A Project Report On Identifying The Opportunity For Apparel Retailing in South East Bangalore

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE
A PROJECT REPORT ON IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE At JONES LANG LASALLE PROPERTY CONSULTANTS PVT. LTD. BANGALORE
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SR.NO 1 2 3 4 5 6 7 8 9 10
PARTICULARS INTRODUCTION COMPANY PROFILE THEORETICAL FRAME WORK RETAIL SECTOR OVERVIEW RESEARCH METHODOLOGY DATA ANALYSIS FINDINGS CONCLUSION BIBLIOGRAPHY ANNEXURE
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EXECUTIVE SUMMARY
The project title: Identifying the opportunity for apparel retailing in South East Bangalore. The primary objectives were to identify whether the specialty retail stores are required in suburban areas South East Bangalore and to identify the customer attitude towards apparel shopping and the customer buying behavior. The secondary objectives to identify the real estate requirement for setting up such stores. The sample taken up was 200 and places covered for the study is South East Bangalore, which includes areas like Whitefield, Kormangala, Marathalli, Bannerghatta Road, Electronic city, HSR Layout, Hosur etc. These areas have retail outlets and shopping malls Forum, Globus, factory outlets etc. The research covered call centre professionals, fresh graduates, middle and senior level executives and housewives. The outcome of the research says that there is a need for such retail outlets in South East Bangalore and the retail sector opening up for foreign investment will lead to many challenges. The availability of space in terms of real estate is very challenging. In future, there is a huge opportunity for the developers to built more shopping malls and maximize their revenues.
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INTRODUCTION Retail is India's largest industry, accounting for over 10% of the country's GDP and around 8% of the employment. The retailing industry in India is estimated at Rs.930,000 crore (2003-04) is expected to grow at 5% p.a. Booming IT and BPO sectors with rising incomes, emergence of profitable retail models, availability of retail space, increasing interest of foreign retailers in India, all have led to the growth of retail sector. In this growth where the preferences of the people are shifting, new retail outlets and shopping malls, coming up should be properly planned as the real estate retail space availability is low and calls for huge capital expenditure.
The objective of the research is to study the market for branded apparels in South East Bangalore, as it is one of the growing areas in Bangalore and lot more is expected to happen in terms of real estate. Thus, helping Jones Lang LaSalle to cater to their clients effectively and maximise the returns.
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COMPANY PROFILE Jones Lang LaSalle was formed by the 1999 merger of LaSalle Partners Incorporated and Jones Lang Wootton. Building on Jones Lang Woottons international strengths in Europe and Asia Pacific and LaSalles depth in North America and its position as a leader in real estate investment management services, Jones Lang LaSalle brings together two organizations with rich histories of client service. Jones Lang LaSalle is a leading global provider of integrated real estate and money management services. The Company serves clients locally, regionally and globally from offices in more than 100 markets on five continents. Approximately 19,300 employees stand ready to provide each client with comprehensive investment, transaction and management services. Companys real estate money management business, LaSalle Investment
Management, is one of the world's largest and most diverse, with approximately US$ 23 billion of assets under management. Jones Lang LaSalle Hotels, hotel and tourism specialty, is the first fully integrated global hotel real estate investment banking services group delivering advisory, transaction, financial and management services. Jones Lang LaSalles Research function lies at the heart of their business, tracking and interpreting the market forces and economic trends that affect the business to support the professionals as they provide the best-informed solutions to meet our clients' needs. Working from three geographic regions America, Asia Pacific and Europethe Company delivers management, transaction and advisory services to real estate owners, occupiers and investors.
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The branches across the world support multinational clients with the assistance of two management functions: Global Client Services and Strategic Consulting. These groups coordinate client activities and ensure consistent, high-quality services across geographic regions and among businesses by offering clients a single point of contact at Jones Lang LaSalle. Jones Lang LaSalle is the world's only autonomous globally integrated real estate services and money management firm. Wherever Jones Lang LaSalles employees are located, they report to the same ownership and management structure. As a result, the Company can deliver a consistent and comprehensive range of fully integrated services to the clients, wherever their needs arise. The ability to combine complementary services allows the Company to develop and implement real estate strategies that meet increasingly complex business and financial needs. Jones Lang LaSalles presence:
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Organization Structure: Jones Lang LaSalle has a flat organization structure. However, each Country follows the below organization format:
National Director
Associate Director
Senior Manager
Manager
Senior Executive
Analyst / Executive
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Services: The Global Client Services function assists clients who require multiple services, are looking for coverage in more than one region, or need help determining which services will best serve their real estate objectives. Global Client Services also ensures that operations worldwide work and interact at the consistently high levels. The Company believes that their investments in people, research, technology and knowledge not only helps them create and expand enduring client relationships, but also enables them to continually strengthen their service capabilities. Whether the client requires one real estate service in a single location or broader support across a geographical region or around the world, the Company has the people, resources and systems in place to deliver effective solutions with consistently high levels of service and skill.
AGENCY LEASING From portfolios of smaller properties to the world's most recognizable landmark buildings, the leasing specialists are dedicated to achieving the highest possible rental rates while exceeding lease-up schedules. The leasing activities are characterized by:

Extensive experience with assets of all types and sizes. Strong relationships with brokers in markets around the world. Dedicated research professionals in all major markets. Excellent track record for achieving top-of-market rates
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CAPITAL MARKETS Jones Lang LaSalle's Capital Markets combines the in-depth local knowledge of over 370 investment and corporate finance professionals based in 100 markets around the world with the industrys most respected property research capability. By integrating real estate expertise in structuring, arranging and managing financial transactions, and harnessing both local and cross-border capital flows, which maximise returns from real estate holdings, and create valuable new opportunities to serve the needs of investors, owners and users of real estate. Capital Markets services include:
Investment Sales: A leader in the sale of single assets, portfolios and loan
notes, the Company supports their clients at all stages of the sales cycle: from pre-offering due diligence, to marketing campaigns, negotiations and duediligence support, and on through closing.
Investment Acquisitions: The Company represents clients at all stages of
the acquisition process for single assets and portfolios, from research-based advice on sector and location, through opportunity sourcing, stock selection, due diligence and acquisition.
Corporate Finance: We offer clients a range of specialist real estate
investment banking services that provide strategic advice and implementation on indirect vehicles. The Company is active in the areas of limited partnerships, equity raising, mergers and acquisitions, securitisation, joint ventures, structured finance, corporate disposals and real estate sales and financing transactions including sale/leasebacks, synthetic leases and other net lease structures.
Debt Capital Markets: Specialists in large, structured debt transactions, the
Company represents clients in single-asset financing, development financing, loan note sales, portfolio financing and credit facility financing.
Equity Capital Markets: The Company is skilled at raising project and
entity level equity, developing balanced financial structures with an optimal mix of flexibility, control and exit strategies.
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Workouts and Advisory: The Company also conducts complex, confidential
analyses supported by the industry expertise, research and local and global market knowledge to create effective solutions for owners, investors and creditors.
International Capital Group: Extends the reach and impact of existing
local and regional Capital Market teams, delivering consistent, high-quality investment sales, acquisition, and financing services between the major markets and capital flows of all three regions Europe, Americas and Asia-Pacific
CORPORATE FINANCE Decisions about whether to own, lease, sell or finance corporate propertiesand how to structure such transactionsdepend on many factors. The Company works closely with owners and occupiers to explore available options and select the alternative that best addresses specific real estate and business objectives. Corporate Finance activities encompass:
Sale/Leasebacks: The Company advises corporations on structuring and
executing sale/leasebacks, enabling them to re-deploy capital to core business priorities while continuing to occupy premises as long-term tenants with full control of property operations.

Synthetic Leases: The Company help corporations structure net-lease Net Lease Financing: The Company assists in placing debt that is secured by
financings at low cost and with attractive ongoing purchase options. the corporation's credit and is typically priced at less expensive levels than typical mortgage debt.

Dispositions: The Company provides clients with comprehensive pre-contract Consulting: To bring discipline to the real estate decision function and make
property due diligence, marketing services and an aggressive sealed-bid process. real estate support broader corporate business and financial goals, the Company develops portfolio strategies that focus on the appropriate balance sheet role of corporate real estate
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CORPORATE PROPERTY SERVICES The Company delivers property, asset and operational management and property management services to corporations and institutions that outsource the management of their occupied real estate. The facilities manage range from corporate headquarters and data centres to educational and industrial sites. The core services include:

Facility Management Occupancy Planning Engineering and Operations Sourcing and Procurement Facility Line
GLOBAL CLIENT SERVICES The Global Client Services team works with clients to determine, and then act on, the most effective ways in which Jones Lang LaSalle can support their needs. A Global Client Services professional serves as a single point of client contact for Jones Lang LaSalle resources across a region or around the world, assembling appropriate people and expertise and serving as a client advocate to ensure service quality and timeliness. GOVERNMENT The Company uses a collaborative approach to develop and implement real estate solutions that help the public sector address its real estate challenges and priorities:

Improving the quality of life for military families Maximizing real estate assets Reducing costs Managing facilities effectively
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The government practice comprises a dedicated team of public sector specialists with full access to global network of resources. The Company combines private sector expertise with public sector experience to deliver integrated real estate solutions that are focused on the unique needs of government agencies. The areas of expertise include:

Asset Management Development and Project Management Facilities Management Portfolio Strategy and Management Public-Private Partnerships
HEALTHCARE The Company delivers the highest quality service to healthcare clients in an extremely dynamic and challenging environment. Our healthcare real estate professionals develop strategies to meet the needs of investors, hospitals and physicians, offering strategic insight into the doctor/hospital relationship and healthcare delivery systems. Access to capital from varied sources enables to develop financial solutions for a wide range of healthcare facilities. The specialized services for the healthcare industry include:

Financing Acquisitions and Sales Development Property Management Leasing
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HIGHER EDUCATION The Company is the leader in delivering comprehensive real estate services and solutions to colleges and universities. The unique needs of educational institutions are well understood, and have helped administrators worldwide successfully address important real estate needs and concerns. The Companys professionals develop a full understanding of each institution's mission, objectives and challenges to formulate and implement strategies that add value to real estate assets and facility operations. The range of services to the higher education community, includes:

Campus Operations Assessments Commercial Leasing Analysis Development Feasibility Studies Master Plan Financial Analysis Lease versus Buy Analysis Project and Development Management
HOTELS Jones Lang LaSalle Hotels is the world's largest and most qualified specialist hotel real estate investment advisor. Working through 16 dedicated offices and the global Jones Lang LaSalle network, provides clients with value-added investment opportunities and advice, helping them achieve maximum value from their hotel and tourism property assets. The firsthand experience in local markets and financial expertise lead to superior solutions across a range of disciplines:

Valuation and Appraisal Transactions Mergers and Acquisitions Financial Advice and Capital Raising Asset Management Strategic Planning
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Operator Assessment and Selection Industry Research Project and Development Management
Focusing on these areas, the Company helps clients maximize investment return, minimize risk, increase operational efficiencies and synergies, and tap innovative funding sources on a global scale.
INDUSTRIAL SERVICES The Industrial Services practice leverages the firm's extensive global resources to control costs, improve effectiveness and enhance the value of industrial real estate holdings. The worldwide capabilities for industrial users, investors and owners include:

Acquisition and Disposition Project and Development Services Strategic Consulting Portfolio Management and Administration
INVESTMENT MANAGEMENT LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group, is a leading global real estate money manager with approximately US$23 billion of public and direct real estate assets under management. The investment strategy is shaped by three priorities:
Developing and executing customized investment strategies that meet the
specific investment objectives of each of our clients.

Providing superior performance for all clients. Delivering uniformly high levels of service.
The Company offers separate accounts and co-mingled funds, for direct real estate as well as public real estate securities in the United States, Europe and Asia:
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Private Investments in Real Estate Properties: The Company oversees the
acquisition, management, leasing, financing and disposition of real estate investments across a broad range of property types.
Investments in Public Equity and Debt Securities: The Company also offers
clients the ability to invest in separate accounts focused on public real estate, debt and equity securities.
LEISURE SERVICES The Company creates and implement innovative real estate solutions for the leisure and entertainment industries. In Europe, the specialist teams provide management advice on over 2 million square feet of leisure and lease over 3 million square feet of commercial leisure developments. The range of Leisure Services includes:

Investment Funding Finance Valuation Leasing and Development Consultancy and Research Management Professional Services
OFFICE With a presence in more than 100 of the world's leading property markets, Jones Lang LaSalle has the expertise to enhance the value of their client's office properties. The network of professionals provides a full complement of services to office building owners, occupiers and investors worldwide.
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PROJECT AND DEVELOPMENT SERVICES The Company provides a full range of services that address all aspects of the development, construction, refurbishment and occupancy of buildings. The diverse client base and consequent experience extend to property types ranging from offices and industrial to warehousing. In addition to meeting or surpassing the agreed objectives of each project, the goal is to add value to the client's position by applying our expertise and best practice methodology. The core service activities include:

Building Surveying Development Advisory Development Management Interiors Project Management Move Management Multi-Site Program Management Privatisation Renovation and Rehabilitation
The Company delivers added value to their clients by relieving demand on internal resources, maximizing client purchasing power and utilizing state-of-the-art technology systems to monitor schedules and control costs.
PROPERTY MANAGEMENT In a deregulated financial climate, real estate assets must be aggressively and professionally managed if they are to achieve the best possible returns for owners and investors, and compete effectively for investment capital. Owners across the globe entrust their diverse real estate investments - large and small assets and portfolios, new development and renovation, and urban and suburban properties.
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The goal is to enhance clients' property values through active day-to-day management that focuses on maintaining high levels of occupancy and tenant satisfaction, while lowering property costs. From due diligence and financial underwriting to environmental and engineering services, we have the broad base of experience and knowledge needed to provide the technical, operational and construction services that achieve the clients' objectives. RESIDENTIAL DEVELOPMENT AND INVESTMENT The Company provides marketing and sales services for major residential development projects in Australia, Asia and select European markets. The Company offers a philosophical approach to marketing clients' residential projects, which on key points differs from the traditional agent's model of project marketing. Jones Lang LaSalle has:

The financial strength to provide the services offered throughout the life of the The skilled human resources and experience vital to sales and marketing The international network, widening the market
The corporate commitment to its particular approach to the marketing of
project success
major residential developments
RETAIL The Companys network of specialists provides retailers and retail property investors in the world's leading markets with a full complement of services:

Leasing Specialty Leasing Acquisition and Disposition Property Management Project and Development Services Construction Management
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Consumer Marketing Tenant Representation Strategic Consulting
SALES AND ACQUISITIONS The Company is a market leader in the sale and acquisition of large, institutionalquality office, retail, industrial and mixed-use properties. Located in every major market in the world, our professionals are positioned to market properties internationally, using first-hand local knowledge to provide valuable insights into what occupiers and investors are seeking in the marketplace. STRATEGIC CONSULTING The Company ensures that real estate is positioned to support the clients' business objectives. A network of 150 professionals in three regions allows them to share best practices globally, invest in R&D, and assemble global teams. The professionals have backgrounds in real estate, business, finance, design and corporate strategy. Strengthening corporate real estate's contribution. The Company ensures that corporations get value and efficiency from their real estate. Services include:

Aligning real estate with corporate objectives Positioning real estate to accommodate changes in business needs Creating best-in-class real estate departments Disposing of redundant facilities quickly, at highest price Providing better facilities using less capital Assisting in location selection development strategies. Working with developers, investors,
Designing
corporations and governments. Services include: Regeneration and master-planning
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Repositioning vacant or under-utilized properties Disposals and acquisitions Strategic marketing Transport related development Development for arts, culture, education & sport facilities Mixed-use schemes
Providing sound strategies for investors. The Company objectively analyses investment opportunities to examine risks and returns associated with diverse portfolios. They work with investors to:
Explore cross border opportunities Advise on acquisition and divestment strategies Achieve value enhancement and risk reduction, for single assets and
portfolios (including NPL and distressed assets workout strategies and REITs emerging in many markets)
Advise on portfolio structuring and positioning
Offering solutions for retail clients. The Company works with retailers, owners and developers to maximise the performance of retail outlets. The advice ranges from refining retail portfolios to developing and repositioning the retail offers in major cities. By using consumer led research, and provide all of the above for retailers.
TENANT REPRESENTATION The Company develops strategic alliances with clients with complex real estate requirements while partnering with them to evaluate and execute transactions that meet their ongoing occupancy needs. The multi-discipline approach supports occupancy strategies that are linked to the clients' core business objectives. The Company works to help clients lower their real estate costs, minimize occupancy risk, improve occupancy control and flexibility, and create more productive office environments. In the process, they define space requirements, identify suitable
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alternatives, recommend appropriate occupancy solutions and negotiate lease and ownership terms with third parties. Our transaction services encompass:

Portfolio Occupancy Strategy Business Location Strategy Acquisition Disposition Contact Centres Mergers & Acquisitions
The Company also provides clients with the knowledge needed to consider the development of new facilities, weigh the benefits of purchase or lease decisions and evaluate long-term financing options for every asset type including industrial properties. We also represent clients in large, complex transaction assignments that typically involve relocations of headquarters facilities or major office consolidations.
VALUATIONS From commercial office buildings, retail outlets and factories, to retirement villages, hotels and hospitals, occupiers and owners in the public and private sectors benefit from the proven valuation experience. The serviceswhich may focus on a single property or a global portfolio of multiple asset typeshelp clients determine accurate values of office, retail, industrial and mixed-used properties in the areas of:

Strategic Disposition Analysis Investment and Market Analysis Hold-Versus-Sell Analysis Due Diligence Feasibility Studies Securitization Asset Valuation Bond Financing Cash Flow Feasibility Asset Review and Market Surveys
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Highest and Best Use Studies Strategic Reviews Acquisition Advice and Analysis Valuation for Sale/Leaseback Portfolio Valuation Debt and Equity Financings Mergers and Acquisitions Privatisation
The valuation service fulfills the need for maximum accountability at the highest professional level. The professionals work with clients to ensure comprehensive recording and full utilization of property resources, regular revaluation of assets to review performance and ascertain the best use of a property, and rapid evaluation of property assets in any measurement of a company's value
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RETAILING: WHAT IS RETAILING .? Retailing consists of those business activities, which are involved, in the sale of goods or services to consumers for their personal, family or household use. It is the final stage in the distribution process for goods and services from manufacturers to final consumers
Figure 1 A Typical Distribution Chain Source: -Ron Hasty, James Reardon - Retail Management Retailing involves: - Interpreting needs of the consumers - Developing good assortments of merchandise - Presenting them in an effective manner so that consumers find it easy and attractive to buy. Retailing differs from marketing in the sense that it refers to only those activities, which are related to marketing goods and/or services to final consumers for personal, family or household use. Whereas marketing, according to American Marketing Association, refers to "the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives."
Organizational buyers purchase in order to perform a task or sell a product effectively, efficiently and at a profit. They could be industrial buyers or intermediary buyers. Industrial buyers are those who purchase goods and services to be used in or to aid manufacturing process. Intermediary buyers are those (i.e. wholesalers and
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retailers) who buy merchandise for resale. Retailers include street vendors, local supermarkets, department stores, restaurants, hotels, barbershops, airlines and even bike and car showrooms. Still retailing may or may not involve the use of a physical location. Mail and telephone orders, direct selling to consumers in their homes and offices and vending machines - all fall within the purview of retailing. In addition to it, retailing may or may not involve a "retailer." Manufacturers, importers, non-profit firms and wholesalers are acting as retailers when they sell goods and/or services to final consumers.
Whatever the form of retailing, a retail marketing strategy defines the execution of the marketing process and facilitation of customer satisfaction. This retail marketing strategy involves selecting a retail target market (i.e. the carefully/exactly identified group of final consumers that a retailer seeks to satisfy) and then implementing the corresponding retail marketing mix (i.e. a combination of product, price, promotion and distribution strategies that will satisfy the retail target market). The elements of the marketing mix encompass the facets shown in the table below. The table depicts consumer service as the crux of the whole activity. Retail Marketing Mix Product Branding Packaging Product Design Assortment Services Promotion Advertising Personal Selling Sales Promotion Public Relations Visual Merchandising Price Cost of goods Business Expenses Gross Margin Profit Distribution Logistics Store Location Site Evaluation Transportation Storage of goods
Source: -Ron Hasty, James Reardon - Retail Management
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Importance of Retailing So far, it has been seen that retailing is a vital and involuntary action performed by the living structure of the market economy (as opposed to the case in a barter economy). In a barter economy, barter transactions take place between consumers themselves. Consumers interact directly whereas in a centralized market economy, transactions taking place at a larger scale (both in terms of volume and variety) necessitate an interface between the manufacturers and final consumers. Hence we reinforce the fact that retailing is not a new deal. This industry is extant as an interface between production and consumption, from times immemorial, benefiting us - consumers or producers in the various ways discussed above. Our study concentrates on organized retailing, which consists of shopping malls, super markets, Factory outlets stores, and like. In the last few years a shift has occurred in India from individual retail outlets owned separately and managed distinctively to professionally managed retailing. This is an industry, which has now started attracting better investments and talent. Things changed primarily because of the rising expectations of Indian consumers and the corporate responding quickly. Today, the industry (in India) seems to be functioning somewhere between the accelerated development and maturity stages, with high growth rates, intense competition and moderate profitability. For reference, the table, depicting the various stages of the Retail Life Cycle is given in order to get an idea of the magnitude of the issue we are dealing with, we look at the international scenario. During 1992, the largest 100 retailers in the world generated over $1.1 trillion in revenues. Retailing is the second largest industry in the world, one of the largest employers of the world and an index of economic growth. In India there are about 5 million retail outlets varying in sizes and nomenclatures. India has the highest number of retail outlets per capita in the world but has the lowest retail space per capita in the world (2 ft / person). Out of these 5 million outlets 96% are smaller than 500 sq. ft. in area 3. There are about 3 million outlets in India's 3700 designated towns and more than
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6,00,000 villages. About 350 million people live, within one-minute walk of these retail shops According to retail census conducted by market researcher ORG-MARK, Rs.4,79,568 crore worth of products were sold through these 5 million retail outlets
Manufacturers owned and retail chain store are springing up in urban areas to market consumer goods to the middle class in a much similar style as malls around the globe. At present about 8% of the Indian population is employed in the retailing industry as against 20% in USA. As India moves towards the service oriented economy, a rise in this percentage is expected. The number of the retail outlets is growing at about 8.5% annually in the urban areas and in towns with population between 1,00,000 to 1 million; the growth rate is about 4.5%.
According to Kurt Salmon Association, a global management consulting firm, organized retailing seems all set to power ahead from Rs. 5000 crore currently to about Rs.30,000 crore in next five years. A.T.Kearney reports that organized retailing will account for about 20% of the total $8 trillion retail market in India in the next 5-7 years as against 1-2% today. Consumer Spend by 2005 (in Rs. crore) Unorganized Retailing 7,08,836 Organized Retailing Food and grocery 5,956 Non food 23,886 Source: Shah, Jindal " Shop at Leisure" Economic Times (4th Feb 2000) In India, organized retailing is catching up fast. Yet retailing is to be recognized as full-fledged industry in the India. Organized retailing is bound to grow tremendously provided the right marketing strategies are adopted.
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Even though the big retail chains are concentrating on the upper segment and selling products at higher prices like Crossroads, Akbarally's and Shopper's Stop, retail stores are sprouting that cater to the needs of the middle class. With a huge middle class population, the retailers like RPG's Food World are tapping this market. The market is flooded with products - branded and unbranded. The customers are in a dilemma as to pick which one! The organized retail chains, display all the products and the most attractive product catches the customer attention. Gone are the days of customer loyalty with increasing number of products of similar quality hitting the market. Differentiation plays the lead role. According to Mr. Simon Bell of A.T.Kearney, there is a close relation between the growth of brands and the growth of the organized retailing. "Companies selling branded products prefer to have big and organized retail outlets such as supermarkets where there can be differentiated from unbranded products" he opines. India is going through that phase in retailing, which the US experienced in 80s and early 90s. From product based shopping, the importance has shifted to experience based shopping. The customers of the 21st century would expect to pick his/her own products from an array of choices rather than asking the local kirana wallas to deliver a list of monthly groceries. Thus the way of distribution of products has gained importance in the past decade.
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BUYING BEHAVIOR: Consumer decision making varies with the type of buying decision.the decision to buy a toothpaste, tennis racket, a personal computer and a new car are all very different. Complex and expensive purchases are likely to involve more buyer deliberation and more participants. Henry Assael distinguished four types of consumer buying behavior, based on the degree of buyer involvement and the degree of differencec among brands.
High involvement
low involvement
Significant differences between brands
Complex buying behaviour
variety-seeking buying Behaviour
Few differences between brands
Dissonance-reducing buying behaviuor
habitual buying behaviour
Complex Buying Behavior: Complex buying behavior involves a three-step process. First, the buyer develops beliefs about the product. Second, he or she develops attitudes about the product. Third, he or she makes a thoughtful choice. Consumers engage in complex buying behavior when they are highly involved in a purchase and aware of significant differences among brands. This is usually the case when the product is expensive, bought infrequently, risky, and highly self-expressive, like an automobile.
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The marketer of a high-involvement product must understand consumers information gathering and evaluation behavior. The marketer needs to develop strategies that assist the buyer in learning about the products attributes and their relative importance, and which call attention to the high standing of the companys brand on the more important attributes. The marketer needs to differentiate the brands features, use print media to describe the brands benefits, and motivate sales personnel and the buyers acquaintances to influence the final brand choice. Dissonance-Reducing Buyer Behavior: Sometimes the consumer is highly involved in a purchase but sees little difference in brands. The high involvement is based on the fact that the purchase is expensive, infrequent, and risky. In this case, the buyer will shop around to learn what is available. If the consumer finds quality differences in the brands, he or she might go for the higher price. if the consumer finds little difference; he or she might simply buy on price or convenience. Marketing communications should supply beliefs and evaluations that help the consumer feel good about his or her brand choice. Habitual Buying Behavior: Many products are bought under conditions of low involvement and the absence of significant brand differences. Consider salt, consumers have a little involvement in this product category. They go to the store and reach for the brand. If they keep reaching for the same brand, it is out of habit,not strong brand loyalty. There is good evidence that consumers have low involvement with most low-cost, frequently purchased products. Consumers do not search extensively for information, evaluate characteristics, and make a decision. Instead, they are passive recipients of information in television or print ads. Ad repetition creates brand familiarity rather than brand conviction. After purchase, they may not even evaluate the choice. For low-involvement products, the buying process begins with brand beliefs formed by passive learning and is followed by purchase behavior, which may be followed by evaluation.
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Variety-Seeking Buying Behavior: Some buying situations are characterized by low involvement but significant brand differences. Here consumers often do a lot of brand switching. Think about cookies. The consumer has some beliefs about cookies, chooses a brand of cookies without much evaluation, and evaluates the product during consumption. Next time, the consumer may reach for another brand out of a wish for a different taste. Brand switching occurs for the sake of variety rather than satisfaction. The market leader and the minor brands in this product category have different marketing strategies. The market leader will try to encourage habitual buying behavior by dominating the shelf space, avoiding out of stock conditions, and sponsoring frequent reminder advertising. Individuals are subject to a number of influences that tend to distort their perception; some of these are discussed are below:
Physical appearances: People tend to attribute the qualities they associate with certain people to others who may resemble them, whether or not they consciously recognize the similarity. For this reason, the selection of models for print advertisements and for television commercials can be a key element in their ultimate persuasiveness. Studies on physical appearance have found that attractive models are more persuasive and have a more positive influence on consumer attitudes and behavior than average looking models; attractive men are perceived as more successful businessmen than averagelooking men. Some studies suggest that models influence consumer perceptions of physical attractiveness and through comparisons their own self-perceptions. Stereotypes: Individuals tend to carry pictures in their minds of the meanings of various kinds of stimuli. These stereotypes serve as expectations of what specific situations, people or events will be like and they are important determinants of how such stimuli are subsequently perceived.
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Irrelevant cues: When required to form a difficult perceptual judgment, consumers often respond to irrelevant stimuli. For example, many high-priced automobiles are purchased because of their color, style or luxury options, rather than on the basis of mechanical or technical superiority. First impressions: First impressions tend to be lasting; yet, in forming such impression, the perceiver does not yet know which stimuli are relevant important, or predictive of later behavior. A shampoo commercial effectively used the line, youll never have a second chance to make a first impression. Since first impressions are often lasting, introducing a new product before it has been perfected may prove fatal to its ultimate success; subsequent information about its advantages, even if true, will often be negated by the memory of its early performance. Jumping to conclusions: Many people tend to jump to conclusions before examining all the relevant evidence. For example, the consumer may hear just the beginning of a commercial message and draw conclusions regarding the product or service being advertised. For this reason, some copywriters are careful to give their most persuasive arguments first.
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POSTPURCHASE BEHAVIOUR After purchasing the product the customer will experience some level of satisfaction or dissatisfaction. The marketers job does not end when the product is sold to the buyer, marketers must monitor post purchase satisfaction, post purchase actions, and post purchase product uses POSTPURCHASE SATISFACTION The buyers satisfaction is a function of the closeness between the buyers expectations and the products perceived performance. If performance falls short of the expectations then the buyer is disappointed, and if it meets the expectations then the customers is satisfied, and if the performance exceeds the consumers expectations then the consumer is delighted, these feelings makes a difference in weather the customers buys the product again and talks favorably or unfavorably about the product. POSTPURCHASE ACTION: The consumers satisfaction or dissatisfaction with the product will influence subsequent behavior. If the consumer is satisfied then he or she will exhibit a higher probability of purchasing the product again. And he may also tend to speak good about the brand. Dissatisfied consumers may abandon or return the product or sometime they may also take public actions.
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INDUSTRY ANALYSIS
ENVIRONMENTAL ANALYSIS
In order to understand the industry we undertook two different environmental analyses. The first is the PEST Analysis where the political, environmental social, and technological aspects are looked into. In the Porter's Five Forces the competitive environment of the industry is analyzed.
I) PEST Analysis: Now, in a particular geographic region, the environment there affects the retailers in the region in various ways. We have studied the effects under the following heads: - Political environment - Economic Environment - Social (Socio-Cultural) Environment - Technological Environment
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Political Environment:
With the opening up of the economy, more and more MNC's have pervaded the Indian Business arena, through joint ventures, franchisees or even self-owned stores. The very first MNC getting into the business was Spencer's, a tie up between the RPG Group and the Dairy Farm International, a $10 bn Hong Kong based company, and a part of the Jardine Mathenson group. Government uses regulation to prevent development of monopolies, which results in restricted competition and fixed prices. (MRTPC). Government also propounds price competition laws and unfair trade practice laws. Retailers must understand what rights they have in pricing merchandise, what provision they should make for customer relations, what rights and responsibilities they possess when making a sales, what rights their employees have and what liabilities they may face while selling products to the consumers.
Economic Environment:
The type of economic system (capitalism or socialism etc.) existing in a country has a direct bearing on the potential for and the development of the retailing industry in that country. A retailer cannot escape the effects of the factors in the macroeconomic environment, be it domestic or global that influences the local market.
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Inflation, unemployment, interest rates, tax levels, the GDP and the rate of real growth in GDP (Inflation adjusted) are some aspects of the economy which a retailer must cope with. Real growth makes more income available to people who then tend to spend more, leading to higher sales and more profits for the retailers. However growth also leads to higher competition in the long run. As the economy expands, higher demand levels lead more firms into the market, trying to fulfill the consumers' needs. The inflation (i.e. increase in price) leads to less goods being bought at higher prices. As the retailers' cost of goods increases, they attempt to pass on this increase to the consumers. However, it is often not possible to pass on the entire amount to the consumer, hence resulting in cuts in the retailers' profits. With the increase in Purchasing Power Parity (PPP) and the disposable income of the Indian consumer, retailing is catching up at a very fast pace in the country.
Social Environment:
As discussed under the title 'demographic and lifestyle trends' above, the demographic trend and lifestyle patterns, of the society that a retailer intends to serve, decide the retailer's strategy.
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Traditionally, children seldom accompanied their parents while grocery food shopping. Shopping for children was confined to that during festivals when dresses were brought for them. But, in the present day, due to scarcity of time, working parents prefer to spend as much time as possible with their children and this includes their shopping hours also. As the organisation retail sector offers the option of entertainment along with shopping, the younger couples opt for these retail outlets for shopping. Speaking at KSA Retail Summit, 2000, Peter Lau, Chairman of Giordans International, Hong Kong, said, "It is the format of consumer expectation that changes, not the goods or services they want. " This is depicted in the following diagram:
KSA Technopark conducted a study on consumer attitude towards shopping in association with the market research firm ORG-
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MARG in January and February 1999. The study was spread over the four zones of India viz. North, South, West and East and covered a random sample of 7300 respondents in twelve cities. The results of this study clearly reflect that the buying patterns do vary according to the customs and lifestyle of a region. In the south approximately seven hours are spent on shopping per week. This figure is the highest amongst the four zones, which probably explains the more spurt of new malls and supermarkets in the south than in the other zones. Further, the study has attempted to find out what a customer expects out of a store. Here, the six attributes desired by most number of people (65% and above) are polite and courteous salespeople, quality of products, non intrusive sales persons, value for money, attractive displays and range of products. Although desired by a very low percentage of people (only 10%) yet the attribute of an entertainment centre for children has also figured in. That is to say, apart from quality and range of products, value for money and attractive displays, the human touch has a vital role to play. Smart, polite and courteous sales people might make all the difference for a store, which is like any other in terms of its product offerings. There is also emphasis on schemes and promotions, which, as the study ratifies, do pull customers. Further the trend is towards more convenience and flexibility in terms of exchange/ return policies, which play a vital role in encouraging the purchase.
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Technological Environment:
Technology is probably the most dynamic change agent for the retailing industry. The computerization of the various operations in a retail store, including inventory management, billing and payments as well as database (of customers) management, widespread use of bar coding, point -of-sale terminals and Management Information System has changed the face of retailing drastically. Apart from providing the retailers with better and timelier information about their operations, the technology also does the job of preventing theft, promoting the store's goods and creating a better shopping atmosphere. These can be done with the help of closed circuit televisions, video walls, in-store video networks, kiosks and other forms of interactive applications ranging from CD-ROMs to virtual reality to let customers select and buy products. They make the customer's life a lot easier by facilitating the use of developments like credit cards. Toll free 800 numbers have brought about a revolution in consumer's ordering and feedback mechanisms. These also pave way for tele-shopping and netshopping. Emerging technologies will also facilitate just-in-time management of certain products within the store. These trends are already visible in the music and greeting card industries.
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RETAIL SECTOR OVERVIEW Retail is India's largest industry, accounting for over 10% of the country's GDP and around 8% of the employment. The retailing industry in India estimated at Rs.930,000 crore (2003-04) is expected to grow at 5% p.a. in line with predictions made in 2002. However, the size of organised retailing market stands at Rs.28,000 crore in 2004, thereby, making up a mere 3% of the total retailing market. It is way behind the development curve when compared with modern economies like the US where organized retail forms about 85% of total retail sales. India also lags behind other emerging markets in Asia (Taiwan, Malaysia, Thailand, Indonesia, China), Eastern Europe (Poland) and South America (Brazil) where significant progress has been made in the last two decades. But the story is set to change. Moving forward, organised retailing in India is projected to grow at the rate of 25-30% p.a. and is estimated to reach an astounding Rs.100,000 crore by 2010. Its contribution to total retailing sales is likely to rise to 9% by the end of the decade. Retail industry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. It is gradually inching its way toward becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retail has entered India in the form of sprawling shopping centres, multi-storied malls and huge complexes that offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The changing demographics of the Indian population can be attributed to this phenomenon. A large young working population with a median age of 24 years and emerging opportunities in the services sector are going to be the key growth drivers
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of the organized retail sector in India. The last few years have seen the emergence of several factors that will drive growth going forward; Booming IT and BPO sectors with rising incomes Emergence of profitable retail models Availability of retail space Increasing interest of foreign retailers in India Surge in capex spend of Indian retailers
1. Booming industry and increasing incomes The growth in our economy has resulted in growth of urbanization, which is only set to grow further, producing younger families with both spending capacity and the desire to spend. The continuously evolving consumer segment in India is the youngest in the world with a median age of 24 years as compared to countries like the USA where the baby boom generation is now nearing retirement. The young Indian consumer is willing to spend on lifestyle-oriented products and services and aversion to credit is now a thing of the past. Further, consumers are spending on a wider range of products and services because of which non-conventional product categories like cell phone ringtones (estimated at Rs.400 crore) and Valentines Day gifts (Rs.1,500 crore) have evolved in very small time spans. Growth drivers:
Urban households spend 2.5x more than rural families. Urban population in India expected to grow by 85 million over the next 10
years, the second highest in the world after China.
The middle class (family income between Rs.2-10 lakhs p.a. as per NCAER),
currently estimated at about 92 mn, is expected to be around 153 mn by 2010. Real incomes expected to grow by 5-6% p.a. resulting in significant improvement in purchasing power
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These positive macro trends will add to the large pool of young, urban consumers with higher disposable incomes and the right mindset to shift towards an organised retailing experience. 2. Profitable retail models
The last few years have seen development of various retail models across product categories. Hypermarkets, food supermarkets and discount retailers are the key value retail formats in India. Only in the recent years have private sector retailers recognised the growth potential. Standalone supply models have started to appear while others have started to open in the malls that are mushrooming all over the country. The enclosed table gives a snap shot of the key domestic retailers Segment Food, grocery and tobacco Key domestic retailers Pantaloon (Big Bazaar, Food Bazaar), RPG (Spencers, FoodWorld), Subhiksha, Nilgiris, Marginfree, Trent (Star India Bazaar), Barista, Caf Coffee, Fuel retailers Clothing (BPCL, Reliance) Trent (Westside), Pantaloon (Big Bazaar, Pantaloons), Lifestyle**, ITC (Wills Lifestyle), Shopper's Stop, Ebony, Globus, Pyramid, Raymond, Arvind Brands (Arrow, Lee, Wrangler), Indian Rayon (Madura Garments- Louis Philippe, Van Heusen, Allen Solly, Peter England), Provogue, Reliance (Vimal), Bombay Consumer durables Jewellery and watches Home dcor & furnishing, household goods Dyeing, Zodiac, Indus League Vijay Sales, Vivek's, BPL, Videocon, Onida, Philips, Samsung, LG India, Whirlpool etc Titan (Titan showrooms + Tanishq (jewellery)), Pantaloon (Gold Bazaar) Lifestyle**, Welspun, Himatsingka Seide (Atmosphere), Bombay Dyeing, Durian Industries, Zuari Industries, Featherlite, VIP, Home Stores, KK Beauty & other healthcare Birla Group (Style Spa) Marico (Kaya), HLL (Lakme salons), RPG (Health &
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Medical care & health services Footwear Books, music & gifts
Glow) Subiksha, Apollo Pharmacy, RPG-Dairy Farm (Health & Glow), Dr. Morepen (Lifespring) Liberty, Lakhani, Woodlands, Action Archies, Landmark, ITC, Ebony, Shopper's Stop (Crossword), Times of India Group (Planet M), RPG (Music World), Oxford (Apeejay Group)
Source: HSBC Currently, footwear and clothing have a large penetration in the organised retail segment. Bata the oldest MNC retailer, commands a market share of 15% in the domestic retail footwear market. Foreign players in this category like Reebok, Adidas, Nike also marked a significant presence through franchisee agreements. Outlets of these companies are mostly seen in malls due to the easy availability of space along with amenities and the trend is expected to continue. While lucrative opportunities exist across product categories, food and grocery present the most significant potential in the Indian context, as consumer spending is highest on food. Further, wet groceries i.e. fresh fruits and vegetables is the most promising segment within food and grocery as very few organised retailers have tapped this opportunity inspite of wet groceries being the preferred choice of most Indian households. Opportunities galore

Home improvement: Potential exists for specialty retailing in the home improvement segment with formats such as consumer durables retailing. Electronics: Home and electronics-related sectors have performed better and gained a higher share of the overall retail cake across the world. Electronic gadgets like mobile phones, digital cameras, PC software and games, and, for the more extravagant, PDAs, notebook computers, and Apples stylish iPod have undoubtedly stolen retail spend from apparel, acting as a new way to make a fashion statement.
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Wholesale trading: These cash-and-carry stores attract large volumes from a sizeable number of retailers who do not have to maintain relationships with multiple suppliers for their every need.
Rural Retailing: This poor-cousin has of late caught the eye of retailers looking for new areas of growth. These malls offer a diverse product range including soaps, detergents, toothpastes, televisions, DVDs, sewing machines, grinders, etc attempting to provide farmers a one-stop destination for all needs.
Baby care and Mother care segment: Huge potential also exists in these segments where consumers are seeking all under one roof solutions i.e. high quality products required for mothers (20 - 39 years) and child (0 - 6 years) with a deeper product assortment than what most kids specialty stores today offer. The opportunity in this segment is highlighted by the fact that currently no infant accessories brand has exclusive retail presence in India.
3. Availability of retail space Unavailability of good quality real estate has hindered organised retail in India. It is one reason why some of the first modern-format retailers have been real estate developers (e.g., Shoppers Stop of Rahejas Group, CrossRoads of Piramals). But in the last three years, organised retail space development in India has gone through a significant change. With the rental yield on malls (12-15%) being much higher than on commercial properties (7-12%), mall developers across the country are creating superior real estate options at a frenzied pace. From 35-40 operational malls currently occupying approximately 6 mn sq ft of retail space, India is expected to have around 200 new malls by 2006 end, thereby adding retail space to the tune of 35-40 mn sq ft. Further, by 2010, 500-600 malls occupying ~120 mn sq ft are at various stage of planning. While the six metros are expected to account for a majority of these malls, they are expected to spread across 60 cities by 2010.
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Many mall developers, in a bid to offer distinctive value propositions, are planning specialty malls, which will emerge as one-stop destinations in their chosen product categories. The Delhi-based Aerens Group is one such exclusive jewellery mall. A number of analogous developments like a Wedding Mall by Omaxe Group, Automobile Mall etc are also in the offing. Home Malls offering the entire range of building and interior decor solutions are also coming up. Concepts like a Toys Mall exclusively for kids and a Factory Outlet Mall offering branded apparel at throw away prices, which are popular in developed economies are likely to crop up in India. The fast-paced growth of mall development has been further fuelled by government authorities like the Delhi Development Authority (DDA) beginning to release real estate space for retail development in prime retail areas. In Mumbai a large supply of defunct textile mill land is being released for development. Is acquiring space really simple? Getting good quality real estate in central locations is a tough game. Fragmented private holdings, zoning laws and archaic regulations all hinder development. But the hope lies in state governments, which are expected to see retail as an opportunity to reduce ballooning state fiscal deficits through sale/rent of land and through generation of tax revenues that are easy to collect. The lack of organised institutional capital also is a hindrance to the development of malls in India. Most of the developers work on the Design, Sell, Construct, Move On model, which has resulted in clustering of a large number of malls in a relatively small geographical area. A chief example is Gurgaon where over 20 new malls are likely to become operational in the next two years. This unhealthy concentration of supply in a suburban zone with a limited catchment population will lead to mall developers burning their fingers as their plans are not backed by the requisite planning and market research. Also, with ownership being fragmented, a lot of mall management issues are creeping in.
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With the government opening up of 100% FDI in construction in Feb 05, it is expected that joint ventures between Indian and foreign developers would increase, which would in turn result in opening up of new malls. The entry of institutional capital should result in ensuring unified ownership and thereby professional mall management. 4. Foreign retailers eyeing the Indian markets The last few years saw the entry of a multitude of international brands into the Indian market on the strength of rising affluent levels of the young Indian population along with the heightened awareness of global brands and international shopping experiences and the increased availability of retail real estate space. Luxury brands such as LVMH, Ermenegildo Zegna, Bvlgari, Escada, Hugo Boss, Tommy Hilfiger, Cartier, etc have entered the Indian market with presence mostly in five-star hotels. Many others are firming up plans to set up shop in the country to offer new-age global Indians an aspirational lifestyle they have demanded for long. Retailers like Wal-Mart, GAP, Tesco, JC Penney, H&M, Karstadt-Quelle, etc are stepping up their sourcing requirements from India and moving from third-party buying offices to establishing their own wholly owned/wholly managed sourcing and buying offices which will further make India an attractive retail opportunity for the global players. 5. Surging capex spends Retail majors and manufacturers have laid out aggressive capex plans for the next few years for expansion as well as renovation and maintenance of existing stores. In its recent IPO, Shoppers Stop has raised about Rs.1.6 bn of which more than Rs.1.1 bn would be used to finance new store capex. Pantaloons has been aggressively acquiring prime real estate. It has recently made three strategic investments at a spend of Rs.730 mn, by diluting 4.5% equity stake.
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Trent, the retailing unit of the Tata Group has recently announced a Rs.1.18 bn issue of preferentially convertible debentures to finance expansion. It has drawn up plans aggregating an investment of ~Rs.1.25 bn between FY06-FY08. Its plans involve the establishment of 16-18 new stores, upgrade of existing stores and strengthening of the warehouse infrastructure. These are just a couple of examples of Indian companies that have aggressive expansion plans over the next few years. Should foreign players be allowed to step-in? India has the potential to become a giant in food processing and textiles as its agricultural production is the lowest cost in the world, and textile labour is the cheapest internationally. Allowing FDI in retail trade, especially in groceries and garments marketing, provides the linkage effects of a modernised, globalised retail trade. Allowing foreign players into India would bring in better managerial practices and IT-friendly techniques to cut wastage and set up integrated supply chains to gradually replace the present disorganized and fragmented retail market. It is estimated that India wastes nearly Rs.50,000 crore in the food chain itself. These international retail outlets can help develop the food processing industry, which requires $28 bn of modern technology and infrastructure. Allowing entry of market-savvy and intelligent corporations like Wal-Mart, Tesco, Carrefour, J C Penny etc into the country would also help in generating demand for exports, which would in turn contribute towards the targeted GDP growth of 8 10% per year.
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OBJECTIVES OF THE STUDY PRIMARY OBJECTIVES: To identify whether the specialty retail stores are required in suburban areas South East Bangalore. To identify the customer attitude towards apparel shopping and the customer buying behavior. SECONDARY OBJECTIVES: To identify the real estate requirement for setting up such stores.
HYPOTHESIS Null Hypothesis: H0: The specialty retail stores are only good for the sub-urban areas. Alternative Hypothesis H1: The specialty retail stores are not good for the sub-urban areas. STASTICAL TOOLS The statistical tool used in this study for analysis is z-test, as the sample size is more than 30. RESEARCH DESIGN SAMPLING SAMPLING METHOD: The sampling method used for the research purpose is Stratified Random sampling which helped in defining the strata, then randomly selecting the sample. SAMPLE SIZE: The sample size taken for the study was 200, which includes Call center executives, fresh graduates, Middle and Senior level executives and housewives.
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RESEARCH METHOD: The tool used for the research was Interview method. TOOL: The tool used for the data collection was Questionnaire. A structured questionnaire was prepared and was administered personally. SOURCES OF DATA COLLECTION: PRIMARY DATA: The primary data will be collected on the basis of questionnaire. Firstly there will be a set of questions for the consumers in Bangalore for identifying their attitude. Secondly there will be a different set of questions for the people who stay in the semi-urban areas about their beliefs. Thirdly there will be a different set of question for the local marketers on the affect of these stores. Interview with the managers of these stores about what they feel about the market of these stores. SECONDARY DATA: Secondary data is collected from the business journals, research reports and Internet. SCOPE OF THE STUDY: The place covered for the study is only South East Bangalore, which includes areas like Whitefield, Kormangala, Marathalli, Bannerghatta Road, Electronic city, HSR Layout, Hosur etc. The survey is undertaken to know the buying behaviour only for clothing.
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ASSUMPTIONS: The annual income levels are assumed as Call Centre professionals and fresh graduates - Rs. 96,000 to 2,40,000 Middle and Senior level executives more than Rs. 2,40,000 Housewives No income, but from families with good income. LIMITATIONS OF THE STUDY: Strict boundaries were not followed in terms of data collection. Time given is very less.
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ANALYSIS Categories of respondents Call center executives and fresh graduates Middle and Senior level professionals Housewives 28% 46% 26%
The sample interviewed were from different fields like Call center executives, fresh graduates, Middle and Senior level professionals and housewives wherein 46% of the respondents were Middle and Senior level executives, 28% Call center executives and fresh graduates and 26% of Housewives. The concept behind this was to have a set of diverse people in the study living and working in South East Bangalore so that the result which is derived from the study can be more accurate.
CATEGORIES OF RESPONDENTS
24%
Middle and Senior Level Executives
48%
Call Center and Fresh Graduates Housewives
26%
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Frequency of shopping The frequency of shopping varies as per the categories of the sample. This is important for positioning of the product.
Frequency of Shopping
60% 50% 40% 30% 20% 10% 0%
52%
26% 22%
Once a week
Once in a month
Often
The analysis shows that around 52% people go shopping once in a week, whereas 26% of people go very often for shopping. The observation showed, Housewives usually go shopping twice in a week, whereas call center and fresh graduates do shopping once in a week usually weekends and Middle and Senior Executives go shopping once in fortnight.
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Preference of attributes while shopping The attributes like Price, Quality, brand and look & feel are considered while making a purchase decision, to know what is more important for the purchase.
ATTRIBUTES PREFERENCE 70% 60% 50% 40% 30% 20% 10% 0% Price Quality Brand Look and Feel 12% 10% 20% 58%
The data collected shows that 58% of the people consider price as an important attribute and while shopping the second is quality followed by brand, Where as the least preferred is design. Inference: The data collected showed that people are very price conscious. This is the first thing which the consumers look for when they go for shopping. Further, it was observed that Call Center professionals and fresh graduates prefer low price, whereas Senior Executives prefer quality and branded clothing for Housewives look and feel is more important.
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Preference of location for shopping To know the preference of location as people go for shopping to main city areas or nearby their work place or residents or any other specific areas. The concept behind this is to identify where do the people go out for shopping, whether they travel long distance and buy from city areas or they do it in their own areas.
Location for Shopping
11% 41% City areas Nearby areas Others 48%
As per the analysis, 48% of the respondents do their shopping in nearby areas, where as 41% of the people prefer shopping from city areas. Many people do not go to city areas for shopping so there is a wider scope for the lifestyle stores in such kind of areas. And they also look for good variety of clothes in their own area.
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Place of Shopping This question aims at finding out which store they prefer for shopping Factory outlets/exclusive showrooms, shopping malls or local shops.
Location for Shopping

50% 40% 30% 20% 12% 10% 0% Factory Outlets Shopping Malls Local shops 47% 41%
The analysis showed that 47% of people make their purchases from factory outlets/exclusive showrooms, whereas 41% of them from Shopping malls and 12% from local shops.
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Consumers visits to Specialty retail stores
At
this stage the respondents were screened to those who have visited and
those who have not visited a specialty retail store.
From the data we got 93 of the respondents had visited a specialty retail store
and 7 had not. The data is given below.
per centage of r espondents actual l y visited l if e styl e stor e

100 80 60 Series1 40 20 0 visited Not visited 7 93
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Striking features The question aims at the attributes that attracts the consumers to this stores, that is to find out the striking features of the stores Brands, Variety, Convenience or Price.
Striking Features
40% 35% 30% 25% 20% 15% 10% 5% 0% Brand Variety Convenience Price 7% 28% 35% 30%
From the analysis, it was found that variety and convenience are the most preferred attributes or striking features of the stores. From this we can infer that people are now looking for more and more variety, availability of brands and convenience when they visit any store.
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Price perception This question aims to find out what is the perception of the consumers regarding the pricing at these stores. It was to take their opinion about whether the products sold by them are expensive or reasonable.
Price perception
70% 70% 60% 50% 40% 30% 20% 10% 0% Very Expensive Expensive 3% Reasonable 27%
From the data collected it was found that 70% of the respondents are of the opinion that the products are very expensive. Whereas 27% of the people were of the opinion that the products are expensive and 3% said that the products are reasonable. The perception of the people is that these stores are very expensive. So the stores should position themselves in the mind of the consumers in such a way that these stores signify value for money, quality, provide excellent service and relationship marketing should be followed.
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Spending pattern: The idea is to find out how much do people spend on shopping of clothes in a month. Thus, the demand for such stores can be estimated.
Average spending per month
< 5000
62%
in Rs.
5000-10000
27%
> 10000
11%
0%
10%
20%
30%
40%
50%
60%
70%
From the data collected it was found that 62% of the people spend less than Rs. 5,000 per month and 38% of the people spend around Rs. 5,000-10,000 per month. From the analysis, its clear that the average spending is good enough for the stores to be profitable.
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Schemes and Offers The idea behind this question is to find out whether the schemes and offers drive the customers to the stores.
Schemes and Offers

13%
Yes
No
87%
The results show that maximum of people would be driven to the stores because of schemes, offers, discounts or sale and make the purchase decision.
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Influencers The idea behind this is to find out who are the influencers in the buying decision process as they also have an important role to play in the buying decision making process.
Influencers
60% 50% 40% 30% 20% 10% 0% Spouse Children Friends/Relatives 20% 27% 53%
From the data collected it was found that 53% of the respondents get influenced by their Children and spouse or friends/relatives play the secondary role. However, the friends score higher on influencing where the respondents were bachelors.
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Experience of the consumers
Through
this question we try to identify what are the experiences of the
customer at these stores. And what do they perceive about these stores. It helps us to find out their attitude towards these stores.
By
the data collected it was found that around 56% of the peoples
experience was satisfactory and 20% of the people were extremely satisfied and there were no dissatisfied customer.
Inference: by this we can say that people are really satisfied by these stores.
the variety in these stores and the services also play a very important role in adding to the experience and ensure a second visit or recommendations to other customers.
exper ience of consum s er

60 50 40 30 20 10 0 56
20
17 0 0 EXTREAMLY DISSATISFIED
Series1
VERY SATISFACTORY
SATISFACTORY
NETURAL
DISSATISFIED
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Do you think these stores can make you feel comfortable in sub-urban areas?
The concept behind this question is to see weather these stores are only
good in central city areas like highly crowded and commercial areas etc or they also do well in semi-urban areas.
From
the data collected it was found that 71% of the respondents said
that these stores can also do good business in sub-urban areas as these people will not be able to go for leisure shopping during the weekdays and most of the respondents do not prefer traveling as well as get into the busy & crowded traffic during the weekends, they feel its waste of time. Money and energy.
80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 29% 71%
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FINDINGS
The people go for shopping frequently in suburban areas, especially on weekends. There are only few people who do their shopping very often. The sample considered for the research is moving towards the new trends of the new age and ready to accept the quick changes in the retail segment. The sample is moreover looking for the comfort and an easy way to hangout as well as to shop. People have become more lifestyle oriented and brand conscious. Visiting and shopping in specialty retail stores has become a dignity and high class showoffs. Family oriented people would like to take their family for a long drive so that they feel comfortable and spent lot of time with the family. There is a segment which would like to shop during the weekdays as they do not prefer entering crowded city malls and lifestyles. According to the real estate boom and the residential areas coming up in these areas shows us a new ray of opportunity to these specialty retail stores. Word of mouth can spread faster in case of influencers being friends and relationship marketing plays a very important role in spreading the word of mouth as rightly said one satisfied customer gets ten customers
The respondents who have visited life style stores are really satisfied and had a good experience shopping there. The people really want these stores to come to sub-urban areas and here lies a great opportunity for these stores to come and set themselves in these areas. As per the hypothesis it is also proved that this concept will do well in suburban areas.
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CONCLUSION: Retail sector is growing full fledge against the hurdles like opposition from the left parties and some sections within the Congress party is fending off the move. The domestic trading community has also been lobbying aggressively against FDI on the argument that it would hurt self-employment and lead to closure of many small businesses. A study by the Associated Chambers of Commerce of Industry of India, New Delhi, concluded that this would not happen for at least the next ten years. Thereafter, the present fragmented system may get phased out or evolved into more integrated networked units. This is already happening without FDI. The government policy seems to be favourable with the Prime Minister Mr. Manmohan Singh indicating that the government is yet to hit upon the right policymix, but is certainly on its way to finding one soon. The policy for a measured opening of retail sector is very much on reforms agenda and officials expect the move to fructify before the PM's July visit to US. The entry of foreign players would play an important role in how the industry shapes up. While the current scenario certainly does not indicate the complete opening up of the sector to FDI, the longer the entry is delayed, the greater the increase in scale, resilience and competitive intensity of domestic retailers. This would provide an opportunity for domestic retailers, who are still at a nascent stage to firm their base. However, the extent would depend on how well these companies plan ahead and the support they receive from the equity markets and other institutional investors.
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`BIBLIOGRAPHY Marketing Research Donald S. Tull & Del I. Hawkins Way 2 Wealth Wealth Compass, June 2005 Issue Jones Lang LaSalle research reports www.joneslanglasalle.com
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QUESTIONNAIRE
1. Name __________________________________________ 2. Age _________
3. Occupation: Call Centre Professional / Fresh graduates Middle and Senior level executives Housewife Others please specify___________________ 4. How often do you go for shopping of clothes? Once in a month Once in a week Often
5. What do you look for, when you go to buy clothes and accessories? Please rank Price Quality Brand Look & Feel
6. Which areas do you prefer shopping your clothes? City areas Nearby areas of work / Resident Other places
7. Where do you go for shopping? Local shops Shopping malls Factory outlets/exclusive showrooms
8. Have you ever visited specialty retail stores ? Yes No 9. What really attracts you to these stores? Please rank Brands Variety Convenience Price
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10. What do you think about the price factor at these stores? Very expensive Expensive Reasonable
11. How much do you spend on shopping per month? Less than Rs. 5000 Rs. 5000 - 10000 more than Rs. 10000
12. Do you go for shopping because of schemes, discounts or offers? Yes No
13. Who really influences your buying decision, Rank them? Spouse Children Friends/Relatives
14. How was your experience at specialty retail stores? Very satisfactory Extremely dissatisfied 15. Do you think these stores can make you feel comfortable in sub-urban areas? Yes No satisfactory Natural Dissatisfied
Reason: _______________________________________________________
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A Project Report On Identifying The Opportunity For Apparel Retailing in South East Bangalore

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IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Workouts and Advisory: The Company also conducts complex, confidential

Sale/Leasebacks: The Company advises corporations on structuring and

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Financing Acquisitions and Sales Development Property Management Leasing

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

specific investment objectives of each of our clients.

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Private Investments in Real Estate Properties: The Company oversees the

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

major residential developments

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Consumer Marketing Tenant Representation Strategic Consulting

corporations and governments. Services include: Regeneration and master-planning

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Source: -Ron Hasty, James Reardon - Retail Management

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

Significant differences between brands

Complex buying behaviour

variety-seeking buying Behaviour

Few differences between brands

Dissonance-reducing buying behaviuor

habitual buying behaviour

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE

IDENTIFYING THE OPPORTUNITY FOR APPAREL RETAILING IN SOUTH EAST BANGALORE