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Regular Features June '03

Editorial To Our Readers

Data Bank Book Summary

Case in Focus Allen Solly - Entering the Indian Women s Western Wear !arket - K Subhadra The case e"amines the changing dynamics o# the $omen s $ear market in India during the %&&'s and early ('''s) Changes in India s cultural *alues and social system and the im+act o# these changes on the dressing styles o# Indian $omen are e"+lored in detail) !adura ,arment s decision to enter the ready-made $omen s $estern $ear segment is e"amined in detail in light o# the a-o*e changes) The case discusses the strategies ado+ted -y the com+any in terms o# marketing research. +roduct design. retailing and +romotion) The case also +ro*ides in#ormation a-out other +layers in the $omen s $estern $ear market in India and takes a look at the market s #uture +ros+ects) Wooing Indian Women In Se+tem-er (''(. leading Indian a++arel com+any. !adura ,arments /Re#er E"hi-it I #or a -rie# +ro#ile o# the com+any0 launched a line o# ready-made $omen s $estern $ear under the -rand name 1Allen Solly Women s Wear)1 The launch $as -acked -y ad*ertisements in the national +rint and outdoor media) The mo*e attracted attention #or t$o reasons) First. this $as the #irst-e*er nation$ide e"ercise -y any com+any to o##er ready-made Western $ear #or $omen in India on this large a scale) Second. !adura seemed to ha*e taken a risk -y trying to e"tend its hitherto 2e"clusi*ely #or men -rand. Allen Solly. to the $omen s segment) The nation$ide launch $as undertaken #ollo$ing the -rand s im+ressi*e +er#ormance during the test-marketing +hase in the city o# Bangalore /3arnataka0 in Decem-er (''%) Through Allen Solly Women s Wear. !adura #ormally e"tended the conce+t o# Friday Dressing% to $omen all o*er the country) The sco+e o# o+erations and marketing su++ort $as $hat set Allen Solly a+art #rom the earlier entrants in the -randed $omen s $ear segment. Indus 4eague( and Raymond s5) Indus 4eague had launched $omen s $ear under the 2Scullers range. $hile Raymond s had entered the segment $ith its designer range 2Be) By late-(''(. many other -rands. such as Benetton. !ango. Wills S+orts and Black-errys. had either launched or $ere +lanning to launch e"clusi*e $omen s $ear in the country) This rush to enter the segment $as not di##icult to understand. considering the #act that the market $as almost com+letely in the hands o# the unorgani6ed sector and had *ery #e$ -randed +layers) !ost o# the national le*el -randed +layers $ere +resent only in the men s $ear segment) In (''%. the $omen s $ear industry $as estimated to -e around Rs) %7% -n8 $ith a gro$th rate o# &9. o# $hich the $omen s $estern $ear market $as estimated to -e gro$ing at %:-('9 +er annum. according to a study conducted -y 3SA-Techno+ak:) Some analysts #elt that these #igures did not ;usti#y the +ace at $hich com+anies $ere entering the market) And. more im+ortantly. many analysts #elt that the -usiness did not hold too much +romise. -ecause Indian $omen $ould not -e com#orta-le gi*ing u+ their traditional attire) Around &:9 o# $orking $omen in India $ore salwar suits /Re#er E"hi-it II0 to $ork and +erha+s not many o# them

$ould -e $illing to shi#t to $estern cor+orate $ear) !adura. ho$e*er. ;usti#ied its mo*e. citing studies. $hich re*ealed that though Indian $omen liked to e"+eriment $ith $estern $ear. they did not ha*e access to styles that suited them) The com+any $as con#ident that it $ould -e a-le to make a success o# the *enture des+ite the increasing num-er o# +layers and the threat o# much chea+er unorgani6ed sector +roducts) Background ote

The Indian a++arel industry $as dominated -y the unorgani6ed sector. $ith market share o# o*er &<9) The industry $as di*ided into t$o segments. ready-to$ear and tailor-made) The industry $as also di*ided on demogra+hic /men. $omen and kids0 and geogra+hic /each state ha*ing its o$n dressing style0 +arameters) O*er the decades. the de*elo+ments in men s and $omen s $ear segments sho$ed markedly di##erent trends) While traditionally Indian men +re#erred to get their clothes stitched -y their trusted tailors. -y the early-%&&'s. ready-to-$ear clothes had -ecome e"tremely +o+ular) =o$e*er. most Indian $omen traditionally $ore sarees and other ethnic $ear /Re#er E"hi-it II0) Though $estern $ear entered the country through =indi mo*ies in the %&:'s itsel#. it remained limited only to teenage girls e*en -y the early %&>'s) This $as so -ecause a#ter marriage Indian $omen $ere generally e"+ected to $ear sarees) Though the saree segment $as also almost entirely in the hands o# small. locali6ed +layers. there $ere a #e$ national -rands as $ell) ,arden /#rom the house o# Bom-ay Dyeing0 $as one o# the #irst +o+ular -rands) O*er the years. many other -rands such as ?imal. 3un$ar A;ay. Roo+ !ilan and @arag emerged) Saree +rices ranged #rom as lo$ as Rs) :' to as high as a #e$ million ru+ees) Table I The Indian Apparel Market (2001-02) A Category Men Women Kids Total B Tailored 88 35 9.5 132.5 C Ready- ade 110 126 62.5 298.5 D Total 198 161 72 431 E Branded Ready- ade! 53 31 6 90

* Branded Ready made !"# is a s$%set o& t'e ready made se(ment !)#. *o$r+e, K*- Te+'no.a/.

As society -ecame more li-eral and the num-er o# $orking $omen increased. there $as a gro$ing need #or attire that $as more 2$ork-#riendly than the saree) ConseAuently. salwar-suits. $hich $ere con*enient and easy-to-$ear. -ecame +o+ular among $omen) This trend -rought in a marked change in the $ay $omen -ought clothes) While sarees $ere almost al$ays -ought ready-made. $omen +re#erred getting their salwar suits tailored) This $as -ecause $hile sarees $ere a 2one-si6e-#its-all kind o# a garment. salwar-suits needed to -e tailored according to the indi*idual s reAuirements) ,radually. salwar suits -ecame +o+ular all o*er the country. and $omen #rom many states re+laced their traditional attire $ith salwar suits) Interestingly. the salwar suit segment had no national le*el -randed +layers e*en at the -eginning o# the (%st century) In the sal$ar suit segment 2local salwar suits $ere a*aila-le #or as lo$ as Rs) %:'. $hile designer la-el /+urchased #rom high-end -outiAues0 salwar suits cost Rs) :'.''' or more) Des+ite the gro$ing +o+ularity o# salwarsuits. the saree remained the most #a*ored and the highest selling +roduct in the country /a 3SA-Techno+ak study re*ealed that around %&< million $omen

+urchased roughly 5%: million sarees in (''%0) ,radually. ethnic $ear /gagra choli and Lehangas0. as a segment -ecame a niche segment as ethnic clothes $ere $orn only on s+ecial occasions such as #esti*als and marriages) =o$e*er. the category s gro$th $as higher than that o# salwar suits) With many designer -outiAues and e"clusi*e sho$rooms entering the -usiness. the salwar suit segment sa$ some e##orts to$ards -randing. though +rimarily on a local scale /in (''%. around %'5 million customers -ought %8: million ethnic $ear sets. out o# $hich 8> million $ere ready-to-$ear and &< million $ere tailor-made0) By the late %&&'s. the Indian economy /and Indian society0 sho$ed clear trends o# -ecoming increasingly $esterni6ed in terms o# li#estyles. education and *ocation. es+ecially in ur-an areas) The gro$ing num-er o# career-oriented $omen resulted in a ma;or shi#t in the $ay certain +roducts and ser*ices $ere marketed in India) The emergence o# +roducts such as ready-to-eatBser*e #ood. #ast #ood ;oints. takea$ay meals. -randed ;e$elry and -randed sareesBsalwar suits $as a direct result o# the a-o*e de*elo+ments) The introduction o# cor+orate. #ormal. $estern $ear #or $omen $as another ste+ in this direction) With cultural changes s$ee+ing Indian society. many com+anies *ie$ed -randed $omen s $estern $ear as a segment that had tremendous +otential) According to a 3SA-Techno+ak study. o# the total Indian $omen s $ear -usiness *alued at Rs) %7% -n. the ready-made segment com+rised <>9 /Re#er Ta-le I0) In the $omen s -randed ready-made segment. $hile the +remium segment /Rs) %''' and a-o*e0 gre$ -y %>9 in (''%. the medium segment /Rs) :''-%'''0 gre$ -y %:9 and the lo$er segment /Rs) (''-:''0 gre$ -y around %(9) These gro$th #igures $ere e"+ected to remain more or less constant in the #uture) As the ta-le indicates. there e"ists a di##erence o# Rs) (( mn -et$een the market #or men s and $omen s -randed ready-mades) @erha+s this is $hy there $as a +lethora o# national le*el -rands in the men s segment) Since com+etition in the men s segment $as intense and demand $as re+ortedly inching to$ards saturation le*els. the #uture gro$th $as +ro;ected to come #rom the $omen s and kid s $ear segments) O# the Rs) 5% -n -randed ready-made $omen s $ear market. a-out Rs) 7 -n $as #rom $omen s $estern $ear. and this market $as +ro;ected to gro$ at (:9 in the #uture) !he "arket #ets Branded Indus 4eague $as the #irst com+any to enter the -randed $omen s $ear segment in the country) In ('''. the com+any launched a $omen s range named 2Scullers Woman as an e"tension o# its +o+ular men s $ear -rand 2Scullers) @romoted as 2smart casuals #or $ork and a#ter. the Scullers $omen s range $as launched in three -asic linesEssentials. !anhattan and Chromium) Essentials o##ered -asic knitted cotton -louses. #lat #ront trousers. skirts and ca+risC !anhattan o##ered +arty and e*ening $earC and Chromium o##ered #ormal $ear and e*ening $ear /Re#er E"hi-it III0) The com+any also launched a silk a++arel collection named ,eometric. $hich o##ered short to+s. shirts and sarong sets) Scullers $as marketed through e"clusi*e 2Scullers Clu- Stores located in ma;or cities across the country) The range $as also made a*aila-le at ma;or retail stores such as Sho++ers Sto+. ,lo-us. @antaloons and 4i#estyle) Since it $as the +ioneer in the market. Scullers Woman recei*ed an enthusiastic res+onse) The ne"t ma;or -rand to enter the market $as 2Be. launched -y Raymond s in Duly (''%) While Scullers +roducts $ere marketed through e"isting stores /-oth com+any-o$ned and multi--rand stores0. Raymond s Be -rand $as sold through e"clusi*e stores) Commenting on Raymond s entry into $omen s $ear. ,autam Singhania /Singhania0. the com+any s Chairman and !anaging Director. said. 1A#ter much thought. $e ha*e decided to take the +lunge) The launch o# the Be range is an initiati*e aimed at cor+orati6ing the designer range o# clothing) Be $ill

+ro*ide a +lat#orm #or designers to sho$case their talents #or larger num-er o# consumers)1 The #irst e"clusi*e Be sho$rooms $ere o+ened in Delhi and !um-ai) 4eading #ashion designers /such as Rohit Bal. Ra;esh @rata+ Singh. Ragha*endra Rathore and !anish Arora0 created out#its #or the Be range) @riced -et$een Rs) >'' and Rs) <'''. Be o##ered ethnic and #usion $ear as $ell as $estern $ear) Taking the cue #rom Scullers Woman and Be. !adura decided to enter this segment) The decision $as also ins+ired -y the com+any s disco*ery that $omen +urchased Allen Solly men s trousers in (7 and (>-inch $aist si6es) !adura em+loyed leading market research agency Indian !arket Research Bureau /I!RB0 to conduct a market study on the Indian $ork culture and the reAuirements o# $omen regarding $estern ready-mades) The study re*ealed that $hile Indian $omen lo*ed ethnic clothes. they $ere not com#orta-le in them $hile $orking) Factors such as increased num-er o# $omen in the $ork+lace and challenging ;o-s that reAuired a lot o# tra*eling indicated a gro$ing need #or $estern $ear) The study also re*ealed that though $estern $ear $as a*aila-le in the market. their international styling $as unsuita-le #or Indian $omen) EAui++ed $ith these #indings. the com+any decided to #ocus +rimarily on the com#ort and styling as+ects o# its +ro+osed -rand) The #irst task $as to make the +roduct suit the needs and -ody +ro+ortions o# Indian $omen) According to I!RB s research #indings. the -ody ty+es o# Indian $omen could -e di*ided into #our -road categoriesE Com#ort - #or a -ody small on to+. $ider on the hi+sC straight - eAual on to+. $aist and hi+sC trim - eAual on to+ and -ottom $ith narro$ $aistC and regular - $ide shouldered and narro$ at $aist and hi+s) To o##er s+eciali6ed and modern styling. the com+any recruited Ste+hen 3ing. a reno$ned F3--ased designer. to create designs suita-le #or all #our -ody ty+es) And to cater to the reAuirements o# $omen $ho $ere on the hea*ier side. Allen Solly trousers $ere o##ered in $aist si6e as high as 57 inches) The com+any also +lanned to launch a 5>-inch trouser in #uture) Besides trousers. the Allen Solly range o##ered $o*en and knitted to+s and ;ackets in cottons and ne$ #a-rics like +olynosic. lycra tencel. rayon -lends and so#t acrylic concentrating on the Autumn and Winter seasons /Re#er E"hi-it III0) All garments $ere designed in line $ith the #indings o# market research) The range $as a*aila-le in -right as $ell as +astel shades. gi*ing customer. a $ide *ariety to mi" and match #rom) The knitted range $as +riced -et$een Rs) 8&& and Rs) &&&. $o*en to+s $ere +riced -et$een Rs) :&& and Rs) >&& and trousers $ere +riced -et$een Rs) <&& and Rs) %'&&) By Se+tem-er (''(. !adura announced the launch o# Allen Solly nation$ide and -y Octo-er (''(. si" e"clusi*e outlets /one each in Chennai. =ydera-ad. !um-ai and 3olkata and t$o in Bangalore0 $ere esta-lished) In addition. the com+any +lanned to retail the range through leading retail sho$rooms across the country) S+ecial attention $as +aid to the designing o# e"clusi*e sho$rooms. kee+ing in mind the targeted clientele /the !um-ai store $as designed -y $ell-kno$n F3-ased architect Dean Claude @annighetti0) The stores $ere +lanned in a $ay that made the sho++ing e"+erience a uniAue and +leasant one) ,arments $ere stacked in easy to #ind. #it--ased categories. making it easier #or customer to locate garments o# the reAuired si6e) All the stores $ere gi*en a contem+orary look $ith radiant steel. +leasant $hites and Belgian glass +ro*iding a -right and o+en am-ience) The target customer -ase #or Allen Solly $omen s $estern $ear $as identi#ied as the sel# assured. o##ice going $omen in SEC A7 -et$een ((-8' years o# age. $ho $ore $estern out#its once or t$ice a $eek and had an income o# Rs) >.''' and a-o*e +er month) Commenting on the decision to launch the range. ?asant 3umar. ?ice-@resident /!arketing0. !adura. said. 1Our target is not $omen $ho already $ear $estern clothesC $e are +egging on con*erting the salwar-kameez category) I# in the +rocess. $e manage to attract the #ormer category. that is ;ust

a -onus)1 The com+any re+ortedly sought to attract $omen $ho ga*e im+ortance to 2so+histicated +ro#essionalism in their li*es) To su++ort the -rand. !adura decided to go in #or aggressi*e cam+aigning and earmarked a total in*estment o# Rs) %'' mn) O# this. around Rs) 7' mn $as allotted #or ad*ertising and the remaining Rs) 8' mn $as allotted #or -ackground research. creati*e team. manu#acturing and retailing) @romotional e"ercises #or the -rand -egan $ith a #ashion sho$ organi6ed -y the com+any. $hich dis+layed the entire range) The com+any made e"tensi*e use o# mailers to reach targeted customers) The mailer contained an inch ta+e. $ith a message 2E*ery -ody is +er#ectC you ha*e ;ust got to dress it right) !adura +lanned to +romote the -rand mainly through outdoor ad*ertising and +rint cam+aigns) The cam+aigns #ocused on the $ork+lace success o# $omen and ho$ this success $as handled $ith style and #lair -y the $omen concerned) The idea $as to esta-lish the -rand as a true re#lection o# the attitude o# $omen in the (%st century Indian $ork+lace) 4eading maga6ines and other +u-lications that $ere read -y $omen #rom the targeted segment carried the +rint ad*ertisements. $hile -ill-oards and hoardings $ere e"tensi*ely used at +rime locations in all the cities the range $as launched in) The initial res+onse to Allen Solly $omen s $ear $as re+ortedly +ositi*e. es+ecially due to the a*aila-ility o# 2com#ort #it trousers) The -rand seemed to ha*e gained a signi#icant amount o# recognition due to ad*ertisements and media co*erage) =o$e*er. des+ite this +ositi*e res+onse. !adura s decision to launch the range attracted criticism #rom some industry o-ser*ers) Dou-ts $ere e"+ressed a-out the logic -ehind e"tending a success#ul. &-year old men s $ear -rand to the $omen s $ear segment) By e"tending the -rand. the com+any sa*ed a lot o# time and money that $ould ha*e gone in -uilding a ne$ -rand) =o$e*er. such a mo*e may make some men shi#t to a 1+ure men s -rand1 in #uture) Though Scullers. Color@lus and Wills 4i#estyle had also similarly e"tended their -rands. none o# these -rands had a -rand image as +o+ular and $ell entrenched in the country as that o# Allen Solly) =o$e*er. com+any sources disagreed that men might shi#t to a +ure men s -rand and claimed that launching $omen s $ear did not make Allen Solly a unise" -rand) !adura ,arments Design Consultant Ste+hen 3ing said. 1Allen Solly is not a unise" -rand #or the sim+le reason that the sha+es and si6es o# garments *ary -et$een men and $omen)1 =e also added. 1I do not e"+ect men to s$itch o*er to other -rands ;ust -ecause $omen s $ear is also a*aila-le under the same -rand)1 !adura sources claimed that there $as no decline in the demand #or the Allen Solly men s range a#ter the launch o# the $omen s range) The com+any also re*ealed that. according to its market study #indings. many men $ere +leased $ith the decision to e"tend Allen Solly to $omen s $ear) =o$e*er. some industry +layers #elt that the sales o# Allen Solly men s $ear could -e negati*ely a##ected in the long run) @erha+s to -e on the sa#er side. !adura decided to incor+orate some elements in its communication strategy that $ould hel+ restrict the #light o# customers #rom its men s $ear range) For instance. one o# the *isuals in an ad*ertisement sho$ed an Allen Solly male model $elcoming an Allen Solly #emale model. $hile the ad line read. 2Allen Solly introduces $ork $ear #or $omen) The aim $as to con*ey the idea that the $omen s $ear range $as a $elcome de*elo+ment #or -oth genders as #ar as the Allen Solly -rand $as concerned) Analysts also +ointed out that -y categori6ing $omen s garments on the -asis o# -ody ty+es. !adura risked in*estments in large in*entories #or itsel# as $ell as its retailers) The issue o# in*entory assumed greater signi#icance considering the #act that the shel#- li#e o# $omen s $ear $as re+orted to -e lesser than that o# men s $ear) !oreo*er. retailers needed to continually re+lenish the stocks $ith ne$ styles and colors to ensure re+eat *isits)

Future $ros%ects Des+ite the a++rehensions o# some analysts. many +layers -egan taking interest in the $estern $omen s $ear segment in India) 4eading te"tile com+any Ar*ind !ills /the market leader in the Indian denim market $ith -rands such as 4ee. 4e*is and Ge$+ort0 +lanned to enter into the $omen s $estern $ear segment -y early(''5 under its +o+ular +remium -rand 2Arro$) Darshan !ehta. @resident. Ar*ind Brands. said. 1In the FS. there is a strong $omen s line under Arro$. $hich $e +lan to launch in India)1 !ean$hile. e"isting +layers $ere also $orking to$ards the success o# their -rands) Raymond s +lanned to e"tend its distri-ution chain to %'' e"clusi*e Be outlets -y (''5. mainly through the #ranchisee route) The com+any also considered the +ossi-ility o# integrating Be $ith the e"isting Raymond s retail outlet net$ork) Said Singhania. 1We already ha*e (:' outlets #or Raymond) ,oing do$n the line. $e $ill certainly look at integrating Raymond $ith Be)1 !adura announced that it $ould strengthen its retail net$ork and record a turno*er o# Rs) :'' mn during (''(-': through the Allen Solly $omen s $ear range) E*en +ri*ate #ashion la-els $ere entering the -usiness. attracted -y the changing market dynamics) !any leading #ashion designers such as Ritu Beri and @u;a !ehra ,u+ta /@u;a0 launched their range o# $omen s clothing through e"clusi*e retail outlets) These clothes $ere not e"or-itantly +riced like +ri*ate #ashion la-els usually $ere) Ritu Beri s 24a-el collection o##ered $estern $ear. ethnic and +arty $ear $hile @u;a s Bi6arre s collection o##ered only $estern $ear) With #our e"clusi*e sho$rooms in Delhi. @u;a +lanned to e"+and to other cities) @u;a had s+lit $estern $omen s $ear into #i*e categories. day$ear. lounge $ear. clu- $ear. holiday $ear and +arty $ear) Catering to all the a-o*e categories. Bi6arre garments $ere +riced -et$een Rs) :'' to Rs) :''') Though the +ro;ected gro$th rates $ere attracti*e. industry o-ser*ers #elt that there $as not enough room #or so many +layers) !oreo*er. they $ere o# the o+inion that com+anies $ould #ind it tough to #igure out the +er#ect #it and o##er the -est dressing solutions #or $orking $omen) =o$e*er. the +layers seemed to -e con#ident a-out their +ros+ects as the num-er o# $orking $omen $as e"+ected to increase in the #uture) One im+ortant Auestion needed to -e ans$eredE Would the +ro;ected gro$th rates o# $estern $omen s $ear turn into real #iguresH &'hibit I( "adura - !he )om%an* !adura ,arments -egan #unctioning as a su-sidiary o# !adura Coats 4td) /!adura Coats0. in $hich Coats ?iyella +lc. Euro+e s largest clothing su++lier. held a ma;ority stake) Coats ?iyella o$ned internationally esta-lished -rands such as @eter England. 4ouis @hili++e. ?an =eusen. Allen Solly and By#ord. $hich $ere marketed in India -y !adura Coats) The com+any $as the +ioneer in the -randed readymade men s $ear market in India) It launched the 4ouis @hili++e range o# shirts and trousers in %&>&. $hich emerged as the market leader in the su+er +remium men s $ear category in India /the range included silk +rinted shirts. trousers. -la6ers. ties. T-shirts. socks and other accessories0) In %&&'. the ?an =eusen range targeted at cor+orate e"ecuti*es $as launched) ?an =eusen soon -ecame India s largest selling -rand in the readymade shirts segment) Allen Solly. $hich $as launched in India in %&&5. introduced the conce+t o# Friday Dressing in the country) Allen Solly also targeted cor+orate e"ecuti*es and $as +ositioned as 2#ormal $ear $ith a rela"ed attitude) Encouraged -y the success o# 4ouis @hili++e and Allen Solly. !adura launched another -rand. @eter England in %&&<. $hich targeted the mid-segment) The com+any also entered into the knits segment $ith By#ord) In %&&>. it launched San Frisco men s trousers and trouser su---rands S+iritus /o# 4ouis @hili++e0 and Elements /o# @eter England0) Through Elements. !adura entered the

casuals /trousers and ;ackets0 segments) In Decem-er %&&&. the Aditya Birla grou+ te"tile com+any. Indian Rayon. took o*er !adura) !adura continued launching inno*ati*e styles under its +remium -rands Fncrusha-les. Tencel. < day Fit and Citrus collection under Allen SollyC @erma+ress. Stretch and !onet under 4ouis @hili++eC and Dura+ress. Boardroom Black. Flat Front Trousers. and Contem+orary Creams under ?an =eusen) !adura also launched a highly inno*ati*e -rand in the #orm o# ?an =eusen s odor-#ree range Dura#resh) In the same year. it also launched 4ouis @hili++e s Stretch Collection) !adura ,arments also concentrated on the e"+ort segment and -ecame a su++lier to glo-al +layers such as Tommy =il#iger and !arks I S+encer) To im+ro*e its designs. !adura set-u+ a #ull-#ledged design studio at Bangalore headed -y Ste+hen 3ing) In (''(. the com+any registered a turno*er o# Rs) 5): -n and its e"+ort re*enues reached Rs) :'' mn) Source: ICMR. References 1. Kurian Bobby, Womenswear to be Launched Under Indigo Nation, Business 4ine. !ril ", #$$$. #. Apparel Allen Solly Brand to ress Up Women as Well, www.%e&%ileo''ice.com, (une 1, #$$1. ). Raymond!s Be" #or the $%omplete Woman,! The Catalyst. (uly )1, #$$1. ". &adura 'arments" 'ets into Women!s Range, Business 4ine. *ecember 1+, #$$1. ,. Cha%%er-ee .ur/i%a, Raymond Wants to Be" With it, Business 4ine. (anuary 1$, #$$#. 0. Mary 1i-aya SB, When Sally met Solly, The =indu. !ril #), #$$#. 2. Begg 3usu', (oping for a New Wardrobe, Business Standard. (une +, #$$#. +. Who!s wearing the pants) Allen Solly Launches Womenswear, Business 4ine. ugus% #), #$$#. 4. (aganna%han 1enka%achari, All!s Well that Sells Well, www.5omain6b.com, ugus% )1, #$$#.

1$. Challa!alli Sra/an%hi, *he Woman in Allen Solly, The Catalyst. Se!%ember 1#, #$$#. 11. Chan5ran .ra/een, Rs+ ,- cr #und for Allen Solly Women!s Wear, Business 4ine. 7c%ober ), #$$#. 1#. (ose!h (aimon, Allen Solly" Now for Women, biz.yahoo.com, 7c%ober ", #$$#. 1). Allen Solly Womenwear *argets Rs+ ,- cr, Economic Times. 7c%ober ", #$$#. 1". It!s #riday 7c%ober ,, #$$#. 1,. Raymond &ay *a.e /remium Brand 'lobal, Business Standard. 7c%ober ,, #$$#. 10. Raymond!s #irst Be" In &umbai, Business 4ine. 7c%ober 1#, #$$#. 12. www.scullers.com 1+. www.allensolly.com 14. www.bhara%%e&%ile.com #$. www.ksa6%echno!ak.com #1. www.image'ashion.com 0uestions for discussion %) E"amine the circumstances that +rom+ted !adura to launch $omen s $estern $ear in the Indian readymade $omen s $ear industry) Why do you think com+anies +rimarily o##ered only men s $ear in the -randed readymade a++arel segment in the countryH What kind o# cultural and social changes led to the launch o# Allen Solly $omen s $earH () Critically analy6e the +roduct de*elo+ment. retailing and +romotional strategies ado+ted #or Allen Solly $omen s $ear) What are the essential di##erences -et$een marketing readymade a++arel to men and marketing readymade a++arel to $omen in a de*elo+ing countryH =o$ $ould your ans$er di##er i# the target customer -ase -elonged to a de*elo+ed countryH 5) !adura has taken a ma;or risk -y e"tending a 1+ure men s -rand1 to the $omen s $ear segment) Comment on this statement in light o# o-ser*ation that men might s$itch o*er to a +ure male -rand in the #uture) Do you think !adura s mo*e could erode Allen Solly s -rand eAuityH ressing for Women Now, Business 4ine.

8) With many +layers entering the $omen s $estern $ear segment. do you think Allen Solly $ould -e a-le to gro$ as +lannedH As +art o# a team res+onsi-le #or managing the -rand. hel+ the com+any design a marketing strategy +lan to attain leadershi+ +osition in the $omen s $estern $ear segment) A conce+t that originated in the FS. Friday Dressing re#ers to the trend o# allo$ing em+loyees to dress in casuals instead o# #ormal $ear on Fridays)

A Bangalore--ased com+any set-u+ $ith *enture #unding #rom Dra+er International. FSA. Dalmia Cements. India and ICICI ?entures. India) Formed -y the #ormer em+loyees o# !adura ,arments. it o$ned +o+ular -rands such as Indigo Gation. Scullers and Iron$ood)

Raymond s is a leading te"tile com+any in India that +roduces and markets a $ide range o# +ure $ool and $ool--lended #a-ric. -lankets. sha$ls and a++arel accessories) !a;or Raymond te"tile and a++arel -rands include The 4ineage Collection. Teral. @ark A*enues. @ar" and !an6oni)
5 8

In Decem-er (''(. Rs) 8> eAualled FS J%)

3urt Salmon Associates /3SA Techno+ak0 is a !anagement Consulting #irm. o##ering strategy. +rocess and technology de+loyment solutions to the retail. #ashion. #ood and grocery and healthcare industries)

Socio-Economic Classi#ications /SEC0 categori6e ur-an Indian households into #i*e segments. SEC A. SEC B. SEC C. SEC D and SEC E. on the -asis o# education. occu+ation and chie# $age earner s +ro#ile) A and B are high SEC classes. SEC C #alls in the mid-SEC class and SEC D and E are lo$ SEC classes)

8he au%hor is 9acul%y

ssocia%e, ICMR.

K ICFAI Center #or !anagement Research /IC!R0) All Rights Reser*ed) For accessing and +rocuring the case study log on to $$$)ecch)cran#ield)ac)uk) Re#erence L %8-'5-'7-'%

)ase Anal*sis Con*enience. Culture and 3ellogg s 1 Amit Balooni During the %&&'s. t$o signi#icant changes ha*e taken +lace in the Indian garments industry) First. getting clothes stitched -y the u-iAuitous 2tailor is a +ractice -ygoneC and second. com#orta-le and in#ormal looking clothes ha*e re+laced strict #ormal clothing) The issue that is at the core o# this trans#ormation is Con*enience) The case is a study o# t$o im+ortant as+ects o# marketing *i6). Brand e"tension and Societal in#luence on Consumer Beha*ior) 4et us take a look at -oth these issues se+arately) Re'ona( Soa% or +eodorant, E"tending esta-lished -rands is one o# the strongest tem+tations marketing +ro#essionals #ace) !any e"+erts ha*e cautioned against this -ut +erha+s no one has -een strong enough to deter the ad*enture seekersM While it is un#air to ;udge e"tensions in terms o# 2-lack and $hite . there are t$o ground rules that need to -e gi*en due thought -e#ore taking the +lungeE

Identi#y attri-utes and *alues that your -rand strongly characteri6es and e"tend only to a category $here those attri-utes are +ercei*ed to -e strongly rele*ant Analy6e synergies that e"ist -et$een the 8 @s o# the e"isting o##ering as against the reAuisites o# the e"tension) This $ould relate +rimarily to the distri-ution setu+. ad*ertisingB+romotion su++ort and +ricing) Got many o# us kne$ the conce+t o# Friday Dressing -e#ore Allen Solly s /AS0 huge hoardings made it a $ay o# li#e) And this is not to say that there $ere no other +layers o##ering clothes $ith similar Auality. designing and #inish) The crucial di##erence $as clearly that none o# the other +layers marketed their -rands as $ell as !adura marketed AS) In that sense. AS can easily -e seen as the 2Change Agent that -rought in a rela"ed. modern outlook to the $ay Indian e"ecuti*es dressed) And it is this 2Change Agent association that AS can stretch #or *enturing in the $omen s $estern $ear category as $ell) With the target market -eing de#ined as the 2salwar suit $earing $omen /$hom AS is trying to con*ert0 and not the e"isting users. the e##ort is to change the $ay Indian $omen dress +er se) Thus. as #ar as the +romotional e##orts are concerned. AS needs to -e much louder than it is no$. in order to -e a-le to do so) And there is no #ree lunch hereM !arketing history sho$s that in case o# e"tended -rands only one +roduct category -ecomes the core - e*erything else takes the +eri+heral +osition) The male #actor associated $ith the -rand is surely going to get diluted) As a result. the -rand +re#erence #or a customer ha*ing masculinity as a consciousBsu-conscious +riority $ould decrease) But that s a risk AS is $illing to take) ,oing a little dee+er into !adura s -asket. $ith its esta-lished -rands ha*ing strong +resence in the men s $ear segment. the risk seems to -e $orth a #ight) One decision !adura $ould ha*e +ondered o*er a lot is a-out the di##erentiation it has to create #or the $omen s $ear range $ith res+ect to the shel#-s+ace $ithin the retail outlets) For. this $ould ultimately -e critical in o*erall *isi-ility and +oint o# +urchase in#luences) Should it -e +art o# the $omen s section or an Allen Solly corner in a retail outletH E"tensions ha*e ha++ened many times -e#ore and ha*e ha++ened success#ully) Isn t Re"ona one o# the largest selling deodorants todayM Kellogg's is it--, The de-ate on the $estern in#luence on our society has al$ays -een -oth +ertinent as $ell as a clichN) In a +rominently +atriarchal society like ours. 2$hat should $omen $earH has -een go*erned -y many other #actors -esides the $omen s choice) =o$e*er. the sil*er lining is that at least #amilies o# the $omen #rom the target segment identi#ied -y the com+any are -ecoming li-eral as glo-ali6ation s$ee+s the society) The launch o# AS s $omen s $ear thus indicates the gro$ing acce+tance o# the o++ortunity that lies in a li-eral market. $here C means Con*enience /not +seudo-Culture0) The segmentation as done -y the com+any /SEC A. >3 income0. is an attem+t to identi#y the $omen o# today) Today s $oman is indeed a di##erent +erson as com+ared to her +redecessor) She is much more con#ident. asserti*e and sel#determining) There has -een a stark change in her li#estyle and +hysical acti*ities hence her dressing needs ha*e also changed) =o$e*er the Auestion remainsE Will the great Indian middle class acce+t the conce+t -ehind ASH Women do not $ork in isolation) They in*aria-ly ha*e to consider the #amily s sensiti*ity #or their -eha*ior) And then there is also a Auestion o# 2ha-it that cannot -e ignored) There#ore. no matter $hat. the task o# changing the +re#erences o# $omen $earing saris and salwars to trousers and ;ackets $ould -e as sim+le as trans#orming a !ara%ha:i5li eating Indian to consume corn #lakes #or -reak#astM =o$ sim+leH Ask 3elloggsM Ge*ertheless. the +o+ularity o# $estern $ear has increased multi#old in +ast #e$ years and the trend is going to continue #or sure) =o$e*er. AS $ould ha*e to

sho$ real +atience and +erse*erance to re+eat the Friday Dressing #eat) The +romotional strategy is aimed at ha*ing selecti*e #ocus and reducing $astage -y choosing outdoors and +rint) Further. a recent sur*ey +ointed out that $omen +re#er +rint media to T?) Seems #ine) What $ould ho$e*er -e more -ene#icial is a -roader cam+aign highlighting the com#ort and con*enience o# $estern $ear as com+ared to traditional dresses) This along $ith the styles and designs /that gi*e due diligence to societal ethos0 $ould reduce the -arriers #or $omen to s$itch) A -rand is essentially the 2s+ace occu+ied in the minds o# the customer) It s got e*erything to do $ith ho$ it is +ercei*ed) The success o# AS as a -rand $ould de+end on ho$ it manages the -alance -et$een Friday Dressing #or !en and Western Wear #or WomenM 8he au%hor is Senior 7''icer;Commercial 1ehicle Sales<,8a%a =ngineering. K ICFAI @ress) All Rights Reser*ed) )ase Anal*sis O# 4ine E"tensions and !ore 1 %S2 Ratna The garments -usiness is a tricky oneC its high de+endency on #ashion. $hich itsel# is e+hemeral. kee+s the com+anies o+erating in it on their toes) Along $ith the cyclicality o# #ashion. the -usiness is #raught $ith the com+le"ities o# sourcing te"tiles and Auality management issues) =a*ing -een in*ol*ed in the -usiness #or a long time. !adura ,arments. o# the A? Birla ,rou+. kno$s it in and out) It has se*eral +remium -rands in its sta-le and is $ell regarded in the men s readymade $ear segment) It +ioneered the smart casual $ear segment $ith the Allen Solly -rand in %&&5) Though the com+any continues to dominate the category e*en no$. due to the intensi#ying com+etition and shrinking o# the o*erall market. it has -een #acing +ro-lems) Further. -ecause o# the do$nturn and the e"cise duty that came in last year. +ro#it margins o# all the +layers in the markets ha*e thinned) ConseAuently. the market gro$th has reduced) The +remium smart casual $ear niche segment is mo*ing rather slo$ly at <-%' 9 +er annum. as com+ared to more than tri+le that rate a #e$ years ago) ,i*en these circumstances. $hat does a +layer like !adura do to -eat the do$nturn and sustain itsel# in the long runH Ans.er to Stagnation Well. it goes #or category e"+ansion. distri-ution e"+ansion or line e"tension) The com+any got into suits. $omen s $ear and ;eans - the -road +icture seems to -e an e##ort to emerge as a one-sto+ sho+ #or readymade clothing) O# the three. the $omen s $ear #oray seems to -e a 2+ri6ed +ro;ect. since getting into $omen s $ear $ould -e a natural +rogression #or the Allen Solly -rand) As more and more $omen get into the cor+orate $orld. the need #or a##orda-le yet #ashiona-le $ork$ear has -een increasingly #elt) A#ter le*eraging the +otential o# the smart casuals market. !adura $anted to e"+loit the o++ortunities in the $estern $omen s $ear market -y #ul#illing the unmet needs o# the $orking $omen) Allen Solly recogni6ed this need and came out $ith the $omen s $ear range a#ter su-stantial in*estment in market research and test marketing) The com+any clearly $anted to e"tend the 2Friday Dressing conce+t #rom the men s category to the $omen s $ear category) !he itt*-gritt* o/ Women's Wear

The $omen s $ear -usiness is *ery di##erent #rom men s $ear and reAuires di##erent marketing decisions) For instance. in*entory decisions are Auite ty+ical in nature) Women s garments are -ased rather strictly on -ody ty+e #its and ha*e to

ha*e di##erent si6es as $ell as #itsC not ;ust a #e$ #i"ed si6es as in the case o# men) This means that com+anies selling $omen s $ear ha*e to kee+ large in*entories) But. the +ro-lem is that the shel#-li#e o# $omen s $ear is *ery short) So. com+anies ha*e to care#ully decide the in*entory le*els and continually re+lace the old styles and colors $ith the latest in #ashion to attract re+eat *isits) The +roduct cycle #or the $omen s $estern $ear has ;ust started in India) On the other hand. the men s $ear segment has matured and is on a decline) The $omen s $ear segment seems to -e going through the same +hase that men s $ear did in the early %&&'s) As the market matures. standardi6ation $ill automatically -ecome much more +re*alent in the market. ;ust like in the men s $ear market) It initially lacked standardi6ation and si6es *aried #rom city to cityC -ut no$. si6es are +ractically the same throughout the country) A -ig challenge #or !adura $ould -e to maintain loyalty) As #ar as garments are concerned. Indian $omen in general are not *ery -rand loyal as com+ared to men. -eing more o# -argain hunters) Once !adura -uilds a market #or $omen s $estern $ear. other +layers are -ound to enter the market) Thus. they $ould go in #or a -etter 2*alue #or money o##er as the market makes $ay #or other +layers) Worse still. the unorgani6ed sector $ould also try to make inroads into the market) As a result. -argain hunting #or its core customers $ould -ecome much easier and !adura s task e*en harder) Allen Soll* 0s- 1thers The ma;or ad*antage o# !adura ,arments o*er its ri*als like @antaloons /$ith its Anna-elle and Srishti -rands0 and Color+lus is that !adura has -een the #irst com+any to talk a-out -ody ty+es not si6es) Its one u+manshi+ can -e ;udged #rom the #act that the (7-(> $aist si6e garments in men s $ear $ere -rought -y many $omen /in #act this triggered the idea o# $estern $omen s $ear at !adura0) Also. $hile many o# the com+etitors are more o# manu#acturing com+anies. !adura e"cels at -eing a marketing com+any) It has -een success#ully marketing many o# its -rands in India #or a long time) In #act. !adura is the only +layer. $hich has de*oted large sums #or ad*ertising amongst all the +layers) 4ine e"tensions are risky) They may lead to the dilution o# core -rand and alienate the e"isting customers) =o$e*er. they can +ro*e -ene#icial as $ell since they ha*e a much greater chance o# sur*i*al than ne$ -rands) !arketing $isdom says that line e"tensions o# strong -rands. sym-olic -rands. -rands that are gi*en strong ad*ertising and +romotion su++ort and those entering earlier into a +roduct su-category are more success#ul) The si6e o# the com+any and its marketing com+etence also +lays an im+ortant role) As !adura has all the a-o*e-mentioned characteristics. the $omen s $ear -usiness ;ust might do $ell) But. since the garment industry as such is not doing Auite $ell and the com+any is still consolidating its +osition. it $ould not ha*e a *ery smooth run) It has to sho$ its marketing +ro$ess to get o*er its ri*als and to sto+ the unorgani6ed sector #rom diluting its #irst-mo*er ad*antage) 8he au%hor is Research ssocia%e, IC9 I .ress.

K ICFAI @ress) All Rights Reser*ed) )ase Anal*sis !adura Geeds to Rethink a Fe$ Basic Issues 1 Sunanda 3aswaran !adura ,arments need to resol*e three ma;or issuesE One. $hether the market #or $omen s $estern $ear is large enough #or the kind o# in*estments -eing madeH Second. $hat does this launch mean #or Allen Solly. the -randH And #inally. the Auestion o# strategyC ho$ should Allen Solly go a-out +ursuing success in this

marketH 4et us take a Auick look at the market) The $omen s $estern $ear is a young. small market. s+a$ned -y the ne$ trends to$ards Westerni6ation) In India. unlike in other Asian and A#rican countries. $omen s $estern $ear has -een late in coming and could easily -e termed a +ost-glo-ali6ation +henomenon) Working $omen ha*e traditionally $orn sarees. like their non-$orking counter+arts) The desire #or con*enience and youth#ul a++earance /-ut not necessarily so+histication0. led to the +o+ulari6ation o# the salwar suit) The +lethora o# *arieties in ethnic $omen s $ear. $ith the a*erage $oman dreaming o# o$ning 2at least one o# each kind militated against the idea o# -randed $omen s $ear) This $as -ecause -randed $ear had a shar+ly #ocused identity as com+ared to the generic nature o# the ethnic $ear segment /a -rand -y de#inition has 2-oundaries E What it is and $hat it is not. has to -e clearly de#ined0) Women s $estern $ear straddles the #ormality and so+histication o# the sari and the con*enience o# the salwar suit) =o$e*er. e*ery salwar suit $earer is not essentially a +otential customer #or Western #ormal $ear) Allen Solly thus could do $ell -y de#ining its target customer a -it di##erently) !adura needs to #ocus on the attitudes o# $omen rather than the income +ro#ileE In India. $estern $ear is still looked u+on as a sym-ol o# modernity and so+histication and meant #or the 2#igure conscious $omen) @erha+s the ;eans-and-to+ $earing college girl $ould -e a -etter target set than the entire salwar suit $earing clan) Steadily increasing e"+osure to $estern *alues and li#e styles. es+ecially in the metros. has -rought a-out a gradual change in $omen s dressing ha-its) Since this change $ill continue to mani#est. the market $ill gro$ as $ell. aided -y the -asic needs o# con*enience and the desire to look smart) ?olumes $ill come and $ith that. the o++ortunity #or -ig +layers to enter) E*ery -ig +layer a++ears to $ant to enter the #ray. ha*ing identi#ied this o++ortunity) =o$e*er. as the market gets saturated. there $ill -e a shake out as $ell) As $ith any nascent market. !adura must -ear in mind that the *olumes $ill not gro$ #ast enough to +ro*ide room #or e*eryone and the less e##icient ones $ill certainly -e $i+ed out. leading to re+eated restructuring o# the market) The 3SATechno+ak study +ro*ides some other +ointers tooE the market is small at Rs) 7 -n. gro$ing #aster than the total $omen s 2readymades market) Also. it is the u++er end o# the market that is gro$ing the #astest and is likely to continue doing so) In other $ords. this is not a +rice sensiti*e market and +oses an ideal o++ortunity #or -randing) This again suggests that !adura needs to look higher than the Rs) >''' a month. salwar suit $earing customer) The -rand needs to ha*e another look at its +roduct range too) The market currently does not seem large enough or so+histicated enough to accommodate such a $ide range o# si6es) While on the one hand. it $ould -e necessary #or each si6e to -e +roduced in large Auantities #or economic *ia-ility. the com+any could #ace +ro-lems i# it is not a-le to generate adeAuate demand #or each si6e) The com+any and the retailers $ould thus run the risk o# +iling u+ in*entory) It might make more sense at this stage to o##er three -asic si6es /small. medium and large0 and +ro*ide in-sho+. #ree. si6e-alteration #acilities at the retailer le*el) This $ould hel+ reduce the risk o# in*entory -uilding and at the same time +ro*ide an o++ortunity #or -uilding strong customer relationshi+s) The so+histication o# numerous si6es should $ait till the demand gro$s signi#icantly) The same argument a++lies to the retailing strategy as $ell) Why e"clusi*e outletsH The -ene#it o# -rand identity creation has to -e $eighed against the relati*ely small market si6e) Besides. the stage o# e*olution o# the consumer and her decision +rocess must -e understood as $ell) ,arments are high in*ol*ement +urchases and the choice #ollo$s the classical com+le" -uying -eha*ior +attern) This +attern has clearly de#ined choice +arameters. ranging #rom choice -et$een +roduct alternati*es to -rand alternati*es) The retailing strategy #or Allen Solly men s $ear has to aim at -rand con*ersion) Allen Solly $omen s $ear on the other hand is as yet com+eting $ith su-stitutes like salwar suits. more than $ith other -rands o# $omen s $estern $ear) It should there#ore. -e made a*aila-le $here the su-stitutes are a*aila-le. that is. at higher-end garment stores like Sho++er s

Sto+) For the $oman $ho has decided to go in #or $estern $ear +rior to entering the outlet. the ne"t stage in the decision +rocess is the choice -et$een -rands. and a*aila-ility o# Allen Solly $omen s $ear at multi--rand stores should hel+) In addition. i# $omen s $ear is also made a*aila-le at Allen Solly outlets #or men. it $ill reduce o*erhead and in*entory costs and add to the 2eAuality $ith men image o# the -rand) Though the industry s e"+erience $ith $omen s $estern $ear is *ery limited. the e"+erience o# -randed casual $ear like 4e*is. 4ee and Wrangler /as also o# com+etitors like Be and Wills 4i#e Style0 does not indicate that $omen -uying or $earing the -rand $ould dilute the 2male image o# Allen Solly) Some casual enAuiries $ith men made -y the analyst also suggests that e"tending the -rand 2Allen Solly to $omen s $ear $ould not cause it to -e seen as less o# a men s $ear -rand) On the other hand. the -ene#its o# e"tending an esta-lished and success#ul -rand name to a related category $ill -e signi#icant in terms o# re*enues. creation o# -rand a$areness and identity. reduced risk o# re;ection and reduced time taken to -uild a -rand) It $ould there#ore -e a $ise mo*e #or !adura to think a-out retailing the $omen s $ear range through their current outlets) !adura needs to add tele*ision /T?0 to their media list though) Women. including o##ice-going $omen. are great T? $atchers and +rime-time ad*ertising along $ith soa+ o+eras on the one hand and channels like CGBC and ne$s channels on the other should +ay di*idends) Outdoor ad*ertising is only a su++orting medium and cannot su-stitute #or T?) In the ultimate analysis. the -rand needs to identi#y its consumer correctly and also understand the +syche and li#e-style o# the consumer. i# it is to ca+itali6e on the strengths o# the original Allen Solly -rand) 8he au%hor is *ean, 9acul%y o' Managemen% in %he rea o' Marke%ing a%

>arsee Mon-ee Ins%i%u%e o' Managemen% S%u5ies ;>MIMS<, Mumbai. Re#erence L %8-'5-'7-'% K ICFAI @ress) All Rights Reser*ed)