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Ecommerce (B2C)
Submitted By:
Ms. Vanshika Shukla
MFM/18/66
MFM, 2018-20
NIFT, Bengaluru
Ms. Nethravathi T. S
Assistant Professor
Department of Fashion Management Studies
National Institute of Fashion Technology (NIFT)
BENGALURU
(2018-2020)
Declaration
I hereby declare that the project titled “Implementation of Auto Replenishment System for
Core Products in Ecommerce (B2C)” submitted to National Institute of Fashion
Technology, Bengaluru in partial fulfilment for the award of the Degree of Master of Fashion
Management is the original research work carried out by me under the guidance and
supervision of Ms. Nethravathi T.S , assistant professor, Department of Fashion
Management Studies. NIFT Bengaluru.
I, further, declare that this project or part thereof has not been submitted in any form for any
other degree or diploma. All information included from other sources have been duly
acknowledged.
Place: Bengaluru
Vanshika Shukla
Date: MFM/18/66
CERTIFICATE
Ms. Nethravathi T. S
Assistant Professor
Department of Fashion Management Studies
National Institute of Fashion Technology
Bengaluru
ACKNOWLEDGEMET
All good things come to an end and so was my sojourn at Madura Fashion and Lifestyle, Bangalore where I
did my internship project. At the very outset, I find myself fully engulfed in immense pleasure in expressing
my sincere and profound gratitude to Mr. Abhishek Jha (Function Head Ecom) and Ms. Archana
Tripathi (Group Manager Omni Channel), for providing me with an opportunity to do this momentous
project in this prestigious organization. I would also like to extend my sincere and heartfelt gratitude to Ms.
Shilpi Pachauri (H R Department), without whose help, this project would not have been possible.
I would like to extend my heartfelt thanks and profound gratitude to Ms. Tripti Yadav (Manager Ecom),
who has been a constant source of inspiration and knowledge throughout the period, for her valuable
guidance and support in doing these fruitful and challenging projects. It was an unforgettable and enriching
experience.
Back at my institute, I would like to express my sincere thanks to Mr. Sanjeev Malage (Course Co-ordinator
MFM – NIFT Bengaluru), Ms. Nethravathi TS (College Mentor) and all the members of Department of
Fashion Technology for helping me out in the best possible way.
Executive Summary
This internship report stresses on the work experience gathered as an intern at Aditya Birla
and Fashion Retail. In first week of internship, the preliminary research was done on the
project titled “Implementation of Auto Replenishment System for Core Products in
Ecommerce (B2C)”. Auto replenishment system is a system through which inventory can be
efficiently maintained, whenever the stock is low in the warehouse, the system will
allometrically generate the request for replenishment and there will be no loss of customers.
The research included mapping out the time and action plan and store visits. The research
mainly focuses on the four fashion and lifestyle brands having core products, which are Peter
England, Van Heusen, Louis Philippe and Allen Solly
The research was initiated by making a report comparing sales to inventory for core products
for the four lifestyle brands. It included making excel sheets and organising data to
understand which categories are performing well in which brand during which month.
Another task assigned was to visit the E commerce warehouse, to get an insight on the
workings of E commerce warehouse and how it’s different from retail warehouse. An
investigation was to be done to find out reasons why customers were receiving wrong
products. After all aspects scrutinised, the cataloguing team would decide accordingly
whether to take off the product or upload it properly on the website.
The project allowed me to closely work with the supply chain team for the implementation of
ARS – Automatic Replenishment System. I worked with Mr. Parichay Gupta who handles the
request generation for stock replenishment for both retail and E commerce for websites like
Myntra, Jabong, Ajio, Amazon.
Sales and inventory data were collected from each brand, their catalogues, which includes all
the description about the product classification. Data analysis was done to find out the reason
why certain products weren’t selling. This was almost 2 weeks long procedure as it requires
constant follow ups with the souring, design, brand, and supply chain team.
Once all the data was collected, the norms for the core products for AW 19 were developed.
Norms are the basic stock that is required to be maintained by the warehouse and the
minimum stock at which it is replenished. The norms were made for the four brands
mentioned earlier. It was done for each brand, category at SKU level as each product and its
individual sizes perform differently. A report of the customers who have purchased from E
commerce in the past one year was also made. It stressed about the frequency of their
purchases, if the customer was a new, active or inactive customer and their average basket
size and average basket value. This was done for each brand, each category and for each
customer. This was done to find out who to target and in which manner, like more mailers
will be sent to inactive customers to retain them.
Table of Contents
Chapter 1 Company Overview................................................................................................... 1
1.1. Aditya Birla Fashion and Retail Ltd ........................................................................... 1
1.2. Madura Fashion & Lifestyle ....................................................................................... 1
1.3. Brands Under ABFRL................................................................................................. 2
1.4. Brand Positioning ........................................................................................................ 6
1.5. Vision and Mission Statement..................................................................................... 7
Chapter 2. Organizational Structure of Madura Fashion and lifestyle ...................................... 8
2.1 Organisation Structure ................................................................................................ 8
2.2 Functions of various Departments............................................................................... 9
2.3 Buying Process .......................................................................................................... 11
2.4 Business Cycle .......................................................................................................... 12
Chapter 3. The ABFRL Omni Channel ................................................................................... 13
Structure of E-commerce team ............................................................................................ 15
Function of E- commerce Buying and Merchandising Team .............................................. 16
Chapter 4 Learning Outcome ................................................................................................... 17
Chapter 5 Literature Review .................................................................................................... 19
Chapter 6 Research Methodology............................................................................................ 20
6.1. Introduction ................................................................................................................... 20
6.2 Research Objective ........................................................................................................ 21
Chapter 7 Data Analysis .......................................................................................................... 24
7.1 Brand Summary for Core norms ................................................................................ 24
7.2. Customer Profile Analysis ........................................................................................ 38
Chapter 8. Findings .................................................................................................................. 41
Chapter 9. Suggestions............................................................................................................. 42
Chapter 10. Conclusion ............................................................................................................ 43
Bibliography ............................................................................................................................ 44
Appendices ............................................................................................................................... 45
List of Figures
Aditya Birla Fashion and Retail Ltd, India's first billion dollar pure-play fashion powerhouse, has reported a
stellar performance in FY 19. Its revenue registered a strong growth of 23 per cent and EBITDA has risen
by 28 percent. On YTD basis, the EBITDA has zoomed 44 per cent and revenues have grown 14 per cent
compared FY 18. The company's Profit After Tax (PAT) stood at Rs.70 crore vis-à-vis a PAT of Rs.35 crore
in the corresponding quarter of FY 18. This was an account of an overall improvement in all the business
segments. With more than 12.5 million loyalty members as of September 2019, ABFRL has a strong bouquet
of loyalty programmes in India. The ABFRL umbrella includes:
The company's brand portfolio includes product lines that range from affordable and mass-market to
luxurious, high-end style and cater to every age group, from children and youth to men and women. Madura
Fashion & Lifestyle is defined by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England and
People — that personify style, attitude, luxury and comfort. The company's lifestyle store, The Collective,
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offers a unique blend of global fashions, international trends and innovative customer services, to its
customers. Madura Fashion & Lifestyle marked its foray into the luxury mono brand business in India by
launching the quintessential British men's luxury clothing and accessories brand Hackett London through a
joint venture with the UK firm.
Pantaloons
Pantaloons is one of the fastest
growing lifestyle apparel retail
destinations in India. Constantly
innovating designs, concepts and
products by infusing the latest
trends in fashion and clothing
styles, Pantaloons has a repertoire
of lifestyle brands to cater to every
consumer's needs across multiple
occasions.
Van Heusen
Van Heusen is a premium
lifestyle brand for men, women
and youth. The brand embodies
fashion for the corporate and
reflects the current expression of
Figure 2 Brand logos
elegance in today's context. Van Heusen believes that the design drivers for the brand are
fashion and sophistication. The brand covers all aspects of an individual's clothing needs, be it corporate
wear, casual wear, party wear or ceremonial wear, making it a complete lifestyle brand in the truest sense.
The core audience is professionals and corporate executives - men and women who are successful, focused,
articulate, well-travelled, and confident and have a sense of style about them. They pursue success just as
they do their other interests and passions, learning and exploring everything that comes their way.
Louis Philippe
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Defining class, elegance and status, Louis Philippe is a purveyor of fine clothing
for the discerning gentleman. In pursuit of excellence, Louis Philippe stands for
precision in craftsmanship that translates into clothing that are classic and
contemporary, and perfect for the quintessential man. An international super
brand for menswear clothing, Louis Philippe offers a range of formals, semi-
formals, custom-made clothing and accessories. Addressing the needs of the
style-conscious man, the brand’s clothing range boasts of a collection of suits,
Figure 3 Louis Philippe shirts, trousers, T-shirts and accessories that can be bought in-store and online.
Peter England
delivered an undeniably compelling value proposition, guided by its core values of "versatility,"
"spiritedness," and "progressive" around the core of "authenticity." The brand mirrors and encourages the
youth of today to "Be Everything You Love."
Besides retaining its core of smart and stylish formal wear for young men in the early years of their career,
Peter England has collections that span a diverse range of casuals, semi-formals, wedding and ethnic wear,
and party wear.
The core Peter England brand began in 1997 as an enabler for first jobbers with offerings in the mid-priced
value for money, formal wear segment for young men in the early years of their career.
PE Elite: In 2007, the brand began offering young professionals an array of fine-crafted formal shirts and
trousers, sharp suits and blazers that were both progressive and international. Later Elite Sport was also made
available.
PE Casuals: In 2009, the brand introduced PE Casuals (called 'Elements' at that time)—a fashionable range
of relaxed office wear and weekend casual wear. It also has an assortment of cotton shirts, denims, cargoes,
jackets and sweaters that defines casual weekend wear like no other.
PE Jeans: In 2011 the brand launched PE Jeans. "Fashion," "Fusion" and "Sustainability" are the principles
that guide the development of newer offerings for PE Jeans. Over the years, the top innovations in the highly
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successful jeans range have been Oxy jeans, Cardenas, Vintage Jeans, Coloured Jeans, Sculpted Jeans and
Neon Jeans.
Allen Solly
Allen Solly is the premium brand of Madura, launched in India in 1993. Allen Solly brought about a completely new
concept to menswear in India- Friday Dressing. In the years that followed, the brand, with its Anglo- American
heritage, proved to be the most innovative of the Madura Fashion & Lifestyle’s brands. Today it is one of India's
most popular and easily recognized brands in the branded premium
apparel segment. Consumers Understand it as a vibrant and upbeat
work wear brand. Allen Solly 's recall with Friday Dressing is clearly
the strongest.
Having drawn in men and women, the 1744 established brand Allen
Solly has now set its sights on the little ones with its first kids store at
the Phoenix Mall in Bangalore, featuring a kiddie interpretation of its
new retail identity launched in a flagship in June 2014. Figure 5 Allen Solly
Planet Fashion
Planet Fashion, the multi brand, apparel-retailing arm of Madura Fashion and lifestyle, housing the company’s in-
house and other brands, is the largest chain of stores of its kind in India. The company recently launched lifestyle
format stores.
Forever 21
Forever 21 was founded in 1984, in a 900 square foot shop in Downtown Los
Angeles, CA. The store opened on April 21, 1984 and was called Fashion 21.
New stores were opened every six months, eventually changing the name to the
now globally recognized fast-fashion destination – Forever 21. Today, there are
more than 35,000 employees and 600 stores worldwide including the United
States, and international operations in Canada, China, Europe, Hong Kong, India,
Israel, Japan, Korea, Latin America, Mexico, Philippines and United Kingdom
Figure 6 Forever 21 logos
The Collective
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The Collective is a one of its kind, super-premium retail concept, known for its breadth of exclusive fashion.
With over 100 of the world’s best fashion brands under one roof, this unique lifestyle store offers all
connoisseurs a unique point of view on each individual’s own personal style. The apparel offerings cover all
wardrobe needs from Formal to Semi Formal, to Casual and Denim to Active from iconic brands like Armani
Jeans, Armani Collezioni, Versace Collection, Versace Jeans, Hugo Boss, True Religion, Vivienne
Westwood, Lagerfeld and McQ Alexander McQueen and more.
The extensive collection of accessories includes fashion watches, cufflinks, shoes, ties, belts, leather
products, jewellery and sunglasses to create a perfect ensemble. The accessory brands repertoire includes
celebrated names such as Love Moschino, Tateossian, Michael Kors and Lulu Guinness and more.
Hackett London
Hackett Limited is a multi-channel British menswear retailer, specialising in formal men’s shirts as well as
other clothing. It was founded in 1983 in London by Jeremy Hackett. In 2012 the brand entered India with a
partnership of ABFRL.
People
A fast fashion brand for the youth, People is a one stop destination for international and fashion forward
style. Catering to young men and women, the product line is characterised by a streetwise and college ready
attitude. Changing the way youth dress. People focuses on making the latest fashion available in the edgiest
styles, with its range of casual shirts, T-shirts, tops, kurtas, fusion tops, jeans, winter wear, footwear and
accessories.
Simon Carter
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1.4. Brand Positioning
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1.5. Vision and Mission Statement
VISION-
“To become a premium Conglomerate with market leadership across businesses delivering superior value
to shareholders on a sustained basis”
MISSION-
Figure 10 Vision and Mission
“To deliver Superior Value to our Customers, Shareholders, Employees and
Society at large”
VALUES AT MF&L-
Integrity: They believe in growth of the organization with the growth of people. People are investors,
partners (Vendors), employees, customers and stakeholders of the companies.
Commitment: Aditya Birla is a name known for higher value and good quality. They do what they commit
to people.
Passion: Their excellence in every field of business and promise to provide the best shows the passion of the
organization.
Seamlessness: They work beyond limits; go one step ahead of others to serve and to benefit.
Speed: Growth is important but timely growth is the key to success. We believe to act early.
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Chapter 2. Organizational Structure of Madura Fashion and lifestyle
2.1Organisation Structure
Business Director
(Apparel and Retail
business)
Brand Head-
Trendin.com
Brand Head -
Collective
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2.2 Functions of various Departments
Department Function
Design Responsible for studying trends in the domestic and international
markets and designing a range of garments in line with the brand
promise and customer expectations. They also try to incorporate fine
details that the customer looks for.
Product Responsible for understanding fabric and garment trends and
developments, garmenting processes and product creation. They
experiment with different fabric textures, weaves and washes and try
to come up with improvements that will be beneficial to customers.
Sourcing Based on the manufacturing quantity, the sourcing team is responsible
for sourcing the appropriate fabric, trims/finished garments at the right
cost and right time. They call for sample swatches and select from
among them.
Supply Chain This department is responsible for inventory management. The main
function is to track requirements of the stores and maintain a regular
supply of merchandise to avoid a loss in sales opportunity. They ensure
that optimal level of stocks is maintained in the store.
Operations Responsible for manufacturing garments as per agreed costs and
quality standards.
Sales Responsible for sales of garments to achieve brand sales and
profitability targets
Retail operations Responsible for sale of garments through retail channels to achieve
retail sales and profitability targets. They are also in charge for new
business development and determine the expansion plan for the brand.
They determine where the new stores must be put up and the formats
for them.
Retail buying and Responsible for buying garments and allocation to right stores at the
allocation right time to achieve retail sales and profitability targets. They also
decide the styles that must be selected to the stores for two seasons
from now. This department is subdivided into teams based on the stores
that they cater to as EBO, Department stores and Franchise stores
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Marketing Responsible for generating consumer insights, research and
communication.
Visual Merchandising Responsible for retail store look and feel, understanding of global
visual merchandising trends and implementation. The department has
VM implementers, who are responsible for educating and instructing
the CCAs to maintain in store VM.
Human Resources Responsible for attracting, developing and retaining talent at Madura
Fashion and lifestyle.
IT Responsible for enabling the organization to achieve its vision through
application of technology.
Finance Responsible for accounting, finance and management.
Technology The technology management center, a newly open sampling unit few
Management Center blocks away from Regent Gateway facilities highly equipped
(TMC) machinery providing a scope of 100 pieces a day. However, due to lack
of availability of sufficient tailors, TMC does low numbers.
Sampling Majority of sampling happen with vendors within Bangalore and
places like Ahmedabad, Tirupur and Delhi. After the specification
sheet is passed on to the vendors, the sampling is started. Once the
proto is made, a session of fittings happen according to which the fit,
shape and design is check and evaluated for. Once the fit of the garment
is approved, the pattern is then given a gold seal which the vendor
utilizes for making the production of a particular style.
Knowledge Under the jurisdiction of the PDQA department has a wide wardrobe
Management Center of selections, stocked with latest innovations and trends in fabrics,
leaving no tables unturned. Also, it facilitates magazines, forecast
journals and books again of global and latest standards. It is the in-
house research library and pool point for designers and anyone who
wants
Table 1Functions of various Departments
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2.3 Buying Process
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2.4. Business Cycle
Concept Presentation - The concept presentation is the first step carried out in the planning of a new
collection, which is presented by the design team based on the major trends seen in the market. It is a
combination of forecasts and the current trends. The final concept that is finalized is something that is in
trend and defines the target market at that point of time.
Example - Travel, Fitness, Sustainability are some of the major trends that we have seen in the last 2 years.
Grid Plans (Option Plans): The second step followed by the finalization of the concept for the season is
preparation of the grid plans. This helps the team finalize how many options they would offer and the price
range. Some examples of the grids prepared at this stage are the fashion pyramid (high fashion, fashion and
core), the LP, MP and HP (low price, medium price and high price) grid and finally the MRP grid.
Sampling: Once the garments and their prices are finalized, the next step would be the sampling of the final
gold seals, which have been prepared. The number of SKU's to be displayed at the trade show would be
finalized at this stage.
Trade Show: The trade show is where the collection is displayed to the 5 trade channels and the orders are
received. The 5 trade channels include retail, trade, export, e-commerce and departmental stores.
Order Quantity: Based on the orders received at the trade show from the different channels, the production
and delivery schedules are planned and executed.
Sell Through: The sell through analysis is done to understand the consumer demands based on the orders
received. The sell through analysis is done at two stages i.e. first based on the orders received at the trade
show and second based on the channel sell through.
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Chapter 3. The ABFRL Omni Channel
Customers have always been discerning about what they buy, where they buy and how they buy. The
difference in today’s shopping behaviour is the multiple options available to the customers to discover the
product, evaluate it and then decide on the purchase.
While there is a strong tendency to shop in a physical store, most customers are already aware of what they
want before their actual purchase is completed.
In order to stay relevant to the customer, it is impressive to change in the way they experience brands and
products; and hence was born omni channel.
One world is the umbrella brand under which the various omni channel initiatives are being prioritised,
conceptualised, developed and implemented at ABFRL.
The three pillars of one world’s omni channel initiatives include a “single view of the customer”, ‘Inventory
virtualisation’ and ‘Robust Process Enablement’. ‘Single view of the customer’ is a combination of
personalised communication and offers, integrated analytics and comprehensive customer lifecycle
management to provide complete visibility of a customer across any channel. 'Inventory Virtualization '
allows real-time stock visibility on the website, seamless pouring of offline and online stores, as well as the
•
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entire retail inventory that is catalogued and visible on individual brand websites. Finally, 'Robust Process
Enablement' provides intensive coaching for front-end staff with dedicated call center support, well-defined
methods of capturing customer feedback to drive improvements and clear processes for flitting between
offline and online experiences.
The benefits of ABFRL's Omni Channel initiative are varied. These include digital displays, virtual stores,
virtual trial rooms and flexible returns policy. Customers can reserve their choices online at the virtual store,
make purchases online using the mobile application, access personalized recommendations and a larger
inventory, and finally get express delivery anywhere with flexible options as per customer convenience.
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Structure of E-commerce team
Ashish Dikshit
Managing Director-
ABFRL
Vishak Kumar
CEO-MFL Lifestyle
Brands
Manish Singhai
Abhishek Jha
Brand COO-Peter
Head E Commerce
England and Head-E-
Operations
Commerce
Archana Tripathi
Group Manager – Suman S Pradhan Samreen Musarath Shashank Agarwal
Omni Channel Sales & Manager- Operations Marketing Catalouge
Merchandising
Ishmeet Sethi
Peter England Amazon
Jyothsana Parate
VH & AS
Paytm
Akshatha KJ
People
Flipkart
Kaveramma B D
LP & SC
Limeroad & Tata Cliq
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Function of E- commerce Buying and Merchandising Team
The E- commerce is headed by Mr. Abhishek Jha, other members of the team are responsible for the
merchandising of all brands across all online market places. The merchandising team has to be constantly
updates on the current sales data for pan-India and also working on the tentative demand for the upcoming
season. They are also responsible for allocation of stocks from warehouse to the online market places, so that
marketplaces have sufficient quantity of merchandise to go live, in case, they identify a particular style is not
moving in a marketplace, then they discuss with the brand managers and pull it back.
During the season, they constantly analyze the growth, sell through, and ROS contribution to identify any
possible trends in the styles. Based on this, they conclude upon the fast- and slow-moving attributes, and try
to incorporate the same in the buy plan for the next season. Also, details on customer preferences are obtained
from the sales data.
They also work in advance for the EOSS. The core styles are never sold as discounted merchandise and are
sold only at full price throughout the season. They work along with the brand sales team, to decide upon the
discounting strategy and the corresponding codes have to be updated on the SAP system, so that when the
billing is done in the marketplaces, corresponding discount is applied.
The merchandising team has to select the merchandise that will hit the online marketplaces in two seasons
from now during the trade show. Based on the OTB that has been allocated to the category they will split the
budget for buying both regular core styles and fashion styles. The fashion styles are only allocated to the top
cluster of stores. During trade show, the merchandising team decides on the styles to be bought, which month
the style should hit the store and in what quantity.
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Chapter: 4 Learning Outcome
• I have got a fair insight on how the Ecom team works.
• I grasped the reasons why the core products weren’t performing well in the E
commerce.
• When worked with different brands and teams, I got to know the uniqueness of each
brand and its different ways of working.
• Collaborating with supply chain team taught me, how the backend team works.
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Project Title: Implementation of Auto Replenishment System for Core
Products in Ecommerce (B2C)
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Chapter 5 Literature Review
5.1. PR Newswire(2000) in their article “E-commerce Retailers Must Confront Inventory Management
Challenges, Buxbaum Group Exec Warns” talks about exponential growth in online retailing is likely to
create enormous challenges in inventory management for e-commerce companies according to consumer
product industry consultant David Ellis. Inevitably, these new retailers will have to deal with unsold
merchandise and high levels of returns without the ability to move these goods via markdowns in traditional
brick and mortar stores. “A lot of e-commerce businesses started out as distributors who sold inventory they
didn't own. But now the trend is towards buying and owning their own inventory, and I don't think anyone
has looked at the back side of the operations-inventory management," says Ellis, chief operating officer of
Buxbaum Group, based here. "Some online retailers are already setting up auction sites to dispose of unsold
inventory, but they will have to pay someone to manage those sites."
5.2. Jane Boyd Thomas, Cara Okleshen Peters, Holy Tolson in their work “The governance of knowledge
and capitalization on sales in fashion Industry” published in journal of fashion marketing and management
provides three factors that appropriate inventory and effective visual merchandising to influence the
customers consideration. The authors provide a punch line “buy what sells. A buy plan is effective only when
it is built considering the sales history, trends and statistically maintaining an appropriate level of inventory
without under or over stocking at any point of time is quintessential. Appropriate inventory levels lead to
higher probability of sale of a particular product than the one which is over or under stocked. According to
the author and popular retail saying, “Visual Merchandising is silent selling” which leads to increased walk-
ins to the store, attracting the customers focus towards a particular line of products, retaining the customers
attention and enticing the customer to consider, trail and buy the product. The authors note that, a successful
organisation in fashion industry is the one that foresees change in trends, understands the consumer behaviour
and buying patterns, plans effectively and conveys a story of the fashion to its existing and potential
customers.
Rates of sales, defines in “Retailing Management” by Levy and Weitz, is the number of units a particular
product or item is sold in a given period of time, Rate of sales provide an understanding of the inventory
situation, Identify fast and slow movers. Rate of sales is given by the formula: quantity sold divided by the
number of time periods.
Sales contribution is the sales generated by the subject of the study divided by the total sales. This gives
better picture of which product or category or range drives sales by volume to the organization and thus the
focus can be directed towards the major contributor and thus capitalize on the opportunity laid out by the
major contributor.
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Chapter 6 Research Methodology
6.1. Introduction
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6.2. Research Objective
To find out the reason for customers receiving wrong product ordered from
virtual store.
• To work with warehouse team, to find out of the error
• To look into catalogue team, if the catalogue of the product was done
appropriately.
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6.3. Research Design
For this particular project, an Exploratory research design was carried out to explore the
maximum possible solutions for the problem.
Data Collections
Primary data was collected from interaction with different brand teams and supply chain
team.
Secondary Data was collected through various reports like sales report (April 2018 – July
2019), closing stock inventory report (April 2018 – July 2019), order item report (April 2018
– July 2019) etc. For the study on core merchandise in marketplaces, secondary data was used
mostly.
Average Monthly Sales: is calculated as average sales per month by taking the value of sales
over a year and dividing by the number of months in the year. This is done to project the average
sales by a SKU and to forecast future sales.
Month of cover: is calculated as past sales divided by the number of months multiplied by the
number of months the inventory should sustain. In the analysis the month cover taken is 4, the
standard used by the E commerce team.
Lead time: The time taken to replenish the stylecodes from manufacturing stage to inward
stage.
Average Basket Size: refers to the number of items getting sold in a single purchase. It is the
equivalent of total units sold divided by number of invoices.
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Average Basket Volume: tracks the average amount spent each time a customer places an
order online.
Total Net Sales Value: it represents the total units sold, multiplied by the sale price per unit.
The formula for net sales is (Gross sales) less (Sales returns, allowances and discounts).
Sampling
The total number of customer’s data used is 209291 in the past one year.
The further scope of the study is to make norms for further seasons.
Limitations
As the internship duration was only for two months, the research couldn’t be conducted
comprehensively.
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Chapter 7 Data Analysis
Inference: From the above table one can infer that Louis Philippe has 345 Stylecodes option
with the total projected norms of 5977 units, which implies approximately each stylecodes will
have a replenishing stock of 17 which is further split between different sizes. Similarly, Van
Heusen has 632 stylecodes with replenishing stock of 14917, Allen Solly has 287 stylecodes
and 7445 as norms inventory whereas Peter England has 391 stylecodes and 9983 as
replenishing stock.
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Brand Wise split of projected sales and stock
14000
12000
10000
8000
6000
4000
2000
0
LP VH AS PE
Inference: The above table shows a comparison of the current stock in hand and current sales
to projected stock and projected sales. Projected inventory is the efficient inventory to be
maintained by the warehouse after the pullback suggested based on the performance, where as
projected stock is calculated by dividing projected stock by 4, as we have taken 4 as month
cover.
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Louis Philippe
Inference: Through the above table we can infer the category wise split of stylecodes
options and the replenishing stock inventory. Blazer has 7 stylecodes with replenishing
stock of 147, shirt has 170 stylecodes and 2779 as inventory similarly suits have 9
options with 189 replenishing stock where as trousers have 159 options and 2862 as
replenishing inventory. This inventory is further divided among the sizes of each
stylecodes.
Projected Inventory
Season Sum of Current Inventory (Current SOH-Pull backs)
Core 11596 2266
NSM 1158 -
OSM 40261 -
Grand Total 53015 2266
Table 5 LP Season Wise split of Inventory
Inference: The above table depicts the different seasons i.e. Core products which are staple basic
merchandise. The current core inventory as of July is 11596 where as the projected inventory is 2266.
NSM is defined as new season merchandise their current inventory is 1158 and OSM is old season
merchandise and has a current inventory of 40261
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Category wise split of projected sales and stock
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Blazer Shirt Suit Trouser TOTAL
Inference: The above table and bar chart shows a comparison of the current stock in hand
and current sales to projected stock and projected sales. Projected inventory is the efficient
inventory to be maintained by the warehouse after the pullback suggested based on the
performance, whereas projected stock is calculated by dividing projected stock by 4, as we
have taken 4 as month cover.
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Comparison of Proposed Norms and Previous Norms
6000
5000
4000
3000
2000
1000
0
Blazer Shirt Suit Trouser Grand Total
Inference: The above analysis shows a comparison of proposed norms to the previous norms across
categories. Proposed norms are the norms set for the basic stock to be maintained at the warehouse at
all times so that the merchandise is always available for customers and there is no loss of customers.
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Van Heusen
Inference: Through the above table we can infer the category wise split of stylecodes options and
the replenishing stock inventory for each category. Belt has 7 stylecodes with replenishing stock of 69,
blazer has 19 options and 412 inventories, shirt has 360 stylecodes and 8059 as inventory similarly
skirts have 2 stylecodes options with a stock of 52, suits have 32 options with 702 replenishing stock
whereas trousers have 127 options and 1462 as replenishing inventory. This inventory is further divided
among the sizes of each style codes.
Inference: The above table depicts the different seasons i.e. Core products which are staple basic
merchandise. The current core inventory as of July 52971 is where as the projected inventory is 9164.
NSM is defined as new season merchandise their current inventory is 7359 and OSM is old season
merchandise and has a current inventory of 135752.
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Category wise split of projected sales and stock
14000
12000
10000
8000
6000
4000
2000
0
BELT BLAZER SHIRT Skirt SUIT Top TROUSER TSHIRT WALLET Grand
Total
Inference: The above table and bar chart shows a comparison of the current stock in hand
and current sales to projected stock and projected sales. Projected inventory is the efficient
inventory to be maintained by the warehouse after the pullback suggested based on the
performance, whereas projected stock is calculated by dividing projected stock by 4, as we
have taken 4 as month cover.
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Comparison of Proposed Norms and Previous Norms
20000
15000
10000
5000
0
Inference: The above analysis shows a comparison of proposed norms to the previous norms across
categories. Proposed norms are the norms set for the basic stock to be maintained at the warehouse at
all times so that the merchandise is always available for customers and there is no loss of customers.
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Peter England
Inference: Through the above table we can infer the category wise split of stylecodes options and the
replenishing stock inventory for each category. Blazer has 5 stylecodes with replenishing stock of 90,
shirt has 235 stylecodes and 5888 as inventory similarly suits have 16 options with 285 replenishing
stock whereas trousers have 135 options and 3720 as replenishing Inventory. This inventory is further
divided among the sizes of each stylecodes.
Inference: The above table depicts the different seasons i.e. Core products which are staple basic
merchandise. The current core inventory as of July 30807 is where as the projected inventory is 7581.
NSM is defined as new season merchandise their current inventory is 8171 and OSM is old season
merchandise and has a current inventory of 165390.
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Category wise split of projected sales and stock
16000
14000
12000
10000
8000
6000
4000
2000
0
Blazer Shirt Trouser Suit Grand Total
Inference: The above table and bar chart shows a comparison of the current stock in hand
and current sales to projected stock and projected sales. Projected inventory is the efficient
inventory to be maintained by the warehouse after the pullback suggested based on the
performance, whereas projected stock is calculated by dividing projected stock by 4, as we
have taken 4 as month cover.
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Comparison of Proposed Norms and Previous Norms
16000
14000
12000
10000
8000
6000
4000
2000
0
Blazer Shirt Trouser Suit Grand Total
Inference: The above analysis shows a comparison of proposed norms to the previous norms
across categories. Proposed norms are the norms set for the basic stock to be maintained at the
warehouse at all times so that the merchandise is always available for customers and there is no loss
of customers.
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Allen Solly
Inference: Through the above table we can infer the category wise split of stylecodes
options and the replenishing stock inventory for each category. Blazer has 6 stylecodes
with replenishing stock of 145, bottoms have 6 options and 136 inventories, shirt has 58
stylecodes and 1390 as inventory similarly skirts have 3 stylecodes options with a stock
of 73, T shirt have 90 options with 1907 replenishing stock whereas trousers have 73
options and 2241 as replenishing inventory.
Inference: The above table depicts the different seasons i.e. Core products which are staple basic
merchandise. The current core inventory as of July 7298 is where as the projected inventory is 4248.
NSM is defined as new season merchandise their current inventory is 6302 and OSM is old season
merchandise and has a current inventory of 124919.
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Category wise split of projected sales and stock
8000
7000
6000
5000
4000
3000
2000
1000
0
Blazer Bottoms Jeans Shirt Skirt T Shirt Top Trouser Grand Total
Inference: The above table and bar chart shows a comparison of the current stock in hand
and current sales to projected stock and projected sales. Projected inventory is the efficient
inventory to be maintained by the warehouse after the pullback suggested based on the
performance, whereas projected stock is calculated by dividing projected stock by 4, as we
have taken 4 as month cover.
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Comparison of Proposed Norms and Previous Norms
8000
7000
6000
5000
4000
3000
2000
1000
0
Inference: The above analysis shows a comparison of proposed norms to the previous norms
across categories. Proposed norms are the norms set for the basic stock to be maintained at the
warehouse at all times so that the merchandise is always available for customers and there is no loss
of customers.
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7.2. Customer Profile Analysis
Customer Status
6559
72661
130071
Inference: From the above table and pie chart one can infer that there are 6559 active customers who
have been purchasing regularly in the past year, 130071 are in active customers who haven’t made
any purchase in second half of the year whereas 72661 are new customers, who made the purchase
for the first time.
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Customer profile along with their Average basket size and Average basket
volume
ABS ABV
Customer status (total NSV/ quantity ordered) (NSV/ no. of bills)
Active customer 1213 2137
Inactive customer 1167 1511
New customer 1555 2289
Grand Total 1303 1801
Table 21Customer profile along with their ABS and ABV
Customer profile along with their Average basket size and Average
basket volume
new customer
Inactive customer
Active customer
ABV ABS
Inference: The above analysis gives an insight to the average basket volume and average basket size
of customers based on their frequency of purchases. Active customers have an average basket volume
of 2137 whereas average basket size of 1213.Similarly, Inactive customer’s average basket volume is
1511 whereas average basket size is 1167 and new customer’s average basket volume is 2289
whereas average basket size is 1555.
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Brand wise Split of Customer Profile
Brand Name Active Customer Inactive Customer New Customer Grand Total
ABOF 1778 5211 4421 11410
Allen Solly 15868 72965 32481 121314
American Eagle 887 507 17425 18819
Forever21 83 0 16099 16182
Louis Philippe 5117 9343 13664 28124
People 968 15892 4518 21378
Peter England 7252 40149 28809 76210
Planet Fashion 1277 4719 95 6091
Simon Carter 59 274 273 606
Skult 804 2008 2168 4980
The Collective 251 1508 398 2157
Van Heusen 17864 67336 34197 119397
VH Woman 34 0 1221 1255
Grand Total 52242 219912 155769 427923
Table 22 Brand wise split of customer profile
Inference: The above analysis shows the brand performance in retaining its customers. Van
Heusen has the highest number of active customers and new customers whereas Allen Solly
has the most inactive customers.
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Chapter 8. Findings
Van Heusen made the highest core merchandise sale in the past season.
Core style codes are excessive, it outnumbers new and old season merchandise.
Shirts are the best performing category across all brands.
There are 130071 inactive customers with an average basket size of 1167.
All the lifestyle and fashion brands have high sales from Men.
During warehouse visit, it was found many customers return wrong products leading
to loss to the company.
Van Heusen women have the least active customers, whereas Allen Solly has the
highest inactive customers.
Van Heusen is doing well in getting new customers as it has 34197 new customers.
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Chapter 9. Suggestions
Styling tips
As core products are basic staple products, the brands could market them by cataloguing
a video of styling the product in various ways, so that the customer feels like he is not
buying one shirt but many with its multiple ways of styling it.
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Chapter 10. Conclusion
In today’s competitive world where every brand is trying to perform better than its
competitors, understanding the performance of the brand is very crucial for the growth
of the business. The need for analysis cannot be underestimated in today’s world. Every
organisation that strives to achieve the best must be able to safeguard its interests and
avoid risks, because of the increasing outsourcing activities, there is a growing need to
evaluate the performance of the activities of the brand, understand gap and take
measures to correct them.
The exposure to fashion industry and working on a live project gave me abundance
amount of knowledge and insight about the industry. Additionally, due to the project
with an organisation like Madura gave a brief overview of the best in class practices in
the industry. The project helped in understanding customer buying pattern and
behaviour and thus gave crucial learning that can be carried forward for the future.
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Bibliography
P. (2000). E-commerce Retailers Must Confront Inventory Management Challenges,
Buxbaum Group Exec Warns. Retrieved from
https://search.proquest.com/docview/449382880/fulltext/E929D21764204DD8PQ/4?a
ccountid=38977.
Aditya Birla Fashion and Retail Ltd. (n.d.). India's Largest Apparel & Lifestyle Store -
Aditya Birla Fashion & Retail Ltd. Retrieved from http://www.abfrl.com/
Jane Boyd Thomas, C. H. (2007). The Governance of knowledge and capitalization on
sales in fashion industry. Journal of fashion marketing and management.
Retrieved August 2017, from Economic Times: http://economic
times.indiatimes.com/Aditya-birla-fashion-and-retail-ltd//directorsreport/companyid-
46091.cms
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Appendices
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