Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ACKNOWLEDGEMENT
It is pleasure to acknowledge those who have contributed to this project directly or
indirectly, though it will be still an inadequate appreciation of their contribution, we here by
acknowledge the names of the people to whom we shall always remain grateful.
We would sincerely like to express our gratitude to Mr. Ravjibhai Patel who gave us the
grand opportunity to have Grand Project at Adani Supermarket.
We would especially like to thank Mr. Manish Christian, the Retailing Manager at
ADANI for evincing keen interest in our work, continuous encouragement and guide us through
out our survey. Without his cooperation it was impossible to reach up to this stage.
We are also very thankful to all the members of Adani Supermarket who shared their
valuable knowledge with us & gave us opportunity to understand the field of competitive Retail
industry.
We are also very thankful to Prof. Rajeshwari Jain who performed as a guide for this
project. We are thankful for her constant guidance, support and inspiration.
We would also like to sincerely express our gratitude to our director Prof. S. Chinnam
Reddy & all the faculty members who have been time & again directly or indirectly helped us
in relation to the Grand Project. Without the theoretical knowledge imparted by them during 4th
Semester of M.B.A. course it was not possible to have it applied in practical life.
We are thankful to the librarian at the SKPIMCS & at the AMA for extending their
helpful hands as and when needed without any hesitation.
Thanks to our parents, who always keep us from falling apart during endless hours of
our project. They always keep our sprits up and our hamstring in working order.
We eagerly look forward for the suggestions for improvement from the readers of this
project.
Dhaval Pandya
Mayur Karavadara
CERTIFICATE
CONSUMER PREFERENCE ON GARMENT
This is to certify that Mr. Dhaval Pandya and Mr. Mayur Karavada, the students of
M.B.A. 2nd Year of S.K.Patel Institute of Management & Computer studies, Gandhinagar have
completed their grand project titled as “A STUDY OF CONSUMER PFERENCE IN
GARMENT IN ADANI HYPERMARKET AT AHEMDABAD” in the year 2005-2006 in
partial fulfillment of Gujarat University requirement for the award of degree of Master of
business administration.
Date: __/__/2006
DECLARATION
CONSUMER PREFERENCE ON GARMENT
Date: __/__/2005
Place: Gandhinagar Uteshiya Dilip M. Thakrar Milan R.
INDEX
01 EXECUTIVE SUMMARY 02
02 PREFACE 03
03 INTRODUCTION OF RETAILING 04
04 INDUSTRIAL ANALYSIS 07
08 A BRIEF HISTORY 15
15 PORTFOLIO OF BCCL 26
18 FEMINA 36
19 FILMFARE 41
o RESEARCH PROBLEM 50
o RESEARCH OBJECTIVE 51
o HYPOTHESIS 52
o STRATAS 52
o SAMPLING PROCESS 52
o SOURCES OF DATA 53
o RESEARCH INSTRUMENT 53
24 SUGGESTIONS 70
25 EXTRA ACTIVITIES 71
26 BIBLIOGRAPHY 72
27 QUESTIONNAIRE 73
EXECUTIVE SUMMARY
The grand project at ADANI HYPERMARKET, Ahmedabad was very informative and
knowledge giving.
We have done Research Study on the consumer preferences on garment. The Research Study
was confined to Ahmedabad City with a sample size of 250. We have primary data through
questionnaire. We have also used different retail magazine and web-site for require information
in our secondary data.
CONSUMER PREFERENCE ON GARMENT
At the end of the Research study we have come to the conclusion that ADANI
HYPERMARKET have good potential to attract customer in store but they require to create
more awareness in the garment selling at hypermarket.
All the suggestions and findings might prove important to ADANI RETAILING and helpful to
find consumer preferences in garment department.
PREFACE
The business of retail in India has seen significant changes in last few years. We have
seen the emergence of new formats and the application of global concepts and constructs albeit
with modifications to suit the Indian environment. It not only provides the Indian consumers a
wide choice, but also represents a very large employment opportunity for people with diverse
skill sets.
India has largest retail density in the world with 12 million retail outlets for a population
of over a 1000 million, though 96% of these are smaller than 500 sq. ft. A 2 percent share of
organized retail in India is the way below the 80 per cent share in USA, 40 per cent in Thailand
and 20 per cent in China. Organized retailing is growing very rapidly in India.
CONSUMER PREFERENCE ON GARMENT
Adani retailing India Ltd. is the group company of Adani group having nearly 61
supermarkets and 5 hypermarkets in Ahmedabad. It has penetrated the Ahmedabad market and
it is on the way of expansion in other cities of Gujarat.
Adani want to improve there consumer promotion scheme in garment. So studying the
consumer preferences and find what the people of Ahmedabad expect in garment preferences
should be understood. Our questionnaire is based on the requirement of the company. Our study
will provide some insight to the company in understanding consumer buying behavior and
deciding the part of product mix requirement for upcoming hypermarket.
1. INTRODUCTION
The first question that must be considered is: what is ‘retail’? The word retail is, in fact,
derived from the French word RETAILER, which means to cut off a piece or break bulk. A
retailer may be defined as a ‘dealer or trader who sells goods in small quantities’ or’ one who
repeats or relates’. Retailing can hence, be considered as the last stage in the movement of
goods and or services to the consumers. put simply, any firm that sells products to the final
consumer is performing the function of retailing .it thus consists of all the activities involved in
the marketing of goods and services directly to the consumers, for their personal, family or
household use.
The past century has been witness to many changes occurring in our everyday world.
Industrial and technological growth has made a significant impact on our lives as consumers.
One such industry, which has made a phenomenal impact on our daily lives, is retail. This
industry touches our lives as end consumers, by providing us with the products or services that
we need.
CONSUMER PREFERENCE ON GARMENT
Almost everything we use in our daily lives including the feed we eat, the clothes we
wear, and the things we need for our homes or for ourselves, are bought from retail stores.
Goods are manufactured all over the world but are ultimately sold to us through these retail
stores.
India has already proven its mettle as superpower in the arena of information
technology. The retail industry offers to bloom to the same level if conductive environment and
support is provided it. India’s one billion populations make the country the second largest in the
world in terms of population which is the very basis for successful organized retailing. We
should take heart from the fact that most of the world’s successful retail stories in the developed
as well as developing countries have shaped up in small towns and villages.
Retailing is a green pasture not just for individuals or companies but also comes with
job opportunities in all aspects of the operations. Professionalisms in retail while still in its
infancy does show some promising future for those keen to make a career in this fascinating
world.
Talking about our project, the title of the project is “A STUDY OF CONSUMER
BEHAVIOR PATTERNS WITH RESPECT TO PART OF PRODUCT MIX FOR
UPCOMING HYPER MARKET IN AHMEDABAD”. For acquiring related data we have
formed one questionnaire which contains 12 questions. Basically all these questions are focused
on the consumer’s behavior for visiting any outlet, purchase the product and frequent need of
the products.
We have also learned the theoretical knowledge which requires for completing this project.
We have got the knowledge about the Retailing, as well as the consumer behavior. We have
learned about the Retail industry in Indian context as well as in global context.
After studding these aspects of Retailing we have tried to give the suggestions and the
recommendations for strengthening the future policies of the Adani hyper market in the
Ahmedabad.
This project will helpful to the organization for knowing what is consumers’ behavior
regarding products and services offered by local provision store and general store, as well
as about the part of the product mix..
CONSUMER PREFERENCE ON GARMENT
1. 2. RESEARCH METHODOLOGY
2.2 OBJECTIVES:
To study consumer behavior for purchasing products from different types of retail
format
To analyze product requirement of consumers from provision store, superstore etc. with
frequent use.
To analyze product mix factor affecting switching of consumer from traditional retail
formats to hypermarket.
2.3 SCOPE:
• Study of consumer behavior patterns who purchase their household necessity from
provision store as well as from the supermarket and the study was limited to 180 ft. Ring
road, Kalawad road, Raiya road, Gondal road, Nirmala convent road, 150 ft. ring road.
University road, Yagnik road Karanpara, Manharplot etc.
For completing this project we have taken a time period of three month with our study of
the 4th semester.
In this project convenient sampling method is used for the selection of customer.
CONSUMER PREFERENCE ON GARMENT
To define sampling unit, one must answer the question that who is to be surveyed. In
this project sampling unit is households who are purchasing there household necessity from the
supermarket and the customers who are purchasing there routine household items from the
provision store of Ahmedabad city of different areas. The Geographical Unit is Area and the
social unit is house holds.
1. Questionnaire
1. Magazines.
2. Newspapers
3. Websites
4. Books
5. Other projects.
2.7 FIELDWORK:
In order to gather the primary data associated with our survey of consumers over a
selected hub of areas in Ahmedabad, we have undergone an extensive fieldwork. The basic
purpose of the field work was, obviously, to record responses of target consumers.
2.8 LIMITATIONS
• The time duration to carry out the survey of all the areas of Ahmedabad was very short.
• Our survey was restricted to areas like 180 ft. Ring road, Kalawad road, Raiya road,
Gondal road, Nirmala convent road, 150 ft. ring road. University road, Yagnik road
Karanpara, Manharplot etc.
CONSUMER PREFERENCE ON GARMENT
• The sample size for the survey of customers was limited to 200 respondents, which
might not be representative of all customers of Ahmedabad city.
• The respondents are selected by convenience so they may not be representative of the
analysis.
• The results are totally derived from the respondent’s answers. There might be a
difference between the actual and projected results.
• Research also depends on surveyors’ bias & his/her ability to analyze the data & draw
conclusion.
CONSUMER PREFERENCE ON GARMENT
3. INDUSTRY PROFILE
Retailing is the final step in the distribution of merchandise - the last link in the Supply
Chain - connection the bulk producers of commodities to the final consumers. Retailing covers
diverse products such as foot apparels, consumer goods, financial services and leisure.
A retailer, typically, is someone who does not effect any significant change in the
product execs breaking the bulk. He/ She is also the final stock point who makes products or
services available to the consumer whenever require. Hence, the value proposition a retailer
offers to a consumer is easy availabilities of the desired product in the desired sizes at the
desired times.
Many retailers did globalize, and some succeeded. Yet many more retailers, especially
U.S.-based retailers, struggled and failed to find the holy grail of globalization.
Indeed, the retailing industry is littered with the charred remains of investments that
drained cash from the bottom line. Retail behemoths were humbled by poorer, technically
unsophisticated local companies that simply knew their customers better. They were sideswiped
by financial crises in such disparate locations as Argentina, Indonesia, Russia, and Mexico. So
is there still hope for retail globalization? The answer is yes.
Despite the many failures, there are also many successes. The factors that drove
enthusiasm in the past have not disappeared. Emerging markets still represent the greatest hope
for increased spending power, home markets are still laden with excess capacity and slow
growth, and big retailers still have much to offer consumers in emerging countries.
In the developed countries, the retail industry has developed into a full-fledged industry
where more than three-fourths of the total retail trade is done by the organized sector. Huge
retail chains like Wal-Mart, Carr four Group, Sears, K-Mart, McDonalds, etc. have now
replaced the individual small stores. Large retail formats, with high quality ambiance and
courteous, and well-trained sales staff are regular features of these retailers
CONSUMER PREFERENCE ON GARMENT
Broadly the organized retail sector can be divided into two segments, In-Store Retailers,
who operate fixed point-of-sale locations, located and designed to attract a high volume of
walk-in customers, and the non-store retailers, who reach out to the customers at their homes or
offices.
Apart from using the internet for communication (commonly called e-tailing), non-store
retailers did business by broadcasting of infomercials, broadcasting and publishing of direct-
response advertising publishing of traditional and electronic catalogues, door-to-door
solicitation and temporary displaying of merchandise (stalls).
This year we have expanded our coverage of large retailers. The table presents the 250
largest retailers around the globe. An additional 50 retailers were added, in part, because there
are a large number of companies that have sales in the low- to mid-$2 billion range that in
previous years were not being highlighted. Several of these companies are rising stars; others
simply are solid performers whose status should be acknowledged.
The retailers in the current list generally performed well in 2003. The global economic
upswing gained momentum in 2003, which provided an important lift to retailers around the
world. Importantly, many regions — North America, Asia, Latin America, Africa — exhibited
growth in consumer demand for the year. This synchronous upturn underpinned the 3.9 percent
gain in inflation-adjusted global GDP in 2003. It was the global economy’s strongest rate of
increase since 2000. Only Western Europe did not experience acceleration in growth during the
year.
2004 Results
Retail sales for these 250 companies totaled $2.6 trillion. With global retail sales of
roughly $8 trillion, these 250 retailers are capturing about a third of the marketplace. Retail
sales varied across a wide range — from a high of $256 billion for Wal-Mart to CBRL Group’s
$2.2 billion. (CBRL Group is known mostly for its Cracker Barrel Old Country Store
Restaurants.) However, at the bottom of the list, the race was much tighter. There were 58
retailers whose sales were within a very narrow band of $3 billion to $2.2 billion. There also
were nearly a dozen more retailers with sales of slightly more than $2 billion who just missed
making the list.
CONSUMER PREFERENCE ON GARMENT
The improved global economy, coupled with increased productivity from technology
investments, has helped retail profitability. For those companies who report their results, only 5
retailers, or 6 percent, recorded a net loss in 2004. In last year’s report, 7 percent of the retailers
had losses, and in the prior year, 13.5 percent were unprofitable. For those who were profitable
in 2004, the average net income figure represented 3.3 percent of group sales.
The largest retailers have, for the most part, retained their leadership roles. Among the
top 10 retailers, there were only small movements in the rankings. The top three companies —
Wal-Mart, Carrefour and Home Depot — remained the same. Tesco and Aldi Einkauf moved up
two slots, while Sears dropped from 10th to 13th largest global retailer. Sales from these 10
retailers reached $740 billion, representing 28.4 percent of the total from these 250 companies.
There are two new Chinese retailers that have joined the ranks of top retailers. Shanghai
friendship, ranked 164 on the list, is the parent company of China’s largest supermarket
Operator, Lianhau Supermarket. Beijing Gome Home Appliance is the 230th largest retailer on
the list. As the Chinese government continues to support efforts of consolidation among its
retailers, the number of large retail conglomerates will continue to grow. China’s securities
regulator in October 2004 approved a plan for Bailian Group to acquire major stakes in five
other retailers, including Shanghai Friendship.
For Indian retailing, things started to change slowly in the 1980s, when India first began
opening its economy. Textiles sector (which companies like Bombay Dyeing, Raymond's, S
Kumar's and Grasim) was the first to see the emergence of retail chains. Later on, Titan, maker
of premium watches, successfully created an organized retailing concept in India by
establishing a series of elegant showrooms.
For long, these remained the only organized retailers, but the latter half of the 1990s saw a fresh
wave of entrants in the retailing business. This time around it was not the manufacturer looking
for an alternative sales channel. These were pure retailers with no serious plans of getting into
manufacturing. These entrants were in various fields, like - Food World, Subhiksha and Nilgiris
in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in
books.
As of the year ending 2000 the size of the Indian organized retail industry was estimated
at around Rs. 13,000 Crore. The various segments that make up the organized retail industry
along with their size are in table given below. Retail growth is already gathering momentum and
CONSUMER PREFERENCE ON GARMENT
the organized retail industry is expected to grow by 30 per cent in the next five years and is
expected to touch Rs. 45,000 Crore in 2005. Thus, the growth potential for the organized
retailer is enormous
Retailing in India
The retail market size in India is estimated to be around $180 billion. Retailing provides
jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor to
India's GDP. But the flip side of the coin is that the average size of each of the retail outlets in
India is only 50 square feet and though a large employer, the industry is very unorganized,
fragmented and with a rural bias.
There are nearly twelve million retail outlets in India and the number is growing. Two
thirds of these stores are in rural location. The vast majority of the twelve million stores are
small "father and son" outlets. According to the "Retailing in India" report published by the
PwC Global Retail Intelligence Program, share of the unorganized sector is 98%.
Retail stores in India are mostly small individually owned businesses. The average size
of an outlet is 50 sq. ft. and though India has the highest number of retail outlets per capita in
the world, the retail space per capita at 2 sq. ft per person is amongst the lowest in the world.
Nearly two thirds of the stores are located in rural areas. The retail industry in rural
India has typically two forms: "Haats" and "melas". Haats are the weekly markets: they serve
groups of 10-50 villages and sell day-to-day necessities. They are frequently used as
replenishment point for the small village retailer. Melas are larger in size and more
sophisticated in terms of the goods sold. Mela merchandise would include more complex
manufactured products such as televisions.
Even in urban areas, organized in India is restricted to the top few cities of the country
as shown in Table given below:
Trends in Retailing
Retailing in India is at a nascent stage of is evolution, but within a small period of time
certain trends are clearly emerging which are in line with the global experiences. Organized
retailing is witnessing a wave of players entering the industry. These players are experimenting
with various retail formats. Yet, Indian retailing has still not been able to come up with many
successful formats that can be scaled up and applied across India. Some of the notable
exceptions have been garment retailers like Madura Garments & Raymond’s who was scaled
their exclusive showroom format across the country
CONSUMER PREFERENCE ON GARMENT
Retailing in India is still evolving and the sector is witnessing a series of experiments
across the country with new formats being tested out; the old ones tweaked around or just
discarded. Some of these are listed in Table below.
Retailer Current Format New Formats. Experimenting With
Shoppers' Stop Department Store Quasi-mall
Ebony Department Store Quasi-mall, smaller outlets, adding food retail
Crossword Large bookstore Corner shops
Pyramid Department Store Quasi-mall, food retail
Pantaloon Own brand store Hypermarket
Subhiksha Supermarket Considering moving to self service
Vitan Supermarket Suburban discount store
Food world Food supermarket Hypermarket, Food world express
Globus Department Store Small fashion stores
Bombay Bazaar Aggregation of Kiranas
Efoodmart Aggregation of Kiranas
Metro Cash and carry
S Kumar's Discount store
Retailers are also trying out smaller versions of their stores in an attempt to reach a
maximum number of consumers. Crossword bookstores are experimenting with Crossword
Corner, to increase reach and business from their stores. Food World is experimenting with a
format of one-fourth the normal size called Food World Express.
2. Store design
Irrespective of the format, the biggest challenge for organized retailing is to create an
environment that pulls in people and makes them spend more time shopping and also increases
the amount of impulse shopping. Research across the world shows that the chances of senses
dictating sales are as much as 10-15% for certain categories. This reason is good enough for
organized retailers to bring in professional designers while developing a new property. And, that
is why retail chains like Music World, Barista, Pyramid and Globus and laying major emphasis
& investing heavily in store design.
Music World spent three months in college campuses and metros studying the market
and talking to youngsters before starting work. The brand identity was created after extensive
research: a logo was designed and the look of the stores across the country was decided upon.
Apart from the visual impact, the functionality of the store design was also taken care of.
Listening posts have been created for people to listen to their favorite album and an area in the
center of the stores has been earmarked for celebrity visits and promotions.
What does Subhiksha in Chennai, Margin Free in Kerala and recent entrants like
Bombay Bazaar in Mumbai, RPG's - Giant in Hyderabad, Big Bazaar in Kolkata, Hyderabad
and Bangalore have in common? Their products are below MRP.
Discount stores have finally arrived in India and they are expected to spearhead the
revolution in organization retailing. Though this segment is growing, it is small compared to
international standards where around 60 per cent of the business comes from this format.
Internationally, the largest retailer in the world Wal-Mart is a discounter. These discount stores
have advantages of price, assortment dominance and quality assurance and have the ability to
quickly build scale and pass on the benefits. However, the success would be for retailers who
are able to build the scale fast and manage their operations efficiently while offering value to
the customer consistently.
To meet the challenges of organized retailing that is luring customers away from the
unorganized sector, the unorganized sector is getting organized. 25 stores in Delhi under the
banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and
Efoodmart have also been formed which are aggregations of Kiranas.
In a novel move, six Delhi based restaurants have come together and formed a
consortium: NFC, to promote New Friends Colony, a posh locality in the Capital, as a branded
place in town. The aim is to increase footballs in the area, which is fast losing its sheen to its
closest and upcoming destinations such as large cineplexes, and malls, which are backed by the
corporate house such as 'Ansals' and 'PVR'.
A lot of activity is happening in retail and though we do have may success stories, not
all ventures have been successful. Shoppers' Stop, for example, implemented JD Edwards ERP,
but could not reap much benefit due to less than optimal number of operating locations. A few
references of other such less successful ventures is given below:
Franchising, as a way to grow has not worked out well for Vitan, the second oldest food
supermarket. More than two third of its 19 odds outlets have either folded up or snapped
up ties with the parent.
The foray of organized retailing in the small towns of India has met with limited
success. The notable example being Shoppers' Stop foray in Jaipur. The retailers are now
focusing their energies on the top six cities.
India's oldest food supermarket chain, the Bangalore based Nilgiris has been up for sale
for a few months now but yet to find takers.
In Delhi, the Escorts group-promoted Nanz, a food supermarket has shut down after
being unable to find a white knight.
CONSUMER PREFERENCE ON GARMENT
These failures and limited successes have happened both due to a lack of experience and
understanding of issues.
VISION 2010
CONSUMER PREFERENCE ON GARMENT
21990
25000
16148
20000
15000
INR Cr
Organised
Malls
10000 6283
5759
4712
4614
4229
4189
3665
3665
3460
3076
2691
2691
2094
5000
1538
0
Entertainment
Personal Care
Eaiting out
Consumer
Specially
Apparel
Grocery
Others
Durables
& Leisures
According to ICICI estimates, the share o organized retailing is set to increase from 20 percent
in 2010. A share of Rs. 2900 Crore in 2004 will leap to Rs. 38,447 in 2010.
25000
20000
16148
15000
INR Cr
Organized
Malls
10000
6283
5759
4614
4712
4229
4189
3665
3665
3460
3076
2691
2691
5000
2094
1538
0
Apparel
Entertainment
Eaiting out
Grocery
Specially
Consumer
Others
Personal Care
Durables
& Leisures
CONSUMER PREFERENCE ON GARMENT
The past 2-3 years have seen a number of developments in the retailing business in
India. The entry of corporate houses like RPG, Tata and Piramals has increased the capital
availability in the market. Bigger players like Shoppers Stop are in a position to take advantage
of their sizes in dealing with the manufacturers. Despite a slowdown in the economy, customer
queues at the stores are not decreasing. Retail sector is bound to grow in the coming years. But
how much and in what direction are the questions that need to be evaluated.
Various agencies have made different estimates of the size of organized market in 2010.
The one thing in common amongst these estimates is that the Indian organized retailing industry
will be very big in 2010. The status of the industry will depend a lot on external factors like
Government regulations and real estate prices, besides activities of the retailers and demands of
the customers. Based on our analysis of present trends, and development of retailing elsewhere,
we present our perspectives and snapshots of organized retailing, as it would exit in 2010.
Retail sector will see huge investments in the next 4-5 years. Newer chains will come in
and the present players will increase their penetration. By 2005, the established players would
have reached saturation levels in metropolitans and will shift the focus of their investments to
other Class 1 cities. By 2010, there will be little difference between the metros and the next 20
cities (the present million plus cities).
The entry of foreign players, if allowed, will not only affect ownerships, but also change
the basics of business. Huge investments in stores and their supply chains can transform the
entire scenario. But the lifting of ban is a policy issue that cannot be predicted, and can only be
decided by the government.
2. Demographics
In the next 10 years, India population is expected to grow by about 14 per cent. But this
increase will not be even. Important trends that will affect retailers are listed below.
CONSUMER PREFERENCE ON GARMENT
The number of children (0-15 years) will remain stable at 30 million: This will mean a
lesser growth for toys, games and some apparel segments. But given the current nascent stage
of the growth, these sectors will still offer high growth rates.
The number of people in 40-60 years of age will go up by 30%: Sales of cosmetics, skin
care, hair dyes, and other youth inducing products will rise. More consumer resources would be
spent on retirement planning and saving for retirement. Home improvement and financial
services firms would benefit from this trend.
The number of households will increase by 25%: This would lead to a higher growth in
the household-decor items vis-a-vis personal items as apparel and fashion accessories.
3. Regional differences will stay
Although a few players will be able to form pan-Indian retail supply chains, the retail
market is unlikely to be a single entity. For example, food retailing in Chennai, Kolkata and
Chandigarh is vastly different in terms f shopping habits and consumer tastes. Many such
differences will remain.
Though a few national retail chains will develop, they would have to coexist with strong
regional players, who would excel in their understanding of the customers and strong brand
names. The national players would primarily be is sectors like Apparel, Fashion, Food and
Music. Importance of local supplies for grocery sector would ensure the regional chains would
reign supreme in these sectors. The key to success for national players will to maintain the
efficiencies that come from their large-scale operations while retaining the ability and the
flexibility to satisfy different needs of different consumers.
However, organized retailing, in some cases, will change and harmonize consumer
habits, purchasing patterns and consumer behavior. McDonalds and Barista have already been
successful in doing this.
Today, internationally all top-retailers (except Kmart and Aldi) operate 3-4different
formats, with companies like Metro AG operating 13 formats. This diversity of formats allows
the company to utilize its brand value across different segments and categories of customers.
Signs of such a development are visible in India as well. A movement towards Class-I
cities necessitates modification of operating format5s to suit different needs. By 2010, top
retailers would be operating at least 3-4 formats.
The biggest challenge that the retailers will have to face would be of maintaining
different brand images, and though clashing images would be formed, a few retailers would be
able to use Brand Extensions to establish different images in different cities.
With more dual income families’ consumer ability to spend will increase, but the time
available for shopping will go down. Customers will become more demanding in terms of rapid
and friendly service. Retailers would develop shopping as an entertaining experience, but the
more successful ones will be the ones who provide faster service.
On the other hand, increasing competition would push the prices down. Efficiencies in
supply chain and economies of scale would allow retailers to reduce their prices without
compromising either on the shopping experience or on their own profitability.
6. 24 hours retailing
Time stressed consumers will also ask for round the clock retailing. As these consumers
will be ready to pay a premium for service at odd hours, the timings of shopping will have to
adapt to needs of these consumers. A number of 24 hours retail stores would emerge to cater to
this need.
The assumption here is that the current administrative restrictions on running shops at
nights will be lifted. It is expected that in the face of increasing demand from both the
consumers and the industry fore, regulations regarding retailing will be eased.
However, to compete with the big retailers on price, small retailers will form
cooperatives for purchasing, just as the once in France, Spain and Italy have already done. This
trend has also started in Delhi, and is only expected to increase.
T he balance of power between retailers and manufacturers will shift towards the retailers.
The bigger retailers would be able to seek the lowest prices, require their suppliers to assume
greater business risks, and collaborate with suppliers to achieve overall cost reduction in their
operations.
Scale economics would help in operating optimized supply chains and logistics network
with investments in information technology enabling process efficiencies and effectiveness.
CONSUMER PREFERENCE ON GARMENT
9. Internet
Internet retailing will thrive in the coming decade. It may not be apparent now because
internet access is far behind the US and west, and high usage charges represent a serious
impediment to frequent consumer usage. The Government has already shown intent to
deregulate the telecommunications sector. Deregulation would increase Internet usage in the
country and also the trading on the net.
However, it is expected that the bricks and mortar stores converting to clicks and mortar
model would dominate the Internet sector. ? This is because of their already existing brand
names and economies of operations that they would be able to reap.
Conclusion
The past 4-5 years have seen increasing activity in retailing. Various business houses
have already planned for few investments in the coming 2-3 years. Though the retailers will
have to face increasingly demanding customers and intensely competitive rivals, more
investments will keep flowing in and the share of organized sector will grow rapidly.
Organized retailing in India is surely poised for a takeoff and will provide many
opportunities both to existing players as well as new entrants.
CONSUMER PREFERENCE ON GARMENT
Retailing in India is still evolving and the key players are working with newer formats in
an attempt to grow at a fast rate. The table lists some of the important retailers in India at the
present time:
CONSUMER PREFERENCE ON GARMENT
The trend of large corporate groups entering the organized retail sector - looking for new
business opportunities continues. Groups such as ITC, RPG, and Tata’s which entered the
organized retail sector are expanding their operations in the country.
Most of the players in organized retailing are in the initial stages of their business and
expansion plans. Accordingly, most are not profitable businesses at the present time.
Pantaloon and Westside (Trent) are listed on the capital markets and have shown net
profitable in the last year. Most other players are hoping to break even and start making money
only in the coming years.
The presence of multinational retailers is still an exception with Dairy Farm, Marks &
Spencer, already on the market. Metro is expected to set up operations by the end of the year.
The Indian Government is in the process of formulating a strategy to nurture and support
the retail sector. Due to this, retailing in India is largely unorganized and fragmented. Lack of
FDI (Foreign Direct Investment) is another reason why it remains so traditional. Policy makers
continue to put barriers for the entry of foreign enterprises due into this sector. But the last
decade has witnessed significant movements towards modern retailing, especially in the
consumer durable products segment. Products, marketed on ‘lifestyle’ platforms, experienced a
dearth of appropriate retail outlets, which could fit their brand positioning. As a result, many
brands began to set up their own retail outlets initially, thereafter expanding their modern retail
network through franchise arrangements.
In contrast, the grocery segment has been slow to take to modern retail. The grocery
sector in India is estimated to be USD 90 billion. The organized retailing in this segment is still
in its nascent stage and needs to develop in terms of its scale and share in the market, margins
earned, labour productivity, and economic propositions like distinctive sourcing, development
of private labels, technology, etc.
But there are some modern retailing formats in grocery that have emerged and are
catching on with the increasing number of nuclear households in urban India, where both
husband and wife may be working out of home or traveling.
A large number of retail outlets in India still remain family owned. They offer limited
Products and finance facilities. Banks are hesitant to provide these retail sector units with
finance facilities due to their small size which is non viable for the banks. The supermarket
format in India faces the difficulty of obtaining licenses, customer inhibition and the lack of
suitable personnel.
CONSUMER PREFERENCE ON GARMENT
Brand Competition
The Indian urban consumer is quite aware of international trends and most consumers
are very value-conscious. Indian retailers need to be extremely efficient in their operations and
design, as the value-conscious Indian consumers will not pay more for a superior shopping
experience. What this means for international brands is that they need to clearly offer
contemporary designs and provide value to the Indian consumer - even if this means adapting
their international designs to suit local conditions.
With the advent of global competition in the retail sector, domestic companies will have
to learn to keep up with the trends of the market or face the consequences of shutting down. But
consumers have benefited from this competition as it provides them with a larger variety of
choices and a better standard of living.
Franchising Development
An Emerging Middle-Class
The income distribution of households has also undergone a sea change in recent years.
The consolidated purchasing power of the country has gone up, and the trend is projected to
continue. A significant share of population will move up the affordability and affluence ladder
by 2006 - 07.---
CONSUMER PREFERENCE ON GARMENT
As the table above shows, the lower middle income segment is also expanding. While
the affluent, upper middle and core middle segment taken together is 86 millions, the low
middle segment itself is 204 million. This segment could be an equally attractive proposition for
retailers and they could target specific business models for this segment
The sheer size and potential of India’s consumer market is enough for the big
international retailers to have an interest in setting up stores in the country, despite the obstacles
they might face. The growth prospects of this sector seem to be very positive. A large number of
malls, entertainment complexes and eateries are being set up. The next few years is likely to see
rapid growth in organized retailing with several leading international retailers establishing a
presence in India.
aspects are looked into and another is Porter's Five Forces where the competitive environment
of the Industry is analyzed.
Now, in a particular geographic region, the environment there affects the retailers in the
region in various ways. We have studied the effects under the following heads:
1. Political environment
2. Economic Environment
3. Social (Socio-Cultural) Environment
4. Technological Environment
1. Political Environment
With the opening up of the economy, more and more MNC's have pervaded the Indian
Business arena, through joint ventures, franchisees or even self-owned stores. The very first
MNC getting into the business was Spencer's, a tie up between the RPG Group and the Dairy
Farm International; a $ 10 billion Hong Kong based company, and a part of the Jardine
Mathenson group. Government uses regulation to prevent development of monopolies, which
results in restricted competition and fixed prices. (MRTPC). Government also propounds price
competition laws and unfair trade practice laws. Retailers must understand what rights they
have in pricing merchandise, what provision they should make for customer relations, what
rights and responsibilities they possess when making a sales, what rights their employees have
and what liabilities they may face while selling products to the consumers.
2. Economic Environment
The type of economic system (capitalism or socialism etc.) existing in a country has a
direct bearing on the potential for and the development of the retailing industry in that country.
A retailer cannot escape the effects of the factors in the macroeconomic environment, be it
domestic or global that influences the local market.
Inflation, unemployment, interest rates, tax levels, the GDP and the rate of real growth
in GDP (Inflation adjusted) are some aspects of the economy which a retailer must cope with.
Real growth makes more income available to people who then tend to spend more,
leading to higher sales and more profits for the retailers. However growth also leads to higher
competition in the long run. As the economy expands, higher demand levels lead more firms
into the market, trying to fulfill the consumers' needs. The inflation (i.e. increase in price) leads
to less goods being bought at higher prices. As the retailers' cost of goods increases, they
attempt to pass on this increase to the consumers. However, it is often not possible to pass on
the entire amount to the consumer, hence resulting in cuts in the retailers’ profits. With the
increase in Purchasing Power Parity (PPP) and the disposable income of the Indian consumer,
retailing is catching up at a very fast space in the country.
CONSUMER PREFERENCE ON GARMENT
3. Social Environment
The demographic trend and lifestyle patterns, of the society that a retailer intends to
serve, decide the retailer’s strategy. Traditionally, children seldom accompanied their parents
while grocery food shopping. Shopping for children was confined to that during festivals when
dresses were brought for them. But, in the present day, due to scarcity of time, working parents
prefer to spend as much time as possible with their children and this includes their shopping
hours also. As the organization retail sector offers the option of entertainment along with
shopping, the younger couples opt for these retail outlets for shopping Speaking at KSA Retail
Summit, 2000, Peter Lau, Chairman of Giordans International, Hong Kong, said, "It is the
format of consumer expectation that changes, not the goods or services they want.”
The results of this study clearly reflect that the buying patterns do vary according to the
customs and lifestyle of a region. In the south approximately seven hours are spent on shopping
per week. This figure is the highest amongst the four zones, which probably explains the more
spurt of new malls and supermarkets in the south than in the other zones.
Further, the study has attempted to find out what a customer expects out of a store. Here,
the six attributes desired by most number of people (65% and above) are polite and courteous
salespeople, quality of products, non intrusive sales persons, value for money, attractive
displays and range of products.
Although desired by a very low percentage of people (only 10%) yet the attribute of an
entertainment centre for children has also figured in.
That is to say, apart from quality and range of products, value for money and attractive displays,
the human touch has a vital role to play. Smart, polite and courteous sales people might make
all the difference for a store, which is like any other in terms of its Product offerings. There is
also emphasis on schemes and promotions, which, as the study ratifies, do pull customers.
Further the trend is towards more convenience and flexibility in terms of exchange/ return
policies, which play a vital role in encouraging the purchase.
4. Technological Environment
Technology is probably the most dynamic change agent for the retailing industry. The
computerization of the various operations in a retail store, including inventory management,
billing and payments as well as database (of customers) management, widespread use of bar
coding, point -of-sale terminals and Management Information System has changed the face of
retailing drastically. Apart from providing the retailers with better and timelier information
CONSUMER PREFERENCE ON GARMENT
about their operations, the technology also does the job of preventing theft, promoting the
store's goods and creating a better shopping atmosphere. These can be done with the help of
closed circuit televisions, video walls, in-store video networks, kiosks and other forms of
interactive applications ranging from CD-ROMs to virtual reality to let customers select and
buy products.
They make the customer's life a lot easier by facilitating the use of developments like
credit cards. Toll free 800 numbers have brought about a revolution in consumer's ordering and
feedback mechanisms. These also pave way for tele-shopping and net-shopping. Emerging
technologies will also facilitate just-in-time management of certain products within the store.
These trends are already visible in the music and greeting card industries.
5. Legal Environment
Despite the size and the phenomenal potential that exists, retailing is among the lesser-
evolved sectors of the Indian Industry. Retailing as an industry is yet to be recognized in India.
The policy environment is currently seen to be unfavorable to organized retailing.
Given the huge investments that need to be made, a look on the Foreign Direct
Investment Policy in the sector might be needed. Complex sales tax rates, octroi and excise
structures are major deterrents. Other impediments to growth of retail include the bureaucracy,
inflexible labour laws and multiple licensing requirements. Real estate in India is also not
geared to facilitate organized retailing.
Restriction on FDI
The Indian economy is highly regulated and the most significant regulation is the restriction of
foreign ownership.
A strong FDI presence in retail sector is expected to not only boost the retail scenario, but
also act as a driving force in attracting FDI in upstream activities as well. This will be more
prominent in food processing and packaging industries because many large retail chains also
promote their own brands by way of backward integration/contract manufacturing. The status of
organized retailing in some South East Asian countries that allowed FDI in retailing has been
given in Table below:
India 2% 98%
In view of the demands made by industry and the need to boost the retail trade, the
Government is actively considering removing the restrictions. A recent note circulated by the
Ministry of Commerce has proposed permission for FDI up to 100 per cent in retail trade
subject to Government approval on a case-to-case basis. However, this permission, if it is given,
will be with lots of strings attached. Besides following rules on minimum capitalization, the
foreign entrants will be expected to neutralize the outflow of foreign exchange (repatriation of
dividends) by way of export earning on a year to year basis.
The biggest opposition to allowing 100% FDI is the feared exit of the small retailers.
Currently, moves are on to counter these apprehensions and the players are keenly awaiting the
final decision from the Government.
There is a shortage of good quality retail space and rents are high for what is available.
Compounding these shortages are the following problems.
One of the drivers of property prices is the high demand for space in the cities. This
demand is exasperated by the flow of black money (undeclared for tax purpose) that is
generally invested in the property sector.
Only Indians can own property in India, which complimenting the restrictions placed on
FDI, restrict the entry of foreign players.
Stamp duties on property deals are significant (12.5% in Gujarat and 8% in Delhi). The
lease alone can cost up to 6-10 per cent of sales while it's just 3-5 per cent globally.
The initial urban planning of cities was done with smaller plots in mind which along
with rigid building and zoning laws make it difficult for procurement of retail space.
The urban land ceiling act and rent control acts have distorted property markets in cities,
leading to exceptionally high property prices.
The presence of strong pro-tenancy laws makes it difficult to evict tenants and make
people reluctant to give real estate on rent. The problem is compounded by problems of clear
titles to own
Labour Laws
The labour laws instituted to protect store workers are not flexible enough to support the
modern formats of retailing. These rigidities in the law constrain the operations of modern retail
outlets.
CONSUMER PREFERENCE ON GARMENT
Working hours are restricted, with shops required to close one day of the week and the
hiring of part-time employees is difficult, However, in Bangalore, the State Government has
permitted flexibility in the use of labour without doing away with the associated benefits
accruing to it.
Taxes
Corporation tax is 38% and this would be even higher at 45% for a foreign business.
Even essential basic foodstuffs are taxed (8% on milk).
The varying sales tax rate across states make supply chain management an even more
difficult task for retailers.
With the expected introduction of Value Added Tax (VAT) in April 2005, some of the
sales tax anamolies in the supply chain could get correct over a period of time. However,
retailers might also be additionally burdened as given below:-
In the tax regime contemplated from April 1 2003, VAT will be imposed at every stage
between the manufacturer and the final consumer. Thus, margin payable to the
distributor and the retailer will also be taxed.
As retailers and wholesalers would be taxed under VAT, their margins will decline.
Companies, in turn, will come under pressure to increase trade and distributors margins
to the extent of the tax being paid by them, thus pushing up the cost of the product. The
MRP could therefore increase in order to neutralize the impact of VAT on margins.
Goods with a long distribution chain between the manufacturer and final consumer, such
as FMCG items and consumer durable, would be the worst affected.
CONSUMER PREFERENCE ON GARMENT
As yet, we have been analyzing the retailing industry in the context of the macro-
environment - consisting of Political laws, Economic regulations, Social customs and Technical
standards, in the land of a particular retailer.
Now we move on to the analysis of the industry in the contest of competition prevalent within
the players of the industry. This addresses the need to identify those factors in the environment,
which influence the capability of a firm to achieve a competitive advantage and to position
itself to such advantage.
1. Threat of Entry
To an industry depends on the extent to which there are barriers to entry, which most
typically, are one or more of the following six:
1. Economies of scale are not such a big issue in the retiling industry. The scale of operation
might be small for a firm to begin with and it can, in its initial stages, focus on a specific
target segment whose needs can be addressed by that scale of operations. But these surely
gain importance once expensive technological advancements (which may be beyond the
reach of small retailers) come into picture.
2. For instance, it may be difficult for the small firms (or retail outlets or chains) to use fully
automated inventory systems or toll-free 800 numbers or in-store video networks or other
interactive applications. As a result, they might lose out on the grounds of efficiency, in
competition with their larger competitors. So they must adapt by concentrating on
providing more personalized services to the target segment seeking it. Hence this factor is
mainly responsible for triggering competition between large and small retailers.
3. Capital requirements again depend on the scale of operations. Franchisers have an edge
over the corporate retail chains in this regard as they are able to form national /
international networks without high investment of their own.
CONSUMER PREFERENCE ON GARMENT
4. Cost advantages independent of size (scale) arise due to the experience gained by early
entrants and the relationship they have established over time with their suppliers,
manufacturers and customers. These might also pose difficulties in handling market and
operational problems. This is why absolutely new local entrant faces severe competition
from the large retail chains operating worldwide who might want to plunder their regions,
with the expertise that they have gained as a result of years of experience. On the top of it,
with the help of lucrative offers, they tie-up with the existing local players who know the
area well.
5. Expected Retaliation from the existing firms (at large scales) is rising over time or due to
recent trend of foreign collaborations, they now have the financial muscle to combat any
sort of competition relating to price or promotion. For small and local retailers, this is not
such a big issue.
v. Legislation regarding location, prices, number of employees etc. affects the operations or
even establishments of a new entrant - at large as well as at small scales. Today legislation
has contributed towards increasing competition tremendously by allowing entry of foreign
players, independently or as a joint venture with the local players. But it works towards
keeping a check on entry by implementation of regulations.
6. Differentiation: postulates that new entrants might have to spend heavily to overcome
existing customer loyalties, which established firms are enjoying due to past advertisement
and customer service or simply due to early entry into the market. To attract its target
segment, a retailer will have to project some benefit(s) that he/she is offering over and
above the offerings of the existing players.
In case of tangible products in retailing industry as the existing feature in the consumer
market is brand loyalty (i.e. loyalty to a manufacturer's product) rather than store loyalty.
Consumers look for a particular brand which they have used/ consumed/ heard about, which
might be available with a number of different types of retailers- big and small. Today big
supermarkets or malls with specialized retailers do pose a threat to the neighborhood retail
stores, which are now used for fulfillment of immediate and small needs only. On the other
hand, large professional retailers face competition from more personalized retailers who might
be more comfortable with offering facilities like credit on purchases, return and exchange
offers, specialized, hard to get and better quality items and extended business hours in order to
retain whatever customer base they have and not let it be lured away by competitors. They just
have to niche around big retail stores and malls by improving customer service, tailoring
selection to customer needs and not competing directly with their product lines. Big retailers
cannot match small ones on value. They live on hype and not reality. E.g. Big retail stores
(chains) like Wal-Mart create illusion that they always undersell the market, based on a handful
of heavily promoted items at rock bottom prices, but the rest of their inventory is not as price
competitive.
CONSUMER PREFERENCE ON GARMENT
Mr. R Gopalkrishnan of Tata Sons has opined that- "In India, smaller retailers continue
to grow contradictory to the normal economic development where small retailers decline in
numbers with their emergence of the large players." Experts feel that the size of population and
the high unemployment rate have contributed to their growth of small retailers. With so many
looking for work, setting up a small outlet is relatively a simple Thing to do. Lastly, high (10%)
industry growth has turned competition into a market share game.
Also the threat of substitution may take four different forms, each of which we shall now
discuss with reference to above factors.
Product-for-product substitution
The growing popularity of traditional non-store retailing base of catalog mail orders,
direct mailers, telephone sales, door-to-door selling, supplemented by recent innovations like
vending machines, in-home video tape infomercials, on-line CD ROM systems, tele-shopping
and net shopping poses a threat to store retailers. These media do provide the customers with
ease of shopping, some entertainment and even more information about range of products. But
still it according to Indian consumer psyche it will take time to apply in Indian market. E-tailing
transactions are less than a quarter of a percent of the total retail business in India. Even in
western countries, it accounted only for 20% of the total retail spending.
Substitution of need
We take switching from one store or one type of store (e.g. small neighborhood retail
outlet) to another (e.g. a big department store) as an example of this type of retailing. In this
case, the buyers might be looking out for new experiences and might not mind the nominal
switching costs (like longer distance to be covered)
Retailing will definitely remain, in one form or the other, as long as the manufacturers
manufacture and consumers consume. Retailing does not seem to become extinct even in the
future. The issue that remains to be addressed is just - what forms it keeps evolving into. One
most prominent form visible today is e-tailing.
1. There is high supplier concentration (i.e. few number of suppliers for the industry). In case
of the retailing business, large numbers of manufacturers are competing for shelf space,
resulting into low bargaining power of suppliers in this context.
CONSUMER PREFERENCE ON GARMENT
2. There are other substitute products for sale to the industry. With large numbers of firms
manufacturing similar goods or providing similar services, differentiation is what gives a
competitive edge to some suppliers over others. But again due to spade of brands in the
market bargaining power of suppliers is low even in this context. But in one specific case
of exclusive distribution or dealership bargaining power of suppliers may be high.
3. The industry is not an important customer of the supplier group. This is not at all the case
here. Today, apart from probably factory outlets, retailing is the only interface between
manufacturers and consumers.
The suppliers' product is an important input to the buyer's business. Generally, this is not
the case with individual suppliers, hence affecting their bargaining powers adversely.
4. Switching costs from one supplier to another are high. This again is not the case in most of
the categories of retail sales expect for the exclusive dealership of some firms.
5. There is threat of forward integration by suppliers. This might be a threat in the long run.
Signs are visible in the form of direct mailers, door-to-door selling, tele-shopping and e-
tailing.
6. Marketers across the FMCG category and the durable sector feel that the retailer is going to
be a powerful influence on buyers. A primary reason for this is trust. Many families take
goods on credit from the retailer and moreover, spoilt goods are taken back by him. With
all these facilities thrown in, when he recommends a product, the consumer has no reason
to doubt him.
Bargaining Power of Buyers is high for the retailing industry because of flux of retailers
of varying sizes and types within the reach of consumers. Hence because of nominal or no costs
of switching suppliers (for the final consumers), these retailers are fighting for the fixed budget
of consumers. The customer in the past decade has become the key focus. The marketing
strategies revolve around him. From shopping, the trend has shifted to Shopping entertainment
and In certain cases, where retailers are providing highly differentiated products or services to
the buyers, the buyers have low bargaining powers
e.g. Crossword in Ahmedabad.
“To be a globally competitive, India focused MNC with leadership in trading, private
infrastructure and select niche technologies and be committed to the delight of our customers
and shareholders.”
Adani Group
“Adani House”
Near Mithakali Circle,
Navrangpura, Ahmedabad
India – 380 009
Tel: + 91 79 6565555 / 5555555
Fax: + 91 79 6565500 / 5555500
CONSUMER PREFERENCE ON GARMENT
B2C India Limited is promoted with an intention to foray into retailing marketing
business with an immediate objective of setting up a chain of retail outlets in line with its core
competence of Trading and Infrastructure. This venture has a starting advantage of the trading
and procuring strengths of Adani group.
In a few months with the institutional thrust and support of Adani group B2C has
created a multi locational retail store chain with 24 supermarkets & 4 hypermarkets
Ahmedabad, since the 1990’s, witnessed a retail revolution that is fast catching up with
the rest of the country. Leading the pack in the race for retail supremacy is Adani’s supermarket.
It all began with Vahid brainchild, V. set up in 1990. Later, a company promoted by the
Rs. 2000 crore Adani Group, B2C India Ltd, set up Adani’s Ravji supermarkets in Ahmedabad
in July 2001. The Adani Group entered into retailing business, through the entity B2C India Ltd,
with the takeover of Ahmedabad’s famous – “V Ravji Supermarket” as a business model.
Seeing an opportunity in the retail market, Adani Group had signaled the arrival of corporate
chain retail supermarkets in a field that earlier was family owned and run single outlets. The
Adani Group’s core competence of global trading, infrastructure development and focus on
niche technologies- essentially a service oriented intermediary between consumer and producer-
led Adani’s into retailing. Adani Group helped Vahid Ravji to realize his dream of reaching a
wider audience and exposing them to the choice, quality and service of a big supermarket chain
still bearing his name.
They have been certified with ISO 9001 and with ISO 2000 for only ISO Certified retail
chain
At present, the Adani group has one fully operational “Adani’s hypermarket” located on
150 ft. ring road, near Indira circle in Ahmedabad
4.5.1 MISSION
CONSUMER PREFERENCE ON GARMENT
To attain and maintain a position of leadership and market dominance in “Food &
Grocery Selling” while leveraging our core strengths of sourcing & logistics.
4.5.2 VISION
Many store rather than big store in one place so they can capture the more market place and
also satisfy the customer by providing the routine household products nearer to there place.
Higher customer satisfaction by providing the better quality, higher convenience, extra
ordinary Ambience, value addition and attractive promotion schemes.
Pursue new customer groups and entry into new geographical areas.
Expanding their business in particular one state e.g. Gujarat then nationally and then
internationally.
CONSUMER PREFERENCE ON GARMENT
Marketing mix is defined as the set of controllable tactical marketing tools that the firm
blends to produce the response it wants in the target market.
Apart from the traditional ‘four Ps’, which are product, price, place and promotion,
authors such as Booms and Bitner add the three extra Ps of people, physical evidence and
process. They argue that the marketing mix of four Ps is not comprehensive enough. The major
difference is argued to be the intangible element of human behavior, where quality and its
control is of paramount importance.
The main task of marketers in retail is to understand many of the complexities of the
marketing mix in order to ensure they will be better prepared to plan, control and manage
different type of retail operations. Retail managers have to control the aspects of the marketing
mix, which have most bearing on the demand creation and satisfaction level of consumers.
It is to be noted that the decisions regarding all the 7 P’s discussed below are taken at the
central warehouse situated at Mithakhali.
PRODUCT
A product is anything that can be offered to a market that may satisfy a need or a want.
This means a combination of goods and services, which includes the store, the staff and the
merchandise. In retailing the complete retail offer of location, price levels, merchandise, store
layout or method of selling, brand name and service provided play a pivotal role in a firm’s
existence and long-term success or survival. The shopper has to believe that the merchandise, or
outlet, offers added value in order for it to be successful.
Service
Merchandise Offered
PRODUCT CATEGORIES
1. Drinks/Juices 3. Breakfast
2. Bakery Products 4. Jams & Pickles
CONSUMER PREFERENCE ON GARMENT
PRICE
As far as products sold in any Adani outlets are concerned, any branded products
are sold at their Maximum Retail Price [MRP] on which they get some percentage of
margin from the manufacturers. The purchase manager at the central warehouse decides
this margin on a negotiation basis, with the manufacturer of the company whose
product/s is to be purchased.
Finally the goods of that company are purchased who offer them the best deal.
Same is the case in Adani labeled commodity goods which are purchased from the
producers at some price and are sorted, packed and are resold to the customers by adding
some percentage of margin. The prices of those goods are set at par with the prices
prevailing in other major Kiranas stores and supermarkets.
Again the discounts offered on various products depend on the level of margins
offered by the manufacturers out of which some percentage is passed on to the customers
in the form of discounts.
PLACE
Adani follows the both type of supply chain structure limited as well as extended.
A extended channel is where the manufacturer wholesaler and retailer provide a chain of
facilitating service in order to sell the right product to the final consumer. In case of the
perishable goods they follows the limited supply chain structure in which Adani store
manager gives order directly to the producer and for all the other goods they follows the
extended supply chain structure.
This activity of purchase is being handled at SKC [Stock keeping Center], all the
other stores send their requisitions to this main store, and thus maintain their inward and
outward entries with SKC.
CONSUMER PREFERENCE ON GARMENT
Store 1
Store 3
Internal Movements
When Necessary
In a typical inventory of any ADANI’s hypermarket, goods presently received,
after checking them are received by handing over of an inward slip to the suppliers. At
the same time any goods going out of the hypermarket, would go along with an outward
slip. A regular stocktaking activity takes place in the hypermarket periodically. At that
point, the sales associates are required to assist in the activity by taking the actual
physical stock for their work arrears. They are supplied with a printed blank from with
heads like the Item Code, Item Name, Rate, Quantity, wreck Number etc. for which they
are supposed to note down for particular areas allotted to the for stock taking. After
handing over this list/report to the manager’s desk, the report is then tailed with the stock
as per the stock statement of the system. The sales associates are answerable to clarify
discrepancies if any to the management.
DISTRIBUTION
Goods after being received from the supplier are then packed in various sizes,
packages to cater to the retail requirements of customers in case of private label brands.
Other brands products are dispatched to different stores as per their requirements.
DANI’s has daily business cycle by transferring goods mainly on daily basis.
However this differs according to the category of the goods.
In case of perishable items, manager can directly order to the local suppliers.
CONSUMER PREFERENCE ON GARMENT
RETAIL LOGISTICS
Retail logistic is the organized process of managing the flow of merchandise from
the source of the supply to the customer – from the producer/manufacturer,
wholesaler/intermediary through to the warehouse, transport to the retail units until the
merchandise is sold and delivered to the customer. Adani’s store logistics system
incorporates the following functions.
PROMOTION
The store has quantified promotion objectives taking into consideration the:
Specified target audience;
Main communication points;
Responsibilities and tasks;
Period times for promotions
Thus the so-called SMART objectives are derived which will provide Specific,
Measurable, Actionable, Realistic and Timed results.
Before deciding and taking action on the objectives formed the following
considerations are taken into account:
1. The full range of available promotion methods and out of them which one or a
combination will be most suitable.
5. The customers and supplier’s attitude and behavior to the company and the brand.
Advertising
CONSUMER PREFERENCE ON GARMENT
The advertising media used for promotional purposes at present is only major
newspapers like Times of India and Gujarat Samachar. As a designing of advertisements
is concerned, they have their own in-house advertising agency named ‘Aashin’.
Apart from the advertisements in the newspapers, insertions of these ads are also put in
the newspapers, which are printed on high quality paper in four colours.
The store’s advertising is an institutional one, which sells the store as a pleasing
place to shop, which can be easily understood from their slogan, ‘Extra shopping
pleasure at no extra cost’.
No other media is being used presently, but considering the changes in the
situation of the economy and the market place they may go in for Internet as one of the
media for selling the merchandise they offer, online. But still e-shopping is a new concept
and is in its budding phase in India, so they think that people will take more time to
adjust to it and thus may think over it in the near future.
SALES PROMOTION
Currently they are giving the promotional scheme like 2 kg Sugar or Rasana
worth Rs. 60/- on every purchase worth Rs. 500/-.
Bapunagar store which they have recently acquired from the Radhe, they have
given the sales promotion like on the purchase of Rs 500/- you will get the tow tickets of
City Gold is free and on the purchase of Rs. 300/- one ticket is free of the City Gold
theater. Before one month back they have given the sales promotion like on the purchase
of Rs. 500/- customer will get either Nazarana Basmati Rice worth Rs. 60/- or Rasna
worth Rs. 60 free. And on the purchase of worth Rs. 300/- customer will get the Year
Fundoo Mug or Rasana worth Rs. 30 free.
Another sales promotion scheme they had followed before one month back is
customer will get the Assured Gift on the collection of 10 or more coupons. One coupon
for every purchase worth Rs. 100/-. [*****Refer Annexure]
Discounts Offered
5 Close- Up toothpaste red (150 gm) Neslte Kit-Kat worth Rs.6 free
11 Sunsilk sampoo (50 ml) Lipton ice tea worth Rs. 20 free
15 Mr. White detergent (3 kg) Mr. White soap worth Rs. 30 free
19 Kissan ketchup / sauce (1 kg) Lipton ice tea worth RS. 20 free
28 Cadbury bournvita (500 gm) Refile pack Cadbury perk worth RS. 5 free
The percentage of discount offered also depends on the expiry date of the
products purchased apart from the margins they get. For e.g., if the expiry date of any
product purchased from the manufacturer is very near then the purchase manager of
Adani demand more margins from them which is passed on to the customers and so on
such products the percentage of discount would be more as compared to other products
whose expiry date is quite away.
PEOPLE
There are around 60 to 80 employees or more than that in each store which
constitutes of both frontline and back stage staff.
Manager
The manager is responsible for all the floor activities of the store like
Assistant Manager
In some of the stores there is the Assistant manager who helps manager in maintaining
the floor activities.
Security Guard
To take care of the belongings of the customers by giving them a coin, which the
customers have to return back to him after shopping
To give the basket to the customers
Helpers
Verify the stock received and keep the stock to be displayed in front of the
respective wrecks and the extra stock in the storeroom.
Helping the customer by lifting the carry bags to their vehicle.
The role of the data entry operators in the Adani store is to enter the daily transaction of
outflows and inflows.
TRAINING
They are given training by some of the experience salesgirls and by the manager in areas
of product knowledge, company procedures and more importantly how to deal with
customers to ensure maximum satisfaction.
For the store managers the training is provided at store level as well as class room
training.
MOTIVATION
CONSUMER PREFERENCE ON GARMENT
The store manager arranges for a small treat for staff of the store bye offering
them ice cream, juice apart from regular cup-of tea.
If the salesgirls do something extra apart from their regular work then they will be
rewarded.
There is a contest for the best person of the store who will be rewarded.
There is also another contest for the best store, which will receive a trophy and
certificate of appraisal and dinner for the entire staff of that store.
PHYSICAL EVIDENCE
SIGNAGE
Internal: As far as the store’s internal signage are concerned, to promote the
schemes offered, various pamphlets are pasted on the walls, banners are hanged which
attract the attention of the customers. Also danglers of discounts offered on various
products are hanged above and on the respective wrecks.
DRESS CODE
Salesgirls: - Blue apron with a badge of Adani on left. Each sales girl has her own ID
card attached to a string which they wear daily depicting their identity as the sales girls of
that store.
PROCESS
There is either two or one way to enter the store. But there is no fixed way to
enter or exit the store, i.e., the customers can enter or exit from any side they prefer.
If we look into the process as to how a customer enters the store, visit it and at last
exits, the normal steps a particular customer has to follow are summarized below:
There is some parking space in front of the store where the customer can park
his/her vehicle. A security guard sits in front of the store at the entrance wherein the
customer has to keep his/her belongings before entering in the store. He will give the
customer a plastic coin bearing a number, which the customer has to keep with him/her
until he/she finishes shopping.
As the customer enters the store he/she will find a counter on either side of the
one or two ways.
On the one side counter a person is found making entries in the computer
regarding the inventories received and on the another side counter a sales girl is found
preparing bills of the customers who have already shopped, in short it is a billing counter.
Say if we consider that the customer enters the store he/ she will find various
product categories arranged in a sequence, wherein first comes drinks/juices followed by
bakery products, breakfast, tea & coffee, biscuits and so on.
It is seen to it that the sequence of the product categories is constant in any Adani
outlet as far as possible but may differ depending on the store layout of each.
One thing taken care of is that certain product categories that are altogether used
for a different purpose are kept apart from each other. For e.g., any food products
category is kept totally away from the categories like detergents, bathing soaps,
shampoos, lady care, etc.
The wrecks are arranged in a circular plan wherein the necessary items of like that
of grocery are displayed in the wrecks in the back end of the store thereby making the
customer walk through every part of the store.
The customer moves further the display of tea & coffee, biscuits, grocery items,
etc. starts and as he/she moves to in each of the store they find in-store merchandise to
keep extra stocks.
Here the customer finds the helpers keeping the extra stock in that small room. As
the customer moves further he/she will find the product categories displayed like that of
detergents, lady care, baby care, dental care, home remedies, etc. and thus by taking this
circular move he/she again reaches to those steps from where he/she came to the back
end and now moves again to the front end.
CONSUMER PREFERENCE ON GARMENT
As the customer visits the store in the front they found a refrigerator is kept to
chill some products like butter, cheese, chocolates, juices, cold drinks, etc.
Further the customer will find the categories like disposables, jams & pickles, dry
fruits, instant food, etc. Here in between a small steel wreck is displayed wherein only
wafers of various brands like Ruffles Lays, Balaji, etc. are kept.
In his/her whole visit of the store the customer comes across the sales girls, who
are found near every wreck and are ready to guide, wherever required. They help the
customer by bringing the basket/trolley if they see him/her carrying various products in
hands and also help in carrying some of the heavy products like Ghee & Oil tins to the
billing counter, which could not be easily carried by the customer while shopping for
other items.
At last the customer reaches the billing counter. At the counter the sales girl in
charge of that counter on that particular day first of all empties all the products purchased
by the customer, from the basket and then scans them one by one through a hand barcode
scanner. This automatically enters the relevant data of the products purchased in the
computer, which includes the name of the product purchased, product code, number of
items of each product, amount of each product and in the end the total amount to be paid
by the customer.
By the time the sales girl scans the products, a helper standing near the counter
goes on keeping the products scanned in the carry bag
Then as the customer pays the amount the sales girl types the amount received
and then automatically the exchange amount is displayed on the screen, if there is any,
which the sales girl returns back to the customer. Payment can also be done via Visa &
Credit cards. The store accepts all the major cards.
After all the data is fed into the computer bill is printed. The same bill is printed
twice in one page, which the sales girl tears and makes two parts out of which one is
handed over to the customer and the other one is kept with the sales girl to make further
entries on the total of sales on that particular day.
After the billing transaction is over the sales girl says ‘Thank You’ to the customer
with a smiling face. Here again the helper if required helps in carrying the bag/s near the
customer’s vehicle.
At this stage the customer moves out of the store, probably from the way near the
billing counter where he/she has to return the coin back to the customers to take their
belongings.
CONSUMER PREFERENCE ON GARMENT
STRENGTH
WEAKNESSES
Currently they have opened their retail chain in one state [Gujarat] only.
Only focusing on branded product, may fail to attract the customer base that are
not brand conscious.
OPPORTUNITIES
It can encash on the Brand and goodwill it enjoys today to expand throughout the
state and then country and then Global
It can leverage on pricing with expansion by taking advantage of volume
purchases.
It can cater to growing middle-class/ upper middle class customers where
purchasing habits have shifted to one stop shopping.
CONSUMER PREFERENCE ON GARMENT
With its network it can add a wide product range including fast foods to the
current product range to give a wider choice to the customers.
THREATS
It has to be on the watch as large corporate may enter / are entering the retail
arena.
It could also face increased competition from the existing smaller chains and local
stores.
5. RETAILING
“Retailing consists of those business activities, which are involved, in the sale of goods or
services to consumers for their personal, family or household use.” It is the final stage in
the distribution process for goods and services from manufacturers to final consumers
Retailing involves
Retailing differs from marketing in the sense that it refers to only those activities,
which are related to marketing goods and/or services to final consumers for personal,
family or household use. Whereas marketing, according to American Marketing
Association, refers to "the process of planning and executing the conception, pricing,
CONSUMER PREFERENCE ON GARMENT
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational objectives."
Retailing differs from marketing in the sense that it refers to only those activities,
which are related to marketing goods and/or services to final consumers for personal,
family or household use. Whereas marketing, according to American Marketing
Association, refers to "the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchange that satisfies
individual and organizational objectives."
Figure 2 depicts consumer service as the crux of the whole activity. The
implementation of such a retail strategy mix benefits consumers and producers and yields
economic utility.
Product BrandingPrice
Packaging Cost of goods
Product DesignBusiness Expenses
Assortment Gross Margin
Services Profit
Promotion
Distribution
Advertising
Logistics
Personal Selling
Store Location
Sales Promotion
Site Evaluation
Public Relations
Transportation
Visual
Storage of goods
Merchandising
The implementation of such a retail strategy mix benefits consumers and producers and
yields economic utility.
CONSUMER PREFERENCE ON GARMENT
The first point under retailing benefits for customers, bulk breaking refers to the
act of retailers of buying goods in large quantities and then breaking them into smaller
sizes for their individual customers. As a result purchases become convenient for
customers - in terms of quantity bought as well as expenditures made.
The assorting function is nothing but evaluating all the different products
available and offering to the target the optimum array of products from which to choose.
The storing function performed by the retailers relieves customers of the task of
anticipating their desires too far in advance of their needs as the retailers keep goods in
inventory until customers are willing to buy and use them.
Further, retailers help manufacturers smoothen the production cycle by placing orders for
peak demands well in advance and by managing inventory even on behalf of the
manufacturer. They create economic utility for consumers by providing the products in
the form and at the place and time desired by the consumer.
CONSUMER PREFERENCE ON GARMENT
So far, it has been seen that retailing is a vital and involuntary action performed
by the living structure of the market economy (as opposed to the case in a barter
economy). In a barter economy, barter transactions take place between consumers
themselves. Consumers interact directly whereas in a centralized market economy,
transactions taking place at a larger scale (both in terms of volume and variety)
necessitate an interface between the manufacturers and final consumers. Hence we
reinforce the fact that retailing is not a new deal. This industry is extant as an interface
between production and consumption, from times immemorial, benefiting us - consumers
or producers in the various ways discussed above.
Today, the industry (in India) seems to be functioning somewhere between the
accelerated development and maturity stages, with high growth rates, intense competition
and moderate profitability.
Population size and age distribution determine what the retailers must be offering
and to which segment of the market, depending upon their goals. Further, factors like
average life expectancy, birth rate, marriage age, average number of children, family life
cycle define the requirements of the market and the firms (retailers) should act
accordingly. Applying the traditional family life cycle to retailers, thereby figuring out the
relevance of each stage in cycle for retailing, we have the following table:
Entire retailing market in India can be divided into traditional retail stores and
modern retail stores. While traditional retail stores form the unorganized segment of the
market modern stores are part of organized sector. Organized retail market can be further
categorized in four different ways:
An Unaffiliated or Independent
The retailer is one who owns and operates only one retail outlet. A family mostly
owns it with high dependence on the owner, thus affecting long run success and
employee morale. He is supposed to have a friendly personalized image and his offering
reflects his own tastes and preferences and to some extent those of his regular customers.
Kirana shops are very good examples of such retailers.
A chain retailer or corporate retail chain owns and operates multiple retail outlets
(store units) under common ownership. Most chains have well defined management
philosophies, which tend to be solid overall strategies. Consistent strategies with
reference to store hours, product assortment, prices, sales personal, promotion and other
policies must be maintained throughout all branches in order to project a particular image
of the chain. This calls for centralized decision making which in turn result in difficulties
for individual units in adapting to local needs of the target markets. There also exist
associations of independent retailers, which are formed in order to compete more
effectively with corporate chain stores. They enjoy the benefits of corporate chain while
still maintaining status of individual owners. These associations could be formed with
other retailers (known as co-operative chains), with sponsorship by a wholesaler (know
as voluntary chains) rather than by the retailer themselves or by franchise agreements
sponsored by manufacturers or distributors (known as dealers) or by service firms
(known as franchisees).
CONSUMER PREFERENCE ON GARMENT
A Franchise System
Moreover, franchisees, that are owners and not employees, have a greater
incentive to work hard than the owners (or caretakers) of retail units in other forms of
retail chain. Also to their advantage, they obtain SOPs and management skill from the
franchise. Further, they have support from co-representative to spot and solve any
problems.
Vertical Marketing System (VMS) comprises all the levels of business along a
channel of distribution. In an independent VMS, there are three levels of independently
owned businesses manufacturers, wholesalers and retailers. Such a system is most
beneficial if manufacturers and/or retailers are small, intensive distribution is sought and
customers are widely distributed.
Through a fully integrated VMS, a single firm performs all production and
distribution functions without the aid of any other firm. A fully integrated VMS enables a
firm to have total control over its strategy, to have direct contact with final consumers, to
have higher retail markups without raising prices (by eliminating channel members), to
be self-sufficient and not rely on others and to have exclusivity over the goods and
services offered.
Consumer Co-operatives
5.5.2 Based On Location, Target Market, Price, Offerings & Customer Services &
Competitors Challenges
There are several types of retailers whom we can divide based on location, target
market, price, offerings, and customer services and competitors challenges.
It concentrates on selling one goods or service line. That is the location may be a
business district, or shopping center. Concentrates on selective market segments with
very narrow width, extensive depth, and average to good quality. Generally the prices are
fixed at above average. The offerings are like apparel and accessories, toys, furniture etc.
Extensive sales force, knowledgeable sales personnel, good customer service policies are
the main assets of these stores. Competition will be determined according to the depth of
assortment and size of the store. Examples could be Walden and Odyssey at Hyderabad.
These are mostly self-service based and face a difficult time reacting to both price
rises by suppliers and price cuts by competitors because catalogs have to be printed in
advance in order to carry out business. Examples here could be tiles shops, sanitary ware
stores etc.
They are set up at business district, suburban shopping strip or can be an isolated
store. The targeted group is price conscious customers. The assortment is with moderate
width but poor depth; and average to good quality goods with low continuity prices. The
offerings are apparel and accessories, footwear, linen, fabrics, cosmetic, house wares.
They maintain limited sales force, no gift-wrapping, and extra charge for alterations. The
challenges are from other institutions formats due to discontinuity of merchandise and
insufficient customer service for some upscale shoppers. Examples here could be stores
in towns and city suburb stores.
Factory outlets
A Flea market
It has many retail vendors offering a range of products at discount prices in plain
surroundings. The location is an isolated site, racetrack, arena, parking lot, and stadiums.
The customers are lower class and the assortment is extensive width, poor depth, variable
quality, low continuity, with very low prices because the target group is low class. The
products are antiques, knick-knacks, used merchandise, new clothing, cosmetics,
watches, consumer electronics, hardware and gift items, self-service oriented and hardly
any competitors or challenges
CONSUMER PREFERENCE ON GARMENT
Based on the area covered by the store we can categorize retail stores as follow
Neighborhood stores
They have an area in the range of 100-500 sq. ft. and are most common of all;
these are present everywhere in every locality. These shops keep items pertaining to daily
use ranging from food and grocery to stationery etc.
They have an area ranging between 300-1,000 sq. ft. These stores are generally
specialty stores keeping only particular product category
They have area in the range of 500-2000 sq. ft. and these stores generally keep
grocery and other daily use items
Specialty stores
They have an area in the range of 5,000-50,000 sq. ft. and these keep items
pertaining to only one particular product category.
Shopping malls
They come at the top of this retail pyramid and it keeps products ranging all the
product categories.
CONSUMER PREFERENCE ON GARMENT
On the basis of product retailed we can categorize stores into various types. In
fact the categorization can be as vast as the number of product categories but taking into
account the importance of the product category we can divide these retail stores into
following types:
Food retailing stores can be further subdivided into fast food retailing stores, other
fresh foods stores and groceries stores and apparel stores can be sub-categorized into
women apparel, men apparel and children wear stores. Similarly we can do sub-
categorization in accordance with product categories and target segment.
Departmental stores
They are retail outlets that offer a number of products and a number of brands
under one roof. That is the entire store is divided in to a number of departments with each
department offering one category of products. These stores offer everything except
grocery products.
Super Market
It can be sub categorized into two: one Electronic Goods stores and Book and
Music Stores
Franchisee Stores
Apparel stores
Watches Stores
Jewellery stores
5.5.6 On The Basis Of Readiness For Riding The Expected Retail Boom
The organized sector of retailing can also be categorized on the basis of their
readiness for off take to participate in the boom into three types:
Ready to Go
Those retail categories, which have all inputs in place and all development for the
sector to take off has taken place.
These are the retail categories, which are waiting for the regulatory permission to
take off.
The following highlights the areas where retailer finds a ways to make difference –
increasing growth and profitability in the face of intensifying competition and more
discerning customers.
o Entry-level
Visual merchandising which stimulates rates of sale and reflects customer behavior.
Selective promotions and markdowns which suit both customer and retailer needs.
CONSUMER PREFERENCE ON GARMENT
Talented staff creates value when focused on customers, product innovation and
competitive differentiation, rather than mundane activities. Supply-chain skills are
better applied to improved forecasting and closer supplier integration, rather than to
firefighting and delivery glitches.
As in many other areas, 80% of the benefits derive form 20% of investment. A
business objective-driven approach, coupled with an understanding of the potential
of information technology, ensures investments are commensurate with financial
returns and not a blank cheque.
Benefits include faster and more effective range evolution, enhanced customer
service and lower supply-chain costs through stock reduction and operating savings.
Retailers who innovate create greater shareholder value, particularly from own-label
where they can capture and retain that value. Growth and profitability depends on
performance at each stage of the own-label product development process. One weak
link in the chain and benefits might be hard to realize.
Yet many retailers lack transparency of performance at each stage. This level of
understanding is necessary not just to enable process improvements, but also to
configure the systems investments which drive and support process change.
The benefits are greater speed-to-market, higher ‘hit-rates’ [e.g. twice as many
successes from 30% fewer products launched], lower development costs
[improvements of 100% or more are not uncommon] and reduced product costs
[typically 5-15%].
CONSUMER PREFERENCE ON GARMENT
Retailers are faced with the growing power of branded suppliers and their options to
maximize revenue and minimize costs from brands are more restricted than from
own labels,
Understand the dynamics of the market and the performance of the branded suppliers
versus other brands and own-label.
Develop alternative retail brand-mix strategies for allocating space to different brands
to maximize shelf profitability.
o Win/win strategies:
SPO is applicable to both food and non-food retailers. The financial benefit or SPO
can be net-profit improvements form 2% to 4% for food categories, and 3% to 6%
for home and fashion categories, in addition to higher revenue growth for both the
parties.
The benefits of tailoring the catalogue and other marketing variables to match
variations in local customer and competitive profile are intuitively obvious. Yet,
many retailers have been disappointed with their attempts at store clustering, having
become mired in complexity.
The art and science of successful clustering lies in identifying two or three key
variables which differentiate store performance and using them to crate distinct store
groupings, around which concrete actions can be taken:
Refining the existing product allocation process with pragmatic clustering ensures that
the right product is merchandised in the right store, thus satisfying unfulfilled demand
CONSUMER PREFERENCE ON GARMENT
Redesigning in-store layouts to match the local customer profile emphasizes the
appropriate product for that cluster.
Tailoring local promotions and window-line activity ensures that spend on these
activities is optimized, whilst attracting new customers.
Retailers are largely in control of their own destiny. Roughly 70% of the problem is
within the retailer’s own supply-chain. However, availability touches on every aspect
of the retailer’s supply chain and its relationship with suppliers – there is rarely one
simple answer and an 80/20 approach is needed:
Foot cause analysis to identify high potential areas and priorities improvement actions
A systematic programme to improve planning and execution both centrally and in-
store:
o Promotions management
Market share gains and increased operating profits, return on capital and total
shareholder returns are the rewards for retailers with loyal customers, particularly
when those customers are high spenders on high margin products.
The key is to convert customers from brand awareness to true brand loyalty.
Consistent design and optimization of the customer experience [touch points etc,]
A high-value customer is worth between 10-20 times an average one to the retailer.
The goal is to capture high-value customers before your competitor does. The prize
is market leadership and superior margins and/or growth – think Wal-Mart, Tesco, or
the “new generation” of New Look, Zara, and others.
How do we increase a supplier’s capacity utilization and what would be the effect on
average costs?
What investments would be necessary for the supplier to grow its business with us?
Retailing is following a path that other industries have already trodden. Cost
transparency in the automotive industry has driven supplier consolidation, incentives
suppliers to invest strategically, re-allocated responsibilities for product development
CONSUMER PREFERENCE ON GARMENT
The same path is inevitable in retail. Retailers who are quick adopt and work
with suppliers will gain edge on their competition.
There does not appear to be easily transportable winning format or means of entry
for retailers investing in new markets. Two out of three retailers fail to meet their
initial targets when entering other countries.
A.T.Kearney’s Global retail index helps retailers priorities where to expand and how
to do it successful:
Retailer who appropriately time entry and tailor local operations are twice as fast to
break-even.
SUPPLIERS
IDEA GENERATION
PROJECT BRIEF
SAMPLES
RANGE PALNNING
PRODUCTION SAMPLES
CONSUMER PANEL
PACKAGING
CONSUMER PREFERENCE ON GARMENT
In a bid to provide a guideline to those who might be considering starting a new retail
business, we present a checklist to be followed by them:
Decide the level of funds you will need to get started and to get through the first
year and where they will come from. (Refer to table 3 in Annexure 8 for a
guideline on the same.)
Determine the first year profit and return on investment.
Project monthly cash flow and profit-and-loss statements for the first two years.
Find out the amount of sales needed to breakeven in the time you stipulate.
Decide upon the contingency plan if these sales are not reached in the specified
time period.
Describe your personnel plan (hats to wear), organizational plan and policies.
Outline your inventory and accounting systems.
Note your insurance plans.
CONSUMER PREFERENCE ON GARMENT
Specify how day-to-day operations would be conducted for each aspect of your
strategy. Lay down clearly the dos and don'ts for each aspect.
Review the risks you face and how you plan to cope with them.
domestic market in their countries. With the robust of economic experiencing sustaining growth.
India is proving to be irrestible temptation to the companies looking to expand their scope of
operations. With government showing proclivity in allowing FDI high and grocery retailing, the idea
of permitting FDI in the Indian retail sector is slowly gaining momentum. An analysis on the various
aspects of permitting FDI in the Indian retail sector is presented below.
There are definitely strong case for permitting FDI in retailing inn India. At present , industry player s as
well as the government is in sync to take this crucial an vital step, which would pave way to a structured
retail industry in India. The critical analysis of Indian retailing industry is as follows :
Change in competition landscape : A study by AT Kearney on global retailing trends reports that
India is the least competitive and least saturated of all major global markets.
One definite advantage of FDI inflow in retailing would be an increase in competition. FDI can
be a powerful catalyst to spur competition in this industry, due to the current scenario of low
competition and poor productivity. Competition is the key diffusion FDI –introduces innovation
across Indian retailing. Competition also critical for ensuring that the economic benefits from
improved productivity are passed on to consumers through lower prices.
Supply chain improvement: Retailing is a front hand industry. Therefore, FDI investment
would drive the growth in the entire supply chain. For example, McDonald’s and Metro set up
their own supply chain when they entered India by adopting international standard for their Indian
supply chain.
Investment in Technology: Technology in India retailing is still at a nascent stage.
Widespread use of barcode readers and computerisation of records at retail outlets is the only
visible barometer of the advancement in technology. Foreigner retailers currently own most cold-
chain in retail industry. The allowing of the FDI in the retail would help in introducing state-of-art
retail technologies such as advanced inventory management systems into the market.
Manpower and skill development: Currently retail is ‘non-glamour’ industry in India. Also
there is no specific curriculum available for training people in retail skills. Recently pantaloons
retail India has tied up with welingkers Management Institute to offer a programme on retail skills.
Allowing foreign investment would therefore ensure a greater flow of retailing talent into retailing
industry in India. the international shopping community and have acted as major drivers of
shipping community and have acted as major driver of tourism growth in these cities.
Tourism development: One lesson has been observed from the growth of Dubai and Singapore
has been that a strong retailing sector can prove to be major boost to the tourism industry. The
consumer electronics retailing in Singapore and gold retailing in Dubai are extremely popular in
the international shopping community and have acted as major driver of tourism growth in these
cities.
Greater sourcing from India: Once foreign players setup their base in India; they would
also start increasing in the level of their sourcing from India. A point in case of Wal-Mart’s
sourcing from china grew by almost five rime after was allowed in China and Wal-Mart was
permitted to setup its base. A similar trend can happen here too.
Up-gradation in agriculture:
A long term benefit of FDI in food retailing would be the transfer of globle best practisis
to the Indian farmer McDonald’s and metros already have agronomistics in there team
CONSUMER PREFERENCE ON GARMENT
who work with the farmers and educate them on model practices in India to, ITC has
been working on similar initiative infect, ITC has gone a step ahead and set up Chaupals
(village marts), where villagers can pick-up grocery as well as other house hold item in a
more organize manner.
Efficient small and medium scale industries: A huge part of retailing comes
from small and medium scale industries, especially in the food processing sector.
Permitting FDI in retailing would create a drive towards efficiency in the related
back-end small and medium scale industries.
Growth in market size: Introduction of foreign investment is likely to be
accompanied by a huge explosion in the whole sector due to the greater spending
power and data shopping experience.
Greater productivity: A combination of competition, industry status, better
skills, greater scale, modern technology and better upstream processes, would
result in a huge productivity growth in this sector.
Benefits to government: There are several benefits to the government. They can
be broadly classified into three categories:
Greater GDP: Retailing currently contributes to almost 10 percent of the
Indian GDP and is the largest private industry. Therefore, growth in
retailing is vital if the Indian government seeks to achieve the 8-10 percent
GDP growth.
Greater tax income: Allowing FDI in retail implies a growth in modern
formals. Tax collection from modern formal stores is much easier from
organized retail sector. Also, the implementation of VAT would be much
easier. Modern retailing formats would also create a new set of income tax
paying population, in the form of the skilled labor force that would be
employed in the modern format stores. This would help in increasing the
total tax revenues to the Indian government.
Huge employment generation: Retailing generates almost 8% of the total
employment in this country. But this is still less than the 12% figure seen
in the US and other countries where retailing is sufficiently modernized.
Even as governments in emerging markets dole out lucrative incentives, many restrict the
way foreign companies operate in order to protect the local industry and to maximize
spillovers to the domestic economy. The most popular restrictions are local-content
CONSUMER PREFERENCE ON GARMENT
requirement which force foreign companies to purchase certain % of inputs locally and
joint-ventures requirements. All the local-contents requirements are now illegal under
world trade organization rules, developing countries find barriers generally tariffs on
components to restrict the way companies operate.
When joint ventures make economic and strategic sense, foreign players pursue
them. Local-market knowledge, after all, is crucial for success in service industries. In a
low-margin business such as retailing understanding the nuances of consumer preferences
and building reliable local supply and distribution networks make the difference between
success and failure, and foreign players operate at the disadvantage in this respect.
retailers. onslaught of
Would see foreign retailers.
several Help Indian
“Financially retailers in
innovative” organizing their
ventures with set-up for better
dummy investors standards.
and the like.
FDI Cap of 2006- Entry of major Emergence of
49% 2007 retailers Indian majors into
Partnership with retailers of
existing major reckoning.
Indian players Fostering
development of
Indian partners.
100% FDI Permitted Beyond Real testing Consolidation of
2007 ground for Indian the Indian retail
retailers industry into a
structured industry.
Metamorphosis of
Indian retailers into
global giants
were not shielded from foreign rivals. To promote competitive markets, developing
nations much reduce restrictions on foreign investment, lower import tariffs, streamline
the requirements for starting new businesses and encourage new market entrants.
consumer and the game is big v/s small or traditional v/s modern or organized v/s
unorganized or local v/s foreign.
Recommended CII policy
FDI should be gradually allowed first in relatively less sensitive sectors-
garments, lifestyle products, house ware, entertainment etc.
Alternative funding mechanisms and investment opportunities should be
considered like FII and VC in the primary market, in addition to FDI.
At least two to three years lead-time should be given to the Indian retail to
promote a level playing field for all
Promote FDI in tier II and less developed cities to focus on the thrust for
infrastructure growth.
Today, the question is not of whether “Indian should open”, FDI in retail can be leveraged
for incremental results in the sector with an India –specific approach keeping the
following points in considerations:
FDI should be opened in gradual phased manner thus allowing a lead-time for the
Indian retailers to create a level playing field for all. Hence, it will promote
competition and contribute to the growth of the Indian economy
Upgrade existing infrastructure and stimulate further development
Key initiatives that the government and the industry need to take together
Ensure that the opening of this sector to foreign players is a win-win for all
Ensure that Indian retail dynamics are very different from other countries. Since
though we learn form global experiences, we do not go all out to ‘copy global
models’.
Institutional Investors (FII) and Venture Capital (VC) firms should be legalized and
encouraged for investment in the primary market.
FII & VC firms are currently allowed to participate in the secondary market as
well as necessary finance to increase investment in India.
• NAVRANGPURA
CONSUMER PREFERENCE ON GARMENT
37 23
In
• BAPUNAGAR
27
16
As show in above pie chart of the Bapunagar for the age group of the customer 25 to 40 is
the range of the customer age group which is maximum in number so we can interpret that
25 to 40 is the age group of the potential customer.
• ISANPUR
6
25
19
As show in above pie chart of the Isanpur for the age group of the customer more than 40 is
the range of the customer age group which is maximum in number so we can interpret that
40< is the age group of the potential customer.
• VYASWADI
11
22
17
As show in above pie chart of the Vyaswadi for the age group of the customer more than 40
is the range of the customer age group which is maximum in number so we can interpret
that 40< is the age group of the potential customer in Vyaswadi.
CONSUMER PREFERENCE ON GARMENT
• NAVRANGPURA
OCCUPATION OF CUSTOMERS
13
31
27
29
As shown in the above pie chart of the occupation of potential customer business men
and the job person are maximum in the number and in female housewives are 27 which
also maximum in female category.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR
OCCCUPATION OF CUSTOMERS
9 5
15 21
As shown in the above pie chart of the occupation of potential customer business men are
maximum in the number and in female housewives are 15 which also maximum in
female category.
CONSUMER PREFERENCE ON GARMENT
• ISANPUR
OCCCUPATION OF CUSTOMERS
5 6
17
22
• VYASWADI
CONSUMER PREFERENCE ON GARMENT
OCCUPATION OF CUSTOMERS
6 7
20 17
Vyaswadi have 17 job person and 20 house wife. So job person and house wives are the
major occupation group customer for the hypermarket of garment.
CONSUMER PREFERENCE ON GARMENT
• NAVRANGPURA
FREQUENCY OF VISIT
7
16 31
46
WEEKLY FORTNIGHTLY
MONTHLY BI-MONTHY
Above data chart indicate that near about 50% customer visit
fortnightly and 31% visit weekly. In Navrangpura hyper market most
frequent time for customer visit is weekly and fortnightly by consumer from
the above chart.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR
FREQUENCY OF VISIT
6
16
9
19
WEEKLY FORTNIGHTLY
MONTHLY BI-MONTHY
• ISANPUR
FREQUENCY OF VISIT
3
8 17
22
WEEKLY FORTNIGHTLY
MONTHLY BI-MONTHY
• VYASWADI
FREQUENCY OF VISIT
3
15
14
18
WEEKLY FORTNIGHTLY
H ere
MONTHLY BI-MONTHY
most preferred fortnightly and still customer give equal preference in
weekly, fortnightly, and monthly.
• NAVRANGPURA
> 3 lakhs 12 16 22
TOTAL 50 50 100
INCOME GROUP
22 20
28 30
Navrangpura have 80% customer who has income more than lakhs and 22
have more than 3 lakhs.
• BAPUNAGAR
9 14
10
17
• ISANPUR
4
6
24
16
• VYASWADI
5
13
9
23
• NAVRANGPURA
24
SCOOTER
39
BIKE
CAR
19
Most of the customer have car which are 39 out of 100 and 24 have scooter.
Most consumer come with family.
CONSUMER PREFERENCE ON GARMENT
• NAVRANGPURA
28 SCOOTER
BIKE
45
CAR
8
28 have car and 45 have scooter, which have indication of average income
class.
• BAPUNAGAR
CONSUMER PREFERENCE ON GARMENT
8
SCOOTER
18
BIKE
CAR
13
In Isanpur most customers have scooter and bike. It shows the middle class
customer trend.
• BAPUNAGAR
CONSUMER PREFERENCE ON GARMENT
4
0 SCOOTER
BIKE
CAR
15
• ISANPUR
CONSUMER PREFERENCE ON GARMENT
3
3 SCOOTER
BIKE
CAR
19
• ISANPUR
5
SCOOTER
BIKE
0
CAR
14
• VYASWADI
CONSUMER PREFERENCE ON GARMENT
2
7 SCOOTER
BIKE
16 CAR
• VYASWADI
CONSUMER PREFERENCE ON GARMENT
3
0 SCOOTER
BIKE
CAR
12
• NAVRANGPURA
CONSUMER PREFERENCE ON GARMENT
20
15 OFFICE/FORM AL
CAUSAL/OUTING
10 PARTY /OCCASION
5 HOM E/LOUNGE
0
BRANDNAME
QUALITY
STYLE/PATTER
STITCHING
PRICE
COLOUR/PRIN
FABRIC
QUALITY
T
In all category fabric quality and style is given more preference. But
in formal 10 men preferred brand name.
• NAVRANGPURA
CONSUMER PREFERENCE ON GARMENT
25
20 OFFICE/FORM AL
15 CAUSAL/OUTING
10 PARTY /OCCASION
HOM E/LOUNGE
5
COLOUR/PRINT
STYLE/PATTERN/
VALUE ADDITION
FABRIC QUALITY
0
BRANDNAME
PRICE
VARIETY OF
CUT
In female Style, Pattern and Price are most given number ranking by
customer in garment buying.
• BAPUNAGAR
CONSUMER PREFERENCE ON GARMENT
16
14
12 OFFICE/FORM AL
10 CAUSAL/OUTING
8
6 PARTY /OCCASION
4 HOM E/LOUNGE
2
0
BRANDNAME
QUALITY
STYLE/PATTER
STITCHING
PRICE
COLOUR/PRIN
FABRIC
QUALITY
T
Fabric quality and stitching quality are first preference and in home cloths
price is the first criteria of buying.
• BAPUNAGAR
CONSUMER PREFERENCE ON GARMENT
16
14
12 OFFICE/FORM AL
10 CAUSAL/OUTING
8 PARTY /OCCASION
6
4 HOM E/LOUNGE
2
COLOUR/PRINT
STYLE/PATTERN/
VALUE ADDITION
FABRIC QUALITY
0
BRANDNAME
PRICE
VARIETY OF
CUT
As shown in the chart, we can clearly see that no women b formal shirts in
Bapunagar. And style and febrile quality are the two main criteria for buying
a garment.
• ISANPUR
CONSUMER PREFERENCE ON GARMENT
14
12 OFFICE/FORM AL
10
8 CAUSAL/OUTING
6 PARTY /OCCASION
4 HOM E/LOUNGE
2
0
BRANDNAME
QUALITY
STYLE/PATTER
STITCHING
PRICE
COLOUR/PRIN
FABRIC
QUALITY
T
Isanpur consumer buying criteria rely on style, fabric quality, and price. In
home stitching quality most preferred.
• ISANPUR
CONSUMER PREFERENCE ON GARMENT
14
12
10 OFFICE/FORM AL
8 CAUSAL/OUTING
6 PARTY /OCCASION
4 HOM E/LOUNGE
2
0
COLOUR/PRINT
VALUE ADDITION
STYLE/PATTERN/
FABRIC QUALITY
PRICE
BRANDNAME
VARIETY OF
CUT
No women buy formal shirts. Fabric quality and price are criteria of buying.
Brand is least proffered.
• VYASWADI
CONSUMER PREFERENCE ON GARMENT
14
12 OFFICE/FORM AL
10
8 CAUSAL/OUTING
6 PARTY /OCCASION
4 HOM E/LOUNGE
2
0
BRANDNAME
QUALITY
STYLE/PATTER
STITCHING
PRICE
COLOUR/PRIN
FABRIC
QUALITY
T
Vyaswadi people are considering first price and then fabric quality & style.
Brand and colour are least proffered.
• VYASWADI
CONSUMER PREFERENCE ON GARMENT
14
12
OFFICE/FORM AL
10
8 CAUSAL/OUTING
6 PARTY /OCCASION
4 HOM E/LOUNGE
2
0
COLOUR/PRINT
STYLE/PATTERN/
VALUE ADDITION
FABRIC QUALITY
PRICE
BRANDNAME
VARIETY OF
CUT
No female buy formal shirts. Fabric quality, stitching quality and price are
criteria of buying garments.
• NAVRANGAPURA (MALE)
Trouser(formal) 3 19 16 7 5 -
Trouser(Causal cotton) 2 23 19 4 2 -
Jeans Trouser - 7 24 13 6 -
Jacket - 3 19 28 - -
Sports Track 6 8 17 4 - -
Shorts/Half 20 27 3 - - -
Pent/Bermuda -
Kurta-Pajama - 7 11 16 6 -
/Sherwani
Blazer - - - - 27 19
Sweaters/Woolenwear 2 14 23 8 2 -
30
No. of Persons
25
20
15 100+
10
5 200+
0 400+
Trouser(Causal
Kurta-Pajama
Pent/Bermuda
Jacket
Jeans Trouser
CausalShirts/Par
Sports Track
Formalshirts
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Woole
Shorts/Half
600+
cotton)
ty wear
nwear
1200+
2000+
Item of Clothing
In Navrangpura average range of shirts are 200+ and 400+. In trouser also
350-600 are most preferred price range. In blazer most of customer is in the
range of 1200+ and second in 2000+ range.
• NAVRANGPURA (FEMALE)
CONSUMER PREFERENCE ON GARMENT
35 100+
30
25 200+
20
15 400+
10
5 600+
0
Track Pent
Capri/Half Pent
Jeans Trouser
Lehanga/Choli
Formalshirts
Tops/Party
Skirts(synthetic/
1200+
Kurta/Chudidar
Hipsters
T-shirts
Middy
Sarees
Nightwear
lycra/Ethetic)
Wear
Salwar-
2000+
ITEM OF CLOTHING
Navrangpura less female by formal shirts. In sarees, kurta & jeans the buy in
the range of 600+..
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR (MALE)
BAPUNAGAR (MALE)
ITEM OF CLOTHING 100+ 200+ 400+ 600+ 1200+ 2000+
Formalshirts 9 12 2 1 - -
T-shirts 11 7 4 3 - -
CausalShirts/Party wear 8 11 5 1 - -
Trouser(formal) 1 14 4 6 - -
Trouser(Causal cotton) 3 7 6 2 - -
Jeans Trouser 2 12 3 4 - -
Jacket - 11 3 2 - -
Sports Track 7 4 1 - - -
Shorts/Half 13 4 - - - -
Pent/Bermuda -
Kurta-Pajama - 10 6 3 1 -
/Sherwani
Blazer - - - - 8 3
Sweaters/Woolenwear - - - - - -
16
No. of Persons
14
12
10
8 100+
6
4 200+
2
0
400+
Trouser(Causal
Jacket
Kurta-Pajama
Pent/Bermuda
CausalShirts/Part
Jeans Trouser
Formalshirts
Sports Track
T-shirts
Trouser(formal)
Blazer
/Sherwani
Sweaters/Woole
Shorts/Half
600+
cotton)
y wear
nwear
1200+
2000+
Item of Clothing
Bapunagar male purchase in the range of most of the items in 200+. Blazer
purchased by less customer & that are in the range of 1200+.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR (FEMALE)
18 100+
16
14
12 200+
10
8 400+
6
4
2 600+
0
Track Pent
Capri/Half Pent
1200+
Jeans Trouser
Formalshirts
Tops/Party
Lehanga/Choli
Skirts(synthetic/
Middy
Kurta/Chudidar
T-shirts
Hipsters
Sarees
Nightwear
lycra/Ethetic)
Wear
2000+
Salwar-
ITEM OF CLOTHING
• ISANPUR (MALE)
CONSUMER PREFERENCE ON GARMENT
20
No. of Persons
15
10 100+
5 200+
0 400+
Trouser(Causal
Pent/Bermuda
Kurta-Pajama
CausalShirts/Part
Jacket
Formalshirts
Sports Track
Jeans Trouser
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Woole
Shorts/Half
600+
cotton)
y wear
nwear
1200+
2000+
Item of Clothing
As shown in above chart shorts and causal shirts are purchase by customer
in the range of 100+. Other items purchase b them in 200-400 range. So 200
to 400 is the completive price.
CONSUMER PREFERENCE ON GARMENT
• ISANPUR (FEMALE)
16 100+
14
12 200+
10
8
6 400+
4
2 600+
0
Track Pent
Capri/Half Pent
1200+
Jeans Trouser
Tops/Party
Skirts(synthetic/l
Lehanga/Choli
Formalshirts
Kurta/Chudidar
Middy
T-shirts
Hipsters
Sarees
Nightwear
ycra/Ethetic)
Wear
2000+
Salwar-
ITEM OF CLOTHING
• VYASWADI (MALE)
16
No. of Persons
14
12
10
8 100+
6
4 200+
2
0 400+
Trouser(Causal
Pent/Bermuda
Kurta-Pajama
Jacket
CausalShirts/Part
Jeans Trouser
Sports Track
Formalshirts
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Woole
Shorts/Half
600+
cotton)
y wear
nwear 1200+
2000+
Item of Clothing
As shown in the table most of the customer buy in the range of 200-400. In
jacket & Kurta the purchase in the range of 600+ which are five in number.
CONSUMER PREFERENCE ON GARMENT
• VYASWADI (FEMALE)
VYASWADI (FEMALE)
ITEM OF CLOTHING 100+ 200+ 400+ 600+ 1200+ 2000+
Formalshirts - 7 2 - - -
T-shirts 8 5 3 - - -
Tops/Party Wear 4 9 - - - -
Jeans Trouser - 11 6 - - -
Capri/Half Pent 5 3 - - - -
Hipsters - 3 1 - - -
Skirts(synthetic/lycra/Ethetic) 4 10 2 - - -
Track Pent 5 4 - - - -
Middy 3 8 - - - -
Salwar-Kurta/Chudidar 2 14 9 - - -
Sarees 4 7 8 6 - -
Lehanga/Choli - 5 2 3 - -
Nightwear 13 7 5 - - -
16 100+
14
12
10 200+
8
6 400+
4
2 600+
0
Track Pent
Capri/Half Pent
1200+
Jeans Trouser
Formalshirts
Tops/Party
Lehanga/Choli
Skirts(synthetic/l
Hipsters
Kurta/Chudidar
Middy
T-shirts
Sarees
Nightwear
ycra/Ethetic)
Wear
2000+
Salwar-
ITEM OF CLOTHING
• NAVRANGAPURA(MALE)
50
WORDROBE
40 1-3
30 4-6
20
10 6-9
0 10+
Trouser(Causal
Pent/Bermuda
CausalShirts/Pa
Jacket
Kurta-Pajama
Formalshirts
Sports Track
Jeans Trouser
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Wool
Shorts/Half
Don’t have
rty wear
cotton)
enwear
ITEM OF CLOTHING
In Navrangpura hyper market we find formal shirt, t-shirt, and jeans trouser
are the garment which are most consume by customer in word robe.
CONSUMER PREFERENCE ON GARMENT
• NAVRANGAPURA(FEMALE)
50
WORDROBR
40 1-3
30 4-6
20
10 6-9
0 10+
Track Pent
Capri/Half Pent
Tops/Party Wear
Jeans Trouser
Lehanga/Choli
Formalshirts
Skirts(synthetic/l
Kurta/Chudidar
T-shirts
Hipsters
Middy
Sarees
Nightwear
Don’t have
ycra/Ethetic)
Salwar-
ITEM OF CLOTHING
Formal shirts are less preferred by female. Sarees, jeans and salwar kurta are
maximum consume by customer in word robe. Which are about 46% and
86% of total.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR(MALE)
Don’t
ITEM OF CLOTHING 1-3 4-6 6-9 10+ have
Formalshirts 8 9 2 6 -
T-shirts 10 12 1 2 -
CausalShirts/Party wear 14 6 2 3 -
Trouser(formal) 9 8 6 2
Trouser(Causal cotton) 10 7 - 1 7
Jeans Trouser 16 5 - - 4
Jacket 16 - - - 9
Sports Track 11 1 - - 13
Shorts/Half 13 4 - - 8
Pent/Bermuda
Kurta-Pajama 17 2 - - 6
/Sherwani
Blazer 11 - - - 14
Sweaters/Woolenwear 17 8 - - -
20
WORDROBE
1-3
15
10 4-6
5 6-9
0 10+
Trouser(Causal
Pent/Bermuda
Kurta-Pajama
Jacket
CausalShirts/Pa
Jeans Trouser
Sports Track
Formalshirts
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Wool
Shorts/Half
Don’t have
rty wear
cotton)
enwear
ITEM OF CLOTHING
Formal shirt and casual shirts are the only items which are consumed by
customer in 10+ others are 2 or less than 2.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR (FEMALE)
Don’t
ITEM OF CLOTHING 1-3 4-6 6-9 10+ have
Formalshirts 8 5 - 2 12
T-shirts 7 4 3 - 9
Tops/Party Wear 12 6 - - 7
Jeans Trouser 13 7 - - 5
Capri/Half Pent 6 2 - - 17
Hipsters 4 - - - 21
Skirts(synthetic/lycra/Ethetic) 11 4 - - 10
Track Pent 5 2 - - 18
Middy 12 2 - - 11
Salwar-Kurta/Chudidar 4 17 - 2 2
Sarees 2 5 8 9 1
Lehanga/Choli 5 13 - - 7
Nightwear 19 4 - - 2
25
WORDROBR
20 1-3
15 4-6
10
5 6-9
0 10+
Track Pent
Capri/Half Pent
Jeans Trouser
Tops/Party Wear
Skirts(synthetic/l
Lehanga/Choli
Formalshirts
Middy
Kurta/Chudidar
Hipsters
T-shirts
Sarees
Nightwear
Don’t have
ycra/Ethetic)
Salwar-
ITEM OF CLOTHING
Sarees, salwar-kurta and formal shirts are the most consume item by female
but here still formal shirt is an exception because 12 do not have formal shirt
out of 25 and there is no one in 6 to 9 range.
CONSUMER PREFERENCE ON GARMENT
• ISANPUR (MALE)
25
WORDROBE
20 1-3
15 4-6
10
5 6-9
0 10+
Trouser(Causal
Pent/Bermuda
CausalShirts/Pa
Jacket
Kurta-Pajama
Jeans Trouser
Formalshirts
Sports Track
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Wool
Shorts/Half
Don’t have
rty wear
enwear
cotton)
ITEM OF CLOTHING
• ISANPUR (FEMALE)
20
WORDROBR
15 1-3
10 4-6
5 6-9
0 10+
Track Pent
Capri/Half Pent
Tops/Party Wear
Jeans Trouser
Skirts(synthetic/l
Formalshirts
Lehanga/Choli
Kurta/Chudidar
Middy
T-shirts
Hipsters
Sarees
Nightwear
Don’t have
ycra/Ethetic)
Salwar-
ITEM OF CLOTHING
Formal shirt, track pent and hipsters are least consume by customers and
most of consumer have garment in 1 to 3 range except sarees in which there
are 6 women 6 to 9 and 18 in 10+. So saree is the most consumable item b
consumer.
CONSUMER PREFERENCE ON GARMENT
• VYASWADI (MALE)
50
WORDROBE
40 1-3
30 4-6
20
10 6-9
0 10+
Trouser(Causal
Pent/Bermuda
CausalShirts/Pa
Jacket
Kurta-Pajama
Jeans Trouser
Formalshirts
Sports Track
Trouser(formal)
T-shirts
Blazer
/Sherwani
Sweaters/Wool
Shorts/Half
Don’t have
rty wear
cotton)
enwear
ITEM OF CLOTHING
Most of the
consumer has formal shirt and trouser in 6 to 9 and 10+ ranges.
CONSUMER PREFERENCE ON GARMENT
• VYASWADI (FEMALE)
25
WORDROBR
20 1-3
15 4-6
10
5 6-9
0 10+
Track Pent
Capri/Half Pent
Formalshirts
Tops/Party Wear
Jeans Trouser
Skirts(synthetic/l
Lehanga/Choli
Kurta/Chudidar
T-shirts
Hipsters
Middy
Sarees
Nightwear
Don’t have
ycra/Ethetic)
Salwar-
ITEM OF CLOTHING
• NAVRANGPURA(MALE)
Jacket 60 50 - -
50
Sports Track 37 - -
40 1-3
Shorts/Half 42 - -
30 4-6
Pent/Bermuda
20 6+
Kurta-Pajama
10
40 - -
/Sherwani 0
Blazer 39 7 a
-
a
s
k
r
et
n)
)
er
f
r
i
rts
se
al
ud
am
al
irt
ea
an
r
ac
ea
ck
to
az
rm
/H
Sweaters/Woolenwear 49 - -
sh
hi
ou
m
Tr
w
rw
ot
aj
Ja
nw
s
Bl
ts
al
( fo
er
ty
T-
he
-P
Tr
lc
ts
or
rm
le
/B
ar
or
rta
sa
/S
s
Sh
se
oo
nt
Fo
/P
an
Sp
au
Ku
ou
Pe
W
rts
Je
C
/
Tr
hi
rs
r(
te
lS
se
sa
ea
ou
au
Sw
Tr
C
Item of Clothing
50
45
40
35 1-3
30
25 4-6
20
15 6+
10
5
0
Skirts(synthetic/lycra/
Tops/Party Wear
Capri/Half Pent
Track Pent
Jeans Trouser
Lehanga/Choli
Formalshirts
Kurta/Chudidar
Hipsters
T-shirts
Middy
Nightwear
Sarees
Salwar-
Ethetic)
Item of Clothing
So salwar and sarees is most frequent buying product in a year with large
quantity
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR (MALE)
30
25
20 1-3
15 4-6
10 6+
5
0
a
a
s
k
r
n)
t
)
r
er
f
i
s
e
se
al
al
ud
am
ir t
ea
an
r
ac
i rt
ea
tto
ck
az
rm
H
sh
ou
m
sh
Tr
w
rw
j
/
nw
Ja
co
Pa
Bl
rts
al
( fo
er
ty
T-
he
Tr
rts
rm
le
t/B
-
o
ar
l
r
ta
sa
/S
s
Sh
se
oo
an
Fo
/P
r
n
Sp
au
Ku
ou
Pe
/W
r ts
Je
(C
Tr
hi
rs
r
te
lS
se
sa
ea
ou
au
Sw
Tr
C
Item of Clothing
As shown in above chart formal shirt and casual shirt are very much frequent
buying item in Bapunagar. Other products are in a range of 1 to 3 and 4 to 6
range.
CONSUMER PREFERENCE ON GARMENT
• BAPUNAGAR (FEMALE)
18
16
14
12 1-3
10
8 4-6
6 6+
4
2
0
Track Pent
Capri/Half Pent
Jeans Trouser
Tops/Party Wear
Lehanga/Choli
Formalshirts
Skirts(synthetic/lycra/
Kurta/Chudidar
Middy
T-shirts
Hipsters
Sarees
Nightwear
Salwar-
Ethetic)
Item of Clothing
In Bapunagar we find that 9+ female buy sarees more than 6 time out of 25
in a year. T-shirts and salwar are also there after frequent buying garment
product.
CONSUMER PREFERENCE ON GARMENT
• ISANPUR (MALE)
30
25
20 1-3
15 4-6
10 6+
5
0
a
a
s
k
er
n)
t
)
r
r
i
s
al
ud
am
al
ir t
ea
an
r
ze
ac
irt
ea
tto
us
ck
H
rm
sh
m
sh
a
Tr
w
rw
aj
/
w
Ja
ro
co
Bl
rts
al
fo
er
ty
-P
T-
he
n
rts
sT
rm
le
t/B
r(
ar
o
l
ta
sa
/S
se
Sh
o
oo
an
/P
Fo
r
n
Sp
au
Ku
ou
Pe
W
rts
Je
(C
/
Tr
hi
rs
r
lS
te
se
sa
ea
ou
au
Sw
Tr
C
Item of Clothing
In Isanpur formal shirts, trouser (both) are buying by man customer 6+ times
in a year. Other items are buying in1-3 range
CONSUMER PREFERENCE ON GARMENT
• ISANPUR (FEMALE)
20
18
16
14 1-3
12
10 4-6
8
6 6+
4
2
0
Track Pent
Capri/Half Pent
Tops/Party Wear
Jeans Trouser
Lehanga/Choli
Formalshirts
Skirts(synthetic/lycra/
Kurta/Chudidar
Middy
Hipsters
T-shirts
Sarees
Nightwear
Salwar-
Ethetic)
Item of Clothing
Most of the consumer buys the items in 1 to 3 ranges in a year. Saree is the
most demandable item in the customer.
VYASWADI (MALE)
CONSUMER PREFERENCE ON GARMENT
35
30
25 1-3
20
4-6
15
10 6+
5
0
a
a
s
k
er
n)
t
r
r
f
s
i
e
al
al
ud
am
ir t
ea
an
r
ac
ze
irt
ea
us
tto
ck
H
rm
sh
m
sh
Tr
a
w
rw
aj
/
w
Ja
ro
co
Bl
rts
al
fo
er
ty
T-
-P
he
n
rts
sT
rm
le
t/B
r(
ar
o
l
rta
sa
/S
se
Sh
o
oo
an
/P
Fo
n
Sp
au
Ku
ou
Pe
W
rts
Je
(C
/
Tr
hi
rs
r
S
te
se
al
ea
ou
s
au
Sw
Tr
C
Item of Clothing
Vyaswadi male buy almost ever item in a range of 1-3. Still in the cater agar
of trousers, jeans, and formal shirts buy by the .consumer in the range of
6+.
CONSUMER PREFERENCE ON GARMENT
• VYASWADI (FEMALE)
25
20
1-3
15
4-6
10
6+
5
0
Track Pent
Capri/Half Pent
Jeans Trouser
Tops/Party Wear
Lehanga/Choli
Formalshirts
Skirts(synthetic/lycra/
Kurta/Chudidar
Middy
Hipsters
T-shirts
Sarees
Nightwear
Salwar-
Ethetic)
Item of Clothing
In Vyaswadi fame purchase in the range of 1-3 and 4-6. No consumer buy in
the range 6+.
CONSUMER PREFERENCE ON GARMENT
• Fabric quality and style are general first criteria for buying.
Consumer give least preference to branding in garment
preference. Isanpur, Bapunagar, &Vyaswadi people are more
price conscious.
• Average amount in all the store is 200+ for shirts & 400+ in
trouser. Still Bapunagar, Insanpur & Vyaswadi consumer wants
range in 200-350.
CONSUMER SUGGETIONS
• Consumer asked for more variety in buy one, get one free
garments.
The respondent s may not give correct answers due to personal bias.
The sample size 250 is very limited. So, it is not possible to achieve 100%
accuracy in research.
The research is limited to Ahmedabad city only. So, it is also a limitation of a area
for appropriate analysis.
As, we are not expertise in this field, the result may not be as perfect as it should
be for company’s expectations.
CONSUMER PREFERENCE ON GARMENT
BIBLIOGRAPHY
WEBSITES:
(1) www.google.com
(2) www.stores.org
(3) www.adanigroup.com
(4) www.etretailbiz.com
(5) www.qestionpro.com
(6) www.indiainfoline.com
(7) www.indiatimes.com
MAGAZINES:
BOOKS:
NEWSPAPERS: