Apparel Retail in India

Retail in India
Life Style and Apparel Retail
Presented by:
Anuranjan
08/25/09 YMT's College Of Management 1

World Retail Scene
 global retail sales to cross US$13 trillion!

Share of organized retail in selected countries

Spread of Modern Retailing in developing countries
Late comers in Modern Retail

Diffusion
 Restriction on FDI
 Demand side features
 Income
 Middle Class
 Urbanization
08/25/09
Share of women inYMT's
work force
College Of Management 4
Future Trends
 Retail Business will slowdown in

developed countries
 Population in age group 50-70 will

explode
 Modest population growth in 20-35

age group
 Decline in 35-50 age group
 Plenty of workforce and consumers

in developing countries
Indian Retail
 The growth of Indian retail is associated with the
growth in the Indian economy

Growth in Indian Retail (Total)

Growth in organized retail (in Bn)
2003 2004-05 2005-06 2006-07 CAGR

-04 2004-07
Total 350 408 479 598 19.5

organized
retail
Share in 3.3 3.6 4.0 4.1

total retail

Indian retail: share of categories (%)

Share of organized sector in total retail by category
(%)

Organized retail expansion by format

Apparel Retail in India
 Market Definition
Menswear
Womenswear
Infants wear

Market Analysis

Market Segmentation

Market Forecast

Apparel retail format

Adidas
• Came to India in 1996, Established by Adi Dassler
• Adidas today has a total of 96 exclusive stores
across the country.
• The price range starts from Rs. 120 for a pair of

socks to Rs. 12,500 for our iconic product the adidas
• Our core audience comprises of young Indians aged

14 to 24 years with 17 year olds at the epic centre.
• Positioned as a sports performance brand. We have

fashionable products.
•
Adidas
• Adidas branding of 3 Stripes in various colors such
as Black, Light Scarlet and white.
• Feel range uses muted-bright seasonal color trends

such as Blaze red, Mélange, Black and Chrome and
focuses on sensory appeal in fabrics and washing.
• Brand ambassadors like Sachin Tendulkar, Sania

Mirza, Zaheer Khan and many others,

Adidas

Adidas
• Clarity of thought : The window display
focuses on the women wear and accessories
specially for the sports.
• Creativity : The tagline being used is quite

motivating for the women of this era and
would assure her that anything is possible
for. Also, the color used in the background is
blue signifying the cool and sporty look.

Adidas
• Effectiveness : The display of upside
down women signifies the freedom and
independency of women and thus is
very much effective which motivates
them to walk in the store.
• Why did it work : It forces female

customers to ponder what all does the
store holds for them.
PANTALOONS
India’s leading retailer operating in value and
Lifestyle segment of the Indian consumer
Market
 Headquartered at Mumbai
 Company operates over 7 million square feet

Of retail space,1000 stores across 51 cities in
India and employees over 25000 people
 A flag ship company of future group

ACHIEVEMENTS
 “INTERNATIONAL RETAILER OF THE YEAR
2007” By U.S based National Retail Federation
 “EMERGING MARKET RETAILER” of the year
2007 at world retail congress held at Barcelona.
 The Reid & Taylor Awards For Retail Excellence
2008
 Coca-Cola Golden Spoon Awards 2008
 Most admired Retail Company of the year:

Pantaloon Retail (India) Ltd
FUTURE GROUP
 VISION:
“To deliver everything, everywhere, every time to
every Indian consumer in the most profitable
manner”
 MISSION:
“Indianess as a core value”
 CORPORATE CREDO:
“Rewrite rules, retain value”

COMPETITORS FOR PANTALOONS
• As retail is a growing sector there are many

market players in the field. To name a few:
Shopper stop, Vishal Mega mart, Westside,
Wills Lifestyle an ITC brand, etc.

Pantaloons

Pantaloons
• Clarity of thought : The window display
clearly shows that the sale season is going
on for the apparels and accessories offered
by the store.
• Creativity : The red color is used to indicate

sale period which can be discovered from a
far distance. Red color is physically and
psychologically attached to the customers
and portray excitement.

Pantaloons
• Effectiveness : A customer interested would
surely walk-in to avail the discounts as the
display is shouting out for the sale season.
• Why did it work : The entire display used the

red color tints and shades indicating sales
period & also providing an opportunity to
avail extra reduction.

SHOPPER’S STOP LIMITED
VISION
“To be a global retailer in India and

maintain its no. 1 position in the Indian
market in the department store category.”

SHOPPER’S STOP- PRODUCT LINE
• Shopper's Stop Ltd. with its ear-to-the-

ground approach first defines consumer
expectations and then meets them. Home
stop is a step in this direction.
• Shopper's Stop Ltd. operates Mother care

stores in India under franchise from Mother
care PLC, UK.

Brands

SHOPPER’S STOP
• The stores offer a complete range of
apparel and lifestyle accessories for
the entire family. From apparel brands
like Provogue, Color Plus, Arrow,
Levi’s, Scullers, Zodiac to cosmetic
brands like Lakme, Chambor, Le Teint
Ricci etc., to accessories like Cross,
Ray-Ban, ferrari,police watches…etc

SHOPPER’S STOP LIMITED
 Shopper's Stop First Citizen
 Reward Points for every time you shop at
Shopper's Stop.
 Exclusive benefits & privileges.
 Exclusive cash counters at Shopper's Stop so you
can spend more time shopping than waiting in a
line.
 Also the Rs 303 crore-turnover retail group,
Shoppers' Stop's experimentation with a festival
during its off-season period has paid it
dividends.
 Extension of operations online and to other
cities.
Shopper’s Stop

Shoppers Stop
• Clarity of thought : It is very much clear from
the display that the store is selling casual
party wear apparels for youth.
• Creativity : The display gives the party like

feel with the use of dark colors and props
like party hanging balls. The window glass
has a sticker signifying music which tells
about enjoyment and excitement.

Shopper’s Stop
• Effectiveness : The display is effective as it
attracts the youth to walk-in and buy the
merchandise for parties or even for casual.
• Why did it work : The display is very

attractive & would serve the purpose for
people who want to look trendy but in a
funky way.

• Wills Sport relaxed wear for men and women.
• Launched Wills Classic formal wear (2002) and
Wills Club life evening wear (2003).
• Introduced John Players, in 2002.
• In 2006, Wills Lifestyle became title partner of
the country's most premier fashion event - Wills
Lifestyle India Fashion Week
• Will open 50 more exclusive outlets, thus
establishing its presence in 40 Indian cities

Achievements & Awards
Retailer of the Year Award at Asia Retail Congress 2008.
Top 5 Luxury brands in the country in a Global Luxury

Survey conducted by TIME Magazine
2004: Rising Star Brand of the Year - John Players
2003: Most Admired Exclusive Brand Retail Chain of the Year

- Wills Lifestyle
2002 : Most Admired Women's Wear Brand of the Year -

Wills Sport
2001 :The Most Admired Exclusive Brand Retail Chain of the

Year - Wills Lifestyle.
Wills Lifestyle chain of exclusive specialty stores.
Wills Lifestyle, the fashion destination, offers a
tempting choice of Wills Classic work wear, Wills Sport
relaxed wear, Wills Clublife evening wear.
fashion accessories and Essenza Di Wills – an

exclusive range of fine fragrances and bath & body
care products for men and women. Wills Lifestyle has
also introduced Wills Signature designer wear,
designed by the leading designers of the country.
Wills Lifestyle has been established as a chain of

exclusive specialty stores providing the Indian
consumer a truly 'International Shopping Experience'
• Clarity of thought : The display is very clear
& tells that the main merchandise on display
are apparels and accessories for teenagers &
women.
• Creativity : The entire display gives a very

homely touch & is very attractive being for
the season.

• Effectiveness : The colors being used are
bright colors like blue and red signifying
cool, excited, stimulated and powerful
environment.
• Why did it work : The display gives an

aesthetic touch and a homely environment.
The display gives a feeling to the customer
that they can also avail the same comfort and
calmness by acquiring these merchandises.
• The company, founded in 1853 by a Bavarian migrant,
• Levi Strauss markets apparel in more than 60

countries, 53 production facilities and 32 customer
service centers in 49 countries.
• Levi Strauss, is planning to open 1050 stores across

India in the next three years.
• The company plans to have exclusive Levi's stores in

100 towns and Docker's stores in 500. It will also have
exclusive signature stores in 1000 towns.
• Levi Strauss has 30% share of the premium segment
of the denim market and 10% of the overall market
across price segments in the country.
• planning to launch a sub-category of denim by

winter to add to its stable comprising of sub-brands
like Sykes, 501, Red Tab and Red Loop.
• Redwire Jeans are priced at Rs 9,000 and are

available for both men and women.

• Competitors
Lee, Blackberry, Pepe Jeans, Wrangler,
Provogue, Pantaloons, Diesel,
Woodland, Reebok,
Strategy
• "We aim to open a store each day in the
next three years."

• Clarity of Thought: The product being offered
here is apparels as well as shoes for men
and women.
• Creativity: One of the mannequins has been

placed upside down that too only the lower
part of body to give it a very funky look,
which would appeal to the younger
generation. While the other mannequins are
placed in a way to give a social look with a
flex being used in the background.

• Effectiveness : The display is done to give a
very relaxed feeling which would indicate
that the clothes are very comfortable and can
be wore anytime throughout the day.
• Why did it work : The display is successful in

increasing walk-ins as well as conversions
as it is visible from outside the store and
appeals to the younger generation and gives
a very chilled out attitude for them.
48
08/25/09 YMT's College Of Management
1. Pantaloon Retail (India) Limited –The Future
Group

Group
–Business Strategy
• Targeting greater market share by entering into formats such

as departmental stores, supermarket, hypermarkets, malls etc.
• Developed a Dual Strategy
• –Of opening smaller versions in its flagship stores like ‘BIG
BAZAAR’
• –Opening larger Independent Stores.

Group
• Currently adopted retail format by the group:
–Lifestyle Segment-
• »Pantaloon
• »Central
–Value Segment
• »Big Bazaar
• »Food Bazaar

Group
• –Private Labels
•Pantaloon’s apparel retail business derives its 75 per
cent of sales from its private label
such as:
• John Miller shirts JM Sports
• Lombard Pantaloon
• Bare Leisure Bare Denim
• Annabelle Mix Match
• Akkriti
Group
–Major Strategic Alliances
• PRIL has entered into 50:50 JV with Ginni & Jonny–known

brand for kids
• Sole Franchisee of Mark& Spencer, Guess and Women’s
Secret in India
• PRIL holds a 51 per cent stake in JV with Liberty Shoes
called ‘Foot Mart’
• runs stores under the name of ‘Shoe Factory’
• located in shopping malls and also opened as independent
stores
• Pantaloon Retail

2. Shopper’s Stop

2. Shopper’s Stop
–Business strategy
• –Primarily catering to the Lifestyle Retailing segment through
Departmental Stores
-Offers a gamut of products –apparels, accessories, footwear,
cosmetics, music, books, leather products, furnishing etc.
• Ventured to the Value Retailing segment with inception of

‘HYPERCITY’
• Apart from these stores, the company also has presence in

Niche Retailing format.

2. Shopper’s Stop
-With the brands such as:
• Crossword–a lifestyle bookstore; these are run in 3 formats
–‘Corner Store’, ‘Brand Stores’ and ‘Flagship Stores’.
• MAC –it’s a tie-up with a cosmetic major, Estee Lauder.
• Home Stop –it’s a specialty store, caters exclusively to home

furnishings and furniture.
• Mother Care -it’s a franchise agreement with a UK-based

Mother care marketing baby clothes, toys, baby care products
and maternity clothes.

2. Shopper’s Stop
Future Expansion Plans
• The company plans to form a JV with AGROS of UK to start

Catalogue Retailing Business in India
• Plans to diversify into airport retailing, for which also signed

an MOU with the Nuance Group of Switzerland

3. Globus Stores Pvt ltd
• The company started as a departmental store, but gradually
shifted its focus to the apparels and private labels.
• »has an in-house team of designers and merchandisers

responsible for quality
• »Actual production activity is outsourced
• The company is mainly targeting smaller cities like Vadodara,

Muradabad, Jamshedpur Ranchi, Udaipur Bhopal, Ludhiana

3. Globus Stores Pvt ltd
• The group is planning to set up 100 stores by 2008 across the

country
–Up-coming stores are to set up in Varanasi, Hyderabad and

Noida
–Financial information of Globus Stores Pvt Ltd is not available

as the company is a privately held company.

4. Provogue (India) Pvt Ltd

4. Provogue (India) Pvt Ltd
•Retail Formats followed by the company:–
‘Provogue Mega Studios’–stores a wide range of merchandise
–The company operates through its stores
–‘Provogue Studio’
»These are stores that are managed directly by the company or
through contracts
»Located mainly in malls
–Have allocated space in other departmental stores on a shop-in-
shop basis

5. The Raymond Group

The Raymond Retail Shops are premium retail stores offering

complete range of men’s wardrobe.
• –the largest one stop retail network in the country.
• –There are over 350 stores exclusive 'The Raymond Shop'

(TRS) in prime locations, in 150 cities in India.
• –27 overseas outlets in 15 cities across the Middle East, Sri

Lanka, Bangladesh and Nepal.
• –Includes top-of-the-line brands -Raymond, Manzoni, Park
Avenue, ColourPlus and Parx.

• Reach of the brand is spread all over the country across big
cities and smaller towns thereby targeting a wide spectrum of
consumers.
• –Also extended its presence in some of the leading Malls with

new retail format.

Brand Stores
• –exclusive stand-alone stores for brands -Manzoni, Park
Avenue, Parx, ColorPlus, Be: and Zapp!
• –Each store makes available to customers the entire product
range of garments and accessories.
• –The highlight of these stores is that they provide customers a

unique and leisurely shopping experience
• –Encompassing a look to suit every new occasion –formal,
casual, outdoor and travel etc.

6. Wills Lifestyle -ITC's Lifestyle Retailing
Business Division

Business Division
Strategy:
• With its brands, ITC aspires to build a dominant presence in
the apparel market through a robust portfolio of offerings.
• Wills Lifestyle has been established as a chain of exclusive

specialty stores providing the consumer a truly 'International
Shopping Experience' through world-class ambience,
customer facilitation and clearly differentiated product
presentation.

Business Division
• To enhance product availability through expansion of “Wills

Lifestyle” chain of exclusive stores in high potential
catchment malls. The brand is now available in over 150
locations through ‘exclusive brand outlets’ (EBOs) and ‘shop-
in-shops’.

7. Murjani Group

7. Murjani Group
Strategy:
• The India strategy for Murjani, revolves around the creation
of a unique Multi-Brand Retail Platform, with world
renowned, premier international brands.
• In the second phase of its India strategy, in 2005, Murjani
identified several major international brands, to add to its
brand portfolio and secured exclusive, long term rights to
India, for 6 world renowned, premier brands: Gucci, Jimmy
Choo, Calvin Klein, French Connection, Tumi & Build A
Bear.

 Divided into two segments - Value retailing, which is typically
 Low margin-high volume business and
 High margin-low volume business

• one of the most important sectors
of the economy in terms of
investment, revenue, trade and
employment generation Category Sales $ Market
Billion Share (%)
• short product life cycles, Brick and 169.256 92.9
tremendous product variety, Mortar
volatile and unpredictable
demand, long and inflexible supply
processes. Catalog 7.177 3.9
• Finished clothing products made

from both natural and manmade Online/ 5.873 3.2
fibers like cotton, silk, wool, lenin, Internet
polyester, rayon etc.
• sold through three major channels

Major Manufacturers and their Market Share

Global Trade Volume and Trends
Region % Share
• The global apparel industry’s total Asia Pacific 35.40%

revenue in 2006 was US $ 1,
252.8 billion, which was
approximately 68% of the overall Europe 29.40%
industry value.
USA 22.30%
Rest of the 12.90%

world

Country US $ Billion
China 8,260.921
• China had captured 65% of the Hong Kong 1,723.210
global market share towards Italy 1,353.586
the end of 2006 in total apparel
exports
Malaysia 1,255.069
Germany 669.130
Pakistan 618.830
Thailand 597.758
USA 595.171
India 522.463

Challenges
 The Apparel retail Industry is growing at a very high rate
but still there are some barriers, which are hindering the
growth of this industry. Some of them are:
 The production rate is still not able to match with ever rising demand.
 Do not have enough resources and manpower to explore them.
 Competition has increased.
 As apparel industry is fashion driven, and fashion keeps changing. Thus

they usually have to work under pressure.
 Availability of products within the time. i.e SCM in apparel sector

Internal External
• Retaining qualified manpower • High real estate cost
• Implementing SOP’s & best • Anarchic laws

practices
• Shortage of qualified manpower
• Focus on improving operational
efficiency • Unorganized & poor supply chain
• Cost control
• CRM & Service levels

Opportunities
• Before liberalization
–Many brands were not available
–Government disallowed imports of most products
–Luxury items banned/had high import tariffs
• Post liberalization
–Enhanced availability of branded and superior products at
affordable prices
• Two incidental factors

–Spread of cable and satellite television influencing consumer
behavior
—Emergence of brand-first foreign product available at
affordable price
• 4th largest economy in the world, in terms of Purchasing Power Parity
• Growth primarily from Services Sector, currently accounting for 59% of the
Economy
• India is a part of the “golden triangle” countries (others being China & Russia)
that are high on target list of premium & luxury brands
• A Growing Economy
2nd fastest growing economy in the world
Rated among the most favourite investment destinations

• One-stop shopping, speed and efficiency of purchases
• Consumerist attitude
–Guilt-free spending
–Savings not very high priority
–Spending money for look-good
-Shift of expense basket from basics to
lifestyle products
-Increased spend on Apparel, personal
care
• Consumer
- High disposable income
-Changing consumer preferences
-28 states, 100+ religion, 250+ festivals
Resurgent India…
• Over 70% population below 35 years, while 50% is below 25.
• Increasing purchasing power.
• Shift of population from rural to urban.
• Shift of consumer towards brands.
• Over 60 mn households have access to Cable TV

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Retail in India

Life Style and Apparel Retail

08/25/09 YMT's College Of Management 1

 global retail sales to cross US$13 trillion!

08/25/09 YMT's College Of Management 2

08/25/09 YMT's College Of Management 3

Late comers in Modern Retail

 Demand side features

 Retail Business will slowdown in

 Population in age group 50-70 will

 Modest population growth in 20-35

 Decline in 35-50 age group

 Plenty of workforce and consumers

08/25/09 YMT's College Of Management 6

08/25/09 YMT's College Of Management 7

2003 2004-05 2005-06 2006-07 CAGR

Total 350 408 479 598 19.5

Share in 3.3 3.6 4.0 4.1

08/25/09 YMT's College Of Management 8

08/25/09 YMT's College Of Management 9

08/25/09 YMT's College Of Management 10

08/25/09 YMT's College Of Management 11

08/25/09 YMT's College Of Management 12

08/25/09 YMT's College Of Management 13

08/25/09 YMT's College Of Management 14

08/25/09 YMT's College Of Management 15

08/25/09 YMT's College Of Management 16

• The price range starts from Rs. 120 for a pair of

• Our core audience comprises of young Indians aged

• Positioned as a sports performance brand. We have

• Feel range uses muted-bright seasonal color trends

• Brand ambassadors like Sachin Tendulkar, Sania

08/25/09 YMT's College Of Management 18

08/25/09 YMT's College Of Management 19

• Creativity : The tagline being used is quite

08/25/09 YMT's College Of Management 20

• Why did it work : It forces female

 Company operates over 7 million square feet

 A flag ship company of future group

08/25/09 YMT's College Of Management 22

 Most admired Retail Company of the year:

08/25/09 YMT's College Of Management 24

• As retail is a growing sector there are many

08/25/09 YMT's College Of Management 25

08/25/09 YMT's College Of Management 26

• Creativity : The red color is used to indicate

08/25/09 YMT's College Of Management 27

• Why did it work : The entire display used the

08/25/09 YMT's College Of Management 28

“To be a global retailer in India and

08/25/09 YMT's College Of Management 29

• Shopper's Stop Ltd. with its ear-to-the-

• Shopper's Stop Ltd. operates Mother care

08/25/09 YMT's College Of Management 30

08/25/09 YMT's College Of Management 31

08/25/09 YMT's College Of Management 32

08/25/09 YMT's College Of Management 34

• Creativity : The display gives the party like

08/25/09 YMT's College Of Management 35

• Why did it work : The display is very

08/25/09 YMT's College Of Management 36

08/25/09 YMT's College Of Management 37

Top 5 Luxury brands in the country in a Global Luxury