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Submitted By: Gagan Kumar Patra Gaurav Kocher Pulkit Goel Vijay Behra Vikas Narwaria
Flow of Presentation
Introduction to Industry Research Objectives Market Scenario Research Methodology Analysis & Interpretation Findings and conclusions Limitations
Introduction to Industry
Very diverse and heterogeneous industry covers a wide variety of products
Indian Clothing industry is of US$ 29.024 billion
The industry was growing at 3-4 % during the last six decades, has now accelerated to an annual growth rate of 9-10 %. The industry is targeted to grow at the rate of 16 % in value terms to reach the level of US$ 115 billion (exports US$ 55 billion; domestic market US$ 60 billion) by 2012.
Contd
Major Reasons:
Against the backdrop of an ageing world, India
possesses the advantage of having a largely young population. 35 % of Indias population is under 14 years of age and more than 60% of the population is estimated to constitute the working age group (1560) till 2050. Two-thirds of Indian population is under 35, with the median age of 23 years, as opposed to the world median age of 33. India is home to 20% of the global population under 25 years of age.
Contd...
Privatization is one of the reasons for increase in market players and thus in variety of products and prices. Globalization is responsible for introduction of global trends into the market and hence affecting the consumer perception. Economic growth has resulted in better living standards.
Research Objectives
To study the consumer behavior towards
the retail garment industry and compare the higher and middle segments. Analyzing & Forecasting the demand of the industry in the near future.
Research Methodology
Sampling technique: Judgmental, Convenient &
Cluster Sampling. Sampling region: Delhi NCR Survey technique: Questionnaire Method
Data Collection: Primary Data: Consumer and retailer survey done through filling of questionnaires Secondary Data: Collected from various sources like Official sites and various business sites.
, South Extension, Safdarjung Enclave) . The target consumers were who bought garments or visited the outlets and also general consumers.
Advertisement
Discount Vs Occupation
season, Diwali, Eid Ul Fitr and New year. Variety and small discounts are the main attractions offered by the stores during these festival seasons. Winter season is considered best time due to sales of higher margin products. Previous year sales is treated as the base year to set target sales for the next year.
loaded with high discounts. They also study current market trends through market research firms and set targets accordingly. Discounts are subject to the off season, previous year stock and non moving merchandise. Store training, product display, micro marketing straegies also form study subjects. Major Brands are: Peter England, Parx, Espirit, Louis Philippe, Van heusen, Allen Solly.
merchandise is the main idea behind this segment. Retailers demand more advertising from the company. Major brands are: Koutons, TQS, Priknit, Cantabil, Allen Cooper.
Elasticity
Discount(%)
-50
-40
-30
-20
-10
10
20
30
40
Demand Forecasting
Forecasted time period -2009-2010. Future demand can be forecasted by the following formula Current Company Demand = Current Market Demand x Current Market Share
Contd
Koutons(Sales Figure in Crore INR):
2003 21.25 2004 31.37 2005 57.85 2006 158.34 2007 402.7 2008 783.46 2009 1046.68
The Standard Deviation = 409.74 So the forecasted Sales for 2010 is =1046.68+409.74= 1456.68
Allen Solly(Sales Figure in Crore INR):
2005 111 2006 140 2007 224 2008 411 2009 517
The Standard Deviation = 176.51 So the forecasted Sales for 2010 is =517+176.51= 693.51
200
100 0 2005 2006 2007 2008 2009 2010
Suggestions
These are some suggestions from the retailers which needs to be implemented.
Evaluate the product mix and pricing strategies in the context of changes in consumer demand. Use retail sales promotional techniques (bundling of products, membership card, Price discount, quantity discount, etc.) to increase store traffic.
Contd
Use
appropriate Promotion mix to communicate with the customers. Plan more frequently and aggressively based on most recent results and forecasts. Understand the spending behaviour of target market and develop your planning. Optimize the risk with respect to sales plans and profit.
SWOT ANALYSIS
Strengths:
Different climates so a very
of
variety
of
Opportunities: Good demand of Indian designers and Interest of foreign players. Sectors with high growth potential. Location advantage. Rural Market. Threats: Great impact of Indian culture on designs, and prints. Inflation , Nostalgia Recession
Weaknesses:
Actual power and broad base
Limitation
Could only surveyed few areas in New Delhi in the short span of time, so demand may vary in other places. Retailers were unable to tell technical methods used for demand forecasting.
Data
given by the consumers were considered to be perfect. Any quantitative data was not provided by retailers.
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