Weaving the tradition
• Tell about your concept in first two slides
• Make a story around your concept
• Only Put SWOT ( Incorporating, PEST and 5
forces)
• SWOT needs to be corrected
• Check initial investments, spelling mistake
• Give end list of references
MARKET POTENTIAL
Popularity of indo western clothing all over the world is growing. These clothes are also very popular in the
western fashion industry.
http://hubpages.com/hub/indo-western-fashion
With the growing segment of people with more disposable incomes, western women’s wear brands are busy
tweaking their product-line to an emerging ‘Indo-western’ genre in fashion.
(http://economictimes.indiatimes.com/articleshow/4416634.cms
Designer Indo-western women outfits are selling like hot cakes in the market. It has become the fashion style
of Indian women.
(http://www.indobase.com/fashion/women-fashion/apparels/indo-western/)
The number of working women with larger disposable incomes has gone up. Combine that with higher
fashion aspirations and the need to dress well," says the chief category manager in pantaloons, are the
reasons for the boom in the market.
(http://www.outlookindia.com/article.aspx?224681)
Indo Western dresses are easier to manage and looks more elegant pretty much like their Western
counterparts
(http://www.adamsavenuedesign.com/churidar-designs-cutting/)
Latest haute couture wardrobe is a group of Indo-western styles
http://www.beautytwist.com/tag/fancy-dress/page/3/
According to the Clothing Manufacturer’s Association of India (CMAI), the volume of women’s Indo Western
wear produced is up from 3,136.34 million pieces in 2001-02 to 5,130.554 million pieces in2005-06.
http://www.dnaindia.com/lifestyle/report_desi-chic-set-to-nudge-ethnic-fare-out-of-fashion_115721
PEST ANALYSIS
POLITICAL
• Post 2005, removal of quota system gave a lot of boost to the
industry.
• The industry, already struggling mainly on account of high costs,
will be further suffocated with the increase in the excise duty
• other countries have Imposed non-tariff barriers on Indian
exports of Textiles. Safeguard measures on Import of cotton yarn
from India were also sought to be imposed by Egypt and Peru.(
http://www.fibre2fashion.com/industry-article/26/2539/non-tariffbarriers-protectionism-in-disguise2.asp)
ECONOMIC
• Indian apparel exporters seek special considerations as the sector
adds exceptional value to export revenue generation. They expect
the Government to encourage large scale investment and take
initiatives to minimize production, and transaction costs. They
also seek Government action in emphasizing price stability in the
domestic sector
• Since April 2007, as there has been sharp rise in the value of
Rupee, there is a severe impact on the export growth rate . Indian
apparel industry has been badly affected by appreciation of
rupee.
• (http://www.docstoc.com/docs/15619997/Effect-of-Rupee-Appreciation)
Social
Technology
• India presently has entered the second phase of growth and is
witnessing a massive rise in the domestic demand. This is
primarily due to the rise in the standard of living caused by the
rise in the middle-income groups. .
• Increase in disposable income of the people
• Today, consumers have become more fashion conscious. They
like to experiment new products or fashion which is available in
the market. They are mostly early adopters.
• Indo-western is basically a fusion of Indian traditional outfits and
western apparels. A marvellous collection of Indo-western range
is in vogue now days
• Even the funds allocation under the Technology Up gradation Fund
(TUF) scheme has not been increased in the budget of 2010-11
• To encourage additional participation, the Government recently
reduced interest rates to 2.5-3.0 percent for investments made by
larger cotton-processing units.
• In 2001, the Government established the high-level Technology
Mission on Cotton (TMC) to direct, coordinate, and fund initiatives
to raise the productivity and quality of Indian cotton and
strengthen returns to growers.
• http://www.strategylabs.net/search-pest-analysis-of-the-textileindustry-of-india_p9.asp
5 FORCES
RIVALRY
THREAT OF
SUBSTITUTE
BUYER POWER
SUPPLIER POWER
BARRIERS TO ENTRY
• Limited number of competing firms in organised retail- fabindia, anokhi,
biba and W.
• Well established brands
• Designer ready to wear collection .
• Unorganised retail is a huge market for fusion clothing
• Inexpensive substitutes for fusion wear are available
• In India the boutiques provide customised garments
• Rising income level enables large number of buyers
• Inclination towards international clothing
• Availability of more choice
• Consumers are price sensitive
• Demand for high quality, style and pleasant buying experience.
Large number of supplier
Product differentiation is high
Low barriers to enter the market from the side of the government and
the competition is high
The presence of established strong brands within a market can be a
barrier to entry
Brand identity
SWOT ANALYSIS
STRENGTHS
Availability of all indo western clothing under one
roof
WEAKNESS
Providing designer wear at low prices
Lesser acceptance in some parts of India
Providing wide variety of prints that are not available
with the competitors
No prior business experience
Different colour palette would be used season wise
which depends on colour forecast of that season
A ready to wear apparel that can be wear both casual
&formal occasions.
SWOT
OPPORTUNITIES
THREATS
Less competitors
Can be a fad
Increasing inclination towards WESTERN look
Competition from unorganized market that provide
indo western wear at cheaper prices
Untapped market
People more fashion conscious, experimental
Competition from established and known brand
among the customer like Anokhi and Fabindia
To go global
Duplicity of prints and styles
Increasing disposable income with youngsters
COMPETITOR & EXISTING PLAYER
GLOBAL COMPETITOR
Desigual is a streetwear brand based in Barcelona, Spain. Founded in
1984 by the Swiss Thomas Meyer. Desigual, famous for its patchwork
designs. Desigual shops can be found worldwide
Each season the Desigual design team, comprising 25 designers, prepares a collection of over
1,000 items, counting clothes and accessories, built around one single concept, one common
thread that makes the line whole resonate to the same philosophy. Real Life, Magic Stories,
Luxury Feelings, Me&You, Better&Better, Wow, Life is Cool, All Together and Handmade are some
of the leitmotifs that Desigual has brought to the fore.
http://www.desigual.com/#/home/
http://www.desigual.com/#/home/store
known brands catering to indo-western wear
25%
22%
18 -24 Yrs
11%
25-31 Yrs
5%
5%
5%
3%
5%
3%
2%
2%
5%
3%
3%
2%
2%
2%
2%
2%
USP OF FABINDIA
Promoting Indian crafts and weavers in its
products
F
A
B
I
N
D
I
A
P
R
I
N
T
S
2 CATEGORIES IN WOMEN WEAR
WOMEN INDIAN – Long kurtis, short kurtis, supershort kurtis and
churidars( core products)
Target customer- 21 years and above
WOMEN WESTERN- semiformal, skirts, dresses, tunics, trousers, short
kurtis in western styles( core products)
Target customer- 18 years and above
Price range- Rs 360- Rs 1190 ( basic garments)
Rs 1200- Rs 2490 ( fashion basic)
PREMIUM PRODUCTS( SILK, HAND EMBERIODERY ETC)- fashion
garments- Rs 2500- 4000
WOMEN WESTERN CLOTHING
CRM SYSTEM OF FABINDIA
Fabindia does not follow any customer acquisition strategy. It instead focuses on customer
Retention. It constantly attempts to improve the quality of the products in order to retain its
customers.
The company concentrates on customer feedback by maintaining a visitors’ register to record
customer views
Fabindia also has the Mystery Shopper Program to gauge the customer satisfaction level.Mystery
shoppers posing as normal customers perform specific tasks such as purchasing a product, asking
questions, registering complaints or behaving in a certain way and then provide detailed reports or
feedback on their shopping experiences to the management
CRM software has been implemented in a select few stores which aims to help in
maintaining a centralized database. This will help Fabindia in retaining customers by building
lasting relationships and improving loyalty
Has a product selection committee which reviews the position of the store periodically on the
basis of the report of the store manager. As he is always present in the store, he knows what
does a customer feels and likes. Moreover, they have a customer comment register, in which he
can write something if he wants.
SEGMENTATION
Geographics
Demographics
TIER 1, TIER 2, TIER 3 CitiesDELHI,
AGE- 16-35 YEARS
MUMBAI, KOLKATA, PUNE,
SHIMLA, CHENNAI, JODHPUR
INCOME-
GENDER- FEMALE
International Market-
OCCUPATION- STUDENTS,
CANADA, US ,UK
WORKING PROFESSIONALS,
HOME MAKERS, BUSINESSWOMEN
Psychographics
ATTITUDE- early adopters, experimental,
expressive, cheerful, trendy, positive
outlook, outgoing, friendly, go-getter.
INTEREST- fond of reading magazines like
funky and colorful accessories, listening to
music
LIFESTYLE- social, busy
OPINION- opinionated, speak their minds.
Respect others opinion
Behavioral
Usage- moderate to heavy
Buyer readiness- aware,
informed, positive, neutral
Benefits sought- casual wear ,
can be worn for special occasions
as well as office
COLORS
STAR PLUS
FACEBOOK
Go to bed
GOOGLE
TV
11-1 am
ORKUT
RADIO
FEMINA
REST
MOBILE
SIT WITH FAMILY MUSIC PLAYER COSMO
VOGUE
CHAT
IPOD
HT CITY
GET READY FOR INTERNET
NEWS
NEXT DAY
VH1
MAGAZINES
Dinner
REST 9-10 pm
TV
EAT
MOBILE
HANG OUTIPOD
MOVIE HALL
INTERNET
COFFEE
JOINTS
WORK
TEMPLE- TUESDAY, THURSDAY
MC DONALDS SUBWAY
LAYS
COKE
PEPSI
APPLE
93.5 FM
98.3 FM
ADS- LIFESTYLE
PRODUCTS
NESCAFE
NESTLE
DETTOL
GARNIER
PVR
CCD
MOCHA
MUSIC
MTV
HBO
NDTV GOOD
TIMES
Wake up
6.30-7.00 am
GET READY
PRAY TO GOD
HAVE BREAKFAST
PICK LUNCH
DILO
WEEKDAY
Leave from work
/college
4.30-7.30pm
CAR
AUTO
OFFICE
BUS
CARPOOL
TAKEAWAY
RADIO
MOBILE
HOARDING
MUSIC PLAYER
CDs
IPOD
RADIO
NEWSPAPER
MOBILE
APPLE
93.5 FM
98.3 FM
SAMSUMG
BLACKBERRY
NOKIA
ADS- LIFESTYLE
PRODUCTS
Reach at 9
-9.30 AM
CLASS
WORK
LUNCHCANTEEN
FOOD JOINTS
COLGATE
DOVE
LUX
PANTENE
GARNIER
KELLOGES
NESTLE
KISAN
TAJ
MAC
LOREAL
Leave for work
8.00-8.30 am
TRAVELCAR
AUTO
OFFICE
BUS
CARPOOL
INTERNET
MAGAZINES
BOOKS
MUSIC
MOBILE
HT
93.5 FM
98.3 FM
NIVEA
LOTUS
BODYSHOP
AMUL
NESCAFE
TIMES
LAKME
REVELON
RADIO
MOBILE
HOARDING
MUSIC
PLAYER
CDs
IPOD
FACEBOOK
GOOGLE
CCD
BARISTA
SUBWAY
BISLERI
KENLEY
COLORS
STAR PLUS
FACEBOOK
Go to BED
GOOGLE
TV
11.30-1.30
ORKUT
RADIO
FEMINA
REST
MOBILE
SIT WITH FAMILY MUSIC PLAYER COSMO
VOGUE
CHAT
IPOD
HT CITY
WORK
INTERNET
NEWS
VH1
MAGAZINES
NIGHT OUT- 11 ONWARDS
CLUBS DISCOs
BARS LOUNGE
Dinner with family
9-11 pm
MOBILE
AT HOME
IPOD
RELATIVES
RADIO
5 STARS
RESTURANTS
TEMPLE- SATURDAY
GURUDWARAS
APPLE
93.5 FM
98.3 FM
ADS- LIFESTYLE
PRODUCTS
Wake up
9- 10.30 am
HAVE BREAKFAST
RELAX
SIT WITH
FAMILY
LUNCH
F-BAR
AGNI
QBA
AQUA
TAJ HOTEL
SIDDHARTHA
PUNJABI BY NATURE
MAINLAND CHINA
RADISSON
Leave For home
7- 8.30 pm
CAR
AUTO
CARPOOL
DILO
WEEKEND
RADIO
MOBILE
HOARDING
MUSIC PLAYER
CDs
IPOD
RADIO
NEWSPAPER
MOBILE
MAGAZINE
TV
COLGATE HT
DOVE
93.5 FM
LUX
98.3 FM
PANTENE NIVEA
GARNIER LOTUS
KELLOGES BODYSHOP
NESTLE
AMUL
KISAN
NESCAFE
TAJ
TIMES
MAC
LAKME
LOREAL
REVELON
PARACHUTE
APPLE
LEAVE WITH
93.5 FM
FRIENDS- 4-5 PM
98.3 FM
SAMSUMG
TRAVELBLACKBERRY
CAR
NOKIA
AUTO
ADS- LIFESTYLE
CARPOOL
PRODUCTS
METRO
Reach at 5
6 PM
FOOD JOINTS
MOVIE
MALLS
CAFÉ s
INTERNET
MAGAZINES
BOOKS
MUSIC
MOBILE
RADIO
MOBILE
HOARDING
MUSIC
PLAYER
CDs
IPOD
BIG CHILL
MOCHA
BARISTA
PVR
SELECT CITY
AMBIENCE
PROMENADE
EXPERIMENTAL
TRENDY
SMART
EARLY ADOPTORS
LOVE TO SHOP- MALLS, HIGH STREET
CONFIDENT
WANT TO LOOK YOUNG
LOVE COLOURS
LIKE TO DRESS WELL
LIKE TO ACCESSORIZE
BELIEVE IN GOD
CUSTOMER INSIGHTS EXPERIENCERS- energy, spent
heavily
SPEND TIME WITH
on clothing, music
FAMILY
EARLY MAJORITY
LIKE CELEBRATING
INDIAN FESTIVES
HANG OUT WITH FRIENDS
FEEL YOUNG
BRAND CONSCIOUS
INDEPENDENT
FOLLOW LATEST TRENDS
WORSHIP AT TEMPLES &
SPENDS WEEKENDS WITH FAMILY AND FRIENDS
GURUDWARAS
FASTING ON VARIOUS OCCASSIONS
READS MAGAZINES- VOGUE, FEMINA, STARDUST
BRAND AWARENESS
LIKE TO LISTEN TO ALL KIND OF MUSIC
NIGHT PARTIES WITH FRIENDS AND
COLLEGUES
willingness to wear indo- western clothing
Preference to buy Indo western
apparel according to the age group
15%15%
30%
11%
10%
Yes
20%
7%
No
4%
6%
4%
6%
12%
8%
7%
5%
4%
8%
2%
2%
Below 18 18 -24 Yrs 25-31 Yrs 32-38 yrs Above 38
Yrs
Yrs
Student
4.6
4.5
4%
2% 2%
1%
1%
1%
Working
Professional
Important factors while buying apparel
5
10%
Business
2-3 Times in a week
2-3 Times in a
month
2%
1%1%
Homemaker
Preference for indo-western clothing
33%
4.43
3.98
4
Daily
3.5
27%
2.97
3
2.86
Yes
2.2
2.5
13%
2
No
9%
1.5
1
2%
0.5
4%
1%
8%
3%
0
Latest
Fashion
Brand Name
Design
Comfort
Price
Material
Below 40K Rs
41K-70K Rs
71K-1L Rs
1.1L- 3L Rs
above 3L Rs
TARGETING
Geographics
Demographics
TIER 1, TIER 2, TIER 3 CitiesDELHI,
AGE- 18-24, 25-31 YEARS
MUMBAI, KOLKATA, PUNE,
SHIMLA, CHENNAI, JODHPUR
INCOME- RS 71,000- 3lakh per month
International Market-
OCCUPATION- STUDENTS,
US ,UK
WORKING PROFESSIONALS
GENDER- FEMALE
Psychographics
ATTITUDE- early adopters, experimental,
trendy, positive outlook, early majority,
experiencers
Behavioral
Usage- moderate to heavy
INTEREST- fond of reading fashion
magazines, listening to music , like to
accessorize , shop
Buyer readiness- aware,
LIFESTYLE- social, busy
Benefits sought- casual wear ,
can be worn for special occasions
as well as to office
OPINION- opinionated, speak their minds.
Respect others opinion
informed, positive
21-25 yrs
25-30 yrs
18-20 yrs
VALUE PREPOSITION
Benefits
FUNCTIONAL
• Good quality fabric, comfortable silhouettes, a designer look
but without being hard on their pockets
EMOTIONAL
• The grassroot product will look modern and trendy but at the
same time the prints on the garments will make the customer
feel close to its origin. The customer will stay connected to its
culture in a fashionable way.
SELF-EXPRESSIVE
• The customer today wants to wear what depicts their own
personal style. The customer is experimental, knowledgeable
and knows what he wants. The customer will feel more
confident, positive, smart, modern and at the same time
closer to their traditions and values
PERSONIFICATION
FEMALE
TRADITIONAL
YET MODERN
EXPERIMENTAL
CONFIDENT
LIVELY AND
VIBRANT
SMART AND
TRENDY
OUTGOING
AMBITIOUS
CHARISMATIC
TRENDY
DRESSER
LIVES LIFE TO
THE FULLEST
INVENTORY
WESTERN
SILHOUETTES
INDIAN
PRINTS
VIBRANT
COLOURS
FUSION
CLOTHING
DESIGNER
LOOK
STYLISH
YOUNG
INNOVATIVE
POSITIONING STATEMENT
To young and vibrant fashionistas who are attached to
their culture, grassroots is an apparel brand that gives
them a one stop shop of the most stylish and trendy
blend of both the western and Indian cultures to
achieve their aspired look.
Creating product differentiation
Points of difference: one stop shop,
inhouse stylist
Points of Parity : good quality fabric and
trims, nice fit, will be available in all
colors
VAST VARIETY
OF FUSION
CLOTHING
UNDER ONE
ROOF
USP
IN-HOUSE
STYLIST
INDIAN PRINTS
ON WESTERN
SILHOUETTES
PERCEPTUAL MAPPING
High Price
Sabyasachi
Anokhi
W
Grass ROOTS
fabindia
Low Variety
High Variety
Sampada
Unorganized
market
Low Price
COSTING FOR FABINDIA MERCHANDISE
BASIC
Fabric costBASIC
59/m
average Requirement -2 m
Cost-59x2m=Rs
118APPROX
CMT per Garment- 60 Rs
Total cost- 118+60=178 Rs
Vendor Charges- 5%
SRC(supplyRegionCharge)5%
Total- 178+17.8=196 Rs
FASHION BASIC
RetailMargin=50%
Retail margin 64.25 %
Retail margin 75.25 %
MRP- Rs 360
MRP- Rs 1200
MRP- Rs 2490
Fabric- Cotton/Linen/ Silk
=150 Rs APPROX
average Requirement-2 m
Total cost-150x2=300 Rs
CMT per garment-90 Rs
Cost-300+90=390 Rs
Vendor Charges- 5%
SRC(supplyRegionCharge)5%
Total cost-390+39=429 Rs
FASHION
Fabric- Cotton/Linen/ Silk
= 220 Rs APPROX
average Requirement-2 m
Total cost-220x2=440 Rs
CMT per garment-120 Rs
Cost-440+120=560 Rs
Vendor Charges- 5%
SRC(supplyRegionCharge)5%
Total cost-560+56= 616 Rs
willingness to spend on a indo western
Top
willingness to spend on indo-western
bottom
26.67%
26.27%
Rs.500-999
20%
18.33%
16.67%
25%
blw Rs.1000
20%
Rs.1000-1499
Rs.1000-1499
Rs.1500-1999
Rs.1500-1999
6.67%
1.67%
1.67%
18 -24 Yrs
5%
1.67%
1.67%
10%
8.33%
Rs.2000-2499
Rs.2500 & abv
5%
3.33%
1.67%
Rs.2000-2499
Rs.2500-2999
Rs.3000 & abv
18 -24 Yrs
25-31 Yrs
25-31 Yrs
willingness to spend on a indo western
dress
0.25
23.33%
21.67%
20%
blw Rs.1500
0.2
Rs.1500-1999
0.15
Rs.2000-2499
11.67%
10%
0.1
5%
0.05
6.67%
Rs.2500-2999
Rs.3000-3499
1.67%
Rs.3500 & abv
0
18 -24 Yrs
25-31 Yrs
TOPS
Rs 1500- Rs 2500
BOTTOMS
Rs 1500- Rs 2500
DRESSES
Rs 2000- Rs 3000
COMPETITIVE
PRICING
price range of
grassroots is similar
to its competitorfabindia.
PROMOTIONAL PRICING
Grassroots will
follow competitor’s
pricing to avoid
conflicts.
PRICING STRATEGY
PRICING OBJECTIVE
STATUS QUO
SPECIALEVENT
PRICING
grassroots will have
such pricing at
festive time- diwali,
holi etc.
RANGE PLAN
Basics
Fashion
Basics
Fashion
Merchandise
Top
Top
Top
590-1140 Rs
1190-2440 Rs
Bottom
Bottom
Bottom
740 -1190 Rs
1240-2440 Rs
2490-2990 Rs
Layering
Layering
1440-2990 Rs
3040-3990 Rs
2490-2990 Rs
Dresses
2490-3990 Rs