CERTIFICATE OF OWNERSHIP AND ORIGINALITY All statistics are drawn from official, national and international sources unless otherwise indicated. All the information in the report is verified to the best of author’s ability but does not accept responsibility for the loss arising from decisions based upon them. This report has been prepared for the exclusive academic use of National Institute of Fashion Technology. All rights reserved. No part of the report may be reproduced, or transmitted in any form or by any means without the prior permission of the authors. Pre-Season Planning and In-Season Performance Analysis of the Ladies’ Ethnic-wear Private Labels Shoppers Stop Ltd. By Neekita Kenkre M/MFM/12/21 Under the guidance of Prof. Lipi Choudhary Batch 2012- 2014 Master of Fashion Management Department of Fashion Management Studies National Institute of Fashion Technology [Mumbai] 1. INTRODUCTION India has been a nation of ‘dukandars’ – around 12 million retailers – consisting of more retail shops than those in the rest of world put together. Retailing has been in our blood as shopkeepers or as shoppers. But things are changing in the country in the way shopping is done, the way retailing is getting modernized and organized, and the way people are viewing this industry – as students, as shoppers and as academicians. Kishore Biyani 1.1 Retail Industry in India Retailing is an integral part of the value chain in an organization. It is a function that provides the ‘last mileage connectivity’ between an organization and its customers. In many parts of the world retailers have emerged as one of the most potent forces in influencing the performance of the value chain. Retailing is one of the biggest sectors and it is witnessing revolution in India. The new entrant in retailing in India signifies the beginning of retail revolution. India's retail market is expected to grow tremendously in next few years. Retailing is one of the pillars of the economy in India. The Indian retail landscape is evolved from the brick-and-mortar model to adopt technology for connecting with consumers. The aim is to achieve a complete seamless customer experience. The Indian retail sector accounts for over 20% of the country’s gross domestic product (GDP) and contributes 8% to total employment. The cumulative foreign direct investment (FDI) inflows in single-brand retail trading, during April 2000 to June 2011, stood at 69.26 million USD. The current estimated value of the Indian retail sector is about 500 billion USD and is pegged to reach 1.3 trillion USD by 2020. The total concept and idea of shopping has undergone a vast drawing change in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into India as is observed in the form of sprawling shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment and food all under one roof. The Indian retail industry has experienced growth of 10.6% between 2010 and 2012 and is expected to increase to USD 750-850 billion by 2015. The industry has long way to go as 1 there is a huge opportunity in streamlining the sector. Indian retail sector is gradually inching its way towards becoming the next boom industry. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian Figure 1 : Indian Retail Market population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Food and Grocery is the largest category within the retail sector with 60 % followed by Apparel and Mobile segment. Organized & Unorganized Retail sector in India Currently India constitutes only 8% of organized retail and remaining 92% is left unorganized, which may grow much faster than traditional retail. It is expected to gain a higher share in the growing pie of the retail market in India. Various estimates put the share of organized retail as 20% by 2020. The growth pattern in organized retailing and in the consumption made by the Indian population may follow a rising graph helping the newer businessmen to enter the India Retail Industry. The country's traditional retail industry is expected to grow at an average annual rate of 5% over the next year, while the organised retail is estimated to register a growth rate of around 25% during this period. 2 Figure 2: Share of Organized and Unorganized Retail Within the organized retail sector, Apparel is the largest segment. “Food and Grocery” and “Mobile and telecom” are the other major contributors to this segment. Evolution of Indian retail According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in 1995. While barter is considered to be the oldest form of retail trade, since independence, retail in India has evolved to support the unique needs of our country given its size and complexity. Haats, Mandis and Melas have always been a part of the Indian landscape. They still continue to be present in most parts of the country and form an essential part of life and trade in various areas. Public Distribution System (PDS) has its origin during WWII, when British introduced rationing of grains. The system was started in 1939 in Mumbai (previously named Bombay) and subsequently extended to other major towns and cities. By 1946, as many as 771 cities/ towns were covered. The system was abolished post war, however, on attaining Independence, India was forced to reintroduce it in 1950 in face of renewed inflationary pressures in the economy. Today, PDS would emerge as single largest retail chain in the country. Organized retail formats that were introduced in pre independence era include Canteen Stores Department (CSD) and Post Offices. CSD was introduced to provide canteen facility to armed forces. 3 The Khadi & Village Industries (KVIC) was set up post-independence. Today there are more than 7,050 KVIC stores in India (www.kvic.org). In the first decade of 21st century a lot has transformed in the Indian marketplace. During 1950s till 1980s, investment in various industries was limited due to low purchasing power of the consumers and governments’ policies favouring small scale sector. Initial step towards liberalization were taken in 198590. It was in this period that many restrictions on private companies was lifted, and in 1990s, the Indian economy slowly progressed from being state led to becoming ‘market friendly’. While independent retail stores like Akbarally’s, Vivek’s and Nalli’s have existed in India for a long time, the first attempts at organized retailing was noticed in textiles sector. Raymond was pioneer in this field that set up stores to retail fabric. It also developed a dealer network to retail its fabric. These dealers sold a mix of fabrics of various textile companies. The Raymond’s distribution network today comprises of 20,000 retailers and over 430 showrooms across the country. Other textile manufacturers who also set up their own retail chains were Reliance- which set up Vimal showrooms- and Garden Silk Mills with Garden Vareli. It was natural that with the growth of textile retail, readymade branded apparel could not be far behind and next wave of organized retail wave in India saw the likes of Madura Garments, Arvind Mills, etc. set up showrooms for branded mens wear. With the success of the branded mens wear store, the new age department store arrived in India in early 1990s. This was in sense a beginning of a new era for retail in India. The fact that the post liberalization, the economy had opened up and a new large middle class was spending power has emerged, helped shape this sector. The vast middle class market demanded value for money products. The emergence of modern Indian housewife, who managed her home and work led to a demand for more products, a better shopping ambience, more convenience and one stop shopping. This has fuelled the growth of department stores, supermarkets and other super specialty stores. The concept of retail as entertainment came to India with the advent of malls. The development of malls is now visible not only in the major metros but also in the other parts of the country. 4 Figure 3: Evolution of Indian Retail Foreign Direct Investment (FDI) in Indian retail The current sign of reforms by the Government to initiate Foreign Direct Investment (FDI) in various sectors is bringing a new enthusiasm to the investment climate in India. The recent announcement by the Indian government with Foreign Direct Investment (FDI) in retail, especially allowing 100% FDI in single brands and multi-brand FDI has created positive sentiments in the retail sector. The major opposition party of India and its allies are currently opposing the FDI in multi- Figure 4: FDI Source: Deloitte brand retail. Some of the ruling party allies such as DMK, UDF (Kerala) are also against the policy. Key drivers of retail growth in India The growing disposable income in the country is resulting in increasing consumer spending habits. A large young working population with median age of 24 years, nuclear families in 5 urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. Factors driving the organised retail sector include the following: Higher incomes driving the purchase of essential and nonessential products Evolving consumption patterns of Indian customers New technology and lifestyle trends creating replacement demand Increase in rural income as well as urbanization Increase in easy access to credit and consumer awareness Growth of modern trade format across urban, Tier I, Tier II and Tier III cities and towns Rapid urbanization and growing trend towards nuclear families Expected Future Trends FDI in specialty stores: Multi-brand organized retail in specialty stores such as Consumer Electronics, Footwear, Furniture and Furnishing etc. are expected to expand and mature in the next few years. However the policy condition on sourcing will continue to be a major bottleneck for FDI in many of these segments Dominance of unorganized retail: Flexible credit options and convenient shopping locations may help traditional retail to continue its dominance in retail sector. Growth in small cities and towns: Stiff competition and saturation of urban markets is expected to drive domestic retail players to tap the potential in small cities Online retail in India India’s eCommerce market is at an early stage but is expected to see huge growth over the next four to five years. Over the past 12 months, venture capitalists have invested heavily in India’s eCommerce market, new players have emerged, and the eCommerce ecosystem has developed, presenting a huge opportunity for companies willing to work through some of the logistics and payments challenges in India. Figure 5: Online Retail in India 6 An increasing number of global companies are eyeing the rapidly growing eCommerce market in India. As the world’s 11th-largest economy (and fourth-largest emerging economy after BRIC peers China, Brazil, and Russia), India is starting to appear on eBusiness organizations’ lists of key international markets. The e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012 – 2016. E-commerce sales in India will surpass $1 billion for the first time this year and reach $8.8 billion by 2016. India’s e-commerce industry is set to grow on the back of rising demand from consumers and increasing penetration of technology. India will grow quickly off a small base. India’s eCommerce market is poised to grow by more than five-fold by 2016 as the number of online buyers and per capita online spending increase rapidly. This market is gaining more attention as global brands look to markets that are in the early stages of eCommerce adoption but offer significant long-term potential. Almost 75% of India’s internet users are under the age of 34. As many of them move into the earning segment in the years to come, Internet commerce is expected to get a significant boost. The world's consumers spend on average 22 percent of their disposable income on purchases on the Internet, with Indians at the forefront (33 per cent). Chinese and Indians spend the most time shopping online at 8 hours per month, while French, Finnish, Japanese and Spanish allocate less than four hours to the activity. Figure 6: Annual Online Spend as a %age of Disposable Income 7 1.2 Growth of Departmental Stores in Indian retail Formats that have emerged or become popular in the 1990s are classified as modern retail formats. In terms of professional management and efficiency of integration with the value chain, these formats are classified as part of organized retail chain in India. Economic liberalization, competition, and foreign investment since 1990s led to the proliferation of brands, with both foreign and Indian companies acquiring strong brand equity for their products. Hence, franchising emerged as a popular mode of retailing. Over the last 15 years, franchising as a format of retail expansion has gradually matured. International franchising is also in an interesting phase in India as global organizations like Pizza Hut, Marks and Spencer, McDonald’s, Subway, HP, Holiday Inn, Medicine Shoppe, Domino’s, Gold’s Gym and Kentucky Fried Chicken (KFC) have set up franchises in India. The franchisee showrooms of various readymade garments manufacturers like Arvind Mills, Madura Garments, and Raymond etc. and Titan are perhaps the most visible successes of franchising in India. One of the pioneers in this field, in the area of beauty and personal care products has been Shahnaz Hussian. Today the chain of Shannaz Hussian parlours has more than 200 franchisees in India (www.shahnaz-hussian.com). As the economy evolves and retail as a sector continues to grow, various new avenues in franchising are emerging in the Indian franchise scenario. The other major retailing organization format in India is ‘chain stores’. More and more new or established companies in other trade are coming in to the retail business in India, contributing to the introduction of new formats like malls, supermarkets, hypermarkets, discount stores, specialty stores and department stores. In India, the most of the retail sector is unorganized. The main challenge facing the organized sector is the competition from unorganized sector. Unorganized retailing has been there in India for centuries. The main advantage in unorganized retailing is consumer familiarity that runs from generation to generation. It is a low cost structure; they are mostly operated by owners, have very low real estate and labor costs and have low taxes to pay. Organized retail business in India is very small but has tremendous scope. 8 Figure 7: Share of Organized Retail Sector in Total Retail Trade %AGE YEAR SHARE ORGANISED OF RETAIL SOURCE SECTOR 2005 3.5% AT Kearney 2008 5% McKinsey & Company 2010 8% AT Kearney 2013 10% AT Kearney Data shown in Table is collected from secondary source. Therefore, these are in approximate figures. Department Store Department stores generally have a large layout with a wide range of merchandise mix, usually in cohesive categories, such as fashion accessories, gifts and home furnishings, but skewed towards garments. These stores are focused towards a wider consumer audience catchment, with in-store services as a primary differentiator. Usually, department stores are located within a planned shopping centers or traditional up-market downtown centers. The department stores usually have 10,000 - 60,000 sq. ft. of retail space. Various examples include: Shoppers' Stop, controlled by the K. Raheja Group, a pioneering chain in the country's organized retail; Pantaloons, a family chain store, which is another major player in the segment; Westside, the department store chain from Tata Group's Trent Ltd; Lifestyle, part of the Dubai-based retail chain, Landmark Group; and The Globus department and superstore chain. Various departments within the store have a designated selling space allocated to them, including a point-of-sales terminal to transact and record sales, and salespeople to assist customers. A majority of the department stores in India possess women’s, men’s, kids’, fashion accessories, and kitchenware and home fashion departments. Some departments, to provide convenience to their customers in the browsing and selection of the merchandise, have further sections on ethnic/ Western, formal/ causal, and accessories. Department stores provide a distinctive shopping experience to customers on account on account of services (home delivery, credit card, restaurants, cloakroom, and changing room etc.) extended along with core offerings and atmospherics of the retail store. 9 Pricing of the merchandise offered is relatively high due to trained sales staff, range of merchandise offered and services, and high capital investments. Department stores, generally, opt for centralized buying taking in to consideration the preferences and tastes of the consumers. In case of multiplicity of departments within stores, each department carries out its own buying in accordance with the demand patterns of their customers. Some department stores deal only in specific product category on account of variety and brand available in particular product category, examples being Arcus in Gurgoan and the Food Bazaar chain of grocery stores. Current Scenario ‘India's leading department store chains clocked double digit, same-store sales in the FY14 ended March, significantly higher than in FY13, despite the continuing squeeze on household budgets and high inflation that slowed down the overall consumer goods sector to a decade low. Same-store sales or sales at stores that were operational last year, of Shoppers Stop, Lifestyle International and Reliance Fashion & Lifestyle grew 10-20% in FY14, as against 6-8% the year before, as discounts coupled with an added focus on fast fashion boosted demand and average basket size. Same-store sales are an important indicator of consumer demand and the health of the retail industry. Mr. Govind Shrikhande, MD at Shoppers Stop said that while the overall discounts days were higher, there was a strong recovery in volume growth and transaction size increased by around 10% too. Shoppers Stop posted a 10.2% like-to-like sales growth in FY14 over 8% a year before. The downturn for the retail sector began almost two years ago as an increase in the prices of essential commodities, lower salary increments, adverse macro-economic conditions and government inaction dented consumer confidence. 10 Figure 8: LTL Sales of Major Department Stores This in turn forced retail chains to extend end-of-season sales and add more days to their discount calendar that impacted margins. But now, retailers are seeing better demand and an increase in profitability as well. The revival in sales has come on the back of changes in inventory. Mr. Kabir Lumba, MD at Lifestyle International said that retailers worked harder on the fashion quotient with a better assortment this year. So, with a better proposition, they have managed to make a strong comeback on our full-price merchandise post sale season. Lifestyle posted a 15% same-store sales growth in FY14 over 4.5% in the year previous. Experts feel shoppers spending more on fashion products and apparel indicate initial signs of revival. Due to rupee depreciation last year, several international brands that are imported looked at increasing prices. Hence, consumers could have shifted to Indian retail chains that have a stockmix with a lot of local brands as well. Retailers are also exploring strategies such as in-store events and promoting private labels to drive sales. Lifestyle International, for instance, signed Deepika Padukone to endorse its private ethnic wear brand Melange. As for Shoppers Stop, it has added over 4 lakh members to its First Citizen loyalty programme, a significant number considering that over threefourths of sales come from members. To be sure, shoppers are cutting back on trips to restaurants and supermarkets. The consumer goods segment posted a growth of around 6% last year compared with 18% the year before. The sharp decline is reflected in the same-store sales of grocery chains as well. For instance, Reliance Retail's fashion and lifestyle segment posted 20% like-to-like growth compared with 8% in FY13 while its value format posted 9% growth versus 18% in FY13.’1 1 Article “Blooming same-store sales of Shoppers Stop, Lifestyle, Reliance lift gloom on retail front” at economictimes.indiatimes.com 11 Some of the major players in department store category in India are listed below. These major players are also strong contenders for competition to Shoppers Stop Limited. Globus Globus was launched in 1998 as a part of the Rajan Raheja Group. The company opened its first outlet in Indore followed by two more in Chennai. The flagship store was opened on 1st November 2001 in Mumbai, followed by a vibrant store in New Delhi. Subsequently, its stores were launched in Bangalore, Ghaziabad, Kanpur, Ahmedabad, Noida, Lucknow, Varanasi and Hyderabad.The organization has an innovative and adaptive environment. Globus has achieved customer delight by presenting value products and services through continuous improvement. It has a team of dedicated and passionate employees maintained by constant training. Globus has developed long lasting relationships with its business partners. It employs the best practices of the industry through cost analysis. It has brought about a veritable revolution in the retail industry through its constant efforts and innovation in apparels. It has been a benchmark for many upcoming retailers. It has brought about an important change in the industry and hasdistinguished itself from others. Globus has acquired the best processes and procedures in various fields, such as Marketing & Brand Development, Research & Design, Human Resources, Services, Administering Policies & Procedures and Production & Merchandising. Lifestyle Lifestyle is an international fashion store of the Landmark Group, a Dubai-based company. Lifestyle created a revolution in the Indian Retail Industry by bringing a truly international shopping experience. It was launched in Chennai, and now it is one of the largest professional retailers spread across 3,25,000 sq. ft. in various cities such as Chennai, Gurgaon, Mumbai, Hyderabad and Bangalore. It is a heaven for shoppers with a vibrant and spicy lifestyle. It provides a wide choice of products at affordable prices with a convenient world-class environment and a friendly layout. 12 Being one of the best shopping destinations, it has won the ‘Most Respected Company in the \Indian Retail Sector' and the 'Most Admired Large Format Retail Company' awards in India. Pantaloons Pantaloon Retail was the flagship enterprise of the Future Group. With a chain of 81 fashion stores across 40 cities and towns, Pantaloons is constantly extending its foot-prints into the rest of modern India. Pantaloons which was previously controlled by the Future Group has now been taken over by Aditya Birla Nuvo Limited ['ABNL']. ABNL is a part of the prestigious Aditya Birla Group, a $40 billion Indian multinational, operating in 36 countries across the globe with over 136,000 employees. The first Pantaloons store was launched amidst much fanfare in Gariahat, Kolkata in 1997. Over the years, the brand has undergone several transitions and re-invented itself to bring forth compelling trends and styles catering to the evolving fashion hub. Since its inception, Pantaloons progressed from retailing just a mix of brands to its very own popular private labels as well, designed by the in-house Design Studio. With a sharp focus on bringing the latest in fashion, the Design Studio combines its prowess in design and aesthetics to present styles that keep the consumer fashionably dressed each season. Initially positioned as a store catering to the fashion needs of the entire family, Pantaloons has transitioned to a fashion and lifestyle brand with an emphasis on youth and a focus on designs that are inherently in sync with current fashion trends. Westside (Trent) Tata Group founded Trent Ltd. (Westside) in 1998. The acquisition of a London-based retail chain Littlewoods by the Tatas was followed by the establishment of Trent Ltd, which was later renamed as Westside. It is one of the largest and fastest growing chains serving the customers in various categories, including men's wear, women's wear, kid's wear, footwear, cosmetics, perfumes and handbags, household accessories, lingerie and gifts. The company offers products with a balance between style and price. There are 25 Westside departmental stores operating in 13 various cities like Mumbai, Hyderabad, Pune, Delhi, Banglore, Noida, Gurgaon, Nagpur, Kolkata and many others. Trent had established a hypermarket business with Star India Bazaar which provides them products at lower price and better shopping experience. Star India Bazaar offers customers a variety of products in categories, such as staple foods, fruits, vegetables, consumer electronics, health and beauty products and many more at affordable prices. In the year 2005, Trent acquired 76% stake in Landmark, which is one of the largest books and music retail chains in the country. 14 1.3 Growth of Private Labels in India Private Labels are a win-win solution for retailers and customers in the current retail market structure. While retailers expect better bargaining power with their vendors, in turn better margins and control over their merchandise mix, customers get a wider range, better quality and good prices for the products. The growth of private labels is directly linked to the growth of modern retailing. Retailers need to gain customer confidence in its offerings so as to successfully introduce private labels. Private label’s share in the modern retail in India is about 7%, but it is as high as 40% in European countries, and as low as less than 1% in China. What are Private Labels and why use them? Private labels are brands owned, Figure 9 Trend of Private labels merchandised and sold by retailers themselves. These can be categorized into store brands, store sub-brands &Umbrella brands. They are also called in-store or own brands. Private labels are unique to a particular retailer and they can be divided into a number of categories where the retailer’s name is evident on packaging. From apparel, healthcare products and furnishings to consumer items, they are making their presence felt in a variety of retail items in the country. 15 Private label products are commonly referred to as name brand, store brand, own label, retailer brand or generics. These are brands owned by the retailer rather than the producer or manufacturer. Private label products are found in almost all food and grocery categories. Recently, retailers have been aligning private label brands with identified consumer trends, such as premium and indulgence, everyday value, health and wellness, and organic and ethical (Collins & Bone, 2008). Similarly, Reliance Retail and Food Bazaar offers a range of PLs to suit various consumer needs. The reasons why retailers choose to offer private labels include generating additional margins by by-passing branded suppliers as the power shifts from national brands to retailers; filling gaps in their product range which may not be currently addressed by branded suppliers; including a product variant or a size option in that category and using private labels to differentiate their store’s product range from competitors; and create a distinctive advantage This helps in improving profitability and loyalty to the retailer. Globally, private labels contribute 17% of retail sales with a growth of 5% per annum. International retailers like Wal-Mart of USA and Tesco of UK have 40% and 55% own label brands representation in their stores, respectively. Private label penetration in the United Kingdom is close to 37 per cent currently, and is forecast to exceed 40 per cent by 2011. In Germany private label has shot up from 12 per cent of sales to 34 per cent over the last decade. And apart from the multi-brand retail stores, a category of retailers like Ikea, Toys ‘R’ Us, Zara has also been created who sell only private label brands. The Increasing Acceptance of Private Labels in India Indian retailing has seen a lot of ups and downs over the last few years. With the increasing growth of the organised retail sector, private labels or store brands are also Figure 10: %age Share of Private Labels increasingly accepted by the Indian organised retail market. The recession has significantly given a thrust to private labels, thus favourably 16 affecting the private label sales of almost all major retailers like Reliance Retail, Future group, Aditya Birla Retail, Bharti Wal Mart Retail, Hypercity, Infiniti Retail, Trent, Shoppers Stop etc., offering private label in their merchandise mix. Though the growth of private labels was seen across categories, growth in grocery was prominently seen in supermarkets at 15% and hypermarkets accounting for 30% of total value sales. Introduction of private labels in categories such as apparels and footwear, toys, electronics and appliances enable retailers to expand their offerings. Even Apollo Pharmacy and Guardian Pharmacy entered into their private labels in 2010 in health, beauty and personal care products. The private label market in India is currently estimated at Rs 13 billion, which accounts for 10-12% of organised retail in India. Retailers such as Pantaloon, Trent, Shoppers Stop and Spencer’s have increased focus on private label retailing. Aditya Birla Retail plans to increase the share of own brands in sales from the present 3% to 10% in the next 2-3 years. According to industry estimates, private label margins for electronics goods are up to 20% higher compared with average national brands. This rises to 30-50% when it comes to clothing. Department stores tend to price their products at par with standard-priced products of some leading brands in India, while electronics and appliance specialist retailers, as well as health and beauty specialist retailers, generally price their products lower than the respective leading brands in order to generate volume sales. (Euromontior, 2012) In India there is a growing trend towards acceptance of private label brands and thus their penetration is on the rise especially in the apparel, consumer durables, home care and FMCG segments. India is still an under-branded country and in each category there is still a lot of scope for growth, this is where the private label comes in and the story is looking good so far. For instance, Future Group has already tasted the success with its Tasty Treat brand which is just behind Frito Lay in the potato chips segment. Its Care Mate in the baby diaper segment has left behind Huggies in the in-store sales. At Spencers, diapers and agarbattis sell more than market leaders across the store chain. Experts comment that when it comes to local tastes and preferences, private label brands have an advantage over national brands and this reflects in the increasing percentage share of these goods in Indian retail chains. 17 Low Pricing is Moving Consumers toward Private Labels It has been reported that mid- to higher-income consumers in developing countries are often the first to try and accept private label as low-income shoppers are more cautious in their purchase and need higher levels of trust in a product. Though the lower income households purchase more private label goods in both edible and non-edible categories than the other two income brackets, it is also true that national brands still constitute the bulk of their market baskets.(Nielsen Homescan, 2012) Consumers prefer to buy private label products mainly due to their low pricing and prefer to buy such products from large chained retailers, which also offer a wide variety of private label products with better quality (Euromonitor, 2012). Consumers in India prefer private labels over national brands due to availability and price benefits in that category. According to the Technopak’s Private Label Report 2012, food and grocery segment is a key driver for PLs accounting for 20-25 percent, and sometimes even 40 percent, of all categories in Private Labels. Margins in private labels in staples like sugar, groceries can range between 15-25%. Future Impact of Private Labels ‘Many retailers have increased their profits by offering private label products since there are huge margins to be achieved from private label products, which are 30-40% higher margins than branded products. Retailers are not any more offering low quality products for a lesser price, but they are creating new level of differentiation, better pricing for a good quality product and new merchandising and promotion strategies. One major advantage to the retailers in India, and which works in favour of private labels, comes from the fact that Indian consumers are less brand conscious and more quality and freshness conscious. Most major retailers have introduced private labels not only in food and grocery products, but also in apparels and accessories, consumer durables, toys, healthcare, and home furnishings. The Future group plans to increase its private label portfolio by adding more than 60 products to its private label range. Nirmalya Kumar, Professor of Marketing and Director of the Aditya Birla India Centre, London Business School, and co-author of Private Label Strategy, says private label brands, which occupy less than 5 per cent of the market in India now, are likely to corner 50 per cent of the market as the retail space opens up and matures. 18 Retailing in India is still very primitive. At the moment, private labels almost do not exist in the country. They are less than 5 per cent of the retail business and still have a long way to go. But Indian retail is extremely hot and it offers a proposition that can't be seen anywhere else in the world. Only in China and India can retail chains have as many stores as they have in the US. In no other country can one imagine companies having 5,000-6,000 stores of their own. Private labels have come a long way over the last three decades. They started with retailers wanting to offer cheaper substitutes. This was for two reasons. One, having a private label meant that retailers could negotiate a better margin from the manufacturer. And the other, when they had private labels they had a differentiator. While every shop sold a Coca-Cola and Pepsi, a private label meant that the store now had something that other stores did not. The biggest change in the last decade or so has been the entry of premium private labels. They are no longer saying "buy us because we are cheap", instead today, they are saying "buy us because we are the best". By offering high quality products, many private labels have started charging more than regular manufacturers. Today, retailers have realised that by having top quality private labels they can differentiate themselves from other stores and be a destination store. For instance, Tesco in Europe has a range called the Tesco Finest line. It does have a Tesco Value line, which is cheaper, but the Finest line only sells premium products at premium prices. Tesco's Finest chocolate, for instance, sells at 50 per cent premium over, say, Cadbury's. Similarly, its yogurt sells at more than 50 per cent premium over Danone and other yogurts. Retailers are now doing everything it takes to create premium brands. They advertise on television, take up brand-building exercises, and most importantly, they focus on developing a better product than the existing manufacturers' brands. Organised retailers in India are giving a big push to their own private label products to cash in on a growing appetite among consumers for differentiated and value products. India’s largest hypermarket retailer Future Group, for instance, is looking to launching six-eight new products in the next three-six months. It already has private brands in 40-50 merchandising categories. Also, private brands offer higher margins for retailers, since distribution and marketing costs of these products are very low. 19 Private brands are growing 20-25% each year. In certain categories, share of private brands for Future Group is as high as 35-40%.Market research agency Nielsen expects India’s private label market to grow five-fold to $500 million by 2015. Private label sales rose 22% in 2012, according to the agency. Food products such as packaged foods, refined edible oils, breakfast cereals, ketchups and sauces itself account for 75% of total sales of private label goods.’2 2 An article by Mudra Institute of Communications, Ahmedabad -MICA in India Retail Report 2013 20 1.4 Growth of the Indian Ethnic Wear Market ‘The unorganized segment, which traditionally, and still largely, caters to the ethnic wear industry, has demonstrated steady growth over the past years and is set to grow further by 8.4% over the next decade from the present INR 61,679 crore, or USD 11.63 billion. Modern retail, especially large format retailers are ramping up their expansion plans across metros and Tier I & Tier II Figure 11: Ethnic Wear Market in India cities. This will contribute significantly to the growth of the Indian ethnic wear market. The women’s segment currently accounts for an overwhelming 87% of the total ethnic wear market at INR 54,425 crore (USD 10.26 billion); it is the will continue to drive the overall sector. The 10% 3% growth of this segment that women’s wear segment alone is expected to grow at a steady rate of 8% over the coming decade. The ethnic kidswear segment is projected to grow at a CAGR of 10% for the next few years. Even within kidswear, it is interesting to note that the girls’ ethnic wear market is two and a half times the size of the boys’ ethnic market. While the market for men, presently at INR 1623 crore (USD 305.82 million), is expected to grow at a CAGR of 8.5%, this will largely be within the high fashion, high value segment that is heavily guided by occasion-based purchases. The opportunities thrown up by the wedding/bridal market in India are tremendous. Right from local boutiques to established traditional retailers and regional brands, every bridal wear retailer is vying for a share of the loyal consumer’s wallet in a market that is governed more by design than brand. Niche brands such as Manyavar, Diwan Saheb, and Vastra are few examples of players that have managed to command a premium for their services. Owing to the religious and cultural diversity of India, a wide range of occasions are celebrated. Such celebrations typically start early in the year in January, when Northern India celebrates Lohri, and culminate around October-November with Dussehra and Diwali. On such festive occasions, consumers tend to purchase ethnic wear for both personal use and for 21 gifting, as brands typically bring out new trends and designs to coincide with a festive occasion. These occasions typically drive the growth for women’s, kids’, and men’s ethnic wear. Ethnic wear was initially a category that was largely restricted to the older age segment. However, it is now finding acceptance even among younger consumers, especially women. The young college going girl teams her Indian kurta with either a pair of denims or leggings that represent a fusion of ethnic wear with western wear. This has led to brands focusing on ethnic fusion wear product offerings, in western styles and prints, in order to capture the opportunity. With an interesting interplay of wovens and knits, these brands have completely redefined ethnic wear for younger consumers. Ladies across all ages prefer the salwar kameez subcategory as it is associated with the attributes of convenience, comfort as well as contemporary fashion. One of the key emerging trends contributing to the growth of this segment is the gradual increase in the number of women in the corporate workforce. Many brands have been able to envision this opportunity and have made suitable changes in their respective product portfolios. Thus it is not surprising that, within ethnic wear, kurtas and salwar kameez, which represent 38% of women’s ethnic wear market, are expected to grow at robust rates in the next decade. Currently at INR 20,700 crore (USD 3.90 billion), the salwar kameez category is poised to witness optimistic growth at a CAGR above 10%. Although traditional markets shall continue to be of importance, a consequence of the above factors is the increasing salience of modern formats among consumers. Until modern retail opened its doors for urban consumers, local tailors and neighbourhood boutiques were satisfying the ethnic wear needs of most consumers. Large format retailers were unheard of. Further, these local tailors barely met standards in terms of quality and designs. With the coming of modern retail, consumers have easy access to branded products that straddle the tiered pricing segments. In the value segment where few organized brands have been able to make a mark for themselves, large format retailers such as Reliance Trends, Max, and Big Bazaar offer private labels. In the premium segment, there are national players such as BIBA and W, to name a few, while strongly entrenched local players dominate their respective geographies. Neeru’s, in Hyderabad, Frontier Bazaar and Bombay Selections, in Delhi, and Jashn, in Mumbai, are some examples. 22 Popular LFS formats such as Shoppers Stop, Lifestyle, and Westside are increasing the width of the private label offering and offer the consumers contemporary styling as well as convenience of comparing multiple brands under one roof A very crucial pocket of growth will be the demand from the small towns, which are the metro cities of the future. A large number of brands are already eyeing this opportunity. Miraaya, for instance, has a strong presence in Tier II and Tier III cities both through its EBOs and large formats. BIBA has also opened a large number of stores in Tier I and Tier II cities like Vadodara, Indore, Patna, Visakhapatnam, Agra, etc. However, the demand for ethnic wear is large even within these cities and this demand frequently drives small town consumers to big cities for their shopping requirements. The onset of the e-commerce revolution is also changing the game. Consumers are able to purchase many, if not all, popular ethnic wear brands from the comfort of their homes. With many physical brands setting up online stores and others selling through online portals, customers who do not have access to physical stores can purchase the brands online. Though there are issues that need to be ironed out before the online space emerges as one of the preferred shopping destination for ethnic wear, many ethnic wear brands have started to think of their online presence as a viable sales channel rather than just a website. As different channels continue to emerge and evolve in the ethnic wear market, the growth of brands will be largely dependent on their ability to differentiate themselves across product and service offerings.’3 3 Authored By: Amit Gugnani - Senior Vice President, Fashion and Pakhie Saxena - Associate Director, Retail 23 According to Technopak Analysis, the current market of sarees and ethnic wear stands at Rs 31,000 crore and is projected to grow at 10 per cent to reach Rs 45,000 crore in 2014. The burgeoning growth in this segment is attracting major apparel retailers, such as Shoppers Stop, Future group's Pantaloon, Westside of Tata's retail arm Trent and W stores, which are also aggressively expanding into Tier II and III cities. Anant Daga, chief executive officer of W, a leading contemporary Indian women's wear brand, has witnessed huge successes not only in metros but in smaller towns as well. Figure 12: Ethnic Wear Segmentation They believe that Tier II and III markets promise to be a great destination for the brand to extend its experience. W plans to open 100 stand-alone retail stores by the end of financial year 2011-12.Currently, the brand has 60 exclusive stores across 25 cities in India. Besides focusing on metros like Delhi, Mumbai and Bangalore, W has already ventured into Tier II and III markets such as Lucknow, Jalandhar, Meerut, Bhopal, Coimbatore and Kanpur. Daga added that based on the response they would chart out the next phase of expansion across this segment. Branded ethnic wear is one of the top selling categories in Shoppers Stop stores. For the past few years this segment has seen double digit growth in Shoppers Stop, according to Govind Shrikhande, customer care associate and managing director, Shoppers Stop. Shoppers Stop continuously keep renovating this category and adding more designs and varieties to suit the 24 changing fashion trend,. After the mix and match section, Shoppers Stop has also included a lot of ready-to-stitch material in the stores. Retailers aver that there are a number of factors that influence the growth of this segment, which is dominated by 95 per cent unorganised retailers. Despite the big influence of western wear, a majority of women still have a large representation of ethnic wear in their wardrobe for various occasions. In fact, the willingness to spend has increased all the more with different traditional and contemporary designs being offered. This is why even new entrants like Reliance Trend, a part of the Mukesh Ambani Group, are focusing on this segment. ‘Women are the primary shoppers for Future Group according to Rakesh Biyani, CEO (retail). The women's segments are the top-selling segments and they actively focus on the changing trends and designs in this segment. A number of well known designers have their own-label retail showrooms now at high streets –Anita Dongre, Rohit Bal, Wendell Rodericks – besides the mushrooming of ethnic wear retail entities – Kimaya, Fabindia, Sabhyata. And then there are the well established retail chains such as Shoppers Stop, Pantaloons, Westside, W and others that offer branded ethnic wear. Also growing side by side are local retail brands such as Hyderabad’s Neeru’s and Lucknow’s Jashn that are rapidly expanding across urban India and looking beyond. And finally, there is the growing clutch of e-commerce portals such as Fashion and You offering branded ethnic wear, which are especially attracting tiers 2 and 3 consumers. Women’s ethnic wear is leading the organised market growth. Kilol and Jashn are betting on franchised exclusive stores to go national and international simultaneously. Others like the Bangalore-based Soch, Mumbai's Isvarah, Jole Clothing and Hyderabad’s Neeru's have tied up with retail chains such as Future Group's Central and Lifestyle. Jashn was launched in 2003 and never grew less than 28-30%. Today, they are present in over 21 cities. Unorganised ethnic wear retail is 90% of the market. Overall apparel category spends are rising, with special focus on ethnic wear brands, where many new brands have emerged as market heroes. They sensed the vacuum in the market, ease of entry, and attracted women – the most interesting target consumer. Technopak 25 Advisors places the Indian ethnic wear market at Rs. 56,800 crore, growing at 9% annually (2010-11). Investors are also seeing the opportunity. Azim Premji's Premji Invest dished out Rs. 125 crore for a 7% stake in Fabindia, valuing it at over Rs. 1,500 crore. The handicrafts and handcrafted apparel sector has to take into account designs, techniques and traditions. Fabindia provides market access to rural artisans while providing inputs that give their products a contemporary context and relevance. Fabindia has expanded to Dubai, Mauritius, Rome and Nepal.’4 4 www.hindustantimes.com 26 1.5 Need for the Project The ladies’ Indian-wear department at Shoppers Stop Ltd. consists of three brands- STOP, Haute Curry and Kashish. The brand STOP is further divided into three sub-brands- Classics, Naturals and Workwear. STOP consists of affordable everyday-wear for middle-aged women. Haute Curry is a fusion-wear brand that caters to the young women who are fashion forward. Kashish is a premium brand which consists of occasion-wear with more ornate and embellished merchandise which command a higher price range. The aim of this study is to identify internal factors of the current scenario of ladies’ Indianwear apparel in Shoppers Stop Ltd. This project is intended to understand the entire process of the buying department in the particular section and use the resulting analysis to act as a recommendation to boost the performance of the brands. A primary research- qualitative research and quantitative research will be conducted to gain a greater understanding of the performance of the labels to determine current and potential opportunities of these labels. The analysis resulting from the project is intended to act as a recommendation for improvement of the working of the private labels aforementioned. The aim is to gain a greater understanding of the current aspects of Indian-wear apparel to determine Shoppers Stop’s current position amongst the competing department stores and potential opportunities for their brands. Overall, the goal of the research is to uncover data to answer these informational needs in order to determine the gaps in the buying process which affect the success of their private labels provide a conceptual foundation for a better approach and further developing better strategies. After analyzing the aforementioned research, the project will present and recommend the findings and strategies to incorporate the most effective way to optimise the final output of the private labels and perception of the customers, which forms one of the core areas that define the success of a private label. By utilizing these recommendations the aim is to help Ladies’ Indian-wear private labels at Shoppers Stop to position itself as genuine, relatable brands that offer the best quality product in its category. 27 1.6 Objectives of the Project To understand the pre-season planning of the private labels in the Ladies’ Indian-wear department at SSL To review the in-season performance of the private labels in Indian-wear. To identify and analyse the gaps in the buying process of the department. To study current customer’s perception of current assortment of Ladies’ Indian-wear in Shoppers Stop. To do a competitive analysis of Ladies’ Ethnic-wear private labels in major department stores in terms of product, pricing, VM. To provide feasible solutions to boost the performance of private labels. 28 2. RESEARCH METHODOLOGY A list of important activities to be carried out during the tenure of the graduation project has been mentioned step- by- step below. Activities: Study of Ladies’ Ethnic-wear at Shoppers Stop Development of Research Proposal Study of Private Label Merchandise Literature Survey Background Study of the category Design and Development of Methodology Desing and Development of Sampling Technique Data Collection Design and Development of Competitive Survey Data Collection Data Analysis and Inference Drawing Final Documentation and Presentation Incongruity detection and redressal Final Report Presentation 29 2.1 Research Process Flow Chart Study the Buying Process Customer Perception & Feedback Analysis Inference from Data Analysis Recommendations Competition Analysis Brief Overview of the Process 1. Studying the Buying Process An in-depth understanding and learning of the buying process for the Ladies’ Ethnic-wear private labels of Shoppers Stop will be carried out. Since it is an elongated process, it will be spanning across the entire tenure of the project. 2. Customer Perception and Feedback Analysis Survey forms will be developed to get the opinion of customers on various factors such as: Price range Aesthetic Appeal Comfort Future Collections, etc. 3. Competitive Analysis Study will be carried out about the competition brands of Shoppers Stop ethnic-wear visà-vis the pre-defined parameters such as: Assortment 30 Price range Visual Merchandising 4. Inference from Data Analysis Findings from the above mentioned study will be used to develop final analysis of the gaps in terms of critical factors for the private labels. 5. Recommendations Lastly, suggestions and recommendations drawn from the gap analysis will be proposed. 31 2.2 Research Design Data Collection Types of Data: Nominal data Ordinal data Nature of Data Collection: Primary Research Secondary Research. Primary Research Method of Data Collection: Methodology 1: Observations and Learnings o Data Collection Tool: First-hand information through on-the-job activities and observations during the tenure of the graduation project in the company. Methodology 2: Survey technique o Data Collection Tool: Questionnaires Area of study: Mumbai Secondary Research Source for Data Collection: Existing Company database Internet Publications Data Analysis and Presentation Tabular Representation Graphical Representation Descriptive Representation 32 3. LITERATURE REVIEW 3.1 Company Background Figure 13: Shoppers Stop Logo Shoppers Stop, an Indian department store chain promoted by the K Raheja Corp Group is one of the leading retail stores in India. Shoppers Stop Ltd. began by operating a chain of department stores under the name “Shoppers Stop” in India. It started in the year 1991 with its first store in Andheri, Mumbai. Currently, Shoppers Stop Ltd. has 67 stores in 31 cities. Promoted by Mr. Chandru L. Raheja, Mr. Ravi C. Raheja and Mr. Neel C. Raheja, the K. Raheja Corp. have been leaders in the construction business for over 48 years. With its wide range of merchandise, exclusive shop-in-shop counters of international brands and world class customer service, Shoppers Stop brought international standards of shopping to the Indian consumer providing them with a complete shopping experience. Shoppers Stop retails a range of branded apparel and private labels under the following categories of apparel, footwear, fashion jewellery, leather products, accessories and home products. These are complemented by cafe, food, entertainment, personal care and various beauty related services. It provides quality services, products and the right kind of shopping environment. Shoppers Stop is famous for the expertise and acumen relating to the current practices of the industry. It has developed itself as a household name and has set high standards for itself. The average age of the employees in the organization is 25 years. It has been awarded "The Hall of Fame" and won "The Emerging Market Retailer of the Year Award", by World Retail Congress at Barcelona, on April 10, 2008. Shoppers Stop is listed on the BSE. 33 It was awarded the "Most Admired Apparel Retailer" at the Images Fashion Awards 2000. With a customer entry of about 25,000 customers a day, a national presence with over 3,00,000 square feet of retail space and stocking over 450 brands of garments and accessories, Shoppers Stop has clearly become a one stop shop for all customers. To add to this, Shoppers Stop has benchmarked itself with the best in the world. This is testified by the fact that Shoppers Stop is the only Indian member of the "Intercontinental Group of Departmental Stores", which has the likes of Selfridges (United Kingdom), Karstadt (Germany), Marks & Spencer (UK), Matahari (Indonesia), Myers Grace Bros. (Australia) and Rustan's (Philippines) among its members. Corporate Profile Vision: To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category. Mission: Nothing but the best. To strive and achieve nothing but the best in terms of processes, practices & deliverables. Values to help achieving mission and vision: We will not take what is not ours. The obligation to dissent (against a viewpoint that is not acceptable). We will have an environment conducive to openness. We will believe in innovation. We will have an environment conducive to development. We will have the willingness to apologise and forgive. We will respect our customers' rights. We will create an environment of trust. We shall be fair. We will be socially responsible. Top Management Shoppers Stop is headed by Mr. B.S. Nagesh- Customer Care Associate & Vice Chairman, Shoppers Stop Ltd. Mr. Govind Shrikhande- Customer Care Associate & Managing Director, Shoppers Stop Ltd. 34 Customer Profile Shoppers Stop's core customers represent a strong SEC A and B+ skew. They fall between the age group of 16 to 40 years. The majority of them are families and young couples with a monthly household income above ₹30,000 and an annual spend of ₹15,000. The target customers are upper-middle class and upper class. A large number of customers are also Non-Resident Indians, who visit the stores for cultural clothes. The 4 P’s of Shoppers Stop Product The stores offer a complete range of apparel and lifestyle accessories for the entire family. From apparel brands to cosmetic brands, Shoppers Stop caters to every lifestyle need. Shoppers Stop retails products of domestic and international brands such as Louis Philippe, Pepe, Arrow, BIBA, Gini & Jony, Carbon, Corelle, Magppie, Nike, Reebok, LEGO, and Mattel. Shoppers Stop has also introduced its own line of clothing in the classic, value classic and value fashion segments. It retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, Haute Curry, Acropolis etc. The company also licensees for Austin Reed (London), an international brand, who’s men's and women's outerwear are retailed in India exclusively through the chain. The merchandise at Shoppers Stop is sold at a quality and price assurance backed by its guarantee stamp on every bill. Shoppers Stop has 4 divisions: ‘The Men’s apparels, Ladies apparels, Kids wear and the Non-apparels. Following is their contribution to the turnover. 35 Figure 24: Contribution of SS Divisions to Sales CATEGORY %AGE CONTRIBUTION TO SALES Men’s Apparel 34.3% Women’s Apparel 20.2% Kid’s Apparel 8.7% Non- Apparel 36.8% The like-to like division –wise sales can be seen as follows: Figure 35: SS Division wise Sales Non- Apparels consists of Leather, Watches, Jewellery, Electronics and Personal Accessories. 36 Figure 16: SS Category wise Sales 5 Shoppers Stop Quarterly Report March 2014 37 5 It operates with 90 departments handling around 450 brands managing a combined footfall of over 25,000 customers each day. PRODUCT OFFERINGS Apparel Men'sWear Casualwear Women's Wear Casualwear Accessories Kid's Wear Men’s Accessories Indianwear Inner-wear & Nightwear Sportswear Formalwear Indianwear Maternity wear Girlswear Boyswear Winterwear Beauty & Fragrances Men’s Kid’s Accessories & Toys Home & Kitchen Gold, Silver & Platinum Bed Skincare Fashion & Artificial Bath Kids’ Haircare Accessorie s Jewellery Make-up Women’s New Born Women’s Accessories Formalwear Shoes Fragrances Travel Kitchen & Dining Living Appliances Nightwear & Lingerie Decor Price Shoppers Stop has a proper mix of both affordable and premium priced products. The brands are sold at MRP and lower. Shoppers Stop is a bridge to luxury departmental store which includes selling High Quality products at a high price. The USP is the variety of choice given to the customers rather than the price. Place Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Ghatkopar, Pune (Mumbai) and most recently Calcutta, Shoppers Stop is today recognised as India's premier shopping destination. Shoppers Stop has also launched its e-store with delivery across major cities in India in 2008. The website is “www.shoppersstop.com”. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. 38 Figure 17: List of SSL Stores Source: Shoppers Stop Quarterly Report March, 2014 Promotion Shoppers Stop First Citizen - a loyalty programme and a virtue Shoppers Stop’s virtue of always ‘putting the customer first’ has enabled it to pioneer a reward-based loyalty programme called Shoppers Stop First Citizen. This was launched in 1994. The program offers its members an opportunity to collect points and avail of special benefits. Currently, Shopper’s Stop has a database of over 2.5lakh members who contribute to nearly 65%of the total sales of Shopper’s Stop. They also offer a co-branded credit card with Citibank for their members, called the First Citizen Citibank Titanium Credit Card. With a growing base of over 2.25 million members contributing over 72% to sales annually, Shoppers Stop First Citizen loyalty programme is the biggest and most successful programme in this category. 39 Print Advertisements and Outdoor Media Figure 18: Shoppers Stop Hoardings Discounts and Promotions Figure 19: Promotional Offers Figure 20: Discounts offered at Shoppers Stop 40 Special Events and Associations Figure 21: Associations with Bollywood Brand Ambassadors Figure 22: Shruti Hassan as brand Ambassador for Haute Curry 41 Figure 23: Soha Ali Khan as brand Ambassador for Kashish Social Media Figure 24: Shoppers Stop on Facebook 42 Figure 25: Shoppers Stop on Twitter Figure 26: Shoppers Stop on Youtube 43 3.2 Indian- wear at Shoppers Stop Ladies’ Ethnicwear in Shopper’s Stop provides a wide range of merchandise through both national as well as in-house labels. The national brands available at Shopper’s Stop are Biba, W, Seven East, Gili, Sanaa, etc.The private labels offered in Indian-wear are STOP, Kashish and Haute Curry The philosophy of Shopper’s Stop Indian-wear is to offer a complete wardrobe solution with true value and at a great price for the customers. The Brand Positioning of Shoppers Stop’s Ladies’ Indian-wear can be mapped as follows. High F A S H I O N Low Medium High Low PRICE Figure 27: Brand Positioning of Shoppers Stop Indian Wear Private Labels 1. STOP: STOP is a classic yet contemporary quality brand for the urban modern woman. It is a 44 combination of personal values, customer insight, and shared love of fashion with lots of entrepreneurial team spirit. It aims to be a blend of fashion and functionality. Product Basket: STOP is divided into three sub-brands STOP Classics STOP Workwear Philosophy: Philosophy: “Timeless classics with a “Understated contemporary twist”. STOP Naturals Philosophy: A Underestimated” but A never “A blend of ethnic fashion must with contemporary styling” perfect every day wear for have for the urban working With a touch of rustic charm. our modern Indian woman.” woman.” Merchandise: Merchandise: Merchandise: MNM kurtis with emphasis MNM kurtis are slim fits The USP of this segment is on ethnic surface with ornamentation. fashionable detailing and key its rustic and classic styling innovative of plains and hand blocked SKD sets with varied bottom silhouettes. prints and textures in natural wear like churidars, salwars Knit churidars for the smart dyes. and patialas. urbane chic look. Sets of printed bottom and dupattas for the individualistic woman to create her personal style and look. Customer Profile: Age group: 25 to 45 years. Single or married Profession- Professional works in MNC organisation or educated housewife. Lifestyle - Loves to spend on herself, influenced by colleagues / clients and friends Hobbies - Reads TOI, Cosmopolitan, Elle, film magazines etc. Personality Traits - Spirited with a mature social life Needs - comfort, wash n wear, colourful attractive every day wear , versatile for their various chores throughout the day 45 Problems with - Sheer or tight or fitted, high maintenance, expensive for monthly buying. Priority: Comfort and Functionality/ Style/ Affordable prices. 2. Haute Curry: Haute Curry is a brand inspired by contemporary fashion. Haute Curry for women mirrors the new age Indian woman. Rooted at home and taking on the world with passion, playing myriad of roles with élan and taking on the challenges in her stride. It is contemporary fashion with elements of ethnicity. Attempt is to reinvent Indian ethnic fashion, with an aim to provide fashion in a modern retail environment to the Indian woman. Mission: To be a trendsetter in the women’s Ethnic Fashion Category Customer Profile: Age group – 20- 35 years Profession - Young professionals working in BPO’s, Call centers, Ad agencies, MNC’s & educated housewives. Lifestyle – Modern but yet carries the traditional values, Loves to spend on herself with evolved fashion sense. Exposure to international fashion. Social Life- Going to brunches, parties, pubs, coffee shops etc. Hobbies – Ardent reader of Page3, Elle, Cosmo, Vogue etc. Personality Straits o Highly fashion conscious o Looks for young fashion with ethnic feel o Is upwardly mobile o Seeks exclusivity o Is bold and confident o Trend driven o Gets influenced by peer pressure & colleagues. 46 o Loves shopping as stress relief. o Follower of fashion through movies, television, yearly fashion shows Needs - Bright attractive colours and a lot of shine to add to the glamour value; not very price sensitive if the product is fashionable and a must have. Problems with - Outdated style, boring colours, uncomfortable fitting. Priority: Fashion/ Colour and Shine/ Glamour/ Price 3. Kashish: Kashish aims to paint, decorate and ornament clothes for celebrations that are a part of every individual. It offers specific designs weddings, festivities, etc. Some of the occasions it caters to are: o Festivals o Kitty parties o Formal parties o Weddings and special occasions. Customer Profile: Age group - 25 to 45 years. Matured working professional or a house wife with a refined and elegant taste. Lifestyle: Pays high regards to traditional values and culture, loves attending and organizing family functions/ get together. Personality Traits: Sophisticated and classy, contemporary but not funky, individualistic, fashionable but not a trend setter. Needs - Expensive looking, elegant and rich garment with sophisticated styling Problems with - Gaudy colour ,over-styling and loud embroidery and any ornamentation that does not look classy enough Priority: Sophistication/ Colour/ Price 47 4. THE BUYING PROCESS For an in-depth understanding and an all-inclusive analysis, the project required an acquaintance with the buying process of the private labels at Shoppers Stop. This process being an elongated one, it formed a major part of the daily in- the- job activities, thus spanning across the entire tenure of the project. The buying process in a departmental store can be explained as a suggested staged process before a buying decision is made. It includes: Recognition of customer need Identify the right specification of a product to satisfy the need Searching for a vendor/supplier that can produce a product which meets specification Choose the supplier that meets supply requirements Specify the order (Timelines to be met, quantities to be booked and delivery schedule) Evaluate performance of product and supplier The buying process at Shoppers Stop consists of two primary procedures: A] The Pre-season planning B] The In-season activities and Performance review The flow chart below, explains all the activities that take place in this process with the help of an ideal timeline to be followed for the Autumn/Winter’14 season. This timeline is in tandem with the ‘Buying & Merchandising Calendar’ formed at the beginning of the year at Shoppers Stop. The Flowchart in the “green” colour explains the activities that form a part of the Preseason planning process. The flowchart in the “blue” colour explains the activities that form a part of the in-season activities and performance review of the range. 48 DESIGN DIRECTION 1st week of June '13 CONCEPT PRESENTATION 1st week of July '13 30 days SAMPLING DESIGNS 10th of July'13 Immediately after concepts are finalised. SAMPLING COMMENTS 10th of August'13 30 days RECIEPT OF SAMPLES AND COST SHEETS 10th of October '13 60 days INTERNAL RANGE PRESENTATION 1st of November'13 20 days FINAL COSTS AND RANGE BUILD 20th of Novembert'13 20 days RANGE SIGN OFF 1st of December 10 days CONFIRMED ORDER SHEETS SENT BY BUYER 15th of December'13 15 days 49 VENDOR'S CONFIRMATION OF ORDERS 20th of December'13 5 days LAB DIP/STRIKE OFF APPROVALS AND FABRIC ORDERS End of December'13 10 days FABRIC INHOUSE 4th week of April'14 110 days PP SAMPLE APPROVAL AND LAB TESTS APPROVAL 15th of May'14 20 days PRODUCTION TO START Immediately after PP approval (Lead Time for production is 35 days) INSPECTION TO COMPLETE By end of June'14 10 days DA INTAKE 1st week of July'14 7 days RANGE LAUNCH By 3rd week of July'14 VELOCITY REPORTS Weekly analysis after the range launch FLOOR WALK By 15th of September'14 50 4.1 The Pre-season Planning 1) Design direction The head buyer along with the design team of a label have the preliminary brainstorming session regarding what they plan to bring on the floor for a particular season. The buyer gives a brief to the designers about which styles worked and which styles didn’t work in the previous season. The buyer also provides the design team a direction for the upcoming season. The design team then works towards the concept presentation. 2) Concept Presentation The design presents the mother theme along with the minor themes for the season. The designers have a different minor theme for each month’s input. They also give a flavour of the silhouettes, colours, embroideries and the prints that will form a part of the collection in the concept presentation. Below are the theme boards of the ethnic wear label Haute Curry for Spring/Summer ‘14 51 Figure 28: Haute Curry Themes for Spring/ Summer ‘14 3) Sampling Designs Once the concepts are frozen, the design team begins work on the new samples. The design team are given a fixed budget for every season. This budget is directed towards the sampling and sourcing of inspiration ideas and materials. The samples are made at the various vendors that work with the label. Usually, the designer makes the samples keeping in mind the details of the style vis-à-vis the strengths of the vendor. For Example, if the designer wants to make a collection of knitted tops with placement prints, then he/ she would make that collection with the vendor that is equipped and experienced with it. The number of samples made is in relation to the Option Plan for the season. Option Plan is the assortment plan prepared by the merchandiser for the label at the beginning of the season. The option plan is a detailed intake plan for the season. This intake plan is made in tandem with the like-to-like sales of the same season in the previous year and other elements such as the festivals, holidays, etc. which could affect the sales. The designers have to make the samples as per the MRP’s mentioned in the option plan and therefore, need to take into consideration the type of buttons, patterns and other structural details to fit into the specified MRP. Below are the option plans for STOP, Haute Curry and Kashish for Autumn/Winter’14. 52 Figure 29: Option Plan for A/W ‘14 53 4) Sampling Comments Sampling comments are the first set of comments made on the new samples. This is a preliminary review of samples done by the buying and design team. The buyers do the cost negotiations with the vendors based on tentative quantities for the styles that they feel are very strong for the upcoming season. 5) Receipt of Samples and Cost Sheets A lead time of 60 days is given to the design team to ensure that the samples are in house from all the vendors. The buyers at this stage are responsible to attach “Tags” to the garment with all the important information such as the Style Name, garment attributes like length, fabric, colour and buyer’s name, designer’s name and the season. Figure 30: Sample tags The buyer follows up with all the vendors for the cost sheets of all the samples. Albeit a few vendors, Shoppers Stop follows the method of “open costing” with the vendors in the ethnic wear department. Open Costing is when the components of a cost-sheet are up for discussion with the vendors. This includes fabric cost, cost of trims used, cost of surface ornamentations such as embroidery, CMT charges, etc. Although the cost of fabrics and trims are more or less fixed, the negotiations are mainly focused on the CMT and surface ornamentation charges. 54 This is different from Closed Costing, in which the negotiations are done on the final cost of the garment as specified by the vendor and not on the cost components. This form of costing lacks transparency as compared with the Open Costing method, as the charges applied for the various cost components are not revealed to the buyer. The cost sheet format followed at Shoppers Stop is shown below: Figure 31: Cost Sheet Format 6) Internal Range Presentation The internal range presentation takes place in attendance of the design team, the buying team and the merchandisers of that particular label and department. The buyers have to enter all the styles in the “BUY SHEET” before the range presentation takes place. 55 Buy Sheet is the most important document that the buyer works with. It is the considered to be the “Bible” for a brand for each season. It is a consolidated sheet of all the styles of a season which includes the new styles and also the spill-over styles of the previous season which are supposed to go on the floor. It contains all the important information regarding each style for the entire season and the buy plan of the season. All the elements included in the buy sheet are further illustrated in the table and images below. Buyer Comments Attach cap with sleeveless style Phase Jan Season S14 Department Number 370 Brand SC Product KU Sr. No 27 Style Code S14370SCKU27 Style Name Pink princess Silhouette A Line Casual/Festive Casual Grade B Designer Pramila Vendor Khushi Impex Colour Off White Fabric Printed Cambric Kurta length 38 Sleeve length Cap Sleeves MRP 1199 Margin 55% PO Cost 500 Vat/Cst 11 New Landed Cost 511 DA Actual DA WK 40 56 Size Ratio XS:S:M:L:XL:XXL Size Ratio 1:1:3:3:3:1 Size set 12 Final Order Quantity 900 Sum of Stores 68 Andheri 12 Figure 32: Buy Sheet Format The designers arrange the garments story wise in relevance to their theme boards. The below images depict the theme boards and their corresponding collection of the private label Haute Curry for the Spring/Summer’14 season. 57 Figure 33: Theme wise Collections for SS ‘14 The design team arranges the collections according to their month wise input. This is done to ensure that the appropriate collection is brought on the floor at the appropriate time. For example, the Festive collection is put in the September input so that it is brought on the floor before Diwali festival. The images below show two collections made of light weight cotton fabrics and in soothing colours which were planned for March Input (S/S’14) as they are appropriate collections for summer season. 58 Figure 34: March Input for STOP In the internal range presentation, the merchandisers give feedback on all the styles presented by the design team and decide the perceived MRP of each garment. At this stage, the styles are dropped in case the merchandisers do not approve of the design and aesthetic appeal of the style or if they feel that the perceived MRP is too high for that style. Any alterations and changes in samples are noted by the buyer during the range presentation. In case of a major change like re-styling of a garment, the design team is responsible to execute these changes and handover the revised sample to the buyer for booking. However, in case of minor changes like changing the colours or replacing the existing fabric with a similar quality fabric, the buying team is responsible to communicate the changes to the vendors and execute the changes in the pre- production sample. 7) Final Costs And Range Build At this stage, the buyer negotiates the costs of the selected styles with the vendors to achieve the target ASP (Average Selling Price) and margins. In case the vendor cannot meet the target cost, the styles are either redesigned to fit into the budget or the styles are dropped. Thus the range is build. The final numbers of the samples are tallied with the required options as per the range plan. If the options are short in any particular category, the designers work on additional samples to meet the option plan requirements. 8) Range Sign-Off Once the costs, MRPs and margins of the samples are finalised, the range is presented to the Business Heads. The Business Heads give the final feedback on the range. 59 After getting all the approvals from the business heads, the merchandising team and the buying head assign the quantities to each style and also decide the size ratios for the same. This is also called as “Booking the range”. 9) Confirmed Order Sheets Sent By Buyer After the range sign off, the buyer sends all the vendors their respective order sheets which acts as a confirmation of orders for the vendor. It is an indicator that the vendor can begin work on those styles which are mentioned in the order sheet. In the ethnic wear department at Shopper’s Stop, the A/W’14 range was presented in two phases for the private label “STOP”. The input for the months July-August was closed in the first phase and the input for the months September-December was closed in the second phase. 60 4.2 In-Season Review 10) Confirmation of orders by Vendors The vendor has to acknowledge this order sheet with his confirmation and acceptance. The vendor has to confirm the receipt of this order sheet with his confirmation and acceptance. The final costs for the styles are closed by this stage from both the parties. The original samples along with the comments for the required alterations are dispatched to the vendor for him to proceed with further action. 11) Lab Dip/Strike Off Approvals And Fabric Orders Immediately after the order confirmation, the vendors start work on the fabric lab dip approvals and strike off approvals. Once the buyers approves of the same, the vendors go ahead and place the bulk orders for the fabric as per the average consumption required for the production. The vendors get a lead time of around 100-120 days to make sure the bulk fabric is in house. The buyer’s job is to constantly chase the vendors for the approvals so that all the timelines are adhered to. Print Strike-Off- A test length of fabric specially printed in order to check the pattern registration, pattern repeat and the matching shades in the design Lab –Dip- A lab dip is a swatch of fabric test dyed to hit a colour standard. 61 Figure 35: Lab Dip/ Strike-Off Approvals 12) PP Sample Approval & Lab Tests Approval The PP sample approval is a very importance practice which is religiously followed at Shoppers Stop for every style. It is a mandatory practise for all vendors to submit a preproduction sample. Buyer wants Pre-Production sample (PP sample) to be made in actual production line, so that operators know what they are going to make. This sample is made with actual fabric, trims and accessories and made by sewing line tailors. PP sample must be approved by buyer and the technical persons prior to proceeding actual production. The PP sample is tried by a live model and the fit comments are taken into consideration by the 62 technical team. The comments are noted and sent to the vendor by the technical team, if the technical team approves the sample, the vendor can consider it as a green signal to proceed with the bulk production of the same style. But, if the technical team rejects the PP sample, the vendor has to re-submit the PP sample for approval. The vendors are also required to send the lab test reports on the garment quality to the technical team to prove that the garment the garment meets the prescribed quality standards. Labels & Tags Sample description Labels --L3 wash care label Tags -- kashish tags Style Colours Fabric Season Sleeve less 32" Kurta (MnM) ROSE TUNIC MEASUREMENTS POINTS PINK Tol.+/- Required Actual Length (From HSP) 1/2 32 ok CHEST 1/2 37 ok Waist at 14"HPS HEM -1/2 1/2 33 ok 1/2 30 -0.5 SHOULDER 1/4 11 ok ACROSS CHEST 1/4 10 0.25 Neck width 1/4 8.5 0.5 Neck depth 1/4 4.75 ok ARMHOLE - Curved 1/4 16.5 1.5 Tol +/-: Req. ALL OVER NECK OPENING SHOULD NOT BE LESS THAN 1/2 23" 0 0.75" SIDE SEAM ALLOWANCE FOR KURTA Remarks RAYON Date of approval SS - 14 25-04-2014 Picture Conditionaly Approved Not approved Comments 1 front slit need to clsse to till the marking . 2 pintucks length found un even . 3 armhole found too loose . 4 improper edges at neck/ shoulder . 5 take care of embrodiery . 6 printing deffects will not be acceptable . 7 8 Measurement deviation at variouse places -- not acceptable. 9 Untrimmed threads found more in sample -- Take care in production. 10 Yoke to be graded according to size. Remarks Resubmit sample. MEASUREMENTS POINTS Tol.+/- XS S M L XL XXl LENGTH FROM HPS 1/2 CHEST 1/2 Waist 14.5" from HPS 1/2 Hem 1/2 SHOULDER 1/4 Across Chest below 5" from HPS 1/4 ARMHOLE CURVE 1/4 32 35 31 29 10.5 9.5 15.5 32 37 33 30 11 10 16.5 32 39 35 31 11.5 10.5 17.5 32 41 37.5 32 12 11 18.5 32 43 40 33 12.5 11.5 19.5 32 45 42 34 13 12 20.5 NECK WIDTH 1/8 Neck Depth -- Straight Upto collar point 1/8 8.25 4.5 8.5 4.75 8.75 5 9 5.25 9.25 5.5 9.5 5.75 Note All over neck opening should not be less than 23” Side seam allowance for kurta should be 0.75” Follow New Churidar measurement chart Cutting of panels should be as like orginal sample -- Waist shaping to be smooth. Grading required in front yoke -Minimum 1/4' ' grading Uneven print registration -- Not acceptable. Use only 3 Ply poly Coats threads for stitching Brocade piping tears & uneven -- Not acceptable. 5 Threads Over lock for all seams with minimum width of ¼”. Neck Should be as in original sample. Front back should be same. All Measurement in inches. Note: For Label Placement Use kashish main label & SK-1 size label. Main label to be attached at centre back inside neck seam piping. Size label attach adjust ant to main label at wearer left. slit kurta wash care to attach at 2.5” above Side slit in side seam at wearer left. Wash care / vendor code label to be attached together. WASH CARE LABEL DETAIL L1- Hand Wash only. L3 -- Dry clean only. Figure 36: PP Comments Sheet sent to Vendor 63 13) Production and Inspection After the approval of the PP sample, the vendors start with the bulk production. The production lead time for the vendors is 35 days. After, the production is completed, the vendors co-ordinates with the technical team for inspection of the production samples. At shopper’s stop, it is a norm for the vendors to send the shipment sample just before shipment. They should be sent in actual packing with all labels, tags, etc. This sample is usually kept for future reference for the buyer and also to double check the sample before the bulk is sent out to the warehouse. 14) DA Intake Purchase Order sent to the Vendors Delivery Authorization Vendor dispatches merchandise to the DC DC's check the merchandise and confirm through the system Accounts Department receives the confirmation DC trandports weekly requirement to the store Stocks are uodated in the store Payment to the Vendor Figure 37: DA Process Delivery Authorization (DA) is an international system followed by all major retailers. DA is prepared based on the projected sales for that week. Shoppers Stop follows the OTB system and has a weekly OTB for the ethnic wear private labels. For example, the weekly OTB for a label is say 10,000 pieces in MNM and 3000 64 pieces in SKD, the buyers have to draw a list of styles and quantities that they would like include in that week’s DA after consultation with the vendors (on delivery schedule for the styles) and send this list to the merchandisers. The merchandisers then shoot Purchase Orders to the vendors with the style name and the exact required quantity against it. Thus with delivery authorization system Shoppers Stop can place order according to the demand assessment with the condition that it would pick up a fixed amount every week. Thus it doesn’t have to stock goods at his place and block money in inventory. It also helps in better inventory management as it is based on weekly projections. It is an assurance for both the Shoppers Stop as well as the manufacturer. Manufacturer dispatches the weekly requirements to the 4 DC’s according to the DA. DC’s check the details (date, number) of the product and match it with the invoice. If any detail does not match, even if it is one piece, is rejected. If accepted it causes a mismatch between the Purchase Order and Delivery Authorisation. Hence the PO has to match with the Invoice carried by the Manufacturer. 15) Range Launch and Floor walk After the range is launched, the buyer’s responsibility includes conduction floor walks in different stores to check the quality of the merchandise and the visual merchandising. They also are liable to take constant feedback from all the sales associates and the department managers on the floor regarding the performance of the new styles. In-case, the buyers send out a quality report on all the issues that the find with the merchandise of a particular style to the respective vendor. If the buyer finds unacceptable defects in the merchandise on the floor, the merchandise is returned to the Vendor. Some common defects found in the merchandise while conducting a store visit for quality check is illustrated below. 65 Figure 38: Quality Checks during Floor Walk Item Velocity Report The buyers also receive a weekly sell-thru report from the merchandising team where they review the performance of all the styles on the floor. Separate reports are made brand-wise for MNM (Mix n’ Match) and SKD (Salwar Kurta Dupatta)/ CKD (Churidar Kurta Dupatta) styles. 66 Figure 39: Sell Thru Summary given by Merchandisers The buyers then prepare the velocity report based on these reports and determine the good, poor and average sellers for that week. The styles are listed as per their performance under the heading of “Good, Average and Poor” Sellers. The buyers also tend to then follow up with the CSAs of the stores to know the attributes of the style which makes it a good or a poor seller; for example, gaudy colours do not work well in particular stores. Figure 40: Sell Thru Summary prepared by Buyers 67 Other Important reports maintained by the buyer 1) Order Book An order is mainly prepared for the purpose of audits at the company, both internal and external. It is a consolidated book for all the styles of the season. It consists of the garment picture, cost-sheet and other important details of the style such as, style code & name, MRP, total booked quantity, DA week, etc. Figure 41: Order Book 2) PIP (Product Information Package) This is given to the CSAs of all the stores Pan-India before sending the styles on the floor. A PIP consists of all the important details of each style of the season according to the story/ theme. This information is drawn from the buy sheet. 68 The purpose of a PIP is to educate the CSA’s about the styles present on the shop floor, so that they can project the product better and make an effective sale by passing the information to the consumers. The PIP is uploaded by the buyer on the online portal of Shoppers Stop called “Spandhan” which can then be accessed by all the CSAs. The PIP is updated regularly as and when new styles are taken for the DA. Figure 42: Contents of PIP 69 70 5. CUSTOMER PERCEPTION AND FEEDBACK 5.1 Studying the customer perception of current assortment of Indian-wear at Shoppers Stop For the purpose of the study, a survey was conducted so as to find out how the customers of Shoppers Stop Ladies’ Indian-wear observe its apparel. The aim of the resulting analysis is to help achieve the key goal of providing recommendations for any gaps in the performance of the Shoppers Stop Indian-wear private labels and its future operations. The survey is critical to this study because it reflects the opinion and needs of the customers, which is the basis for all market strategies. Without an understanding of the customer, it would be impossible to analyse the loopholes in the current and future scenarios of the exclusive labels of Shoppers Stop Indian-wear. The survey has been designed to gather unbiased, objective information from the sample population. The survey was conducted over the period of 4 months (January - April) of my project through periodic visits to the stores. The questionnaire used is shown in Annexure A. The objective of the survey: To find the customer perception of Ladies’ Ethnic-wear at Shoppers Stop Data Collection tool for survey technique: Questionnaire Area of study: Mumbai (Western Suburbs) The survey is targeted towards current customers of Shoppers Stop Sample Size: 100 Sampling Technique: Judgemental 71 The Statistical analysis for the survey is as follows: Question 1: “Which are your favourite Indian wear brands?” This was a warm-up question asked to know the preference of Indian-wear brands by the customers. It was an open-end question so as to know the popularity of various competition brands. The survey results showed that Biba was the most popular amongst the competition brands, followed by W. Which are your favorite Indian-wear brands? Biba W Seven East Global Desi Haute Curry Kashish STOP Pantaloons Westside Others 37.50% 22.22% 6.94% 8.33% 19.44% 11.11% 16.67% 5.56% 1.39% 20.83% 0% 20% 40% 60% 80% 100% Figure 43: Favourite Indian-wear Brands Question 2: “Are you aware of the exclusive Shoppers Stop labels for Indian wear?” This multiple choice question was to find out the Brand Recall factor of the exclusive labels offered by Shoppers Stop in the ladies’ Indian-wear section. The customers could indicate any brands out of the three or none, so as to know the brand recall of each individual label. The survey showed that STOP and Haute Curry had more customer brand recall and popularity. This was followed by the premium-wear label Kashish. There were few customers who were unaware of the private labels offered, most of them being first-time customers. 72 Are you aware of the exclisuve Shopper's Stop labels for Indian-wear? 100% 84.72% 84.72% 80% 70.83% 60% 40% 20% 9.72% 0% STOP Haute Curry Kashish None Figure 44: Brand Awareness of Private Labels Question 3: “Which brand do you prefer from the exclusive Shoppers Stop labels?” This was a multiple choice question asked to find the popularity of brands amongst the customers. The analysis showed that the private label Haute Curry had the highest attractiveness among the customers. The survey also showed that a substantial number of 30 customers said that they do not prefer any specific brand. Which brand do you prefer from the exclusive Shopper's Stop labels mentioned above? 70% 60% 50% 36.11% 40% 30% 34.72% 22.22% 18.06% 20% 10% 0% STOP Haute Curry Kashish Figure 45: Brand Popularity of Private Labels 73 None Question 4: “Why do you purchase Indian-wear from Shoppers Stop?” This multiple choice question was asked to fine out the purpose for which the customers purchase from the exclusive labels of Shoppers Stop Indian-wear. The survey showed that maximum number of the customers preferred to purchase the private labels for casual-wear, followed by work-wear and then festive-wear. One of the respondents said that the label STOP was preferred for casual/ workwear whereas the other two private labels were preferred for occasion-wear Why do you purchase Indian-wear from Shopper's Stop? 100% 80% 69.74% 60% 40% 40.28% 27.78% 20% 0% Workwear Festive/ Ocassionwear Casualwear Figure 46: Purpose of Purchase Question 5: “What do you usually buy from the private labels in the Indian wear section?” This multiple choice question was to find out which classification within Indian-wear is most sought after. Since the Indian-wear at Shoppers Stop is split into two sections, that is, Sets and Mix & Match, it was important to know the preferred section for a well-rounded analysis. The survey results showed that a substantial number of customers preferred MNMs over Sets. Within Sets, Churidar/Kurta/Dupatta (CKD) sets were favoured more than the Salwar/ Kurta Dupatta (SKD) sets. 74 What do you usually by from Shopper's Stop in the Indian-wear section? Sets-CKD 20.83% Sets-SKD 9.72% Mix n Match 91.67% 0% 20% 40% 60% 80% 100% Figure 47: MNM vs. Sets Popularity Question 6: “Within MNM, what do you prefer in the following categories?” Bottom Wear Tunics/Kurtas Salwars Thigh Length kurtas Patialas Knee length kurtas Churidars- Knit Calf length kurtas Churidars- Woven Ankle length kurtas Ankle length Leggings Kaftans Sleeve length of Kurtas Full Sleeves 3/4th Sleeves Cap Sleeves Spaghetti/ Straps Fashion Bottoms (Flared pants, Dhoti pants, Skirts) This was an optional question asked only if the respondent chose “MNM” as a preferred sort of assortment. Here, the respondent was asked to choose various options they preferred within the 3 categories mentioned, that is, Bottom-wear, Kurtas and Sleeves. The aim was to find the type of bottom-wear most preferred and the most preferred Kurta lengths and Slevee lengths. 75 The survey results showed that for bottom-wear, knit churidars were most popular. For Kurta lengths, Knee length was the most preferred length, whereas amongst Sleeves, choice of 3/4th or elbow sleeves was common. Within MNM, what do you prefer in the following? Fashion Bottoms 16.67% 37.88% Ankle Length Leggings 9.09% BOTTOMWEAR Churidar- Woven 63.64% Churidar- Knit 30.30% Patialas 24.24% 0% 20% 40% 60% 80% Salwars 27.27% 69.70% 7.58% 15.15% 6.06% 9.09% KURTAS/ TUNICS 0% 20% 40% 60% 16.67% SLEEVES 7.58% 0% 10% 16.67% 15.15% 20% 30% 40% 50% 80% 65.15% 37.88% 60% Thigh Length Knee Length Calf Length Ankle Length Kaftans Any Full Sleeves 3/4th Sleeves Cap Sleeves Sleeveless Straps Any 70% Figure 48: Preference within MNM Question 7: “Please rate the private labels in terms of the given criteria in the order of importance in a garment, on a scale from 1 to 5” This question was aimed at finding the customer perception of the performance of each private label on the key areas. With respect to an individual private label, this question helped to point out the key factors that the customers are satisfied with and the ones which need to 76 be worked on. It also helped to compare the performance of the 3 labels with each other on the critical areas. The factors that were rated by the customers were pricing, quality, variety, fashion quotient and fit. The analysis showed that the label Haute Curry scored higher in aesthetic aspects such as color, style/ design and important product features like quality and fit. However, the label fell short on its price range and maximum respondents found the label to be expensive. For the label STOP, the survey showed that it excelled when it came to price range and the comfort that the products offered. However, maximum respondents felt that the label needs to work on its product features and aesthetics. The label Kashish received an average response on all the attributes. However, it scored the least on its price range. Average Rating Scored by Labels from 1 to 5 (1 being the lowest & 5 being the highest) 3.85 3.80 3.873.83 3.90 3.83 3.82 3.78 3.80 3.76 3.77 3.79 3.74 3.80 3.73 3.70 3.70 3.70 3.60 3.56 3.60 3.56 3.50 3.45 3.50 3.41 3.40 3.30 3.20 3.10 Haute Curry Kashish STOP Figure 49: Average Rating on Key Areas Question 8: “Please rate the level of satisfaction with the variety of options offered in the private labels in Indian wear brands at Shoppers Stop.” This question was asked using a Likert scale, to find out the customer satisfaction in relation to the variety of assortment offered by the private labels in the Shoppers Stop Indian-wear 77 department. The question was trailed by a follow-up question asking the respondent to indicate the reason for their satisfaction or dissatisfaction in relation to the options offered for sale. This question also helped to compare the relative level of satisfaction or dissatisfaction of each private label, as stated by the respondents. How satisfied are the customers with the assortment offered by the labels (expressed as percentage) 70% 57.63% 60.78% 57.14% 60% 50% 40% STOP 30% 20% 10% KASHISH 16.95% 20.34% 16.67% 14.29% 13.73% HAUTE CURRY 13.73% 11.76% 11.90% 5.08% 0% Very Satisfied Satisfied Neutral Dissatisfied Figure 50: Level of Customer Satisfaction While most of the respondents were satisfied with the assortment offered by all the 3 labels, the reasons for their dissatisfaction were noted down. Some of the common reasons given were: Sizes and Fits o Many respondents had complaints with the lack of sizes available for a particular style in a store. o There were complaints regarding the fits for the labels STOP and Kashish with respect to certain silhouettes. Price Range o Many respondents found the price range offered by Haute Curry and Kashish to be expensive. Options o The most common reason for dissatisfaction with STOP was the lack of new and innovative styles. Many of them felt that the patterns offered were old and the colors could be improved. 78 Quality o One of the major complaints against the label Haute Curry was regarding the color bleeding. o Some respondents also felt that they were unable to find season-appropriate colors and styles. As the survey was conducted during Summer season, the respondents wanted more options in pastel colors, cooler fabrics and shorter sleeves. o According to the survey, some of the assortment lacked the following elements Short Length Kurtas More variety in Occasion-wear Basic/ core styles Unique/ quirky prints Kurtas with embroidery Salwars and Ankle-length leggings are not offered in the MNM section Insufficient colors in the Knit Churidars section. Question 9 A: “Out of the pictures shown, please choose the style/ styles that you would prefer to purchase” This is the first part of the pictorial question. This consisted of 10 arbitrary pictures of experimental silhouettes and styles in Indian-wear. When presented with the pictures, the respondents were asked to select one or more of the styles that they would purchase if offered for sale. This helped to analyse future potential for the private labels of Shoppers Stop, to incorporate novel styles/ silhouettes in their assortment. It also pointed out various details and aspects of the garment that can or cannot be experimented with. Most importantly, it helped to understand the mindset of the customers better. 79 Most Preferred Style S10 S9 S8 S7 S6 S5 S4 S3 S2 S1 18 19 19 9 14 17 10 13 20 19 0 5 10 15 20 25 Figure 51: Most Preferred Style The 5 most preferred styles were as follows: Figure 52: Top 5 Styles To further the analysis, an age-group wise preference of the 10 styles was also noted. This can be seen as follows: 80 Age-group Wise Style Preference 14 12 12 S1 10 9 7 6 S6 4 4 4 3 2 3 2 11 0 0 0 0 0 00 0 22 31-40 2 2 11 0 20-30 S7 3 2 2 1 Below 20 S5 5 3 1 S4 7 6 5 4 0 8 7 6 S3 9 8 8 2 S2 10 41-50 1 0 0 S8 22 0 51-60 1 1 1 0 000 0 0 00 S9 S10 Above 60 Figure 53: Age-wise Preference of Styles Question 9 B: “Out of the pictures shown, please choose the color palette that you would prefer the most while purchasing garments” This is the second part of the pictorial question. This consisted of 5 pictures of standard colour palettes; such as, deep colours, dark colours, pastel shades, neutral colours and bright colours. When presented with the pictures, the respondents were asked to select the colour palette that they like the best and would consider while purchasing garments. This helped to analyse how much importance the customers attached to the colour story of a garment. While some customers gave no preference to the colour of the garment while making a purchase, most of the customers chose colour palette depending on the on-going season. 81 Most Preferred Color Palette C5 11 C4 22 C3 5 C2 25 C1 18 0 5 10 15 20 25 30 Figure 54: Most Preferred Color Palette The most preferred color palettes were Figure 55: Top 2 Color Palettes A comparison with the age-groups surveyed also showed the inclination of a particular agegroup towards a certain colour palette. This can be seen as follows. Age-group Wise Colour Preference 14 15 C1 9 10 7 7 5 5 0 0 00 1 0 Below 20 1 1 20-30 C2 7 5 2 4 3 0 31-40 C3 4 1 2 41-50 2 C4 11 51-60 Figure 56: Age-wise Color Preference 82 0 0 1 111 Above 60 C5 Question 10: “Age” This demographic question was asked in order to know the age group within which majority of the customers lie and to correlate the survey results depending on these groups. Age 9.72% 4.17% 2.78% 40.28% Below 20 13.89% 21-30 31-40 41-50 51-60 above 60 29.17% Figure 57: Age of Respondents Question 11: “Occupation” This demographic question was the last question of the survey, asked in order to better understand the profile of the respondents and correlate the survey results accordingly. Occupation 13.89% 25.00% Home Maker Working Professional Student 61.11% Figure 58: Occupation of Respondents 83 Analysis of the Customer Survey Maximum respondents of the survey fell into the age-group of 21-30 and 31-40 years. About 60% of the respondents were working professionals, followed by Homemakers and then students. Most of the respondents purchased Indian-wear from Shoppers Stop for casual-wear, followed by work-wear. The number of respondents purchasing occasion-wear was very few. National Brands like Biba and W were the clear favourites of the respondents and hence are strong competitors of the private labels. The private labels have a commendable brand recall and awareness among the respondents. About 35% of the respondents showed no brand preference. This directs towards a significant gap in the customer loyalty towards the private labels. A whopping 92% of the respondents preferred MNM over Sets. Within MNM, Knit Churidars were the most preferred in the bottom-wear category, whereas their woven counterparts were least preferred. Also, a substantial portion of 62% of respondents showed a preference for ankle-length leggings and salwars, collectively. These categories are currently missing from the bottom-wear assortment offered currently by the private labels. Knee-length Kurtas were the most preferred amongst top-wear, whereas kaftans were least preferred. Thigh-length and Ankle-length kurtas were preferred by a collective portion of 42% of the respondents. Although these lengths are a part of the current assortment, very few options in these are available and could be exploited further to its fullest capability. For the sleeve-lengths, maximum respondents preferred 3/4th sleeves. Cap sleeves was another favourite of the respondents, however, very few options were available with cap sleeves. Considering the summer season, in which the survey was conducted, cap sleeve kurtas are season-appropriate styles which should have been capitalised on. Many of the respondents were dissatisfied with the sizes available at the store at a given time. A major factor which results in the shortage is the total quantity booked per style and its subsequent ratio. For example, for the label STOP, if 1200 pieces of a style are booked, they are distributed amongst 60 or more stores pan India. Each size set consists of sizes ranging from XS:S:M:L:XL:XXL depending on the style. Each 84 size set consists of a size ratio in which the sizes are sent to the stores. Let us assume the ratio to be 1:2:3:3:2:1. Hence, approximately only 2-3 size sets reach a store for a particular style. In this case, if the ratio for a size is merely 1, the store is likely to receive only 2-3 pieces of the given style in that particular size. Hence, this causes shortage. Another cause for dissatisfaction among the respondents was the price-range, especially for Haute Curry and Kashish, as many of them felt that the styles offered were expensive. The most common reason for dissatisfaction with STOP was the lack of new and innovative styles. According to the customer feedback, some of the lacking elements in the assortment were core styles, short length kurtas, better embroidery, better colors in the knit churidars section, etc. In the first part of the pictorial question, the age-group of 21-30 showed a preference for the styles: The above styles indicate the preference for asymmetrical hemlines, experimental silhouettes, unique prints, bold colors and color-blocking as the features to be included in the garments. The age-group of 31-40 preferred the styles: 85 The above pictures showed that the older age-group of 31-40 preferred simpler silhouettes, but were experimental in their choice of patterns and prints. They emphasised on the comfort and elegance of the garment. In the second part of the pictorial question, the age group of 21-30 years preferred the duller shades of pinks and mauves as the palette indicates. The age-group of 31-40 years preferred the either the bright shades or the deeper shades of blues. This can be seen as follows: Since majority of the respondents (current and potential customers) fall under these age- brackets, the above shown preferred styles and colors should be taken into consideration by the private labels for their future collections. 86 6. COMPETITIVE ANALYSIS Competitive Analysis of Ladies’ Ethnic Wear private labels in major department stores. For an in -depth study of the status quo of ethnic wear private labels and its relevance and position as compared to its existing competitors in the market, comparative analysis of private labels in the ethnic wear category of major department stores has been conducted. The platforms studied for the same, have been used as a base for the competitive analysis and simultaneously recommending solutions for any gaps found. Figure 59: Criteria for Competition Analysis The study of the current scenario of apparel has been done within the context of the key platforms mentioned above, based on secondary data available from company database and observations from the store visits, in the western suburbs of Mumbai. Objective of the Competition Analysis The objective of the Analysis is to ascertain the competitor’s product offering and value proposition in the market for the women’s wear private labels offered in their ethnic wear categories. 87 The analysis was conducted to Understand the assortment breadth/depth in terms of major items, styles, fabrics and colours stocked by the competitors in their private labels. Act as tool to determine the price points of different product offerings within the category. Help determine the floor space and visual display features provided by the competitor to its private label for ethnic wear category. For an all-inclusive analysis, three brands were taken into consideration. These brands are: 1) Westside Established in 1988 as a part of the TATA Group, Trent Ltd. operates Westside. The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already established 74 Westside departmental stores (measuring 15,000 30,000 square feet each) in 42 cities pan-India. Westside offers three private labels in the ethnic wear section: 1) Bombay Paisley – A fusion wear, affordable label, targeted towards the youngsters. 2) Zuba – A more expensive label which offers designer garments made of rich Indian hand woven textiles. 3) Westside – The affordable label for everyday wear. It is their biggest label in the ethnic wear section and provides a wide assortment of MNM and SKD products for casual wear and work wear. 2) Pantaloons The first Pantaloons store was launched in 1997. Pantaloons stores have an abundance of choices across categories that range from western to Indian wear, formal to party wear and active wear for men, women and kids. Pantaloons has extended its horizons to fashion accessories like fragrances, footwear, handbags, watches, sunglasses and much more. Pantaloons has 81 fashion stores across 40 cities and towns pan-India. Pantaloons which was previously controlled by the Future Group has now been taken over by Aditya Birla Nuvo Limited ['ABNL']. 88 Pantaloons offer three private labels in the ethnic wear section: 1) Rangmanch -It offers a melange of contemporary styles with an Indian vibe across a wide range of kurtas and churidars exuding charm and simplicity. 2) Akkriti - This contemporary brand offers indo-western silhouettes in kurtis, dhoti pants and patialas. The eclectic vibe of colours, fabrics and designs make it a great option for fashion conscious youngsters. 3) Trishaa- It is a brand for traditional Indian occasions. The collection has a plethora of designs across salwar-kameez-dupatta sets. 3) Lifestyle Lifestyle International (P) Ltd. started it operations in India in the year 1999 and operates in overall 25 cities with more than 41stores all across India. It is a part of the Dubai based retail and hospitality conglomerate Landmark Group and comprises Lifestyle stores (Large format Departmental stores), Home Centre (Home Improvement stores) and Max (Value fashion chain) along with International fashion apparel brands UCLA and Bossini. Each Lifestyle store brings together five concepts under one roof – Apparel, Footwear, Children, Homeware & Furnishing and Beauty & accessories, offering a convenient one-stop shop for customers. Lifestyle offers only one private label in ethnic-wearMelange – It is a contemporary ethnic wear brand for women. Its wide assortment includes, kurtas, salwars/ churidars, dupattas and kurtis for ladies that can be liberally mixed and matched. The collection at Melange boasts of designs inspired by traditional Indian crafts like block printing and exquisite hand embroideries on cotton, silk and other fine fabrics. To better understand the positioning of competitor brands, the following table can be seen. 89 Figure 60: Comparison between Competing Brands POSITIONING Style Affordability Exclusive FORMAT TYPE and Youthful, affordable Trendy, youthful and fashion vibrant brand Tata Multi brand (national Multi brand (national Trent Group (Only brand and private brand and private Private Labels) labels) labels) PITCH Affordable Style Fresh fashion Latest Fashion TARGET Affluent consumers Consumers in SEC A Affluent consumers in CUSTOMER in SEC A and B and B SEC A and B PRIVATE LABELS OFFERED IN THE LADIES ETHNIC WEAR SECTION For the purpose of the analysis, Westside store at Malad (West), Pantaloons Outlet at Malad (West), Shopper’s Stop store at Goregaon (West) and Lifestyle store at Goregaon (East) were taken into consideration. 90 6.1 Competitive Analysis for Fusion Wear FUSION WEAR- Key Observations DESCRIPTION PAISLEY (WESTSIDE) Tunics, Kaftans, Knit VARIETY- Tops, Kalidar WIDTH Kurtas and Straight NO OF OPTIONS AKRITI CURRY (PANTALOONS) (SHOPPER’S STOP) Maxi Dress, Kurtas with asymmetric hemline, Short kurtas and shirts Kurtas ASSORTMENT FOR TOP WEAR HAUTE BOMBAY 12 25 Flex, Cambric, Sub PRICING FOR TOP WEAR ₹699-₹899 PRICE PRODUCT OFFERING ASSORTMENT shirts, shirts and churidar sets Cambric, Voile Jersey, Mul, Rayon, Crepe, ₹499-₹1699 ₹699-₹1999 at ₹499 and ₹699-₹899 Leggings, Low Crotch Pants, Shorts, Palazzo Pants Skirts, Shorts, Leggings, palazzo pants Pants, leggings BOTTOM NO t- Dresses at ₹ 899) VARIETY- WEAR jumpsuits, ₹499-₹899 (Shirts ENTRY POINT FOR dresses, Chambray ₹699-₹1199 RANGE tunics, kaftans, Cambric, Cotton PRICE tops, 30 Jersey, Cotton FABRICS Kurtas, OF OPTIONS 5 7 91 6 printed PRICE RICING FOR BOTTOM WEAR ₹549-₹799 RANGE ENTRY Printed PRICE Leggings POINT ₹549 Three BROWSERS ₹349-₹1199 for 4-way browsers on VISUAL the floor space MERCHANDISING 1 WALLS Printed Leggings for ₹349 ₹999-₹1299 Printed Leggings for ₹1299 4 browsers on the floor space 6 browsers with one nesting table dedicated 1 dedicated wall 6 display arms wall with 6 with display arms 3 display arms Haute Curry also offers SKD sets which is not offered by the other labels Akkriti and Bombay Paisley. The price range of the SKD range is ₹2799₹5499 ₹3199 Figure 61: Haute Curry SKD 92 ₹699 ₹799 ₹599 ₹899 ₹699 Figure 62: Product Assortment of Bombay Paisley (Westside) ₹69₹9 ₹699 ₹ ₹799 ₹699 ₹1699 ₹1199 ₹699 ₹699 Figure 63: Product Assortment of Akkriti (Pantaloons) 93 ) ₹1399 ₹1499 ₹1399 ₹699 ₹899 ₹1399 9 9 ₹699 ₹699 ₹999 ₹1099 ₹699 ₹1399 9 Figure 64: Product Assortment of Haute Curry₹699 (Shoppers Stop) Analysis of Fusion Wear: Haute Curry offers a wider range of products and more number of options as compared to the other fusion wear labels in top-wear. Jumpsuits, T-shirt and Churidar Sets are some of the product categories offered by Haute Curry which is missing in the other labels. However, Haute Curry has very few variety and options in the bottom wear range and is missing on important fashion products like skirts and other fashion bottoms provided by other labels. Haute Curry has much higher price points as compared to the other labels for top wear. Maximum of the styles are in the range of ₹1000 and above. 94 The other labels provide a lot of options and strong styles in the entry price point range whereas Haute Curry has neglected this price range. Even for bottom wear, Haute Curry is highly priced than the other labels. The label is selling printed leggings at ₹1299, whereas the similar product category is being sold at other labels for less than half the price, at ₹549 and ₹349. 95 6.2 Competitive Analysis for Everyday Wear (MNM) EVERYDAY WEAR (MNM)- Key Observations RANGMANC DESCRIPTION WESTSI H DE (PANTALOO MELANGE STOP (LIFESTYL (SHOPPE E) R'S STOP) NS) Basic Kalidar Kurtas, Straight Kalidar Straight Kurtas Kurtas, with Kurtas, Kurtas in asymmetric kalidar Angarakhas varying hemlines, basic Kurtas, , straight VARIETY lengths, printed straight Angarakhas, kurtas, - WIDTH Few kurtas for EPP Kurtas with tunics, Kalidar varying flared Kurtas, lengths and kurtas Tunics asymmetric and short kurtas hemlines. NO ASSORTMENT FOR OF OPTIONS TOP WEAR 50 (About 70 options (35 90 15 options options in EPP) options 90 options (30 in EPP) (20 in EPP) Poly Crepe, Cambric, for EPP) Cambric, Cambric, Cotton Dobby, Cotton Cambric, Dobby, Flex, Flex Slub Knit South Cotton, Cotton Voile, Poly Crepe, FABRICS South Cotton, Moss Cotton 96 ₹599- ₹599-₹1999 ₹1299 ₹499-₹1999 ₹699- (Asymmetric ₹1499 Angarakha for PRICING FOR ₹1299, PRICE Embroidered RANGE kurta with foil print for TOP WEAR ₹1099, Knit dress for ₹999) ENTRY ₹599-₹899 ₹599-₹999 ₹499-₹899 ₹699-₹899 Knit/Wov Knit/Woven Knit/Woven Knit/Wove en Churidars Churidars, n Churidars, Churidars, Salwars, Patiala And Salwars, Printed Dupatta Patialas, Churidars Sets, PRICE POINT VARIETY PRODUC T Palazzo Palazzo Pants, Pants, Printed Straight fit Churidars Pants ASSORTMENT 25 colours 40 colours in 35 colours in 25 colours FOR BOTTOM in in churidars WEAR churidars, 10 colours in 15 colours salwars OFFERIN G churidars in salwars NO OF and 10 OPTIONS colours in patialas 97 churidars, ₹499-₹699 ₹499 ₹499-₹699 PRICE ₹499₹1299 RANGE PRICING Churidars and ₹499 for Salwars for Churidras ₹499, for Salwars Printed Patiala sets ENTRY for churidars for for ₹999 PRICE Patialas POINT and FOR BOTTOM WEAR Churidars ₹499, ₹499, ₹699 Printed Churidars for ₹599 11 floor 18 browsers, floor 5 browsers, BROWSE 4 racks for racks RS all gondolas Workwear- 4 for churidars for 5 browsers, Classics & churidars Naturals- 3 bottoms browsers each VISUAL 3 3 MERCHANDISI dedicated walls with 16 walls NG walls with display arms 21 10 display arms WALLS dedicated 6 dedicated Workwearwith 19 display display arms over 5 dedicated arms walls, Classics & naturals- 6 arms over 1 wall each None OTHER ELEMEN 2 nesting tables 4 for displaying tables EPP products TS nesting 3 for tables displaying STOP EPP MNM products and printed 98 nesting for leggings, 3 bust forms for kurta display. ₹699 ₹899 ₹1299 ₹699 Figure 65: Product Assortment of Westside (Westside) in MNM Category ₹799 ₹1499 ₹1499 Figure 66: Product assortment of Rangmanch (Pantaloons) in MNM category 99 ₹499 ₹799 ₹1399 ₹1299 ₹999 Figure 67: Product assortment of Melange (Lifestyle) in MNM category ₹1199 ₹1399 ₹1199 ₹999 ₹899 ₹699 Figure 68: Product assortment of STOP (Shoppers Stop) in MNM category 100 Analysis of Everyday Wear (MNM): STOP has a wide variety of options in kurtas, however the width of products is limited as compared to the other labels. STOP needs to include shorter length kurtas and other fashion elements like asymmetric hemlines in kurtas which are stocked by its competitors. STOP price range is well in par with the other labels, the maximum price closes at ₹1499 which is less than Lifestyle and Pantaloons. However, STOP gives more emphasis on fashion products fetching a higher MRP than EPP products. The other labels have a wider assortment of styles in the EPP range as compared to STOP. STOP has many significant missing elements in bottom wear like salwars and printed churidars which are present in other labels like Westside and Melange. As compared to other brands, their bottoms like Palazzo Pants are more highly priced. STOP should have more competitive pricing like its competitor brands for bottom wear. Labels like Melange and Pantaloons used attractive packaging concepts like “Theme tags”, which were attached to the garments. These tags denoted that those particular styles were part of a specific collection, thus making their styles more thought of and well presented. Figure 69: Theme Tags used by Competitors 101 6.3 Competitive Analysis for Everyday Wear (SKD) category: EVERYDAY WEAR (SKD)- Key Observations DESCRIPTION NO WESTSIDE OF OPTIONS 35 FABRICS (PANTALOONS) 30 (15 EPP) Cambric, ASSORTMENT TRISHA Cambric, Dobby, Cotton Flex, South Cotton, Handloom, Kota, Jaquard And South Cotton Viscose Chanderi PRICE ₹1599- RANGE ₹2999 STOP (SHOPPER'S STOP) 25 Cambric, Dobby, Voile, Powerloom ₹1699-₹2999 (Kurta+ Jacket set ₹1499-₹2999 for ₹2699) ₹1599-₹1899 PRICING ENTRY (placement PRICE print POINT embroidered and ₹1699-₹1999 (Kurta + Dupatta ₹1499-₹1999 Set) sets) 2 of 4-way BROWSERS browsers VISUAL MERCHANDISING 2 WALLS dedicated walls with 12 display arms 102 11 of 2-way browsers on the 2 browsers floor 12 display arms on the wall 4 display arms over 1 dedicated wall ₹1899 ₹2499 ₹2599 ₹2599 Figure 70: Product assortment of Westside in SKD category ₹1699 ₹2499 Figure 71: Product assortment of Trisha (Pantaloons) in SKD category 103 ₹1499 ₹2299 ₹2999 Figure 72: Product assortment of STOP (Shoppers Stop) in SKD category Analysis of Everyday Wear (SKD): STOP has a much poor assortment of SKD sets as compared to the other labels. Trisha and Westside have a specific design sensibility and unique assortment for their EPP styles. Here, Westside offers a distinctive range of style with placement prints and embroidered necklines for their EPP range, whereas Trisha has a unique concept of selling Dupatta & Kurta set sold without the bottom as a part of their EPP line. STOP however, doesn’t have a separate EPP range; they simply have few styles of lesser MRP as compared to the other styles. STOP has a more reasonable minimum price range for SKD than the other labels. The minimum of STOP at ₹1499 is better than its competitors which start at ₹1599-₹1699. The label is at par with the other labels with its maximum price. 104 6.4 Competitive Analysis for Premium Wear PREMIUM WEAR- Key Observations DESCRIPTION ZUBA MELANGE (WESTSIDE) (LIFESTYLE) KASHISH (SHOPPER’S STOP) Straight Kurtas, Angarakhas, Stoles And Kalidar Kurtas, Bottom Wear VARIETY- Like WIDTH Pants, Pallazo Straight Kalidars. Straight Kurtas Shantoon Kaftans and Shirts Churidars. Core Kurtas, styles are offered in ASSORTMENT 5 colorways. NO OPTIONS OF 20 (MNM and SKD) 30 (only SKD) 70 (30 MNM and 40 SKD) Cotton, Chanderis, Tussar FABRICS Chanderi, PST, Silk, Net, Handloom Cottons Jacquard, Powerloom, Brocade and Shantoon, and Chanderi Silk Mul, Rayon, Silk, Crepe and Georgette) ₹3000-₹6000 ₹799-₹3999 PRICING (Jacquard set for PRICE (Kurtas and ₹4000, Chanderi RANGE SKD for set ₹1499-₹3999, Stoles 105 w/embroidery for for ₹4000, ₹999-₹5599 (₹999-₹2099 for MNM and ₹2399-₹5599 for SKD) ₹1199-₹2799 Brocade set for Bottoms ₹4599, SKD and and for ₹799- one ₹899) set by designer duo Dhruv & Pallavi for ₹5500 3 Browsers for SKD 4 browsers on BROWSERS & Browsers floor and 1 1 rack 2 for MNM, 1 Rack rack & 1 Nesting table VISUAL MERCHANDISING 2 1 WALLS dedicated wall with 6 browsers walls dedicated with display 6 arms (5pcs of each style displayed) were 1 ₹2299 Figure 73: Product assortment of Zuba (Westside) 106 for MNM with 4 arms & 1 wall for SKD with 6 arms * ₹1699 wall ₹2499 ₹2999 ₹3999 Figure 74: Product assortment of Melange (Lifestyle) ₹999 ₹4599 ₹1999 Figure 75: Product assortment of Kashish (Shoppers Stop) 107 ₹9999 Analysis of Premium Wear brand: Zuba is a premium label from Westside and has a distinctive brand identity. The label provides garments made of handloom and silk fabrics and is associated with designer Krishna Mehta. Melange SKD range caters to the occasion wear and festive wear requirements of the customers. Most of the products are heavily embroidered and are made of festive fabrics like Jacquard, Brocade and Chanderi. Kashish although positioned to be a festive wear brand, offers a wide variety of product assortment ranging from printed kaftans, cotton kurtas to more festive kurtas and sets made of Chanderi and Georgette. Unlike the other labels, the identity of Kashish appears confused looking at its product assortment. Although, it has a much wider assortment than the other labels, the brand identity of Kashish is not clearly defined. The price range of Kashish has the widest range with kurtas starting from ₹999 and going up to ₹5599. This range suits the pockets of all types of customers and hence is more commercially viable than the other labels. 108 7. CONCLUSION 7.1 Areas of Concern and Recommendations The in-depth study of the private labels, the buying process helped to build a strong foundation for the project. It helped me to identify internal factors of the current scenario of the private labels in ethnic-wear. Further, the customer survey and competition analysis conducted during the project helped to achieve a comprehensive understanding of the current position of Indian-wear apparel of Shoppers Stop amongst the competing department stores and potential opportunities for their labels. The qualitative research and quantitative research so conducted helped me to gain a greater understanding of the performance of the labels to determine current and potential opportunities of these labels. The resulting analysis from the same, have been used to propose certain recommendations to boost the performance of the brands. The final recommendations have been given vis-à-vis areas of concern which were brought forward in terms of critical gaps through the above mentioned analysis. 1. Area of Concern: Product Assortment Recommendation 1: The competitive analysis showed that the major competitors such as Westside and Pantaloons had an assortment of Short Kurtas which were waist length, in their labels Westside and Akkriti respectively. This option was missing in the Shoppers Stop ethnic-wear assortment. Thus, a collection of short kurtas with 28” length should be incorporated in the assortment. Recommendation 2: According to the pictorial question regarding preferred silhouettes/ styles asked during the survey, it was found that many of the customers were willing to experiment with new silhouettes. The styles that were preferred the most had asymmetric hemlines, SKD with flared pants etc. This was especially true in case of the younger age- group below 31 years. For the label Haute Curry, which already offers an eclectic range of styles, this could mean more creative freedom to take the brand a step further. 109 Figure 76: Experimental Silhouettes Age-group 21-30 Also, many of the respondents were of the opinion that the private label STOP offered older patterns and need to include more innovative styles. The older age-group of 31-40 years, most of the customers preferred simpler silhouettes with experimental prints. This could mean an opportunity to incorporate new prints into the collections while maintaining simpler silhouettes. For the label STOP, incorporating such new styles can increase the level of satisfaction of its customers. . Figure 77: Experimental Silhouettes Age-group 31-40 110 Since these customers formed a major chunk of the respondents, it is recommended that innovative styles be included in the assortment with bolder prints, different hemlines and patterns, etc. Recommendation 3: During the survey many customers pointed out the lack of assortment appropriate for the current season of summers. Since most of the garments had either 3/4th sleeves or no sleeves and inappropriate fabrics, customers who were looking for such options such as cap sleeves or half sleeves were left dissatisfied. Also, many customers felt that the fabrics used were inappropriate for the current season. Thus, it is needed for the labels to be more sensitive with such details and churn out season appropriate assortment on the floor such as shorter sleeves, pastel colours and light weight cotton fabrics during summer. Recommendation 4: The findings of the customer survey showed that a substantial percentage of about 40% of the customers preferred ankle-length leggings, followed by 24 % of customers opting for salwars. These options are missing in the assortment of all the three private labels. Also, almost 30 % of the customers preferred patialas, which although offered, are in minimal quanities and options. The competition analysis showed that competing brands such as Westside, Zuba, Melange, offered salwars and patialas along with other bottom-wear. Also, as seen in the competition analysis, competing brands of label Haute Curry such as Bombay Paisley and Akrriti had a much wider assortment in bottom-wear including printed leggings, shorts, varying lengths of skirts, etc. Therefore, it is recommended to include essential bottom wear options like Salwars and Ankle Length Leggings to STOP MNM and fashion bottom-wear options like skirts, printed leggings, shorts etc. to Haute Curry. 2. Area of concern : Price Range Recommendation 5: A major portion of the respondents during the customer survey, felt that the price range for the brands Haute Curry and Kashish was high. This was a cause for dissatisfaction, according to the findings. According to the feedback, some customers felt that 111 the styles offered in these labels were physically appealing but higher priced than what they should be offered for. This could mean losing out on a customer group with a liking towards the assortment otherwise. ₹2799 ₹3999 Figure 78: Actual MRP higher than Perceived MRP Thus it is recommended that the actual MRP of styles offered in these two labels, should match the perceived MRP of the styles as viewed by the customers so as to provide value for money to the customers. Recommendation 6: As per the competition analysis, the competing brands of Haute Curry, namely, Bombay Paisley and Akkriti provide a lot of options and strong styles in the Entry price Point range. Bombay paisley offers its EPP range between ₹699- ₹899, whereas Akkriti provides its EPP range between ₹499- ₹899. The label Haute Curry does not offer an EPP range, completely missing out on the category. 112 The label STOP provides an EPP range between ₹699- ₹899. Although this price range is at par with the competing brands, the styles provided within this range are not enough. Therefore, it is recommended to introduce EPP Range for Haute Curry and improve the assortment width and depth at EPP level for STOP. 3. Area of Concern: Stock of Sizes Recommendation 7: During the customer survey it was found that many of the respondents were dissatisfied with the sizes available at the store at a given time. A major factor which results in the shortage is the total quantity booked per style and its subsequent ratio. For example, for the label STOP, if 1200 pieces of a style are booked, they are distributed amongst 60 or more stores pan India. Each size set consists of sizes ranging from XS:S:M:L:XL:XXL depending on the style. Each size set consists of a size ratio in which the sizes are sent to the stores. Let us assume the ratio to be 1:2:3:3:2:1. Hence, approximately only 2-3 size sets reach a store for a particular style. In this case, if the ratio for a size is merely 1, the store is likely to receive only 2-3 pieces of the given style in that particular size. Hence, this causes shortage. In order to counter this problem, the private labels should increase the quantity booked per style so that every store receives a minimum of 3-4 size sets of each style. 4. Area of Concern: Packaging Recommendation 8: All the Kashish hang tags have “Dry Clean Only” indication on them. This is required for most of the premium-wear label’s garments. However, certain styles have easy maintenance and do not require specific wash care. Even for such garments, the same hang tag is used. This specification on the hang tags may demotivate the customer from purchasing the products. Therefore, it is recommended to have different hang tags for different styles for this label, or to include a separate hang tag with the “Dry Clean Only” specification on the garments which require special wash care. Recommendation 9: 113 During the competition analysis, it was observed that the labels of competing stores such as Pantaloons and Lifestyle used attractive packaging concepts like “Theme tags”, which were attached to the garments along with the hang tags. These tags denoted that those particular styles were part of a specific collection, thus making their styles more thought of and well presented. It was also observed that the competing labels used a separate hang tag depicting certain wash care specifications. For example, Westside had a tag depicting the maintenance of hand crush in the garments after wash. Such labels add value and increase the attractiveness for the customers. Therefore, using such tags is recommended. 5. Area of Concern: Brand Identity Recommendation 10: Kashish although positioned to be a festive wear brand, offers a wide variety of product assortment ranging from printed kaftans, cotton kurtas to more festive kurtas and sets made of Chanderi and Georgette fabrics. Unlike the other competing labels, the identity of Kashish appears confused looking at its product assortment. Although, it has a much wider assortment than the other labels, the brand identity of Kashish is not clearly defined. 114 Figure 79: Wide Assortment offered by Kashish Therefore, for the consumers to better relate to the brand, the product assortment of Kashish needs to adhere to its brand identity. 115 6. Area of Concern: Visual Merchandising Recommendation 11: Recently the Shoppers Stop store at Malad, where the study for the project was mainly conducted, underwent an overhaul. So the visual display of the ethnic-wear department appears to be aesthetically appealing and the merchandise is displayed in an attractive and uncluttered manner. However, so as to take the display a step further, there is still scope for improvement. The sections can have visual aids such as Bust Forms on the Nesting tables or Racks to increase the appeal of the merchandise. Also, special signage to display key garments such as core kurtas or bottom-wear can be added to increase the value proposition of the labels. Lastly, fashion bottoms can be stacked separately either on gondolas or nesting tables to boost the performance. 116 8. LIMITATIONS OF THE STUDY This study has attempted to delve into some of the important issues. However it is admitted that there are some limitations in the conduct of this study which are as follows: The study has been undertaken on an All India basis but it was not possible to visit whole of India for this purpose and the study is restricted only to selected areas of the Western Suburbs of Mumbai, because quantitative information was very difficult to obtain. Some of empirical investigations could not be carried out in detail because of the non-availability of relevant information for undergoing those investigations. The data is self-reporting in nature which cannot be generalized. The possibility of errors being introduced into the data by ignorance or selective perception calls for cautious interpretations. For a well-rounded analysis and findings, it was imperative to direct the customer survey towards the regular customers of Shoppers Stop, which could have been done by taking the ‘First Citizen’ customers into consideration. However, due to constraints of access and external validity, this data was inaccessible. As a result of this, a subset of the targeted population of the survey was first-time customers who were not able to provide an objective feedback of the private labels. There appears to be little updated information on as a lot of changes have taken place but were not incorporated. Most of these are off-shoots of the self-imposed restrictions during the process of research in order to keep the research within manageable limits as time allowed was short. 117 PRE-SEASON PLANNING AND IN-SEASON PERFORMANCE ANALYSIS OF THE LADIES’ ETHNIC-WEAR PRIVATE LABELS SHOPPERS STOP LTD. JANUARY – APRIL 2014 BY NEEKITA KENKRE M/MFM/12/21 FACULTY GUIDE LIPI CHOUDHARY BATCH 2012- 2014 MASTER OF FASHION MANAGEMENT DEPARTMENT OF FASHION MANAGEMENT STUDIES NATIONAL INSTITUTE OF FASHION TECHNOLOGY [MUMBAI] Ladies’ Ethnic-wear, Shoppers Stop Project Executive Summary Project Executive Summary Project Title: Pre-season Planning, In-season Performance Analysis of the Ladies’ Ethnic-wear Private Labels Name of Company: Shoppers Stop Ltd. Department: Buying & Merchandising Department for Private Labels of Ladies’ Ethnic-wear Project Objective: This project was intended to understand the entire Buying process the private labels in ladies’ Ethnic-wear at Shoppers Stop and to study the internal and external factors of the current scenario of the private labels. The goal was to identify and analyse any gaps in the functioning of these labels so as to provide recommendations in order to boost their performance. May 21, 2014 Ladies’ Ethnic-wear, Shoppers Stop Project Executive Summary The three private labels consist of – Exclusive Labels in Ladies' Ethnic-wear STOP Classics STOP Workwear STOP Naturals Strategic Mandate: This transition includes a comprehensive study through: Studying the buying process which comprises of the pre-season planning and the inseason review of the labels. Conducting a survey to understand the opinions and needs of the current customers of Shoppers Stop Ladies’ Ethnic wear. Conducting an exhaustive research of the value proposition offered by the competing labels. Research Process and Findings: By gathering first-hand information through on-the-job activities, the buying process was understood. It required being a part of the pre-season planning for the season A/W ’14, May 21, 2014 Ladies’ Ethnic-wear, Shoppers Stop Project Executive Summary and the in-season review for S/S ’14. This being an elongated and continuous process, it formed a part of the entire tenure of the project. The customer feedback and perception analysis directed towards a gap in meeting the customer expectations. This was in terms of certain missing product categories, expensive price range, lack of sizes, etc. It also helped to point out towards the mindset of the customers and willingness to experiment with innovative styles. The competitive analysis helped to ascertain the product offering by the private labels of major department stores and determine the position of Shoppers Stop’s private labels as compared to these. The platforms studied for the same included Assortment, Price range and Visual Merchandising. The Department Stores taken into consideration were: Westside, Pantaloons and Lifestyle. This directed towards certain incongruities in terms of entry price points, product packaging, etc. Conclusion: The in-depth study of the private labels and the buying process helped to build a strong foundation for the project. It helped in identifying the internal aspects of the private labels in ethnic-wear. Further, the customer survey and competition analysis conducted during the project helped to achieve a comprehensive understanding of the current position of Indian-wear apparel of Shoppers Stop amongst the competing department stores and potential opportunities for their labels. The final recommendations have been given vis-à-vis areas of concern which were brought forward in terms of critical gaps through the above mentioned analysis. Areas of Concern included: Product Assortment Price Range Stock of Sizes Packaging Brand Identity Visual Merchandising May 21, 2014 ANNEXURE- A Sample Questionnaire used for surveying the current customers of Shoppers Stop to find out their perception of private labels in the store: Q.1 Which are your favourite Indian wear brand? Q2. Are you aware of the exclusive Shopper’s Stop labels for Indian wear? (STOP, Haute Curry, Kashish) Q.3 Why do you purchase Indian-wear from Shopper’s Stop? • • • Work wear Festive/ Occasion wear Casualwear Q.3 What do you usually buy from Shopper’s Stop in the Indian wear section? • • • Sets (CKD) Sets (SKD) Mix N Match Bottom Wear Tunics/Kurtas Sleeve length of Kurtas Salwars Thigh Length kurtas Full Sleeves Patialas Knee length kurtas Churidars- Knit Calf length kurtas Churidars- Woven Ankle length kurtas Ankle length Leggings Kaftans Fashion Bottoms (Flared pants, Dhoti pants, Skirts) Any Length 118 3/4th Sleeves Cap Sleeves Spaghetti/ Straps Any Length Only Dupattas Q.4 Please rate the following brands in terms of the given criteria in the order of importance in a garment, on a scale from 1 to 5. Attribute Quality Price Fit Comfort Style/Design Fabric Colour STOP KASHISH HAUTE CURRY Q.5 Please rate the level of satisfaction with the variety of options offered in the private labels in Indian wear brands at shoppers stop. Very Satisfied Satisfied Neutral Dissatisfied STOP Kashish Haute Curry Please give your reasons for the above answer. Q.6 A] Out of the pictures shown, please choose the style/ styles that you would prefer to purchase. Q.6 B] Out of the pictures shown, please choose the color palette that you would prefer the most while purchasing garments. Q.7 Please indicate your Age group • • • • • • Below 20 20-30 31-40 41-50 51-60 Above 60 Q.8 Please indicate your Occupation • • • Home Maker Working Professional Student 119 Q.6 Part A 1 2 3 4 9 5 10 6 7 120 8 Q.6 Part B 1 2 3 4 5 121 REFERENCES www.raymondindia.com www.imagesretail.com www.hindustantimes.com www.hindustantimes.com www.4psbusinessandmarketing.com/25082011 www.shoppersstop.com 122 CERTIFICATE FROM FACULTY MENTOR This is to certify that Ms. Neekita Kenkre has completed the Degree Project entitled “PreSeason Planning, In-season Performance Analysis of Ladies’ Ethnic-wear Private Labels” under my guidance. She has been submitting the progress report on time. She is hereby allowed to participate in the internal and external jury for Degree Project. (_________________________) Name of Faculty Mentor: Ms. Lipi Choudhary Date: 21nd may, 2014 Place: Mumbai. i DECLARATION I, Neekita Kenkre hereby declare that the Project entitled “Pre-Season Planning, In-season Performance Analysis of Ladies’ Ethnic-wear Private Labels ” is my original work and no part of the project has been copied from any other reports or any other were carried by someone else and this have been submitted for any other degree/award. However, any material taken from any other published sources has been suitably referred and acknowledged at various places. Name: Neekita Kenkre Roll Number: M/MFM/12/21 Batch: Master of Fashion management, 2012-2014 Centre: NIFT, Mumbai Date: 21nd May, 2014 Place: Mumbai ii ACKNOWLEDGEMENT I am grateful to NIFT for providing me an opportunity to do research work on “Pre-Season Planning, In-season Performance Analysis of Ladies’ Ethnic-wear Private Labels”. I express my whole hearted thanks to my faculty guide Ms. Lipi Choudhary for her encouragement and moral support in organizing my work and giving me valuable tips for making it presentable. I am indebted to Ms. Ekta Kamran, Trading manager at Shoppers Stop Ltd., my industry mentor who has guided and supervised me throughout this study. I have no words to express my gratitude to her. I am also thankful to Mr. Hitesh panchal, Deputy Buyer for Haute Curry & Kashish, for providing me the details of conducting the research from its inception. My thanks are also due to the Ethnic-wear team at Shoppers Stop for their advice in collecting data and other relevant information. I will be failing in my duty if I do not mention the name of my CC Mr. Tanmay Kandekar and other faculty for his help in my Degree Project NAME: Neekita Kenkre ADDRESS: C-Wing, 604, Oberoi Gardens, Thakur Village, Kandivli-East, Mumbai-400101. Master of Fashion Management Date of submission: 21nd May, 2014 iii TABLE OF CONTENTS Chapter No. Title Page No. 1 INTRODUCTION 1-28 1.1 Retail Industry in India 1-7 1.2 Growth of Departmental Stores in Indian Retail 8-14 1.3 Growth of Private Labels in India 15-20 1.4 Growth of the Indian Ethnic wear Market 21-26 1.5 Need for the Project 27 1.6 Objectives for the Project 28 RESEARCH METHODOLOGY 2 2.1 Research Process Flow Chart 2.2 Research Design 29-32 30-31 32 LITERATURE REVIEW 33-42 3.1 Company Background 33-38 3.2 Indian-wear at Shoppers Stop 39-42 3 iv Chapter No. Title Page No. 4 THE BUYING PROCESS 43-64 4.1 Pre-Season Planning 46-54 4.2 In-season Review 55-64 5 CUSTOMER PERCEPTION AND FEEDBACK 65-80 6 COMPETITIVE ANALYSIS 81-102 6.1 Competitive Analysis for Fusion-wear 85-89 6.2 Competitive Analysis for Everyday-wear (MNM) 90-95 6.3 Competitive Analysis for Everyday-wear (SKD) 96-98 6.4 Competitive Analysis for Premium-wear 99-102 7 CONCLUSION 7.1 8 Areas of Concern and Recommendations 103-110 103-110 LIMITATIONS OF THE STUDY 111 APPENDIX 112-115 REFERENCES 116 v TABLE OF FIGURES Figure No. Title Page No. 1 Indian Retail Market 2 2 Share of Organized and Unorganized retail 3 3 Evolution of Indian Retail 5 4 FDI 5 5 Online Retail in India 6 6 7 Annual Online Spend as a %age of Disposable Income Share of Organized Retail Sector in Total Retail Trade 7 9 8 LTL Sales of Major Department Stores 11 9 Trend of Private labels 15 10 Percentage Share of Private Labels 16 11 Ethnic Wear Market in India 21 12 Ethnic Wear Segmentation 24 13 Shoppers Stop Logo 33 14 Contribution of SS Divisions to Sales 36 15 16 SS Division wise Sales SS Category wise Sales vi 36 37 Figure No. Title Page No. 17 List of SSL Stores 39 18 Shoppers Stop Hoardings 40 19 Promotional Offers 40 20 Discounts offered at Shoppers Stop 40 21 Associations with Bollywood 41 22 23 Shruti Hassan as brand Ambassador for Haute Curry Soha Ali Khan as brand Ambassador for Kashish 41 42 24 Shoppers Stop on Facebook 42 25 Shoppers Stop on Twitter 43 26 Shoppers Stop on Youtube 43 27 28 Brand Positioning of Shoppers Stop Indian Wear Haute Curry Themes for Spring/ Summer ‘14 44 51-52 29 Option Plan for A/W ‘14 53 30 Sample Tags 54 31 Cost Sheet Format 55 32 Buy Sheet Format 56-57 33 Theme wise Collections SS ‘14 57-58 vii Figure No. Title Page No. 34 March Input for STOP 59 35 Lab Dip/ Strike-Off Approvals 62 36 PP Comments Sheet sent to Vendor 63 37 DA Process 64 38 Quality Checks during Floor Walk 66 39 Sell Thru Summary given by Merchandisers 67 40 Sell Thru Summary prepared by Buyers 67 41 Order Book 68 42 Contents of PIP 69-70 43 Favourite Indian-wear Brands 72 44 Brand Awareness of Private Labels 73 45 Brand Popularity of Private Labels 73 46 Purpose of Purchase 74 47 MNM vs. Sets Popularity 75 48 Preference within MNM 76 49 Average Rating on Key Areas 77 50 Level of Customer Satisfaction 78 51 Most Preferred Style 80 viii Figure No. Title Page No. 52 Top 5 Styles 80 53 Age-wise Preference of Styles 81 54 Most Preferred Color Palette 82 55 Top 2 Color palettes 82 56 Age-wise Color Preference 82 57 Age of Respondents 83 58 Occupation of Respondents 83 59 Criteria for Competition Analysis 87 60 Comparison between Competing Brands 90 61 Haute Curry SKD 92 62 63 64 65 66 67 Product Assortment of Bombay Paisley (Westside) Product Assortment of Akkriti (Pantaloons) Product Assortment of Haute Curry (Shoppers Stop) Product Assortment of Westside (Westside) in MNM Category Product assortment of Rangmanch (Pantaloons) in MNM category Product assortment of Melange (Lifestyle) in MNM category ix 93 93 94 99 99 100 Figure No. 68 69 70 71 72 Title Product assortment of STOP (Shoppers Stop) in MNM category Theme Tags used by Competitors Product assortment of Westside in SKD category Product assortment of Trisha (Pantaloons) in SKD category Product assortment of STOP (Shoppers Stop) in SKD category Page No. 100 101 103 103 104 73 Product assortment of Zuba (Westside) 106 74 Product assortment of Melange (Lifestyle) 107 75 Product assortment of Kashish (Shoppers Stop) 107 76 Experimental Silhouettes Age-group 21-30 110 77 Experimental Silhouettes Age-group 31-40 110 78 Actual MRP higher than Perceived MRP 112 79 Wide Assortment offered by Kashish 115 x