Consumers Buying Behaviour at Pantaloons Patna 2017 (Part II)

L.N. Mishra Institute of Economic Development & Social Change Patna Page 1
EXECUTIVE SUMMARY
This project report throws light on the reasons behind customer’s decision of choosing
Pantaloon for purchase of Apparels and various other products from Pantaloon.
Pantaloon is one of the emerging players in the Indian retail industry and offers a deep
insight into the industry.
For completion of this report at Pantaloons store i.e. in Exhibition Road Patna for
conducting survey and fulfillment of questionnaires. A sample size of 50 was selected
due to limitation of time.
Among those who were interviewed consist of housewives, professionals, and even
college going students. Though the sample size considered was small but it was so
varied in order to overcome all the odds. Random stratified sampling method was
considered to be best suited to fulfill the project hypothesis. A structured questionnaire
was constructed in order to measure the responses of respondents. Primary data
collection was done through questionnaire and interviews and Secondary data
collection through company websites and various previous research reports.
Through survey effect of various factors like ambience of store, low prices and
convenience came in light and the reason of people choosing Pantaloon over other
retail outlets became clear. Respondents gave many suggestions for Pantaloon like
they should have more Staff especially during Sales, more Sitting area, more variety,
etc.

CHAPTER – 1

CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
Accounting for around 14-15 percent of Gross Domestic Product (GDP), the Indian retail
industry is estimated to be worth around US$ 500 Billion currently. Home to one of the
top five retail markets in the world, India offers immense scope of growth and
opportunities in this area. As of now, almost 90 percent of the Indian retail sector is
controlled by tiny family-run shops i.e., the unorganized segment. Thus, organized
retailers have a lot of room for further penetration in this flourishing economy. 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. Now the trend is
changing, and such concepts are mushrooming in smaller cities and towns as well.
Organized retail segment is expanding at 20 percent a year, driven by the emergence of
shopping centres and malls and growing middle class.
RETAIL MEANING
Retail comes from the French word retailer which refers to “cutting off, clip and divide” in
terms of tailoring (1365). It was first recorded as a noun with the meaning of a “sale in
small quantities” in 1433 (French). Its literal meaning for retail was to “cut off, shred,
pairing”.
Business of selling products and services to the public as the ultimate consumer.
Retailing involves selling many different products and services, either from a store
location or in direct selling through vending machines and in-home presentations. First
retailers in India include BATA, Pantaloons, Bombay dyeing, Spencer’s The case
highlights the emergence and evolution of PRIL from a small garment manufacturer to
the retailer in India by the early 21st century. It examines the evolution and growth of
PRIL until the mid 1990s, and then traces the rationale behind the launch of its first
retail format Pantaloons, a family departmental store. It discusses in detail the
marketing and promotional efforts undertaken by PRIL for Pantaloons, which made the
store one of the most successful lifestyle stores in India in the early 2000s. The case

then examines the reasons for PRIL’s entry into discount store and food store
businesses through Big Bazaars and Food Bazaars and discusses in detail the
strategies and marketing efforts put in place by PRIL to promote these formats. Recent
trends in the Indian retailing industry, changing requirements and preferences of
consumers, understanding changing consumer lifestyles.
1.2 BACKGROUND
The organized retail industry in India did not evolve till the early 1990s. Until then, the
industry was dominated by the unorganized sector. It was a sellers’ market, with a
limited number of brands, and little choice available to customers. Lack of trained
manpower, tax laws and government regulations all discouraged the growth of
organized retailing in India during that period. Lack of consumer awareness and
restrictions over entry of foreign players into the sector also contributed to the delay in
the growth of organized retailing. This allowed the unorganized sector to rule the Indian
retailing industry. It was during this time that the foundation of PRIL was laid by Biyani.
Biyani was a commerce graduate with a past-graduate diploma in marketing. After
spending five years in managing his family business of trading textile and yarn, he
started with apparel manufacturing in the mid-1980s. Is Kishor Biyani a retailer or a fund
manager? That question might well be asked of him in the not too distant future. Over
the last few months, Future Capital Holdings (FCH), led by CEO Sameer Sain, has
stitched together a fully integrated financial services business model.
Management business in India with almost $830 million in assets. Now, it has big plans
in insurance, retail lending and forex services. “ Whether we have a consumer who
wants to leverage future income to realize his aspirations today or wants to save and
invest or buy protection for his family, we want to be a part of it “ , says Sain.
He believes that in 5-7 years, FCH’s bottom line will be bigger than the retail business.
In the Insurance business, the Future group has managed to wrest a 74 percent stake
in a joint venture by investing just rupees 100 crore. “ Italian Assicurazioni Generali,
ranked 21 on the Fortune 500 list, is a good fit for us because they derive almost 17

percent of their sales from mall assurance. They have also partnered another retailer in
the Phillipines “ , says Saini. Biyani estimates that with just a 1 percent footfall
conversion rate, the insurance business would have over 2 million customers. That
would earn him huge fees on distribution and catapult the company to amongst the
largest private insurance players by way of number of policies sold. Despite the global
economic recession and a consequent slowdown in the Indian economy, organized
retail continued to make headway although at a slower pace in 2009. Nonetheless, if the
current retail landscape is compared with that of 2004, it has undeniably become a
much larger environment. Retail stalwarts such as Wal-Mart, Tesco and Marks &
Spencer have already made inroads into the Indian retail industry and with multi billion
dollar investments.
1.3 RETAIL SCENE IN INDIA
Million sq. fts in available mall space by the end of 2007. Food and Grocery retail holds
the most potential, as almost 99% of it is unorganized. The omnibus edition of
pantaloons retail papers spans this very happening sector, which not only brings so
much joy to the inveterate shoppers in terms of retail therapy, but also employment and
livelihood to tens of thousands of Indians. India’s GDP growth rate is a healthy 9% for
2005-06 – and this had its ripple effect on all industries – more so the retail sector, of
which only 3% organized now. The Indian retail industry accounts for 10% of GDP and
8% of employment. India is being touted as the next big retail destination with an
average three year compounded annual growth rate of 46.64%. The Indian economy is
poised to take the third position in the world in terms of Purchasing Power Parity by the
year 2010. The Indian retail market is a rupees 1,200,000 million market as per the
Images India Retail Report 2007. Organized retail market is zooming ahead with an
annual growth rate of 30%. The retail sector is vibrant with growth happening in all
related areas – be they malls, hypermarkets or single brand luxury stores, they have
dotted the commercial landscape of the metros and have been percolated to the Tier II
and Tier III cities. Malls are fast becoming sought-after entertainment hotspots. From a
situation where there were no malls about a decade ago, the country will have over 300

malls translating to over 100 number of big players is entering the field of organized
food retail like Reliance, Aditya Birla Group and the Bharti Group, which has tied up with
the world’s largest retailer- Wal-Mart. All these major players are expected to show aan
annual growth rate of 25-30%.
The retail boom has also led to the opening of a large number of single brand outlets
across the country. With big brands and bigger outlets across all segments, from
Apparel and Footwear, Watches, Books and Stationary to Jewellery and Consumer
durables, the sweep is indeed broad in to sample the depth and breadth of this amazing
sector.
Types of Retail verticals operating in India are :
Food and Beverage
Health and Beauty
Clothing and Footwear
Home Furniture and Household Goods
Consumer Durable Goods
Leisure and Personal Goods
Economic slowdown serves as reality check for retailers
The global economic crisis and its impact on India resulted in a slowdown of the Indian
economy in 2009. This caused consumers to tighten their purses, and the availability of
financial support for retail expansion ddried up. This put a halt to the unprecedented
expansion seen over the review period. Lower consumer confidence resulting from the
recession, as well as job losses, resulted in fewer visits to retail stores, and
consequently sales plummeted for major retailers. With consumers becoming highly
discretionary, spending on non-essential items such as lifestyle goods was highly
impacted, making it one of the worst performing categories.

Retailers with financial backing weather the storm
Credit from banks and other lenders has been difficult to obtain in the current
environment, and retailers have suffered severely as a result. Some retailers are unable
to pay rental fees because all lines of credit have dried up. In such a tough operating
environment, retailers under the umbrella of a diversified holding company wwith access
to internal funds are faring better than other players. For example, Reliance Retail and
Aditya Birla Retail emerged relatively unscathed compared with smaller players such as
Subhiksha and Vishal Retail.
Internet retailing grows at phenomenal pace
Due to the increased penetration of the credit cards and availability of computing
facilities to a wider population, internet retailing is witnessing stellar growth. Internet
retailers offer products at discounted prices to consumers compared with store-based
retailers and bargain-hunting consumers are latching on to this fact. This has become
even more pronounced in light of the economic downturn as consumers have become
increasingly sensitive to price.
India’s attractiveness stands over long term
India’s burgeoning middle class offers considerable promise for organized retailing,
which is expected to remain attractive to organized retailers over the long term.
Liberalization and financial reforms would remain a key factor in the expansion of the
organized retail environment. The Government of India has introduced reforms to attract
Foreign Direct Investment (FDI) in retail industry. The government has approved 51 per
cent FDI in multi-brand retail and increased FDI limit to 100 per cent (from 51 per cent)
in single brand retail, and plans to allow 100 per cent FDI in e-commerce, under the
arrangement that the products sold must be manufactured in India to gain from the
liberalised regime.

Impact of Recession on the Indian Retail Market
The retail market in India is facing slowdown with the ongoing financial crisis happening
across the world markets. Since the markets always have internally linked with each
other, the impact of the crisis is generally shared among all. The following
circumstances are creating unwelcome interruptions to the Indian retail industry. The
industry hopes for the best alternations to overcome the acrimonious situations. Markets
in recession worldwide and India too: The meltdown in the world markets has shaken
the globe. Not even a single country seems to be off the hook. The high level of inflation
has been a wet blanket for the global markets. The roots of the world markets are nearly
pulled away with the heavy downfall of the American financial giants. Amongst many
countries, India too not exempted from the impact of world financial crisis. All this is
leading to a temporary recess for the markets from a regular busy schedule.
However these fluctuations are not new for global market. For the decades long,
markets across the world, have been witnessing such ups and downs. But the ultimately
fact is that the market growth rate is always constantly high when comparing to such
downfalls economic slowdown. The financial crisis is adding to the pressure on global
economies. The International Monetary Fund (IMF) now sees the world entering a major
slowdown.
Market Size
 The Indian retail industry has expanded by 10.6 per cent between 2010 and
2012. The Indian retail industry is one of the fastest growing in the world. Retail
industry in India is expected to grow to US$ 1.3 trillion by 2020, registering a
Compound Annual Growth Rate (CAGR) of 16.7 per cent over 2015-20.
 India is the fifth largest preferred retail destination globally. The country is among
the highest in the world in terms of per capita retail store availability. India’s retail
sector is experiencing exponential growth, with retail development taking place
not just in major cities and metros, but also in Tier-II and Tier-III cities. Healthy

economic growth, changing demographic profile, increasing disposable incomes,
urbanisation, changing consumer tastes and preferences are the other factors
driving growth in the organised retail market in India.
 India’s population is taking to online retail in a big way. The online retail market is
expected to grow from US$ 6 billion to US$ 70 billion during FY15-FY20.
Increasing participation from foreign and private players has given a boost to
Indian retail industry. India’s price competitiveness attracts large retail players to
use it as a sourcing base. Global retailers such as Walmart, GAP, Tesco and JC
Penney are increasing their sourcing from India and are moving from third-party
buying offices to establishing their own wholly-owned/wholly-managed sourcing
and buying offices.
 The Government of India has introduced reforms to attract Foreign Direct
Investment (FDI) in retail industry. The government has approved 51 per cent
FDI in multi-brand retail and increased FDI limit to 100 per cent (from 51 per
cent) in single brand retail, and plans to allow 100 per cent FDI in e-commerce,
under the arrangement that the products sold must be manufactured in India to
gain from the liberalised regime.
1.4 Online Retail
Indian consumers are demonstrating an increasing interest in online shopping, thanks to
the surging number of online users. The growing online retail market has become a very
lucrative business for international majors as well.
For instance, internet giant amazon, which has dedicated to the biggest markets until
now, has commenced an India-Centric website in June 2013. The number of Internet
users in India is expected to reach 450-465 million by June, up 4-8% from 432 million in
December 2016, a report from the Internet and Mobile Association of India and market

research firm IMRB International said. The report added its forecast does not factor in
the impact of demonetisation, which gave a boost to digital and mobile transactions.
The report said overall Internet penetration in India is currently around 31%. “Urban
India with an estimated population of 444 million already has 269 million (60%) using
the Internet. Rural India, with an estimated population of 906 million as per 2011
census, has only 163 million (17%) Internet users. Thus, there are potential
approximately 750 million users still in rural India who are yet to become Internet users;
if only they can be reached out properly.”
The report points out that 77% of urban users and 92% of rural users consider mobile
as the primary device for accessing the Internet, largely driven by availability and
affordability of smartphones. In urban India, the Internet user base grew by 7% to 263
million for year-on-year period ended October 2016, which is expected to be 275-285
million by June 2017. For the same annual period ending October 2016, rural India’s
Internet user base grew by 22% between to 157 million and is forecast to reach 170-180
million by June 2017.
The number of consumers who purchase online is expected to cross 100 million by
2017 end with e-retail market likely jumping 65% on year in 2018, an ASSOCHAM-
Resurgent India study said. "The year 2017 will see large scale growth in the Indian e-
commerce sector with increased participation from people across the country. This
industry will continue to drive more employment opportunities and contribute towards
creating more entrepreneurs through the e-commerce marketplace model,” the report
said.
The B2C e-commerce market in India has exhibited rapid growth and has attracted
large investments from the PE/VC community. With positive fillips from the demand and
supply side, this market is likely to reach $60Bn by 2017. Online retail is the fastest
growing channel globally, as confirmed by the Planet Retail’s retail panel data. The
online channel is expected to grow at a much faster rate vis-a-vis more established

channels as is expected to account for 10.1% of overall retail sales in 2018, up from
6.5% in 2013, and 3.5% in 2008.
The Indian online retail market has had a dream run in recent years when it comes to
transaction value, however significant challenges still remain. These challenges are
expected to drive consolidation in the market. If provided with the right regulatory
enablers and economic conditions playing out favorably, the online market opportunity
could be substantially higher. It remains to be seen as to how the current establishment
views the online retail market opportunity which could be a potential market
discontinuity in the India consumption story.
Retail Industry: Key Developments and Investments
Indian retail sector has high potential to attract foreign investment, with FDI policies
opening up more and more retailers are exploring Indian market which consists of more
than billion people. Even the existing ones are looking to spread their reach. Foreign
investments are important to India as well, as per leading media report India needs
around $1 trillion investment to overhaul its infrastructure such as ports, airports and
highways to boost growth. With the rising need for consumer goods in different sectors
including consumer electronics and home appliances, many companies have invested
in the Indian retail space in the past few months .As per the India brand equity
foundation following are major international retail investment in India:
 Iconic British toy shop chain Hamleys plans to open six more stores in India, taking its
total store count in the country to 32 by the end of March 2017.
 High-end home-furniture chain Roche Bobois Group has aggressive plans to solidify its
exiting footprint. As per the strategy, the retailer plans to open new stores in cities like
Hyderabad, Chennai, Pune, Kolkata and Ahmedabad, in order to make India one of its
top five markets by 2022.
 Retail stalwart Future Consumer Ltd has signed a joint venture (JV) with UK’s largest
wholesaler, Booker Group, with an investment of Rs 50 crore (US$ 7.5 million), to set

up 60-70 cash-and-carry stores in India in the next 3-4 years. With this JV Biyani aims
to reach Rs 20,000 crore in sales from in-house brands by 2021 and push these higher
margins products outside its own 800-odd stores.
 Adidas India Private Limited plans to open around 30-40 big flagship stores across
metro cities including Delhi, Mumbai and Bengaluru, by 2020.
 Switzerland’s luxury retail brand Bally mulling over to re-enter Indian market via a joint
venture with Reliance Brands Ltd, by opening its first store in New Delhi in March 2017,
and thereafter aiming to expand to four stores in Delhi, Mumbai, Kolkata and Chennai
over the next 3 to 4 years.
 Swedish home furnishing brand Ikea has drawn up a long-term plan for Indian market.
The retailer plans to invest Rs 10,500 crore (US$ 1.56 billion) to set up 25 stores across
India over next few years.
 New York-based designer brand Kate Spade will be marking India entry this year with
Reliance brands. In initial phase of expansion, the retailer will open two stores in the
capital city New Delhi.
 Walmart India plans to add 50 more cash-and-carry stores in India over the next four to
five years.
Government Initiatives
Retail sector in India is emerging as one of the largest sectors in the Indian economy.
The total market size was estimated to be around USD 600 billion in 2015, thereby
registering a CAGR of 7.45 % since 2000. It is expected to grow to USD 1.3 trillion by
2020.
Historically, retail companies used to focus on increasing their store footprint for growth.
However, in the recent past, they have moved to a consumer-centric operating model
wherein they are focused on satisfaction of various customer needs and hence, have
adopted strategies such as offering deep discounts, competitive pricing, easy sales
return policies, usage of data analytics, offering value added services, strong supply
chain,etc.

In order to take the retail sector forward, the Government has taken several initiatives /
steps such as liberalization of Foreign Direct Investment (‘FDI’) norms [including
permitting Single Brand Retail Trading (‘SBRT’) under e-commerce route, upto 49% FDI
in SBRT under the automatic route, etc.], the ‘Digital India’ movement, etc. The recent
demonetization measures are also likely to help in the retail sector becoming more
organised.
In this backdrop, some of the key budget expectations for the retail sector, from a tax
stand-point, are as follows:
One of the most important factors for the growth of the Indian retail sector is purchasing
power of the consumer. Therefore, the 2017 budget provides the Government with a
perfect platform to widen the tax slabs of individuals, which would in-turn lead to
increased disposable income in the hands of the consumer.
There have been multiple rounds of tax litigation in relation to the computation of arm’s
length price with respect to annual marketing, franchisee fees, advertising and sales
promotion spend, etc. With large MNCs setting up stores in India, these expenses are
only set to increase in the future. Hence, the 2017 budget provides the Government with
an opportunity to lay down appropriate guidelines / provide clarifications to the taxpayer,
so as to dispel uncertainty and reduce litigation.
This sector is expected to generate a large amount of employment opportunities in the
near future. In this regard, the Government, vide the Finance Act, 2016, had taken a
positive step, by extending the scope of deduction under section 80JJAA (ie additional
deduction for new employee salaries), to all companies and not restricting it to only
manufacturing entities, subject to the satisfaction of prescribed conditions.
The Government, vide the 2017 budget, could consider enhancing such tax benefits/
weighted deduction, specifically for the retail sector.

From an indirect tax stand-point, Goods and Service Tax (‘GST’) is a long awaited
reform, as it would play an important role in removing the various artificial trade barriers
and would also be a huge boost to trade in the country. It would also help retailers to
enjoy the benefits of a simplified indirect tax structure and reduce the cascading effect
of taxes.
Currently, retailers pay a significant amount of service tax on various expense items
such as rent, maintenance charges, etc, as well as other Central duties like Excise duty
on direct procurement of goods from manufacturers, Additional Customs duties on
imports, etc, which cannot be adjusted with output tax charged on the sale of goods in
most cases. Hence, the input tax credit could be lost. It is expected that under the GST
scenario, there would be seamless flow of credit and thereby, the cost would reduce.
Rationalisation/ reduction in the import duty on identified products could help in
increasing the net margins, thereby providing a boost to traders.
In line with the recent demonetization measures and ‘Digital India’ initiatives, the
Government could consider granting certain tax incentives / benefits, to encourage
cashless transactions. This would also facilitate the shift to organized/ formal retail.
The aforesaid reforms/ incentives, especially GST (which is now expected on 1 July
2017), could provide a real boost to the retail sector. While the past few years have not
seen too many benefits doled out to the retail sector, we can only hope that this year will
see a change in the approach of the Government and that it would take more
cognizance of the potential of this sector.
Road Ahead
With Modi’s Government there is a growing mood of expectation as he dates with many
a world leaders to woo foreign investors to our shores. And although more work is yet to
be done, the Government is taking steps to ease the flow of foreign investment and
ownership, which will increase the flow of money into the retail market and see more
foreign brands in India.

This will help new retail centres offer more choice for the avid shopper. India seems to
be absorbed by Americas love for statistics, and yet more growth values continue to
flood in, as we are to understand by 2020 its retail market worth is to double to one
trillion USD. It will achieve a growth of 20 per cent per year and have a GDP of 10 per
cent. Yet with all these statistics the “proof of the pudding” is how we can create
sustainable retail developments that stand the test of time for whatever the financial
model of the developer.
The e-commerce industry is also set to rise from $35 million to $100 million in the next
two years. We see this beginning to happen already as the so called “brick-and-mortar”
companies such as Croma and the Future Group, align with online retailers such as
Amazon and Snapdeal. Exciting times for not only new retail growth but a change in our
shopping experience. The “physical” retail model certainly for the long term still seems
the more popular option, but the future holds a new realm of experiences and
possibilities as we move to a more “virtual” online mode of consumerism.
The greatest of India’s challenges is in the provision of adequate infrastructure to cater
for such large scale developments. In particular concern are the most densely
populated tier 1 cities such as Mumbai. The city desperately lacks visionary leaders to
“master plan” the city’s hunger for development and demand.
Currently Mumbai’s population sits at 18,000,000 already a burden to its present
infrastructure. By 2025 we will see this number grow close to 27,000,000 inhabitants.
How we deal with this magnanimous implication on both environment and infrastructure
is an issue that can’t wait and needs to be addressed immediately.
The only way we can create sustainable livable environments that ultimately improve
the human condition is to provide “our people,” basic needs for cleanliness, mobility of
travel and opportunity. So be it retail development or any other offer, these challenges
remain issues fundamental to the heart of a prosperous India. Of course the demands

for mixed use retail models will increase and with this the need for adequate
Infrastructure. With these demands, we are continuing to expand our sector work (asset
classes) and are beginning to venture into larger master planning developments;
particularly where there is a large retail driven mixed use component.
Retail developments in India are certain to change in the next 10 years. We will see a
growing demand for virtual stores, a more interactive and digital experience evolving
and with this a change in the nature of the traditional centre. Much has also been talked
about open retail offers as part of mixed use offers where the focus will be concentrated
on the creation of open streets and the creation of great public space. Indeed we can
certainly see some such centres already becoming popular in Gurgaon.
The challenges ahead are many, from the need for better infrastructure, tighter profit
margins in the organised sector (gross margins 7-8 per cent lower compared to
international centres), and an increasingly uncertain global economy. India however
continues to mature and understand the long term needs of effectively managing any
retail centre, with this vision we will see the “organised” retail model change and be a
growing part of our lives and landscape.

CHAPTER – 2.

CHAPTER 2 : COMPANY PROFILE
2.1 Introduction to Pantaloons
Pantaloons is India’s fastest growing premium lifestyle apparel company. With
innovative designs, concepts and products, the company brings the latest trends in
fashion and clothing styles to the apparel market.
The company offers an incredible and complete one-stop shopping experience to its
buyers through its vast collection of more than 100 prestigious brands for the discerning
fascinates. The 81 aesthetically designed stores spread across the country display a
range of classy and trendy merchandise that truly lives upto pantaloons maxim of ‘fresh
fashion’.
A typical pantaloons store is spread across a sprawling retail space of about 28,000 sq.
ft., comprising a brand portfolio that runs across a wide gamut of styles that spell class.
The collection includes ready-to-wear western and ethnic apparel for men,women and
kids, complemented by an exhaustive range of accessories.
The women’s section houses the private labels- Bare Denim, Bare Leisure, Rig,
Annabelle, Honey and Ajile – in western wear, as well as the choicest ethnic wear from
RangManch, Trishaa and Akkriti. Popular brands like Biba, Aurelia, W(W for Women),
Ira Soleil, Global Desi and Fusion Beats are also available.
The private labels for men in western wear include Rig, Bare Denim, Bare Leisure,
Urban Eagle, SF(San Francisco), Byford, Ajile, Spiritus, Indus Route, Richard Parker,
Alto Moda and JM Sport apart from trendy brands like Turtle, Pepe Jeans London,
Levis, Spykar, UCB(United Colors of Benetton), John Player Jeans, Black Berry,
Theme, Peter England, Van Heusen, Indigo Nation and John Miller. Akkriti provides a
wide selection of ethnic wear.

Kids can choose from private labels like Bare Denim, Bare Leisure, or indulge in
exclusive brands like Chalk, Chirpie pie and Poppers. For the ethnic look, they can opt
for traditional wear from Akkriti.
Pantaloons offer much more than just apparel. Customers can shop from an assortment
of watches from renowned international brands like Tommy Hilfiger, Espirit, Kenneth
Cole, Citizen, Timex and Titan, among other brands.
Trendy sunglasses from Polaroid, Guess, Police, Scott, I Dee and Allen Solly are also
available. The accessories and beauty segments display an attractive collection of
ladies handbags from Lavie, Capresse and Fast Track. Also available are products from
color cosmetic brands such as Bourjois, Chambor, Deborah, Faces, Revlon, Maybelline
and Lakme as well as a wide collection of exotic fragnances.
With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on
growth wwhile continuing to create fresh fashion. Pantaloons is recognized by its warm
personalized service that completes the core proposition of this trendy chain.
2.2 Introduction to Aditya Birla
Aditya Birla Nuvo
Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4.75 billion conglomerate by revenue size. It is
part of the Aditya Birla Group, a US$ 41 billion Indian multinational. Having a market
cap of US$ 3.5 billion (Rs. 24579 Crore) as on 11th July 2017, ABNL is present across
Financial services, Telecom, Fashion & Lifestyle, IT-ITeS and manufacturing
businesses. Anchored by over 53,750 employees, ABNL touches lives of more than 125
million Indians. ABNL is also a prominent player in Private Equity, Wealth Management
and Broking & General Insurance Advisory space.

Besides its successful presence across a wide gamut of sectors and verticals, Aditya
Birla Nuvo Ltd (ABNL) now holds a controlling stake in Pantaloons format stores which
was previously controlled by the Future Group.
With this strategic development, both ABNL and Future Group will now work closely for
deriving operational synergies in terms of back-end and supply chain, apart from
several other mission-critical value drivers of the business. Moreover, the leadership
teams of both groups have also committed to oversee a fashion council, which has
been setup to explore contemporary trends in new-age fashion wear, thereby driving
further value-creation for Pantaloons stakeholders by keeping it at the leading edge of
the fashion industry.
THE ADITYA BIRLA GROUP: A PREMIUM GLOBAL CORPORATION
A US $41 billion (Rs. 2,50,000 crore) corporation, the Aditya Birla Group is in the
League of Fortune 500. Anchored by an extraordinary force of over 120,000 employees,
belonging to 42 nationalities. Over 50 per cent of its revenues flow from its overseas
operations spanning 36 countries.
The Aditya Birla Group has been ranked fourth in the world and first in Asia Pacific in
the ‘Top Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune
Magazine and RBL (a strategic HR and leadership Advisory firm). The Group has
topped the Nielsen's Corporate Image Monitor 2014-15 and emerged as the Number
one corporate, the 'Best in Class', for the third consecutive year.
Globally, the Aditya Birla Group is:
 A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the

three biggest producers of primary aluminium in Asia, with the largest single location
copper smelter
 No.1 in viscose staple fibre
 No.1 in carbon black
 The fourth-largest producer of insulators
 The fifth-largest producer of acrylic fibre
 Among the top 5 cement producers globally
 Among the best energy-efficient fertiliser plants
 The largest Indian MNC with manufacturing operations in the USA, wherein 95 per cent
of the workforce comprises of Americans
Aditya Birla Group – The Indian Scenario
 A top fashion (branded apparel) and lifestyle player
 The second-largest player in viscose filament yarn
 The largest producer in the chlor-alkali sector
 Among the top three mobile telephony companies
 A leading player in life insurance and asset management
 Among the top two supermarket chains in the retail business
Aditya Birla Group – Beyond Business
 Reaches out annually to 7.5 million people through the Aditya Birla Centre for
Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.
 Works in 5,000 villages globally.
 Focuses on: health-care, education, the girl child, sustainable livelihood, women
empowerment projects, infrastructure and espousing social reform.
 Runs 42 schools which provide quality education to 45,000 children. Of these 18,000
students belong to the underprivileged segment. Merit Scholarships are given to 24,000
children from the interiors.
 Its 18 hospitals tend to more than a million villagers.

 Ongoing education, healthcare and sustainable livelihood projects in Philippines,
Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of people out of poverty.
 Set up the Aditya Birla India Centre at the London Business School.
The Aditya Birla Group transcends conventional barriers of business because we care.
We believe it is our duty to facilitate inclusive growth as well.
Over 50 per cent of its revenues flow from the overseas operations. The group operates
in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France,
Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,
Luxembourg, Malaysia, Myanmar, Phillippines, Poland, Russia, Singapore, South
Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK,
USA and Vietnam.
2.3 Aditya Birla took over Pantaloons Retail Chain
Aditya Birla Nuvo Ltd (ABNL), a unit of the $28 billion (Rs 1.5 trillion) Aditya Birla Group,
will acquire a majority stake in the Pantaloons retail chain of debt-laden Pantaloons
Retail India Ltd (PRIL), India’s largest listed retail company by revenue.
The proposed transaction, which will help the Future Group’s PRIL pare debt, is likely to
be completed within 8-10 months, subject to the scheme of arrangement being finalized,
due diligence, and statutory and other approvals, ABNL said in a statement.
Future Group founder Kishore Biyani has been looking to reduce debt that’s been
accumulated by rapid expansion as PRIL has sought to build scale rapidly. Meanwhile,
the intense political opposition to foreign direct investment in multi-brand retail has
meant that any plans of selling stakes to overseas retail companies had to be shelved.
The new, separated unit will eventually become a subsidiary of ABNL, the other units of
which include Madura Fashion & Lifestyle and Jaya Shree Textiles.
The separation will help PRIL, which had debt of Rs 5,800 crore as of December 2011,
reduce this amount by Rs 1,600 crore, according to a PRIL statement.

“This deal is being done to reduce debt as non-core business transactions like Future
Capital are taking some time to finalize”, said Abhishek Ranganathan of MF Global Sify
Securities India Pvt Ltd.
ABNL, which owns apparel brands such as Louis Philippe and Allen Solly, said it will
infuse Rs. 1,600 crore in the pantaloons department retail chain business by issuing
debentures worth rupees 800 crore at mutually agreed terms and taking on debt of Rs.
800 crore.
An investment banker, who did not want to be named, said it wouldn’t be possible to
compute the value of the deal till the “mutually agreeable” terms are made public.
After the separation, the debentures will be converted into equity shares of the resulting
entity, ABNL said in the release. PRIL will hive off the Pantaloons chain.
ABNL will make an open offer for a minimum 26% to the shareholders of the resulting
unit. After its listing and on conversion of the debentures into equity, ABNL’s holding will
be a minimum 50.01%. The resulting unit will become a subsidiary, ABNL said in the
statement.
Rakesh Biyani, managing director at PRIL, and Kailash Bhatia, an executive director at
the firm, will continue to manage the Pantaloons chain. A Fashion Council will be setup,
comprising the objective of fully leveraging the strengths of Madura garments and
pantaloons. JM Financial Ltd acted as the sole financial adviser to the transaction, PRIL
said in the statement.
Future Group, which has retail businesses under PRIL in food, fashion, home and
consumer electronics, besides other segments such as financial services, has been
looking to reduce debt. “This announcement is just the first in a series of
announcements that will happen over the next couple of months which will see the debt
reduce”, a company spokesperson said.

The origin of PRIL can be traced back to 1987, when Kishore Biyani founded Manz
Wear Pvt Ltd to manufacture trousers bearing the brand name Pantaloon. It went public
in 1991 and changed its name Pantaloon Fashions in the same year, and to Pantaloon
Retail in 1999. Over the last one year, the market capitalization of PRIL has eroded by
Rs 1,598.72 crore from Rs 5,793.06 crore to Rs 4,194.34 crore.
PRIL shares jumped 9.25% to close at Rs 187.75 each, while ABNL shares rose 0.26%
to end at Rs 933 a piece on BSE. The benchmark Sensex gained 0.76% to close at
17,318.81 points. In the last one year, PRIL has lost 31.69% and ABNL has gained
6.99%.
Earlier this year, the Aditya Birla Group undertook a management recast at food and
groceries business Aditya Birla Retail Ltd, as it looked to cut losses by shutting down
more than 10% of its unviable supermarket stores run under the brand name More. The
revamp saw Madura Fashion Chief Executive Officer (CEO) Pranab Barua replacing
Thomas Varghese as CEO of Aditya Birla Retail. Varghese then took over as head of
Jaya Shree Textiles.
“This marks a unique coming together of brands and enterprise that will create
significant value for customers, suppliers and all stakeholders”, said Kishore Biyani, who
is also group CEO of Future Group, the parent of Pantaloons.
“The proposed acquisition is in line with our strategic intent to be on the top of the
league and to create the largest integrated branded fashion player in the country
through an extension into the value segment. This acquisition will catapult ABNL to the
pole position in the branded fashion space in all the segments with a pan-India
presence”, said Kumar Mangalam Birla, Chairman of ABNL.
2.4 ADITYA BIRLA FASHION AND RETAIL LIMITED
Aditya Birla Fashion and Retail Limited (ABFRL) emerged after the consolidation of the
branded apparel businesses of Aditya Birla Group comprising ABNL's Madura Fashion
division and ABNL's subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura

Fashion & Lifestyle (MF&L) in May 2015. Post the consolidation, PFRL was renamed
Aditya Birla Fashion and Retail Limited.
ABFRL brings together the learnings and businesses of two renowned Indian fashion
icons, Madura Fashion & Lifestyle and Pantaloons Fashion and Retail. ABFRL is India's
No 1. Fashion Lifestyle entity with a combined revenue of Rs.6,633 crore for FY17,
growing at a rate of 10 per cent and EBITDA of INR 476 crore for FY'17 that has grown
at 18 per cent over the last year.
The ABFRL umbrella includes:
Madura Fashion & Lifestyle
Madura Fashion & Lifestyle, a division of ABFRL, was the first player operating on a
national scale, dedicated to the core business of fashion retail in India. Originally known
as Madura Garments, MF&L was born in 1988 at the cusp of the unshackling of the
Indian economy. Fashion in those days was not what the consumer's aspirations
merited. MF&L has a vast retail network comprising exclusive outlets, premium multi-
brand and department stores. Four of its brands are among India's top fashion names,
with MRP sales in excess of Rs. 1,000 crore each.
Brands
Louis Philippe led the aspiration for fashion excellence, giving its customers access to
the finest in global fashion. Van Heusen focused on empowering the fashion ambitious
professional partnering his career ambitions with power dressing. Allen Solly was for
those looking for a smart fashion alternative. It came out with the concept of Friday
Dressing. Peter England with its promise of honest-to-goodness prices emerged the
favourite for a large mass of first jobbers. Brand extensions to new categories –
including sportswear, footwear, bags and accessories – have been at the core of MFL's
leadership in its segments.
MF&L brands have also established strong roots in womenswear and are getting
popular in kidswear as well. The company also houses a range of other fashion formats
– Planet Fashion, The Collective, Hackett London, and Trendin. Planet Fashion is a

multi-brand, apparel-retailing format that houses MF&L's in-house brands and some
significant others. The company's premium lifestyle store, The Collective, offers a
unique blend of global fashion, international trends and luxury customer services to
customers.
Madura F&L has entered into the luxury mono brand business in India and through a
joint venture introduced the quintessential British men's luxury brand Hackett London
into India. The journey of MF&L has been a journey of pro-actively partnering the ever-
evolving Indian fashion consumer.
ABFRL has acquired exclusive online and offline rights to market the global brand –
‘Forever 21’ and its existing store network, in the fast-fashion segment in India. To
expand its international portfolio, ABFRL entered into exclusive partnerships with two of
UK’s most successful fashion brands, ‘Simon Carter’ and `Ted Baker’.
Pantaloons
Voted as 'India's Most Trusted Apparel Retail Brand' (Brand Equity Survey 2014-
15), Pantaloons, a division of ABFRL, is one of the most loved large format fashion
retailers in India. Post-acquisition by Aditya Birla Nuvo Limited in 2013, Pantaloons is
today the fastest growing large format retailer in the country. The rate of new store
openings has increased from one every two months to one every two weeks. The brand
is now present in 78 Indian cities/towns.
Pantaloons posted revenues of Rs.2,164 crore in FY15-16, up 17 per cent from the
previous year. Pantaloons offers a wide range of brand offerings across apparel and
non-apparel categories and across varied price points. It operates across categories of
casual wear, ethnic wear, formal wear, party wear and active wear for men, women and
kids. Womenswear is the lead category contributing to half of total apparel sales. Non-
apparel products include footwear, handbags, cosmetics, perfumes, fashion jewellery
and watches.

Pantaloons began in 1997 as a Future Group company in the quest to equip the
emerging Indian middle-class with an indigenous fashion retail format. Consistent with
the times, the model was of a discount fashion retailer.
Brands
Pantaloons today retails over 200 licensed and international brands, including 24
exclusive brands. The Pantaloons exclusive brand bouquet includes Ajile, Akkriti, Alto
Moda, Annabelle, Bare Denim, Byford, Candie’s New York, Chalk, Chirpie Pie, Honey,
Izabel London, Poppers, Rangmanch, Richard Parker SF Jeans, Trishaa, Urban Eagle;
besides, it also features brands licensed on a long- term basis: Bare, Rig, SF Jeans,
Byford, JM Sports, Lombard and Candie’s New York.
It also hosts Madura F&L's brands such as Louis Philippe, Van Heusen, Allen Solly,
Peter England and People in menswear; Van Heusen and Allen Solly in womenswear,
and Allen Solly Junior. It retails partner brands such as John Miller, Celio, Spykar, Levis
and Lee Cooper in menswear; Jealous 21, 109*F, AND, Chemistry and KRAUS in
women's western wear; BIBA, Global Desi, and W in women's ethnic wear; Barbie and
Ginny & Jony in kidswear.
ABFRL altogether hosts India's largest fashion network with over 7000 points of sale
across over 375 cities and towns, which include more than 2,000 exclusive ABFRL
brand outlets. With ~16 million Loyalty Members as of FY’17, ABFRL has a strong
bouquet of loyalty programmes in India. ABFRL boasts of creating more than 20,000
new designs every year.
2.5 Pantaloons Green Card
THE PERKS OF BEING IN LOVE WITH FASHION
1 Star --
 2 points per Rs.100
 No questions asked Exchange Policy, valid for 90 days, bill not required
 Instant Redemption on next bill at cash counter

 Convenient Mobile based program
 Sale Preview
 Complimentary Home-Drop of altered apparel
3 Star –
 % discount as points
 Sale Preview
 Exclusive Billing Counters
5 Star –
 5% discount as points
 Sale Preview
 Reimbursement of paper carry bags (as reward points)
7 Star –
 7% discount as points
 Sale Preview

 Reimbursement of paper carry bags (as reward points)
(Note: The value of 1 point is 25 paise)
PROCESS TO UPGRADE PANTALOONS GREENCARD MEMBERSHIP--
The preceding 12 months shopping is taken into account to upgrade. The Table below
illustrates the same.
AMOUNT SHOPPED FOR
IN LAST 12 MONTHS
TIER
GREEN CARD
REWARDS
0-7999 1 STAR 2 POINTS PER RS.100
8000-19999 3 STAR
3% DISCOUNT AS
POINTS
20000-39999 5 STAR
5% DISCOUNT AS
POINTS
40000+ 7 STAR
7% DISCOUNT AS
POINTS

PROCESS TO MAINTAIN PANTALOONS GREENCARD TIER--
From the day of tier assignment one needs to maintain a minimum shopping account for
the next 12 months. This account varies from tier to tier and is as follows:
AMOUNT SHOPPED FOR
IN LAST 12 MONTHS
TIER
GREEN CARD
REWARDS
8000-19999 3 STAR
3% DISCOUNT AS
POINTS
20000-39999 5 STAR
5% DISCOUNT AS
POINTS
40000+ 7 STAR
7% DISCOUNT AS
POINTS
If this minimum criteria is not met, one is assigned the preceding tier. 1 Star members need to
shop at least once in the preceding 24 months to retain their membership.
2.6 Pantaloons Brands
The company has 24 domestic and foreign brands that were developed independently
of the retail presence of the group.
These brands are present in every segment within the fashion space including
menswear, activewear, partywear, women’s ethnic and formal wear, kidswear, footwear
and accessories and are present across various price points. While many of the brands
have been developed by the company over a decade, the company also has exclusive
licensees and joint ventures of global brands.
While all the company’s brands are sold through the company’s retail chains, these
brands are also distributed through independent distribution channels, exclusive brand
outlets and other modern retail chains like Lifestyle, Shoppers’ Stop, Reliance Trends,
Mega Mart.
In Pantaloons Store, there are two types of brands available there. These are —

(1) Pantaloons Home Brands –
It consists of brands which are of Pantaloons. These brands are –
Bare Denim, Bare Leisure, Byford, Ajile, Alto Moda, SF (San Francisco), Honey,
Indus Route, JM Sport, Rig, Annabelle, Izabel London, Candie, Akkriti, Rang Manch,
Trishaa.
(2) Non-Pantaloons Brands –
It consists of brands which are not of Pantaloons. These brands are –
Indigo Nation, John Miller, Celio, UCB, Turtle, Spykar, Levis, Pepe Jeans London, Black
Berry, Theme, Peter England, Van Heusen, AND, Kraus, Jealous 21, etc.

Bare Denim offers a range of denim wear that compliments everyday life. Choose from
a wide variety of checkered shirts, graphic t-shirts, printed tops, denims, dresses and
shorts to keep your wardrobe always updated with daily trends.
Transform your look from work to weekend seamlessly with smart casuals from Bare
Leisure. The collection offers khakis, smart checkered shirts, colored chinos and
graphic tees suitable for work and leisure.
Throughout the 1990s, Byford extends its footprint across the Middle East, and Asia,
pioneering the way forward for British brands in China. The Byford tradition in quality
Menswear has now been extended to embrace a full range of clothing and accessories.
Today, the brand has more than 1,500 sales points across the world. Byford offers
British sports inspired design with a preppy touch for an impeccably stylish look.
Sophisticated dual toned t-shirts, polos with badges, sweatshirts, and checkered shirts
are the quintessential brand must-haves that never fail to impress.
Ajile is a sports lifestyle brand that imbibes a distinctively vibrant and casual look. The
collection offers a wide range of athletic apparels and sports casuals, sweatshirts, dry fit
T-shirts, shorts, three fourths, track pants and more to make your sporty life exciting.

Alto Moda - the plus size fashion collection for men and women allows you to explore
an effortlessly stylish yet comfortable look. The collection offers formal shirts, trousers,
denims, striped and graphic printed t-shirts for men available exclusively at Pantaloons.
Edgy , rock star inspired and tough, San Frisco Jeans Co is all about going bold this
season. It’s grunge inspired fashion for men and women. The collection offers
distressed fashion denims, leather jackets, lace dresses, racer backs, crop tops, graphic
prints inspired by hard rock and more to add edgy glamour to your wardrobe.
Honey offers fun and peppy casual wear for the young girls who are free spirited,
impulsive yet a romantic at heart. The range encompasses stylish day wear - floral,
feminine & vibrant.
Trace back to your glorious heritage with contemporary ethnic wear for men from Indus
Route. With a wide array of kurtas, Nehru jackets, pathanis, waist coats, salwars and
fusion tees, the brand weaves a contemporary tale into classic Indian cuts to make a
statement like no other.

JM Sport offers classic casuals with an aristrocatic lineage that is visible in the diversity
of stripes and shades in each of its t-shirts. Striped polos t-shirts available in a wide
range of colors make for a perfect day wear.
Outdoor, Utility and Casual lifestyle, that’s the heart of this brand. Specially designed for
the free-spirited individuals. Those who love to take the uncharted off the beaten track.
Always ready to travel, always ready to explore.
Annabelle is a 9 to 9 western fashion wear for the ladies. The collection blends
femininity with formal wear. Understated elegance in contemporary and classic styles is
the key offering to every fashionista's wardrobe.
Stay effortlessly elegant with Izabel London's sophisticated and feminine fashion that let
you carve your unique style. Choose from a wide array of dresses, tops, trousers and
tunics to create a casual wardrobe that will carry you from brunch outings to art gallery
openings with equal panache.

Fun and flirty - flaunt your style with the all new collection by Candies exclusively
available at Pantaloons. Dainty floral dresses, delicate lace tops, frilly skirts, printed
leggings and bodycons make for the wardrobe essentials of every 'it' girl.
Akkriti is a fusion ethnic wear brand for the uber cool Indian girl who loves to explore &
experiment. This contemporary collection offers indo-western silhouettes. The eclectic
vibe of colours, fabrics, and designs make it a great option for those who want to have
fun with their style.
Rangmanch offers mix-n-match Indian wear for that simple yet stylish woman. Every
ensemble is a mélange of contemporary styles with an Indian vibe translated into kurtas
and churidars exuding charm and simplicity.
Indian tradition elegantly embodied in Trishaa. A plethora of designs ranging from
opulent paisley to intricate chikan work to beautiful embroidery, it’s a combination of
salwar-kameez-duppata sets perfect for every traditional occasion.

Indigo Nation has always been the cult brand for the young and the restless, delivering
fast fashion to the young Indian dude who forever aspires to be IN. The Indigo Nation
dude’s stance is always “Subject to Change”.
John Miller presents a range of everyday corporate wear and accessories that
unfailingly makes you look confident and fluent. It includes formal shirts, trousers,
blazers, ties and accessories like belts and wallets. In line with the more relaxed work
culture seen now a day, John Miller has also introduced a range of relaxed office wear -
John Miller Hangout. The range includes printed shirts, polos, khakis, chinos & denims.
Celio is an iconic French brand that is operating with the company as a joint venture
since June 2008. The brand offers a wide selection of casual wear and denim wear and
also has a chain of 30 exclusive brand outlets in key cities across the country.
Benetton Group is a global fashion brand, based in Ponzano Veneto, Italy. The name
comes from the Benetton family who founded the company in 1965. Benetton has a
network of about 5,000 stores in the main international markets.

Pepe Jeans contribute to both man and women’s wardrobe by their wide collection of
trendy T-shirts, shorts, pants, Jerseys and skirts. The shirts have colored checks and
highlighted stripes. The Pepe clothing sports tones of red, yellow, pink, lime and green
and some have hand embroidered details. Pepe Jeans host many fashion shows and
advertising campaigns and sign many famous models and sports personalities.
Created in 1873, Levi's® jeans are the original, authentic jeans. They are the most
widely recognised and often imitated clothing products in the history of apparel. Over
successive generations, Levi's® jeans have captured the attention, imagination and
loyalty of diverse individuals. As the inventor of the category, the Levi's® brand
continues to define jeanswear with the widest range of products available, from
quintessential classics such as the famous Levi's® 501® Original jean, to favourite fits
and styles in the Red Tab™ and premium collections.
Spykar, the unisex Jeanswear brand has come a long way in establishing itself as
India’s most trusted denim brand amongst the youth and recently has been voted as the
‘most exciting Indian brand’ by Economic Times (Brand Equity Survey). Right from
denims, shirts, t-shirts, non-denim bottoms, and tops to accessories like belt, socks,
perfumes, deodorants and bags, Spykar continues to set trends while it promises 100%
comfort and styling.

Before AND was launched, there weren’t many designers catering to the needs of the
Indian woman. Our country is unique in terms of its culture, which made it even more
important to understand what she was looking for, her psyche, her body and her comfort
levels. AND offers a chic collection of western wear that comfortably combines formal
and evening wear. It has evolved to keep pace with its clients’ changing lifestyles. AND
takes them to higher levels of comfort and confidence by making them look, feel, work
and play better.
Kraus is a casual wear lifestyle brand, fit for the fashion conscious woman of today.
What makes us different from other denim manufacturers is the fact that we’ve paid
careful attention to the body structure of Indian women while designing our jeans. All
our denims are tailored with the unique body structure of Indian women. There’s
absolutely no compromise when it comes to fabric and colour, and the different styles
ensure that they get pair of denims that they feel comfortable and confident to wear. At
Kraus, quality is a part of our fabric, and is woven deep into our principles.
Jealous 21 is India’s leading exclusive women’s wear brand, revolutionized the jeans
market for women by launching jeans that fits every body type of Indian women. The
brand offers an elaborate range of hip-fit jeans is an equally stunning range of tops &
tees. Oozing with oomph, this brand is designed to infatuate today’s young women.

2.7 Mission and Vision :-
Mission
To deliver superior value to our customers, shareholders, employees and society at
large.
Vision
To be a premium global conglomerate with a clear focus on each of the business.
2.8 Board of Directors :-
Chairman Mr. Kumar Mangalam Birla
Managing Director Pranab Barua
Company Secretary Geetika Anand
Non Executive Director Sushil Agarwal
Non Executive Independent Director Sukanya Kripalu
Bharat Patel
Arun Thiagarajan
Business Head (Madura Fashion & Lifestyle) Mr. Ashish Dikshit
Business Review Council Mr. Shailendra Jain
Group Talent Mentor Mr. Ratan Shah

CHAPTER – 3.

CHAPTER 3 : RESEARCH METHODOLOGY
General Introduction
This study about “Customer Buying Behavior” is conducted to know about the buying
behavior of the customers in shopping with Pantaloons. This study is limited to
Pantaloons which is located in Exhibition Road, Patna.
Customer Buying Behaviour
Customer Buying Behaviour is the study of individuals and the processes they use to
select, secure, use and dispose of products, services, experiences or ideas to satisfy
needs and the impacts that these processes have on the consumer and society.
Customer behavior is increasingly a part of strategic planning for the future investment
and growth of any industry. Retail industry or precisely to say Apparel industry is no
exception.
Customer can either be subjective or objective, testing the persuasiveness of brand
names. Retail stores selling the products also play an important role in swaying the
decisions of customer. The whole package or visual appeal of the retail outlet can
determine sales or the service of the sales ladies or the clerks. Furthermore, customer
may choose particular products/brands not only because these products provide the
functional or performance benefits expected, but also because products can be used to
express customers personality, social status or affiliation or to fulfill their internal
psychological needs, such as the need for change or newness. Customer behavior
refers to the mental and emotional process and the observable behavior of customers
during searching, purchasing and post consumption of a product or service. Consumer
behavior involves study of how people buy, what they buy, when they buy and why they
buy. It blends the elements from Psychology, Sociology, Social Psychology,
Anthropology and Economics.

Factors affecting Customer buying behavior
Customer buying behavior is influenced by the major three factors :
1. Social Factors
2. Psychological Factors
3. Personal Factors
1. Social Factors :
Social factors refer to forces that other people exert and which affect customers’
purchase behavior. These social factors can include culture and subculture, roles and
family, social class and reference groups.
2. Psychological Factors :
These are internal to an individual and generate forces within that influence his/her
purchase behavior. The major forces include motives, perception, learning, attitude and
personality.
3. Personal Factors :
These include those aspects that are unique to a person and influence purchase
behavior. These includes demographic factors, lifestyle and situational factors.
3.1 Introduction to the study :-
Pantaloons want to study the buying behavior of the customers so that they can analyse
the buying patterns of the customers and improve their efficiency of product offers and
services. This study also helps them in improving the conversion ratio and customer
traffic.

3.2 Statement of the problem :-
To study the customer buying behavior at Pantaloons, through accessing the
effectiveness of service delivered.
3.3 Objectives of the study :-
 To know about the buying behavior and satisfaction level of the customers.
 To study the factors affecting the phases of buying behavior.
 To study the quality of service provided at Pantaloons to support buying
behavior.
 To know the impact of the marketing and channels of communication on the
customers buying behavior.
3.4 Scope of the study :-
 Research is done among the group of people shopping at Pantaloons located in
Exhibition Road Patna.
 Research is done among the people who frequently shop at Pantaloons.
 Research is done among the people who interact with floor staff before buying
merchandise.
 Research is done among the people who interact with Customer Service Desk
(CSD) after their purchase.
3.5 Research Methodology :-
The research methodologies are using primary data collection and secondary data
collection. Here primary data collection is performed through Questionnaire. A sample
size of 50 customers is taken randomly. The sample is limited to the visitors of
Pantaloons at Exhibition Road Patna.
The sample is collected by approaching respondents personally and the people who
bought something from the store. The sampling chosen is a random sampling so that
every respondent has equal chance to respond.

The collected data in the form of questionnaires is then processed and the analysis is
done so that we can suggest improvements based on findings.
Research Design :-
 The research design chosen for this research is Descriptive Research design as
there is plenty of data available as secondary data and a lot of researches are
done before.
Sampling Design :-
 Sample Size-
Sample Size taken to conduct the research 50.
 Sampling Method-
The sampling method used to conduct the research is Simple Random Sampling
which helps all units from the sampling frame have an equal chance to be drawn
and to occur in the sample.
 Sample Frame-
As we have selected simple random sampling the researcher had the freedom to
select the sample randomly where there is equal chance for every sample to be
taken and includes only the shoppers at Pantaloons at Exhibition Road, Patna.
 Sample Unit-
The sample unit considered here are the people who visit pantaloons and other
retail formats to purchase merchandise in Pantaloons.
3.6 Data Collection Design :-
Primary Data
 Primary data is collected using a random sampling technique and with the help of
questionnaire. The data is collected personally by approaching the sample.

Secondary Data
 Quantitative data.
Scaling Design
 The questionnaire consists of questions which are based on nominal scale Likert
Scale.
Questionnaire Design
 The questionnaire is prepared by researcher using open-ended, close-ended,
dichotomous and multi-dichotomous questions.
3.7 LIMITATIONS
This project report suffers from following limitations:
1. Questionnaires were filled in evenings, when most of the people are in hurry and they
might not have responded truly to all the questions.
2. Our research is limited to only one store of Pantaloon at Exhibition Road Patna and
Sample Size is of 50 respondents so errors may crop in while generalizing the results.
3. Those who came out of Pantaloon Store after shopping were chosen for getting the
questionnaires filled but they held bulky polyethylene bags due to which they found it
difficult to stand for long and answer the questions.
4. Most of the retail outlets mentioned in our questionnaire may or may not be visited by
respondents; this affected their response to various questions.

CHAPTER – 4.

CHAPTER 4 : DATA ANALYSIS & SWOT ANALYSIS
4.1 DATA ANALYSIS
Gender
Table No 1: Table showing distribution of Gender
Options No. of Respondents % of Respondents
Male 28 56%
Female 22 44%
Total 50 100%
Graph No 1: Graph showing distribution of Gender
Inference:
The above graph indicates that the respondents are mostly Men.
Percentage
Male
Female

Q1. What influenced you to shop in Pantaloons ?
Table No 2: Table showing distribution of respondent’s opinion about the factor
responsible to shop in Pantaloons.
Options No. of Respondents % of Respondents
Product quality 17 34%
Store appearance &
atmosphere
16 32%
Promotions and offers 15 30%
Price & Terms of Payment 2 4%
Total 50 100%
Graph No 2: Graph showing distribution of Respondent’s opinion about the factor
responsible to shop in Pantaloons.
Inference:
The above graph indicates that 34% of the Respondents considers Product quality as
the factor responsible to shop in Pantaloons.
0
2
4
6
8
10
12
14
16
18
Product
quality
Store
appearance &
atmosphere
Promotions &
offers
Price & Terms
of Payment
17
16
15
2
34% 32% 30% 4%
No. of Respondents
% of Respondents

Q2. How frequently do you shop at Pantaloons ?
Table No 3: Table showing distribution of Respondent’s opinion on how much they
shop at Pantaloons.
Options No of Respondents % of Respondents
Every Week 3 6%
Once in Two Week 6 12%
Once in Three Week 6 12%
Once in a Month 35 70%
Total 50 100%
Graph No 3: Graph showing distribution of Respondent’s opinion on how much they
shop at Pantaloons.
Inference:
The above graph indicates that most of the Respondents shops at Pantaloons once in a
month.
0
5
10
15
20
25
30
35
Every Week Once in Two
Week
Once in Three
Week
Once in a
Month
3
6 6
35
6% 12% 12% 70%
No of Respondents
% of Respondents

Q3. Which company you think is Competitor of Pantaloons ?
Table No 4 : Table showing distribution of Respondent’s opinion that which other stores
do they consider while buying merchandise.
Central 20 40%
Max 6 12%
Reliance Trends 21 42%
Big Bazaar 3 6%
Total 50 100%
Graph No 4 : Graph showing distribution of Respondent’s opinion that which other
stores do they consider while buying merchandise.
Inference :
The above graph indicates that apart from this store most of the customers prefer to go
to Central and Reliance Trends.
0
5
10
15
20
25
Central Max Reliance
Trends
Big Bazaar
20
6
21
3
40% 12% 42% 6%
No of Respondents
% of Respondents

Q4. Brands and Products availability in Pantaloons is ?
Table No 5 : Table showing distribution of Respondent’s opinion about availability of
brands and quality of products in Pantaloons.
Excellent 4 8%
Good 43 86%
Average 2 4%
Bad 1 2%
Total 50 100%
Graph No 5 : Graph showing distribution of Respondent’s opinion about availability of
brands and quality of products in Pantaloons.
Inference :
Graph indicates that the brands and quality of the products is Good in Pantaloons.
0
5
10
15
20
25
30
35
40
45
Excellent Good Average Bad
4
43
2 18% 86% 4% 2%
No of Respondents
% of Respondents

Q5. Through which Promotional Source you come to know about Pantaloons ?
Table No 6 : Table showing distribution of Respondent’s opinion about the offers at
Pantaloons.
Newspaper 11 22%
E-Mail 1 2%
SMS 3 6%
Other 35 70%
Total 50 100%
Graph No 6 : Table showing distribution of Respondent’s opinion about the offers at
Pantaloons.
Inference :
The above graph indicates that there is a lot of scope in communicating the offers at
Pantaloons through SMS and E-Mailers with the increase in technology.
0
5
10
15
20
25
30
35
Newspaper E-Mail SMS Other
11
1
3
35
22% 2% 6% 70%
No of Respondents
% of Respondents

Q6. Do the Staff provide right information regarding the merchandise ?
Table No 7 : Table showing distribution of Respondent’s opinion about the staff
response regarding the merchandise in the store.
Strongly Agree 21 42%
Agree 28 56%
Disagree 1 2%
Strongly Disagree 0 0%
Total 50 100%
Graph No 7 : Graph showing distribution of Respondent’s opinion about the staff
response regarding the merchandise in the store.
Inference :
Graph indicates that the sales representatives of the respective brands are well aware
of the merchandise.
0
5
10
15
20
25
30
Strongly Agree Agree Disagree Strongly
Disagree
21
28
1
042% 56% 2% 0%
No of Respondents
% of Respondents

Q7. How is the Customer Care response when you approach them ?
Table No 8 : Table showing distribution of Respondent’s opinion about the customer
care response in Pantaloons.
Good 38 76%
Best 6 12%
Average 4 8%
None 2 4%
Total 50 100%
Graph No 8 : Graph showing distribution of Respondent’s opinion about the customer
care response in Pantaloons.
Inference :
Graph indicates that maximum of the respondents are satisfied with the responses of
customer care division at the Pantaloons whenever there is an issue.
0
5
10
15
20
25
30
35
40
Good Best Average None
38
6
4
2
76% 12% 8% 4%
No of Respondents
% of Respondents

Q8. Do the store have a wide range of products ?
Table No 9 : Table showing distribution of Respondent’s opinion about the range of
products in the store.
Strongly Agree 3 6%
Agree 36 72%
Neutral 10 20%
Disagree 1 2%
Total 50 100%
Graph No 9 : Graph showing distribution of Respondent’s opinion about the range of
products in the store.
Inference :
The graph indicates that the store have a wide range of products.
0
5
10
15
20
25
30
35
40
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
3
36
10
1 06% 72% 20% 2% 0%
No of Respondents
% of Respondents

Q9. Is the Store located at a Right and Convenient Place ?
Table No 10 : Table showing distribution of Respondent’s opinion about the
convenience of location.
Strongly Agree 10 20%
Agree 29 58%
Neutral 9 18%
Disagree 1 2%
Total 50 100%
Graph No 10 : Graph showing distribution of Respondent’s opinion about the
convenience of location.
Inference :
The above graph indicates that maximum of the respondents thinks that the store is
conveniently located.
0
5
10
15
20
25
30
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
10
29
9
1 1
20% 58% 18% 2% 2%
No of Respondents
% of Respondents

Q10. Will you purchase again at Pantaloons ?
Table No 11 : Table showing distribution of Respondent’s opinion about repurchase in
Pantaloons.
Definitely will 46 92%
Probably not 0 0%
Not sure 4 8%
Total 50 100%
Graph No 11 : Graph showing distribution of Respondent’s opinion about repurchase in
Pantaloons.
Inference :
Graph shows that the respondents are brand loyal towards the Pantaloons store and
are willing to purchase again at Pantaloons.
0
5
10
15
20
25
30
35
40
45
50
Definitely will Probably not Not sure
46
0
4
92% 0% 8%
No of Respondents
% of Respondents

4.2 SWOT ANALYSIS
Strengths –
1. Pantaloons is one of India’s largest retailer having 100+ stores across 40+ cities in
India
2. Pantaloons is one of the largest retailer by market capitalization and revenue in India
3. It manages high number of purchase orders
4. It is always updated with changing consumer preferences
5. Pantaloons is a popular brand with a high presence across India
6. Strong online presence of the brand helps to tap the internet market
7. Pantaloons offers a wide variety of clothes for men, women and children
8. Advertising, branding and discounts have enabled the brand to capture the youth
Weaknesses –
1.Intense competition from retail stores and online shopping brands means limited
market share growth for Pantaloons
2.Too many options for customers hence high brand switching and low brand loyalty
Opportunities –
1.Pantaloons can increase the footfalls by increasing ATL – TV commercial promotions
2.India is fast emerging as retail hub for top brands as government allowed FDI in single
brand and multi brand retail
3.Organized retail is only small percentage of total Indian retail industry
4. Tie-ups with fashion institutes and even online brands can help increase sales
for Pantaloons
Threats –
1. Strong competition from unorganized retail sector in India affects business
of Pantaloons
2. Government policies are not well defined in emerging markets
3. Online shopping is emerging trend in consumers due to convenience which is taking
away market share of retailers like Pantaloons

CHAPTER – 5.

CHAPTER 5 : FINDINGS
5.1 Findings:
A. From the Questionnaires :
1. From the location of the shoppers it is clear that many people are brand loyal to
pantaloons and come over from almost all parts of Patna to shop at Pantaloons.
2. Visual Merchandising of the store is good and all the staffs are well aware of the
products (Apparel and Non-Apparel) and are good in communicating about the
merchandise to the shoppers.
3. The store is well decorated and the ambiance of the store is nice and it offers the
shoppers a wide range of products so that they can shop well.
4. There is no proper communication of the offers available at Pantaloons through
electronic media like e-mail and SMS. Most of the respondents come to know about
offers at Pantaloons through Newspapers and other means (Friends, Relatives. etc….).
5. The satisfaction level and experience of the customers with respect to their shopping
is good and they want purchase again which shows Pantaloons is good in customer
retention.

B. From the interaction with Customers :
1. Most of the customers who comes from far places feel that the transportation is a
major problem and at Exhibition Road there is no route for public transport available and
due to which most persons (Specially Female) finds it difficult to come at Pantaloons for
shopping.
2. Some of the customers are not informed about the offers that are happening in
Pantaloons Store and there has been a miscommunication by same staff.
3. Most of the customers felt that the employees of the store are very friendly all the
time to help in selections of merchandises.
4. Most of the customers felt that the VM at Pantaloons is very good and they have a
updated collection all the time.
5. Some customers felt that the Merchandise are placed closely and which gave a
clumsy look which makes decision sometimes difficult.

CHAPTER – 6.

CHAPTER 6 : SUGGESTIONS & CONCLUSION
6.1 Suggestions :
1. E-mail and SMS can be used as an effective channel of communicating the offers to
the customers.
2. Proper communication is to be provided to the customers through sales people so
that there will be no confusion in understanding the offers.
3. Aditya Birla has a tie-up with payback which is a loyalty program so the
advertisements and promotions should be communicated through mails and SMS to the
respective customers.
4. Better offers can be provided to loyal customers based on the frequency of
purchases and the type of purchases they make.
5. A play area for kids can be made so that it can attract more customers.

6.2 Conclusion :
The study helped me in understanding the retail sector and the format of organized
retail sector. It also helped in understanding the customer behavior while purchasing the
merchandise in the store and also about the factors that they consider while making the
purchases.
Based on the study and customer’s responses, we can be able to fill the gap between
the customers and their purchases.
The study helped in understanding the customer behavior and to identify their
considerations during the purchases. This study helps in finding the customers
responses and to make the services offered by pantaloons more efficient.
The study helped in finding about the store atmosphere, location, the merchandise
offered at pantaloons, knowledge of the sales force, customer care response and the
offers provided by pantaloons.

ANNEXURE
QUESTIONNAIRE
NAME:
GENDER: Male Female
AGE GROUP: 10-20 20-30 30-40 40-above
OCCUPATION: Service Business Others
1) What influenced you to shop in Pantaloons ?
A) Productquality B) Storeappearance and atmosphere
C) Promotions and offers D) Price & Terms of Payment
2) How frequently do you shop at Pantaloons ?
A) Every Week B) Oncein Two Week
C) Oncein Three Week D) Once in a Month
3) Which company you think is Competitor of Pantaloons ?
A) Central B) Max
C) Reliance Trends D) Big Bazaar
4) Brands and Products availability in Pantaloons is ?
A) Excellent B) Good
C) Average D) Bad
5) Through which Promotional Source you come to know about Pantaloons ?
A) Newspaper B) E-Mail
C) SMS D) Other
(Please Turn Over)……………….

6) Do the Staff provide right Information regarding the Merchandise ?
A) Strongly Agree B) Agree
C) Disagree D) Strongly Disagree
7) How is the Customer Care response when you approach them ?
A) Good B) Best
C) Average D) None
8) Do the Store have a wide range of Products ?
C) Neutral D) Disagree
E) Strongly Disagree
9) Is the Store located at a Right and Convenient Place ?
C) Neutral C) Disagree
E) Strongly Disagree
10) Will you Purchase again at Pantaloons ?
A) Definitely will B) Probably not
C) Not sure

BIBLIOGRAPHY
http://www.pantaloons.com
http://www.adityabirla.com
http://www.google.co.in
http://www.abfrl.com
http://www.slideshare.net
https://en.wikipedia.org/wiki/Consumer_behaviour

Consumers Buying Behaviour at Pantaloons Patna 2017 (Part II)

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