A paper on

Global retailing in apparel

BY

Mr.Shrinivas Gabale & Ms.Meera Waghmare

(T.Y B-tech)

Shri Guru gobind Singhji Inst. of Engg.& Technology, Nanded

CONTENTS
1.

2.
3. 4. 5.

6.
7. 8. 9. 10. 11. 12.

INTRODUCTION. MARKET DEFINATION. CLOTHING STORES. PRODUCTS IN APPAREL. MENSWEAR - TOP 5 EMERGING MARKETS. SPACE. PRICE. PROFITABILITY. RETAILERS SUCCESS. ADVANTAGES. CONCLUSION. REFRANCES.

INTRODUCTION

Global retailing in apparel is an essential resource for top-level data and analysis covering the apparel retail industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information. It Provides recent performance and future prospects of the industry. It Includes a five-year forecast of the industry. establishing relationships with manufacturers and retailers to ensure the reliable supply and demand of stock.

Market Definition

The apparel retail market consists of the sale of all menswear, womenswear and infantswear. The market value is calculated at retail selling price (RSP), and it includes all taxes and levies. The global figure comprises the Americas, AsiaPacific and Europe. This industry comprises operators primarily engaged in wholesaling men's clothing and furnishings. A typical business in this industry is involved in purchasing men's and boy's clothing from apparel manufacturers and selling these products to retailers. Most wholesalers in this industry undertake sales and administrative activities, such as establishing relationships with manufacturers and retailers to ensure the reliable supply and demand of stock; marketing and advertising their products; and storage and transportation of stock.

Clothing Stores

The US retail clothing industry includes 100,000 stores with combined annual revenue of more than $150 billion. Large companies include TJX Companies (TJ Maxx, Marshalls), Gap, Limited Brands, Ross and Abercrombie & Fitch. The 50 largest companies account for 65 percent of industry revenue. The G8 Apparel Retail market grew by 1.7% between 2003 and 2007 to reach a value of 581.4 billion In 2012, the market is forecast to have a value of $631.9 billion, an increase of 1.7% from 2007. The US is the worlds largest market and generates 49% of global revenues.

PRODUCTS IN APPAREL

The clothing retail industry includes stores specializing in family clothing (50 percent of industry sales), women's clothing (25 percent) or men's clothing (6 percent). Stores may also specialize in children's clothing or accessories. Children's clothing stores include infant wear. Accessory stores may specialize in hats or caps, gloves, handbags, ties, wigs, or belts. Within their specialty, stores typically sell a full range of items including clothing, outerwear, and underwear. Many clothing stores also sell shoes, accessories, makeup, and perfumes.

Top 5 Emerging Markets Industry Guide is an essential resource for top-level data and analysis covering the Menswear industry in each of the Top 5 Emerging markets (Brazil, China, India, Mexico and South Africa). It gives comparable data on market value, volume, segmentation and market share, market forecasts. It examines future problems, innovations and potential growth areas within the market. The Top 5 Emerging countries contributed $74.7 billion to the global menswear industry in 2007, with a CAGR of 6% between 2003 and 2007 In 2012, the market is forecast to have a value of $94.5 billion, with a CAGR of 4.8% over the 20072012 period. China is the leading country among the Top 5 emerging nations, with market revenues of

MENSWEAR - TOP 5 EMERGING MARKETS

SPACE

Walls are not elastic. You will need to decide how to allocate the space you have available to the garment products the customer expects you to stock, in a way that delivers the best returns. This macro level planning of the product mix is critical to achieving profitability. You will need to decide what stock density you want to achieve and It must be less cluttered
INFLUENCES AND CONSTRAINT

The content & size of a range are influenced by four things: Who is your customer & what does he or she want? What space do you have available? What level of trading profit do you need? What is happening in the market?

PRICE

Define your price architecture with respect to your lead in, Mid & Premium price points. Be customer-led, not cost-driven. Set the price according to what the customer wants to pay, & so that you can maintain clear price message & be flexible with your margin rate. Don't set the selling price according to the cost price for the garment with a fixed margin rate. Customers don't understand why two similar products from the same brand are different prices, nor why they have to pay more for a bigger size or different colors of the same item. At the time, clear pricing delivers a stronger message. Colour, style, fabric & innovation of a garment are the most important binding elements in a range. Don't let one colour dominate but, at the same time don't become a rainbow. Also, aim to keep the range fresh at all times.

Buy low, sell high. Buy on credit, sell on cash. Margin on sales, i.e. the difference between the sales at actual selling price & the cost of textile product sold. We should remember that, stock is money-every product you have on your floor is not a sale until the customer buys it, but is a cost as soon as you pay for it. Three winning formulae to get fresh fashionsShort lead time =More fashionable clothes, Lower quantities=Scarce supply, More styles=More choice & more chances of hitting it right. & the location of the store, the look of store & customer traffic that throngs the store.

PROFITABILITY

RETAILERS SUCCESS

Success in retailing is when any one who walks into your store finds a product that he or she wants to buy in the desired size. Success is when nearly everything you buy sells at full price. Success is when the customer keeps coming back to your store because you always meet his or her needs. Success finally is profitability.

ADVANTAGES

Inform your business decisions. It Adds weightage to marketing materials. Save time carrying out entry-level research. It examines future problems, innovations and potential growth areas within the market.

CONCLUSION

Organized retail provides an attractive opportunity to manufacturers to expose their products to a large volume of customers in an environment conducive to buying. Thus retailers feel that the focus of manufacturers should be on producing good products, & forging relationships with organized retail. Retailing is a volume driven, low margin business. Occupancy cost is one of the largest cost components, followed by working capital costs, employee cost, marketing cost & energy cost. The business is considered to be of managing cash flows & building assets.

References

http://Fibre2fashion.com Business of fashion, year Jan 2001. http://www. Marketresearch.com.