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DISSERTATION REPORT On INDIAN RETAIL & ITS EFFECT ON FASHION TREND

A REPORT SUBMITTED TO ITS-IM, GREATER NOIDA AS A MANDATORY PART OF PGDM CURRICULUM

SUBMITTED TO PROF. NISHIKANT BELE ITS-IM GREATER NOIDA

SUBMITTED BY MD. MIDHAT AZHAN KHAN ROLL NO.- 13079 PGDM [2011-2013]

I.T.S. - INSTITUTE OF MANAGEMENT

GREATER NOIDA
STUDENTS DECLARATION I, Md. Midhat Azhan Khan, student of PGDM, hereby declare that project titled Indian Retail & Its Effect on Fashion Trend is the original work done by me and submitted to the AICTE, New Delhi in partial fulfillment of requirements for the award of PGDM is a record of original work done by me.

Signature of the Student: Date:

ACKNOWLEDGEMENT

I would like to take this opportunity to thank the following people who have directly or indirectly contributed towards the completion of this Project work and without their help this in the present form would have not been possible. I would like to like to thank my Faculty Guide, Prof. Nishikant Bele, ITSIM, Greater Noida for guiding me throughout the project. I am thankful to my parents without their support my PGDM course would not have been possible.

MD. MIDHAT AZHAN KHAN

EXECUTIVE SUMMARY
Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain - connecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3%, which at present is estimated to be $ 6 billion. 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 I million; the growth rate is about 4.5%. Organised retailing is witnessing a wave of players entering the industry. These players are experimenting with various retail formats. Yet, Indian retailing has still not been able to come up with many successful formats that can be scaled up and applied across India. Some of the notable exceptions have been garment retailers like Madura Garments & Raymonds who was scaled their exclusive showroom format across the country. This research project was undertaken with a view to analyse the trends in the Indian Apparel Industry with reference to changing trends in buying behaviour of consumers. The aim was to understand the effect of increasing income levels of consumers on the apparel industry. The research has been structured into five chapters. The first chapter is Introduction in which the introduction to the area of research presented. The definitions of key terms have also been covered in this chapter. The second chapter is the research methodology where in the details of objectives of the study, hypothesis, data collection tools, sampling techniques, tests used for thesis testing and limitations of the research have been discussed. The rationale for choosing each research method has been described in this chapter. The third chapter is Literature Review where in all the relevant literature on Changing trends in Consumer Buying behavior for apparel have been discussed. The fourth chapter is Finding & Analysis in which analysis and discussion of literature and survey findings has been done. The fifth chapter is Conclusion in which concluding remarks of the research have been presented.

After the research it can be concluded that the Indian Apparel industry is definitely on the growth path and with increasing income levels of consumers the trends are changing across apparel retailing that includes retail formats, merchandise and increased market share in the organized retail.

TABLE OF CONTENTS S.No Chapter Name Executive Summary 1. 2. 3. 4. 5. 6. 7. Introduction to Retail Apparel Industry Research Design, Objective & Methodology Literature Review Findings And Analysis Conclusion and Recommendations Questionnaire References

CHAPTER 1 INTRODUCTION
The Indian textile and apparel industry is one of the largest in the world with US$ 19.24 billion of exports and US$ 30 billion of domestic textile and apparel sales during 200607. It is one of the largest foreign exchange earners for the country and accounts for about 35% of the total foreign exchange earned by the country.

Size of the Indian Textile and Apparel Industry


The textile industry is the third largest industry in India next to tourism and Information Technology. It occupies an important place in the economy of the country because of its contribution to the industrial output, employment generation and exports. At present, the industry accounts for about 14% of our total industrial production and contributes nearly 15% of total exports. It contributes about 4% of the countrys GDP. Being the second largest employer after agriculture, the industry provides direct employment to more than 35 million people in both organized and unorganised sectors including substantial segments of weaker sections of society. Another 56 million people are engaged in allied activities. With a very low import-intensity of about 1.5% only, it is the largest net foreign exchange earner in India, earning almost 35% of total foreign exchange. Textile exports have registered a growth of 10% to US$ 19.24 billion during 2006-07 from US$ 17.11 billion during 2005-06. The size of the Indian Textile and Apparel industry is estimated to reach US$ 85 billion comprising US$ 45 billion in domestic sales and balance in exports by the year 2010. This is the only industry that is self-sufficient and covers the entire value chain. From growing its own raw material (cotton, jute, silk and wool) through spinning, weaving, knitting, dyeing and finishing to providing value added products to consumers such as apparel and home textiles, the textile industry covers a wide range of economic

activities. The sector has the capability to produce both basic garments in long runs and fashion goods in smaller and more flexible runs. Although the sector is primarily cotton based, it benefits from access to a wide range of textile fibres for which India is a major world producer such as manmade fibres, jute, linen and silk. Besides natural fibres such as cotton, jute and silk, synthetic raw material products such as polyester staple fibre, polyester filament yarn, acrylic fibre and viscose fibre are also produced in India. However, these manmade fibres account for only 40% share in the cotton-dominated Indian textile industry. The sector also benefits from access to a vast pool of workers, both skilled and unskilled, as well as technicians and managers, at relatively low wage rates; and English is the language of business. With exports as well as domestic sector growing rapidly, the Textile and Apparel Industry is expected to provide direct employment to about 40 million people by year 2010. Units Sector (In million)
(2004-05) (2005-06)

Volume (In billion sq. mtrs.)


(2004-05)

Employment (In million)


(2005-06)

Organized Textile Mills Power loom Handloom Jute Handicrafts Sericulture

1789

1780

1.5

1.0

0.426 3.487 -

0.434 3.487 -

28.3 5.7 1.6 Source: Textiles

4.8 6.5 4.4 6.4 6.0 Ministry of

The textile industry was de-licensed in 1991 and under the current policy no prior government approval is necessary to set up textile mills. The per capita cloth availability in the country has increased from 22.87 square meters in 1991-92 to 36.10 square meters in 2005-06.

Per Capita Availability of Cloth (In sq. mtrs.) Blended/Mixed Fabrics 2.90 2.57 3.58 3.27 3.48 3.98 4.57 4.13 4.48 4.50 4.69 4.38 4.51 4.11 4.32 100% NonCotton Fabrics 6.26 6.36 6.72 7.47 8.19 9.08 10.41 10.99 11.91 11.96 12.46 12.59 13.09 15.32 15.41

Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Cotton 13.71 15.57 15.92 15.24 16.32 16.24 15.94 13.07 14.16 14.22 14.82 14.40 13.41 14.08 16.37

Total 22.87 24.50 26.22 25.98 27.99 29.30 30.92 28.19 30.55 30.68 31.97 31.37 31.01 33.51 36.10

Source: Office of the Textile Commissioner

Indias position in the World Textile Economy


The Indian textile industry accounts for 12% of the world production of textile fibres and yarns (including jute). India is the largest producer of jute, second largest producer of silk and cellulosic fibre/yarn, third largest producer of cotton and fifth largest producer of synthetic fibres/yarns in the world. All this data clearly indicates the position of India in the World Textile economy. It can be very clearly said that India holds a very significant position in the Worlds Textile economy, especially in the cotton textile sector. India's cotton textile industry has a high export potential. Cost competitiveness is driving the penetration of Indian basic yarns and grey fabrics into the international commodity markets. Small and flexible batches of apparel can be manufactured in India which can provide a larger variety of casual wear and leisure garments at significantly lower costs.

Structure of the Indian Apparel Industry


The garment industry is made up of a complex chain of actors whose roles often overlap. In very general terms, the industry includes the following entities: Apparel manufacturers are primarily engaged in the design, cutting and sewing of garments from fabric. Some manufacturers are contractors or subcontractors, which generally manufacture apparel from materials owned by other firms. Larger manufacturers often contract production to many such contractors or subcontractors in the U.S. and abroad. Some manufacturers are vertically integrated, producing the textiles from which they make garments, or even operating retail outlets. Apparel merchandisers generally design and market clothing, but contract the actual production to manufacturers. Buying agents locate, qualify and inspect foreign suppliers/producers of garments, negotiate with suppliers/producers, and often monitor production for quality control and compliance with other standards. U.S. companies that do not have a large presence abroad, or in addition to a U.S. Companys own buying staff may use them.

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Retailers are primarily engaged in the distribution, merchandising, and sale of garments to consumers. Apparel retailers include department stores, mass merchandisers, specialty stores, national chains, discount and off-price stores, outlets, and mail-order companies. A relatively new development is the rise of electronic forms of retailing such as interactive TV and on-line shopping services. Some retailers who sell their own private labels go beyond their traditional role as distributors and become directly involved in the design and sourcing of garments from manufacturers and contractors.

Stages of Development in Apparel Manufacturing

Stage 4
Full Package, FOB or LDP

Stage 3
Cut, Sew & Source TRIM

Stage 2
Cut & Sew

Stage 1
Sew

The figure above shows the different levels of services offered by manufacturers or vendors. At the first stage, the manufacturer sews the cut garment pieces as a contract service. The next level of garment industry development is cutting and sewing. At this stage, the factory still generally operates as contractor, and does not procure the raw materials needed to produce the garments. The production patterns are also provided by the apparel company.

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At the third stage, manufacturer takes the next step and sources trim, particularly for basic products for which the trims are standard, such as white buttons for a mens shirt. At the final stage, a manufacturer becomes a full package supplier. He is responsible for many aspects of the garment production from purchasing the fabric and trim, patternmaking to full production and packaging, ready for retail sale. The level of service for full-package producers can vary. Even though the manufacturer purchases the fabric and trim, the retailer or Apparel Company often chooses the actual fabric and the mill to produce the fabric. Sometimes the full-package supplier will select the fabric and fabric suppliers, or suggest alternative suppliers that are able to meet the fabric specifications given by the customer. Full-package suppliers must be financially solvent in order to obtain financing for the purchase of raw materials. The Supply Chain in Textile and Clothing Sector The supply chain in textile and clothing sector is illustrated in the diagram below. The dotted lines represent the flow of information, while the solid lines represent the flow of goods. The direction of the arrows indicates a demand-pull-driven system. The information flow starts with the customer and forms the basis of what is being produced and when. It is also worth noticing that information flows directly from the retailers to the textile plants in many cases. The textile sector produces both for clothing sector and for household use. In the former case there is direct communication between retailers and textile mills when decisions are made on patterns, colors and material. In the second case, textile mills often deliver household appliances directly to retailers.

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At each link in the production chain to the left of the distribution centre in the diagram, there are usually several companies. In order to make goods, information and payment flow smoothly, a number of logistics and business services are needed.

CHAPTER 2 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY:


The report explains the factors that affect the Indian retail apparel market and the changing trends in the apparel industry with the income levels. To study the Indian Textile Industry with reference to key success factors. To analyze the Indian Retail industry with reference to the recent developments. To study the changing trends in the Apparel Retailing in India To study the consumer buying behavior for Apparels.

HYPOTHESIS:
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Increasing income levels of consumers have a positive effect on the growth of apparel industry.

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discover. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and duller understanding of the unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analysing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generalizations for some theoretical formulation. Data Collection Approach: The data for this research was obtained as a judicious mix of both secondary and primary data, which were obtained from various sources as mentioned below. Secondary Research:

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The secondary research was undertaken through collection of above-mentioned secondary data, which has been presented in the report as the literature review and discussion in findings. The chapter 3 covers the existing literature on the changing trends in the Consumer buying behavior for apparels. The information relevant to the topic has only been included in the report. Primary Research: The different options available to the researcher for the purpose of collecting the primary data were as follows: Interviews: Interview is a technique used to gain depth information on the subject, feelings and attitudes of the interviewee. But the interviews tend to be used on small sample and are generally time consuming. Secondly at times the interviewer can be preoccupied or need more counter information may distract interviewers trend of discussion. Thirdly the information gathered from interviews tends to highly subjective and there can be loss of information during transcribing. So this method was not chosen for the purpose of the research. Questionnaires/surveys: There are three types of questions in a questionnaire, which are open, closed and a combination of both open and closed questions. Open Questionnaires: The open-ended questions allow the respondent to answer in his or her own words. These questions result in more information, as the respondents are not refrained from giving their views in short. But the large information thus collected is difficult to analyze. Thus the information collected cannot be easily generalized. Closed Questionnaire: These questions limit the options given to the respondent and thus the information collected becomes easy for tabulation and interpretation and thus resulting in finite results. Combined questionnaires:

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Through combined questionnaires, the combination of quantitative and qualitative responses can be obtained. Quantitative data will complement and support the qualitative responses, therefore adding validity to the data collected. Rationale for choosing the research method: The researcher has selected the combined questionnaire for the purpose of the study. The questionnaire was designed on the basis of literature review and was presented to respondents by the researcher at selected Malls and Stores in Delhi. The advantage of using questionnaires method is that it is an economical method to collect information. It gives the user an option to vary the selected sample size without much of a problem and to get more information if it is observed that the collected information was not sufficient or revealing. The researcher designed two questionnaires for the purpose of survey, the first questionnaire was prepared for the Retailers and the second questionnaire was designed for customers of Delhi city.

Sample Design The researcher decided to undertake his research at the following Malls in Delhi: Ansal Plaza, Khelgaon. MGF Metropolitan, Gurgaon Sahara Mall, Gurgaon DT city centre, Gurgaon The Great India Place, Noida The Centerstage Mall, Noida

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Sample Element: The basic units, which needed to be examined through the study, were Customers visiting and the Stores in-charge of the Retail outlets in the selected Malls and stores. Population : - The universe of the study comprises all the Store in- charges and Customers. Method : - The approach of convenience sampling was used for survey. Sample Size : - The total number of respondents surveyed was as follows: Retailers Contacted : 20 Customers Contacted : 75 Sample Extent : - The scope of study was restricted to the geographical areas of Delhi. Reliability and Validity The researcher considered the survey to be reliable because the respondents were Store Incharge who has been associated with the selected outlets for quite a reasonable length of time; therefore they had knowledge of Industry. Moreover the researcher has tried to get the view of Customers contacted at Apparel Stores. They gave sufficient time to the researcher for filling the questionnaire in the right way. But still there might be some discrepancies on the part of the researcher, which have been mentioned in the limitations. For the purpose of survey, the researcher has tried to get quality data and also tried to quantify the collected information in terms of values and percentages, as and where applicable. The researcher has tried to get the most relevant information for the analysis.

LIMITATION OF THE STUDY


For every research there are restrictions and limitations. Without them the world does not exist. Similarly there are some restrictions in my research work, which could not be controlled. The following were some limitations, which I faced in the making of this research.

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The study was restricted to selected Malls and Stores in Delhi. Time was the biggest constraint. It was difficult and time consuming to get the questionnaires filled personally from the respondents thus the sample size was restricted to 20 Retailers and 120 Customers. Nevertheless all efforts were made to get relevant information for the successful completion of the research.

There may be some discrepancies in views as some people might give false information in the Questionnaire, as they might not be interested in filling the form.

The respondents may be biased in their opinions.

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CHAPTER 3 LITERATURE REVIEW


In a research conducted by Business World 2007-2008 the following behavior pattern related to Apparel buying has been observed.

The New Indian Consumer


When it comes to loyalty, branded garments are a cut above all other sectors. More than 51 per cent of respondents say they are loyal to the apparel bands they own. And even though consumers can easily switch brands, only 24 per cent consumers say they are likely to do so. Allen Solly, a premium brand positioned for the yuppie and upcoming professionals, and marketed by Aditya Birla Nuvo's Madura Garments tops that list with 68 per cent of its customers falling in the 'true loyal' category. Performance Measures (Apparel) Apparel Allen Store Experience Merchandise SalesPersonnel Billing Packaging Additional Services Schemes Industry* 74 63 63 60 64 52 Solly 81 71 69 65 65 62 62 58

Provogue 72 64 63 64 64 51 56 5510

Louis Phillipe 72 60 62 57 66 51 48 55

Levis 69 67 55 55 58 5410 5013 56

Van Heusen 76 62 66 59 65 46 53 57

& 54

Promotions Advertising & 55

Commn. Superscript: Percentage of people who were unhappy in these parameters; * Customers who rated performance as excellent or very good.

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The Rankings
80 70 60 50 40 30 20 10 0
ly So l

67

59

58

56

56

55

55

55

CSI Score

53

51

49 Rank

1
e gu

2
pe

10

11

Va Lev i' s n H eu se G n ol Jo o r p hn lu Pl s ay er s

ow

tle fe s

Le

ilip

Ar r

vo

Ph

Al le

Pr o

ui s

Loyalty Segmentation 80 70 60 50 40 30 20 10 0 Allen Solly Arro Provogue Colorplus John Plaers Van Heusen Industry Average Levi's Lee Louis Philippe Wills Lifestyle UCB 17 10 5 21 15 6 20 15 9 21 20 5 25 18 5 25 17 7 28 15 11 6 25 22 25 22 24 20 7 11 68 58 56 54 53

Lo

52 47 47 45 44 39 37 24 18

ills

Li

51

17 17

High Risk

Trapped

Accessible

True Loyals

LIFESTYLE
As India's retail sector booms, customer expectations are rising much faster than the pace at which retailers are able to roll out their services. That is the conclusion drawn from the performance of companies in three segments - lifestyle and fashion stores, coffee chains and fast food joints. For example, though lifestyle and fashion stores like

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Shoppers' Stop, Pantaloon, Lifestyle, and Globus are offering a shopping experience that is decidedly better than what was available five years ago, customers are demanding more. The segment has managed to muster a loyalty of only 36 per cent. A similar story plays out in the coffee chains category. Thirty-two per cent of customers feel they are trapped. Now, that's not a comforting thought for a coffee bar. In fast foods, Pizza Hut comes out far ahead of competitor Domino's because customers think that the Pizza Hut's staff is more service-oriented. Performance measures (lifestyle and fashion stores) Lifestyle & Fashion store Industry* Store experience Merchandise Sales personnel Billing Packaging Additional services Schemes promotions Loyalty programmes Advertising Commn. & 51 57 52 52 45 4910 4020 3317 29 3917 4025 6313 & 52 57 49 54 53 51 70 62 60 58 56 55 76 67 62 64 58 54 68 51 57 51 58 57 68 56 58 57 59 54 70 70 66 03 56 62 65 52 55 47 51 5013 Shoppers Stop Life style Globus Westside Pantaloon

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Superscript: Percentage of people who were unhappy in these parameters; * Customers who rated performance as excellent or very good.
The Rankings
60 Customer Satisfaction Index 50 40 30 20 10 0 Westside Shoppers' Stop Lif estyle Pantaloon Globus 1 2 3 4 5 54 53 43 42 39 Rank

Loyalty Segmentation

32 51 44 3 7 6 23 30 32 18 Shoppers' Stop Pantaloons Trapped 33

30 10

20 7 36

6 38 31

37

20 Westside

24

36

26

Lifestyle Accessible

Globus

Industry Average

High Risk

True Loyals

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School Goer (Age 12-16)


Close to 50% of their annual spending of Rs. 2,133 (USD 46) on apparel is on Western wear, with Western casuals occupying a larger share (27.9%) of the pie. High utility and comfort vis--vis other modes of dressing at this age is a contributor to the higher spends on this type of apparel. There is a fair proportion spent on fabric as well, at 21.1%. Inner wear expenditure accounts for more than 15%, marginally higher than that accounted for by ethnic wear. Share of expenses on Western wear is visibly higher among the boys at 55-9%. But a sizeable 42.4% among the girls is a visible sign of increasing consciousness of fashion trends and shift towards Western wear. Fabric and ethnic wear purchase is higher among girls. Share of spends on inner wear is largely similar between the two genders. Shares of Wallet apparel types All Western Casuals Western Formals Fabric Inner Wear Ethnic Wear 27.9 22.0 21.1 15.6 13.3 Boys 30.8 25.1 18.8 15.9 9.4 Girls 24.8 17.6 24.3 15.2 18.7

All figures in Per cent Outer wear In the last year, 47% have purchased Western formals and 60% have purchased Western casuals. Ethnic wear purchases are restricted to 29%. Among those who buy, most (70% -72%) buy at least once in six months. Small shops selling local brands are the preferred format for making final purchases for all apparel types. Branded outlets, both multi and exclusive brand, are also vying for the attention of this life stage. Only a few (-11%) travel beyond 5 Kms for shopping. Shopping for apparel is invariably done (in 80%+ cases) at cither local neighborhood 23

markets or popular big markets in the city or town, regardless of the kind of apparel shopped for. Although bulk of the outlets regularly shopped at are likely to be within a 2 km range from their residences, l/3rd do not mind travelling upto 5 kms, especially for Western formals and casuals. Shop loyalty is the highest for Western formals and Western casuals.
Outer Wear: Purchase Frequency
60 All Figures in Percent 50 40 30 20 10 0 Western Form als Once in 3 Months Western Casuals Once in 6 Months Ethnic Once in a year 20 29 23 28 18 29 51 49 52

Spends on Outer Wear


50 All Figures in Percent 40 30 20 10 0 22 25 18 8 5 18 11 3 Western Casuals Ethnic Rs. 501-750 (USD 10.9-1.63) 47 42 29 16 9 4 42

Western Form als Upto Rs. 250 (USD 5.4) Rs. 751-1000 (USD 16.4-21.7)

Rs 251-500 (USD 5.5-10.8) Rs. 1000 + (USD 21.7+)

Inner wear Most (87%) have bought inner wear in the last one year. Among those who have bought, 86% buy once in six months. Purchases are made to a large extent from smaller shops 24

selling local brands (51 % buy mostly at such outlets) rather than management or employee buy-outs (MBOs or EBOs), which are patronised by 20% and 17% respectively. The shops bought from are located in the neighbourhood markets in 55% of the cases and the larger shopping markets in the city in 36% of the cases. Most (70%) people do not travel more than 2 kms for their inner wear shopping. A third state loyalty to a particular brand or set or brands while another third express loyalty to the shop they buy from. The remaining third say they are not particular about either the brand or shop. Most do not spend more than Rs. 250 (USD 5.3) in a six month period; 37% spend upto Rs. 100 (USD 2.1) while 45% spend in the range of Rs. 101-250 (USD 2.2 5.4)

Preferred Formats, Location for Purchase Format Western Formals Purchased from Small shops selling local 39 brands MBOs EBOs Large department stores Location of the store Popular, market Local neighborhood/colony 34 market 37 42 big shopping 51 50 43 26 25 10 25 23 10 26 18 10 40 42 Western Casuals Ethnic Wear

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Markets popular for selling 12 that prod jet Shopping malls Distance from home Upto 1 km l.l-2kms 2.1-5 kms More than 5kms All figures in percent. 26 28 35 12 5

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27 27 33 13

32 31 27 9

Loyalty to Outlets (All figures in percent) % who say I buy only from one or a few shops that I like/trust If I dont find a brand at my shop, I buy some other brand from the same shop

Western Western Formals Casuals 52 52 37 34

Ethnic Fabric Wear 51 29 47 34

Corporate Group (Age 21-25)


The share of expenditure on Western wear exceeds 50% from the annual spending of Rs. 2,727 (USD 59.3). The difference in the allocation of funds to formals and casuals is stark. The share of spending on inner wear and fabric is nearly the same (~13%). The workingman buys more formals (~28.5%) with preference for classy, contemporary brands. However, ethnic wear and fabric ate preferred among women. The wallet share of inner wear is nearly the same amongst both men and women. Share of wallet (apparel types) All Boys Girls

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Western casuals Fabric Ethnic wear Inner wear All Figures in per cent

24.8 22.9 13.3 13.2

26.8 21.6 9.9 13.2

20.5 257 20.5 13.3

Outer wear The purchase of Western formals has been by 52%. As for casuals it is 58%, ethnic wear (~33%) and fabric (64%). Nearly 70% of the people buy Western wear once in six months, as compared to ethnic wear (62%). The median spends are in the range of Rs. 251-500 (USD 5.5-10.8) for nearly 43% of the people for Western casuals and ethnic wear. However, spending goes above this for a substantial number of them. The majority of people purchase branded products especially for their Western wear. The focus for ethnic wear is also shifting towards branded wear. The loyalty towards brands is quite high. In fact the youth is quite branding conscious. The purchases are from MBOs as well as EBOs with a good assortment of brand offerings. Even department stores are preferred by a chosen few with a good number buying local brands from small shops as well. The most preferred and frequented locations are, popular shopping markets by more than 50% of the people for Western wear and 48% for ethnic outfits. People do not prefer to travel much for shopping except for 10% who manage to travel more than 5 kms.

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The decision of the final purchase format is made by more than 90% of the corporate climbers on their own. Seemingly, shop loyalty is also high with more than 40% preferring to buy from shops they trust.
Purchase Frequency of Apparel 60 50 All Figures in Percent 40 30 20 10 0 Western Form als Western Casuals Ethnic Wear Once in a year Fabric 23 19 17 14 30 29 52 47 45 38 47 38

Once in 3 Months

Once in 6 Months

Spends on Apparel
45 40 35 All Figures in Percent 30 25 20 15 10 5 0 Western Formals Western Casuals Upto Rs. 250 (USD 5.4) Rs. 751-1000 (USD 16.4-21.7) Ethnic Wear Fabric 14 21 16 11 7 15 21 14 21 15 16 13 7 4 13 25 37 44 41

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Rs 251-500 (USD 5.5-10.8) Rs. 1000 + (USD 21.7+)

Rs. 501-750 (USD 10.9-1.63)

Preferred Formats, Location for Purchase Format Western Western

Ethnic

Fabric

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Formals Purchased from Small shops selling local 37 brands MBOs EBOs Large department stores Location of the store Popular, big shopping market Local neighborhood/colony market Markets popular for 7 7 29 29 28 14 29 25 8 53 34

Casuals 35 31 23 7 51 37

Wear 43 25 19 8 58 39 47 26 20 5 44 46

6 8 31 28 27 13

9 4 34 31 25 10

7 3 39 27 24 10

selling that product Shopping malls Distance from home Upto 1 km l.l-2kms 2.1-5 kms More than 5kms All figures in percent.

Loyalty to Outlets (All figures in percent) $ who say Western I buy only from one or a few shops Formals 46

Western Casuals 48 33

Ethnic Wear 44 34

Fabric 46 31

that I like/trust If I dont find a brand at my shop, I 36 buy some other brand from the same shop

Inner wear has been bought by 93% of the people in the last one year whereas 88% buy at least once during six months. The spending of the majority (-42%) is in the range of Rs. 101-250 (USD 2.2-5.4).

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Around 52% still make their lingerie purchases from small shops selling local brands. Nevertheless the trend has been changing with the foray of national chains in major metropolitan cities of the country. Close to l/5th of these consumers buy from outlets that house multiple brands and are also ready to travel a distance of 2.1-5 Ions. Close to 38% of the employed is brand conscious and hence buy brands of their choice.

Cautious Planner (Age 31-45)


Western formals and fabric account for more than half of their expenditure on apparel. The higher proportion allotted to fabric is contributed more by the women for whom it accounts for over a third of their apparel expenditure. The share of expenditure on Western wear among working women is substantial at 35%, an evidence of the increasing adoption of Western wear for a variety of occasions. Outer wear Fabric purchase has the highest incidence 62%, over a one-year period. Close to half (47%) bought Western formals. And sizeable segments have purchased Western casuals (40%) and ethnic wear (37%). Among the buyers, purchase frequency is at least once in six months for close to 70% in the case of Western wear. Ethnic wear and fabric is purchased as frequently by 63-64%. Spends on each of the different types of apparel arc spread over various brands. A larger proportion spends in the region of Rs. 250-500 (USD 2.2-10.8) for any kind of apparel. Spends on Western wear tend to be higher. About 60% buy branded apparel in Western wear, while proportions buying branded ethnic wear or fabric are lower at 49%. Brand loyalty is a shade higher for Western casuals with a slightly larger number of people who say they will buy only brands they like or trust and will seek out their brands at other outlets if it is not available in the outlets they frequent. These individuals ate the decision makers on the outlets to purchase from in nearly all the cases. Purchases ate invariably made at the local neighbourhood market or one of the larger, popular markets in the city which arc located within a 2 km radius in 60%+ of the

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cases, particularly for ethnic wear and fabric purchases. For Western wear purchases, there is slightly higher inclination to travel beyond 2 kms. Purchases from small shops selling local brands are most prominent. But purchases from MBOs and EBOs are also substantial, especially for Western wear. Loyalty to outlets About half express loyalty to a particular outlet or set of outlets. And in the event of non availability of what they are looking for, a third would settle for whatever is available at that outlet. Shop loyalty factor seems somewhat higher for Western formals and casuals. Inner wear Nearly all (91%) have bought inner wear in the last year. It is bought by 85% of them at least once in six months. Spends are above Rs. 250 (USD 5.4) in less than a fifth of the cases; 37% have spent upto Rs. 100 (USD 2.1) and 44% have spent Rs. 101-250 (USD 2.2-5-4) in the last six months. Nearly all have bought inner wear using cash. About half have bought from smaller shops selling local brands but purchases from MBO and EBOs are significant at 23% and 18% respectively. The purchases from EBOs are particularly interesting as it is similar for both men and women. These shops are typically in the neighborhood markets (61% of the times) or in popular, shopping areas (31%), within a 1 km radius from their residence in nearly half the cases. Travel exceeds 2 km for a significant one-fourth. Loyalty to shops and brands is largely similar to that of apparel, with proportions being spread over those loyal to outlet, those loyal to brand and those who are neither. Share of wallet (apparel types) (All figures in percent) All Western Formals Fabric Western Casuals Inner Wear 27.7 25.7 19.3 14.7 Men 28.9 24.5 19.8 14.5 Women 19.2 34.4 15.9 15.7

31

Ethnic Wear

12.6

12.3

14.9

Purchase Frequency of Apparel 60 50 All Figures in Percent 40 30 20 10 0 Western Formals Western Casuals Ethnic Wear Once in a year Fabric 17 30 18 31 53 51 47 36 47 37

17

16

Once in 3 Months

Once in 6 Months

Spends on Apparel
45 40 35 All Figures in Percent 30 25 20 15 10 5 0 Western Formals Western Casuals Upto Rs. 250 (USD 5.4) Rs. 751-1000 (USD 16.4-21.7) Ethnic Wear Fabric 6 7 4 4 15 22 19 15 16 13 13 12 26 23 25 19 36

43 39 39

Rs 251-500 (USD 5.5-10.8) Rs. 1000 + (USD 21.7+)

Rs. 501-750 (USD 10.9-1.63) 3-D Colum n 6

Preferred Formats, Location for Purchase Format Western Western Formals Casuals

Ethnic Wear

Fabric

32

Purchased from Small shops selling local 38 brands MBOs EBOs Large department stores 39 24 10

35 30 23 11

41 28 21 9

45 27 20 5

Location of the store Popular, big shopping 45 market Local neighborhood/colony market Markets popular for 8 7 33 28 30 10 41

44 42

48 40

38 51

7 7 36 28 25 11

6 6 36 33 21 10

7 4 39 30 22 9

selling that prod jet Shopping malls Distance from home Upto 1 km l.l-2kms 2.1-5 kms More than 5kms All figures in percent.

Loyalty to Outlets (All figures in percent) $ who say Western I buy only from one or a few shops that I like/trust If I dont find a brand at my shop, I buy some other brand from the same shop Formals 49 37

Western Casuals 52 32

Ethnic Wear 46 30

Fabric 45 33

33

The Home Makers (Age 26-60)


Fabric and ethnic wear purchases account for a larger share of the wallet among these women. Western wear also has a considerable share in their spending. Share of inner wear is largely similar to that seen in other life stages. Outer wear Purchase incidence of fabric is highest in this group, with 58% of the women having bought some fabric in the last year. Close to half have bought ethnic wear, while a substantial 35% and 33% have bought Western formals and Western casuals. Among buyers o all these categories, frequency of purchase is at least once in six months in almost 70% of the cases. Fabric and ethnic wear purchases are in the lower ranges, to some extent. For instance almost a third has spent only up to Rs. 25 1 (USD 5.4) on fabric, while these proportion are much lower for Western wear. The value of spends is higher for Western casuals in particular. Brands are more popular in purchase o Western casuals (-61%) and formals (-57%! However, close to 48% of the housewives buy branded clothes for their ethnic wear as well fabric purchase. The housewife is the decision maker in 86% of the cases. Among the housewives are the unilateral decision makers. Popular large shopping areas and the local neighborhood markets are patronized for apparel purchase. Smaller shops selling local brands are frequented in more than 40% of the cases. But purchases from MBOs and EBOs are also significant, especially for Western wear. As seen in the other life stages, distance of these shops is within a 2 km radius from their homes in a larger number of cases. Brand and shop loyalty is lower for fabric purchase. Brand loyalty is higher for Western casuals. remaining

women, the husband plays some role in outlet choice. On fabric purchase however, the

34

Share of wallet (apparel types) (All figures in percent) All Housewives with no children Housewife with Housewife dependent children with Independent Children Fabric Ethnic Wear Western Formals Western Casuals Inner Wear 17 17 17 19 17 17 17 17 25 24 17 22 26 18 26 23 17 27 22 15

Purchase Frequency of Apparel 60 50 All Figures in Percent 40 30 20 10 0 Western Formals Western Casuals Ethnic Wear Once in a year Fabric 17 29 19 33 27 16 20 31 51 54 51 48

Once in 3 Months

Once in 6 Months

35

Spends on Apparel
45 40 35 All Figures in Percent 30 25 20 15 10 5 0 Western Formals Western Casuals Upto Rs. 250 (USD 5.4) Rs. 751-1000 (USD 16.4-21.7) Ethnic Wear Fabric 7 4 4 3 19 19 13 21 18 14 12 18 12 24 24 34 31 44 41 35

Rs 251-500 (USD 5.5-10.8) Rs. 1000 + (USD 21.7+)

Rs. 501-750 (USD 10.9-1.63)

Preferred Formats, Location for Purchase Format Western Western Formals Purchased from Small shops selling local 44 brands MBOs EBOs Large department stores Location of the store Popular, big shopping market Local neighborhood/colony market 24 23 9 45 41 Casuals 41 28 21 9 44 41

Ethnic Wear 43 30 17 7 45 44

Fabric

49 27 15 6 41 49

36

Markets

popular

for 9

8 7

6 6

7 4

selling that prod jet Malls/Shopping Complex 5 Distance from home Upto 1 km l.l-2kms 2.1-5 kms More than 5kms All figures in percent.

31 30 28 10

31 33 24 13

35 34 21 10

38 31 22 8

Loyalty to Outlets (All figures in percent) $ who say Western I buy only from one or a few shops that I like/trust If I dont find a brand at my shop, I buy some other brand from the same shop Inner wear Formals 48 42

Western Casuals 51 42

Ethnic Wear 45 31

Fabric 43 34

Four out of five housewives have bought inner wear in last year, with 82% having bought at least twice a year. A substantial 44% have spent in the range of Rs.101-250 within a six month period. More than half buy at the smaller shops selling local brands but purchase from branded outlets are also substantial (MBOs-23%, EBOs-14%); which is clear evidence of branding' beginning to play a more important role in the inner wear category.

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CHAPTER 4 FINDINGS & ANALYSIS


Retailing
Retailing is the most important part of the entire logistics chain in a business especially in consumer related products. Without proper retailing the companies can't do their business. Retailing is the process of selling goods in small quantities to the public and is not meant for resale. Retail is derived from the French word retaillier, meaning to cut a piece off or to break bulk. There are various ways of making goods available to consumers like: Company to distributor to wholesaler to retailer to consumer Company to salesperson to consumer Company to consumers (online/ phone/ catalog ordering)

These three are among the most common ways of making the goods available to consumers. But in India the three layered system of distributor, wholesaler and retailer, forms the backbone of the front-end logistics of most of the consumer-good companies. In this system the company operating on all India basis appoints hundreds of distributors across the country that supplies to various retailers and wholesalers. Wholesalers in turn can either directly sell in the market or can supply to retailers. The current retailing system prevalent across the country is highly fragmented and unorganized. Anyone with some money and some real estate can open a small shop and become a retailer catering to the locality in which he opens the shop. There are a number of reasons behind this fragmented retail market. Some of the major reasons being: Poverty and lower literacy levels. Low per capita income. Savings focused and less indulgence mindset. Poor infrastructure facilities like roads etc.

38

Restrictions on intra-state good movement. High taxes. No exposure to media. High import duties on imported goods. FDI in retailing is not allowed. Retailing is not considered as a business or industry by the government. Hitherto none of the business schools in India were offering specialized courses on retailing. Expensive supply chain.

Besides these there are other reasons too, which led to stifling of growth of organized segment of retailing sector and which instead led to highly fragmented market. Today in India we have more than 12mn retail outlets and most of then are family run and locally owned. There are very few nationally present retail stores. In India the process of buying and selling at these unorganized retail outlets, is highly characterized by bargaining and negotiations. But slowly with increasing influence of media and urbanization the market is shifting towards organized segment. Seeing the huge market size of retail business in the country and the current level of organized segment, many players have jumped into the fray and many are waiting for the right opportunity to enter it. Classification of Retailing Retailing is not bound or restricted by product categories, any consumer products manufactured by a company and available in the market can be retailed ranging from food to books to toys etc. Entire retailing market in India can be divided into traditional retail stores and modern retail stores. While traditional retail stores form the unorganized segment of the market, modern stores are a part of organized sector. Organized retail market can be further categorized in then following different ways: On the basis the area covered by various stores.

39

On the basis of the products retailed by various stores. On the basis of the ownership arrangement and product categories. On the basis of readiness for riding the expected retail boom.

Categorization on the basis of area covered by various stores: Based on the area covered by the store we can categorize retail stores into 5 types, namely: Neighborhood stores High street stores Small department stores Specialty stores Shopping malls, etc.

Neighborhood stores have an area in the range of 100-500 sqft and are most common of all; these are present every where in every locality. These shops keep items pertaining to daily use ranging from food and grocery to stationery etc. High street stores have an area ranging between 300-1000 sqft. These stores are generally specialty stores keeping only particular product category. Small departmental stores have area in the range of 500-2000 sqft and these stores generally keep grocery and other daily use items. Specialty stores have an area in the range of 5000-50000 sqft and these keep items pertaining to only one particular product category. Shopping malls come at the top of this retail pyramid and it keeps products ranging all the product categories. Categorization on the basis of products retailed by stores: On the basis of product retailed, we can categorize stores into various types. In fact, the categorization can be as vast as the number of product categories but taking into account the importance of the product category we can divide these retail stores into following types: Food retailing stores. Apparel retailing stores. Pharmaceutical retailing stores. 40

Books, music and life-style / entertainment retailing stores. Fuel retailing stores. Electronic goods retail stores. House furnishing retail stores.

Food retailing stores can be further subdivided into fast food retailing stores, other fresh foods stores and groceries stores and apparel stores can be sub-categorized into women apparel, men apparel and children wear stores. Similarly we can do sub-categorization in accordance with product categories and target segment. Categorization on the basis of ownership arrangement and product categories: On the basis of ownership arrangement and product category, categorization of retail outlets can be done in following manner: Departmental stores Super Market Consumer Durable stores Franchisee Stores

Departmental stores are retail outlets that offer a number of products and a number of brands under one roof. The entire store is divided into a number of departments with each department offering one category of products. These stores offer everything except grocery products. Super markets offer products related to grocery and other food categories. Consumer durable stores can be sub categorized into two, one electronic goods stores, and book & music Stores. Franchisee stores can be categorized into following types: Apparel stores Foot wear stores Gifts and cards Stores Watches Stores Jewelry stores

Categorization on the basis of readiness for riding the retail boom:

41

The organized sector of retailing can also be categorized into three types on the basis of their readiness for off take to participate in the boom. Ready to Go: Those retail categories, which have all inputs in place and all development for the sector to take off has taken place. Shape and Adapt: Those retail categories, which require development in logistics, cold storage facilities and some development in sourcing arrangement. Wait and Watch: These are the retail categories, which are waiting for the regulatory permission to take off. Ready To Go Men's apparel Dry Grocery Electronics/Consumer Shape and Adapt Women's apparel Fresh Grocery Fast Food Wait and Watch Liquor Stores Fuel retail stores Pharmacy Stores

Durables Life Style Products Source: Excerpts from CII- McKinsey report on retailing sector Some of the main factors essential for running a successful organized retail stores are: Location of the store. Sourcing the right merchandise. Developing a promotional plan. Area for moving around and browsing in the store. Ambience of the store (designing, building, and fixturing the stores). Type of staff and its training. Varieties and choices available to the consumer. Leveraging and gaining economic synergies across the locations (operational economies of scale). Factors that would lead to growth in retailing sector are: Increasing growth in disposable income. Increasing demand of products by consumers. Changing life styles. 42

Better product and shopping options available with consumers. Relaxation of a number of regulations by government. Rethinking on existing Real estate laws (like governmental plans for ULCA). Restructuring in Tax regime (like uniform sales tax for all states). Increased investment and focus on infrastructure by government.

Present Situation Indian retailing industry is largely in hands of unorganized sector. There are around 12mn retail outlets across the country, which makes India number one in retail outlet density. There is one outlet serving every 200 consumers. With increasing urbanization and government following the policy of liberalization the industry is waiting in wings to fly and grow at stupendous rates. It is in this anticipation a number of studies and surveys have been done. All these surveys might be differing in statistics but all have one thing in common: the expected boom in the sector. The studies are based on a number of apparent changes that have taken place in the society over past few years with onset of liberalization era in the country. Some of these factors are: Economic reforms ushered in by the central government. Lower import duties & increase in imported goods. Increase in exposure to media. Higher amount of ad-spending by companies. Increase in disposable income. Change in spending and indulgence tendencies. Changing profile of families, shift towards nuclear families. Changing profile of women. Higher level of education among women. More number of working women. Changing life styles. 43

All this led to beginning of a gradual shift in the control on the market from retailers' hands to customer hands. In India presently the retailing market is dictated by retailers and now with a number of new players coming in, the shift has started taking place slowly to consumer dictated market. The organized sector started with first few players setting up stores targeted at upper income bracket of people but slowly the focus was shifted to middle and upper middle class people. Today we have most of these retail stores targeted at middle class and above.

RETAIL INDUSTRY IN INDIA


Till the early nineties, the organized retail industry had not evolved. There was no consumer culture, there were limited brands and people bought what was available. There were no shopping areas. The retail industry lacked trained manpower. It was difficult to compete with the unorganized sector because they operated with minimal labor costs and overheads. Tax laws and government restrictions added the problem. Liberalization has changed all this. Today customer is with more spending power, is better educated, and more importantly, exposed to brands and products through television and foreign trips . The Indian consumer now has the desire to acquire. Personal consumption is on the rise. Customer segments, already diverse, have been subdivided with joint families giving way to nuclear families, and the increasing number of working couples. These changes along with increased availability of retail space and qualified manpower have had a positive impact. New players are now entering the market. Instead of retail evolution, there is a retail revolution in India. The emerging purchasing power of the urban educated middle class and the growing work culture of the working women has changed the buying habits of families, who are experiencing a growth in income and dearth of time. Rising incomes have led to increasing convenience and service. Consumers have started caring about where they would like to shop, be it multi brand outlet, exclusive stores or malls with development around them but are also more demanding. They want superior quality at an affordable 44

price and they want it instantly. Thus, we see that there is a strong trend in favor of onestop shops like malls and supermarkets. The economy of India is the fourth largest in the world as measured by purchasing power parity (PPP), with a gross domestic product (GDP) of US $3.611 trillion. When measured in USD exchange-rate terms, it is the twelfth largest in the world, with a GDP of US $719.8 billion (2005). India is the second fastest growing major economy in the world, with a GDP growth rate of 8.9% $714 at nominal.3 The economy is diverse and encompasses agriculture, handicrafts, textile,
2

at the end of the first quarter of 20062007.

However, India's huge population results in a per capita income of $3,300 at PPP and

manufacturing, and a multitude of services. Although two-thirds of the Indian workforce still earns their livelihood directly or indirectly through agriculture, services are a growing sector and are playing an increasingly important role of India's economy. The advent of the digital age, and the large number of young and educated populace fluent in English, is gradually transforming India as an important 'back office' destination for global companies for the outsourcing of their customer services and technical support. India is a major exporter of highly-skilled workers in software and financial services, and software engineering. India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. The privatization of publicly owned industries and the opening up of certain sectors to private and foreign interests has proceeded slowly amid political debate. Over the past few years the Indian economy has undergone drastic changes- changes that have had the market flooded with multinationals and a variety of products. There has been a sudden upsurge in the Indian industry and exponential growth in specific industries. Todays companies work in a war zone of rapidly changing competitors, technological advances, new laws, managed trade policies and diminishing customer loyalty. Earlier the companies could succeed by producing their products and supporting them with hard selling and heavy advertising. But

45

Todays customer faces a plentitude of products in every category. Customers exhibit varying and diverse requirement for product and service combinations and prices. They have high and rising expectations of quality and service.

Recent Trends in Apparel Industry


The domestic clothing, textiles and fashion accessories market is estimated to be at Rs. 80,000 crore and about 13.6% of this market is believed to be organised. Apparel retail is the largest segment of this sector and accounts For almost 39% of the organised retail sector. The men's apparel market in India, valued at Rs. 32,640 crore for the year 2004, has grown nearly 12 per cent over the previous year in value terms. The women's wear market is estimated to have grown at about 13.4% in the year 2004 over the previous year in value terms. The textile manufacturers were among the first to get into branded menswear in the Indian market. This sector is perhaps the most developed in terms of supply chain sophistication in the branded clothing market. Let us start by understanding the composition of the apparel sector. The apparel sector can be broadly classified into Men's apparel, Women's apparel and Children's wear. Each of them can be further classified into Formal, Casual, Indian wear, Inner wear, Sports wear and Accessories, as is illustrated in Figure given below:

Apparel Menswear
Women wear Children's wear

Formal

Casual

Indian Kurta Pyjama Dhoti Kurta Sherwani

l Shirts Trouse rs Blazer s/ jackets Suits T Shirts Shirts Jeans Casua l Trous ers

Sportswea r Track Suits Shorts T Shirts

Accessori es Belts Ties Socks

Innerwear Vests Briefs

46

The same classification can be reworked for women's wear and children's wear. Thus we can see that this sector has many classifications and sub-classifications adding to the complexity and the competitiveness of this sector. Apparel Retail in India is characterised by the existence of a large number of regional, national and international brands. Another important characteristic is that retail occurs through multiple formats, for example an Arrow shirt would be retailed through stores like Shopper's Stop, Pantaloon, etc. and also through the company's own retail outlets. In menswear, the key players are Arvind Brands, Madura Garments, Raymond's/Park Avenue. It is estimated that by the end of 2009, the domestic: market for textiles and clothing should touch or exceed Rs. 110,000 crore. At that size, it would be in the top 15 markets in the world even when we consider the substantially lower retail price points in India. The key brands in menswear are indicated in Table given below. Formal wear Arrow Louis Phillippe Van Heusen Park Avenue Casual wear Allen Solly Color Plus Dockers Benetton Wills sport Table: Key Menswear Brands In India, a national brand in Womenswear is virtually non-existent. Most branding that is visible in women's wear is only in the western casual clothing segment. However, this is a growing segment where sizeable opportunities exist in the women's ethnic wear, lingerie and maternity clothing. Allen Solly, a leading brand in menswear, has entered the women's western wear market. Denims Levi's Lee Wrangler Pepe Ruf n Tuf Sportswear Reebok Nike Adidas -

47

Local manufacturers again rule a large section of the children's clothing market though a few national brands like Gini & Jony and Ruff Kids have emerged in the market. Invariably, these brands started by retailing within larger department stores before setting up their own and franchised retail outlets. Apparel retail occurs through a company's own outlets or through the multi brand outlets. Over the past few years, this sector has seen the development of private labels by many department stores. In fact, Westside focuses strongly on private labels only. Opportunities, Challenges The biggest fillip to the industry would be provided by the growth of organized retailing. As more shopping malls open, adding thereby a few lakh square feet of retail space, garment manufacturers will have many more options to peddle their merchandise. This phenomenon cannot, however, be looked at in isolation and needs to be examined in the perspective of retail outlets also promoting their in-store brands (see related story for more details). Retailers' Challenge THE big opportunity that has presented itself before manufacturers of readymade garments today is the growth of organised retailing. As players such as Shoppers Stop, Lifestyle and Globus embark on ambitious plans to ramp up the square footage of organised retail space, branded readymades will have more shelf space to display their merchandise. INDUSTRY SNAPSHOT Branded readymade apparel market for men estimated at about Rs.5,000 crore, expected to grow at 15 per cent Industry characterised by a high degree of fragmentation Leading players include Madura Garments (about Rs.350 crore}, Arvind (about Rs.275 crore) and Raymond (about Rs.350 crore, after acquisition of Color Plus) Other major players include Zodiac, Wills Lifestyle, Provogue, Indus League, Bombay Dyeing and Levi's 48

Distribution through a combination of exclusive brand stores and multi-brand outlets

Branded garments retail either through an exclusive brand outlet (EBO), where only the merchandise of a particular company is showcased, or through a multi-brand outlet (MBO) which stock multiple brands under one roof. Location in upmarket areas that has sizeable catchment, and an ambience that spells class and sophistication, large retail stores are but a logical destination for branded apparel makers. The retail equation has to be seen in the context of the emergence of in-store brands such as Stop, of Shoppers Stop, and Oak Valley, of Globus. As in-store brands gain greater prominence, it is only natural that the retailing outfits would seek to promote them by allocating a greater floor area for display. After all, a retail outfit would stand to make higher margins on its own brands compared to the others that it stocks. Top-end brands are a big draw among customers visiting a large retail store, as they facilitate comparison-shopping and shoppers are not tied down to choosing just one brand, which is what happens in the case of an EBO. This places the retail outlets in a quandary. They would not be willing to let go of the footfalls that the various brands that they stock generate and, at the same time, would want to boost revenues from their in-store brand, which is a more lucrative proposition. The onus would then fall on the retailers to arrive at a balance between these conflicting issues to ensure that their interests, as also that of the other brands they stock, are best served. Finally, the rules for success when it comes to a going-to-market strategy are not cast in stone. It does pay for a company to be format-agnostic, and ensure that its brands are available at all points where a prospective customer is likely to visit. As more consumers realize the convenience of readymade garments, it will only serve to hasten the transition from tailored clothing. Unlike in the West, where tailoring is a more expensive alternative to readymade clothing and makes a fashion statement, it is more

49

preferred in India, especially for those who look at it as a lower priced option vis--vis branded ready-to-wear. The price differential between tailored clothing and ready-mades is partly because of the excise duty on the latter. The industry would, naturally, like to see a reduction from the current level, as it would make ready-mades more affordable. Another challenge confronting Indian garment manufacturers is the need to devise strategies once the quota on garment exports is abolished in 2005. With garments accounting for nearly 50 per cent of overall textile exports, the threat from lower-cost producing nations is real. To counter the potential loss of revenue, Indian garment exporters are gearing up to launch ready-mades in the domestic market. Conversely, there is also the likelihood of a wide variety of fabric coming into the country, providing the exporters opportunity to be creative with their design. Women's western wear is another segment that is likely to see action. With increasing urbanization, the demand for such clothing is likely to rise significantly. It would also pose a challenge to retailers in terms of how they re-jig their stores to appeal to the more demanding fairer sex. Both opportunities as well as challenges abound for players in the readymade garments business. Substantial investments made in brand building and in establishing customer niches will ensure that they further build on the gains they have made. At the same time, brand strategists will have their plate full when it comes to entering territories such as women's or kids wear, or taking advantage of emerging retail opportunities. Capitalizing on these opportunities will ensure that the garments industry is clothed in success.

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Survey Analysis
(From Customers) OTHER INFORMATION: Age: Less Than 20 Yrs 18 21-35 Yrs 23
56 Yrs & above 23%

36-55 Yrs 17
Less Than 20 Yrs 24%

56 Yrs & above 17

36-55 Yrs 23%

21-35 Yrs 30%

Interpretation: In the survey respondents were chosen from all age groups so as to get a view on the purchase behaviour for apparel all segments. The respondents were chosen randomly. Both male and respondents were contacted for the survey. Marital status: Single 21 Married 54

Single 28%

Married 72%

Interpretation: In the survey 72% respondents were married. 28% respondents were single and most of them were students.

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Educational Information: (tick one)

Self Spouse
40 35 30 25 20 15 10 5 0 18

SSC/HSC 18 18

Graduate 36 21

Post-graduate 11 15

36

21 18 15 11

SSC/HSC

Graduate Self Spouse

Post-graduate

Interpretation: In the survey respondents were from different educational background. This would help in gauging the buying behaviour of different segments.

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Occupation: Occupation Businessman Executive Government Service Academics House-Wife Self-employed Student
Self-employed 16%

No. of Respondents 16 13 6 2 11 9 18
Student 0% Businessman 27%

House-Wife 19%

Academics 4%

Government Service 11%

Executive 23%

Interpretation: The survey was conducted using convenience and respondents with different occupational background were selected. The buying behaviour for apparel is different for students who need trendy/casual clothes while people in service need formal clothes.

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Monthly Household Income: < Rs.10000 Rs. 10000Rs.15000 6


> Rs. 20000 25%

Rs. 15000Rs.20000 19
< Rs.10000 8%

> Rs. 20000

31

19

Rs. 15000Rs.20000 25%

Rs. 10000Rs.15000 42%

Interpretation: Buying behaviour is dpenedent on the househuls income of individuals. The surveyor has analysed the buying behviour of individuals based on their buying power i.e. househols income. Accommodation My own house 24 Company provided 8
My ow n house 32%

Rented Accommodation 43

Rented Accom moda tion 57%

Company provided 11%

Interpretation: 57% respondents were living in rented accommodation, 11% were living in company provided accommodations while 32% respondents were living in their own house.

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1. Which of the following fashion brands are you aware of? Brands Allen Solly Dockers Parx Blackberrys Proline Zodiac Provogue Park Avenue Louis Philippe Van Heusen Peter England Excalibur Arrow
80 70 60 54 50 40 30 23 20 10 0 21 21 11 45 45 75 67 58 61 56

No. of Respondents 75 23 45 21 11 54 67 45 58 61 75 75 56
75 75

Allen Solly Dockers Color Plus Parx Blackberrys Proline Zodiac Provogue Park Avenue Louis Philippe Van Heusen Peter England Excalibur Arrow

Interpretation: Most of the respondents were aware of Allen Solly, Peter England, Excalibur, Provogue and Louis Philippe. While very few respondents were aware of the Proline and Blackberry. Only few respondents were aware of Dockers as these brands mostly cater to the higher income group.. 2. Which of the following brands of Denim are you aware of? Denim Brands Lee Dockers No. of Respondents 34 23

55

Levis Strauss Wrangler Numero Uno Pepe Monte Carlo Lee Cooper
70 60 50 40 30 20 10 0 34 23 45 34 34 36 45 69

45 69 34 34 36 45

Lee Dockers Levis Strauss Wrangler Numero Uno Pepe Monte Carlo Lites Lee Cooper

Interpretation: Most of the respondents were aware of Wrangler. Other brands were also known to almost 50% of the respondents. Denim brands were popular in both male and female segment.

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3. How often do you purchase your readymade garments? Frequently 56 Occasionally 19

Occasionally 25%

Frequently 75%

Interpretation: 75% respondents purchased readymade garments frequently i.e. on regular intervals. While 25% respondents purchased the readymade garments occasionally. 4. How often do you purchase clothes? Once a week 9 Once in a months 45
Once in 6 m onths 5%

Once in 3 months 17
Once a w eek 12%

Once in 6 months 4

Once in 3 m onths 23%

Once in a m onths 60%

Interpretation: 60% respondents purchase clothes once in a month, while 23% respondents purchase clothes once in 3 months. While 12% respondents purchased clothes once a week and 5% purchased clothes once in 6 months.

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5. Factors you consider while purchasing a readymade garments. Factors Cloth type Color Brand Fashion/Trend Price Availability
80 70 60 50 40 30 20 10 0 56 49 34 39 Cloth type Color Brand Fashion/Trend Price Availability 75 75

No. of Respondents 56 75 49 34 75 39

Interpretation: The most important factor affecting the purchase of the readymade garments as depicted above is price and color of the garment. The next important factor is cloth type followed by brand. Availability and Fashion trend are the important but do not affect the purchase decision to that extent.

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6. Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement. Agree Neither Agree Nor A. I buy clothes I like, regardless of current fashion. B. I buy new fashion looks only when they are well accepted. C. I am not as concerned about fashion as I am about modest prices and wear ability. D. I prefer to buy well-known designer labels rather than take a chance on something new. E. I am confident that I have good taste in clothing.
70 60 50 40 30 20 10 0 Agree Neither Agree Nor Disagree Disagree A B C D E

Disagree

54 11 45 7 34

Disagree 21 45 16 67 41

19 14 1

Interpretation: After the survey it can be concluded that people buy clothes regardless of the current fashion. Also it is clear that people do not wait new fashion to be accepted but here can say that the concept of individualism is applicable to purchase of readymade garments. People are concerned about the price and wear ability. Designer Labels do not affect the purchase behavior for most individuals and they are popular amongst the Higher Income Groups. 7. Who influences you to purchase the brand?

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Family 37

Friends 11

Advertisement 8

Self 19

Self 25% Family 49%

Advertisement 11% Friends 15%

Interpretation: The most important influencer in purchase of a particular brand are the family members, followed by individuals themselves. Advertisements and friends affect the buying behavior of the younger generations. 8. Where do you shop regularly? Super Market 26 Local Market Store 49

Super Market 35%

Local Market Store 65%

Interpretation: 65% respondents prefer to buy readymade garments from stores in local markets while 35% respondents prefer to buy them from super markets. 9. How many times in a month do you visit the market?

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Super Market Local Market

1-3 times 19 27

3-7 times 5 13

7-10 times 2 9

30 25 20 15 10 5 0 19

27

13 9 5 2 1-3 times 3-7 times 7-10 times

Super Market Local Market

Interpretation: As evident from the above bar graph most of the people mostly visit the market 1-3 times in a month. While very few people visit market more than 3 times in a month. Usually people visit markets on weekends for organized purchases while for non-organized that includes day to day purchases are done on regular basis.

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10. Where do feel you get a better bargain? Super Market 18 Local Market 57

Super Market 24%

Local Market Store 76%

Interpretation: 57% Respondents feel that they get better bargain in local markets while 24% respondents feel that they get better bargain in super markets. Respondents prefer multi brand outlets for purchase of readymade garments.

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11. Which of the following factors influence your decision to shop at a supermarket and not at the Local market or vice versa? Factor Range of products Accessibility Ease of purchase Store timings Behavior of sales personnel Incentives Special services Facility to examine product Personal relations with store
80 60 40 20 0
R ange of pro ducts Store timings Special services A ccessibility B ehavior of sales perso nnel F acility to examine product

Supermarket 43 18 39 49 31 61 44 72 23
72 61 43 18 49 39 31 44 23 32 57 36 26 14 44

Local Market Store 32 57 36 26 44 14 31 3 52

52 31 3

E ase o f purchase Incentives P ersonal relations with sto re

Interpretation: The most important factor in favor of supermarkets is the facility to examine many brands under one roof, store timings and the incentives one gets ion frequent purchases and ongoing-sales promotions. The factors that go in favor of local markets include accessibility and personal relations with store owners.

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12. What attract most to you in the organized apparel stores Product Range 54
60 50 40 30 20 10 0 Product Range Price Popularity New Arrivals 11 27

Price 48

Popularity 27

New Arrivals 36

Customer Service 11

54 48 36

Customer Service

Interpretation: The most important factor that attracts people to organized apparel stores include the product range followed by price and the new arrivals. Organized stores display the complete range of products for the apparel brands and usually have fixed prices that makes people comfortable in making purchase decisions, they change the merchandise on regular intervals.

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Q13 In which period do you like most to shop? As Hobby Weekend Discount/ Sale Period 2 12
Whenever needed 7%

Festival Season 30

Whenever needed 5

26

As Hobby 3%

Weekend 16%

Festival Season 39%

Discount/ Sale Period 35%

Interpretation: Most of the respondents like to purchase apparels during festival season and discount/sale period. Indian calendar is full of festivals and with organized stores using festivals as a means of sales promotion people get the best bargains during festival seasons and discount sales.

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Q14. How do you find out information about apparel? TV Radio General newspapers or magazines Specialist magazines Direct mail Leaflets In my local outlet From friends or colleagues From sales reps From special exhibitions or seminars
50 40 30 20 10 0 TV General new spapers or m agazines Direct m ail In m y local outlet From sales reps Radio Specialist magazines Leaflets From friends or colleagues From special exhibitions or sem inars 18 12 7 6 30 46 47 49

18 7 46 30 6 47 12 49 31 18

31 18

Interpretation: Most of the respondents prefer to get information on apparels from friends and colleagues, leaflets and newspaper and magazines. These are the media that most of the fashion brands usually advertise their brands on.

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Q15. Which is your favorite brand? Van Heusen Zodiac Peter England Black berry Cantabil Park avenue Allen Solly
7 6 5 4 3 2 1 0 Van Heusen Cantabil Zodiac Park avenue Peter England Allen Solly Black berry 4 3 2 1

4 3 6 1 5 2 7
7 6 5

Interpretation: The most popular fashion brand is Allen Solly followed by Peter England and Zodiac.

Q17. How much portion of your income you have spent on cloths/apparel? Interpretation: Respondents usually spent around 25-35% of their income on clothes and apparel.

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FROM RETAILERS Retailer Profile Branded Stores Specialty Stores Discount Stores Shopping Malls 12 2 4 2

Shopping Malls 10% Discount Stores 20% Branded Stores 60%

Specialty Stores 10%

Interpretation: Retailers surveyed were mostly apparel outlets. 60% respondents were branded apparel stores. Retailers in shopping malls and specialty and discount stores owners were contacted to get their view on the Indian Apparel Industry.

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Segment Textiles and clothings Jewellery Consumer Durables Footwear Books and music
10% 10%

11 1 4 2 2

20% 5% Textiles and clothings Consumer Durables Books and music Jewellery Footwear

55%

Interpretation: Retailers across all segments were surveyed in order to get the retailers opinion on the changing buying behaviour of urban class.

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Do you think large organized stores would be controlling a substantial portion of the retail trade? Yes 11 No 9

No 45% Yes 55%

Interpretation: 55% respondents agree that think large organized stores would be controlling a substantial portion of the retail trade while 45% respondents disagree to this. Do you think that the balance of power between retailers and manufacturers will shift towards the retailers? Yes 8 No 12

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Yes 40%

No 60%

Interpretation: 40% respondents think that the balance of power between retailers and manufacturers will shift towards the retailers while 60% disagree to this. The important change in the recent years in Indian retail scenario is the entry of garment manufacturers into retail. The big names in Garment Industry have come up with branded outlets for their own brands. What are the difference between the Local market store and Supermarkets? Super markets 13 12 16 17 14 16 13 Local markets 7 8 4 3 6 4 7

Price Quality Product Range Convenience Personal service Payment Methods Working Hours

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18 16 14 12 10 8 6 4 2 0

16 13 12

17 14

16 13 8 6 4 3 No Quality Personal service Product Range Payment Methods 4

Yes Price Convenience Working Hours

Interpretation: Supermarkets score better over local markets on all the parameters from the retailers perspective. Do you think India has a potential in the Retail industry? Yes 20
No 0%

No 0

Yes 100%

Interpretation: All the respondents agree that Indian Retail has a very good potential and that is why many corporate houses have entered the retail sector. They also pointed that Rural India will drive most of the retail sectors growth in future.

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Do you think that organized retail will provide many opportunities both to existing players as well as new entrants? Yes 17
No 15%

No 3

Yes 85%

Interpretation: 85% Retailers agree that with the changing consumption pattern in rural and urban Indian and increasing consumer buying power organized retail will provide many opportunities both to existing players as well as new entrants Do you think India is prepared for open competition? Yes 13 No 7

No 35%

Yes 65%

Interpretation: 65% respondents agree that India is prepared for open competition in retail sector while 35% disagree to this.

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Is Technology important in retail sector? Yes 20


No 0%

No 0

Yes 100%

Interpretation: All the retailers agree that technology is very important in managing the modern retail. Technology has changed the every aspect in retailing that includes store operations, supply chain management and inventory systems. Do you anticipate the need for Changed Architectural Designs in Retail Sector? Yes 20
No 0%

No 0

Yes 100%

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Interpretation: All the retailers anticipate the need for Changed Architectural Designs in Retail Sector and with changing consumer buying behavior every aspect related to store designs affects the consumer loyalty towards the stores. Do you think that consumer perception about shopping has changed in recent times? Yes 20 No 0

No 0%

Yes No

Yes 100%

Interpretation: All the retailers interviewed agree that the consumer perception about shopping has changed over the recent times. This they account to the increased awareness, purchasing power, and the increased options of shopping malls.

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What factors, according to you, influence customers decision for buying from a particular store?

Range of products Accessibility Ease of purchase Store timings Behavior of sales personnel Incentives Special services Facility to examine product Personal relations with store

15 7 12 8 14 18 6 18 12

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20 18 16 14 12 10 8 6 4 2 0 8 7 6 12 15 14 12 18 18

Product Range Accessibility Ease of Purchase Store Timings Behaviour of Sales Person Incentives Special Services Product Examination PR

Interpretation: The retailer perception about factors influencing customer decision process matches the pattern of responses from the customers with slight changes. According to retailers Incentives like discounts/sales and facility to examine variety of products under one roof facilitates the consumer decision process. Product range plays a vital role with 15 retailers underlining its importance. Ease of purchase, Sales personnels behavior and PR follows. Unlike customers the retail managers doesnt think store timings as a hurdle. According to them customers would not care about accessibility and special services like home delivery if he will to buy these days.

Hypothesis Testing Analysis of variance (ANOVA) is used to test hypotheses about differences between two or more means. The t-test based on the standard error of the difference between two means can only be used to test differences between two means. When there are more than two means, it is possible to compare each mean with each other mean using t-tests.

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In practice, there are several types of ANOVA depending on the number of treatments and the way they are applied to the subjects in the experiment:

One-way ANOVA is used to test for differences among two or more independent groups. Typically, however, the One-way ANOVA is used to test for differences among three or more groups, with the two-group case relegated to the t-test (Gossett, 1908), which is a special case of the ANOVA. The relation between ANOVA and t is given as F = t2.

One-way ANOVA for repeated measures is used when the subjects are subjected to repeated measures; this means that the same subjects are used for each treatment. Note that this method can be subject to carryover effects.

Factorial ANOVA is used when the experimenter wants to study the effects of two or more treatment variables. The most commonly used type of factorial ANOVA is the 22 (read: two by two) design, where there are two independent variables and each variable has two levels or distinct values. Factorial ANOVA can also be multi-level such as 33, etc. or higher order such as 222, etc. but analyses with higher numbers of factors are rarely done because the calculations are lengthy and the results are hard to interpret.

When one wishes to test two or more independent groups subjecting the subjects to repeated measures, one may perform a factorial mixed-design ANOVA, in which one factor is independent and the other is repeated measures. This is a type of mixed effect model.

Multivariate analysis of variance (MANOVA) is used when there is more than one dependent variable.

In this study we have applied ANNOVA (One way) as the only dependent variable was income levels. ANNOVA was applied putting income as dependent variable and who influences, factor influencing in super market, attract most in apparel store, which period shop most, favorite brand income spent on apparel and shopping behavior for clothes as independent variables.

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Variables Entered/Removed (a) Variables Entered Method Shopping Stepwise (Criteria: Probability-of-F-to-enter <= .050, behavior Probability-of-F-to-remove >= .100). for clothes a. Dependent Variable: income Unstandardize d Coefficients Std. B Error (Constant ) Shopping behavior for clothes 2.756 .304 Standardized Coefficients Beta 9.06 3 .000 95% Confidence Interval for B Lower Upper Bound Bound 2.154 3.359

Model 1

Table 1: Mode l t Sig.

.162

.082

.179

1.98 2

.050

.000

.324

a. Dependent Variable: income; independent : Shopping behavior R- square = .059 Table 1 shows that the income has direct relationship with shopping behavior and this means that higher the income higher the tendency to go for shopping. R square value is 0.59, which shows that the probability rate for going for shopping in higher income levels is about 59%. Coefficient Correlations (a)

Model 1

Shopping behavior for clothes Correlations Covariance Shopping behavior for clothes Shopping behavior for clothes 1.000 .007

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a. Dependent Variable: income Coefficient correlation (a) value of 1.000 and covariance value of .007 also justifies the presumption.

Table 2: Excluded Variables (b) Co Partial Beta In 1 2 Who influences Factor influencing In 3 super market Attract most in apparel 4 store Which period -.091(a) .026(a) -1.008 .291 .316 .772 -.093 .027 1.000 1.000 t Sig. Correlation linearity Statistics Tolerance .117(a) 1.299 .197 .119 .998

-.037(a)

-.405

.686

-.037

.994

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5 6

shop most Favorite brand Income spent

-.072(a)

-.796

.428

-.073 .019

1.000 .998

.019(a) .210 .834 on apparel a. Predictors in the Model: (Constant), shopping behavior for clothes b. Dependent Variable: income

When the same test is applied to other variables as mentioned in 1-6 though some partial correlation has been found on period of shopping and income spent on apparel other factors do not directly influence the spending behavior of the respondents.

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CHAPTER 5 CONCLUSIONS & RECOMMENDATIONS


1. The apparel market in retail in India is huge and has promising and steady year-onyear growth of 10.7%during the last two years. Indian Apparel Market Size 2002>2006 (Value & Volumes)
120000 100000 80000 60000 40000 20000 0 2002 2003 2004 Value 2005 Volume 2006 61290 44219 69330 46097 77740 48078 88340 50335 101300

52979

Clothing, Textiles & Fashion Accesories Market Share 2006 (Tot Mkt Size: Rs113,500 Cr)
Non-Apparel Accessories, 11 Uniforms, 8 Kidswear, 13 Unisex Apparel, 7

Menswear, 32

Womenwear, 29

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2. The Great India story is fuelling the Retail sector and also the interest of foreign investors for Retailing in India. India tops AT Kearneys list of emerging markets for global retailers. The second fastest growing economy in the world, the 3 rd largest in terms of GDP, and 4th largest in PPP. Also, some of the most accepted corporate ethics like labor laws, IPRs etc have been properly laid out. The Indian retail market is gradually but surely opening up. 3. The Indian consumer is youngest in the world as compared to other aging population countries like US, UK, China.
Share of Population by Age Group
100% 80% 60% 40% 20% 0% 1996 2001 0-19 20-34 2006 35-54 55+ 2010 est 47 45 42 39 9 19 24 10 20 24 11 22 26 12 24 27

Young consumers and rising disposable increases the consumption especially in fashion and lifestyle segment. 4. The nuclear family trend is giving way with nearly 1.5 2 % joint families giving rise to nuclear ones every year. The double income no kids (DINK) segment is also making its presence felt. The consumer is willing to pay more if it ensures freedom from hassles. With average salary being hiked about 14% the consumption seems to rise in the India story.

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5. The single brand outlets have gained momentum but still the traditional retailers dominate. Benetton, Marks & Spencer though have made their presence felt with their single brand outlets, most prefers shop-in-shop arrangement with likes of Shoppers stop, Westside, Lifestyle etc. 6. The ready to wear is getting popular. Also, there is increment in the market share of Branded and private labels. 7. The consumer trend for buying has also changed due to all these changes in the retail environment. The growing media and increasing competition has induced the awareness. The consumer now has a higher level of satisfaction and the buying decision isnt based on traditional criteria. 8. Shopping nowadays is a family outing for many. It gives breath of relaxation from the mundane routine. He thus prefer malls wherein he can have space to move, products to choose and ambience to enjoy. 9. Indian consumer today is not afraid of innovation and readily accepts newer ideas. He is willing to break traditional barriers in lieu of doing something exciting. 10. The Retailers thus must look into the ambience, service structure, incentives and product range in greater depths for success. Sooner when FDI will be permitted in the sector, the infusion of funds will further add tools in the arsenal of innovating retailers. 11. The Indian retailer must start preparing to compete against foreign ones as and when the sector will be opened for global players. 12. It is found that the retailers that carry the knowledge about the changing consumer buying patterns are performing well and above those who are innocent.

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Retailers thus should recognize those factors, perform a SWOT for their store and thus innovate strategies to tap the potential.

Questionnaire
(Consumer) 1. Which of the following fashion brands are you aware of? 2. Which of the following brands of Denim are you aware of? 3. How often do you purchase your readymade garments? o Frequently o Occasionally 4. How often do you purchase clothes? o Once a week o Once in month o Once in 3 months o Once in 6 months 5. Factors you consider while purchasing a readymade garments: o o o o o Color Brand Fashion/Trend Price Availability

6. Listed below are statements about shopping behavior for clothes and clothing fashions. Please check one box for each statement to indicate the extent to which you agree or disagree with each statement: o I buy clothes I like regardless of the current fashion. o I buy new fashion clothes only when they are well accepted. o I am not concerned about fashion as I am concerned with price and wear ability o I prefer to buy well known fashion labels/brands rather than take a chance on something new. o I am confident that I have good taste in clothing. 7. Who influences you to purchase the brand? 85

o o o o

Family Friends Adverts Self

8. Where do you shop regularly? o Malls/Supermarkets o Brand outlets o Local Market Stores 9. How many times in a month do you visit the market? o 1-3 times o 3-7 times o 7-10 times 10. Where do you feel you get a better shopping experience? o Shopping Malls o Local Stores o Brand Outlets 11. Which of the following factors influence your decision to shop at a supermarket and not at the Local market or vice versa? o o o o o o o o o Product Range Accessibility Ease of purchase Store timings Behavior of sales person Incentives Special services (like home delivery) Facility to examine product Personal relations with the store

12. What attract most to you in the organized apparel stores? o o o o o Product Range Price Popularity New arrivals Customer service

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13. In which period do you like to shop the most? o o o o o As a hobby Weekend Discount/Sale period Festival season Whenever needed

14. How do you find out information about apparel? o o o o o o o o o TV Radio Newspaper/Magazine Specialist Magazines Direct mails Leaflets From friends & colleagues Exhibitions I visit the markets to gather information

15. Do products places or as seen in sops/serials on TV consciously influence your buying decision? o Yes o No 16. How much portion of your income do you spend on clothes/apparel? Personal Information: Name Age Marital Status Education o SSC/HSC o Graduate o Post Graduate Occupation : : : :

Questionnaire (Retailer)

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1. Do you think large organized stores would be controlling a substantial portion of the retail trade? a. Yes b. No 2. Do you think that balance of power b/w manufacturers and retailers will shift towards the retailers? a. Yes b. No 3. Do you think India has a potential in the Retail industry? a. Yes b. No 4. Do you think that organized retail will provide many opportunities to both existing players as well as new entrants? a. Yes b. No 5. Do you think India is prepared for open competition? a. Yes b. No 6. Is Technology important in retail sector? a. Yes b. No 7. Do you anticipate the need for Changed Architectural Designs in Retail Sector? a. Yes b. No 8. Do you think that consumer perception about shopping has changed in recent times? a. Yes b. No 9. What factors, according to you, influence customers decision for buying from a particular store? a) b) c) d) e) f) g) h) i) Product Range Accessibility Ease of purchase Store timings Behavior of sales person Incentives Special services (like home delivery) Facility to examine product Personal relations with the store

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10. Do you think that customers who carry information are tougher to convert than the ones without information? a. Yes b. No 11. How many customers visit your store on weekly basis? (Approx.) 12. How many visitors buy the products from the store? (Approx.) 13. How do you advertise your store and do you think that advertising affects customers buying decision?

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References
1. The Emerging Retail Landscape, Business Today Survey, 2005. http://www.businessworld.in/content/view/1121/1177002F 2. India Apparel Report 2007, Madura Garments. 3. www.google.com 4. www.wikipedia.com. 5. Emerging Trends for the Retailing Industry, Jagdish N Sheth 6. FDI in Retail, Report by Ministry of Commerce. 7. Living It Up, India Today, 2005 Aug. Edition. 8. http://www.thehindubusinessline.com

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