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This is a Brand Management project made in the Year 2006 in association with Gini and Jony. There was a three Tire Brand startegy which was applied post extensive primary research work. It may be of use as a sample guidelines and anything that you may require it for in your college.
This is a Brand Management project made in the Year 2006 in association with Gini and Jony. There was a three Tire Brand startegy which was applied post extensive primary research work. It may be of use as a sample guidelines and anything that you may require it for in your college.
Submitted by - Somesh Makhani, Satya Pakash & Vaibhav Singh Student of Vikas Sharma - Visiting Lectuer on Retail Verticals at Accman Institute of Management
Every Parents want to make sure that clothes of their children not only look their best but comfortable as well. Nowadays children clothing are exposed to a world where fashion play very big role.. Read More: ComparisonDeals.com
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Online shopping is a form of electronic commerce
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2. What Is The Scenario Of The Kids’ Apparel And Footwear
Market In India?
Apparel and footwear products are one of the basic amenities and utility items in the list
of parents for their kids. The apparel and footwear industry for kids in India has
witnessed a healthy growth at a CAGR of ~% during FY’2010-FY’2015. Growing
demand of kids’ apparel and footwear products, rising disposable income of parents,
increasing brand awareness, growth in international brands and adoption of branded
products by fashion savvy younger generations have all resulted in the incline of this
market. Moreover, educational institutes prescribe a specific set of uniforms and
shoes for summer/winter, regular and co curricular activities. This has also resulted in
stupendous growth of the overall industry. The overall market grew from INR ~ billion
in FY’2010 to INR ~ billion in FY’2015.
3. What Is The Potential Of Kids’ Footwear Market In India ?
• Footwear production in India has been majorly propagated through
manual and semi-mechanized processes. India domestically produces
leather and other raw materials at abundance. The footwear industry in
India is comprised of numerous small and medium scale enterprises which
have utilized leather as the prime raw material for footwear in over ~
leather based manufacturing units spread across the country. The kids’
footwear industry has been considered as one of the most steadily
growing segments in the country. The industry has expanded at a CAGR of
~% during FY’2010-FY’2015 and registered revenues of INR ~ billion in
FY’2015.
4. • Kids’ footwear industry has been largely an unorganized one, with
organized brands comprising ~% of the overall market as of FY’2015.
Products manufactured by local players are much in demand due to their
lower costs. Higher bargaining and lower prices for the customers have
provided a boost to the dominance of the unorganized sector. Higher
availability of raw material in the country has allowed the unorganized
sector to flourish by offering products at affordable prices. Bata Liberty,
Lancer, Relaxo, Nike, Reebok and others have been the prominent players
in the organized branded wear market amongst others. However, most of
these brands are characterized by poor penetration in rural areas and have
their presence only in the urban, tier I and tier II cities
5. What Are The Key Trends In India Kids’ Apparel Market ?
• The kids’ apparel industry in India has been considered as one of
the fastest growing market in the apparel segment. During the
period of FY’2010-FY’2015, the industry grew steadily at a CAGR of
~%. The market observed a number of key events which nurtured
the growth of the industry in the country.
• India domestically produces cotton, silk, jute and other raw
materials at abundance. The country ranks first in cotton and jute
production in the world, second in silk production, fifth in man-
made fibers and eighth in the total production of wool in the world.
India has highest number of looms: ~ million handlooms (at around
~% of the global capacity) and ~ million shuttle looms (at ~% of the
global capacity). It has the second highest number of spindles in the
world with ~ million spindles (at ~% of the global capacity). Sales for
kids’ apparel products increased from INR ~ billion in FY’2010 to INR
~ billion in FY’2015.
6. • In FY’2015, sales of boys’ apparel products accounted for a major portion of
the kids’ apparel sales, such that it had contributed for about ~% of the
total kids’ apparel sales. The high sales of boys’ apparel products as
compared to girls’ apparel are due to higher population of boys in the
country which led to more demand for boys centric products.
• Casual wear apparel products witnessed maximum demand by consumers
and comprised ~% market share of the overall kids’ apparel industry in
terms of revenues.
• Pure cotton is a very light fabric and quite difficult to do embroidery work in
it so as to make it more appealing to the kids. Hence, blended form of
cotton is used for the same as it is easier to care and less likely to shrink or
wrinkle as compared to a garment made from pure cotton. In FY’2015,
blended cotton was the most preferred fabric used for kids’ apparel with a
share of around ~% in terms of revenue followed by wool, denim, polyester,
nylon and others.
7. • Kids’ apparel market in India has been driven by the demand of
non-recognized brands which manufacture garment products in
local settings. Despite growing at a very healthy rate of ~% per
annum during FY’2010-FY’2015, the organized players accounted
for only ~% of the overall kids’ apparel market in FY’2015.
• Demand from urban cities accounted for about ~% of the kids’
apparel sales as compared to ~% from the rural areas in FY’2015.
Delhi NCR, Mumbai, Chennai, Kolkata, Bangalore together
contributed to about ~%of the total sales in FY’2015. Inhabitants of
metro cities are believed to be much more aware about the latest
fashion trends and brands and have higher personal disposable
incomes. Mumbai and Delhi, owing to the huge number of people
residing in these cities, were the top revenues generators. The
former was responsible for ~% while the latter was responsible for
~% of the total sales.
8. What Are The Growth Prospects Of The Online Kids’ Apparel And Footwear
Market In India?
• India has witnessed a steep rise in internet users since 2010 with a rapid
adoption amongst young population. It was estimated that around ~% of
the Indian population had known to access the internet by the end of
2015, a figure which inclined from approximately ~% in 2010. Although
some e-commerce giants such as Flipkart, Amazon and Snapdeal have
gained significant market traction in the past few years, specialty kidswear
e-commerce companies have struggled to get going. Stiff competition in a
niche market has resulted in perishing of some online portals while some
has been acquired by rival companies; for instance, BabyOye acquired
Hopoos. FirstCry, BabyOye and Hopscotch have emerged as the market
leaders in single category kidswear segment.
9. Owing to the rise of internet facilities, a large number of entrepreneurs
in the country will be encouraged to establish their ventures in the
e-commerce sector. The competition in this sector is likely to
intensify with the increase in number of online retail portals.
Moreover, international player such as Flipkart and Amazon will
increase investments to boost their presence in the local market
which will also get high competition from specialized kids’ e-tailers
such as FirstCry, Hopscotch, BabyOye and others. Amplified
marketing and social media campaigns will allow these
organizations to penetrate at a faster rate in the local Indian
market. Moreover, with a large population of children and young
aged parents and increasing media advertisement of online
shopping, rising internet penetration the industry is expected to
grow at a healthy growth rate. The high surge in internet users in
the country is likely to drive the industry which is estimated to grow
rapidly at a very healthy CAGR of ~% during FY’2016-FY’2020 and
register sales of INR ~ billion by FY’2020
10. Key Factors Considered In The Report
• Comprehensive analysis of the apparel and footwear market and its
segments
• Industry is presented by apparel and footwear; by end users and by
manufacturers
• Listed major players and their positioning in the market
• Identified major industry developments in last few years and assess the
future growth of the industry
• Regulatory framework help to understand investment opportunities and
complexity involved
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