INTRODUCTION

In today’s intensely competitive environment, companies today are constantly looking for

ways to satisfy customers by having a better understanding of changing customer

preferences. The over changing market characteristics have huge impact on corporate

decisions. The global environment also poses several complexities to the sellers in

understanding the market. Within the current marketing environment, competition

between products and services is becoming increasingly tough.

This report discuss about the branded garments against local garment traders including

producers of tailor made garments and comparing their demand in Goa. The main base of

our study is to know the competition faced by the local garment stores when branded

garments are preferred by most of the consumers, while, the branded stores facing the

same competition against the local traders.

A customer thinks very differently, uniquely that is called consumer behaviour. A

customer wants to get the full value for their money whatever he buys he wants full

satisfaction from that product. Our study also includes the consumers taste and demand

for type of garments. Their preference towards branded garments depends on the income

of the people, age – gender, regional (city/town) demand for local or branded garments,

effect on location of the market, seasonal variations.

Objectives:

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1. To study the competition faced by the branded garment against the local garments.

2. Consumer Perception for the above and their preferences.

Limitations:

1. Some store information is confidential like sales, future profit etc.

2. The survey does not include brand’s factory outlets

3. Sample size is limited.

4. Seasonal variation may lead to fluctuation in the statistical figures.

5. The survey was conducted for stores in the vicinity of Margao and Panjim.

Methodology

The study involves Primary survey through directly interviewing the branded

stores, local stores, and the consumers:

1. The owners of the Branded stores was interviewed to find their turnover,

problems faced, importance of location, and seasonal changes in the sales,

classifying their customers.

2. Similarly local garment stores were also interviewed to find about their

customers, sales etc.

3. The customers of both; i.e. the Branded as well as local stores were

interviewed in different forms: Questionnaires: circulation of questionnaires

either physical or digital (E-mail), Interviews and observations.

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- It involves use of secondary sources such as web and other research articles

Printed by various financial institutions and other journals and magazines.

Statistics Tools

Tabulation

The collected data is arranged in the form of rows and columns that is in the tabulation

form. The purpose is to simplify the presentation and to make comparisons.

Percentage analysis

The collected data which is present in the form of percentage will help us to get the clear

cut picture of the contribution of various responses.

BRANDS AND BRANDED GARMENTS IN

INDIA
Foreign companies looking to tap the potential of the Indian market need to understand

that India is not one market, but many markets fragmented by income and growth rates,

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language, culture and geography. There are 27 States, 7 Union Territories 587 Districts.

More than 70% of the people live in more than 550,000 villages. Languages are split into

18 major officially spoken, within which there are more than 482 different dialects and

sub dialects.

The design and colour sensibility and art form differ not only from State to State but in

many cases may be from district to district. More than 100 textile art forms are practiced

in different parts of the Indian States.

Branding was introduced to differentiate homogenous products such as clothing. Clothing

items (products) can now be bought according to the psychological elements that they

represent and not only for their physical characteristics and need-satisfying properties.

After liberlisation of Indian economy, there emerged more than 100 leading brands that

jostled for consumer mind space. Van Heusen, Louis Philippe, San Frisco, Peter England,

Allen Solly and Byford (of Madura Garments, a division of Indian Rayon); Arrow, Lee,

Raymond, with its offerings of Park Avenue, Indigo Nation, Wills Lifestyle, promoted

by ITC; Zodiac; Provogue, Adidas, Tommy Hilfiger, Lacoste, Benetton, Reebok, Nike,

Esprit, Levis etc.

India is also a manufacturer and exporter of international brands for clothes like Gap,

Tommy Hilfiger, Espirit, Wills Lifestyle, Peter England, Allen Solly etc, after china and

Bangladesh. These developing countries export manufactured clothes with the brand tags

to the developed countries like Middle East, US, and Europe. As these countries, utilize

their labour for the manufacturing of international brands.

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However, attitudes are evolving as advertising and improving living standards foster

greater brand awareness and loyalty. There is no shortage of opportunities for companies

that take the time to understand this complex marketplace of India.

FACTORS EFFECTING BRANDED GARMENT MARKETS

• PRICE- The price has been defines as an important factor which influences the

brand image. The price determines the product quality and preference by its

consumer. The consumer generally confirms their standard price with the standard

quality of a product and determines whether it’s too low or too high prior to

product purchase, consumers evaluates a particular price comparison with a price

range based on their experience of the market.

• Quality- Brand names can be Sign of Quality, either as a result of personal

experience with the brand or from judgment driven by advertisements. Most of

the brands are focused on their quality to increase margins. Customers always

believe in good quality products. The brand prefers to maintain their quality

which demands the price for its product. A good quality branded garment, thus,

effect the price range and the brand loyalty.

• Trends & Fashion- Branded garments consistently changes the trends and

fashions. Branded garment manufacturers are innovative and dynamic for every

season in terms of fashion. They create their own fashion for clothing and

accessories. Consumers consider fashion as part of an overall budgetary spend, so

apparel purchases now compete directly with other choices from the technology,

entertainment, beauty and general lifestyle categories for the discretionary rupee.

The urban fashion defines attitude, reflects life style and individuality. Thus,

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 influenced by brand endorsements by celebrities which creates a mindset of

fashion on the young generation.

• Status Symbol- Branded apparels demand a high price for its quality offered.

Thus, creating a symbol of status, as observed, most of the branded clothes is

worn by the people falling in the category of high income, brand conscious etc...

The major cities like Mumbai, Pune, Delhi, Kolkata which have increasing market

demand for branded garments.

GOAN SCENARIO TOWARDS BRANDED

GARMENTS AND LOCAL GARMENTS

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Over the years, the Indian and the International garment brands are growing in the last

fifteen years. A few branded garments stores were present in Goa like the well old

Raymond’s. The major garment/ clothing market was in the hands of the tailor stitched

clothes which were in fashion and a few local garments retails selling multi-branded and

unbranded garments. Most of the branded garments franchise was located in Panjim for

last 10 years and now increasing at a slow pace in Margao, Mapusa & Vasco.

The major branded stores hubs are located in Margao and Panjim as these market places

are centrally located in the north and south of Goa. Panjim being the capital and a tourist

hub, the brand stores are recently establishing as the people’s preference for brand is

increasing due o brand awareness among the youth. With increase in the standard of

living and change in preference, attitude, and life style of the consumers, Goa has become

the next business destination for brand garments industry. People of this state are

followers of new fashion and trends irrespective of Age, class, etc.

TYPES OF BRANDES AVAILABLE IN GOA

A few brands which are presently available in Goa mostly having their outlets at Margao,

Panjim , Vasco and Mapusa are- Raymond’s, Zodiac, Allen Solly, Peter England ,

Weekenders, Fab India, K-Lounge, Pepe Jeans, Levis , John Players, Live-in stores,

Spykar, Switchers, Adidas, Wranglers, Lilliputs, Ruff etc. The above brand consists of

men’s wear, women’s wear, kids wear, sports, and casuals to office wears.

Thus, Brands build customer loyalty by delivering excellent value no matter the price

point-high, low, or medium. Value includes Styling, Durability, Quality fabrics, and

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consistent fit. To the consumer, a brand name represents familiarity, consistency, and

confidence in performance. Brand names when linked with lifestyle, self-expression, and

aspirations symbolize intangibles that are desirable to the consumer.

BRANDED GARMENTS IN GOA

The attitudinal shift of the Goan consumer in terms of "Choice Preference", "Value for

Money" and the emergence of organised retail formats have transformed the face of

Retailing branded garments in India. In the last few years, Goans have gone through a

dramatic transformation in lifestyle by moving from traditional spending on food,

groceries to lifestyle categories that deliver better quality and taste towards branded

clothing. The Goan brand garment retails growth can be attributed to the several factors

including

BRAND AWARENESS- the people of Goa are much aware of the brands available in the

Indian Markets. The young generation has knowledge of brands due to their marketing

tactics towards the youth and brand loyalty. The brand awareness is created or promoted

by the branded garment manufactures rather than the franchise outlets.

More than 40% of the population in Goa is employed in other foreign countries, where,

such brands are easily available. Thus creates, demand for branded garments in the Goan

markets. Also, the urban population demands for the branded garments due to change in

lifestyle of the people.

ADVERTISEMENTS AND PROMOTIONS- The brands are advertised by different

Medias. The most effecting is the Television in Goa that reaches to every corner of the

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state. Consumers having widespread knowledge of internet, where such brands are been

promoted through social networking, blogs, promos etc...

Advertisement plays a vital role for creating demand to particular brands. As per the

survey, brand awareness being high in urban population. Thus, most of the branded

retails or franchise has tote bags which move onto many hands. This marketing strategy

is opting by most of the local as well as branded garment stores.

INCOME OF THE PEOPLE- Goa has the highest per capita income compared to other

states in India. The people of Goa have high income among the other states in India,

through foreign remittances, business, tourism, and services. A monthly income of

above Ten Thousand Rupees prefers branded garments than local clothing as a Symbol of

Status. Also, the Goan people are fashion conscious and have a higher spending capacity

for quality products, which in turn demands for branded outlets at urban locations.

CREATING BUSINESS OPPORTUNITIES- the branding franchise or retails create

business opportunity in the urban areas. In Goa, the capital city has many brand outlets

for past many years. Though, such a brand did not have much recognition and choice at

the early period, due to lack of brand awareness. In the year 2000, people demanded

quality garments as there were Chinese garments imported to India. Thus, creating brand

outlets in the urban locations. According to the demand at Panjim city, some of the

franchises moved towards Margao forecasting the demand for branded garments and

saving traveling expenses to the capital city for shopping in branded outlets.

LOCAL GARMENT MARKET IN GOA

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The local garments are classified into tailor made and readymade unbranded clothes.

Most of the people are attached to local garments as branded garments are recently

emerging into the Goan markets.

The local garment stores are located in cities, towns, villages and every corner of the

market. All the Consumers categories attract to such type of stores, as these stores have

the basic idea of the consumer preference, variety and choice for clothing. Most of the

middle class and the lower class population purchase from such stores due to

affordability and choice. The quality may vary from the branded garments also there are

imitations of branded patterns. The local garments also consist of China manufactured

and imported garments which are preferred by the Goan consumers for clothing.

As Goa being a tourist sport, most of the International tourist prefer Indian fabric like

cotton and silk form the local markets, beach side local garment stores as International

brands are available in their home country. Thus, the local market in Panjim depends on

the International tourist as being a tourist spot.

The local garments are mostly brought from different parts of our country as India is a

manufacturer of fabric that enhances small scale industry like Indore, Gujarat, Nashik,

Bangluru, Delhi, Kolkata, Mumbai etc in India and globally from Bangkok, China, Italy

etc.

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 MARKET STRATEGIES

Market strategy is defined as an action plan for influencing customer choices and

obtaining a market share. Market strategy should entice customers to buy the product or

service. Market strategy encompasses customer perception of the relationship between

price and quality.

Is the quality of the product or service worth the price?

Is the price too low for the quality the customer desires?

Is the price higher than the customer's perception of quality?

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Market research identifies the price and quality relationship customers perceive to be

important. Remember, customer perception is the bottom line. Market strategy also

includes the distribution channels for the product, pricing and terms of sale, promotion

and advertising plan, marketing budgets, inventory selection and management, visual

merchandising, customer relations and an evaluation of the marketing strategy.

The marketing plan provides information on what the market will be (retail, wholesale)

and what specific customer groups will be targeted, what will be sold, where it will be

sold, and how wide the area of distribution will be.

Ideally, market segments with a potential for high sales, profits, growth and a minimum

of competition are the most attractive. A marketing strategy is a process that can allow an

organization to concentrate its limited resources on the greatest opportunities to increase

sales and achieve a sustainable competitive advantage. A marketing strategy should be

centre around the key concept that customer satisfaction is the main goal.

MARKET STRATEGY FOR GOA

Local garment stores Branded garment stores

Advertisements Word of mouth Brand awareness,

e-marketing
Local Cable TVs, Satellite channel broadcasters

e.g. Star, Zee, Sony etc.

news channels etc.
Hoardings, billboards, tote bags. Hoardings, billboards, tote

bags.
Local Newspaper National (company),

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 local( franchise) newspaper
NONE Celebrity brand endorsements
Customers International tourist, and all Focuses on elites, and youth

categories of people
Customer relation Personally knowing the taste and CRM Systems, yearly coupons,

preference. discount cards etc.

Seasonal Discounts and offers are Seasonal and yearly discounts

promotions uncertain, stock clearance and promotion offers by

company directly.

The marketing strategy used by both the garment stores differs according to the company

policy; pricing policies etc. the location is the major criteria for advertising their

products. The marketing plans for the branded garments are classified into 2 levels-

1st level- Company’s central marketing strategy.

The manufacturing company at the centre markets and promotes the brand through

celebrity endorsements, advertisements leading Television channels. As this serves, the

micro level as well as the macro level buyers.

2nd level- Promoting brand at the ground /franchise level/bottom level

The local garment store needs to promote their product at the bottom level. The buyers

are heterogeneous as local garments stores serves to all type of customers from high to

low income population.

The discounts and seasonal promotions are uncertain in local garments stores as there is

good bargaining power by the customers. The prices are fixed by the owner of the store

which has no interference from any source company. Thus enjoying direct profit on the

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price fixed. In the branded garments stores, the prices are fixed by the source companies

and the store receives commission from 2% to 10% on the total sales.

The branded garment stores use CRM system to study the purchase behavior of its

customers in detail and grow relation with their customers. This allows the source

manufacturing company to access the customer data and study the demand for their

product in that particular area.

The local garments stores keep a track on its customer preference through personal

approach on their choice and keeping a variety according to the choice of their customers.

The market strategy followed is only through word of mouth and customer preference.

The brand awareness is also created by e-marketing , through internet as most of the

youth and the working class population are accessing the internet and does buy branded

products online if they are not available in the nearby stores, where such facility is not

available by local garment stores.

LOCATION
The Demographics and buying patterns of residents of an area can be used to compare

various possible sites for opening new stores. In Goa, the branded stores are recently

establishing in the market. So, the location matters for creating brand awareness at the

initial stage of the business. Most of the stores are located at the central market area,

markets area dominated by the garment sector, shopping stores, departmental stores etc.

The local stores are scattered at every corner of the market, thus location also advertises

for the product. In Panjim and Margao, the branded garment stores are located in a series

of branded stores in the market area. This creates a healthy competition among the brands

itself.

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Location is a very significant factor for the sales as new customers drop-in while they

move around the market. Window shopping is also an effective way of advertising. So,

while establishing a new store, “Location” is the first and most important factor

considered.

COMPETITION FACED BETWEEN BRANDED

GARMENT STORES AND LOCAL GARMENT
STORE

As the brand awareness and loyalty toward a brand increases, thereby increase in

competition among the brands and the local garment stores. Both the stores are located in

the same market, facing equal competition. The branded garment stores face competition

from the other brands located in the same market than the local garments stores as the

customer category are different for each stores for e.g. In Panjim area, the branded

garments are located in the same locality where most of the brands are available in few

meters of distance, thus creating competition among the brands than the local garment

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store. But both the markets are separate and facing competition from the same category

of garment store.

COMPETITION

According to our study, the local garments stores compete with the branded garments on

the basis price, quality and the promotional offers. As both have their own pricing

method which are affects the demand for the product. E.g. If the branded jeans price

increases with a given superior quality, where as a local jeans of the same quality is

offers at discounted price. So, the customer will substitute for the local jeans for the

branded jeans. Thereby, increasing the competition among a local product and a branded

product.

On the other hand, a branded jeans is offered at the same price and quality but other

brand offers its jeans of the same quality at a lower price on a promotional offers, thus

creating competition among the brands. The customer would prefer to buy jeans of same

quality at a lower price.

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Therefore, competition is among the brands on promotions, marketing strategies and

customer preference.

According to our survey.

SAMPLE SIZE = 7 STORES

Competition
Price quality promotion offer

BRAND 6 5 6

LOCAL 5 3 5

The competition is among the branded and the local garment is on the quality. The

branded garments offer better quality than the local garment stores. The price factor and

the promotional offers do not have any differences among the brands.

The brand tag creates a symbol of status among the consumers. Thus, the competition is

among the brands itself for their brand value than other factors.

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 CONSUMER PERCEPTION
Indian consumer markets are changing fast, with rapid growth in disposable incomes, the

development of modern urban lifestyles. Indian consumers are becoming increasingly

sophisticated and knowledgeable about products; media channels that allow companies to

communicate with consumers are growing in diversity and reach.

Foreign brands remain very powerful in India, especially in clothing, but increasingly

brands have to be associated with value.

A customer always buys a product or service with a lot of expectations which he has

derived from the promotional inputs of the company or other sources including word of-

mouth. So a customer would be satisfied when Performance is equal to Expectation while

would not be satisfied when Performance does not match with Expectations. Now this

expectation is what has been derived from perception.

Perception is not good or bad, right or wrong, it is just the way someone judges an

experience based on their value system of what they believe should happen. Since people

are unique, each of their perceptions is unique.

CONSUMERS PERCEPTION ON BRANDED

OR LOCAL GARMENTS IN GOA.

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With the introduction of branded and local garments in Goa the consumers are now aware

of the garment available, the price, quality and the preference. According to our study

sample about 60% of the consumers are brand conscious but may not buy branded

garments only. There are many brands available in Goa and the customers have a wide

choice to choose their brand according to their choice.

A number of factor have been identified which affect the perception of customers in

respect of brands and consequently their evaluation.

FACTORS AFFECTING CONSUMER ATTITUTE

STATUS 32.12
QUALITY 26.28
DURABILITY 10.22
COMFORT 14.60
PRICE 7.30
FASHION 9.49

Customer attitude towards brands depends on the consumer's perception of the overall

quality of the brand and the sense of status. Price factor influences the brand image

Which consumers attach to brands a high price is assumed to be a product of high quality.

Branded garments are fashionable; it gives comfort and a perfect fitting. The product

being of a good quality, are more durable and long lasting. The consumer prefers

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durability which last for a longer period therefore consumer prefer to buy branded

garments of a better quality and at a reasonable price.

SAMPLE ANALYSIS OF THE STUDY

According to the survey conducted the following is the analysis.

Demographic Classification -Sample Age Groups

Age in years No. of people

below 20 4
20-30 46
30-40 3
40-50 3
50 and above 2

In the survey conducted the sample size was taken randomly and a conscious effort is

made to cover each and every type of category of people. As seen in the observations,

most of the branded consumers fall in the age group of 20-30 which shows that most of

the branded garment industry targets “the youth”.

Monthly income

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 monthly income

10-50k 50-100k 100k- above

43 8 5

From the sample taken, the branded garments buyers age group i.e. 20 to 30 years have a

monthly income ranging from Rs. 10,000/- to Rs. 50,000/- which constitutes of Students

and servicemen.

Occupation

Occupation
Student 77
Business 14
Service 9

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Consumer purchase frequency

consumer purchase frequency

Monthly 27.59
Quarterly 34.48
Random 37.93

Majority of the consumer prefer to shop randomly as clothing purchased for a longer

duration and people are spend more during seasonal discounts and festival which comes

after a longer time interval and consumer buy branded for casual which are bought every

quarterly. Shopping is the most preferred time pass for the consumers.

Ambience of store does not matter in consumer buying preference directly but it helps in

impulse buying and increasing foot falls.

CONSUMER CHOICE FOR GARMENTS

CONSUMER CHOICE FOR GARMENTS

BRAND LOCAL
27 31

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From the diagram it shows of the sample taken people prefer both branded as well as

local garments. The fashion trends, price, durability etc. are considered during purchasing

clothes. According to the Consumers opinion branded garments charge higher price than

the standard price for the quality given.

Overall preference for one brand over another is the shopping experience for a particular

brand. Celebrity Endorsement is not much considered while choosing one brand over

another. People need “value for money”, which means the product should be of best

quality, latest design and the price should be affordable.

Branded Garments Owned

Branded Garments Owned

0-25% 24.14
25-50% 41.38
50-abv 34.48

This chart shows 41% of the population own branded garments between 25 to 50% of the

total clothes which shows people still depend on local garments for more than 50 % of

their clothing.

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 CONCLUSION

In Goa, the branded garments are in the growth phase. Consumers have started

identifying and preferring branded products due to growth in branded clothing sector.

Another observation is that, consumers are quality and price conscious rather than brand

conscious which means there are very few brand loyal customers. Thus proper category

management and catchment can improve branding and brand loyalty in Goa.

As per the survey conducted, we have the following results:

1. People gave an overall perception that they prefer to buy value for money

garments i.e. the local garments. But slowly the consumer perception is diverting

towards the branded garment industry due to changing lifestyle and attitudes of

the people.

Local garments have always been a substitute choice of the Consumers, if chosen

wisely they have good quality as well as value for money. But there is a wide

choice in local garments as compared to branded garments in Goa.

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 2. Local and branded garment stores do not have direct competition between them

and they are two different level markets with equal demand on their independent

levels.

On the contrary, Competition is between the Local and Branded Stores

themselves. They face competition on different factors like Price, Offers, etc.

3. There is a demand in both the markets, according to the preference of the

consumers.

Therefore, we conclude that the branded stores are increasingly growing in the cities.

Presently, The youth in the urban as well as the other area surrounding are strongly

becoming brand conscious and brand loyal customers and will be pure buyers of branded

products in the near future.

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