 – Majority of the respondents (80%) belong to the age group 25-35 years across both genders.
  44. 44. 39 | P a g e 5.1.3. Marital Status 5.1.4. Education
  45. 45. 40 | P a g e  Gender-wise Education Comparison  Interpretation 2 – More female respondents are higher educated than males. (60% females are postgraduates as compared to 32% males). 5.1.5. Occupation  Interpretation 3 – Majority of the respondents (89%) are employed for wages and the distribution pattern is same for both genders.
  46. 46. 41 | P a g e 5.1.6. Income There is a steady increase in the income group in the middle class and upper middle class sector. Creation of jobs in Engineering industry and ITES services have provided employment to many youngsters and there is a change in the income level and more population have migrated from lower middle class to middle class and from middle class to upper middle class. Annual Income Answer Options Response Percent Response Count Less than 2,00,000 2.5% 3 2,00,000 to 4,00,000 22.1% 27 4,00,001 to 6,00,000 23.8% 29 6,00,001 to 8,00,000 20.5% 25 8,00,001 to 10,00,000 11.5% 14 10,00,001 to 12,00,000 6.6% 8 Above 12,00,000 13.1% 16 answered question 122 skipped question 9
  47. 47. 42 | P a g e  Gender-wise Income Comparison  Interpretation 4 – Most male respondents earn more than female respondents
  48. 48. 43 | P a g e 5.1.7. Current City  Gender-wise comparison  Interpretation 5 – Female respondents represent all three cities in a somewhat balanced distribution pattern whereas a major chunk of the male respondents (63%) is from Bangalore only.
  49. 49. 44 | P a g e 5.2. Frequency of Purchase About how often do you shop for clothes? Answer Options Response Percent Response Count Once a week 0.8% 1 2-3 times a month 12.5% 16 Once a month 43.0% 55 Once every 3 months 33.6% 43 Once every 6 months 8.6% 11 Once a year 1.6% 2 answered question 128 skipped question 3
  50. 50. 45 | P a g e 5.2.1. Frequency of Purchase: Gender-wise comparison 5.2.2. Frequency of Purchase: Gender-wise comparison (Another view)
  51. 51. 46 | P a g e  The results indicate that majority of the population, buys apparels once a month or once in 3 months. Females prefer to buy once a month while males prefer to buy once in 3 months or once a month. Also, when it comes to buying apparels 2-3 times a month, a significant number of females (20%) said yes as compared to a meagre 7%, males.  Interpretation 6 – Most female respondents are more frequent buyers than males, across all three regions. 5.2.2. Frequency of Purchase: Region-wise comparison
  52. 52. 47 | P a g e 5.2.3. Frequency of Purchase: Income-wise comparison
  53. 53. 48 | P a g e 5.2.4. Frequency of Purchase: Another Income-wise comparison
  54. 54. 49 | P a g e  Region-wise comparison shows that more respondents from NCR and Mumbai buy once a month than Bangalore where respondents prefer to buy once in 3 months. But this can be attributed to the fact that most respondents from Bangalore are predominantly male (See Interpretation 5).  A stark feature is brought to the fore in the income-wise comparison of purchase frequency. When income is very less, frequency of purchase is less. As income increases, frequency of purchase also increases till a point. Beyond this point, if income rises further, frequency of purchase starts dipping.  Interpretation 7 – With the increase in income, frequency of purchase first increases and then decreases. 5.3. Store Preference Where do you buy your apparels (clothes),mostly from? Answer Options Response Percent Response Count Company/Franchise owned Retail Outlets 24.4% 32 Department Stores (Shopper's Stop,Central,etc) 48.9% 64 Discount Stores/Factory Outlets 9.9% 13 Online Stores (Myntra, Jabong, Flipkart, etc) 10.7% 14 Local Outlets 3.1% 4 I mostly get them tailor-made 3.1% 4 answered question 131
  55. 55. 50 | P a g e  Store Preference: Gender-wise Comparison  Store Preference: Income-wise comparison
  56. 56. 51 | P a g e  Store Preference: Region-wise comparison  Store Preference: Education-wise comparison  Interpretation 8 – When it comes to the youth’s preference for apparel store formats, department stores qualify as the best choice and company/franchise owned retail outlets as the second best choice. While most men prefer buying from both these format of stores,
  57. 57. 52 | P a g e for women department store is the clear cut winner (70%). Discount stores and factory outlets are a strict no-no for women but a small proportion of men don’t mind buying from them. Further, the survey results indicate that level of education has no impact on an individual’s choice of store formats, but the level of income does have a significant impact. Department stores are a major hit among youth earning between Rs. 2,00,000 to Rs. 10,00,000 annually, but as the income goes beyond Rs. 10,00,000, company/franchise owned retail outlets gain importance. Moreover, the youth earning less than Rs. 2,00,000 annually have no clear preference for any single format. Probably they are driven by the price factor alone. Also evident is the significant share (3rd most preferred format) of online stores, which is a relatively new format in India. The youth earning between Rs. 6,00,000 to Rs. 10,000,000 annually appear to be the perfect target customers for online sellers. Region-wise, in Mumbai, a very big proportion shops from department stores (71%) and very few buy from company/franchise owned retail outlets, while in Delhi/NCR it is a 50-50 affair between department stores and retail outlets. Department stores are hugely popular in Bangalore also. Apart from this, there are two very noteworthy points. First, not a single respondent from Mumbai showed preference for online stores and second, a good 10% of Bangaloreans indicated preference towards local outlets and tailor-shops. 5.4. Ticket size
  58. 58. 53 | P a g e  Ticket Size: Gender-wise comparison  Ticket Size: Region-wise comparison
  59. 59. 54 | P a g e  80% of female respondents spend between Rs. 1000 – Rs. 3000 in a single shopping while 57% of male respondents spend above Rs. 3000 in a single shopping. Most Mumbaikars spend Rs.1000-Rs.3000 in a singles shopping while most Delhites and Bangaloreans spend Rs.2000-5000 in a single shopping.  Ticket Size: Income-wise comparison  Interpretation 9 – Spending spree increases with increase in income. Males are less frequent shoppers than females but spend more in a single shopping when compared to females. Also, in a single shopping, respondents from Mumbai spend lesser than respondents from Bangalore or Delhi/NCR.
  60. 60. 55 | P a g e 5.5. Importance of factors that influence purchase decision (Price, Band perception, Fit & feel, Style & appearance, Discounts, Offers, Store location, Service offered) Please rate the importance ofthe following factors with respect to apparel purchase. Answer Options Extremely Important Important Doesn't matter much Doesn't matter at all Rating Average Response Count Price 39 83 6 2 3.22 130 Brand Perception 28 76 26 0 3.02 130 Fit and Feel 104 25 1 0 3.79 130 Style and Appearance 90 38 2 0 3.68 130 Offers (EMI,free gift, etc.) 8 37 68 15 2.30 128 Discounts 18 69 40 3 2.78 130 Location of the Store 16 61 44 9 2.65 130 Service offered by the Store 19 78 29 2 2.89 128 answered question 130 skipped question 1 Rating Scale: Extremely Important = 4 points, Important = 3 pts, Doesn’t matter much = 2 pts and doesn’t matter at all = 1 pt.
  61. 61. 56 | P a g e  Purchase Factors: Gender-wise and Region-wise comparison
  62. 62. 57 | P a g e  Interpretation 10 – Among the factors influencing a consumer’s apparel purchase decision, fit, feel, appearance and style of the garment are most important, closely followed by the factors of price and brand image. To a good extent, service offered by store also counts. The survey makes it clear that discounts and offers and store location, all are secondary factors for consumers. Moreover, compared to the other sex, price holds slightly more importance for females while brand image and store location hold somewhat higher importance for males. Further to this, compared to other cities, brand image is a more important factor in Mumbai, price is a more important factor in Delhi/NCR and discounts/offers are faintly more important in Bangalore. 5.6. Impact of Discounts  Impact of sales & discounts: Gender-wise comparison
  63. 63. 58 | P a g e  Impact of discounts: Region-wise comparison The results above re-emphasize the point that discounts and sales are not that important for consumers as are fit, style and brand’s quality. Across genders and across regions, respondents predominantly said that only some their clothes are on sale or discounted when they buy them. So there is no major interpretation here. The results strengthen ‘Interpretation 10’. 5.7. Factors influencing apparel brand perception
  64. 64. 59 | P a g e  Factors influencing Brand Perception: Gender-wise comparison  Factors influencing Brand Perception: Region-wise comparison
  65. 65. 60 | P a g e  Factors influencing Brand Perception: Income-wise comparison  Interpretation 11 – A whopping 71% respondents voted ‘value for money’ as the single largest factor that influences a brand’s image and perception. Other factors, like advertisement, are a distant second. The survey results also suggest that the influence of advertisement towards building brand perception is more in females than in males and is more in residents of Mumbai and NCR than in Bangloreans. Further to this, the income- wise comparison too shows that ‘value for money’ is what impacts a brand’s image the most. But income-comparison highlights a striking phenomenon altogether. Among the youths with annual income below Rs. 2,00,000, advertisement has no impact while sales/after sales service has a significant impact on brand perception. But for youths with annual income more than Rs. 2,00,000, the trend is such that the influence of advertisement increases softly along with the increase in income group until the income reaches Rs. 10,00,000. Beyond Rs. 10,00,000, influence of advertisements dips again, while ‘value for money’ becomes the predominant leading factor.
  66. 66. 61 | P a g e 5.8. Influence of Reference Groups  Influence of Reference Groups: Gender-wise comparison
  67. 67. 62 | P a g e  Influence of Reference Groups: Region-wise comparison  Influence of Reference Groups: Income-wise comparison
  68. 68. 63 | P a g e  77% respondents rated 3 and above and 40% respondents rated 4 and above, the importance of reference groups in building brand perception. 47% males and 28% females gave a rating of 4 and above while 16% males and 34% females gave a rating of 2 and below. This proves that while building a brand’s perception, males are more influenced by reference groups than females. 52% respondents from Mumbai, 40% from Bangalore and 31% from Delhi/NCR gave a rating of 4 and above. This proves that while building brand perception, residents from Mumbai are most influenced by reference groups and residents of Delhi/NCR, the least. It has been also observed that reference groups have very little influence over youths earning less than Rs. 2,00,000 annually, but for youths earning more than Rs.2,00,000 annually, influence of family, friends and peers towards building brand perception, increases with increase in income groups.  Interpretation 12 – While building perception about an apparel brand, males are more influenced by reference groups than females. Also, residents from Mumbai are most influenced by reference groups while residents of Delhi/NCR, the least. Another point to be noticed is that the influence of reference groups is minimal for youths earning under Rs. 2,00,000 annually but for youths earning more than Rs. 2,00,000 annually, the influence increases along with the increase in income group. 5.9. Influence of Advertisements
  69. 69. 64 | P a g e  Influence of Advertisements: Gender-wise comparison  Influence of Advertisements: Region-wise comparison  Influence of Advertisements: Income-wise comparison
  70. 70. 65 | P a g e Interpretation 13 – While building an apparel brand’s perception, females are more influenced by advertisements than males. Also, residents from Mumbai are most influenced by advertisements while residents of Bangalore, the least. Another point to be noticed is that the influence of advertisements is minimal for youths earning under Rs. 2,00,000 annually but for youths earning more than Rs. 2,00,000 annually, the influence increases till Rs. 10,00,000 income group and beyond Rs.10,00,000, the influence of advertisement decreases.
  71. 71. 66 | P a g e 5.10. Influence of the Mode of Advertisement  Influence of the Mode of Advertisements: Gender-wise comparison
  72. 72. 67 | P a g e  Influence of the Mode of Advertisements: Region-wise comparison  Influence of the Mode of Advertisements: Income-wise comparison
  73. 73. 68 | P a g e  Interpretation 14 – Television and radio advertisements are the most popular modes of advertisements for both genders, closely followed by print ads and internet ads. Females have a slightly more likeness for print media ads while males have a slightly higher affinity for television/radio ad. Even though online ad is a relatively new concept in India, results show, it is picking up well and influencing both genders equally. Income levels don’t have any significant impact on the mode of advertisement an individual prefers. 5.10.1. Comparisons based on the mode of advertisement a consumer prefers  Sex  Frequency of Shopping
  74. 74. 69 | P a g e  Preference of Store-format  Purchase of discounted goods
  75. 75. 70 | P a g e  Interpretation 15 – Footfall driven to company/franchise owned retail outlets, is mainly through television, radio and print ad, while consumer traffic driven to online stores and local outlets is majorly through internet ads. Affinity towards discount stores and discounted goods is primarily driven by newspaper and magazine ad. Custom-fit garment brands are best served by billboards. Footfall in department stores can be driven by any form of advertisements. Most consumers don’t prefer ads through phone calls or SMSes.  Influence of Reference Groups  Interpretation 16 – Most consumers who prefer television/radio ads are the ones who get influenced by reference groups the most. Thus, television/radio ads could be targeted towards the family and friends of the end consumer.
  76. 76. 71 | P a g e 6. Conclusion 6.1. Interpretations from the Survey Results From the data analysis conducted in the previous part, a lot of interpretations were derived. All those interpretations are clubbed hereunder, at one place, so that meaningful conclusions can be arrived at.  Interpretation 1 – Majority of the respondents (80%) belong to the age group 25-35 years across both genders.  Interpretation 2 – More female respondents are higher educated than males. (60% females are postgraduates as compared to 32% males).  Interpretation 3 – Majority of the respondents (89%) are employed for wages and the distribution pattern is same for both genders.  Interpretation 4 – Most male respondents earn more than female respondents  Interpretation 5 – Female respondents represent all three cities in a somewhat balanced distribution pattern whereas a major chunk of the male respondents (63%) is from Bangalore only.  Interpretation 6 – Most female respondents are more frequent buyers than males, across all three regions.  Interpretation 7 – With the increase in income, frequency of purchase first increases and then decreases.  Interpretation 8 – When it comes to the youth’s preference for apparel store formats, department stores qualify as the best choice and company/franchise owned retail outlets as the second best choice. While most men prefer buying from both these format of stores, for women department store is the clear cut winner (70%). Discount stores and factory outlets are a strict no-no for women but a small proportion of men don’t mind buying from them. Further, the survey results indicate that level of education has no impact on an individual’s choice of store formats, but the level of income does have a significant impact. Department stores are a major hit among
  77. 77. 72 | P a g e youth earning between Rs. 2,00,000 to Rs. 10,00,000 annually, but as the income goes beyond Rs. 10,00,000, company/franchise owned retail outlets gain importance. Moreover, the youth earning less than Rs. 2,00,000 annually have no clear preference for any single format. Probably they are driven by the price factor alone. Also evident is the significant share (3rd most preferred format) of online stores, which is a relatively new format in India. The youth earning between Rs. 6,00,000 to Rs. 10,000,000 annually appear to be the perfect target customers for online sellers. Region-wise, in Mumbai, a very big proportion shops from department stores (71%) and very few buy from company/franchise owned retail outlets, while in Delhi/NCR it is a 50-50 affair between department stores and retail outlets. Department stores are hugely popular in Bangalore also. Apart from this, there are two very noteworthy points. First, not a single respondent from Mumbai showed preference for online stores and second, a good 10% of Bangaloreans indicated preference towards local outlets and tailor-shops.  Interpretation 9 – Spending spree increases with increase in income. Males are less frequent shoppers than females but spend more in a single shopping when compared to females. Also, in a single shopping, respondents from Mumbai spend lesser than respondents from Bangalore or Delhi/NCR.  Interpretation 10 – Among the factors influencing a consumer’s apparel purchase decision, fit, feel, appearance and style of the garment are most important, closely followed by the factors of price and brand image. To a good extent, service offered by store also counts. The survey makes it clear that discounts and offers and store location, all are secondary factors for consumers. Moreover, compared to the other sex, price holds slightly more importance for females while brand image and store location hold somewhat higher importance for males. Further to this, compared to other cities, brand image is a more important factor in Mumbai, price is a more important factor in Delhi/NCR and discounts/offers are faintly more important in Bangalore.  Interpretation 11 – A whopping 71% respondents voted ‘value for money’ as the single largest factor that influences a brand’s image and perception. Other factors, like
  78. 78. 73 | P a g e advertisement, are a distant second. The survey results also suggest that the influence of advertisement towards building brand perception is more in females than in males and is more in residents of Mumbai and NCR than in Bangloreans. Further to this, the income-wise comparison too shows that ‘value for money’ is what impacts a brand’s image the most. But income-comparison highlights a striking phenomenon altogether. Among the youths with annual income below Rs. 2,00,000, advertisement has no impact while sales/after sales service has a significant impact on brand perception. But for youths with annual income more than Rs. 2,00,000, the trend is such that the influence of advertisement increases softly along with the increase in income group until the income reaches Rs. 10,00,000. Beyond Rs. 10,00,000, influence of advertisements dips again, while ‘value for money’ becomes the predominant leading factor.  Interpretation 12 – While building perception about an apparel brand, males are more influenced by reference groups than females. Also, residents from Mumbai are most influenced by reference groups while residents of Delhi/NCR, the least. Another point to be noticed is that the influence of reference groups is minimal for youths earning under Rs. 2,00,000 annually but for youths earning more than Rs. 2,00,000 annually, the influence increases along with the increase in income group.  Interpretation 13 – While building an apparel brand’s perception, females are more influenced by advertisements than males. Also, residents from Mumbai are most influenced by advertisements while residents of Bangalore, the least. Another point to be noticed is that the influence of advertisements is minimal for youths earning under Rs. 2,00,000 annually but for youths earning more than Rs. 2,00,000 annually, the influence increases till Rs. 10,00,000 income group and beyond Rs.10,00,000, the influence of advertisement decreases.  Interpretation 14 – Television and radio advertisements are the most popular modes of advertisements for both genders, closely followed by print ads and internet ads. Females have a slightly more likeness for print media ads while males have a slightly higher affinity for television/radio ad. Even though online ad is a relatively new concept in India, results show, it is picking up well and influencing both genders
  79. 79. 74 | P a g e equally. Income levels don’t have any significant impact on the mode of advertisement an individual prefers.  Interpretation 15 – Footfall driven to company/franchise owned retail outlets, is mainly through television, radio and print ad, while consumer traffic driven to online stores and local outlets is majorly through internet ads. Affinity towards discount stores and discounted goods is primarily driven by newspaper and magazine ad. Custom-fit garment brands are best served by billboards. Footfall in department stores can be driven by any form of advertisements. Most consumers don’t prefer ads through phone calls or SMSes.  Interpretation 16 – Most consumers who prefer television/radio ads are the ones who get influenced by reference groups the most. Thus, television/radio ads could be targeted towards the family and friends of the end consumer. 6.2. Conclusions 1. Expenditure per shopping cycle increases with increase in income. Women are more frequent buyers than men but spend lesser than men do in a single shopping. So women’s clothing should be priced lesserthan men’s clothing. 2. When income is very less, frequency of purchase is less. As income increases, frequency of purchase also increases till a point. Beyond this point, if income rises further, frequency of purchase starts falling. So garments targeted at the elite should be priced very heavily to counter the reduced frequency of purchase. 3. Store formats: a) Women don’t like buying from discount stores or factory outlets but few men do buy from these store formats. b) High income populations prefer buying apparel from company’s own retail outlets or get them tailor made or custom fitted. c) Department stores are the most popular store formats for both men and women. Department stores alone are a major hit amongst women
  80. 80. 75 | P a g e d) Men also prefer buying from company/franchise owned retail outlets but most women don’t. e) Department stores are preferred by Mumbaikars while retail outlets find good ground in Delhi/NCR. Therefore, in Mumbai, department stores should showcase fresh stock as well as discounted goods in women’s apparel category, while in Delhi/NCR, department stores should showcase ‘on sale’ & discounted goods while company/franchise owned retail outlets should display fresh stocks. 4. Among the factors influencing apparel purchase, fit, feel, style and appearance rank much higher than discounts and offers. Service offered at store is of significant importance too. So apparel brands should concentrate more on quality of product and service than on price skimming and discounting techniques. 5. Among the factors influencing brand perception, value for money is of sheer importance. So, pricing of branded garments should be rational and in accordance with the quality offered. 6. Advertisement and Reference groups: a) Compared to men, women’s apparel purchase decisions are more influenced by advertisements. b) More than women’s, men’s apparel purchase decisions are more influenced by reference groups (family, friends, peer group, etc.) c) Television/Radio ads are most influential modes of advertisement, closely followed by newspaper/magazines. Most men prefer ads on television while most women prefer print media ads. d) Discount store footfall and sale of discounted goods are enhanced by print media ad, while footfall in retail outlets is influenced by electronic media ads.
  81. 81. 76 | P a g e e) Footfall in department stores, to much extent, is insulated from changes in modes of advertisement. Any mode of advertisement will pull consumer traffic to department stores. Therefore, festive season and discounted apparels should be promoted via print media, while fresh collections should be promoted through electronic media. Also, it can be safely concluded that apparel advertisements whether it be for men’s or women’s apparel, should be made to target the woman in the family and print media ads would prove to be more effective in targeting women. f) Footfall in online stores are boosted most by internet ads g) Mumbai residents’ purchase behaviour is more influenced by reference group and advertisements than the residents of Delhi/NCR or of Bangalore. h) Online stores are not a hit in Mumbai Thus, it is clear that there is un-tapped online business potential in Mumbai and e- commerce sites need to launch more internet advertisements targeting Mumbai population, to increase footfall in online stores there.
  82. 82. 77 | P a g e 7. Bibliography 1. Schiffman L.G., Kanuk L. L., Kumar Ramesh S (2011). Consumer Behavior. (10th Edition) India: Pearson Education 2. Kotler Philip, Keller K.L., Koshy Abraham & Jha Mithileshwar. Marketing Management: A South Asian Perspective. (13th Edition) India: Pearson Education 3. Malhotra Naresh K & Dash Satyabhushan (2011). Consumer Behavior. (6th Edition) India: Pearson Education 4. Levy Michael, Weitz Barton & Pandit Ajay (2012). Retailing Management. (8th Edition) India: Tata Mc Graw-Hill 5. Shah Asifo, Factors affecting consumer behaviour. Retrieved December 3rd, 2013. http://ezinearticles.com/?Factors-Affecting-Consumer-Behavior&id=4602848 6. Nangia Saloni (2012), Emerging Trends in Indian Retail and Consumer 2011. Retrieved November 4th 2013. http://www.technopak.com/ArticlesBySeniors.aspx# 7. Gugnani Amit (2013), The Indian Apparel Market, Retrieved November 2nd 2013. http://www.technopak.com/ArticlesBySeniors.aspx# 8. Gugnani Amit (2013), FDI and its impact on the Indian Fashion Apparel Industry. Retrieved November 2nd 2013. http://www.technopak.com/ArticlesBySeniors.aspx# 9. FICCI and PWC’s report (September 2012), The Indian Kaleidoscope: Emerging Trends in Retail. Retrieved November 2nd 2013. http://www.pwc.in/en_IN/in/assets/pdfs/industries/retail-and-consumer/retail-report- 300812.pdf 10. Wikipedia (2013), Retailing in India, Retrieved December 4th 2013. http://en.wikipedia.org/wiki/Retailing_in_India 11. Fitzpatrick David (August 22, 2012), FDI Unorganized and Organized Retail: A Global Comparison. Retrieved December 2nd 2013. http://reurbanist.com/2012/08/unorganized-and-organized-retail-a-global-comparison/

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