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.

1. A Study of Buying Behaviour of Working
Adults towards Branded Apparels in
Selected Indian Cities
Final Report By:
Shubha Brota Raha
Executive MBA (2011-14) – SIBM Bangalore
Faculty Guide:
Prof. Semila Fernandes

2. Summary
• Indian retail sector booming
• Apparel 2nd largest category after Food & Grocery.
• FDI in multi-brand retail
• Consumer spending has risen sharply
• Indian market has high complexities
• Study of apparel buying behaviour of importance
(FDI, new entrants, disposable income, market
complexities)

3. Introduction
• Retail, Organised vs. Unorganised worldwide
• Indian Retail, Org. vs. Unorg; Major Players
• Indian Apparel Market; Categorization; CAGR

4. Review of Literature
• Consumer
• Consumer behaviour
• Factors influencing consumer behaviour
• Consumer decision making process
• Buyer Roles
• Pricing Strategies
• Advertising
• Retailing
• Retailer

5. Review of Literature
• Consumer & Consumer Behaviour
• Factors influencing consumer
behaviour

6. • Consumer decision
making process
Review of Literature

7. • Buyer Roles
• Pricing Strategies
Review of Literature
1
Select Final Price
Price Method
Competitor Analysis
2
3
4
5
6
Estimate Costs
Determine Demand
Pricing Objective

8. • Advertising
– Setting advertising
objectives
– Setting the advertising
budget
– Developing advertising
strategy (message decisions
and media decisions)
– Evaluating advertising
campaigns
Review of Literature

9. • Retailing 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.
(Source: Michael Levy)
• 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)
Review of Literature

10. Objectives of the Study
• To study the effect of pricing, offers and discounts on
apparel buying behaviour of working adults
• To study the effect of advertisements on apparel
buying behaviour of working adults
• To study the impact of demography viz. age, gender
and income on apparel buying behaviour of working
adults
• To study the influence of reference groups viz. friends
and family on apparel buying behaviour of working
adults

11. Methodology
• Non Random convenience sampling
• Sample size 150. Area chosen – NCR, Mumbai
and Bangalore
• Primary Data Collection – Questionnaire
through Online Survey
• Data Analysis – Region/age/gender/income
wise comparative study using graphs

12. Schedule

13. Results & Discussions

17. 1. Most respondents (80%) belong to the age group 25-35 yrs across both genders.
2. More female respondents are higher educated than males.
3. Majority of the respondents (89%) are employed for wages and the distribution
pattern is similar for both genders.
4. Most male respondents earn more than female respondents
5. Female respondents represent all 3 regions in a somewhat balanced distribution
pattern while a majority of male respondents (63%) are from Bangalore only.

18. 6. Majority of the female
respondents are more frequent
buyers than their male
counterparts.

19. 7. With the increase
in income,
frequency of
purchase first
increases and
then decreases.

20. 8. Department stores - best
choice & company/franchise
owned retail outlets - second
best. Men prefer to buy from
both these formats but for
women department store is
the clear cut choice(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

21. 8. (Contd.) Department stores
are a hit among youth
earning between Rs.
2,00,000-10,00,000 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. Also evident is the
significant share (3rd most
preferred format) of online
stores, which is a relatively
new format in India.
Region-wise, in Mumbai, a very big proportion
shops from department stores (71%),very few buy
from retail outlets and no one buys online, while
in Delhi/NCR it is a 50-50 affair between
department stores and retail outlets. In Bangalore
ppl, buy from all formats but prefer dept. stores

22. 9. Males are less
frequent shoppers
than females but
spend more in a
single shopping when
compared to females.

23. 9. (Contd.) Spending spree increases
with increase in income. Also, in a
single shopping, respondents from
Mumbai spend lesser than
respondents from Bangalore or
Delhi/NCR.

24. Q.11. Please rate the importance of the following factors with
respect to apparel purchase.
Factors
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

25. 10. Fit, feel, style, appearance, service offered are of primary
importance. Discounts, offers and store location not that
important.
Price holds slightly more importance for females while brand
image and store location hold higher importance for males.
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.

27. 11. Value for money - single largest
factor that influences a brand’s
image and perception. Other
factors, like advertisement, are a
distant second. 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.

28. 11. (Contd.) Among adults with annual income < Rs. 2,00,000, ads have
no impact while sales/after sales service has a significant impact on
brand perception. But for those with annual income > Rs. 2,00,000,
the influence of ad increases softly along with 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

29. 12. Influence of reference groups is more in males. It increases with increase in
income and is in NCR and most in Mumbai

30. 13. Influence of ads is more in
females. It first increases with
increase in income and then dips.
Influence is least in Bangalore and
most in Mumbai

31. 13. Television/Radio most influential. Females like print media more. Internet ads picking
up well.

32. 13.Footfall driven to
company/franchise
owned retail outlets, is
mainly through
television, radio and
print ad, while
consumer traffic driven
to online stores 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.

33. Conclusions
Women’s clothing should be priced lesser than
men’s clothing
Garments targeted at the elite should be priced
heavily to counter the reduced frequency of
purchase
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 discounted goods while
company/franchise owned retail outlets should
display fresh stocks
Apparel brands should concentrate more on
quality of product and service than on price
skimming and discounting techniques

34. Conclusions
Pricing of branded garments for the masses,
should be rational and in accordance with the
quality offered
Festive season and discounted apparels should be
promoted via print media, while fresh collections
should be promoted through electronic media
Apparel ads 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
E-commerce sites need to launch more internet
advertisements targeting Mumbai population, to
increase footfall in online stores there.

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