Weaving the tradition
Weaving the tradition • Tell about your concept in first two slides • Make a story around your concept • Only Put SWOT ( Incorporating, PEST and 5 forces) • SWOT needs to be corrected • Check initial investments, spelling mistake • Give end list of references MARKET POTENTIAL Popularity of indo western clothing all over the world is growing. These clothes are also very popular in the western fashion industry. http://hubpages.com/hub/indo-western-fashion With the growing segment of people with more disposable incomes, western women’s wear brands are busy tweaking their product-line to an emerging ‘Indo-western’ genre in fashion. (http://economictimes.indiatimes.com/articleshow/4416634.cms Designer Indo-western women outfits are selling like hot cakes in the market. It has become the fashion style of Indian women. (http://www.indobase.com/fashion/women-fashion/apparels/indo-western/) The number of working women with larger disposable incomes has gone up. Combine that with higher fashion aspirations and the need to dress well," says the chief category manager in pantaloons, are the reasons for the boom in the market. (http://www.outlookindia.com/article.aspx?224681) Indo Western dresses are easier to manage and looks more elegant pretty much like their Western counterparts (http://www.adamsavenuedesign.com/churidar-designs-cutting/) Latest haute couture wardrobe is a group of Indo-western styles http://www.beautytwist.com/tag/fancy-dress/page/3/ According to the Clothing Manufacturer’s Association of India (CMAI), the volume of women’s Indo Western wear produced is up from 3,136.34 million pieces in 2001-02 to 5,130.554 million pieces in2005-06. http://www.dnaindia.com/lifestyle/report_desi-chic-set-to-nudge-ethnic-fare-out-of-fashion_115721 PEST ANALYSIS POLITICAL • Post 2005, removal of quota system gave a lot of boost to the industry. • The industry, already struggling mainly on account of high costs, will be further suffocated with the increase in the excise duty • other countries have Imposed non-tariff barriers on Indian exports of Textiles. Safeguard measures on Import of cotton yarn from India were also sought to be imposed by Egypt and Peru.( http://www.fibre2fashion.com/industry-article/26/2539/non-tariffbarriers-protectionism-in-disguise2.asp) ECONOMIC • Indian apparel exporters seek special considerations as the sector adds exceptional value to export revenue generation. They expect the Government to encourage large scale investment and take initiatives to minimize production, and transaction costs. They also seek Government action in emphasizing price stability in the domestic sector • Since April 2007, as there has been sharp rise in the value of Rupee, there is a severe impact on the export growth rate . Indian apparel industry has been badly affected by appreciation of rupee. • (http://www.docstoc.com/docs/15619997/Effect-of-Rupee-Appreciation) Social Technology • India presently has entered the second phase of growth and is witnessing a massive rise in the domestic demand. This is primarily due to the rise in the standard of living caused by the rise in the middle-income groups. . • Increase in disposable income of the people • Today, consumers have become more fashion conscious. They like to experiment new products or fashion which is available in the market. They are mostly early adopters. • Indo-western is basically a fusion of Indian traditional outfits and western apparels. A marvellous collection of Indo-western range is in vogue now days • Even the funds allocation under the Technology Up gradation Fund (TUF) scheme has not been increased in the budget of 2010-11 • To encourage additional participation, the Government recently reduced interest rates to 2.5-3.0 percent for investments made by larger cotton-processing units. • In 2001, the Government established the high-level Technology Mission on Cotton (TMC) to direct, coordinate, and fund initiatives to raise the productivity and quality of Indian cotton and strengthen returns to growers. • http://www.strategylabs.net/search-pest-analysis-of-the-textileindustry-of-india_p9.asp 5 FORCES RIVALRY THREAT OF SUBSTITUTE BUYER POWER SUPPLIER POWER BARRIERS TO ENTRY • Limited number of competing firms in organised retail- fabindia, anokhi, biba and W. • Well established brands • Designer ready to wear collection . • Unorganised retail is a huge market for fusion clothing • Inexpensive substitutes for fusion wear are available • In India the boutiques provide customised garments • Rising income level enables large number of buyers • Inclination towards international clothing • Availability of more choice • Consumers are price sensitive • Demand for high quality, style and pleasant buying experience. Large number of supplier Product differentiation is high Low barriers to enter the market from the side of the government and the competition is high The presence of established strong brands within a market can be a barrier to entry Brand identity SWOT ANALYSIS STRENGTHS Availability of all indo western clothing under one roof WEAKNESS Providing designer wear at low prices Lesser acceptance in some parts of India Providing wide variety of prints that are not available with the competitors No prior business experience Different colour palette would be used season wise which depends on colour forecast of that season A ready to wear apparel that can be wear both casual &formal occasions. SWOT OPPORTUNITIES THREATS Less competitors Can be a fad Increasing inclination towards WESTERN look Competition from unorganized market that provide indo western wear at cheaper prices Untapped market People more fashion conscious, experimental Competition from established and known brand among the customer like Anokhi and Fabindia To go global Duplicity of prints and styles Increasing disposable income with youngsters COMPETITOR & EXISTING PLAYER GLOBAL COMPETITOR Desigual is a streetwear brand based in Barcelona, Spain. Founded in 1984 by the Swiss Thomas Meyer. Desigual, famous for its patchwork designs. Desigual shops can be found worldwide Each season the Desigual design team, comprising 25 designers, prepares a collection of over 1,000 items, counting clothes and accessories, built around one single concept, one common thread that makes the line whole resonate to the same philosophy. Real Life, Magic Stories, Luxury Feelings, Me&You, Better&Better, Wow, Life is Cool, All Together and Handmade are some of the leitmotifs that Desigual has brought to the fore. http://www.desigual.com/#/home/ http://www.desigual.com/#/home/store known brands catering to indo-western wear 25% 22% 18 -24 Yrs 11% 25-31 Yrs 5% 5% 5% 3% 5% 3% 2% 2% 5% 3% 3% 2% 2% 2% 2% 2% USP OF FABINDIA Promoting Indian crafts and weavers in its products F A B I N D I A P R I N T S 2 CATEGORIES IN WOMEN WEAR WOMEN INDIAN – Long kurtis, short kurtis, supershort kurtis and churidars( core products) Target customer- 21 years and above WOMEN WESTERN- semiformal, skirts, dresses, tunics, trousers, short kurtis in western styles( core products) Target customer- 18 years and above Price range- Rs 360- Rs 1190 ( basic garments) Rs 1200- Rs 2490 ( fashion basic) PREMIUM PRODUCTS( SILK, HAND EMBERIODERY ETC)- fashion garments- Rs 2500- 4000 WOMEN WESTERN CLOTHING CRM SYSTEM OF FABINDIA Fabindia does not follow any customer acquisition strategy. It instead focuses on customer Retention. It constantly attempts to improve the quality of the products in order to retain its customers. The company concentrates on customer feedback by maintaining a visitors’ register to record customer views Fabindia also has the Mystery Shopper Program to gauge the customer satisfaction level.Mystery shoppers posing as normal customers perform specific tasks such as purchasing a product, asking questions, registering complaints or behaving in a certain way and then provide detailed reports or feedback on their shopping experiences to the management CRM software has been implemented in a select few stores which aims to help in maintaining a centralized database. This will help Fabindia in retaining customers by building lasting relationships and improving loyalty Has a product selection committee which reviews the position of the store periodically on the basis of the report of the store manager. As he is always present in the store, he knows what does a customer feels and likes. Moreover, they have a customer comment register, in which he can write something if he wants. SEGMENTATION Geographics Demographics TIER 1, TIER 2, TIER 3 CitiesDELHI, AGE- 16-35 YEARS MUMBAI, KOLKATA, PUNE, SHIMLA, CHENNAI, JODHPUR INCOME- GENDER- FEMALE International Market- OCCUPATION- STUDENTS, CANADA, US ,UK WORKING PROFESSIONALS, HOME MAKERS, BUSINESSWOMEN Psychographics ATTITUDE- early adopters, experimental, expressive, cheerful, trendy, positive outlook, outgoing, friendly, go-getter. INTEREST- fond of reading magazines like funky and colorful accessories, listening to music LIFESTYLE- social, busy OPINION- opinionated, speak their minds. Respect others opinion Behavioral Usage- moderate to heavy Buyer readiness- aware, informed, positive, neutral Benefits sought- casual wear , can be worn for special occasions as well as office COLORS STAR PLUS FACEBOOK Go to bed GOOGLE TV 11-1 am ORKUT RADIO FEMINA REST MOBILE SIT WITH FAMILY MUSIC PLAYER COSMO VOGUE CHAT IPOD HT CITY GET READY FOR INTERNET NEWS NEXT DAY VH1 MAGAZINES Dinner REST 9-10 pm TV EAT MOBILE HANG OUTIPOD MOVIE HALL INTERNET COFFEE JOINTS WORK TEMPLE- TUESDAY, THURSDAY MC DONALDS SUBWAY LAYS COKE PEPSI APPLE 93.5 FM 98.3 FM ADS- LIFESTYLE PRODUCTS NESCAFE NESTLE DETTOL GARNIER PVR CCD MOCHA MUSIC MTV HBO NDTV GOOD TIMES Wake up 6.30-7.00 am GET READY PRAY TO GOD HAVE BREAKFAST PICK LUNCH DILO WEEKDAY Leave from work /college 4.30-7.30pm CAR AUTO OFFICE BUS CARPOOL TAKEAWAY RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD RADIO NEWSPAPER MOBILE APPLE 93.5 FM 98.3 FM SAMSUMG BLACKBERRY NOKIA ADS- LIFESTYLE PRODUCTS Reach at 9 -9.30 AM CLASS WORK LUNCHCANTEEN FOOD JOINTS COLGATE DOVE LUX PANTENE GARNIER KELLOGES NESTLE KISAN TAJ MAC LOREAL Leave for work 8.00-8.30 am TRAVELCAR AUTO OFFICE BUS CARPOOL INTERNET MAGAZINES BOOKS MUSIC MOBILE HT 93.5 FM 98.3 FM NIVEA LOTUS BODYSHOP AMUL NESCAFE TIMES LAKME REVELON RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD FACEBOOK GOOGLE CCD BARISTA SUBWAY BISLERI KENLEY COLORS STAR PLUS FACEBOOK Go to BED GOOGLE TV 11.30-1.30 ORKUT RADIO FEMINA REST MOBILE SIT WITH FAMILY MUSIC PLAYER COSMO VOGUE CHAT IPOD HT CITY WORK INTERNET NEWS VH1 MAGAZINES NIGHT OUT- 11 ONWARDS CLUBS DISCOs BARS LOUNGE Dinner with family 9-11 pm MOBILE AT HOME IPOD RELATIVES RADIO 5 STARS RESTURANTS TEMPLE- SATURDAY GURUDWARAS APPLE 93.5 FM 98.3 FM ADS- LIFESTYLE PRODUCTS Wake up 9- 10.30 am HAVE BREAKFAST RELAX SIT WITH FAMILY LUNCH F-BAR AGNI QBA AQUA TAJ HOTEL SIDDHARTHA PUNJABI BY NATURE MAINLAND CHINA RADISSON Leave For home 7- 8.30 pm CAR AUTO CARPOOL DILO WEEKEND RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD RADIO NEWSPAPER MOBILE MAGAZINE TV COLGATE HT DOVE 93.5 FM LUX 98.3 FM PANTENE NIVEA GARNIER LOTUS KELLOGES BODYSHOP NESTLE AMUL KISAN NESCAFE TAJ TIMES MAC LAKME LOREAL REVELON PARACHUTE APPLE LEAVE WITH 93.5 FM FRIENDS- 4-5 PM 98.3 FM SAMSUMG TRAVELBLACKBERRY CAR NOKIA AUTO ADS- LIFESTYLE CARPOOL PRODUCTS METRO Reach at 5 6 PM FOOD JOINTS MOVIE MALLS CAFÉ s INTERNET MAGAZINES BOOKS MUSIC MOBILE RADIO MOBILE HOARDING MUSIC PLAYER CDs IPOD BIG CHILL MOCHA BARISTA PVR SELECT CITY AMBIENCE PROMENADE EXPERIMENTAL TRENDY SMART EARLY ADOPTORS LOVE TO SHOP- MALLS, HIGH STREET CONFIDENT WANT TO LOOK YOUNG LOVE COLOURS LIKE TO DRESS WELL LIKE TO ACCESSORIZE BELIEVE IN GOD CUSTOMER INSIGHTS EXPERIENCERS- energy, spent heavily SPEND TIME WITH on clothing, music FAMILY EARLY MAJORITY LIKE CELEBRATING INDIAN FESTIVES HANG OUT WITH FRIENDS FEEL YOUNG BRAND CONSCIOUS INDEPENDENT FOLLOW LATEST TRENDS WORSHIP AT TEMPLES & SPENDS WEEKENDS WITH FAMILY AND FRIENDS GURUDWARAS FASTING ON VARIOUS OCCASSIONS READS MAGAZINES- VOGUE, FEMINA, STARDUST BRAND AWARENESS LIKE TO LISTEN TO ALL KIND OF MUSIC NIGHT PARTIES WITH FRIENDS AND COLLEGUES willingness to wear indo- western clothing Preference to buy Indo western apparel according to the age group 15%15% 30% 11% 10% Yes 20% 7% No 4% 6% 4% 6% 12% 8% 7% 5% 4% 8% 2% 2% Below 18 18 -24 Yrs 25-31 Yrs 32-38 yrs Above 38 Yrs Yrs Student 4.6 4.5 4% 2% 2% 1% 1% 1% Working Professional Important factors while buying apparel 5 10% Business 2-3 Times in a week 2-3 Times in a month 2% 1%1% Homemaker Preference for indo-western clothing 33% 4.43 3.98 4 Daily 3.5 27% 2.97 3 2.86 Yes 2.2 2.5 13% 2 No 9% 1.5 1 2% 0.5 4% 1% 8% 3% 0 Latest Fashion Brand Name Design Comfort Price Material Below 40K Rs 41K-70K Rs 71K-1L Rs 1.1L- 3L Rs above 3L Rs TARGETING Geographics Demographics TIER 1, TIER 2, TIER 3 CitiesDELHI, AGE- 18-24, 25-31 YEARS MUMBAI, KOLKATA, PUNE, SHIMLA, CHENNAI, JODHPUR INCOME- RS 71,000- 3lakh per month International Market- OCCUPATION- STUDENTS, US ,UK WORKING PROFESSIONALS GENDER- FEMALE Psychographics ATTITUDE- early adopters, experimental, trendy, positive outlook, early majority, experiencers Behavioral Usage- moderate to heavy INTEREST- fond of reading fashion magazines, listening to music , like to accessorize , shop Buyer readiness- aware, LIFESTYLE- social, busy Benefits sought- casual wear , can be worn for special occasions as well as to office OPINION- opinionated, speak their minds. Respect others opinion informed, positive 21-25 yrs 25-30 yrs 18-20 yrs VALUE PREPOSITION Benefits FUNCTIONAL • Good quality fabric, comfortable silhouettes, a designer look but without being hard on their pockets EMOTIONAL • The grassroot product will look modern and trendy but at the same time the prints on the garments will make the customer feel close to its origin. The customer will stay connected to its culture in a fashionable way. SELF-EXPRESSIVE • The customer today wants to wear what depicts their own personal style. The customer is experimental, knowledgeable and knows what he wants. The customer will feel more confident, positive, smart, modern and at the same time closer to their traditions and values PERSONIFICATION FEMALE TRADITIONAL YET MODERN EXPERIMENTAL CONFIDENT LIVELY AND VIBRANT SMART AND TRENDY OUTGOING AMBITIOUS CHARISMATIC TRENDY DRESSER LIVES LIFE TO THE FULLEST INVENTORY WESTERN SILHOUETTES INDIAN PRINTS VIBRANT COLOURS FUSION CLOTHING DESIGNER LOOK STYLISH YOUNG INNOVATIVE POSITIONING STATEMENT To young and vibrant fashionistas who are attached to their culture, grassroots is an apparel brand that gives them a one stop shop of the most stylish and trendy blend of both the western and Indian cultures to achieve their aspired look. Creating product differentiation Points of difference: one stop shop, inhouse stylist Points of Parity : good quality fabric and trims, nice fit, will be available in all colors VAST VARIETY OF FUSION CLOTHING UNDER ONE ROOF USP IN-HOUSE STYLIST INDIAN PRINTS ON WESTERN SILHOUETTES PERCEPTUAL MAPPING High Price Sabyasachi Anokhi W Grass ROOTS fabindia Low Variety High Variety Sampada Unorganized market Low Price COSTING FOR FABINDIA MERCHANDISE BASIC Fabric costBASIC 59/m average Requirement -2 m Cost-59x2m=Rs 118APPROX CMT per Garment- 60 Rs Total cost- 118+60=178 Rs Vendor Charges- 5% SRC(supplyRegionCharge)5% Total- 178+17.8=196 Rs FASHION BASIC RetailMargin=50% Retail margin 64.25 % Retail margin 75.25 % MRP- Rs 360 MRP- Rs 1200 MRP- Rs 2490 Fabric- Cotton/Linen/ Silk =150 Rs APPROX average Requirement-2 m Total cost-150x2=300 Rs CMT per garment-90 Rs Cost-300+90=390 Rs Vendor Charges- 5% SRC(supplyRegionCharge)5% Total cost-390+39=429 Rs FASHION Fabric- Cotton/Linen/ Silk = 220 Rs APPROX average Requirement-2 m Total cost-220x2=440 Rs CMT per garment-120 Rs Cost-440+120=560 Rs Vendor Charges- 5% SRC(supplyRegionCharge)5% Total cost-560+56= 616 Rs willingness to spend on a indo western Top willingness to spend on indo-western bottom 26.67% 26.27% Rs.500-999 20% 18.33% 16.67% 25% blw Rs.1000 20% Rs.1000-1499 Rs.1000-1499 Rs.1500-1999 Rs.1500-1999 6.67% 1.67% 1.67% 18 -24 Yrs 5% 1.67% 1.67% 10% 8.33% Rs.2000-2499 Rs.2500 & abv 5% 3.33% 1.67% Rs.2000-2499 Rs.2500-2999 Rs.3000 & abv 18 -24 Yrs 25-31 Yrs 25-31 Yrs willingness to spend on a indo western dress 0.25 23.33% 21.67% 20% blw Rs.1500 0.2 Rs.1500-1999 0.15 Rs.2000-2499 11.67% 10% 0.1 5% 0.05 6.67% Rs.2500-2999 Rs.3000-3499 1.67% Rs.3500 & abv 0 18 -24 Yrs 25-31 Yrs TOPS Rs 1500- Rs 2500 BOTTOMS Rs 1500- Rs 2500 DRESSES Rs 2000- Rs 3000 COMPETITIVE PRICING price range of grassroots is similar to its competitorfabindia. PROMOTIONAL PRICING Grassroots will follow competitor’s pricing to avoid conflicts. PRICING STRATEGY PRICING OBJECTIVE STATUS QUO SPECIALEVENT PRICING grassroots will have such pricing at festive time- diwali, holi etc. RANGE PLAN Basics Fashion Basics Fashion Merchandise Top Top Top 590-1140 Rs 1190-2440 Rs Bottom Bottom Bottom 740 -1190 Rs 1240-2440 Rs 2490-2990 Rs Layering Layering 1440-2990 Rs 3040-3990 Rs 2490-2990 Rs Dresses 2490-3990 Rs
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