Chapter – 1

1. Introduction
1.1 Introduction to the industry
Apparel industry is one of the most important sectors of the economy with regard to
investment ,revenue ,trade and employment generation all over the world. The
significance of the apparel industry is entirely based on the contribution of the industrial
productivity and employment. Apparel sector contributes to the country's GDP after
agriculture and thus plays a major role in its augmentation. The apparel industry covers
all those companies that are largely engaged in producing various types of garments .
The clothing that is manufactured includes kid's clothing, men's clothing and women's
clothing. The apparel industry in India has been substantially diversified on the basis of
fashion , climate , region, culture and fiscal factors.

Indian textile is witnessing great growth and development in the industrial sector
in India as well as abroad .Over the past 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 which has now changed to a 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 with their
private labels. Recently, India is increasingly being looked upon as a major supplier of
high quality fashion apparels. Besides this , Indian apparels have been appreciated in
major markets internationally.

The apparel market includes men’s wear, women’s wear and kid’s wear. Among
these the men’s apparel market is 46 percent of the total apparel market in India. This
is due to increasing preference for ready made garments and this has become
inevitable with the rise in urbanization .On the other hand ,women’s apparel market
covers17 percent of the total apparel market in India and is increasing constantly owing
to the changes in the dressing habits among the working women.

Also the cross nation movement and employment in MNCs has resulted in
increased preference for the branded Western and Indo-western apparels among the
working as well as younger women. Kids’ apparel market is 37percent of the total
apparel market but the brand penetration in this segment is lowest at 9 percent
exhibiting a lot of potential for the branded players to exploit this segment.

The apparel market was thrown open to competition in the year 2005 , due to
expiry of Multi Fibre Agreement under GATT . After China , India has been perceived
as the next country with the biggest 'Growth Potential' due to its cheap manpower and
natural resources in this era of globalised market . Industrialized countries like Korea
,Taiwan , etc. Moved into other industries-and partly because the Indian Government
 support to grow the apparel export business, since it is a major earner of foreign
exchange.

India has also emerged as one of the most attractive market destinations for
apparel retailers over the years. In India, apparel is the second largest retail category
having yearly growth rate of 12-15% and is expected to lead the organized retail sector
in India in upcoming years.

1.2 Introduction to the Group

ABOUT ADITYA BIRLA GROUP

A US $41 billion (Rs.2.50000 cr.) corporation, the Aditya Birla Group is in the League
of Fortune 500. Anchored by an extraordinary force of over 120,000 employees,
belonging to 42 nationalities. Over 50 per cent of its revenues flow from its overseas
operations spanning 36 countries.

The Aditya Birla Group has been ranked fourth in the world and first in Asia Pacific in the
‘Top Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune Magazine
and RBL (a strategic HR and leadership Advisory firm). The Group has topped the
Nielsen's Corporate Image Monitor 2014-15 and emerged as the Number one corporate,
the 'Best in Class', for the third consecutive year.

Globally, the Aditya Birla Group is:

 A metals powerhouse, among the world's most cost-efficient aluminium and

copper producers. Hindalco-Novelis is the largest aluminium rolling company. It
is one of the three biggest producers of primary aluminium in Asia, with the
largest single location copper smelter.

 No.1 in viscose staple fibber.

 No.1 in carbon black.

 The fourth-largest producer of insulators.

 The fifth-largest producer of acrylic fibber.

 Among the top 5 cement producers globally.

 Among the best energy-efficient fertilizer plants.

 The largest Indian MNC with manufacturing operations in the USA, wherein 95
per cent of the workforce comprises of Americans.
Aditya Birla Group – The Indian Scenario

 A top fashion (branded apparel) and lifestyle player

 The second-largest player in viscose filament yarn

 Among the top three mobile telephony companies

 A leading player in life insurance and asset management

 Among the top two supermarket chains in the retail business

Aditya Birla Group – Beyond Business

 Reaches out annually to 7.5 million people through the Aditya Birla Centre for
Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree
Birla.

 Works in 5,000 villages globally.

 Focuses on: health-care, education, the girl child, sustainable livelihood, women
empowerment projects, infrastructure and espousing social reform.

 Runs 42 schools which provide quality education to 45,000 children. Of

these 18,000 students belong to the underprivileged segment. Merit
Scholarships are given to 24,000 children from the interiors.

 Its 18 hospitals tend to more than a million villagers

 Ongoing education, healthcare and sustainable livelihood projects in
Philippines, Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of
people out of poverty.

 Set up the Aditya Birla India Centre at the London Business School.

 The Aditya Birla Group transcends conventional barriers of business because

we care. We believe it is our duty to facilitate inclusive growth as well.
1.3 Introduction to the company

Pantaloons Fashion & Retail Limited is an Indian premium clothing retail chain. The
first Pantaloons store was launched in Gariahat, Kolkata in 1997. As of September
2016, there are 152 Pantaloons stores in 80 cities. A pantaloon was previously
controlled by the Future Group, but has now been taken over by Aditya Birla Group.

Post-acquisition by Aditya Birla Nuivo Limited in 2013, Pantaloons is today the fastest
growing large format retailer in the country. The rate of new store openings has
increased from one every two months to one every two weeks. The brand is now
present in 80 Indian cities / towns.

Post the consolidation, PFRL was renamed Aditya Birla Fashion and Retail Ltd

With a chain of 152 fashion stores across 80 cities and towns, Pantaloons is
constantly extending its footprint into the rest of modern India. It spans a retail space
of 1.7 million square feet which is amongst the largest in India.

Voted as 'India's Most Trusted Apparel Retail Brand,' (Brand Equity Survey
2014/2015), Pantaloons, a division of ABFRL has always been one of the most loved
large format fashion retailers in India.
Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the consolidation of the
branded apparel businesses of Aditya Birla Group comprising ABNL'S Madura Fashion
division and ABNL's subsidiaries Pantaloons Fashion and Retail (PFRL) and Madura
Fashion & Lifestyle (MFL) in May 2015.

ABFRL is India's No 1. Fashion Lifestyle entity with a combined revenue of INR 6,060
crore for FY'16, growing at a rate in excess of 25 percent and EBITDA of INR 409 crore
for FY'16 that has been surging at an impressive rate of almost 30 percent over the last
5 years.

Pantaloons posted revenues of INR 2,164 crores in FY15-16, up 17 percent from the
previous year. The company offers a wide range of brand offerings across apparel and
non-apparel categories and across varied price points.

Customer centricity is much more than just a program; it is a way of life at ABFRL.
In an increasingly competitive market, ABFRL believes that in order ensure sustainable
growth, we must provide customers a superior experience across all touch-points. The
only way to enable this is by making the customer the central focus of our business.

At ABFRL, we bring this philosophy to life through three simple tenets. Listen, Learn, and
Act.

 Listen: Create robust mechanisms to listen to the voice of customers whether in

our stores or in the online space.

 Learn: Build strong in-sighting platforms anchored in advanced analytics to take

data-driven decisions.

 Act: Create cross-functional platforms to act on the insights gained and close the
loop with customers - both at an individual level as well as in making strategic
changes to the business.

1.4 Vision of the Company

To passionately satisfy Indian consumer needs in fashion, style and value, across
wearing occasions in Apparel and Accessories through strong brands and high-
quality consumer experience with the ultimate purpose of delivering superior value to
all our stakeholders

1.5 Mission of the Company

Deliver Happiness to our customers, shareholders, employees and society at large.
To open 500+ Pantaloons stores across India by 2020

1.6 Values of the Company

 Integrity

 Commitment

 Passion

 Seamlessness

 Speed

Passion: An energetic, intuitive zeal that arises from emotional engagement with the
organization that makes work joyful and inspires each one to give his or her best. A
voluntary, spontaneous and relentless pursuit of goals and objectives with the highest
level of energy and enthusiasm.
Integrity: Acting and taking decisions in a manner that is fair and honest. Following
highest standards of professionalism and being recognized for doing so. Integrity for us
means not only financial and intellectual integrity, but encompasses all other forms as are
generally understood.
Speed: Responding to internal and external customers with a sense of urgency.
Continuously striving to finish before deadlines and choosing the best rhythm to
optimize organizational efficiencies.
Commitment: On the foundation of Integrity, doing all that is needed to deliver value
to all stakeholders. In the process, being accountable for our own actions and
decisions, those of our team and those in the part of the organization for which we
are responsible.
Seamlessness: Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspectives to
garner the benefits of synergy while promoting organizational unity through sharing and
collaborative efforts.

Social support
‘We are committed to giving back more than we take from the ecosystem’.

ABFRL has launched the Re Earth Initiative which urges partners and stake holders
to positively contribute towards the planet by reducing the environmental foot print
of our operation.It is also a founding member of the Sustainable Apparel Coalition
(SAC) and pursues the widely accepted Higg Index.

Sustainability Goals:

By early 2018, ABFRL aims to reduce power consumption significantly, send

minimal waste to landfills, suffer from no fatal accidents at work, and significantly
reduce its packaging footprint.
Energy Efficiency:

By 2018, ABFRL aims to substantially reduce its purchase of grid electricity.

ABFRL is also exploring the feasibility of using renewable energy in some parts of
its operations.

Green Buildings:

By 2019, ABFRL aims to achieve Green Building certifications for 3 facilities.

Carbon Foot printing:

ABFRL is committed to significantly reducing its carbon footprint.

Sustainable Packaging:

ABFRL aims to reduce,reuse, and recycle packaging, thereby sustainably reducing

the environmental footprint caused by the packaging material it uses.

Sustainable Products:

ABFRL commits to ensuring product stewardship through use of sustainable

materials, processes, supply chain and business practises.

Safety:

They are working to ensure that there are no incidents of fatal accidents at work at
any of Apparel & Retail Locations.

CSR:

By 2018, ABFRL commits to providing sustainable livelihood for 25,000 people

impacting 3000 girl children and creating 10,000 hours of employee volunteering.
A. Loyalty Program of Pantaloons

The Pantaloons Green card, which is a unique loyalty program, has been designed exclusively
for Pantaloons' customers to enhance customer experience. Presently offered to over 4
million members, the programme titles members to discounts in terms of points and
special privileges at all Pantaloons stores.
The card has four tiers depending on the year's shopping. As a customer shops, the card
upgrade with increasing privileges and is counts in form of Points.
The benefits covered under Green card include discounts, Payback points, complimentary
home drop of altered garments, relaxed exchange policy, exclusive sale preview, exclusive
billing counters and assisted shopping among others.

1 Star

 No questions asked Exchange Policy ,valid for 90days ,bill not required
 Instant Redemption on next bill at cash counter
 Convenient Mobile based program
 4 points per 100-rupee shopping

3 Star

 12 points per 100 rupee

 No questions asked Exchange Policy ,valid for 90days, bill not required
 Instant Redemption on next bill at cash counter
 Convenient Mobile based program
 Sale Preview
5 Star
 12 points per 100-rupee shopping
 No questions asked Exchange Policy ,valid for 90days,bill not required
 Instant Redemption on next bill at cash counter
 Convenient Mobile based program
7 Star
 Convenient Mobile based program.
 20 points per 100 rupees shopping.
 Instant Redemption on next bill at cash counter

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 Shopping Done Tier Points earned per 100 rupees
in 1 Year
(Rs)
0-7999 1 Star 4
7999-19999 3 Star 12
20000-39999 5 Star 20
40000+ 7 Star 28

B. Awards and Recognition

Pantaloons Loyalty Program, 'Green card 'was awarded:

1. The Best "Direct Marketing Campaign of the Year"

2. Best "Use of Customer Experience Technology Award of the Year".

3. Best "Use of Customer and Data Analytics in Loyalty Program".

Pantaloons was recognized as ‘India’s Most Trusted Fashion Retailer’ for the 3rd
consecutive year in the Brand Equity survey of The Economic Times.

Pantaloons Loyalty Program, Green card awarded the best "Direct Marketing
Campaign of the Year" at the'8th Loyalty Awards' presented by AIMIA.

Major Achievements of Pantaloons Retail:

 Chosen as International Retailer for the year 2009.

 Chosen as Emerging Market Retailer of the year 2007.
 Best Employers in India (Rank 14th) in the Hewitt Best Employers 2010
survey.
 Best Managed Company in India (Mid cap) for the year 2006.
 Won Images Retail Awards 2012 for best value Retail store, Best Retail
Destination and Best Food & Grocery store.

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C. Brands At Pantaloons

There are two main categories of brands :-

 PT (Pantaloons)
 NPT (Non Pantaloons)

Apparel Brands

Sr. Men’s Kids Ladies Western Ladies Ethnic

No
1 Bare Chirpie Pie Honey Rangmanch

2 SF Chalk Candies Trishaa

3 Ajile Poppers Ajile Akkriti

4 Richard Parker Bare Ajile Essentials

5 Indus Route Ajile Dreamz

6 Alto Moda Izabel

7 Byford SF

8 Spritius Alto Moda

9 Urban ranger

Non-Apparel Brands
Sr.No Footwear Jewellery Cosmetics Handbags
1 Byford Jazz Lakme WetBlue
2 Chalk Sarah Colorbar Catwalk
3 Melange Baggit
4 Maybelline New
York
5 L’oreal

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 Non-Pantaloons Brands
Sr. no Men’s Kids Ladies Western Ladies Ethnic
1 Lee Doodles 109 F Biba
2 Peter England Annabelle W
3 Allen Solly AND
4 LP
5 Skult
6 John Miller
7 Indigo Nation
8 Pepe Jeans
9 United Colors
of Benettton
10 Spykar

Swot analysis of pantaloons with USP, Competition, STP

(Market Analysis)

Pantaloons

Parent Company Aditya Birla group

Category Retail

Sector Retail and lifestyle

Tagline/ Slogan In love with life, in love with fashion; Rewrite rules retain values

USP Pantaloons offers value for money with quality apparel in India

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Pantaloons STP

Segment People looking for good quality affordable apparel

Target Group Middle and upper middle class urban families in India

Positioning Pantaloons is a highly fashionable brand with affordable prices

Pantaloons SWOT Analysis

1. Pantaloons is one of India’s largest retailer having 1000 stores across 70 cities in
India
2. Pantaloons is one of the largest retailer by market capitalization and revenue in India
3. It manages high number of purchase orders
4. It is always updated with changing consumer preferences
5. Pantaloons is a popular brand with a high presence across India
6. Strong online presence of the brand helps to tap the internet market
7. Pantaloons offers a wide variety of clothes for men, women and children
Strengths 8. Advertising, branding and discounts have enabled the brand to capture the youth

1.Intense competition from retail stores and online shopping brands means limited
market share growth for Pantaloons
Weaknesses 2.Too many options for customers hence high brand switching and low brand loyalty

1.Pantaloons can increase the footfalls by increasing ATL – TV commercial

promotions
2.India is fast emerging as retail hub for top brands as government allowed FDI in
single brand and multi brand retail
3.Organized retail is only small percentage(4.5%) of total Indian retail industry
4. Tie-ups with fashion institutes and even online brands can help increase sales
Opportunities for Pantaloons

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1.3.6 Competitors

1. Westside

2. Max

3. Reliance Trend

4.Vishal Mega mart

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