3.3.2 Developing Finanical Goals 3.3.3 Strategic Planning 3. 4.

Promotion Mix
3.4.1 Advertising 3.4.2 Sales Promotion 3.4.3 Personal Selling:
3.4.4 Public Relations
3.5 Techniques of Promotional Strategies 3.6 Advertising and its Effects
3.6.1 Advertising and Brand Awareness
3.6.2 Advertising and Consumer Behaviour 3.6.3 How does Advertising affect
consumers? 3.7 Knowledge Gap
4, Research Methodology
4.1 Research Objective
4,2? Research Design
4.3 Data collection method
4.4 Data Collection Tool
4.5 Sample Design
4.5.1 Sampling Frame
4.5.2 Sampling Unit
4.5.3 Sample Size
4.5.4 Method of sampling
45.5 Sample
4.6 Data Analysis Tools
5, Data Analysis and Findings 6. Conclusion
Tt. Recommendation
8. Referencing
9. Bibliography

10. Annexure
Executive summary

Kazo is a fashion retailer that came into being with a simple aim of amalgamating
creative international trends and fashion at a value that would suit the requirements of
today’s youth. Due to the high wear-ability and high street fashion trends, Kazo has been
able to make an enviable reputation for itself in a short span of time.
The research report has been done keeping in mind the Indian operation of Kazo Ltd.
This report provides an analysis of the brand perception of KAZO customers.
2.0 Background Study
2.1 Origin
Giving every woman a chance to live their life confidently and to feel great about them,
Kazo launched its first store On July 7", 2007. Kazo is an in-house brand of B.L.
International. It came into being with a simple aim of amalgamating creative international
trends and fashion at a value that would suit the requirements of today's youth. Due to the
high wear-ability and high street fashion trends, Kazo has been able to make an enviable
reputation for itself in a short span of time.

It suggests hosts of marketing strategies and promotional activities that help a brand to
grow.
The observation includes the analysis on Customer loyalty program, quantity and quality
of collection, the display of designs and various other details.
The report finds the prospects of the company in its current position are not positive.
According to the primary and secondary study conducted, there are two major problems
faced by Kazo. The first problem is that Kazo is not able to connect with its consumers.
The second problem encountered was that Kazo has no promotion strategy.
The major areas of weakness require further investigation and remedial action by
management. Recommendations discussed include:
« Frequent addition of new designs and information about it through sales staff, online
blogs or SMSs should motivate customers to come back to stores more frequently.
« KAZO needs to invest on several ATL for branding & BTL activities to target its
potential customers.
*« » Mumbai — 4 showrooms
« Juhu Tara Road, « Juhu Mega Mall, « Inorbit Mall, Vashi
« Oberoi Mall
Punjab — 2 showrooms *« Ludhiana « Amritsar » Bangalore —1 showroom
Hyderabad —1 showroom

SISs
Ritu Wears * Rohini * Lajpat Nor « Jallandhar « Amritsar » Forum Bangalore Central Bangalore India
Bulls - Pune » =©Ebony « Amritsar « Chandigarh « Faridabad
• Ludhiana
2.3.3 Product Range-

KAZO Trendy, KAZO Evening, KAZO Basic, KAZO Men and KAZO Limited are the
ranges of KAZO that are from chic and youthful to glamorous and glitzy to please not
only naughty teens, professionals and the coveted diva but also men.

KAZO TRENDY
The name speaks for itself- this range is chic, youthful with a dash of vulnerability.
Specially designed to ring out sheer fun element in the lives of young girls between 15-
25. Attires under this collection are a toast to vivacity of a woman who constantly alters
her wardrobe and thrives on variety.

KAZO EVENING
For that special evening, with glitz and glamour, KAZO has its designer evening
wardrobe that will give you a complete look of the diva. Those entire women between 15
and 35, finds it one stop for that impeccable fit and ethereal design. VVhether it's a party,
an evening with friends or a date with your beloved, KAZO’s designer wear will prepare
you to walk the face of the earth with poise.

KAZO LIMITED
Very limited, specially designed, oodles of attitude, charm, poise and style that'll take the
breath away are the bona fide characteristics of a KAZO limited collection. From 20-35,
the collections under KAZO accommodate one and all enabling every woman to
mesmerize the world, If parties are your haunt and distinctiveness your covet then KAZO
is your ultimate stop.

KAZO BASIC
Office wear was never so trendy before the launch of KAZO that has created a unique
collection of the women of today who aims at leaving a mark wherever she goes. Office
wardrobes from KAZO is a must have if style and profession goes hand in hand for you.

« KAZO MAN
The AutumnMinter collection of 2009 saw another addition to the existing range of
KAZO. It was the time when KAZO entered the men’s collection. Trendy, stylish, casual
and colorful are some of the attributes in the collection. Though it’s only available at
select stores right now, KAZO plans to increase the man’s collection to its entire store.
2.3.4 Promotions
Kazo Fashion maintains a huge potential exists in social networking websites and that the
company has taken to it very seriously. Kazo hosts a lot of campaigns online to attract
customers, and has a presence on Twitter and Facebook by conducting on ground
activities with the help of social media. Given the huge interest on social media, the
company is looking to launch Kazo stores in Italy, France and England soon. The
company, which is concentrating on social media and digital marketing to achieve
growth, regularly updates its promotions and marketing features on its Facebook page.

2.4 SWOT analysis

2.4.1 Strength
* Lesser price as compared to competitors
« Stores at main locations in the mall
« Very high degree of customer loyalty

2.4.2 Weakness
« Low level of brand awareness e Won availability of sizes
« Limited variants in color
« No incentive for repeat purchase

2.4.3 Opportunities
Increase in demand of brands in middle east
« Increase in disposable income of people
• People are becoming brand conscious
• Growing domestic market

2.4.4 Threats
« Predominance of unorganized sector Increased competition
« Cheaper imports
2.5 Competitors
Mango, Zara, Sisley is the major competitors. Kazo use to supply to these brands before
opening up its retail store. The price range is a weakness for Mango in the Indian market
when compared with its competitors like Kazo, Promod, Zara. The French fashion brand
Promod has cut costs but Zara and Kazo are comparatively lower priced than Mango.
ZARA KAZO MANGO

 It provides apparels at/with minimum starting range of Rs. 1000

 Zara's average sales are around Rs. 50,000
 It brings in new products every fortnight
 Much wider range of styles
 Generates more footfalls
 Has good awareness of the brand
 It provides apparels at/with minimum starting range of Rs. 1200
 Kazo’'s average sales are about Rs.
 It brings in new products
 Good range of designs and styles
 Generates lower footfall
 Has lower awareness of the brand
 lt provides apparels with a minimum starting range of Rs. 1500
 Mango's average sales are around Rs. 40,000.
 It brings in new products
 Wide range
 Has good awareness of the brand
Vv c 2.6. Primary Study
A brand visit was also conducted where in the promotional strategies of the brand were
studied. The field study was conducted in Pacific mall and Selectcity walk, New Delhi. It
was noticed that Kazo had very few retail promotions. We also used observation method.
It was noticed that most of the customers came just to have a

look at Kazo's products. The primary Study was also conducted with the help of
Unstructured and structured data collection tools i.e. Interviews and Questionnaires
respectively,
2.7 Problem Statement
According to the primary and secondary study conducted, there are two major problems
faced by Kazo. The first problem is that Kazo is not able to connect with its consumers.
The second problem encountered was that Kazo has no promotion strategy.
2.7.1. Research Problem
The main problem being encountered by Kazo is that it is not able to connect with its
customers as it has unsatisfactory promotion strategy.

Chapter 3:
Literature Review

Consumers are evolving entities. Their aspirations and expectations are continuously
changing. Today's shoppers are more intelligent, discerning and tuned to their individual
preference. They are increasingly brand and fashion conscious and select labels which
define who they are or who they want to be. The biggest challenge for all the brands is to
create loyal customers who love them.
With rapid growth in disposable incomes Indian consumer markets are changing fast.
And therefore Apparel and fashion industry in India is in its growth stage. In such a
scenario, it is very essential to study how consumers make their choices in Apparel &
Fashion category where there are several brands in the consideration set ofa consumer.
Brands build customer loyalty by delivering excellent value which includes styling,
durability, quality fabrics, and consistent fit. To the consumer, a brand name represents
familiarity, consistency, and confidence in performance.
3.1 Understanding the term ‘Brand’
A brand is a product, service, or concept that is publicly distinguished from other
products, services, or concepts so that it can be easily communicated and usually
marketed. A brand name is the name of the distinctive product, service, or concept.
Branding is the process of creating and disseminating the brand name. Branding can be
applied to the entire corporate identity as well as to individual product and service names.
A company's brands and the public's awareness of them is often used as a factor in
evaluating a company. A brand connects the four crucial elements of an enterprise-
customers, employees, management and shareholders. Brand is nothing but an assortment
of memories in customers mind. Brand represents values, ideas and even personality. It is
a set of functional, emotional and rational associations and benefits which have occupied
target market's mind. Some examples of well known brands are Mc Donald’s’, Mercedes-
Benz, Sony, Coca Cola, Kingfisher, etc. (Lee, 2015).
Fashion must have value and purpose and should truly resonate in the industry. Strong
brands with consistent powerful messages can create loyalty and a sense of worth that
transcends the burden of choice. It also nourishes industries with high research
requirements due to its present characteristics:
*« Fast mutation of its specificities
• Obsolescence of the product

The understanding of consumer's desires, behaviour, and of purchase process of fashion

products is extremely important to design products collections as well as to placement of
these products in market.
3.2 Consumer Market 3.2.1 about the Consumer
Consumer is an individual who buys products or services for personal use and not for
manufacture or resale. A consumer is someone who can make the decision whether or not
to purchase an item at the store, and someone who can be influenced by marketing and
advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or
anything else, they are making that decision as a consumer. (Mawen, 2001)
Consumers play a vital role in the economic system of a nation. Without consumer
demand, producers would lack one of the key motivations to produce: to sell to
consumers. Theconsumeralso forms part of thechain of distribution. For example: Atul
might purchase a cap for his son or Sonam might buy a skirt for herself. In the above
examples, both Atul and Sonam are consumers. (Naureman, 2006)
3.2.2 Consumer behaviour
Consumer behaviour is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It
refers to the actions of the consumers in the marketplace and the underlying motives for
those actions. Marketers expect that by understanding what causes the consumers to buy
particular goods and services, they will be able to determine—which products are needed
in the marketplace, which are obsolete, and how best to present the goods to the
consumers. (Ehrenberg, 2005)
The study of consumer behaviour assumes that the consumers are actors in the
marketplace, The perspective of role theory assumes that consumers play various roles in
the marketplace. Starting from the information provider, from the user to the payer and to
the disposer, consumers play these roles in the decision process. The roles also vary in
different consumption situations; for example, a mother plays the role of an influence in a
child's purchase process, whereas she plays the role of a disposer for the products
consumed by the family.( Naureman, 2015)
3.2.3 Consumer behaviour towards Apparel Brands
The Indian customer has undergone a remarkable transformation. Just a decade or two
ago, the Indian customer saved most of his income, purchased the bare

necessities and rarely indulged himself. Today, armed with a higher income, credit cards,
exposure to the shopping culture of the west and a desire to improve his standard of
living, the Indian consumer is spending like never before, Organized retail with its
variety of products and multitude of malls and supermarkets is fuelling their addiction.
Most customers’ preferences change according to the change in fashion.(Sundarraj,
2015).
A key challenge for apparel retailer in India is to induce customer to purchase quickly,
which means sales promotion tactics are important, including end of season sales, festival
promotion and special events.
There is an increasing shift from price consideration to design and quality, as there is a
greater focus on looking and feeling good (apparel as well as fitness). At the same time,
the new Indian consumer is not beguiled by retailed products which are high on price but
commensurately low on value or functionality, There is an easier acceptance of luxury
and an increased willingness to experiment with mainstream fashion. This results in an
increased tendency towards disposability and casting out -from apparel to cars to mobile
phones to consumer durables. The seltemployed segment of the population has replaced
the employed salaried segment as the mainstream market. 40% of primary wage earners
in the top 2-3 social classes in towns with a population of 1 million or more are self
employed professionals and businessmen. This has driven growth in consumption of
productivity goods, especially mobile phones and two and four-wheelers. Finally, credit
friendliness, drop in interest rates and easy availability of finance have changed mindsets.
Capital expenditure (jewellery, homes, cars) has shifted to becoming redefined as
consumer revenue expenditure, in addition to consumer durables and loan credit
purchases.
Some of the interpretations of what a consumer preference is, are given below - Elling
(1984) explained consumer preference as that —character of a consumer which, when the
product preferred by him was not available with one dealer, made him to walk to other
dealer for the same productll. The way consumer is fulfilled or unhappy about a product
after his purchase is called as customer's preference. Once the customer likes the product
there are more chances of purchasing it again.
Domestic brands have also stepped into the market with different variety of products
according to the region and culture. Brands are expanding their presence from urban
market to rural market to reach the consumers. In the past consumers were not provided
with comprehensive list of products and so there were no special preferences. In today's
context, there is wide range of variety and brands for the consumer to choose and hence
the preferences of consumer have a wider importance. It was seller's market during 1990s
and now its buyer’s market. (Oliver, 1999).

3.3 Marketing Strategies

Promotional and marketing strategies are often first brainstormed and written as part of
an organization's marketing plan. If your small business doesn't have a marketing plan,
you should seriously consider developing one. Most marketing plans include the current
or expected strategies you have for your products, the price points of those products, how
you intend to distribute the products, and your advertising and marketing tools. A
marketing plan is also important for developing a promotional strategy as it helps your
business identify its target markets and to set measurable goals. It is vital to the success
of the organization that you implement a marketing plan that aims for growth and
positive change in the bottom line.
3.3.1 Understanding your clients-
Promotional and marketing strategies can also assist your business in understanding and
connecting with clients and customers. If your marketing plan is loosely structured, you
might not have much success at targeting products to the "right" demographics. Having a
solid and well-thought-out marketing plan can help you identify gaps in the marketplace
and provide feasible solutions for your clients. If you operate an ice cream business in a
neighbourhood where no other ice cream shops exist, it might be easier to attract clients
than in a town where there are other ice cream options. In this case, understanding that
your clients want sprinkles and waffle cones might help you sell more ice cream and keep
your customers coming back for more.
3.3.2 Developing financial goals-
Promotional and marketing strategies are also important for guiding your business into
the development of financial goals. Financial goals are two-fold: They are related to your
sales targets and also to your expenses budget. Sales targets are initially set as part of the
marketing plan but might change over time according to changing market conditions,
increases in product price, or increases or decreases in consumer demand. Monitoring
expenses is also part of financial goal development. If your business tends to spend more
than it brings in, you'll have a serious problem maintaining long-term business viability,
However, if the business is able to closely monitor its outflows, only spending what it
absolutely needs to, you'll be better equipped to increase the profit margins.
3.3.3 Strategic planning-
Another important aspect of promotional and marketing strategies involves strategic
planning. Strategic planning is a concept that encompasses marketing, promotion, sales,
and financial goals and is essentially about developing goals for your business. Having a
strategic plan for your business means that there is are plans in place to deal with both
expected and unexpected situations. If you know that your mortgage will balloon by 5
percent next year, a strategic plan will outline how you'll

increase sales or decrease expenses to meet this additional outflow. A strategic plan
might also include solutions to "what-if' scenarios. This means having a plan B for
months when profits are down or expenses are unusually high. Sales and promotional
strategies are important here because they allow you to ramp up marketing and to
increase the bottom line without sacrificing efficiencies or service. (Naureman,2015)
3.4 Promotion Mix:
It refers to all the decisions related to promotion of sales of products and services. The
important decisions of promotion mix are selecting advertising media, selecting
promotional techniques, using publicity measures and public relations etc.(Kotler, 2003)
There are various tools and elements available for promotion. These are adopted by firms
to carry on its promotional activities. The marketer generally chooses a combination of
these promotional tools. Following are the tools or elements of promotion. They are also
called elements of promotion mix:
3.4.1 Advertising: Advertisement can be defined as the “paid form of non-personal
presentation and promotion of idea, goods or services by an identified sponsor’.
It is an impersonal presentation where a standard or common message regarding the
merits, price and availability of product or service is given by the producer or marketer.
The advertisement builds pull effect as advertising tries to pull the product by directly
appealing to customer to buy it.
3.4.2 Sales Promotion:
Sales promotion refers to short term use of incentives or other promotional activities
that stimulate the customer to buy the product. Sales promotion techniques are very
useful because they bring:
(a) Short and immediate effect on sale.
(b) Stock clearance is possible with sales promotion.
(c) Sales promotion techniques induce customers as well as distribution channels.
(d) Sales promotion techniques help to win over the competitor.
3.4.3 Personal Selling:

Personal selling means selling personally. This involves face to face interaction between
seller and buyer for the purpose of sale.
The personal selling does not mean getting the prospects to desire what seller wants but
the concept of personal selling is also based on customer satisfaction.
3.4.4 Public Relations:
Apart from four major elements of marketing mix, another important tool of marketing is
maintaining Public Relations. In simple words, public relations means maintaining public
relations with public. By maintaining public relations, companies create goodwill.
Public relations evaluate public attitudes; identify the policies and procedures of an
organisation with the public interest to earn public understanding and acceptance.
Public does not mean only customers, but it includes shareholders, suppliers,
intermediaries, customers etc. The firm's success and achievement depends upon the
support of these parties for example, firm needs active support of middle men to survive
in market, it must have good relations with existing shareholders who provide capital.
The consumers’ group is the most important part of public as success of business depends
upon the support and demand of customers only.
3.5 Techniques of Promotional Strategies
Descounits ‘ a Retsata —<—— Refunds Container Premiums | Permian i aw a all
Packaged Quantity Deal Premiun a — PROMOTION | Full Finance  Samples: J ee ee
Lucky mam |, instant Demers /
« Independent and small retail stores go through periods when daily sales receipts are
down. To increase sales, attract new customers, and retain current customers, many retail
stores implement various sales promotion techniques. While most business owners would
love to sell products at full price all of the time, sales promotions have proven effective at
increasing the overall bottom line in many retail stores.

« An effective technique to increasing sales is to offer certain products at a steep

discount, which are called loss leaders. The importance of loss leaders is the ability to
draw new customers into your store. Most customers not only buy products that are
steeply discounted. but also other products that are selling for regular price. Loss leaders
are effective for selling overstocked items, increasing traffic into your store and building
brand awareness.
• Another sales promotion technique is to offer point-of-purchase items. These items
are placed on the counter near the cash register. Many retail stores place items, such
as jewelry and makeup, near the register. Customers often buy point-oFpurchase
items on an impulse. Many retail owners believe that point-of-sale products result in
an increase in revenue.
• Repeat customers are essential to the success of a retail business. One method to
encourage customers to return is through reward programs made available to loyal
customers. A more recent phenomenon is offering coupons to customers who ‘Like’
the store’s Facebook page. This not only leads to customers coming to your store to
use the coupon, but also allows you to send messages to your customers through
Facebook to keep them informed on new items & sales. Another option is to send a
 coupon or sale notification to all of its past customers that are on the store's email
list. The incentives work well to build loyalty and repeat sales because customers
have a previous history of shopping at the store are likely shop there again.
• Offering free samples is a promotion method retail stores use to entice reluctant
shoppers to make purchases. A free item offered in a promotion should be a low-
cost, high-value item. A sample of a new perfume may be a good product to give
away for some retail stores. It is important to strategically plan a free sample
promotion. Some customers will purchase other items, while others will take the free
sample and leave. If not executed in the proper manner, a free sample promotion
campaign can cause your store to lose money.(Lange, 2005)
3.6 Advertising and its effect

3.6.1 Advertising and Brand Awareness

Now it is very well known that since Brands are coming in by dozens, all one needs is the
confidence to deliver, to just make it happen- by none other than advertising which forms
a vast superstructure with an autonomous existence and an immense influence. Today
there is general agreement that advertising objectives can be set around four broad
themes:-
• The behavioral constructs generating trial purchases and store visit.
• Change in attitude and its measurement
• Positioning of the product and brand building.
• Creating awareness of new products and brands.
Advertising is one of the most important cultural sign systems that reflect and mould our
lives. It is an inevitable part of anyone's life. Even if one does not read the newspaper or
watches television it is impossible to escape the advertising images that pervade our
surroundings, via hoardings, wall paintings, pop material or even the radio, cutting across
all media but limited to none. It is true that Brand Awareness is one of the prime
objectives of Advertising in the modern world. Advertising is the communication link
between the seller and the buyer.
It does not simply provide information about the products and services but is an active
attempt to influencing people to action byan over appeal to reason or emotion. In other
words, advertising does not end with the flow of information from the seller to the buyer;
it goes further to influence and persuades people to action or belief. Advertising, being an
integral part of promotion mix, is a part of the total marketing mix and it influences the
sale of the products as do the other variables of the mix. Together with the product or
brand, price, channel or distribution outlet and personal selling it attempts to achieve the
marketing objectives. (Til, 2005)
3.6.2 Advertising and Consumer Behaviour:-
Relationship consumer behaviour is influenced by various factors, ranging from personal
motivation, needs attitude and values, personality characteristics, socio- economic and
cultural background, age, sex, professional status to social influence of various kinds
exerted by family, friend’s colleagues and society as a whole. Each person has hi /her
own standards of judgments and distinct behaviour in every aspects of his/her role as a
consumer. But, at the same time, underlying the individual differences there are
similarities which make it possible to explain behaviour of specific types or groups of
people. A careful study of consumer behaviour provides the advertiser with deeper
insight of his target segments, which in turn proves to be very valuable in strategic
advertising decisions, especially in

defining the target markets and creating the advertising appeal and message. (Naureman,
2015)
3.6.3 How does Advertising affect consumers?
Advertising, along with a number of other factors like price, distribution, sales force,
packaging, product features, competitive actions and changing buyer needs and tasters
influence sales isolating the effects of advertising is extremely difficult. Advertising
might attract buyers who will be loyal customers for many years to come or might start
the development of positive attitudes or brand equity that will culminate in purchase
much later. Advertising influences consumer and his decision making in a number of
ways. It not only educated him about his problems or needs, provides required
information and assists him in comparing the various alternatives and arriving at final
decision. As it is a cyclical process, it also has impact over the post purchase behavior of
the consumer. Often, the consumers are either not aware of their needs or are confused
about their problems. To them, advertising provides clues; therefore advertising provides
the consumer motives to purchase the advertised product. (Lange, 2005)
As in the present scenario the strategy is to keep on changing or improving the product.
As in the present scenario the strategy is to keep on changing or improving the product or
its features, it becomes imperative top inform the consumers about the minor innovations
and the way it can solve their problems — the problems which the consumers feel and is
at the surface or the problems which had not captured the attention of the consumers.
Advertising also provides the necessary support after the consumer has made the
purchase. If the consumers experience dissonance or discomforts Moving to their
purchase decision, then advertisement reduce this feeling of discomfort by providing
information on the products attributes. It is even more necessary to neutralize the impact
of the advertisements of rival brands. Keeping the above facts in view an attempt has
been made to find out whether advertising has an impact on brand awareness and
preference on men’s garment in the study area of Navi Mumbai, has also experienced the
sift in men's shopping pattern and methodology used as the city wittiness significant
economic, demographic, social cultural development. People of this city are customizing
themselves to the fashion revolution and men are a major contributing factor and greatly
affected by the same as well. New avenues are reshaping and redirecting the general
marketing/shopping culture prevalent. Navi Mumbai is the world’s largest planned city.
3.7 Knowledge Gap
Promotion is a very important aspect to maintain a brand's position in the marketing
sector. It helps the brand to connect with people. VWithout business promotion
companies will have no substantial growth and low visibility in the market. This is what
lacks in Kazo. This affects their sales as it fails to connect with people.
Project Undertaken
Topic ofthe Project: online Return Analysis for Jabong (January' 19-
April 19)
Objective
l. To understand the process of online buying
2. To outline the top reasons for online returns for KAZO across
categories on jabong
Methodology
step 1: Understanding in brief the share ofdifferent online platforms
(Jabong, Myntra, Paytm, Flipkart etc.) in RAZO's online sales
attributing to their importance for the company.
step 2: Studying and analysing the data given by the ecommerce
department with the online return reasons across categories
step 3: Doing a comparative study with other brands in the market
by collecting primary and secondary data and identifying the gaps
which can be overcome by KAZO
Step 4: Recommending steps which can be taken to reduce the
online returns for both the long and the short run.
Literature Review
India's e-commerce market will grow at a 30% compound annual
growth rate for gross merchandise value to be worth $200 billion by
2026, according to investment bank Morgan Stanley.ln a report
titled India 's Digital Leap—The Multi Trillion Dollar Opportunity,
Morgan Stanley said this growth in e-commerce will help grow
market penetration to 12% in the next nine years, versus 2% today.
An increasing number of internet users, all new to e-commerce, will
help lead this growth, the report said."Our analysis of some global
e-commerce companies highlights that two-thirds of the growth in
their e-commerce sales happened due to new users coming online
and shopping, while the balance was driven by existing online
shoppers buying more frequently and/or driving up order values,"
the report said.lndia had 60 million online shoppers in 2016, which
is 14% of the internet user base of the country. This will rise to over
50% by 2026, the report said." What we have seen through
proprietary consumer surveys in the past is that it takes time for
consumers to get comfortable with a channel," Parag Gupta,
executive director, Morgan Stanley, said in an interview. "Generally,
people who have been on the internet for less than two years, don't
transact on the internet (including mobile banking)
So generally they are engaging in basic activities like messaging,
social media, and search, things that don’t involve a monetary
transaction,” he said.
However, once a consumer has been online for more than five
years, they are more likely to buy online. Right now, that’s only 30%
of India’s 432 million internet users.
“The reason for that is very simple, because a bulk of the addition in
the internet base has happened in the last 3 years,” Gupta said.
“That’s when smartphone penetration started ballooning. So a large
base of the internet population has been on the internet for not as
many years as required to get comfortable with the medium. When
does that maturity come through? Most likely 2019,” he said, adding
that the year can be an inflection point for India’s e-commerce
market.
With this comfort, e-commerce customers are also moving to digital
payments.
“On the extent of cash on delivery in e-commerce, there is little
data available publicly to figure out the exact number, so a lot of
this is based on our discussions,” Gupta said. “I think a couple of
years back, cash on delivery was over 60% of e-commerce sales
which has now come down to maybe 55-60%. Secondly, if you look
at UPI and digital wallets, their share has increased to 4-7%. A
couple of years back, that number used to be just about a percent
or two. Clearly COD has given way to other forms of digital
payments.”
But, this growth will still be led by the so-called “horizontal” e-
commerce players, including Amazon India and Flipkart.
“If I look at the way e-commerce has evolved globally, it is generally
the horizontal e-commerce players who have dominated,” Gupta
said. “We have seen this in the US and China. So I believe the
situation should not be very different in India, because the
categories that become large in e-commerce generally happen to be
those that can be dominated by horizontals—which is electronics
and fashion.”
China’s biggest e-commerce firms are Alibaba and Tencent.
This is also why the horizontals attract the highest funding rounds
even after a relatively quiet 2016 and a flurry of potential
consolidation in the market, Gupta said.
“Generally, the funds are now going to segment leaders, and this is
across segments,” Gupta said. “The investors who are investing in
the Indian internet space are coming with learnings from other
markets such as in China and the US. They have all learned from the
opportunities and more importantly from their mistakes which they
are unlikely to repeat in India. One such mistake is trying to
compete against each other, burn a lot of money for a few years,
and then eventually consolidate. If the same is to happen in India
and there is some commonality in the investor base, then
consolidation could be a logical outcome and could happen much
faster.”
Flipkart was in talks to buy e-commerce portal Snapdeal, a deal that
was finally called off in July this year because of differences over
valuation, Mint reported on 31 July. In April this year, Flipkart raised
$1.4 billion and acquired eBay India, Mint reported on 11 April.
ANALYSIS
THE BREAK UP OF RETURN REASONS
Looking at the options available on Jabong for seasons Autumn
Winter’18,Summer ’18 and summer spring’19 from months
january’19 to April’19 ,We find

PRIMARY REASON NO. OF OPTIONS PERCENTAGE

FOR RETURN
COLOUR ISSUE 124 1.00%
DAMAGED/DEFECTIVE 53 0.40%
I CHANGED MY 1480 11.90%
MIND/DID NOT LIKE
THE PRODUCT
NON DELIVERED 1752 14.10%
RETURN
OTHERS 244 2.00%
PRODUCT 166 1.30%
DESCRIPTION ISSUE
PRODUCT PRICE 130 1.00%
ISSUE
QUALITY ISSUE 1189 9.60%
SIZE ISSUE 1972 15.90%
THE PRODUCT DID 5025 40,50%
NOT FIT ME
WRONG PRODUCT 270 2.20%
DELIVERED
GRAND TOTAL 12405 100%

According to the abve break up.the top three reasons for returns are
The product did not fit me (40.05%) of total returns
Size issues (15.9%) of total returns
Non delivered items 14.1% of total returns

The brick-vise breakup of return reasons

CATEGORY NO. OF OPTIONS RETURNED

TOP 4832
DRESS 2879
JEGGINGS 1544
SHIRT 601
JACKET 365
PLAZZO 357
JUMPSUIT 343
CAPE 253
JEW 250
JEANS 239
T SHIRT 237
TROUSER 136
PULLOVER 114
SKIRT 97
BAGS 53
PAJAMA 41
BELT 23
OVERCOAT 17
CULOTTES 17
SLING BAG 7
GRAND TOTAL 124057

THE BREAK UP OF FIVE REASONS FOR EACH BRICK

TOPS

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 2079
Size issue 774
Non delivered return 722
I changed my mind/Did not like 564
the product
Quality issue 401

DRESSES

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 1396
Size issue 426
Non delivered return 328
I changed my mind/Did not like 309
the product
Quality issue 255

JEGGINGS
REAONS FOR RETUEN NO.OF OPTIONS RETURNED
The Product did not fit me 413
Size issue 292
Non delivered return 250
I changed my mind/Did not like 195
the product
Quality issue 148

SHIRT

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 218
Size issue 100
Non delivered return 97
I changed my mind/Did not like 84
the product
Quality issue 60

JACKET

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 198
Size issue 75
Non delivered return 71
I changed my mind/Did not like 50
the product
Quality issue 41
PALAZZO

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 195
Size issue 42
Non delivered return 38
I changed my mind/Did not like 36
the product
Quality issue 25

JUMPSUIT

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 175
Size issue 44
Non delivered return 40
I changed my mind/Did not like 37
the product
Quality issue 32

CAPE

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 75
Size issue 45
Non delivered return 45
I changed my mind/Did not like 39
the product
Quality issue 23

JEWELERY

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 73
Size issue 57
Non delivered return 44
I changed my mind/Did not like 28
the product
Quality issue 14

JEANS

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 75
Size issue 62
Non delivered return 32
I changed my mind/Did not like 28
the product
Quality issue 24

T-SHIRT

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 101
Size issue 38
Non delivered return 37
I changed my mind/Did not like 31
the product
Quality issue 22

TROUSER

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 59
Size issue 48
Non delivered return 13
I changed my mind/Did not like 6
the product
Quality issue 5

PULLOVER

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 27
Size issue 24
Non delivered return 21
I changed my mind/Did not like 16
the product
Quality issue 13

SKIRT

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 31
Size issue 17
Non delivered return 17
I changed my mind/Did not like 14
the product
Quality issue 12

BAGS

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 17
Size issue 9
Non delivered return 8
I changed my mind/Did not like 8
the product
Quality issue 3

BELTS

REAONS FOR RETUEN NO.OF OPTIONS RETURNED

The Product did not fit me 13
Size issue 4
Non delivered return 4
I changed my mind/Did not like 1
the product
Quality issue 1

Recommendations and suggestions

For fit and Size issues

Th information that fit and size issus are the major reasons behind online
returns was given to the buying manager where he duly informed that the
design team along with the production has come up with solutions to
standardize the size chart of KAZO.These improvements will be seen from SS’
2020

According to the findings of the project,the buying manager delisted 8 options

on Jabong with high returns.These options had considerably high rate of
return (<70%) due to size and fit issues.After delisting,the returns should
reduce by 6.17%.

OPTION SEASON RETURNS CONTRIBUTION SALES RETURN

TO OVERALL PERCENTAGE
RETURNS

116094DRSB SS’18 3.53% 1.48% 208 87%

116237BLACK SS’18 3.47% 1.45% 188 94%

116260DRSB SS’18 2.14% 0.89% 169 64%

11331NAVY SS’18 1.39% 0.58% 109 65%

113315BLACK SS’18 1.53% 0.64% 103 76%

115498DRSB SS’18 1.18% 0.49% 66 91%

116348MLTC SS’18 1.00% 0.42% 55 93%

11610SPRCGRN SS’18 0.56% 0.33% 56 71.4%