Professional Documents
Culture Documents
PRODUCT SURVEY ON
CASUAL COTTON APPAREL
SUBMITTED BY:
Akash Thakore
Bharat Maheshwari
Dipa Shah
Girish Nair
Nikita Sanghvi
Prakash Prajapati
GROUP NO: 6
DATE OF SUBMISSION:
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ABSTRACT
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ACKNOWLEDGEMENT
We extend our warmest thank and appreciation to all people who have
assisted us in the preparation of this report.
First of all we would like to thank Mr. Karthik Mehta, Sales &
Marketing manager of ‘QIM Analysis’ for his valuable contribution,
involvement and advice throughout the report preparation. We are
thankful to him for sharing his skilful knowledge in the subject and
his assistance in developing this report.
We are also thankful to all the vendors, shop owners, staff of malls
and shops who has co operated with us and providing information that
make possible for us in the completion of our project report.
We would specially like to thank our faculty member, Dr. Himani
Joshi, Academic Co-ordinator for her guidelines, suggestions,
feedback & constant encouraging support from initial stage of market
survey to the presentation of the project report.
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TABLE OF CONTENTS
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EXECUTIVE SUMMARY
The Indian retailing industry, which was traditionally dominated by small and
family-run stores, has come of age. The retail sector is the second largest
employer after agriculture in the country and also the second largest untapped
market after China. There are some 12 million retail outlets in India.
Organized retailing is only 2%of the total retail industry
Over the past couple of years there have been sweeping changes in the general
retailing business, mainly in apparel retailing which was once strictly a made-
to-order market for clothing has changed to a ready-to-wear market. Flipping
through a catalogue, picking the color, size and type of clothing a person
wanted to purchase and then waiting to have it sewn and shipped was standard
practice.
At the turn of the century some retailers would have a storefront where people
could browse, and new pieces being sewn or customized in the back rooms.
Among the few players who have been catering to the branded market are Park
Avenue, Charagh Din, Liberty, Double Bull, Proline and Snowhite. It took a
quite long time for brands such as Allen Solly and Van Heusen to create a
respectable market share in the ready-to-wear market. Big players like Tata,
Raheja, Biyani, etc have intensified the competition with their professional
retail chains like Westside, Shopper’s Stop and Pantaloons. Recently, India is
increasingly being looked upon as a major supplier of high quality fashion
apparels and Indian apparels have come to be appreciated in major markets
internationally.
The following report covers various aspects of apparel retailing in Ahmedabad,
starting from global overview to future outlook of Indian casual cotton apparel
market. It also provides an in-depth study of current Indian apparel market
scenario, which includes manufacturing capabilities and exports market. The
report covers pricing techniques and sales promotion technique of different
apparel brand in organised sector & unorganised sector.
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OBJECTIVE OF THE STUDY
i) To compare pricing & product range across exclusive and multi brand
outlets.
ii) To explore rationale behind various sales promotion & market scheme
activities
INTRODUCTION
Cotton textiles count among the oldest industries in India. One can follow it
back to the times of Indus Valley Civilization, when cotton fabrics of India were
in great demand even in the countries of Europe and West Asia. It used to be a
cottage or village industry during those times. The spinning wheel comprised its
only machine- simple but exceedingly inventive. The modern textile industry in
India first began at Fort Gloster near Calcutta in early 19th century. But it
actually made a headstart in Mumbai, when a cotton textile mill was set up
there- exclusively out of Indian funds, in 1854.
There are several worth remarking features of the Indian textile industry. It is
based on indigenous raw materials, especially cotton. In 1995-96, the textile
industry had provided employment to over 64 million persons, next only to
agriculture. Thus it is exceedingly meaningful for a country like India, because
it is a labour-intensive industry. It alone accounts for 4% of the gross domestic
product. More prominently, it is responsible for 20% of the manufacturing value
addition. Lately, it has been bringing home one-third of India`s total export
earnings. In 1996-97 the country had earned virtually 12 billion U.S. dollars.
The industry provides livelihood to farmers, cotton ball pluckers, and workers
engaged in ginning, spinning, weaving, dying, designing and packaging, not
leaving sewing and tailoring. It is India`s most traditional and esteemed
industry. More importantly, the industry strikes a sensible balance between
tradition and modernity. While the spinning occupation is rather centralised,
weaving is exceedingly decentralised, providing scope for traditional skills of
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craftsmen in cotton, silk, zari, embroidery and so on. The hand spun and hand
woven khadi holds back the ancient tradition of providing large scale
employment in one`s home and cottages. Textile industry in India has all along
prospered on its own funds. On the other hand, the country possesses the most
contemporary capital intensive and high speed mill-produced cloth with a huge
market- both at home and abroad.
The United States and Bangladesh are the largest buyers of Indian cotton
textiles and their share touches close to over 10% of the total exports. The South
Asian countries continue to be the most important destination for exports in
cotton textiles. The number of man made fibre textile mills is on the rise and
this has led to the expansion of the spinning sector. Around forty percent of the
spindles installed worldwide are installed in India. This development led to a
sharp leap in cotton yarn exports.
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CLASSIFICATION OF APPAREL MARKET
• Women' wear: salwar suit, kurtis, skirts, pyjamas, t-shirts, shirts, trousers,
shorts
• Kids wear
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in spreading fashion needs to be understood. Seasonal variations on stocking
pattern and need to clear inventory at the end of season should be
understood by apparel retailer. Typically once an item is sold from the
outlet, retailer ensures that there is no repetition of same. It gets replaced by
different design, style, colour. Importance of store layout, décor is very
critical. A browser visiting the store frequently likes to see changes in the
layout otherwise he may carry the impression that stocks are not moving out
of the store. Category management becomes very crucial function as
transformation of design into production and delivery has to be completed
before fashion or fad changes in the market.
UNORGANIZED SECTORS,
It includes:
• Retail shops
• Handicraft harts
Unorganized sectors is the backbone of the organized sectors. They are also
contributing in the economy at a greater extent. 70% of the cotton apparel
market is unorganized. It is greatly contributing to economy also.
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EVOLUTION OF THE SECTOR
Source of entertainment
Rural and historic reach
Convenience stores
Neighborhood stores/convenience
Government supported
Availability/low costs/distribution
Supermarkets
Hypermarkets
Department Stores
Specialty Chains
Company Owned Company Operated
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Traditional Format Retailers
Street Markets
Exclusive /Multiple Brand Outlets
ORGANISED SECTOR
• Arrow • Dockers
• Van Heusen • Peter England
• Color Plus • John Players
• Park Avenue • Thomas Scott
• Parx • Gotti
• Connexions • Manzoni
• Stanza • Wills Lifestyle
• Allen Solly • Black Berry
• Raymond • Lee
• Reid And Taylor • United Colors of
• Fabindia Benetton
• Wrangler • Levi’s
• Biba • Pepe
• Rimanika • Gas
• Satyapaul • Tommy Hilfiger
• & many more... • Woodland
• Killer
• Espirit
• Plus
• Status Quo
• & many more.
• Shoppers stop
• Westside
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• Pantaloon
• Lifestyle
• Wills lifestyle
• Globus
• Pyramid
Cotton
Composite
(Farms)
SUPPLY CHAIN MANAGEMENT
Mills
(spinning,
weaving,pr
ocessing)
ginning Stand-
Alone
Weaving(m
Cloth
id-size) Garments&
Processing/
Accesories
Ginning Finishing
Jute/Wool/S Yarn Con
ilk e
Cloth
Powerlooms
(farms) (small)
Hank Distribution
Channel
Grey
(Export &
Man- Domestic
Made:Filame Other Markets)
nt Extrusion Handlooms Textile
Process Spinning Products
Knitting
(Petrochem
ical Plants)
The retail scenario is characterized by logistical challenges,
constant changes in consumer preferences and evolution of
new retail formats. All this increases the challenges faced by
the industry. Various strategies are to be implemented to
improve core business processes, such as logistics, innovation,
transparency, distribution and inventory, management of point
sale (POS) data. Retail majors are under serious pressure to
improve their supply chain systems and distribution channels
and reach the levels of quality and service desired by the
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consumers.
METHODOLOGY
SAMPLE UNIT:
For organised sector: Brand Retail outlet
For unorganized sector: roadside vendors,
local brand retail outlets, handicraft market
AREAS COVERED:
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For organised sector: retail outlets at S.G.
Highway, Satellite & Judge’s Bunglow
Road
For unorganised sector: retail outlets at
C.G.road & S.P. Stadium Road,
Roadside vendors at Law Garden area,
Gujarat University & Nehrunagar
CHARACTERISTICS
MARKET SEGMENTATION
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MARKET SHARE
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PRICE MECHANISM
i. ORGANISED SECTOR
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a) Setting the price
The assortment drivers for price in apparel are size, style &
colour.
A. For launching a product in already established market, the
retailer has to select the segment of the population to serve &
then follow price trend of that market.
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b) Price variation
The variation in the costs of all brands for the same style of
male shirt or male trouser is on the basis of their target
customer segment.
e.g. Ratanam & Color plus are the retail outlets of the same
company Arvind Mills. They sell same size, same style &
same quality shirt at Rs.500 in Ratanam & at Rs. 1500 in
Color Plus. It is because both the outlets have been launched to
provide service to different market segments.
c) Margins
The apparel industry always keeps the profit margin of 50% on
each category of product.
The annual business plan of a brand apparel company for the
particular year depends upon the last year’s profit & adds 10%
to it in the present year.
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ii. UNORGANISED SECTOR
b) Price variation
Handicraft
Local Retail outlet Roadside vendors
Apparel market price
price (Rs.) Price (Rs.)
(Rs.)
Kurti 250-800 150-350 125-300
Salwar suit 400-3000 300-2000 200-900
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The handicraft market directly purchase apparel from
manufacturers so the additional cost of other intermediaries is
reduced.
c) Margins
For the retail outlets their profit margin varies from 30% to
500% depends upon area of the market.
d) Risk
INFERENCE
It has been noticed in the study that there is a huge difference
in price range of apparels brand outlets & exclusive local retail
outlets. It can vary from Rs. 350 to Rs. 2500 for a same quality
& style shirt. The organised sector prices are of high range
because of the customer service they provide & the popularity
of the brand name. The popular the brand name, the higher
would be the price.
Whereas in unorganised the prices varies according to market
demand & geographical behaviour.
i. ORGANISED SECTOR
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Usage of sales promotion activities has a direct impact on
behaviour as it motivates a consumer to buy now rather than in
future, enhances value of an offer temporarily till the
promotion period, encourages switching, reinforce or reward
loyalty etc. Broadly, objectives set for these activities are;
INFERENCE
The objective of sales promotion is different for both
organised sector & unorganised sector.
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In organised sector it is done for reducing the inventory pile up
& this is mainly done through end of season sale. The time
period for this promotional activities is generally set the head
offices of the outlets.
KHADI
FABINDIA
PRODUCT BUNDLING
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The retailers do not lose any profit margin from their annual
business plan. Whenever they decide to markdown the prices
they initially deal with the respective manufacturer of the
product.
E.g. If the retailer has decided to give 10% off on the sweaters
he will ask the manufacturer to divide this markdown equally
between them. So the retailer & the manufacturer both will
lose 5% from their profit margins. But the former cover up this
lose from the consumer basket & the latter incur loses.
1. STRENGTH
II. Labour
III. Flexibility
V. Domestic market
2. WEAKNESS
I. Spinning Sector
High power costs and long export lead times are eroding
India’s export competitiveness across the textile chain.
OTHER WEAKNESSSES
3. OPPORTUNITIES
I. Growing Industry
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II. Market access through bilateral negotiation
4. THREATS
CONCLUSION
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evolution are the smaller players, which private labels that are
thoroughly transforming the dressing way of men, women and
children. With the supply chain limitations eased, organization
in real estate markets, and rationale tax structure, the
readymade garment segment has become more
lucrative and it is anticipated that the readymade garment
segment will be the main segment in the next five years.
REFERENCE
www.fibre2fashion.com
www.allbusiness.com
www.in.kpmg.com
www. naukrihub.com
www. gurjari.com
www.iimahd.ernet.in
• brand outlets at Iscon Mall, S.G.Road-
Tommy Hilfiger
Lee
Raymonds’
Levis
Pepe
• Fabindia At Judge’s Bunglow Road
• Brand Outlets At C.G.Road-
Kewal Sons
My My
Navkala
John Players
Megamart
Bigenzer
• Outlets At S.P. Stadium
Pintoo
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Femina Town
Anjali Dress Wala
Q N Q Full Stop Dress Stop
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