SPATIAL ANALYSIS TO IDENTIFY SUITABLE OFFLINE RETAIL PARTNER
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This document summarizes a graduation research project analyzing potential store locations for an Indian handicraft company to expand into Mumbai. Demographic analysis of survey respondents found high concentrations in northern Mumbai suburbs. Spatial analysis using GIS mapping and Huff's model identified specific stores in high-income areas with the best potential based on travel times and surrounding competitors. The top recommended stores were Dvar, Vyoum and Dhoop based on their customer base aligning with the brand and favorable probabilities from Huff's model.
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SPATIAL ANALYSIS TO IDENTIFY SUITABLE OFFLINE RETAIL PARTNER
- 1. National Institute of Fashion Technology Masters in Fashion Management 2013 – 2015 GRADUATION RESEARCH PROJECT PROJECT UNDERTAKEN FOR PARTIAL FULFILLMENT OF GRADUATION RESEARCH PROJECT AT INCRAFT FASHION VENTURES LTD. PRESENTED BY: AVANI CHHAJLANI HYD13MM11
- 2. Contents • About the Company • Objective & Methodology • Data Analysis • Demographic Analysis • Spatial Analysis • Findings & Suggestions • Conclusion • References
- 4. InCraft Fashion Ventures • Private Company incorporated on 18 October 2013 , at Pune • Engaged in distribution of art and craft works Ekam Indian Artizans Style Katha
- 5. • Hand crafted products • Dedicated artisans • Two pronged strategy Indian Artizans Maheshwaris Chanderi Gujarat Bandhani Paithani East silks South silks Chikankari
- 6. Indian Artizans Ludhiana Pune Kolhapur Nagpur Guwahati Raipur Ranchi Maheshwar Chanderi Kanchipuram Hyderabad Uppada Rajkot Patan Bhuj Sambalpur Lucknow Benaras Srinagar Jaipu r Kota Kolkata Places of Show Places of Creation
- 8. Objective and Methodology Type of Research: Descriptive Ethnographic Research (Case and Field Research Design) Data Collection: Questionnaire & Observation Sampling: Convenience + Snowball sampling & sample size 408 Data Analysis: Excel functions and tabulations. For spatial analysis ESRI software ArcMaps as well as eSpatial To find the most feasible stores to tie up for stocking handcrafted ethnic apparel in the Mumbai City
- 10. Demographic Analysis Goregaon - Borivali 11% Andheri - Santacruz 24% Khar & Bandra 18% Dadar - Worli 13% Nepean Sea - Walkeshwar 22% Others 12% AREA - WISE DISTRIBUTION 10,000 - 25,000 18% 25,000 - 40,000 13% 40,000 - 55,000 14% 55,000 - 70,000 15% 70,000+ 38% Prefer not to answer 2% INCOME BRACKET OF THE RESPONDENTS
- 11. Spatial Analysis Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity
- 13. Spatial Analysis Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity
- 14. Spatial Analysis Stores in Andheri - Santacruz • Dvar • Paaneri • Vyoum Stores in Bandra – Khar • Atosa • Fuel: The store • Dhoop • Ogaan Stores in South Mumbai • Benzer • Shray
- 15. Spatial Analysis Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity Map customer presence Filter customer concentrations Scout for stores in areas of concentration Apply Huff’s Model on stores in vicinity
- 16. Huff’s Model - Dvar Dvar India Dvar - 10th Road - Juhu, Mumbai (Opp HSBC Bank-HILLCREST Building), Mumbai, Maharashtra, India 400049 Store Area: 4000 sft Time to travel : 15 minutes Stores in vicinity: Vyoum and Paaneri Huff’s Probability: 0.312 10 minutes 15 minutes 10 minutes 15 minutes
- 17. Huff’s Model - Vyoum Vyoum Vyoum - A Wing, 2nd Floor, Ganga Niwas, V L Mehta Road, Vile Parle West, Mumbai – 400056 Store Area: 2200 sft Time to travel : 20 minutes Stores in vicinity: Dvar and Paaneri Huff’s Probability: 0.213 15 minutes 18 minutes
- 18. Huff’s Model - Dhoop Dhoop Shop no 2, Mangal Kunj Bldg, B Wing, Junction of 32 and 36 Road, National College Lane, Off Linking Road, Bandra West, Mumbai, Maharashtra, India 400050 Store Area: 2000 sft Time to travel : 21 minutes Stores in vicinity: Fuel, Ogaan and Atosa Huff’s Probability: 0.131 10 minutes 18 minutes 15 minutes
- 20. Findings Indian Artizans is a brand that caters to a niche market and expansion into the city will work only through stores that work with the same target audience as the brand There are pockets within the city that are frequent buyers of the category of merchandise that Indian Artizans caters to, the model would work if the brand is successful in tapping and tying up with stores that are located in those pockets The travel time factor plays an important role in the attractiveness of the store since most of the stores are not very well known and higher travel times play as deterrent to shoppers traveling to a location
- 21. Suggestions • Store tie – ups • Dvar India • Multiple designers showcasing their first collections • Good traction for the brand and thus improve the visibility and credibility • Vyoum • Has exclusive collections from designers who excel in bridal wear • Also the major audience flocks for wedding season shopping • Dhoop • Store at this point does not house apparel but has accessories • Get good traction starting out with apparel with a clientele of Dhoop which is in line with the brands target audience
- 22. Cost Benefit Analysis Cost Benefit Analysis: Dvar - The multi designer store Details Month 1 Month 2 Month 3 Month 4 Month 5 Rent 45000 45000 45000 45000 45000 Inventory Costs 540000 720000 630000 630000 720000 Other Costs 60000 60000 60000 60000 60000 Total Cost 645000 825000 735000 735000 825000 Benefit 1275000 1700000 1500000 1500000 1700000 TRUE TRUE TRUE TRUE TRUE Benefit:Cost 1.98 2.06 2.04 2.04 2.06 Rent: Rs.300/sft Store space: 150 sft Average production cost: Rs.9,000/piece No. of pieces being supplied: 60 pieces/month Miscellaneous costs: Rs. 60,000 Total Cost: Rs. 6,45,000/month Average selling price: Rs. 25,000 Sell through percentage: 85
- 24. Conclusion Future Scope Of Further Research • Studying the influence on consumer behaviour with geo coded data • A Factor Analytic Study of Consumers' Location Specific Values • The effect of accessibility on retail rents
- 25. References BOOKS • Berman Evans, J. R. (2012). Retail Management: A Strategic Approach (12th ed.) Prentice Hall. Retrieved May 5, 2015 JOURNAL REFERENCE • Bravo, R, Iversen, N, & Pina, J 2011, 'Expansion strategies for online brands going offline', Marketing Intelligence & Planning, 2, General OneFile, EBSCOhost, viewed 18 May 2015. • Larsson, J, & Öner, Ö 2014, 'Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets', Annals Of Regional Science, 52, 2, pp. 385-408, Business Source Complete, EBSCOhost, viewed 18 May 2015. • Pope, J. A., Lane, W. R., & Stein, J. (2012). A Multiple-Attribute Decision Model forRetail Store Location. Southern Business Review, 37(2), 15-25.
- 26. References • Chow Hou, W., & Pearce, M. R. (1985). PATRONAGE BEHAVIOUR TOWARD SHOPPING AREAS: A PROPOSED MODEL BASED ON HUFF'S MODEL OF RETAIL GRAVITATION. Advances In Consumer Research, 12(1), 592-597. • YE, H., REX YUXING, D., & SINA, D. (2014). Decomposing the Impact of Advertising: Augmenting Sales with Online Search Data. Journal Of Marketing Research (JMR), 51(3), 300-319. doi:10.1509/jmr.12.0215 • DINNER, I. M., VAN HEERDE, H. J., & NESLIN, S. A. (2014). Driving Online and Offline Sales: The Cross-Channel Effects of Traditional, Online Display, and Paid Search Advertising. Journal Of Marketing Research (JMR), 51(5), 527-545. doi:10.1509/jmr.11.0466 • A. CAGRI TOLGA, F. T. (2013). A FUZZY MULTI-CRITERIA DECISION ANALYSIS. International Journal of Information Technology & Decision Making, 12(4), 729 - 755. Retrieved from http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=3e02d475-44df-4fd4- 82abd32caa9eb7f0%40sessionmgr114&vid=0&hid=104t
- 27. References WEB • Cooan, H. (n.d.). What Makes a Good Retargeting Ad? Retrieved February 25, 2015, from www.advancedwebranking.com: http://www.advancedwebranking.com/blog/what-makes-a- good-retargetingad/ • Dramowicz, E. (n.d.). Retail Trade Area Analysis Using the Huff Model. Retrieved January 28, 2015, from http://www.directionsmag.com/: http://www.directionsmag.com/entry/retail-trade- area-analysis-using-the-huffmodel/123411 • Ford, J. (2011, April 5). Retargeting: What It Is & How to Use It. Retrieved March 26, 2015, from moz.com: https://moz.com/blog/retargeting-basics-what-it-is-howto-use-it • The Trade Area Analysis Model. (n.d.). Retrieved April 5, 2015, from lazarus.elte.hu: http://lazarus.elte.hu/hun/digkonyv/havas/mellekl/vm25/vmb01.pdf SOFTWARE • ArcMap, E. (2013). ESRI 2013. ArcGIS Desktop. Redlands, CA. • eSpatial - Mapping Software. (2014). #265715.