GRADUATION PROJECT on SCOPE OF ETHNIC WEAR BRANDS OF SHOPPERS STOP IN THE PLUS SIZE CATEGORY FOR WOMEN By NILKANCHA BADHIYE (M/BFT/10/16) NIFT, MUMBAI BATCH 2010-14 Under the guidance of Prof. Jomichan S. Pattathil (National Institute of Fashion Technology) & Industry mentor Mr. Raman Gupta Trading manager (Shoppers Stop) Contents Acknowledgement (i) CHAPTER 1: INTRODUCTION PAGES 1.1 Objective 1.1.1 Sub Objective 1.2 Background 1 CHAPTER 2: SHOPPERS STOP: THE COMPANY PROFILE Introduction The Store Products Marketing Loyalty program and co-branded credit Sister Stores 2.6.1 Crossword 2.6.2 Home Stop 2.6.3 Brio 2.6.4 Desi Café 2.6.5Hypercity 2.6.6 M.A.C. 2.6.7 Arcelia 2.6.8 Mother Care 2.6.9 Nuance 2.6.10 Timezone 2.7 Marketing Mix Model 2 3-6 2.1 2.2 2.3 2.4 2.5 2.6 7-9 CHAPTER 3: LITERATURE REVIEW 3.1 Indian Retail Scenario 3.2 Ethnic Wear Market in India 3.3 The Plus Size Market CHAPTER 4: ETHNIC WEAR BRAND STUDY 4.1 ETHNIC WEAR BRANDS IN SHOPPERS STOP 4.1.1 BIBA 4.1.2 SEVEN EAST 4.1.3 W 4.1.4 VIKRAM PHADNIS 4.1.5 SANAA CHAPTER 5: PRIVATE LABELS 5.1 Evolution Of Private Label Brands 5.2 Private Label Growth in India 5.3 Commercial Objectives behind Launching Private Labels 5.3.1 Higher Margins 10 11-15 16-21 22 23-25 26-30 5.3.2 Stronger Customer Loyalty 5.3.3 Differentiation 5.3.4 Freedom with Pricing Strategy 5.3.5 Positioning during economic downturns 5.4 Comparing national brands and Pvt label brands. 5.5 10 P‘s Of Private Label Brands 5.6 Types of Private Label Brands 5.7 Private Label Brands Of SS in Ethnic Wear 5.8 Features of private labels CHAPTER 6: RESEARCH METHODOLOGY: 31-49 6.1 Data collection source 6.2 Frame Work And Tools Used For Analysis 6.3 Area of study: Mumbai region 6.4 Period of study 6.5 Observations From Retail Store Visits &Surveys 6.5.1 Size Range 6.5.2 Findings From Brand Study 6.5.3 Findings From Competitor Analysis 6.5.4 Survey Analysis and Findings Suggestions 50-52 Conclusion 53 Appendix 54-57 References 58 Acknowledgement This project has taken this shape because of efforts of many people. First of all I would like to thank National Institute of Fashion Technology for giving me this opportunity to work in the reputed company, Shoppers stop. I would like to specially thank Mr. Raman Gupta, (Trading manager at Shoppers Stop), also my industry mentor for conceptualising this project and giving me the basic understanding of its purpose and functionality. I take this opportunity to express my profound gratitude and deep regards to my college mentor, Mr. Jomichan Pattathil, for his exemplary guidance, monitoring and constant encouragement throughout the course of this project. I would also like to thank my colleagues at Shoppers Stop- the apparel section buying and merchandising team, for their constant guidance and supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents for their kind co-operation and encouragement which help me in completion of this project. (i) Chapter I INTRODUCTION 1.1 Objective: To study the scope and growth potential of ethnic wear brands in the plus size category for women. 1.1.1 Sub objectives: To study various ethnic wear brands( both national as well as in house) To study customer behaviour and preferences. Identify problem areas and suggest solutions. 1.2 Background Ethnic wear refers to traditional dress worn by people belonging to a certain ethnic group or culture. They are important because they tell people about your belonging and wearing them is like showcasing your own culture or race. Wearing them is also a way of showing your respect for people who are gathered in traditional and religious ceremonies. The common types of ethnic wear that are worn in India are kurta and kurta pyjama set for men and sarees, kurtas. lehengas and kurtis for women. Traditionally worn for formal functions and celebrations where you engage in traditional practices and prayer sessions, they have come to be considered as casual wear too. Ethnic wears now come in modern designs so that they can be worn in different settings and for a variety of occasions. A printed sari can be paired with matching blouse and accessories for a birthday party or a marriage ceremony. You can wear kurtis with jeans or leggings when you are out to have some fun or engage in some energetic activity. You can wear a printed or embroidered churidar set to work, in case you are celebrating an ethnic day or to give a break to your normal dressing routine. Men can wear kurta-pyjama sets to traditional functions or when visiting places of worship. The shorter kurtas can be paired with trousers and jeans to add some variety to your style. There is a whole range of ethnic wear in different designs from brands like Biba, Aurelia, Soch, W, Shree, Mother Earth, etc. The aim of this project is to find the potential of ethnic wear in Indian market for plus size women. Women in India are now waking up to the potential of high fashion in all sizes. We‘re seeing a growing demand for latest trends and styles in the size range of XL-XXXL in both western and ethnic wear. The kurti is fast emerging as the preferred choice of dress for larger sizes. Meanwhile the top fabrics of choice in this segment are chiffon and georgette because they give the wearer a long flowing look. The Indian women ethnic wear industry has taken great strides over the past few years, and today, many of the world's leading fashion labels are sourcing their products from India. Moreover, with changing lifestyle, rise in the number of working women, rapid urbanization and increasing awareness, the women ethnic wear market in India is anticipated to register a strong growth in the coming years. 1 This report is an outcome of extensive primary & secondary research spanning over 3 months and thorough analysis of industry trends. For the study, I have conducted F2F and telephonic interviews with proprietors/store-operators of retail outlets. In addition, I also interviewed more than 200 women of all age groups in Mumbai region to embrace various aspects of the industry trends in the report. The report is based on in-depth study and analysis of trends, demographics, consumer behaviour, and spending patterns. Additionally, I have identified and rated various factors influencing the customers in selecting an ethnic wear product, based on the survey. Besides, the report also discusses marketing strategies a company should adapt to increase its sales of ethnic wear. The section has been incorporated after thorough analysis of the Indian market trends, consumers' buying habits and analysis of growth strategies of various companies. 2 CHAPTER 2: SHOPPERS STOP: THE COMPANY PROFILE 2.1 INTRODUCTION: The foundation of Shopper’s stop was laid on October 27, 1991 by the K. Raheja Corp. Group of companies. Being amongst India’s biggest hospitality and real estate players, the group crossed yet another milestone with its lifestyle venture-Shopper’s stop. From its inception, shopper’s stop has progressed from being a single brand shop to becoming a fashion & lifestyle store for the family. Today, Shopper’s Stop is a household name, known for its superior quality products, services and above all, for providing a complete shopping experience. With an immense amount of expertise and credibility, Shopper’s Stop has become the highest benchmark for the Indian retail industry. In fact, the company’s continuing expansion plans aim to help shopper’s stop meet the challenges of the retail industry in an even better manner than it does today. Shopper’s stop is the only retailer from India to become a member of the prestigious Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 30 experienced retailers from all over the world, which include established stores like Selfridges(England),Karstadt(Germany), ShanghaiNo.1(China),Manor(Switzerland),to name a few. With an unparalleled assortment of the leading international and national brands in clothing for men, and kids; accessories, fragrances, cosmetics, footwear; home furnishing and décor products, their aim is to provide shoppers a truly international shopping Destination. Experienced professional management; supported by world-class systems and practices; and a talented pool of associates with a shared passion for making every shopper visit a memorable one, has helped Shoppers Stop to grow from single store in 1991 to the largest chain of Department Stores in India today. Their unending pursuit to benchmark themselves with the best in the world 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(U.K), Karstadt (Germany), Marks&Spencers(U.K), Matahari (Indonesia),Myers Grace Bros.(Australia) and Rustan’s(Philippines) among its members. 3 VISION OF THE SHOPPER’S STOP -To be a global retailer in India and maintain its No.1 position in the Indian market in the Department Store category. 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. MISSION OF THE SHOPPER”S STOP “We will provide the “Best” value in terms of product and services and adopt “Best” process for stakeholders, without compromise. There by matching global standards There by matching global standards of performance SERVICE VISION STATEMENT “It’s magical; it’s comfortable it’s my store’ SS will create an environment which is unique and enjoyable for the customer and employee. SS will ensure that each stakeholder feels a sense of involvement satisfaction and commitment to the organization as if it were His/hers own. 2.2 Store Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of department stores under the name “Shoppers’ Stop” in India. Shoppers Stop has 65 stores in 28 cities. Shoppers Stop retails a range of branded apparel and private label 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. 4 Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails all the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad. 2.3 Products 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 retails merchandise under its own labels, such as STOP, Kashish, LIFE and Vettorio Fratini, Elliza Donatein, 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. In October 2009, Shoppers Stop has bought the license for merchandising Zoozoo the brand mascot for Vodafone India. 2.4 Marketing In April 2008, Shoppers Stop changed its logo and adopted the mantra "Start Something New" and introduced international brands like CK Jeans, Tommy Hilfiger, FCUK, Mustang, and Dior across the stores. The focus of the reposition was on the service, ambience upgradation and customer connect. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth, up the fashion quotient through merchandising, and create ambience that connects with the mindset. The brand campaign addresses environment-related issues in a youthful, tongue-in-cheek manner. Shoppers Stop is a active on social media marketing platforms with Facebook and Twitter to connect with this audience. 2.5 Loyalty program and Co-branded Credit Card Shoppers Stop has a loyalty program called First Citizen. They also offer a co-branded credit card with Citibank called the First Citizen Citibank Titanium Credit Card for their members. 2.6 Shops Shoppers Stop's sister stores are: 2.6.1 Crossword Bookstores Crossword Bookstores is the largest chain of bookstores in India with 83 branches. Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword is positioned as a lifestyle bookstore with their spacious, well laid out stores which encourage customers ease in browsing through the merchandise of books, music, stationary and toys. 2.6.2 Home Stop Home Stop is premium home furnishings home concept store, which offers products in home decor, furniture and accessories, bath accessories, bedroom furnishings, mattresses, draperies, carpets, modular kitchens and health equipment. 2.6.3 Brio Brio has 20 outlets in select cities. Café Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with Shoppers Stop to run its BRIO outlets. 5 2.6.4 Desi Cafe Desi Café and their operations have been taken over by Café Coffee Day (CCD), the retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed a MoU with Shoppers Stop to run its Desi Café outlets. 2.6.5 HyperCity HyperCity provides customers a wide variety of range of products for shopping in a large and modern retail environment. It offers a contemporary range of products, sourced from both local and international markets. The product range covers: Foods and Grocery, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture, Sports, Toys & Fashion. 2.6.6 M.A.C. M.A.C. and Shopper’s Stop Ltd. entered into a non exclusive retail agreement with cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C. Makeup-Art Cosmetics - the professional brand of choice, is the first brand under the Estee lauder Group of Companies portfolio to enter the Indian retail market. Currently there are 20 M.A.C. stores operating. 2.6.7 Arcelia Arcelia is a new retail concept aiming at the growing accessories and cosmetics segment, with a strong emphasis on experience and indulgence and primarily caters to discerning women shoppers. It retails cosmetics, fragrances, fine jewelry, footwear, handbags. 2.6.8 MotherCare MotherCare and Shoppers Stop came together to introduce products for infant and toddler care which stocks a variety of products for mother and babies, toddlers and children till eight years of age with the focus being on style, function and safety. The UK-based maternity and kidswear brand has nine standalone and 13 shop-in-shop formats. 2.6.9 Nuance Group Nuance Group with Shoppers Stop makes an entry into airport retailing. The alliance is marked with a joint venture with The Nuance Group AG of Switzerland, the world’s leading airport retailer. Shopper's Stop Ltd. is handling the retail operations at the duty-free zones in international terminals. The joint venture company, called Nuance Group (India) Private Limited. is operating outlets at the International airports at Bengaluru and Hyderabad. 2.6.10 Timezone Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in Timezone Entertainment Private Limited which is in the business of setting up and operating Family Entertainment Centres (FECs). It has more than 20 outlets across Indian cities like Ahmedabad, Hyderabad, Kolkata, Navi Mumbai, Mumbai, Bangalore, Pune, Baroda, Raipur, and Goa. 6 2.7 Marketing mix model Consumers are getting quickly immune to the marketing tactics of businesses, and margins are being squeezed by demanding customers. Focus is getting shifted from mass advertising to making of new trends. Clothing industry is a very competitive arena. Due to the highly fragmented nature of apparels, and fashion sector, an apparel brand must differentiate itself from its competitors right from the stage it enters the market. 2.7.1 Price: In case of apparels, especially in fashion, price is not of big importance. Gone are the times when companies competed on price. Service is the key today which will shift to focus on personality in the future. Innovative designs are no longer a competitive advantage. New sketches are transformed into garments and make their way in store shelves within a span of three weeks. New disposable fashion has shortened the product development cycle from 16 months to 20 days. SS has a proper mix of both premium and affordable priced products. The brands are sold at MRP and lower. The main USP is the choice given to the customer rather than the Price. Various Pricing Strategies used by Shopper‘s Stop are as below: 1. Premium Pricing 2. Economy Pricing 3. Psychological Pricing 4. Optional Product Pricing 5. Promotional Pricing 6. Geographical Pricing 7. Value Pricing 2.7.2 Promotion: The communication strategy of Shopper‘s Stop has been to reach out to the customers in their own style and language. SS uses print as well as media to promote the brand. The private label STOP is promoted in store through logo and proper placement adjoining similar national brands SS associates itself with Local festivals and events. Shopper Stop adopts the strategy of ―enveloping the customer‖ with communication on tv, press, hoardings and radio. 7 When the first black and white print campaign of Shoppers Stop broke in 1993, it immediately attracted everyone’s attention. It was so different from the other retail ads which were then prevalent in the media. These ads looked less like retail store ads and more like designer wear ads. What struck me about the campaign was: • It was in black and white --- which until then was unthinkable for ads of retail stores. • The merchandise was not shown in the ads. • None of the ads showed the store. • The ads relied primarily on the body copy to convey the advertising message rather than on the visuals of the merchandise. • Significantly Shoppers Stop was being promoted as a product or brand rather than as a store. 2.7.3 Product: 8 Product not only refers to tangible items but also to intangible attributes such as brand name and customer service. Earlier it was believed that a good product will sell itself. In today‘s competitive market, there is no such commodity as bad product. So, manufacturers must focus on creating a product or service that will satisfy the demands of the consumers. The product characteristics must be defined with functionality, quality, appearance, brand service, support and warranty. Identifying the needs for and creating a suite for brand that reflects style, international class and fashion. Shoppers Stop is Indian largest chain of Super Stores and has many stores in whole of India. Shoppers Stop Ltd. Excels in Service quality and the stores of a high class feel which is different from Big Bazaar or similar stores. 2.7.4 Place: Apart from price and quality, the place of distribution must also be taken into consideration while creating a right marketing mix, as the apparel industry is primarily based on perception. Store designs must be deployed to create an elegant atmosphere emphasizing a brand image and reflecting current trends. Focus must also be kept on the distribution processes and partners, without which even excellent products will fail. Big revolutions in business have come about by changing place. Location, logistics, channel motivation, service levels, and channel members must be taken into consideration. Good marketing mix is like an appetizing food recipe. The key for a successful strategy is the right combination of ingredients to get the right taste of food. The key ingredients of a successful marketing mix modeling such as product, price, place, and promotion needs to be combined in the right way, and in the right time for an appropriate marketing of a product. PACKAGING:New bags of SS which are widely distributed have company symbol on it. The company has also brought collectible shopping bags for selective distributors with different themes and launched the first in the series based on themes ―FASHION THROUGH AGE‖. 9 CHAPTER 3: LITERATURE REVIEW Review of previous studies is essential for every research to carry on investigation successfully. Hence, the present study is also based on the following literature reviews. 3.1 INDIAN RETAIL SCENARIO With more than 12 million retail outlets, India has one of the highest retail densities in the world. The retail landscape in India is dominated by mom-pop stores and though organized retail is emerging, it still constitutes a minuscule 3 per cent of overall retail in the country. But last 4–5 years has seen many Indian companies making a entry into organized retail, with a few multinationals entering in the cash-and-carry formats and others tying-up with Indian companies. Most prominent ones are Shoppers Stop, Reliance, Futures group, Spencer‘s, and A.V. Birla Group. The BMI India Retail Report for the third-quarter of 2010, forecasts that the total retail sales will grow from US$ 353 billion in 2010 to US$ 543.2 billion by 2014. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities. The greater availability of personal credit and a growing vehicle population to improve mobility also contribute to a trend towards annual retail sales growth of 11.4 per cent. Mass grocery retail (MGR) sales in India are forecast to undergo enormous growth over the forecast period. BMI further predicts that sales through MGR outlets will increase by 154 per cent to reach US$ 15.29 billion by 2014. This is a consequence of India's dramatic, rapid shift from small independent retailers to large, modern outlets. China and India are predicted to account for almost 91 per cent of regional retail sales in 2010 and by 2014 their share of the regional market is expected to be more than 92 per cent. Growth in regional retail sales for 2010-2014 is estimated by BMI at 72.2 per cent, an annual average of 14 per cent. India should experience the most rapid rate of growth in the region, followed by China. Established retailers are tapping into the growing retail market by introducing innovative store formats. Spencer's Retail, More (owned by Aditya Birla Group) and Shoppers Stop (owned by K Raheja Group) already plan to expand. According to a McKinsey & Company report titled 'The Great Indian Bazaar: Organized Retail Comes of Age in India', organized retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015. 10 1 3.2 Ethnic Wear Market in India Presently, valued at USD39 billion, the Indian Apparel market is expected to grow at a CAGR of 9.5% to reach USD 60 billion by 2017. The women’s wear segment contributes a large share of 38% to the total market and will continue to grow at a CAGR of 10% over the next decade. The optimistic growth of the sector is due to the increase in the number of working women. Over the next decade, India will witness an increase of more than 10 million ladies within the working middle class across the top 115 urban Indian cities, thus presenting a potential of 35 million consumers by the year 2020 in the relevant cities. Further, since this growing population of women includes a large proportion of working women, there will be a corresponding increase in the disposable income of families. This surplus income within households will directly impact the consumption of both essential and lifestyle products, such as various apparel categories. 11 Ethnic wear comprises 75% of the total women’s wear market, at USD10.82 billion. It is a dominant contributor and will continue to grow at an optimistic 9.3%. This category offers a unique blend of comfort and fashion to the consumer making it the preferred apparel for most occasions. Although sarees have the largest share of 53% within the segment, the salwar kameez category will be the primary driver of its growth. The salwar-kameez category contributes almost 38% to the overall ethnic wear market and is growing at 10.8%. The preference for salwar kameez and sarees is a regional choice; in northern regions of India, it is the preferred apparel for both regular and festive occasions as it has been a traditional garment across generations while other regions also prefer sarees for special occasions. While the Tier I cities tend to be strongly governed by a traditional usage of the sari, the ethnic wear category is increasingly becoming the category sought as it offers both convenience and conformity. Thus the focus tends to be on comfort fabrics such as cotton with mid-fashion quotient. 12 Currently, ethnic wear is dominated by the unorganized sector. Interestingly, the unbranded and unorganized sectors straddle all segments of the Indian ethnic wear market and continue to dominate 85% of the market. Further, in the organized sector, the largest skew of brands’ as well as formats’ product offerings is within the mid-premium segment. Overall, the sector is fragmented, with few brands having a strong positioning. The lack of clear product and service differentiation has however led to low brand loyalty and few national brands are gaining salience. The organized sector is dominated and driven by brands and formats offering midfashion, contemporary wear. Ready-to-wear (RTW) has a greater presence in the organized sector in comparison to Ready-to-stitch (RTS). Consumers are increasingly seeking convenience, comfort, and style from the ethnic wear segment and this trend seems to be driving the growth of modern formats, the organized sector, and Ready-to-wear. The quest for convenience as well as fashion is reflected in the skew towards RTW product offerings from key brands and formats. Further, the RTW segment will continue to grow at an optimistic rate and also drive the growth of the organized sector. A limited number of brands focus on RTS offerings within the organized sector. The preference for RTW and RTS differs based on region and occasion. In the larger cities, RTS fabrics are preferred primarily for special occasions as it offers the option of customizing embellishments and styling the offering’s uniqueness. Being a regular article of clothing for most consumers, ethnic wear emerges as a mid-involvement category leading to a fairly high purchase frequency and impulse buying, although specific occasions tend to witness higher involvement of the consumer in the decision making hierarchy. Consumers spend moderate amounts on ready-to-wear salwar kameez with a high frequency of purchase. Ready-to-stitch, being an occasion-based wear, witnesses a lower frequency of purchase but with higher ticket value. Characterized by the rising number of independent women indulging in value-seeking shopping behaviour, ethnic wear has transitioned from being just traditional wear to daily wear that combines tradition with contemporary fashion. Brands have identified the transition and offer products positioned across occasions as casual, formal, weddings, semi casual. etc. They are targeting the younger generation with ethnic wear being positioned as affordable, comfortable, and contemporary fashion. Fashion quotient is a combined function of fabric, innovative and contemporary styling and vibrant, varied colours. The growth in the organized sector is primarily due to consumers’ seeking contemporary everyday office-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. 13 With the shift in usage and fashion trends, ethnic wear is being accepted by the younger generation as everyday apparel. With the increasing penetration of brands and large format stores in metro cities, consumers analyze such factors as product offerings, and convenience, while choosing the shopping destination. They prefer national brands for RTW owing to relevant product offerings. Further, large format players have tapped into the need-gap in ethnic wear by offering their own private labels. These private labels straddle the mass as well as popular price segments. Across all type of metro cities, the traditional or unorganized market is preferred for RTS fabrics as these markets offer a varied choice across a wide price spectrum. In Tier I cities, local retailers are preferred while large format retailers (LFS) are gaining in preference. The lack of established brands drives consumers towards local traditional retailers for both ready-to-wear and ready-to-stitch products in Tier I and Tier II cities. However, with modern retail penetrating smaller towns, consumers are seeking convenience and product choices and therefore preferring large format retailers as well. There also is a strong presence of regional brands in metros, mini metros, and Tier I and Tier II cities. Strong loyalty emerges towards regional brands owing to heritage and trust factors and they are preferred over national brands as well as LFS equally. Regional brands have carved out a niche through a comprehensive ethnic wear ambience and experience as well as product offerings. This, coupled with the heritage aspect, leads to consumers’ willingness to pay a slight premium. Along with a strong casual and contemporary ethnic wear range, they also offer occasion-based and bridal collections which make them a preferred destination for many. Overall, the increasing number of women within the working force, coupled with the keen desire to experiment, leads to an increase in the acceptance of contemporary ethnic wear with trendy and comfort elements. Key trends of mix-and-match fashion, vibrant prints, minimalistic embroidery, comfort at smart pricing, and easy accessibility are visible across India. The mid-premium range across pricing and product offerings with an optimum mix of RTW, RTS, and sarees within the ethnic wear category, coupled with an enhanced shopping experience, will increasingly lead to a high preference among consumers and the success of ethnic wear players. Although traditional markets shall continue to be of importance, a consequence of the above factors is the increasing salience of modern formats among consumers. . 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. 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 14 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 ecommerce 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. In such a scenario, the MBOs multi brand outlets need to focus on their private label brands to differentiate themselves and trap potential customers with specific and different needs. About half of Pantaloons' sales comes from its in-store brands, a share it is working to increase to two-third in the next two-three seasons. Rival Shoppers Stop gets 15.5 per cent of sales from private labels such as Stop, Haute Curry and Life. Trent-owned Westside largely depends on its own brands accounting for 80 per cent of sales. 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. 15 3.3 The Plus Size Indian Market: COMFORT IS THE MANTRASays Kaveri Lalchand: “Do not buy something only because you can get into it” In common parlance, the term "plus" means an extra size over the usual "XL" and "Double XL" size in readymade garments. Plus size clothing is a general term given to apparel crafted specifically for men and women of large build. The plus size is meant for those who do not have that perfect figure, but still want to wear funky, trendy clothes. Plus size apparel entered the Indian market in the early 90s and is growing since then. But this sector has a huge potential. More than 12.1 percent of males and more than 17 percent females are overweight, according to the Third National Family Health Survey 2006. Also, a recent study of 10- 15 year olds in the country reveals that nearly 9.9 percent of the boys and 12 percent of the girls in this age group are overweight and five percent and 6.3 percent are respectively obese. This means that plus size population is in excess of 150 million while the market is currently selling less than three million units per annum. So, there is scope to increase the plus size share from 0.05 percent of the total apparel market to five percent... 100 times the existing level. The plus size population has been largely ignored by Indian retailers and brands in the fashion business so far. That's even though research suggests that over 20 per cent of India's urban population is overweight. However, this 20 per cent is now demanding to be acknowledged, and there's suddenly an explosion of fashionable western wear and other products that are catering exclusively to this segment. This change has come about slowly with the workforce becoming younger, and western clothes make inroads even into small town India. While searching for articles of research done on plus size market, I came across a newspaper article of The Indian Express in ‗the Big Picture‘ section written by Leher Kala. The article present here, is taken as it is which would help us understand the problems faced by the plus size women in our country. 16 ―The XL diary I have no qualms in calling myself overweight, or to put it really straight - I am fat. The tiny three letter word has a whole set of phrases, clauses, greetings attached to it which are hidden for the rest of the thin population. Every time I have walked down any 'fashion street' in Mumbai or a strolled down Janpath in Delhi, the clothes stall salesmen call out to me saying, "you will find clothes of your size here!" I am filled with gratitude that these strangers have been so merciful to help me narrow down my search for a good fitting kurta. I grit my teeth and enter one of the tiny shops. The earlier mentioned salesman will then get into frenzy, pulling the elastic of a skirt to its limit, and then breathlessly say, "See, I told you, this will fit you!" You may ask why do I put up with these kind of situations? Maybe I should just give him a good old slap! Right? Wrong! It is difficult to find clothes that fit you well, if you are over sized. I do not look obese, but what fits my shoulder will not let the sleeves reach my wrists. If I find something that fits my waist perfectly, it will most probably pinch my thighs. It is only a European brand that normally comes to the rescue with a large size fit, but not everyone can afford to shell out Rs 800 for a t-shirt! People associate being fat with gluttony. But the truth is I have been through a merry-goround of diets, I have lost 10 kg the last two tears, but they have returned to haunt me again, my basal metabolic rate has slowed down, maybe my genes are flawed... but who is listening? All people see is a fat person. Thanks for the observation. "Now can you please show me a nice body hugging black top that I can wear for a party tonight?" This question has sales women, in various lifestyle stores look totally flummoxed. They hum 'Mission Impossible' while I wait patiently. I look at myself in the mirror and wonder if I am supposed to find a 'freak' looking back. My self confidence has been tried and thoroughly tested through elastic and XXL tags. The saleswoman returns. I smile. Her hands are empty. I was being hopeful, the store is just like the rest of them in fancy malls, "Sorry madam, we don't have your size, can you try the stores that stock clothes for 'plus size' women?" I leave hunting for that specific store, hoping it will have something that won't look like I have donned a sack. Then I hear it again. A snigger. If only people had mindsets with a bit of elastic too.‖ ……………………………………………………………………………………….. The misconception that a larger woman would prefer to be obscure in a dowdy salwar kameez or a sari is fading fast. In year 2008, fashion encompasses all, irrespective of age and size. Now large departmental stores like Pantaloons and Westside have launched their Plus range of clothing called ALL and GIA. Fab India, known more for their kurtas and salwar kameez have started their line of Plus size Western wear last October, after a focus group discussion with regular clients suggested that they wanted the Fab India style in larger sizes. "More women in metros work and live in nuclear families, which is why the shift to Western wear has happened," says Sandeep Agrawal, Owner, Pluss, a store catering to western wear in larger sizes for men and women. 17 During my store visits, I also interviewed some women. Mumbai-based Monika Kohli is a chirpy, Plus size 44-year-old, up-to-date on the latest fashion trends and styles. While strolling down Mumbai‘s market and malls, she gazes longingly at the slim fitted Anarkali salwar adorning almost every window. Kitted out in a smart black kurta and jeans, Kohli says it's a miracle that she managed to buy both here recently. "I could only find my size in London on my yearly holiday. It simply wasn't available here," she says, recalling what an ordeal shopping used to be. "I used to despair because I could only fit into the XL category in a men's store," she rues. Not anymore. Stores like Just My Size and Pluss have introduced new sizes based on international sizing methods that are much more sensitive and tactful, designed to help customers relax and shop in peace. Suraiyya Menon, a 41 year old housewife says, ―I know my place. It is past the bright kurtas, the formal shirts, the lace-edged dresses, the swirly skirts, the capris and the short tops. Ah, there it is. At the end of the row on a bottom shelf, where I can choose between five kurtas in grey, beige, puce, brown and black. Bright colours will not do for me, nor prints. And certainly no embellishments or elegance. This is what is available in my size – take it or leave it. I take it, I take them all, because I don't know when or where I will find something readymade that will fit me. And I am ready to bet my last XXL kurta on it that other women my size are doing the same elsewhere.‖ The joy of walking into a store and picking out a pretty garment is simply not available to the plus-size woman. ―Carrying the depressing large sizes into the fitting rooms and then shuffling out murmuring apologetically that it does ‗not quite fit' is common,‖ says software engineer A. Rupa. ―Some outlets play with the sizes. When an XXL doesn't fit too well at times, at others even an XL works well. No one really seems to care. I swear even the attendants are indifferent to large women shoppers. Nothing is more depressing than wearing over-sized salwar kameez.‖ ―I am big,‖ says V. Priya, a working woman from Hyderabad who has always faced a problem finding well-cut clothes, ―but I want to wear knee-length, half-sleeved simple dresses. I don't want to settle for ugly, ill-fitting tunics (read five metres of cloth stitched together leaving three holes for head and arms).‖ Being a plus size in India is definitely not easy, she says. ―When I was in college (read poor and couldn't afford expensive clothes), a pub night meant putting on black jeans with black top. My skinnier friends would flaunt cute dresses.‖ It is as if the big women are invisible to designers, says Priya. ―I wish there was more to choose from. Plus-size clothing hasn't really penetrated into stores as a regular idea. They are out of stock usually, but mostly I think they are out of creative thought and design. I hate having to hear, ‗Sorry ma'am, last size is M or L.' Just because I am fat, I refuse to wear a gunny sack. Almost always, the clothes you see in the plus-size section seem out of place with the current fashion trend. I'd like to see bigger sizes for the designs they make for skinny girls.‖ Simran Wahan, who makes jewellery and has a store for handmade products, says, ―I never get my size. So if I see a particular design I like online, I copy elements of it and give it to my tailor to copy. Or, when I go abroad I pick up enough for the whole year. And if I have to resort to the less-than-ordinary clothes that are available, I mix and match and wear them with bright accessories. That is the only solution. Or I add a piece of zari border, or some 18 embroidery to make it look better. Anita Dongre's AND line is lovely too, but she is expensive.‖ The big women usually haunt stores such as FabIndia, Pantaloons (ALL brand) and Westside (Gia). Mustard has the sizes too, though sometimes they stack up on unflattering embroidery and patchwork. Priya says another place she goes to when her pockets are feeling heavy is Marks and Spencer. ―It's a boon because they have UK sizes, so over there I am a 16 and it makes me feel better because that is followed by 18, 20, 22 and 24. In M&S I am no longer the sad, fat girl. Besides their style reeks of elegance and simplicity. The women's store W refers to their largest size as VVG, which stands for Very Very Grand. Pantaloon's six standalone stores for ALL start their sizing from zero to five, zero being the equivalent of XXL in a regular wear store. "We want to send out the message that you don't have to be inhibited in your choices because of anything," says Mumbai-based Sanjeev Agrawal, CEO, Pantaloon Retail. Other brands live by the same mantra. Revolution, the store that can take credit for having kick started the plus size movement in India in 2001, has managed to stay ahead in the game because of an obsessive attention to detail and thought, on the styling of every outfit. Promoter Nisha Somaia, 36, emphatically states, her challenge is to get plus size women to feel good. After all, women all over the world have a complicated relationship with their weight and fashion. "I'm always trying to lose weight myself and I encourage all my clients to do so as well. But, why not look good during the process?" she asks. A plus size herself, Somaia started Revolution out of desperation, when she went shopping for a New Year's Eve outfit and couldn't find anything that fit. Revolution has 16 stores across India, and one in Dubai. Somaia has started lingerie for Plus sizes and is contemplating getting into men's wear and shoes as well, where no plus size has ventured in India, yet. Body weight and body image are inextricably linked and in our looks obsessed culture, fat is looked at as a bad word. Designers make clothes for gloriously thin models. Even the waist sizes of mannequins in shop windows in India have thinned down over the years. Fashion trends in plus size clothing mirror trends in regular sizes, tweaked a bit, to give the customer a more flattering silhouette. Keeping in mind the pressure to be slim, most plus size brands follow the slimming rules of fashion in their garments; a monochromatic palette, vertical lines, deep necks and long skirts, to create as much of an illusion of slimness, as possible. Stores for the Plus size category in India seem a tad conservative in their approach to fashion, but as the customer is changing, so is the design process. According to Nisha Somaia of Revolutionary clothing Pvt Limited, "There is a huge change, women don't want to hide their bodies in hideous sacks any more and are now willing to go funkier and not just wear loose, ill fitting clothes. They want what is contemporary and are in for comfortable fashion". What really holds back the growth of this market, and in fact also the over all apparel market, is the absence of a proper study in body sizing and adoption of standardized sixes for the entire country.This is one aspect where Europeans and the US have invested heavily in, and hence a flourishing market in the plus size. For example, obesity in the US increased from 13 percent in the 60s to 32 percent in 2004, and its estimated that by 2015, 75 percent of the adults will be overweight and 41 percent will be obese according to a study by Youfa Wang 19 at John Hopkins university. This study establishes 25 - 36 year olds as the most prolific buyers of plus size apparel. And this young population back home in India will certainly not be content with a seven yard saree or a XXXL Kurta Pyjama. The more than voluptuous woman wants to dress smart. Size with standing, she desires what every other woman wants... trousers, capris, tank tops and so on. The same goes for plus sized men. Even they want to dress trendy. So, the market should wisely pay heed to these special "big " customers as they should realize that fashion is not just about plus size waists, but plus size profits too. According to the Mintel report, the plus size clothing in the global market is worth about 32 billion dollars and is likely to grow at more than 10 percent in the coming five years. The domestic market in India, was valued at Rs 122,400 crore in 2007, as per the India Apparel Report 2008. In value terms, the apparel market grew at 5.9 percent in 2007 as against 4.2 in 2006. Plus- size apparel contributes approximately 188 crore to the Rs 122,400 crore domestic apparel market, which is a 0.15 percent share barely. But this minuscule share begins to look a lot more attractive considering the fact that the volume share of plus size apparel is just 0.05 percent of the overall market. Thus, there is a huge opportunity in the plus size segment of the apparel market, which the retailers and brands need to realize, in order to fill the huge gap which at present is there in this segment. 3.4 The maternity wear section: Another target section where plus size requirement arises is for pregnant women. Shilpa M V is having a great time shopping. In her second trimester of pregnancy, the HR professional is pampering herself with a new wardrobe to accommodate her baby bump. ―Although some of the dresses I have are mostly what my husband bought from the US, I think the variety available locally now is pretty good,‖says the 28-year-old, who loves wearing dresses and skirts and gives the salwar-kameez a miss. ―I‘m willing to pay even up to 50% more than what I normally would on maternity clothes because I value comfort above everything else.‖ Women like Shilpa are driving the market for maternity wear in India. Until a few years ago, options were restricted to brands like Mothercare, which was brought to India by Shoppers Stop. Mothercare PLC is the largest specialist retailer for infant and toddler care. Shoppers Stop has an exclusive franchise agreement in India with Mothercare, for shop in shops in department store format. Under this tie up Shoppers Stop has , in a short span of time, opened 41 Mother care stores across 19 cities in India, including Ahmedabad, Aurangabad, Amritsar, Jaipur, Indore, Lucknow, Noida, Mumbai (7), Thane, Pune (2), Hyderabad (4), Bangalore (7), Coimbatore (1), Mysore (1), Chennai (3),Delhi & NCR (5), Chandigarh, Kolkata(1) and Vijayawada. Other places for maternity wear were local boutiques like Vanilla Place in Chennai, Green Bell in Mumbai or 9 Months in Delhi. Most women simply bought large size clothes which invariably gave them a slightly clumsy appearance. ―But now pregnancy is really not about ‗confinement‘ as it was in the yesteryears. Women are working even in their ninth month and need clothes that would look smart at the 20 workplace. Even homemakers are used to dressing up well and don’t want to give up their sense of style during pregnancy,‖ says Deepa Kumar, founder of women‘s fashion company Yashram Lifestyle that introduced the brand Morph Maternity around three years ago. Morph is retailed out of the Lifestyle chain and a host of outlets across 10 metros. Lilliput, which retails children‘s clothes, has now introduced maternity wear in its large format store Lilliput World. Organic cotton wear brand Zeme has its line of maternity wear retailed out of The Bombay Store chain with offerings like nursing tops, skirts and trousers. A pregnant woman today can choose to wear maternity jeans, capris, trousers, shirts, dresses, skirts, kurtis — just about anything that she would wear prior to pregnancy. Mahindra Retail, which recently introduced Mom & Me chain of stores across the country, says the market potential is huge. ―The market for women‘s wear is pegged to be around Rs 80,000 crore. And maternity wear could easily account for 3% of that in the next five years,‖ says K Venkataraman, MD of Mahindra Retail. ―Although the market is currently pegged at Rs 30 crore, given the rapid growth, it is likely to touch Rs 1,000 crore in about three years.‖ Maternity clothes don‘t just involve different tailoring but a lot more innovation. Mahindra tied up with Destination Maternity, an American brand, to bring in their designs like the Secret Fit Belly trousers which have a spandex layer that protects the belly. Morph has a salwar that is somewhat similar and a ‗leak proof layer‘ for nursing mothers in most of their clothes. Morph is among the few brands that offers ethnic maternity wear. There aren‘t too many ethnic options for women and that is one of the biggest reasons why this market has not grown at the pace it should have. Ethnic wear is still the mainstay for most Indian women and they usually just pick a plus size when they‘re pregnant. Venkataraman says Mahindra Retail is developing an ethnic wear line. ―Awareness is definitely on the rise. As recently as about three years ago, it was only the SEC A segment which used to opt for maternity clothes. Now, more and more middleclass women are opting for it. Plus, more women are opting to have babies in their 30s. This means higher spending capacity and greater exposure,‖ says Radhika Jumnani, who runs a maternity and children store called appleofmyi in Bangalore. Affordability is also key in this market given the short span of time maternity clothes are used. Most brands are working to innovate to make sure that mothers can continue to use these clothes even when breast feeding. So tops start at around Rs 600, jeans at Rs 1,500 and dresses anywhere between Rs 1,000 to Rs 3,000 (for evening wear). ―While customers appreciate innovation, prices cannot be indiscriminately increased since these clothes are typically used for about 12 to 18 months at best. In our stores, prices are decided on the level of innovation in each garment,‖ says Venkataraman. 21 CHAPTER 4: Ethnic Wear - Brand Study A range of regional ethnic wear brands such as Jaipur's Kilol, Hyderabad's Neeru's and Lucknow-based Jashn is making a mark on the country's organised retail radar through cautious but persistent moves to step out of their home markets, either on their own or on the back of modern retail. While decades-old women's wear brands Kilol and Jashn have are betting on franchised exclusive stores to go national, others such as Mumbai's Isvarah, Bangalore-based Soch and Jole Clothing and Neeru's have tied up with retail chains. Isvarah, for example, has tied up with K Raheja Group's Shoppers' Stop and Landmark Group's Lifestyle to retail its lines. Since, volumes are raked in through multi-brand outlets, these small brands are bound to grow with the slated expansions of retail chains. Isvarah has two standalone stores, but only for branding purposes. Neeru's, which was retailing in Hyderabad for three decades, explored the shop-in-shop model with Future Group's Central format and Lifestyle since 2004, and expanded its standalone presence to eight stores after venturing into Mumbai and Bangalore recently. Neeru‘s, the Rs 60-crore ethnic chain that sells saaris, suits, kurtas and churidar, is the largest-selling ethnic wear brand across the Central formats. The Rs 40-crore Soch, which spends Rs 6 lakhs a month on advertising, recently tied up with Central. It has six stores in Bangalore and is poised to enter Chennai and Mangalore. Jashn, which has 28 exclusive stores across the country, is now targeting international expansion. Hyderabad-headquartered retailer Kalanjali and Chennai-based Nalli Silk's valueadded offerings Lavanya Nalli and Nalli Next have also tapped into neighbouring markets over the last year. These women-centric brands are cashing in on the increasing appeal of traditional dresses to increase their brand salience nationally. A recent study on average trading density (sales per sq ft per month) across organised retail formats ranks traditional ethnic fashion almost double than that of western fashion brands. According to the study by retail planning consultancy Asipac Projects, new generation ethnic fashion brands such as Biba, W and Global Desi have an average trading density of Rs 1, 600 psfpm (per square feet per month) compared to Rs 900 psfpm for national western fashion brands and Rs 850 psfpm for international labels. Leading ethnic wear retailer Fab India's director Sunil Chainani reasons that, unlike western wear for which display is integral to showcase styles and cuts; ethnic wear is largely stacked on shelves. "This often tends to move up the rate of sales due to greater variety," he says. Traditional ethnic wear chains operate at price points between Rs 1, 500 and Rs 4, 000 on an average. 22 4.1 ETHNIC WEAR BRANDS IN SHOPPERS STOP 4.1.1 BIBA: The Word BIBA in Punjabi is an endearment for a young and pretty girl implying sublime qualities, so it was the name decided by Meena Bindra, the founder of BIBA for her line of Salwar, Kameez and Dupattas started in 1986. It was a line which was fashionable and affordable – which is what BIBA stands for – Fashion at affordable prices. New ranges were added with time and BIBA started a very stylish Mix-n-Match range which was added as a second category. The Mix-n-Match in BIBA is very contemporary in feel and look, while the Salwar Kameez are very ethnic with focus on Indian crafted look, hand block prints and vegetable dyes, Indian handlooms with Traditional embroideries and other Indian Techniques' and sensibilities applied in the making of the Garment. Biba has added unstitched suits and a girls‘ festive collection for the age group of 2 – 12 years over time catering to the full demands of a woman. BIBA is a pioneer for Bollywood merchandising in India with ‗Na Tum Jano Na Hum' in 2004 and went on to ten more such projects with blockbusters' like Devdas, Hulchul, Baghban, etc, which were a huge success. BIBA's first standalone store was opened in Inorbit Malad Mumbai in 2004 and today BIBA has 138 stand alone stores across India and plans to reach 150 stores by 2014.BIBA is also available in MBO's like Shopper Stop, Pantaloon, Lifestyle, Central across the country in all there outlets. 4.1.2 SEVEN EAST: After selling his entire stake in women's ethnic-wear brand 'Biba' in 2011, Sanjay Bindra had launched a new brand 'Seven East', targeted at premium customers. It is available across 48 Shoppers Stops, 22 Planet Fashions, 17 self-owned stores and 15 other MBOs (The Multi Brand Outlet) and looking at increasing the store count by 20 per cent year-on-year. The brand Seven East launched in May 2011 is in expansion mode. The brand already has a gross realisation in excess of Rs 40 crore and targets Rs 100 crore in revenues by March 2015. Seven East has recently tied up with International Indian Film Academy (IIFA) to bring a range of designer-led, Bollywood inspired clothing to the market. 4.1.3 VIKRAM PHADNIS: Vikram Phadnis started his career as a choreographer before rising to fame as a fashion designer. He adorns the wardrobes of the biggest names in the glamour industry, not only designing for celebrities but also styling them. Vikram's efforts have always been to achieve synthesis of popular avant-garde tastes. His unique selling point is his bridal and pret-a-porter wear. 4.1.4 W W mirrors the new age Indian woman. Rooted at home and taking on the world with panache, playing myriad of roles with élan and taking on the challenges in her stride. 23 The brand grew out of a need of an contemporary Indian woman for innovative ready to wear that combined fashion and functionality. With a unique design sensibility, the Indian Salwarkameez was transformed into its chic & urbane - yet comfortable form. This was the first such attempt at reinventing Indian fashion. W has redefined the traditional Indian outfit to something that a woman can wear and look simple yet stylish. With a view to giving the Indian woman innovation in her day wear and to infuse a dose of excitement in her wardrobe, W has introduced a range of clothes to suit her many needs. W offers its customers contemporary, fashionable & styled garments that complement a woman as she seamlessly transits from office to smart casuals, W clothes have been designed with creativity and care. The W assortment consists of everything ranging from salwar kameez, tunics, work wear, festive wear, and fusion wear comprising skirts, trousers and a lot more, so every woman has ample to choose from. With an aim to provide fashion in a modern retail environment to the Indian woman, W set up its first Brand Store in Delhi in 2002-03 in Lajpat Nagar. The W stores are designed in line with the brand identity - spirited, contemporary and innovative to lend a pleasant shopping experience. Today W has about a 100 Brand Stores and over 600 touch points across India. The brand true to its promise of being fashionable comes with 5 fresh collections in a year, providing an array of exciting fusion wear. W offers fashion leadership in the segment through a signature ‗Fusion‘ design language which reflects an Indian essence imbued with modernity. A medley of graphic florals, flowing silhouettes and paisley motifs, the 2013 Spring-Summer collection from W is as varied as the season itself; from delicate lace work to thread embroidery, a mix of polkas and stripes to eclectic patchwork. 4.1.5 GILI Gili, India‘s first jewellery brand, has taken a major leap with the recent launch of Gili Apparels in the ethnic wear for women retail category. This new extension of its branded offerings draws from the roots of the jewellery brand, and caters to the tastes and preference of the modern India woman of today. Across both jewellery and apparels, Gili products are exquisite & uniquely ethnic, blending Indian and western nuances to appeal to the confident, self made & successful woman as well as complement the elegance of her femininity. The new range of Gili Apparels is primarily designed with an element of simplicity, colour and fun, keeping in mind the casual, yet classy & chic woman. The fabric & designs are fresh 24 & simple, yet give an elegant look & feel, while the color palate is contemporary and varies from neutral to pastel shades. The collection consists of fusion wear lines suitable for modern day work-wear as well as evening-wear styles, which define subtle bling. The stories in this product line consist of gold khadi prints, crushed silhouettes, classy linen/ramie, colorful appliqué, block prints, dualtoned chiffons, pearl embellishments & embroidered beauties. Basic silhouettes are stylized and enhanced with assorted cuts, necklines, sleeves & hemlines. Fabrics like cotton, mul, ramie, velvet, silk, chiffon & net embellished with prints, gold laces, appliqués, sequins, pearls, & beautiful embroidery perfectly bring out the classic flavor of the Gili Brand. 4.1.6 AURELIA: Aurelia – derived from Latin means ―golden & dazzling; surrounded by admirers‖ was launched in 2007, and already has a lot of admirers. Aurelia is a brand taking its cues from the rich heritage of Indian art and craft with products that are classic and tasteful in design, rendering them easy to wear and acceptable to most Indian women. Aurelia caters to the quintessential Indian women who seek good quality fits in ethnic wear and simpler products at sharper prices. Other brands include Sanaa, Isvarah 25 CHAPTER 5: PRIVATE LABELS Private labels are brands owned, 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 India. 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 multibrand retail stores, a category of retailers like Ikea, Toys , Zara has also been created who sell only private label brands. Private labels are getting retailer attention due to profitability promise. Emulating international counterparts, where private label are increasingly gaining significance, most department stores, supermarket chains, hypermarket chains and discounters in India are promoting private label products. The fundamental reason for this is the much higher margin and profitability on such products, compared with branded alternatives. Indian retailers are increasingly hoping to ride on the attractive proposition of private label products that promise higher quality, lower prices and 100 percent availability to consumers and at the same time offer up to three times higher operating margins to the retailer. The increase in market share of private label brands has been attributed to growth of organized retail. In the United States, private label brands account for 20 percent of sales in super markets and mass merchandisers. The overall share of private label brands as a percentage of the total consumer packaged goods in North America and Western Europe is expected to grow from 20 percent in 2000 to almost 30 percent in 2010. For some countries in Western Europe like United Kingdom, Switzerland, and Germany where organized retail has consolidated presence, share of private labels is already more than 30 percent and it is expected to go even higher. Growth of organized retail chain in India has also led to growth of private label brands in India. Indian economy has seen average growth rate of 6.8 percent since 1994, putting purchasing power in the hands of customer. Though initial growth of private label brands in India has been limited to certain categories like grocery and apparel, it is expected to expand into many other categories as well. The Central Statistical Organization estimated the economic growth of India for the second quarter of 2010 to be 8.9 percent. Currently, organized retail in India is estimated to have only 5 percent share. In the total retail market, it is expected to grow at 25-30 percent. Thus, with the growth of organized retail in India, the private label brands are also expected to grow as experienced in other developed countries. The growth of private label brands in India presents an interesting opportunity for the retailer to understand the motivations of consumers behind choice of private label brands. 26 5.1 EVOLUTION OF PRIVATE LABEL BRANDS With continued economic expansion and retail growth, India is set to become US $ 450 billion retail market by 2015, comparable in size to Italy (US$ 462 billion) and much larger than Brazil (US$ 258 billion today). What’s more, India is perhaps the last „virgin BRIC market for organized retailers. The game here has just begun, with organized retailer accounting here for just 5 percent of today’s market and likely to expand anywhere between 14 to 18 percent by 2015. By that year, it is expected 65 million household will patronize organized retail, amounting to over 300 million shoppers. Several retailers in India are focusing on private labels in fresh foods, home products, apparels, cosmetics and appliances. India is a highly unbranded market. In most categories branded players hold 10 percent of the total market, compared to 40 to 60 percent in other markets. This is a unique phenomenon suggesting that the India brands of tomorrow will be retailer brands. Private label becoming more acceptable to the mainstream; a trend that we anticipate will linger. Studies show that 8 out of 10 consumers are driven mainly by price, which is reflected in the scrutinizing of brands in contrast to private label for the best deal and seeking sales offering the lowest priced. Brands, however, are not necessarily giving up market share easily and are ready to do battle. They continue to lead in innovation and value and should not be underestimated. Meanwhile, data shows that heavy buyers, a relatively small group of consumers, constitute the bulk of private label sales (about 62 percent). This provides evidence that there are many more opportunities to reach consumers who are subject to brand influence. Manufacturers, who deliver on the brand promise, while also offering coupons, can salvage migrating customers. 5.2 Private Label Growth in India As the figure shows, among the major Indian players, the degree of private label penetration is the highest in Trent with 90 per cent, followed by Reliance Retail (80 per cent) &Pantaloon (75 per cent) 27 5.3 COMMERCIAL OBJECTIVES BEHIND LAUNCHING PRIVATE LABELS There are certain objectives that a retailer has in mind before getting into private label goods. 5.3.1 Higher Margins Private label goods are cheaper to produce than branded goods. Besides, due to the lack of advertising and marketing expenses they provide double advantage to the retailer when it comes to the profit margins. While majority of branded goods provide margins in the range of 6-12%, private label goods can offer margins up to 40% . Not only they give a higher margin to the retailers, private labels have also changed the balance of power between brand manufacturers and retailers, giving the latter a decided advantage when negotiating terms with the brand manufacturers. 5.3.2 Stronger Customer Loyalty As the private label offerings increase and the quality is assured, a high sense of loyalty is cultivated among its customer base. This customer loyalty is the result of an affinity with the retailer brand which implies that the development of private label brands can tangibly enhance the retailer‘s brand itself. So in the long run, the private labels become an important tool for the retailer to establish its positioning and strategically attract the target customers to its outlet. Numerous studies have also shown that private label buyers are more store-loyal and not as easily influenced as brand buyers. 5.3.3 Differentiation Through private labels, retailers get a chance to bring in unique products in their supply chains that have not been branded before. So if a retailer can cater to the local tastes and preferences of the consumers well by top quality private labels then they can differentiate themselves from other stores and become destination stores. In effect, it‘s a win-win situation even for the producers who get a chance to display their produce. 5.3.4 Freedom with Pricing Strategy A retailer promoting a private label has the added benefit of greater freedom to play with pricing strategies, as a result of which these are overall cheaper than brand leaders. For instance, in USA, some private labels are 25 percent cheaper than leading brands . In addition, since it is an own private label, the retailer has the freedom to create its own marketing strategy and have more control over its stock inventory. This command of all the stages that a product goes through, gives the retailer high flexibility in pricing. 5.3.5 Positioning during economic downturns The growth of private labels is likely to continue in the current financial environment as cashstrapped consumers' perception of the products as a cheaper option changes. The price advantage of private labels leads to the belief that these score in times of economic meltdown, and further that this newly-acquired market share is maintained even as the recession swings out. Even after the 28 economy bounces back, consumers will naturally gravitate towards products marked at lower prices yet offering the same quality, especially where the retail name is a trusted national or regional player. PRIVATE LABEL MATURITY CURVE 5.4 COMPARING NATIONAL BRANDS AND PRIVATE LABEL BRANDS NATIONAL BRANDS PRIVATE LABEL BRANDS 1. Product recognition — almost everyone recognizes the names of the leading nationally branded coffees. Millions of dollars are spent advertising these products, making them easier to sell. 1. You have control over your pivotal product, and that means over your business. Retailer saves substantially in product cost as these are not heavily advertised. You can spend these savings on anything you please, including higher product quality. 2. People can choose between various familiar labels. 2. You have no competition for the brands that you carry. No one can trade on your name legally. This is a strong motivational plus for your salespeople. 3. A buyer interviewing a private label salesman and a national brand salesman is likely to have more confidence in the latter, all other aspects of their presentations being equal. 4. Consistent quality control 4. It is the only way to be able to market high quality products, if you so choose. 5. Nationally branded products are generally available in constant supply from local wholesalers with short lead times on ordering. 5. You can sell the mystique as well as the real quality of your brand, enabling you to achieve a higher average selling price (though many operators make the mistake of selling their private label for a lower price than the national brands). 29 5.5 10 P’s OF PRIVATE LABEL BRANDS 1. 2. 3. 4. Product: quality is equal to national brand. Partnership: work in extra mile in terms of support,marketing,merchandising, e.t.c. Planogram: ensuring every product leads to sales and profit, delist the slow movers. Packaging: reflect quality and performance of overall brand &from inside as first impression, as 70% of purchase decision only at pop. 5. Pricing: provides the high perceived value to customer without leaving profit. 6. Position: position mark the one that you want to compete directly against 7. Push: let the branded player spend money to develop category awareness, once customer in store, retailer have major impact. 8. Personnel: Same person promoting branded as well as PLs 9. Promotion: by display and through features to gain customer attention. 10. Pride: take pride in your brand, treat it and market it with the respect it deserves. 5.6 TYPES OF PRIVATE LABELS Store brands - The retailer's name is very evident on the packaging. Store sub-brands - Products where the retailer's name is low-key on the packaging. Umbrella branding - A generic brand, independent from the name of the retailer. 5.7 PRIVATE LABEL BRANDS OF SS IN ETHNIC WEAR These include: Stop: the oldest and the strongest of the in-house brands, caters to the youth segment Kashish: the premium ethnic ladies wear Haute Curry: Known for party and evening ladies ethnic wear 5.8 Features of private labels Price tag: These products are priced substantially lower than the other brands. Depth of assortment: The private labels are not limited to a particular category; it extends from apparel for men, women to children. Store Space: These products are not differentiated from the other brands in terms of store space. They operate in 18-20% space only. 30 CHAPTER 6: RESEARCH METHODOLOGY: For customer behaviour and competitor analysis, data was gathered through questionnaire and observations. The sample size taken was of 150 customers coming in various Shoppers Stop stores present in Mumbai. The stores I visited were namely SS Andheri, SS Malad and SS Vashi. The store visits were conducted during the 3.5 month internship period. The questions are based on the consciousness of the customers about the brands, their buying behaviour, their preferences towards brands, price, size and colour preference so as to analyze the perception of customers towards brand. The data is then statically presented to understand the preference in every parameter which is being considered. For competitor analysis Pantaloons, Westside and Lifestyle were taken. 6.1 Data collection source: The data collection source was primary as well as secondary data. Primary data was collected through questionnaire and observation method and the secondary data were collected from companies’ websites, and other best suited online shopping websites which provide best and relevant information about the companies, manuals etc. 6.2 Frame Work And Tools Used For Analysis Data collected through interview schedule were presented in a master table and required sub tables were prepared. The statistical tools such as Percentage analysis, Weighted ranking analysis, Garrett’s ranking analysis and Likert’s scaling technique were applied which are considered appropriate to this study. 6.3 Area of study: Mumbai region 6.4 Period of study: 14 weeks 31 6.5 OBSERVATIONS FROM RETAIL STORE VISITS & SURVEYS During the course of this project, I visited retail outlets and also found some secondary information from internet. Here is a pen picture of what was found: Store space: Nearly 40-50% of the store space was dedicated to store brands. These products shared the shelf space with other branded products. A number of store brands: This is especially true for apparel. Shoppers Stop has several in house brands. For example, in the women‗s wear category itself it has private label- (STOP, Kashish) along with other brands –BIBA, W etc. Similarly, in the men‗s wear category, it has private label brands- (STOP, Life, Vettorio Fratini) along with Lee, Wrangler, and so on. These products are not differentiated from the other brands in terms of store space. Price tag: These products were priced substantially lower than the other brands. Catered to a number of categories: In these stores, the store brands were not limited to a particular category. For example in Shoppers Stop, it extended from apparel for men, women and children to crockery, kitchenware, and even furnishings. PRICE RANGE (LOWEST TO HIGHEST) INHOUSE BRANDS: Categories/ In-house brands STOP KASHISH HAUTE CURRY KURTI LEGGINGS SALWAR SUITES(SET) DUPATTA 399-1499 899-1799 799-1599 499 499 499 649-1099 1599-4000 2599-13999 2000-6000 299-499 299 299-349 LEGGINGS 599 599-1899 SALWAR 899-999 899 SUITES(SET/SKD) 999-2599 1799-11000 699-1499 399-499 799 NATIONAL BRANDS IN ETHNIC WEAR BRANDS/Categories W BIBA SANA AURELIA SEVEN EAST VIKRAM PHADNIS GILI KURTI 449-2699 699-1499 599-999 315-1199 DUPATTA 249-799 299-499 299 1699-15000 5000-18000 3299-8699 32 6.5.1 SIZE RANGE: The good fit is one of the major characteristics for any dress. Indian women body sizes vary a lot across different age groups and regions. For example, North-eastern women are comparatively slimmer than women in north Indian states like Punjab or Haryana. A proper fit of ethnic wear is very important to suit customer requirements across segments. Feasible research on the target segment, well-trained designers and other local requirements need to be addressed. Across diverse regions no unified fashion India has rich and varied textile heritage. Each region of India has its own unique native costume and traditional attire and accessories. One has to be very careful of the trends prevalent in different regions. A country of India’s size and diversity poses a challenge. Designers and market players must understand all these varied trends and come out with a line of desired products. Brands SIZE STOP KASHISH M&M HAUTE CURRY GILI W BIBA SANA AURELIA SEVEN EAST VIKRAM PHADNIS S,M,L,XL,XXL S,M,L,XL,XXL S,M,L,XL,XXL S,M,L,XL,XXL S,M,L,XL,XXL S,M,L,XL,XXL 32,34,36,38,40,42, PLUS SIZE-46,50 S,M,L,XL,XXL S,M,L,XL,XXL 32,34,36,38,40,42, PLUS SIZE 46 S,M,L,XL,XXL 33 34 35 6.5.2 FINDINGS FROM BRAND STUDY: Ethnic wear section is doing well in terms of private labels, however brand awareness is still missing. The M&M section, i.e. mix and match offers customers to make their own sets. The M&M section includes range of products; kurtis, salwars, leggings, dhoti kurti, palazzos and stolls. All these products come as individual items and not as set pieces. Eg. W kurtis can be teamed with Leggings (ankle-length or shorter), Capris, cotton Trousers, salwars, churidars and Jeans. Vashi store M&M section. In kurtis brands available are –Stop, Kashish, Haute Curry, W and Sanaa. Various styles of kurtis are available; Round neck ,V neck, Boat neck with full, 3/4th , half sleeves, sleeveless and spaghettis . Pricing is competitive in the kurti section. 36 Tussels has stolls of pur silk in the price of Rs 399 and woollen stolls from Shingora brand goes upto the price range of Rs 2245- Rs 4000. Most of the assortment in Shoppers Stop is of private labels, hence further customers can be trapped by providing ethnic wear for plus sizes as well. Visual merchandising is good with attractive displays. The stores do not keep proper ratio of all sizes. Plus size is almost missing from the stores. Biba, has added sizes up to 46 inches in their mix-n-match section, where customers can buy the pant-like salwar or churidar separately, and match these with clothes, kameez or kurtis, of their choice. Biba‘s section of pre-matched salwar-kameez sets already has 42, 44 and 46 inch sizes. The women's store W refers to their largest size as VVG, which stands for Very Very Grand. W kurtis come in sizes from XS to XXL, but are named differently. XS in W kurtis becomes WP, while WS stands for S. W is also now selling its merchandise according to new number size. 37 Old size WP WS WM WML WL WG WVG New size 6 8 10 12 14 16 18 There is a difference in the size and fitting of in-house brands of shoppers stop and other brands. This is visible especially when we compare same size dresses of Biba with that of in-house brands. According to customers Biba gives more space and proper fitting for the same size dress that they choose. Eg the M size of Biba would be bigger than the M size of Stop. Biba is the most preferred brand among customers because of its designs and comfortable fit. 6.5.3 FINDINGS FROM COMPETITOR ANALYSIS: The big women usually haunt stores such as FabIndia, Pantaloons (ALL brand) and Westside (Gia). Shoppers Stop does not have an exclusive range for plus size women. Mustard has the sizes too, though sometimes they stack up on unflattering embroidery and patchwork. Pantaloon's standalone stores for ALL start their sizing from zero to five, zero being the equivalent of XXL in a regular wear store. The in-house brands face competition from Lifestyle‘s in-house brand Milange. Lifestyle, belonging to Dubai-based retail and hospitality conglomerate Landmark Group, recently signed up Deepika Padukone to model for its apparel brand, Melange, for its print ads. Shoppers Stop had earlier signed up Soha Ali Khan for its ethnicwear Kashish, and recently signed up Shruti Haasan for its fusionwear Haute Curry. 38 6.5.4 SURVEY: ANALYSIS AND FINDINGS: A total sample of 150 was taken and convenience sampling was used to get those surveys filled. Analysis is based on the Questionnaire developed for customers (See Appendix) There were 68 percent female respondents and 32 percent male respondents. Income bracket varied from Nil to 6.75 lakh per annum. 72 percent of respondents were unmarried and 28 percent were married. Occupation of respondents: Students Professionals Service class Housewives 1. The first question asked was whether you purchase Private Label brands in ethnic wear or not. Out of 250, 87% people responded in favour and 13% said that they have never purchased any PL Brand. These 13% could be those who are very brand conscious and purchase only the national brands. Do You Purchase PL? Internet Others 9% 0% No 13% Speciality Stores 32% Yes 87% Shopping Mall 59% Yes 1. No For most people, Shopping Malls were the highest rated area from where they could conveniently purchase PL Brands When people were asked to rate PLBs on a scale of 1 to 5 as to whether they agree to following characteristics of them as strongly disagree to strongly agree, people rated the following -> 39 Confidence in PLBs Strongly Disagree Disagree 3% 7% Economical to Buy PLBs Disagre Strongly Disagre e e 10% 0% Strongly Agree 14% Strongly Agree 17% Neutral 20% Neutral 28% Agree 48% Agree 53% PLB association with luxury Strongly Disagree 0% PLB’s good for image Strongly Disagree 7% Strongly Agree 10% Disagree 30% Strongly Agree 10% Disagree 23% Agree 30% Agree 33% Neutral 27% Neutral 30% PLBs have youthful image Strongly Disagree 3% I think PLBs are innovating Strongly Disagree 7% Disagree 10% Strongly Agree 10% Strongly Agree 20% Agree 23% Disagree 44% Neutral 30% Agree 33% Neutral 20% 40 2. How often do you visit the store? Figure 1: The frequency of going to the store: only during sale season 16% once a week 4% Frequency once in 2 weeks 16% once a week once in 2 weeks once in a month once in a month 64% only during sale season . This shows that majority of the people like to visit the stores monthly as well as once in 2 weeks to make purchases of clothes and accessories and thereby stores offer something new to the customer on a continuous basis and must have availability of stock. Also there are customers who visit the stores during sale season and they would like to grab more during the discount period. 3. How did you come to know about the private labels Figure 3: Source of awareness do not know about these labels 4% word of mouth 8% advertisement 16% word of mouth advertisement when you visited the store 72% when you visited the store do not know about these labels 41 According to the data collected, 72 percent of respondents got to know about the private labels of the store upon visiting the store wherein the store has display of names for every brand in different sections allocated to each brand and the Visual merchandise of the store which has many life size advertised posters of the brand. 16 percent of the respondents got aware about the private brand through advertisement, 8 percent through word of mouth and 4 percent of them were unaware of such labels. From the above information, we can infer that the private labels are not as widely advertised as the national labels are and it could be act as a hindrance to its awareness. 4. Which brands in ethnic wear do you recognize? BIBA 141 Global Desi 135 W 102 Fabindia 95 Seven east 85 STOP 83 ALL 79 AND 74 Kashish 65 GIA 63 Melange 62 Haute Curry 60 Sanaa 49 Rangmanch 46 0 20 40 60 80 100 120 140 160 From this, we can infer that almost everyone among the people surveyed, had heard the name of national brand BIBA followed by W. In terms of private label, people are aware of the brand STOP of Shoppers Stop the most. 42 5. Which brand do you prefer the most? BIBA 43 Global Desi 32 W 17 Fabindia 14 STOP 12 ALL 8 Seven east 7 GIA 6 AND 6 doesnot matter 5 0 5 10 15 20 25 30 35 40 45 50 6. Rate the Quality of private label in comparison to a national label: Figure 4: Quality comparison Excellent 6 Good 60 At par 36 Average 42 Poor 0 0 10 20 30 40 50 60 70 According to the figure above, 40% of the respondents rated the quality of private label in comparison with the national label as good and 28% rated it as average or fair as compared to the national labels. 24% of respondents rated it at par or similar to the quality of national labels, 4% rated it excellent or more than satisfactory, while none rated it as poor. From the above information, we can infer that the quality of private labels does not exceed the quality level of national labels, however it is satisfactory and customers are satisfied with it. 43 7. How do you find the pricing of private labels in comparison to national labels? Figure 5: Comparison on price comparison on price cheaper 8% value for money 33% cheaper not much difference over priced not much difference 46% value for money over priced 13% We can infer that majority of respondents feel that they have to pay the same price for private labels as they would for national labels followed by few others who feel that private labels are value for money. 9. How do you find trends and designs available in private labels as compared to national labels? Figure 6: Comparison on trends Basic & Regular 24 Poor & Outdated 0 Better & Appealing 36 Similar to National Labels 66 Latest & Upcoming 18 0 10 20 30 40 50 60 70 We can infer that private labels offer similar designs as are also available in national labels. 44 10. How do you find the deals on private labels in comparison to national labels? Figure 7: Comparison on deals Poor deals 0 Poor discounts 30 Better deals 108 Higher Discounts 12 0 20 40 60 80 100 120 We infer that the private labels offer better deals to its customers in comparison to national labels. 11. Which store would you rather shop for private label in ethnic wear? Figure 8: Store Preference Others 4% Store preference Lifestyle 25% Lifestyle Westside 31% Shoppers Stop Shoppers Stop 22% Pantaloons Westside Others Pantaloons 18% We can infer that majority of people prefer to shop at Westside and Lifestyle store. Since this question was asked to a large number of plus size women the response tilted towards Westside because of its plus size label GIA. 45 12. a) Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: - Brand name, where 1=high , 5=least Figure 9: Brand Name attribute Rank 5 12 Rank 4 18 Rank 3 30 Rank 2 30 Rank 1 60 0 10 20 30 40 50 60 70 As per the above data, respondents rank the brand name attribute as follows: Rank 1- 40% Rank 2-20% Rank 3-20% Rank 4-12% Rank 5-8% We infer that, the attribute of brand name is very important consideration for the customers before purchasing or shopping from these stores. 10.b) Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: - Price Figure 10: price attribute Rank 5 24 Rank 4 18 Rank 3 48 Rank 2 42 Rank 1 18 0 10 20 30 40 50 60 46 As per the above data, respondents rank the price attribute as follows: Rank 1- 12% Rank 2- 28% Rank 3-32% Rank 4-12% Rank 5-16% We infer that, the attribute of price is not the most important consideration but a fairly important consideration for the customers before purchasing or shopping from these stores. 10.c)Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: - Quality Figure 11: Quality attribute Rank 5 30 Rank 4 18 Rank 3 6 Rank 2 18 Rank 1 78 0 10 20 30 40 50 60 70 80 90 As per the above data, respondents rank the Quality attribute as follows: Rank 1- 52% Rank 2-12% Rank 3-4% Rank 4-12% Rank 5-20% We infer that, the attribute of quality is of prime consideration for the customers before purchasing or shopping from these stores. 47 10.d)Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: - Design and Trend of the product Figure 12: design and trend of product attribute Rank 5 18 Rank 4 42 Rank 3 18 Rank 2 36 Rank 1 36 0 5 10 15 20 25 30 35 40 45 As per the above data, respondents rank the design or trend attribute as follows: Rank 1- 24% Rank 2-24% Rank 3-12% Rank 4-28% Rank 5-12% We infer that, the attribute of design or trend is a fair but not important consideration for the customers before purchasing or shopping from these stores. 48 10.e)Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: - Deals offered Figure 13: price attribute Rank 5 18 Rank 4 42 Rank 3 42 Rank 2 36 Rank 1 12 0 5 10 15 20 25 30 35 40 45 As per the above data, respondents rank the deals offered attribute as follows: Rank 1- 8% Rank 2-24% Rank 3-28% Rank 4-28% Rank 5-12% We infer that, the attribute of brand name is not the most important consideration but it is fairly important consideration for the customers before purchasing or shopping from these stores. 49 6.5.5 SUGGESTIONS: Prices should be reduced. SS should take advantage of odd size-fitting, especially in the plus size category. Trendy merchandise should be introduced in the ethnic wear section. Display should be neat and tidy, and more brand awareness needs to be created. Conversion rate can be increased by adding merchandise which customers buy without planning (impulse buying). SS must not lose out on customers looking for merchandise in the plus size category. Having a good proportionate mix of all size categories would be helpful. Since prices are competitive, if the private label brands can come up with some exclusiveness, then chances of increase in sales is more. This planning is especially necessary in the plus size category as due to more fabric used, the price range is higher. Private labels can be priced 20-30% lower than other branded products and must be created primarily to fill need gaps of the consumer. This being said, it is not necessary that plus sizes are made available for all styles. Some styles may not look good or be suitable for plus size women. E.g. the ratio of women who would want to wear full or 3/4th sleeves to those who would want to wear a sleeveless would be say 10:1. Then keeping stocks in plus size in sleeveless garments would not be profitable. To create a personality for private labels, there needs to be a distinct style of visual merchandising and brand ambassadors. These help raise its aspirational quotient." Shoppers Stop's value brand, Stop, garners the highest volume sales, more than even third-party brands. NEEDS, WANTS AND DEMANDS CATERED BY PRIVATE LABELS Historically, private labels have not been too keen on innovation. Private Labels had mostly been trying to imitate national brand competitors rather than looking at consumer needs directly. The only differentiating factor would be to sell the goods at a lower price. The branded labels would then be forced to reduce their own price to survive the competition, thereby erasing the margins for themselves and for private labels alike That‘s why, it is more important for private labels to innovate and customize to stay in the market and retain margins and it is imperative for them to find out the customers’ needs and then create wants and desires based on those needs Private labels are not only beneficial for retailers but are equally beneficial for the customers. Private labels cater the needs, wants and demands of the customers by making them available to customers at lower prices. How do Private labels bring out latent needs? The following Strategy should be followed by the private labels for bringing out the needs: Looking for gaps in the market that branded players cannot fill Exceeding the effectiveness of similar products from big brands 50 Certainly less risky to duplicate a successful product But if the products have a definitive differentiating factor that the original lacks, will work in their favour Targeting wants that ideally become needs needs are more or less rational i.e. no emotions are involved Wants are very emotional, and products and services addressing emotions will be more successful. Ethnic Merchandizing - depending on the demographics of a store location Bringing non regional products into right ethnic catchments The following can be done to increase sales in private label section:1. Identify the needs of your customer base The private label should provide the required functional as well as emotional attributes and benefits. Keeping in mind that it already has a price advantage, this ensures that it takes into account needs that are important to consumers and hence, offers a reliable point of difference from other category players. By offering a differentiated value proposition, a private label utilizes the approach that national brands use to arrive at a holistic benefit proposition rather than the specific positioning they use. This furthers its promise that has been already informed by the competition, confirming its category membership, but is clearly not a me-too expression. It is also successful as it demonstrates a commitment to offer consumers multiple choices and varieties with distinct attributes, benefits and price points. 2. Leverage the Consumer Connection A successful private label has the ability to own the consumer connection and has the capacity to strike a chord with consumers in multiple categories of products. Unlike national brands, private labels are offered exclusively through a specific retailer and can easily surpass specific categories because they have a consumer focus rather than a product focus as their brand foundation. These brands instigate trustworthiness and allegiance from their loyal consumers that the parent store becomes their conscious and obvious retail source for certain categories. Moreover, these categories may be the reason that consumers are initially drawn into the store, but once they get there, the store also has the prospect of encouraging them to spend more on impulse purchases. Therefore, the private labels not only reinforce enduring loyalty and positive feelings for the retail brand, they also enable the retailer to capture a more significant share of the consumers‗ heart, wallet, mind space and lifestyle than a national brand. 3. Communicate at the Point Of Sale Retailers need to be more cognizant of the significance of the communication with the consumer at the point of sale. They own the canvas consumers shop on and thus, through store environments, in-store messaging (like signage), merchandising systems, and packaging as well as external messaging like circulars, catalogs and advertising in a congruent manner, 51 the retailer is able to create a lasting impression in-store, at shelf, at the time of purchase and during usage. Retailers need to make sure that they send out the right message at these interaction points. Moreover, many of these messages do not require revolutionary change for extended periods of time, so they perpetuate a persuasive branded voice and don‗t require constant investment from the retailer. 4. Collaborative category management Category management is instrumental for a retailer to realize its own-brand goals and aspirations. To maximize the efficiencies of product flow throughout the distribution system, a retailer must be aligned with the supplier. The relationship between the retailer and trade should become increasingly about cooperation and lesser about the retailer negotiating with the manufacturer or supplier on price. By joining hands, they can strengthen their trade relationships and ensure that the category as a whole remains profitable and emotionally appealing to the customer resulting in both private label and branded goods as winners. They can collaborate in understanding and deciding how to optimize the product lines and Stock Keeping Units (SKUs) that will progress the category definition as a whole and determine planograms and shelf allocations to rally the greatest degree of category interest and excitement from consumers. 5. Manage Brand Architecture the right way Brand architecture is a critical consideration for private label marketing. Once the brand proposition solidifies, the brand architecture strategy enables decision makers to promote this promise at the store level in order to stimulate a sense of familiarity, recognition and trust. Also, private labels have broader set of aisles than national brands. Because of this, it becomes more and more important to differentiate its attributes and benefits on an aisle, category and product basis. So the implication for the retailer is to strike the right balance of similarities and differences with brand messaging and portfolio offerings. 52 CONCLUSION By introducing new styles in the mint-fresh concept of plus-size clothing in India, SS can hope to cash in on the hitherto ignored segment of big people on the lookout for fashionable, prêt Indian ethnic wear. Plus-size fashion is very popular abroad. `The Big and Tall Stores' there address the oversized. But in India this concept has been overlooked by our fashion industry despite the fact that one in every four people in the world today, according to research, is obese. So SS hope to fill in this important lacuna. While large people still have choices in western wear- T-shirts, shirts, skirts; smart/casual ethnic Indian wear clothing — and that too, for above size 42 — is a huge problem. These people have to still run around picking up bolts of fabric to get clothes stitched from the neighbourhood tailor. Also, in India there's no concept of an ideal body. In women especially, shapes vary vastly — narrow at the waist but broad at the hips and thighs. If the shoulders are narrow, then their biceps are bulging. But the point is that even these people want to dress fashionably. The designers can use some simple techniques for designing plus size clothing. For instance, diagonal stripes should not be used. Instead, the designers may infuse an ingenious "bias" cut into their women's collections that creates the illusion of slimness. Another slimming technique designers employ is the use of the "raglan" cut, especially to camouflage bulky biceps in women. Then there's other design trivia like sticking to small prints, checks and tiny motifs. There's clever use of fabrics too. Like linen and Lycra, for instance, are used abundantly which not only aid in achieving a slimmer look but are also malleable, expanding and contracting according to waistlines. As a brand-building exercise, the in-house brands of SS can do a lot of customisation too. There has been a mushrooming of malls and both foreign and Indian brands. So unless one provides that wee bit extra service, one can't survive. Hence, intangibles like sending staff, repeatedly if need be, for alterations and customisation to the client, seeking feedback on collections, their future requirements, must all be inextricably interwoven into the SS post-sales service for in-house brands. To analyse customer profile better, SS can also start up an online database — aimed at customer retention management — which would include basic information like the client's transaction history, their preferred choice of clothing and an online feedback card. SS can envision having a strong nationwide presence as a specialty store for plus-sized people in the ethnic wear segment. With private label brands, Shoppers Stop can ensure profitability as there is no middle-man, control the price-points and decide whether to discount or not, unlike others brands with whom they have to follow suit when all other outlets for those slash rates. The growth of private labels in the Indian retail industry is inevitable but retailers do need to keep a few things in mind. Promotion of own label and allocation of large shelf space at the expense of well-marketed national brands can depress the overall size and value of the category while on the other hand, joining hands with them and following principles of category management can create a win-win situations for both. Retailers need to realize the importance of consistent brand message and should ensure that the product quality backs it well. Moreover, when used as an umbrella brand, the brand portfolio should be managed properly as to avoid any negative impact on the store brand. To conclude it is quite evident that as the Indian retail industry consolidates over next decade, retailers will look to differentiate among themselves and private labels will form a highly significant part of their strategies. 53 Appendix Questionnaire Customer Survey Questionnaire Dear Sir/ Madam, I, NILKANCHA BADHIYE, am a student of NIFT, Mumbai, pursuing bachelors of fashion technology. I am doing a research project on private labels and national labels of Shoppers Stop. There is a small questionnaire in that regard. Kindly fill it up. Thank you for your time. * Required Name * Age * Gender * Occupation * Marital status Income 1. Do you purchase private label brands in ethnic wear? * Yes No 2. Where do you buy the private label brands from? * Shopping Mall Specialty Stores Internet Other: 54 3. Mark the following statements with 1 if you strongly agree to, 5 if you strongly disagree * 1 2 3 4 5 I feel confident when I use PLBs I find economical to buy PLBs PLBs may be associated to luxury I find PLBs good for one‘s image PLBs have youthful image I think that PLBs are innovating 4. How often do you visit the store? *frequency of going to the store Once a week Once in 2 weeks Once in a month Only during sale season 5. Which of these labels do you recognize? * Kashish STOP BIBA Haute Curry Melange Seven east W ALL GIA Sanaa 55 6. Which labels of the above do you often purchase? 7. How did you come to know about the private labels word of mouth advertisements when you yourself visited the store I do not know about such labels 8. Rate the Quality of private label in comparison to a national label Poor Average At Par Good Excellent 9. How do you find the pricing of private labels in comparison to national labels:price of prvt label in comparison to national label cheaper Not much difference in price Over priced value for money 10. How do you find trends and designs available in private labels as compared to national labels: Latest and upcoming designs Similar to the designs available in national labels Better and appealing designs than national labels Poor and outdated designs Basic and regular designs 11. How do you find the deals on private labels in comparison to national labels: Higher discounts Better deals Poor discounts Poor deals 56 12. Which store would you rather shop for private labels at: Lifestyle Shoppers Stop Pantaloons Any other 13. Rank in order of your preference, the attributes you see while shopping from a store, on a scale of 1 to 5: 1= highest preference, 5= lowest preference Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Brand name Price Quality Design or trend of product Deals offered 57 References Journals: 1. http://www.technopak.com/files/Ethnic_Wear_Market_in_India_2013.pdf Authored By: Amit Gugnani - Senior Vice President, Fashion Prerna Kaushal – Senior Consultant, Fashion 2. LaxmiPrabha.G. (2007), “The prospects and problems of Indian Retailing”, Indian Journal of Marketing,Vol. XXXVII, No.10, pp 3. Aaker, D. A. (1991). Managing Brand Equity, New York: Free Press. 4. Aaker, D. A. and Keller, K. L. (1990). Consumer Evaluations of Brand Extensions. Journal of Marketing, 54 (January), 27-41. 5. Agres, S. J. and Dubitsky, T. M. (1996). Changing needs for Brands. Journal of Advertising Research, 36(1), 21- 31 6. Handbook of Marketing and Finance edited by Shankar Ganesan Websites: www.shoppersstop.com www.wikipaedia,com www.theeconomictimes.com http://www.business-standard.com http://www.fashionunited.in/ 58