Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Prepared by,
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9.2 Demand Forecasting ................................................................................................................... 72
9.3 Manufacturing ............................................................................................................................ 76
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List of Figures
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List of Figures
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List of Graphs
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1. Executive Summary
1. Business Overview
Company Description and Business Model
The company is named Bridal Sutra and needs to be registered. The company
would be the sole owner of brands that will be launched under its name.
The proposition is to launch a brand named Bridal Sutra. Retail stores under this
brand name would be opened up at apt locations. The brand would exclusively
focus on bridal lingerie. The brand would differentiate itself from the other brands
in 3 aspects or pillars.
Current Status
Currently, the idea is limited to this proposal and needs investors to invest into it.
2. Market Opportunity
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Emphasis on right fit: Right fit is the most important factor in the minds of
customers.
Low importance of brand: Customers attribute very low importance to brand
during their purchase decisions.
Customization: No brand provides customization to customers.
Competitive Analysis
Most of the existing brands like La Senza and Triupmh do have lingerie that
they claim to be bridal, but it is limited to bras, panties and nightwear.
Most of the brands do not provide expert consultation and any advice
provided is mostly limited to sizes
No brand provides the option of customization
3. Market Solution
1. Product Offerings: The bridal products that have been made available to the
consumers have been very limited in variety. The consumers have not been
given many options and as such, they have not been exposed to the wide
expanse of products that exist in the bridal segment. Bridal sutra would
provide consumers with a wide expanse of product offerings, including those
that have not hit the retail space till now.
2. Consultation: In India, about 90% of the women wear wrong sizes. The
effects of this could be detrimental. This ignorance is prevalent because
customers are not aware. Therefore, Bridal Sutra believes that it is the
responsibility of the brand to educate the customers and help them in each
and every possible way. So, Bridal Sutra would provide consultation to
customers, which would not only be limited to sizes.
3. Customization: Bridal sutra would give its customers the option of
customizing their own lingerie. Since bridal lingerie is meant for special
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occasions, customers might want to get lingerie tailored to their own designs
and requirements.
5. The Market
The lingerie segment is divided into four segments: Economy, Middle, Premium and
Super Premium. Bridal Sutra as a brand would target the Premium and the
Super-premium segments. The combined market share of these two segments is
Rs. 9.22 billion. These two are the fastest growing segments with premium growing
at 32% and Super-premium growing at 56% annually. The primary target
customers are urban women in the age group of 20 to 40 years.
6. Management Team
Taranjeet Singh, CEO An MBA with 2 years of experience in the IT industry.
Sandhya Patil, CMO and COO An MBA with 2 years of experience in the IT
industry.
Arthi Kumar, CFO - An MBA with 2 years of experience in the Retail industry.
7. Financials
Year 1 Year 2 Year 3 Year 4 Year 5
Income 40,500,000 46,575,000 53,561,250 64,273,500 77,128,200
Expenditure 24,992,610 26,091,881 27,493,974 28,818,066 30,328,980
Profit before Int
(4,742,610) (475,631) 4,642,776 12,959,709 23,660,760
and Tax
Interest 150,000 150,000 150,000 150,000 150,000
Tax - - 1,362,833 3,857,913 7,068,228
Profit After Tax (4,842,610) (575,631) 3,179,943 9,001,796 16,492,532
All figures are in INR
We expect to breakeven in the 2 to 3 years of operation.
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8. Funding Requirements
We would require Rs. 8.5 Crores as the initial investment.
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2. Introduction
The Indian lingerie industry, at the moment, is seeing a growth that is unparalleled. It
has undergone a transformational change in the past few years due to availability of
brands, changing technology, changing consumer behavior and increased awareness.
The Indian lingerie market is growing at a high rate of 24% and is sized at Rs. 56.28 bn.
In fact, as will be seen later, a few segments within the industry are growing at
staggering rates of over 50%.
Lingerie is one of the most understated parts of a womans attire. If chosen and worn
properly, lingerie can bring out a look in her that she deserves. The Indian woman of
today is bolder when it comes to aspirations. She is now choosy and has started giving
importance to lingerie. This has been fostered by the changing social structure. The
Indian society is in the midst of a makeover. The western influence is shaping todays
modern women. More and more women are now working, which has increased their
disposable income. Women are now not hesitant to spend on lingerie that is
comfortable and appealing. This change has also been bolstered by the changing dress
codes. The dress codes demand women to select lingerie that shapes their look, which
essentially then boosts their confidence.
However, amidst this growth, there is one section or segment that has been neglected.
It is the section of bridal lingerie. In fact, the research shows that there is no segment
called bridal lingerie available in Indian retail lingerie.
Bridal lingerie is lingerie that is sensuous and is meant for special occasions like
weddings, anniversaries, birthdays etc., but is not limited to these occasions and can be
used in daily life. Whatever be the reason, women of today are increasingly aware of
the concept of bridal lingerie, which is very prevalent in the west, but have not been
given the required avenues in the Indian retail space. Most of the Indian women have
aspirations to look their best for the mentioned occasions and if the market cant provide
them with the required products, then it is a failure of the lingerie industry.
Also, among women, extreme ignorance prevails when they make their lingerie
decisions. Being ignorant, most of the women dont know their correct sizes and buy
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lingerie that is uncomfortable and unappealing. In fact the ignorance is widespread
across the globe. As per a research, 80% of the women in USA wear the wrong bra size
while for India, the numbers stand at a disappointing 90%. These are huge numbers
and, as will be explained later, the repercussions of this ignorance could be detrimental.
So, bearing this in mind, the report details out the proposition to address the needs
mentioned.
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3. Category Description
3.1 Business Concept
The proposition is to launch a brand named Bridal Sutra. Retail stores under this brand
name would be opened up at apt locations. The brand would exclusively focus on bridal
lingerie. As will be seen in the next section on business need, there is no brand in the
Indian retail space that focuses exclusively on bridal lingerie. The brand would offer a
wide expanse of products that have not been offered to the Indian women. The brand
would differentiate itself from the other brands in 3 aspects or pillars.
Product Offerings: The bridal products that have been made available to the
consumers have been very limited in variety. The consumers have not been
given many options and as such, they have not been exposed to the wide
expanse of products that exist in the bridal segment. Bridal Sutra would provide
consumers with a wide expanse of product offerings, including those that have
not hit the retail space till now. The product offerings are detailed out in the next
section 5.4.
Consultation: As stated earlier, there is extreme ignorance persisting amongst
women when it comes to wearing the right sizes. In India, about 90% of the
women wear wrong sizes. The effects of this could be detrimental. This
ignorance is prevalent because customers are not aware. Therefore, Bridal Sutra
believes that it is the responsibility of the brand to educate the customers and
help them in each and every possible way in their decision making. So, Bridal
Sutra would provide consultation to customers, which would not only be limited to
sizes. Experts would be hired to assist customers on:
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Sizes
Effects of wearing wrong sizes
Which designs to choose
Which product to go for based on occasion
Customization: Bridal Sutra would give its customers the option of customizing
their own lingerie. Since bridal lingerie is meant for special occasions, customers
might want to get lingerie tailored to their own designs and requirements. Bridal
Sutra would embrace such customers and provide them with all the
customization options that would make all their occasions graceful.
Vision: Celebrate femininity like never before by making an Indian woman look and feel
her best in her most intimate moments
Mission: To establish a dedicated bridal lingerie segment in the Indian lingerie space in
the next 2 years.
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a wide range of products. The brand would be poised as a brand that consumers could
relate with. The figure below shows the value proposition.
As seen above, the value proposition runs through the 3 pillars of the business concept:
Product Offering: The products offered would cover all the important occasions
of a womans life like wedding, honeymoon, anniversary, birthday etc.
Consultation: Women would be provided with all the consultation needed to
improve their lingerie decisions
Customization: Women would be provided the flexibility to customize their
lingerie, i.e. make their own lingerie as per their needs.
We provide the Indian woman with lingerie that will satisfy her beyond the
everyday needs. She will wear it to please herself and her partner. She will be
comfortable looking stunning in the lingerie. Just like gowns, dresses and sarees
which are bought by the Indian woman for special occasions. Our lingerie will be
sought out by her for her special occasions like the wedding night, honeymoon,
birthdays, anniversaries, etc. We will have a wide range of lingerie products from
sensuous bras and panties to sensuous theme wear lingerie.
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Highly trained professionals will help her in her buying decisions. Right from the
time she enters the store she will feel pampered and stimulated by the wide
variety of offerings at her disposal. The customization provided will increase her
involvement with the brand and provide her options she has been looking for.
Customers
Shopkeepers
Designers
Manufacturers
Looking at the Vision and Mission, research objectives were laid down. The objectives
varied for the 4 research targets identified. The objectives for each were:
Customers
To assess the awareness of bridal lingerie
To assess the availability of bridal lingerie in the market
To assess the brands selling bridal lingerie in the market
The amount spent on lingerie
Are fitting sessions (consultation) helpful?
Is lingerie missing an Indian touch?
Shopkeepers
To assess the demand of bridal lingerie
To assess the availability of bridal lingerie in the market
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To assess the brands selling bridal lingerie in the market
To assess the amount spent on lingerie by customers
To assess the seasonality and behavior of customers
Is there a problem of sizes?
Is consultation being offered? If yes, is it helpful?
Is lingerie missing an Indian touch?
Is customization being provided?
To assess the costs of running a store
Designers
To assess the demand of bridal lingerie
To assess the availability of bridal lingerie in the market
To assess the brands selling bridal lingerie in the market
To assess the amount spent on lingerie by customers
To assess the seasonality and behavior of customers
Which designs are prevalent in the market?
Is there a problem of sizes?
Is lingerie missing an Indian touch?
How important are consultation and customization?
Manufacturers
To assess costs of setting up a plant
How is demand forecasted?
What is the raw material needed?
Is it technology dependent?
How is inventory managed?
What skill does the labour need?
Keeping the objectives in mind, the research was divided into two parts: Primary and
Secondary.
Primary
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Customers: A questionnaire was prepared addressing all the objectives laid down.
Primary Target: Married (29%) and Unmarried (71%) women in the age group of 20
years to 35 years
Responses: 200
Cities covered: Mumbai, Hyderabad, Kolkatta, Bangalore, New Delhi, Pune and
Chennai
Secondary
The secondary research comprised of reading articles, reports and browsing the
internet for pertinent information.
Throughout the report, findings from the primary research as well as secondary
research have been included.
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4. Market Analysis and Segmentation
The section starts with an analysis of the macro-environment using the PESTEL
analysis keeping the lingerie industry in mind. After the macro-environment analysis, the
section explains the lingerie industry value chain. It then introduces the key factors that
are going to shape the industry. Based on the key factors, the industry is analyzed using
the Porters Five Forces model. The section then, details out the market need for the
business concept presented in the previous section and finally introduces the critical
success factors based on the market need.
1. Political
India is the biggest democracy in the world. It is a federal republic. The political
situation in the India is more or less stable. Most of its democratic history, the federal
Government of India has been led by the Indian National Congress. State politics
has been dominated by several national parties including the INC. The Bharatiya
Janata Party (BJP), the Communist Party of India (CPI), and various regional parties
are the other major players on the Indian political scene. In the 2009 Indian
elections, the INC won the biggest number of Lok Sabha seats and formed a
government with an alliance called the United Progressive Alliance (UPA), supported
by various left-wing parties and members opposed to the BJP. Ideological inclination
of political parties, influence of party forums, civil society etc. creates a political
environment that promotes stability. In India, many political factors affect the
business environment. For example, Bangalore established itself as the most
important IT centre of India mainly because of political support. The two major
factors that affect industries are:
Privatization
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Privatization reduces the political interface in the management of enterprises,
leading to improved efficiency and productivity. India has adopted privatization in a
big way. Most of the publicly owned enterprises have now been privatized. For
example, a great part of the Indian Railways has been privatized which has
improved the quality of service to a great extent.
Deregulation
After the reforms of 1991, the Indian government adopted a policy of deregulation. It
has loosened its control on most industries which has helped the industries grow.
2. Economic
The economic factors a play vital role in any industry. They drive demand, costs,
prices and profits. The Indian economy has been pretty stable and has been growing
at a tremendous pace. More and more businesses are opening up every day and the
foreign investment has shot up tremendously over the past few years signaling the
strength of the economy. India has come up with economic development plans, the
main objectives of which are:
Initiate rapid economic growth to raise the standard of living, reduce
unemployment and poverty
Become self-reliant and set up a strong industrial base with emphasis on
heavy and basic industries
Reduce inequalities of income and wealth
Adopt a socialist pattern of development based on equality and prevent
exploitation of man by man
Under such a scenario, it becomes really easy for industries to thrive. To add to
lingerie industries advantage, as shown later, the retail sector has been growing at a
fast pace.
3. Social
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Social factors play huge role in the success of a business. India is a country of many
religions and cultures. The cultures are very diverse and this could pose to be a
problem for the lingerie industry. The message delivered by the lingerie industry has
to be done very carefully; otherwise the sentiments of people could get hurt. For
example the Tuff shoes ad which featured nude artists was a big set back to the
social circles and hampered the image of the brand.
On the bright side, the demographic changes are huge advantage to the lingerie
industry. The younger population is increasing and becoming more aware. Along
with this, the disposable income is increasing year on year.
4. Technological
Technology plays a vital role in any industry and India is moving at a fast pace when
it comes to technology. In the context of the lingerie industry, technology is
developing in an unimaginable way. Apart from innovations in products, fabric is also
being innovated on. There are microfibers that can make lingerie look invisible under
clothes. So, for players to survive, they have to keep pace with the change in
technology.
5. Environmental
India as a country has started giving a lot of importance to environmental concerns.
This has put a lot pressure on industries to adhere to good environmental practices.
The lingerie industry is no exception. Lingerie companies have embraced fair trade
policies and the use of organic cotton is topping the agenda. Companies have also
started using fabrics made from Bamboo which is much friendlier to the
environment.
6. Legal
Lingerie industry has to be very careful while advertising and positioning itself. There
is a thin line between promoting lingerie and erotic retailing. Companies must be
aware of this and must never cross this thin line. Erotic retailing is banned in India
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and is a punishable offence. Therefore, companies must advertise their products
appropriately and meaningfully.
The raw material network is responsible for providing the basic raw material that goes
into the making of lingerie. The network comprises of suppliers who supply the basic
raw material to the manufacturers of fabric. The basic raw material comprises of cotton,
wool, silk etc. for making the fiber. Other raw materials that are needed include pins and
plastic for straps.
Components Network
The components network comprises of textile companies that process the raw material
into fabric. These companies carry out a series of tasks like washing, spinning, weaving
dyeing etc. to manufacture the fabric. The different types of fabrics supplied are:
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Cotton
Chiffon
Muslin
Rayon
Satin
Spandex
Production Network
The production network comprises of companies who actually manufacture lingerie. The
manufactures could either be owned by lingerie brands or be those who receive periodic
orders from brands. The manufacturers receive all the raw material and manufacture
the lingerie. Once the lingerie has been manufactured, it is sent to the marketing
network.
Marketing Network
The marketing network comprises of the various brands that exist in the market. The
brands are responsible for marketing the products in the market. Apart from marketing,
the brands are made available to the customers through different stores like specialty
stores, department stores, Multi Brand Outlets (MBOs), Large Format Stores (LFSs)
and Hosiery Format Stores (HSFs). T
Customers
Finally, the value chain ends at the customer. Customers for lingerie are women and
they can buy the products from the various stores mentioned above.
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Consumers have shifted in 3 predominant ways:
There has been reduced price sensitivity. The women of today emphasize
more on comfort and quality. Price has taken a back seat in the minds of
women.
Women are more appreciative and responsive to branding. Earlier, women
were ignorant to brands, but now due to the arrival of international brands and
increased awareness, brand names are now gaining importance. Possibly,
the concept of brand equity is now shaping the lingerie industry. Lingerie has
now become brand and has slipped into the luxury bracket.
Women are showing readiness to experiment with new innovative styles and
designs. They are more open to the new products that are on offer. So, if new
innovative products are made available, women would not hesitate to try it
out.
Also, according to Crisil research, working women form 15% of the total urban
population, which is expected to rise to 20% by 2020. So, the retail spends are
going to increase because there is a lot of difference in the way a working
woman shops and a non-working woman shops. A working womans propensity
to spend is 1.3 times greater than that of a non-working woman.
Organized retail: Retail has become more organized and is covering up a major
part of the unorganized space year on year. The graph below shows the retail
consumption (organized and unorganized), which is expected to grow at a
compounded rate of 15% the next 5 years from Rs 23 trillion in 2011-12 to Rs 47
trillion in 2016-17.
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Graph 1: Retail Consumption
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Rising disposable income: The disposable income is rising day by day and
more and more women are now employed. Therefore, consumers have enough
disposable money to dictate their choices. The graph below shows that the share
of households with low income levels has fallen over the years, while the share of
those falling in higher income brackets is on the rise. Households with income
between Rs 1 lakh and Rs 5 lakh have grown at a CAGR of 9 per cent, while
those with income in the range of Rs 5 lakh and Rs 10 lakh have grown at CAGR
of 12 per cent between 2001-02 and 2010-11. Likewise households with income
over Rs 10 lakh have grown at a CAGR of 15 per cent during the same period.
100%
90% Households with income > Rs.
10 lakh
80%
70%
Households with income
60% between Rs. 5 lakh and Rs. 10
50% lakh
40% Households with income
30% between Rs. 1 lakh and Rs. 5
lakh
20%
Households with income <= Rs.
10%
1 lakh per annum
0%
2001-02 2004-05 2007-08 2009-10 2010-11 2011-12
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Graph 4: Population Split
100%
80%
0%
1990 1995 2000 2005 2010 2015
Along with this, the literacy rate amongst this age group is also increasing which
paves way for more disposable income in the future.
The factors clearly show that the industry is maturing and holds immense potential.
Many international brands have established their footing in the Indian market. The
international brands like Triumph and La Senza see India to be a market of huge
potential. These brands have already established themselves very well in the market
and have occupied a good share. So, the industry could see more international
brands entering the Indian market. The Indian market is very lucrative and with the
FDI regulations being relaxed, it is a lot easier for brands to make an entry.
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With the arrival of international brands, there are a lot Indian brands that have
surfaced in the past few years. Be it the Bwitch brand of Satya Paul or Beyouty
brand of Nischal Puri, many indigenous players are seeing it easy to enter the
lingerie market. This has been possible due to go the growth that the lingerie market
is seeing.
Also, it is easier to launch a brand in the market these days. The capital required to
launch a brand can easily be obtained through banks or investors. Launching is just
one part; manufacturing can easily be outsourced to plethora of manufacturers.
Therefore, the cost of setting up a plant can be avoided. And, since most the market
is unorganized, there is enough scope for new brands in the market.
I feel the market is so big that at least 2-3 more brands can be easily
accommodated in the space.
Mr. Nischal Puri, CEO, Brandis
Therefore, bearing the above points in minds, it is relatively easier for new entrants
to enter the market and launch brands. The barriers to entry are not that strong.
However if the entrant wants to set up a manufacturing plant, the barriers to entry
are higher. This is because setting up a plant would require a lot of initial capital and
infrastructure which might not be readily available.
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months on an average. And on a commoditized product, customers exercise less
bargaining power.
Therefore, bearing the above points in mind, the bargaining power of customers is
not that high. If theyre given products of good quality, they would happily buy
without much concern.
Raw Material
Manufacturer Brands
Supplier
Since the customers have become more quality conscious, there is some amount of
pressure on brands to provide quality products. This is passed on to the
manufacturers in the chain which then passes on to the raw material suppliers. Also,
brands are plenty in the market, but the required number of quality manufacturers is
not available in the industry. According to one of the manufacturers who were
interviewed Indian lingerie industry lacks quality manufactures. Therefore, the
bargaining power of suppliers is somewhat low and they would not be able to
survive if they lost they lost the business generated by the established brands.
4. Threat of substitutes:
Lingerie encompasses a wide range of products. This is an innerwear and as such
cant be substituted by any other product. In fact, if any other product is introduced
as an innerwear, itll fall under the category of lingerie. However, some people do
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think that bikini is a substitute to lingerie. But, bikini is very different from lingerie.
Lingerie is something that is more personal and cant be worn in public whereas
bikini can be worn in public. Hence, it is not an outright substitute.
5. Competitive Rivalry:
The lingerie market is divided into four segments:
Economy
Middle
Premium
Super Premium
The competition in the lingerie market is dependent on these four segments and
varies. The Economy segment is dominated by the unorganized and local players.
As such, brands dont concentrate much on this segment. This is the largest
segment with a market share of 62%. There are a lot of players and the competition
is not intense as the customer base is huge and there is hardly any branding. A few
brands that are a part of this segment are Daisy Dee, Juliet and Red Rose.
The Middle and Premium segments are dominated by national and organized
players. The market share of these two segments is 36%.These two segments are
growing at a past pace and customers of this segment are responding to branding
activities. Therefore, it is becoming important for companies to establish a name in
the market. There are a lot of players in the two segments and competition is pretty
intense, but the intensity off-shoots a little due to the huge customer base. A few
brands that are a part of these two segments are Daisy Dee, Juliet, Enamor,
Lovable, Amante, Beyouty and Marks & Spencer.
The Super Premium segment has been dominated mostly by the international
brands. The share of this segment is 2%. The international brands have captured
this segment very strongly. The biggest competitor in this segment is Triumph.
Other competitors in this segment are Bwitch, Marks & Spencer and La Senza.
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4.5 Market Need
This is section is dedicated to understanding the need for the business concept
explained in section 2.1. Throughout this section, findings from the primary and
secondary research have been used.
Bridal lingerie is lingerie that is sensuous and is meant for special occasions like
weddings and anniversaries. However, it is not restricted to such special occasions and
can be used in the daily life also. It is different from regular lingerie in the sense that it is
more sensuous and is tailored to specific occasions. According to mycamila.coms
dictionary, the definition of bridal lingerie is:
Type of bras, bustiers, corsets etc. characterized by sensual attributes (sheer fabric,
decorative flourish, racy silhouette) that are worn on wedding nights or for similarly
seductive situations.
As stated earlier, the women of today are more aware and are willing to experiment with
new products in the market. One of the questions that were asked in the questionnaire
revolved around assessing the awareness level of the respondents. The result is shown
in the pie-chart below.
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The above pie-chart shows that of the 200 respondents, 73% of the women are aware
of bridal lingerie and 27% are not at all aware. So, looking at the numbers, it is
suggestive that customers are aware of the concept of bridal lingerie.
A general notion that might come up here is that mostly, only married women would be
aware of bridal lingerie because their propensity to buy bridal lingerie is higher.
However this doesnt seem to be true. Statistically, there is a weak relationship between
marital status and awareness (Appendix 1). This suggests that, women are aware of
bridal lingerie irrespective of their marital status.
After having assessed the awareness level of the customers, it needed to be assessed
if bridal lingerie is available in the market. For this, insights from all the identified
research targets were taken into account.
The stores that were visited also have limited products available under the lacy range.
At Triumph, which is one of the toughest competitors, has a very limited range of
products. A very peculiar thing to note is that no brand advertises the lacy products as
bridal lingerie even during the wedding season which is meant to be the peak season.
The products are limited to bras and panties only, and to a certain extent, to
nightwear. This is only a very small part of bridal lingerie. Bridal lingerie encompasses a
wide range of products, which will be offered by Bridal Sutra, which will be explained in
section 5.4.
The survey also sought to understand the availability of bridal lingerie in the market from
the customers perspective. The result is shown in the pie-chart below.
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Graph 6: Bridal Lingerie Availability
The pie-chart shows that only 30% of the women think that bridal lingerie is available in
the market. The rest, 70%, say that either it is not at all available or they dont have any
idea if it is available. This is suggestive of the fact that industry has not been able to
convey the message of bridal lingerie to the customers, thereby which, a great chunk of
women either believe it is not available or have no idea if it is.
Another interesting thing to note is the relationship between the awareness level and
availability of bridal lingerie, according to the customers. Based on the data obtained,
statistically, there is only a moderately strong relationship between awareness level
and availability of bridal lingerie (Appendix 1). This suggests that, on a whole, women
who are aware of the bridal lingerie concept are not that aware of its availability. This
probably is due to the low promotional activities done by brands when it comes to bridal
lingerie or because bridal lingerie is not available in the market. Bridal Sutra aims to
make this relationship a strong relationship.
According to the survey, the graph below shows the brands that the respondents think
sell bridal lingerie. From the graph, it can be seen that according to the respondents, the
top 4 brands that sell bridal lingerie are La Senza, Enamor, Lovable and Triumph. A
look at their products would be suggestive of the fact if they actually sell bridal lingerie.
Most of the brands mentioned above have a very limited range of the so called bridal
lingerie. All the brands only offer bras, panties and nightwear as bridal lingerie which is
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also termed as lacy in Indias context. The variants across these are also very limited.
No brand has tried to increase its range of products when it comes to bridal lingerie.
Bridal Sutra has product offerings as one of its pillars and would differentiate itself from
the other brands by bringing in products to the market which have not been made
available to the customers. The product offerings are explained in section.
According to one of the manufacturers, out of the total lingerie sold annually, bridal
lingerie accounts for only 10%.
With the changing times, price has taken a backseat and right fit and quality have
become the major factors that decide the purchasing decisions of women. The survey
served to understand this by posing a question to respondents asking them to rate the
five factors of style, right fit, price, quality and brand on a scale of 1 to 5, 5 being the
most important. The result is shown in the graph below.
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Graph 8: Important Factors
As can be seen, 90% of the respondents think that right fit is the most important factor
and 80% also think that quality is another factor which is very important. This is
suggestive that right fit and quality dictate buying decisions. Another important point to
note is that price and brand are the least important factors in the minds of customers.
This suggests that price and brand do not play a major part in buying decisions.
Is consultation required?
As it had been stated earlier, in India around 90% of the women wear incorrect sizes.
This is a huge number and is very prevalent even amongst the educated class of
women. Women are extremely ignorant when it comes to knowing their correct sizes.
This could have repercussions that could be detrimental. A few outcomes of wearing
wrong sizes are:
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Comfort: Wearing the wrong size could lead to an uncomfortable experience.
Most of the women do not get their sizes measured and continue wearing sizes
that are incorrect, in spite being uncomfortable. This could lead to pain, stress
etc. during the daily life of a woman.
Risk of breast cancer: According to a very recent survey, breast cancer has
shown a link to breast size. Women with bigger breasts seem to be more prone
to breast cancer. Also, women who wear tight bras run the risk of breast cancer
because their lymphatic flow across the breasts is restricted and could give rise
to cancer causing cells. Most of the women are not aware of this relationship
between size and cancer and continue to wear tight bra because of the
ignorance.
Sagging of breasts: Wearing a very loose bra could lead to sagging of breasts
in a woman. The loose bra doesnt support the breasts and doesnt keep them
firm. This could affect the outlook of a woman and thereby take here confidence
down.
The above mentioned points are only a few concerns related to wearing wrong sizes.
Other factors that women are unaware of are:
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According to one of the designers, a woman should ideally get her size
measured once in every 3 months.
Choice of lingerie: According to Mr Nischal Puri, lingerie has slowly slipped into
the luxury segment. Women are giving it more importance, but women are not
aware of which lingerie to buy for which occasion. For instance, many women
buy the same regular lingerie for their wedding and honeymoon that they use in
the day to day life. Lingerie has a wide expanse of products and they differ with
occasions.
The survey had a part dedicated to this and the results throw more light on the above
points.
Firstly, the survey served to understand if women actually have had fitting sessions at
stores. The result is shown in the pie-chart below.
As can be seen, only 43% of the women have actually had their size measured. The
rest 57% have never got their size measured. This is a dismal number because all the
respondents are educated women most of whom are working.
Next, for those who have had a fitting session, the survey tried to find if the fitting
session was helpful. The result is shown below.
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Graph 10: Fitting session affects purchase
As can be seen, of the respondents who have had fitting session at stores, about 73%
think that the fitting session was very helpful in affecting their purchase decision. The
rest 27% think that the session was not much helpful. However, the results are
suggestive that fitting sessions are extremely helpful to customers.
The survey also tried to understand, of those who have had a fitting session, how often
they seek professional help for knowing the correct fitting. The result is shown below.
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The graph shows that of the women who have had fitting session, 40% of the women
prefer having their size measured whenever they make a purchase. Therefore, this
suggests that women need professional help while buying lingerie.
The survey shows the importance of professional help. It, now, had to be assessed how
brands are providing professional help. The stores that were visited do provide help to
customers, but it is only limited to fittings. Moreover, the personnel who assist the
customer are not experts, but salespersons who have been trained to measure sizes.
Also, brands do not proactively encourage customers to get their size measured. For
instance, Marks & Spencer puts up a small board in their but doesnt proactively ask
customers to get the size measured.
Bridal Sutra serves to provide customers the true consultation. The consultation would
not be limited just to sizes, but would include increasing the awareness of customers,
helping them with designs and assisting them in selecting lingerie. Moreover, fitting
plays key role in bridal lingerie and is extremely important to grace the occasions better.
Is customization required?
Here, customization means that a customer can get lingerie tailored to her need. For
instance, a woman might need a specific design but is not able to get so due to
unavailability in the market. This amounts to an unsatisfied customer. Customization
would encompass the following:
Size customization
Design customization
Of all the stores visited, no brand offers the option of customization to the customers.
Customization becomes extremely important in bridal lingerie because customers want
to look their best during the occasions.
Bridal Sutra would offer the option of customization to its customers. This would give
customers the flexibility to make their own lingerie for their own occasions. This would
very similar to how a boutique operates.
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4.6 Critical Success Factors
Based on the previous section on market need, the critical success factors for Bridal
Sutra would be:
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c) PREMIUM (Rs8.32bn growing at 32%)
As a brand, Bridal Sutra would target the Premium and the Super Premium
segments. The reason for this is that Bridal Sutra wants to be seen as a brand that
provides quality bridal lingerie to the upper and the upper-middle class. It is expected
that the major part of demand for bridal lingerie would surface from the two socio-
economic classes.
By targeting these segments, the market size that Bridal Sutra would be operational in
stands at Rs. 9.22 billion, which is 17.5% of the complete market. The two segments
are growing at a frenzied rate, way above the industry average. The premium segment
is growing at 32% and the super premium segment at 56%. These are huge numbers
and are suggestive of the fact that these segments are going to drive the lingerie market
in the future.
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5. Market Entry Strategy
The section defines the difference between lingerie and undergarments. We have then
analyzed the Indian market v/s the US and the UK market. With this background we go
forward and device a market entry strategy. Keeping our unique selling proposition in
mind we have listed down our objectives by the launch of our brand.
Then we go forward and give a phased plan to launch the company. This plan covers
all aspects of the launch from the marketing to the operational aspects.
Since the mid-1990s, women have had more choice in bra sizes; the focus has changed
from choosing bras in an average size to wearing bras that actually fit perfectly. In the
UK, for instance, the media is fuelling an awareness campaign about the need for each
woman to have a proper bra fitting before every purchase.
Lingerie has blossomed from a commodity into a fashion market segment with higher
margins than apparel, according to Citi analyst Nancy Marino. Younger woman want
style and value while older women want comfort and value.
Retailers are leading a major shift in the way women's intimate apparel is purchased.
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Growing demand for better service and shorter delivery times will play an increasingly
important role.
1. US Market
The lingerie market in USA is 10.9 billion. This is 30% of the total world lingerie
market. Hence USA is a big market for lingerie. It is now seeing growth rates of
5.3%.
Age Behaviour
Data suggests that older women purchase a bra for themselves once every four to
six months, while younger women are likely to purchase more frequently. Older
women are not exceedingly loyal to one particular store or channel when it comes to
shopping for bras. Three in four women report they shop at discount stores for bras
and over six in 10 shop at specialty stores.
Implications: The USA is a developed market for lingerie. This data shows how the
segment below 35 years is the brand conscious segment. We get both growth and
market share from the 25 35 segments. As we move on with our business case
you will see that the same segment with high disposable income is the target
segment in India.
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2. UK Market
The total UK Lingerie market is estimated to be $4.64 billion and is growing at 8%.
The corsetry sector recorded the largest increase by 19.2% to 1.16bn in 2010, and
remains the largest individual sector. Sales in this sector have been encouraged by
new innovations and consumers desire to achieve idealistic body shapes through
the use of shape wear.
Again this research shows how lingerie market in the UK is affected by media. The
times are changing where women have started accepting their sensuality and are
confident about it.
Implications: These international trends are expected to follow in India. The media
exposure, higher disposable income, the rising middle class and their aspiration
levels and the current growth rates make India and other developing nations (Brazil,
Russia, India and China) the perfect target market for the launch of lingerie.
3. Indian Market
The Indian Lingerie industry is witnessing robust growth, which is evident from the
entry of large international brands in India and available choices for the Indian
women. As said earlier, the key factors driving Indian lingerie market is the
increasing size of the organized retail, growing urbanization, growing consumer
class, increasing per capita disposable income and changing lifestyle.
The Indian lingerie segment enjoys a higher Average Selling Price (ASP) compared
to the men's innerwear market and this could be attributed to the rising disposable
income and growing preference for lifestyle products. The lingerie market grew at a
faster pace in terms of value as compared to volumes during 2006-2009.
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segments. In present situation, the premium and super premium segments of the
lingerie industry are advancing following a consumer shift from economy and mid-
market segment to the premium segment.
The inner wear industry has come a long way in India. From being un-organized and
conservative it has moved slowly to organized retail. The growth of this industry can be
attributed to the growing urbanization, growing consumer class, increasing per capita
disposable income and changing lifestyle.
So now with this change many International and National brands have started to
establish themselves in the Indian Market.
Some observations
1. Before 1995 there was hardly any organized retail of womans undergarments.
Today around 30% of womans undergarment sales is through organized retail.
Implication High untapped potential.....
2. The lingerie industry in India is seeing phenomenal growth of 24%.
The size of the Indian lingerie market is Rs56.28bn and can be segmented as
follows:
a) ECONOMY (Rs35.06bn growing at 17%).
b) MIDDLE (Rs12bn growing at 22%).
c) PREMIUM (Rs8.32bn growing at 32%).
d) SUPER PREMIUM (Rs900mn growing at 56%)
Implication High growth potential...
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3. Lovable, Enamor and Triumph are successfully established premium brands and
brands in expansion mode include Etam, Benetton, La Perla and About U.
Lovable has six variants - functional (3), contemporary (1), fashionable (1),
young (3), sports (1) and nursing bra (1) numbers in the bracket indicate
the number of brands under a category.
Enamor has six variants no seams, support, plus sizes, deep necks,
cleavage and everyday use.
Triumph has three brands Triumph, Miss Triumph and Classic triumph and
an assortment of wired and non wired lingerie.
All the brands have been catering to the functional and comfort aspects of
womans undergarments though some may have a few variants in the bridal
category. Neither have the brands positioned these products for the bridal
lingerie need of the Indian woman nor have they developed these products
like the west.
4. Wonder Bra launched in India on 8th August 2012. This brand has been
positioned as a bra that could do wonders to how a woman looks when she
woman wears it. In five days the pre-launch stock was sold out and nearly a lakh
customer had visited the online retail store's pre-booking page. Besides the
expected top 10 cities of India, there were customers from smaller centres like
Jamshedpur, Bhopal, Mathura, Belgaum, Sholapur, Amritsar, Kanpur, Allahabad
and Chitradurga. .
Implication There is a pent up need in the Indian market for variety in lingerie.
With these observations in mind we propose the launch of Bridal Sutra in the Indian
Market. Our brand will focus only on satisfying the gap in the lingerie market in
the sensuous lingerie segment. Our company will be product development and
customer service focused in the initial two to three years. Then in the expansion mode
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we would retain our strengths but work on opening new outlets and marketing our
products and services.
We provide the Indian woman with lingerie that will satisfy her beyond the everyday
needs. She will wear it to please herself and her partner. She will be comfortable and
confident, looking stunning in the lingerie. Just like gowns, dresses and sarees which
are bought by the Indian woman for special occasions. Our lingerie will be sought out by
her for her special occasions like the wedding night, honeymoon, birthdays,
anniversaries, etc. We will have a wide range of lingerie products from sensuous bras
and panties to sensuous theme wear lingerie.
Highly trained professionals will help her in her buying decisions. Right from the time
she enters the store she will feel pampered and stimulated by the wide variety of
offerings at her disposal..
Customized lingerie will be made available to her. This customization could be done at
the store where we will have our staff trained to help the customer or also on our
website where tools will be available to help customers with their ideas.
Objectives
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The Company
Bridal Sutra is a company of Indian origin. The company envisions providing women
with lingerie that meets her needs and aspirations.
Establishing the company has been explained in three phases Prelaunch, Launch
and the Post Launch Phase. It shows how we plan to manage the growth of the
company.
1. Phase1: Prelaunch
All the preparation before setting up the company has to be done in this phase.
Designers:
We will first sign up contracts with professional designers. Free lancers
will be preferred. This will give us freedom of choice. The contracts will be
drawn up in a way that we will pay for the designs we choose to use.
Manufacturers:
To gain operational advantage, we would outsource manufacturing to
manufacturers. We would select one manufacturer of repute to
manufacture products for us. We would provide designs to the
manufacturers and they would do the production according to our needs.
Contracts would be signed up which would include orders that are
received as a part of customization.
Management Committee:
We will set up a partnership firm, the ownership of which will be divided in
the ratio of 1:1:1 between three partners Taranjeet Singh, Arthi Kumar and
Sandhya Patil.
Sandhya Patil will be in-charge of approving designs and
maintaining the product portfolio. For this she will also have to
collaborate with designers and manufacturers. She will look over
the ambience of the locations selected.
Taranjeet Singh will be in-charge of launch plans that
would include selecting the locations, handling press releases and
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marketing the products. He will involve with the website
development team to have a fully functional website before the
launch.
Arthi Kumar will be in-charge of raising and accounting for
finances and inventory management at the stores. She will also
take care of registering and establishing a partnership firm and
establishing contracts with manufacturers and designers.
At the close of Phase 1 we would have a registered company and a brand that we
would work with. We would have designs under our brand and contracts with
manufacturers & designers. We would have a website to showcase our products and
services.
A store at each of the following three locations would be selected and their interiors
would be designed keeping the positioning of the brand in mind.
The reason for choosing these locations is that our target segments are premium and
the super-premium. These segments cater to the upper-middle and the upper class of
customers. The cities we have identified are metropolitans with a huge base of our
target customers. The areas within the cities have been carefully selected and represent
a population that has a good chunk of our potential customers.
2. Phase 2: Launch
Promotion
Press Releases & Magazines: To position yourself as a
premium brand it is important to promote your product in the right
channel. Press releases and articles in magazines will give a sense
of credibility and seriousness to our brand.
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Using Influencers/ Referent Groups/ Opinion leaders:
Influencers are people who can sway or change the thoughts of a
person. Influencers are not a part of the company and people trust
them easily. Hence influencers in our case would be friends of
young girls who would suggest the use of our product. Referent
groups are those groups that individuals relate to and aspire to be a
part of. Our Target Groups referent group needs to be identified
and will be used for promotional activities. Opinion leaders are
listened to and their advice is followed. They are believed to have
technical knowledge and no hidden interests. Examples would be
beauticians and event planners. Roping in such opinion leaders will
enable us to promote our brand without sounding to and looking too
eager to do so.
Promotional packages: For weddings and bachelorette
parties - There is no concept of throwing a party for the bride before
her marriage in India. We will come up with an online promotional
campaign Make your best friends night special, where exclusive
wedding night lingerie will be given at heavy discounts of almost
50%. This will be done to create a strong positioning of our brand
and product. This discount will only be given after some proof in the
form of a wedding invitation card, an engagement invitation card or
a bachelorette part card is scanned and uploaded on our website.
This is to ensure right use of the discount.
Banners: Banners like the ones put up by triumph in malls
will be put up near the shop. Banners will draw attention to the shop
when potential customers are around, driving impulse purchases.
After sales service: Right from the beginning we will have a
customer relationship management system where we will keep the
customer informed of the new designs through web mails.
Customers will get loyalty points and have membership cards. We
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will also encourage customers to give feedback on the service and
products.
The Store:
The store will be 1000 sq ft store in all the three locations. We arrived at
this figure based on the visits to the lingerie outlets. Good spacious outlets
had a space of about 1000 sq ft. This space will include the space for
changing rooms, display and the store room. The colours and dcor will
be tailored to go with the theme of our brand. Red, Gold and Black are
strong colors that depict sensuality and strength in women. We will use
these colours and theme for our brand.
The store will be open from 9 PM in the morning to 10 PM in the night. For
this store we anticipate the need of one store manager, three sales
assistants (all women) working per shift and a consulting expert. The store
will be operational in two shifts.
.
In store display of lingerie will be of high importance. The premium
products will be placed so as to catch the eye. The products will be placed
based on type and functionality. The next classification will be based on
look, colours and fabrics used. The final classification based on sizes and
price.
Location:
Location is of very high importance to any business. The location should
be where your TG is. When a new brand is being launched your customer
will not travel to you, you have to go to your customer. Hence we have
chosen locations like Pali Hill, Brigade Road and Hauz Khas for our
stores.
The factors that have been considered in selecting the location is
Desirable demographic composition
Strong foot traffic
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Complementary retailers
Successful retail reputation
Relatively easy access via primary streets
Inventory:
Stores will open up with three months of inventory. This is to ensure no
loss of business due to unavailability of stock. Stock counting will be done
once every fortnight and orders will be placed to manufacturers keeping a
three month stock level in mind. The expected sales will also change
based on the expected growth.
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covered in detail later when we will see how we plan to manage our
manpower.
The Website:
The website will be simplistic. It will be informative and educate the
customer about bridal lingerie. Our communication will be focused on
empowering the customer to make the purchase. The customer would be
educated about the functionality of the variety of lingerie offered. The
website will have tabs for the customer with all the products for easy
navigation. .
The customer details like email ID will be captured for relationship
management purposes...
Customers will be educated so that they can measure their right size and
also the website will have tools for the customers to design their own
lingerie. Online help will be available 24 X 7 for any concern the customer
may have. .
Information about our designers will also be featured on the website along
with our goals, vision and mission. Nowhere will any personal details be
captured and all details acquired will be kept confidential. And the
customer will be informed about the same.
At the close of the launch phase. We would have established a strong brand in this
niche segment. Our brand would be positioned such that it would have the highest recall
value when a customer would think of bridal lingerie. We would have established stores
at premium locations. Our brand would be known for the wide variety of product
offerings and customer service. The company would have started functioning and
employees now would have defined roles.
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packages and after sales service. Promotion in the media through
designers and fashion shows would be added in this phase.
Shop-in-Shop:
As the awareness of the brand increases the need of this product will be
felt by those not in the vicinity of our store. Hence to satisfy these
customers a store at leading Departmental stores like Shoppers stop and
lifestyle will be established. .
Here all our highest selling designs will be kept. We will have one sales
representative to assist the sale of the lingerie in each shift. A contract will
be established with the departmental store keeping the profit margins, the
store space, the visibility of our brand and the sales targets in mind.
Online Selling:
Once the brand has been established, we would include the online selling
channel to our trade channels. It would be make sense to launch the
online channel only after the brand has gained recognition. So, once the
brand establishes itself in the market we would launch online selling on
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our website. This would help us increase our customer base and reach out
to potential customers in other cities.
HR Management:
As the company expands managing employees and processes in the
company will be very important. And this will be covered in the
organization structure later in this proposal.
The post launch not only aims at maintaining all the ideas that the brand stands for but
also at expanding and reaching out to more and more aspiring customers. We would
slowly have in-house production of lingerie based on demand and customer feedback.
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6. Consumer Behavior
The product may be perfect but consumer behavior is a complex process. Hence
understanding the consumer behavior and then tailoring your offerings accordingly has
been the mantra for every business.
High Involvement: For the customer this is a high involvement product. The customer
buys this lingerie for personal gratification and not to please a third person. The self
concept of ideal self comes to play here. Customers self importance is the highest and
is over and above the brand and referent group characteristics.
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customer may not attach value to our brand name. Hence a lot of effort will have to be
spent on holding up the brand name. Hence we say there is moderate brand influence.
Based on these parameters it can be seen that when buying lingerie a customer will
show dissonance reducing attitudes and will go through a complex buying dilemma.
Hence it is important that the customer is pampered and welcomed to make the buying
decision easy for her. It is also important that we maintain after sales services and
relationships so the customer doesnt have to regret having make the decision to buy.
In such a buying decision every customer goes through the following phases
Need Recognition
Information search
Evaluation of alternative
Purchase decision
It is important for our Brand to be present at every decision making step of the
consumer. We should help her recognize the need by introducing the concept of Bridal
lingerie through our various promotional campaigns. When she tries to search for
information it should be readily available on the web and with opinion leaders like
designers and beauticians. She will then evaluate the alternatives. Though Bridal
lingerie is not available in India she will compare our offering with the ones outside
India. If she finds that our offerings are of lower quality or variety this will put her off.
Hence our range will maintain international standards. We will have sales assistants
helping her at every stage in the purchase decision. And our customer service will help
keep the customer satisfied post purchase.
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6.1 Factors influencing decision to buy
Figure 6: Decision Influencing Factors
Personal: Factors like age, occupation, education and economic situation will
influence the buying decision. Our TG is women in the age group of 23- 35 years
who are working with a multinational firm or a similar big firm, or is an
independent entrepreneur in her own right. She is well educated and well read
and has that extra income to spend on herself.
Social: Household types, Reference groups and roles and status play an
important role here. Nuclear families and newlywed couples will belong to our
TG. Those customers who are conscious about their ideal self and spend on self
gratification will belong to our TG.
Cultural: Culture, the subculture and the social class the customer belongs to
will influence the buying decision. Customers belonging to metros and up market
localities are expected to be more vocal about their choices and will be seen
coming to the store to make their purchase. Whereas woman in small cities and
the suburbs where they would be shy of expressing their desires would be
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expected to shop online as it ensures anonymity. There will be exceptions and
we do not consider this as the rule of thumb.
Environmental influences: Economical, technological and political factors form
the environmental influences. The economic situation has to be good as Bridal
Lingerie is a luxury product and will be knocked out first from the shopping list
when there is a economic crunch. As the technology improves e.g. the lazor
technology for manufacturing bras the consumer will have more reasons to make
the purchase.
Marketing Programs: The marketing mix and the strategy influence the buying
behavior of the customer to a great extent. Marketing is the only way that the
customer comes to know about the brands message and decides if the product
and brand meets her need. Hence will be careful in all the brand communication
by Bridal Sutra.
Psychological: Everything outside can be controlled but no one has been able
to measure which part in the brain need the trigger for a successful buy. There
are various factors like motivation, perception, learning, beliefs and attitudes,
personality and self concept that play an important role. It is very difficult to
change the psychological aspects to suite our needs however surrogate
advertizing and subtle hints can slowly change the customer and the society to a
positive psychological state.
Based on this there are varied responses from the buyer that depend on the product
mix and services offered by the brand. When we have most of these factors in our favor
it is the task of the sales assistant to help the customer traverse through the phases of
awareness, to knowledge, to liking, to preference, to conviction to finally making the
purchase. Lingerie belongs to the specialty products category in the same league with
designer clothes, jewelry, gadgets etc. It is a consumer product with unique
characteristics or brand identification for which a significant group of buyers is willing to
make a special purchase effort.
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6.2 Characteristics of the Target Group
1. The Unmarried Girl: (Age 16 - 25)
As the society is opening up and getting bolder by the day. It is not only married
woman but also unmarried girls who would want to possess and use Bridal
lingerie. However girls in India would be shy to enter the store and buy lingerie
due to social stigma attached to making such a purchase. For this we will
promote our online store. The online store will try to replicate the personal
service provided at the physical store to the best of its ability. Fitting, colors and
affect produced by using the various lingerie products would be explained on the
website.
This girl has been influenced heavily by media and the western culture of
sensuality. She is in an experimenting mode.
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6.3 Marketing Mix
Product & Service
We will include a wide variety of products. The range of products planned has been
listed below.
Product
1. Range
Type Description
Undergarment Including Brassier and Underwear but only of the sensuous kind. We
will not include comfort wear.
Baby Doll A short nightgown, or negligee intended as nightwear for women
Bikini Style of panty with fuller coverage in the back and a higher leg.
Theme Wear Ladies fantasy wear or costume for e.g. French Maid, Hot Nurse,
Cheer Leader etc.
Thongs & A type of panty, characterized by a narrow piece of cloth that passes
Gstring between the buttocks, and is attached to a band around the hips.
Garter/Garter Used to keep stockings up.
belt/Suspender
belt (British)
Night Shirts A long, loose T-shirt made of cotton, polyester, nylon, or diaphanous
chiffon.
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Negligee Dressing gown. It is usually floor length, though it can be knee length
as well
Night Gown A loosely hanging item of nightwear, may vary from hip-length
(babydoll) to floor-length (peignoir).
Robe, A garment worn to cover the body. A robe may be floor-length, knee-
length, or shorter, and it is commonly worn over and as lingerie.
Stockings Worn over the legs, are available mostly in the netted pattern and
can be of varying lengths.
Tap pants, A type of short typically made of lace, silk, or satin.
2. Fabrics:
Table 2: Fabrics
Type Description
Lace is a lightweight, openwork fabric, patterned with open holes in the work,
made by machine or by hand.
Muslin is most typically a closely-woven unbleached or white cloth, produced
from corded cotton yarn.
Silk is a natural protein fiber, some forms of which can be woven into
textiles.
Cotton is a soft fibre that grows around the seeds of the cotton plant
(Gossypium sp.), a shrub native to tropical and subtropical regions
Microfiber is fiber with strands less than one denier. Microfiber is the perfect blend
of polyester and polyamide.
Rayon is a manufactured regenerated cellulosic fiber. Rayon is produced from
naturally occurring polymers and therefore it is not a truly synthetic
fiber, nor is it a natural fiber.
Spandex is a synthetic fiber known for its exceptional elasticity (stretchability). It
is stronger and more durable than rubber, its major non-synthetic
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competitor.
Satin is a cloth that typically has a glossy surface and a dull back. It is a
warp-dominated weaving technique that forms a minimum number of
interlacings in a fabric.
3. Lingerie Accessories: ..
We will have an assortment of accessories for lingerie like creams, fragrances,
straps etc.
Service
1. Fitting and consultative service: This service will be available at the store and
the website enabling the customer to make the purchase. Online help will be
available in the form of documentation and a chat box where a customer service
representative will be addressing the concerns of the customer 24X7.
2. Customization service: The sales personnel will be trained to take the
measurements of the customers and guide them in customizing their lingerie.
Online tools will be designed that can be used by the customer for designing her
lingerie.
Price
The price has twofold objective
Uphold the Brand Value
Maintain competitive advantage
Keeping the above factors in mind we will price our products and sell them at a
premium. Triumph range of bras start at Rs. 600 and range up to Rs. 2500 for the
premium bras. Other brands like enamor have price ranges starting at Rs. 300. Even
though triumph is priced high it sees heavy sales and holds a premium position in the
market. The regular day wear undergarments of triumph are priced at Rs. 600 where as
special lingerie that can be considered competition to Bridal Sutra are priced starting at
Rs. 1100.
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Drawing parallels for the Bridal lingerie products our range will start at Rs. 1200 and will
go upto Rs. 5000 to gowns. To promote the sale of our products that are priced at a
premium we will bundle our products. Bundling will reduce the price and increase our
sales, for example bundling of underwear, bras, stalking and lingerie accessory. This
will also promote the use of products the customer was not planning to use/buy.
We will have promotional and discount vouchers for gifting purposes on the website.
This is to promote Bridal lingerie as a gift for bachelorette parties and other special
occasions.
Promotion
Promotions will include
1. Print Media
2. Online Media
3. Influencers & Opinion Leaders
4. Banners
5. Promotional Packages
6. After Sales service and Customer loyalty programs
7. Fashion Shows
8. Designer spokes persons
With the use of the above medium the brand message and information will be diffused
to the customers. As this is a new and technical product, the initial campaigns will focus
on educating the customer where as the subsequent promotions will focus on building
the brand equity and reinforcement of the brands message.
Place
Place is of utmost importance in such a high involvement product. In phase 2 we will
open three stores one each at Pali Hill, Bandra- Mumbai; Hauz Khas, Delhi and Brigade
Road, Bangalore. These places are visited by the up market crowd and the target
group. We have youngsters coming to these places and hence our brand gets the right
exposure. Highest footfalls are expected if the Brand is launched at these locations.
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Next is Phase 3, when the Brand has been established we will explore the shop-in-shop
model. Online sales will be a strong venue for sales through all the phases.
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7. Competitive Analysis
The outlets for intimate apparel purchases in India are much more limited than markets
of similar size. There are mass merchandisers and discount stores that offer mass
produced and lesser quality brands; department stores that offer better brands, but in
limited sizes and with varying degrees of customer service. There are no lingerie
boutiques serving the upper income.
Industry Structure
Sales channels that are capitalizing on the growing Indian lingerie are the Multi Brand
Outlets (MBOs), hosiery products outlets and large format stores (LFS). Top lingerie
manufacturers in India have an entrenched and a strong presence in MBOs and LFS
serviced through network of distributors or directly from warehouses.
The Organized retail accounts for one third of lingerie sales as opposed to two-third
from the unorganized sector.
The influx of large international brands in the Indian market, the growth of organized
retail and choices for the Indian women has helped Indian economy in witnessing a
phenomenal growth. This growth is inviting many international players to invest in the
Indian market. The advent of international brands in the Indian market place has
brought about some realignment in the fragmented lingerie market.
Premium & Super-Premium segments: The companies have started advertising boldly
through advertisements, fashion shows etc., to catch up with the consumers to
understand their preference. This, perhaps, is the reason why the premium and super-
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premium segment of the lingerie industry, with brassieres priced above Rs. 200 and
mostly characterized by the presence of international brands, are witnessing higher
growth compared to mid-market and low/economy segments.
Middle & Economy Segments: The economy segment is dominated by the unorganized
and local players while the middle, premium and super premium segments are
dominated by national and organized players.
We are catering to the bridal lingerie category in the premium and the super-premium
segment. This lingerie is available under both the formats of retail, organized and
unorganized.
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4. Lovable: Does not have a bridal lingerie category and its products are priced
lower than the Triumph and LaSenza starting at Rs. 160
5. Customization:
Buttercups: This is a brand based in Hyderabad which provides customization
of lingerie. (Not a market leader but an innovator)
Various local brands and manufacturers come under the unorganized sector. The
unorganized retail in bridal lingerie is large. With outlets on the street to family owned
shops convenience stores. The price points are also very low starting at as low as Rs.
150. However the sector is very scattered and the customer is unaware of where to go
for a particular product she needs. Also customization of products is absent. She is not
assured of the quality of the product. Also sizes and fits are not standardized and there
is no consultation for the same.
Online Retail stores: Customers today have access to online retail stores. This
exposes them to products across the world. There are a variety of products and
services relating to bridal lingerie in the online retail space. But the personal touch and
association with the brand is absent.
As we are targeting the premium and super premium we have identified the
international players at MBOs and EBOs as our biggest threat/competition followed by
online retailers. Unorganized sector is not being considered as competition as the
Target group for the unorganized sector is middle and economy class.
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8. Organization Structure
Figure 7: Organization Structure
CEO
(Taranjeet Singh)
CMO CFO
(Sandhya Patil) (Arthi Kumar)
Store Manager(Consultant)
(3)
Sales representatives
(9)
The CEO is the head and has ultimate responsibility. The CEO will head
A Chief Marketing & Operations Officer will be responsible for getting business
for the company. She is responsible for creating brand equity for Brand Bridal
Sutra.
A Chief Finance Officer responsible for maintaining the accounts and raising
funds for the organization. This Officer will have an accountant helping with the
finances.
The store manager will be trained to offer consultation services to the customers.
This structure is functional in nature as, when the company is budding the CEO will
have to micro-manage each issue. The Marketing team has the greatest responsibility
in the early phases of development.
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The team will broaden with the growth of the brand and many more responsibilities like
Chief Operations Officer etc. come up. The responsibilities of these chiefs increase with
the growth of the business.
The major change is in the Marketing and Operations team. To manage India
operations the country will be divided into 4 regions. Each region will have 5-7
marketing executives and 5- 7 operational executives. These personnel are responsible
for getting business and for client interaction.
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9. Operations Management
Managing operations is a very important part of any business and a huge challenge.
Likewise, operations management would serve to be a challenge to Bridal Sutra. The
section presents the proposed supply chain of Bridal Sutra.
With increased marketing channels, outsourcing options and fashions changing not only
from season to season but also within the same season, it is important to have a
responsive supply chain. Consumer awareness and satisfaction are probably the two
most important factors in creating a sustainable business which is increasingly
becoming global. Bridal lingerie which falls under the fashion segment is considered a
dynamic and complex industry that requires its supply chain to be responsive and
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flexible. Given the long lead times that there are in the industry, it is important to have a
effective supply chain to help you buy products as close to the season as possible.
The key is to try and get through the line, as quickly as possible. This is where it
becomes challenging since one must try to forecast demand as accurately as possible.
The stages of our supply chain are supplier, manufacturer/contractor, retail outlet, and
end consumer. The manufacturer and contract apparel producer can also have
subcontractors. The subcontractors bring in fabric, trim, and findings. Fabric mill agents
and trim consolidators are also part of this group. The agents deal with the fabric mills
that supply yarn or fiber. The trim consolidator deals with all the trimmings.
The marketing department will forecast the demand the give the numbers to the
planning department. The planning department will place order in the purchasing
department and also inform the manufacturing department. The manufacturers have
expertise in the product. They deal with off-shore factories and inventory management.
The manufactured products will then be inspected before leaving the facility.
The next step is the retailer. We buy the merchandise from the manufacturer, and that
merchandise will be sold in our outlets.
The last step is the end consumer. The end consumer purchases the product for their
own use.
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requires a spirit of collaboration among those functional units that are responsible for
generating and managing demand.
As we do not have past data for bridal lingerie, we are using the historical lingerie sales
data to forecast demand and estimating the demand for bridal lingerie. Bridal lingerie
currently constitutes about 10% of the total lingerie market, as per our primary research.
The Indian lingerie market has been unleashed like never before, it has undergone a
transformational phase over the past few years. There has been much innovation in the
making of lingerie and technology has influenced this. Within the Rs. 135 billion
Innerwear Industry, women's innerwear is the fastest growing segment significantly
outstripping the growth in the men's and overall innerwear market. The industry is
expected to grow at a CAGR of 18% till 2015 and would be soaring to new heights.
Indian Lingerie industry pegged at Rs. 56.28 billion in 2011 will jump to reach Rs.165
Billion by 2015. Going by these estimates, we can expect a potential of Rs. 16.5 bn for
the bridal lingerie market by 2015. This is a conservative estimate considering the fact
that the bridal lingerie segment is still not established in India.
The super-premium and premium segment contributed 15.8 % to the total lingerie
market in 2009. This share is expected to grow to approximately 28% by 2014. Thus,
going by a conservative estimate, we expect sales of at least 1200 pieces in the 1 st year
of operation. There on, considering a 15% growth year-on-year for the next 2 years and
a 20% growth for the next 3 years. This will come from garnering a larger market share
based on increased awareness, positive word-of-mouth recommendations, and
customers adopting Bridal Sutra as their exclusive lingerie outlet, as well as increased
offerings in high demand areas such as hard-to-find sizes.
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Graph 12: Sales By Year
Sales by Year
in Crores 9
8
7
6
5
4
3
2
1
0
2013 2014 2015 2016 2017
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could be the new customers entering the lingerie market. These are the customers
driving growth in the mass and unorganized segment. At the same time the growing
percentage of the rich classes are the customers catering to the premium segment
brands.
7. Increasing urbanization:
Urbanization rate in FY2005 was just 28 % of Indias population. Urbanization rate
represents the percentage of people who reside in urban cities. Indias urbanization rate
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is among the lowest in the world. By FY2025 the number of Indians living in cities is
expected to grow by 300 million, we assume that the rate would be same for women as
well and they are the ones who will drive the demand for branded lingerie of new styles
and fashions to match new lifestyles.
9.3 Manufacturing
As per the sales plan and production schedule the raw material is procured from various
sources both domestically and internationally. The primary raw materials that are used
in the production process are fabrics of following types: cotton lycra, circular printed,
polyester cotton, warp knitted powernet, warp knitted satin, polyester cotton spacer
fabric, laminated fabrics and laces of various types. Other raw materials used are
shoulder straps, elastic, hook and eyes, rings and sliders, sewing threads, moulded
cups, etc.
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Figure 9: Manufacturing Process
1. Raw materials: Raw materials will be procured from the stores as requisitioned
by the production planning department and all the raw material pertaining to that
planned production will then be issued to the cutting department along with work
order. The work order will then provide the details of design / pieces to be cut and
the required sizes.
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2. Cutting: The cutting department will have the pattern made by the designers.
Accordingly, as per the pattern, the fabric is spread over in the form of layers and cut
into various shapes as per the cutting patterns / templates after the grid marking is
done.
3. Segregation: The cut parts will be segregated according to the sizes and
simultaneously the fabric will be checked for any defects.
4. Strap cutting and preparation: Shoulder strap elastic comes in long lengths and
according to the size specifications the elastic is cut and rings and slides are
inserted into the straps. The straps are stitched after the insertion of rings and slides.
5. Making the bin: Each Work Order is issued with a specified batch quantity and
the cut raw materials and components pertaining to that batch and then bundled and
placed in a bin. The bin is the physical compartment in which the raw materials of a
specific batch are controlled. The cut parts of fabrics, straps are put in the bin to
avoid mixing of sizes. All other materials of the innerwear like hooks, eyes, labels,
etc are put in the bin along with work order so as to maintain the size, number of
pieces to be sent to stitching section.
6. Sewing operation: In the sewing section the parts undergo various sewing
operations. The sewing operations are done on various types of sewing machines
like single needle, double needle, 2 step zig zag, flat locks, bar tack etc. Depending
on the design requirements the sewing sequences are lined up and sewing
operation are done. Each style has a well-defined sequence for fabrication / sewing
assembly line. The bin moves precisely in that sequence from machine to machine
and as it moves the garment gets assembled. Great care is taken to maintain the
standards like stitch length, and inspection is done during the process to see
whether the measurements are as per the design standards. We have in process
quality control systems that inspect and measure each garment mid-way in the
sewing sequence and control it before it goes for final sewing operations.
78
7. Finishing section: In the finishing section small threads are cut and the products
are inspected for any visual defects like pen marks or any stains. Then the
production in the bin is moved for final inspection.
8. Final inspection: In the section the brassieres are thoroughly checked for
measurements, visual defects, if any, are then segregated and rejected. All the
inspected brassieres are sent for packing.
9. Packing: The products received are packed in specific packaging cartons and are
then sent to finished store for storing and on ward dispatch to distributors/
customers.
Inventory Management
The company will keep a supply of inventory on hand and will aim to maintain a
balance between keeping enough inventories to meet consumer demand but not too
many units of any one item, such that the inventory holding cost is optimized.
Customization
We offer customers the chance to customize their lingerie. The manufacturers will
design a product to the specifications of the consumer.
Out-Sourcing
The manufacturing of the products will be out-sourced for the first 2 years of
operation. Once we have an established customer base, we will set up our own
manufacturing facility. Being a new entrant in the market, the out sourcing will give
us a cost-benefit advantage.
Our Company intends to develop the EBO concept that will be a specialty womens
innerwear retailing model and that will retail our Companys bridal lingerie brands,
the other brands that we propose launch in future and also retail the related
categories of products that our Company proposes to venture. To strengthen
79
availability of entire product range and styles, our Company proposes to open more
EBOs spread over a period of two years. In its first phase our Company proposes to
open 3 EBOs.
80
10. Financials
Initial capital would be required to cover start-up expenses and the first 2-3
months of salary, rent, taxes, insurance and credit card fees
Profits will be reinvested to reduce debt, expand product lines and increase
personnel, as needed
Bridal Sutra is a retail store, and will not be selling on credit. Bridal Sutra will
accept cash, checks and all major credit cards
The major start-up expenses and acquired long-term assets include Rs. 27 lakhs in
start-up inventory and Rs.7,49,000 to build-out the store and prepare it for
operations (design, fixtures, lease-hold improvements, signage, Point of Sale
(POS) system, packaging, supplies, etc.)
Start-up requirements include sufficient working capital to help meet the running
costs for the first 2-3 months of operations.
The start-up costs will be financed through a combination of owner investment and
bank loans
81
Graph 13: Capital Investment
9 8.5
8
7
6
Rs. (in Crores)
5
4
3
2 1.2
1.06
1
0
Startup expenses Investment + loan VC
Start-up Requirements
Start-up Expenses
Legal 20,000
Packaging/Sacks/Boxes 25,000
Hangers 3,000
Business Supplies 10,000
Real Estate Attorney 20,000
CPA 5,000
Grand Opening Event 500,000
Signage 15,000
POS System 35,000
82
Cash Required 1,000,000
Start-up Inventory 2,700,000
Long-term Assets 749,000
Total Assets 4,449,000
Total Requirements 10,645,000
10.2 Milestones
83
Graph 14: Breakeven Analysis
10 Break-even Analysis
Rs. (in Crores) 8
-
27,000 31,050 35,708 42,849 51,419
Units sold
FC VC TC Revenue
We have estimated to break-even somewhere between the 2nd and the 3rd year of
operation.
Other Costs of
Goods
- - - - -
Marketing and
Advertising
1,000,000 1,050,000 1,102,500 1,000,000 1,000,000
84
Depreciation
50,000 50,000 50,000 50,000 50,000
Rent 21,600,000 22,680,000 23,814,000 25,004,700 26,254,935
Packaging
4,800 5,520 6,348 7,618 9,141
Cell Phone
6,000 7,200 8,640 10,368 12,442
Travel 14,000 16,800 20,160 24,192 29,030
Utilities 162,000 170,100 178,605 187,535 196,912
Merchandiser 40,500 41,310 42,136 42,979 43,839
Buying Consultant 216,000
Web Design
20,500 10,000 10,000 10,000 10,000
Insurance 56,200 56,200 56,200 56,200 56,200
Cash Received
Cash Sales
40,500,000 46,575,000 53,561,250 64,273,500 77,128,200
85
Subtotal Cash from
Operations
40,500,000 46,575,000 53,561,250 64,273,500 77,128,200
Additional Cash
Received 0 0 0 0 0
Sales Tax, VAT,
HST/GST Received 0 0 0 0 0
New Current Borrowing
0 0 0 0 0
New Other Liabilities
(interest-free) 0 0 0 0 0
New Long-term
Liabilities 0 0 0 0 0
Sales of Other Current
Assets 0 0 0 0 0
Sales of Long-term
Assets 0 0 0 0 0
New Investment
Received 0 0 0 0 0
Subtotal Cash Received
40,500,000 46,575,000 53,561,250 64,273,500 77,128,200
Expenditures
Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from
Operations
Cash Spending
11,340,000 13,041,000 14,997,150 17,996,580 21,595,896
Bill Payments
23,287,500 26,780,625 30,797,719 36,957,263 44,348,715
Subtotal Spent on
Operations 34,627,500 39,821,625 45,794,869 54,953,843 65,944,611
Additional Cash Spent 0 0 0 0 0
Principal Repayment of
0 0 0 0 0
Current Borrowing
Other Liabilities
0 0 0 0 0
Principal Repayment
Long-term Liabilities
Principal Repayment 6,500,000 7,150,000 7,865,000 8,651,500 9,516,650
Purchase Other Current
0 0 0 0 0
Assets
Purchase Long-term
0 0 0 0 0
Assets
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Dividends 0 0 0 0 0
Subtotal Cash Spent
41,127,500 46,971,625 53,659,869 63,605,343 75,461,261
Net Cash Flow
(627,500) (396,625) (98,619) 668,158 1,666,939
Cash Balance
372,500 (24,125) (122,744) 545,414 2,212,353
Assets
Current Assets
Cash
372,500 (24,125) (122,744) 545,414 2,212,353
Inventory
6,750,000 7,762,500 8,926,875 10,712,250 12,854,700
Total Current Assets
7,122,500 7,738,375 8,804,131 11,257,664 15,067,053
Long-term Assets
Long-term Assets
749,000 749,000 749,000 749,000 749,000
Accumulated
Depreciation
50,000 100,000 150,000 200,000 250,000
Total Long-term Assets
699,000 649,000 599,000 549,000 499,000
Total Assets
7,821,500 8,387,375 9,403,131 11,806,664 15,566,053
Liabilities and Capital
Year 1 Year 2 Year 3 Year 4 Year 5
Current Liabilities
Accounts Payable
6,027,000 6,328,350 6,644,768 6,977,006 7,325,856
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Current Borrowing
- - - - -
Other Current Liabilities
- - - - -
Subtotal Current
Liabilities 6,027,000 6,328,350 6,644,768 6,977,006 7,325,856
Long-term Liabilities
1,794,500 2,059,025 2,758,364 4,829,658 8,240,197
Total Liabilities
7,821,500 8,387,375 9,403,131 11,806,664 15,566,053
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11. Risk Assessment
S. No Risk Identified Prevention Strategy Mitigation Plan
Changes in buying Introduce new products/product Continuously monitor the
1 habits and lines to match the current consumer behavior of our
consumption pattern pattern target group
Changes in prices of Factor the increase in
2 Hedge the raw material prices
raw materials costs into the selling price
Disruption at the Keep an alternate manufacturer Start our own
3
manufacturing facilities for the purpose manufacturing plant
Inventory levels of 2-3
Disruption in our raw Keep a list of alternate sources
4 months for the first few
material supply of supplies/ suppliers
months
Competition from Keep an eye on the
existing or new Be ahead of the Indian market changing trends in the
5
entrants in the Indian at any point of time Indian market and the
innerwear industry market abroad
Growth of unorganized
Good branding initiatives.
6 sector and threat from Differentiation strategy
Maintain a brand equity
local players
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12. Appendix
12.1 Relationships
1. Relationship between age group and amount spent
Hypothesis:
H0: There is no relationship
H1: There is a relationship
Expected value, Fe = Nc * Nr / N
where Nr = total number in the row
Nc = total number in the column
N = total sample size.
90
36-40 2.34 0.9 0.42 0.06 2.28
Above 40 1.56 0.6 0.28 0.04 1.52
Below 20 2.34 0.9 0.42 0.06 2.28
Since, the calculated Chi Square value is greater than the statistical Chi square
value; we reject H0 and accept H1.
Contingency Coefficient
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C = 0.51
Therefore, contingency coefficient shows that there is a high relationship between
the age of respondents and the amount they spend on lingerie.
Expected value, Fe = Nc * Nr / N
where Nr = total number in the row
Nc = total number in the column
N = total sample size.
92
Once in Once in Once in
Once in
3 to 6 6 to 9 9 to 12
3 months
months months months
20-25 30.16 48.88 17.68 7.28
93
For .05 level of significance, statistical Chi square value = 24.99
Since, the calculated Chi Square value is greater than the statistical Chi square
value; we reject H0 and accept H1.
Contingency Coefficient
C = 0.49
Therefore, contingency coefficient shows that there is a high relationship between
the age of respondents and the frequency of purchase.
Hypothesis:
H0: There is no relationship
H1: There is a relationship
94
Expected value, Fe = Nc * Nr / N
where Nr = total number in the row
Nc = total number in the column
N = total sample size.
Married Unmarried
No 15.66 42.34
Yes 38.34 103.66
Married Unmarried
No 2.05 0.76
Since, the calculated Chi Square value is greater than the statistical Chi square
value; we reject H0 and accept H1.
Contingency Coefficient
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C = 0.13
Therefore, contingency coefficient shows that there is a weak relationship between
marital status and awareness.
Expected value, Fe = Nc * Nr / N
where Nr = total number in the row
Nc = total number in the column
N = total sample size.
No Yes
No 14.71 41.29
96
Yes 15.23 42.77
No Yes
No 3.05 1.09
Contingency Coefficient
C = 0.34
Therefore, contingency coefficient shows that there is moderate relationship
awareness and availability
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