ITstrategy Project - Pantaloons

Symbiosis Centre for Information Technology
“A constituent of Symbiosis International University”

Accredited by NAAC with ‘A’ Grade
IT STRATEGY PROJECT
PANTALOONS
Group Members:
Anshul Bhandari - 14030241143

Ujval Bucha- 14030241179
Vamsi krishna – 14030241131
Ankur Rokde- 14030241099
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY....................................................................................................................3
2. INTRODUCTION OF COMPANY........................................................................................................3
3. COMPETITIVE STRATEGY OF THE COMPANY...................................................................................4
3.1 Value proposition........................................................................................................................5
3.2 Positioning...................................................................................................................................6
Pantaloons Fashion & Retail Limited 1

3.2.1 Variety Based Positioning....................................................................................................6

3.2.2 Need based positioning.......................................................................................................8
3.2.3 Access based positioning.....................................................................................................9
3.3 Trade off......................................................................................................................................9
3.4 Activities tailored to match positioning and their integration:..................................................10
4. INTRODUCTION TO INDUSTRY OF THE COMPANY........................................................................11
5. ECONOMIC VALUE OF INDUSTRY..................................................................................................12
6. FIVE FORCE ANALYSIS...................................................................................................................13
6.1 Supplier groups and their Power...............................................................................................13
6.2 Buyers and their power.............................................................................................................14
6.3 Possible substitution and the size of threat...............................................................................14
6.4 Possible new entrants and the strength of entry barriers in industry.......................................15
6.5 Existing Competition and threat from them..............................................................................15
7. CONCLUSION................................................................................................................................16
8. REFERENCES..................................................................................................................................17

1. EXECUTIVE SUMMARY
The outlook and concept of buying apparels in Indian context has undergone quite a vast change
in terms of buying behavior and format, thereby making the companies create more and more
innovative ways to woo the customers. Modern apparel retail has transformed in such a way that
they have started encompassing the clothing needs of the all age group and gender in a single
outlet. Not only that, the transformation has come from stores on the corner of roads to expansive
shopping arenas and malls which has started offering not only shopping experience but also has
entertainment and food are provided under one roof. The Indian apparel retail industry had
grown from the previous year by 10.8% in 2012 and reached the value of $9.8 billion and
by2017 it has been forecasted to $15.4 billion, which is an increase of almost 57% from
2012.Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP,
and 17 percent to the country’s export earnings. It provides direct employment to over 35 million
people. The growth would primarily be driven by the surge in demand for readymade apparels in
semi-urban areas, rising income levels and youth population and increasing preference for
branded apparel.
Pantaloons was one such idea – a brainchild of Kishore Biyani of Future Group. Pantaloons is a
multi brand apparel outlet having its presence in 49 cities and 104 outlets in total. Of recently
various international players have entered the Indian market and the others are planning to do so
in apparel sector especially after the recent changes in the FDI policy set by the Government.
Pantaloons has withstood the test of time and managed to survive long enough in the apparel
industry even though the competitors, the new entrants, the buyers demands, the substitute
products causing threat and managing suppliers posed problems – all these helped to shape the
strategy for the times to come ahead.
2. INTRODUCTION OF COMPANY
Pantaloons Retail (India) is one of the leading retailers. It is founded by Mr. Kishore Biyani who
is famously known as India’s “King of Retail”. Pantaloon has completely revolutionized the
retail fraternity. Pantaloons operate multiple retail formats in value and lifestyle segment with
it’s headquarter in Mumbai. Pantaloons is India’s fastest growing premium lifestyle company.
Company brings the latest trends in fashion and clothing styles with innovative designs, concepts
and products.
Pantaloons, previously controlled by the Future Group, have been recently taken over by Aditya
Birla Nuvo Limited, which is India's largest manufacturer of linen fabric.
Word Pantaloon came from Urdu word Pantaloon which meant trousers. The year 1994 saw the
launch of the Pantaloon Shoppe, the menswear store all over the country. In 1994 the company
had a turnover of Rs 9 crore. In the year 1995 John Miller was launched as a formal shirt brand.

In 1997, the Pantaloon family store in Kolkata was launched with an initial investment of Rs 30
lakh.
Pantaloons have vast collection of more than 200 brands, so it provides its buyers incredible and
complete one stop shopping experience. It offers multiple accessories and clothing brands to
different groups of men, women and kids. Pantaloons have its presence across 49 cities and total
103 stores with 26 factory outlets, these stores have wide range of trendy and classy merchandise
which lives to the Pantaloons motto of ‘fresh fashion’.
Variety of products, brands and accessories helped Pantaloons to be one of the best clothing
brands in India. A Pantaloons store generally consists of ready-to-wear western and ethnic
apparel for women and kids, men and exclusive range of accessories for the same.
Pantaloons is part of Aditya Birla Group which is a USD 41 billion Indian multinational
company that operates in almost 36 countries with 120,000 employees across the globe. In the
prestigious Brand Equity Survey, conducted in 2014 Pantaloons is voted as ‘India’s most Trusted
Apparel Retail Brand’. Pantaloons is focused towards gaining consumer trust and confidence and
overall growth while continuing to create fresh fashion.
3. COMPETITIVE STRATEGY OF THE COMPANY
A strategy defines the actions or plans which are designed to achieve goals of an organization
while a Competitive strategy of an organization can be defined as the actions or plans which
represents uniqueness and helps and organization to outperform from its competitors.
This can be done in 4 ways:
 Cost Leadership Strategy: In this strategy, the goal is to offer goods and services at
lowest cost in the industry. The main challenge faced in this strategy is to obtain profits
for a company by reducing its operating cost.
 Differentiation Strategy: This type of strategy deals with providing goods, services,
products or features which are unique and no other player in market is offering or not
able to offer that service, product or feature. The company gets direct advantage in terms
of higher returns by implementing this strategy.
 Innovation Strategy: The goal of this strategy it to introduce a completely new product
or better product or service within a market and thus creates an opportunity to leapfrog
other players in the market.
 Operational Effectiveness Strategy: This strategy deals with increasing the efficiency
of the internal process of the company by making them better than their competitors who
in turn reduce the effort and time required for a particular process.

Pantaloons Fashion & Retail Limited observes the changing tastes and trends of the customer.
This company focuses on the needs of the customer rather than just selling products. Company
looks into the culture and regional consumption pattern very seriously and based on the needs of
the customers, strategies change continuously by choosing those which align with the customer
needs. There has been many transformations starting from discount formats, then changing the
stores to complete family stores and then changing it into a fashion store. After Aditya Birla
Group acquired Pantaloons from Future Group, it framed its new strategy as to leverage the
brand name of Pantaloons and to expand the retail network by investing in high in private brands
to create an economic upturn.
3.1 Value proposition
A value proposition is the perception of customer for any product that explains him its relevance,
quantified value and acts as a unique differentiator from others, thus promising a value to be
delivered.
Pantaloons provide warm and personalized service offerings at its every store, thus providing
unique value proposition.
What Needs
Pantaloons is the fastest growing retailer in India. It is among the top 3 fashion retailers in India.
Pantaloons has created a strong brand image in the entire industry since last 2 decades. It focuses
on the needs of the Indian consumers by focusing on the “Fresh Fashion” by fulfilling variety of
apparel and non apparel needs. Since consumers constantly change their lifestyle in India as
there is an increase in purchasing or spending power as well as there are many new apparel
brands which are continuously coming into the Indian market from various other markets of the
world. This change is noted by Pantaloons, thus it constantly bring innovative designs, products
and concepts as per latest trends in fashion and clothing styles. It retails around 2000 brands
which comprises of In-House Brands, international brands, licensed brands in apparels and
accessories. The In-House Brands is the greatest asset of the company which makes its
customers coming back to its outlets. These In-House brands are unique in the sense that these
are crafted and designed by keeping in mind of the latest fashion trends and needs of the
consumers.
What Price
Pantaloons provide a strong brand portfolio having a vast collection of more than 70 prestigious
brands for the voguish customers. It provides a complete and one stop shopping experience to its
customers. Pantaloons brand portfolio provides a variety of styles that represents class for its
customers. The pricing strategy developed by Pantaloons is as follows:

 Since Pantaloons provide many brand offerings in various apparel and non apparel
categories, the prices of the products varies from brand to brand.
 Pantaloons provide loyalty programmes like green card and payback cards to its
customers to remain connected with them.
 Loyalty programmes gives reward points to its members on purchase of products, provide
discounts and even special offers and discounts on special events and occasion during
promotion.
 It also takes part in offering seasonal discounts by introducing End of Season sale, FLAT
50% sale, Buy one get one free sale etc by offering the products at a lower prices to
attract new and existing customers and make a strong customer connect.
Which Customer
Pantaloons focus on “Indian-ness”, “Fresh Fashion” and “Customer Centricity” keeping in mind
its target customers. The target audience of the Pantaloons is the youth or the aspiring Indians
who like to wear branded apparels with latest fashion and who wants to enter into the world of
brands and fashion and are looking for value for money. The company focuses on the youth of
the country which consists of the major population in the age group of 15-45. Pantaloons also
projects its latest designs by projecting youths in their advertisements by focusing on its main
idea of “Indian-ness” and “Fresh Fashion”.
3.2 Positioning
Pantaloons success can be found out by its positioning in the market. Positioning can divided
into following categories
3.2.1 Variety Based Positioning
Variety based positioning is based on the subset of products and services produced by the
company from an entire range of products and services of an industry. It is based on the choice
variety of products and services rather than customer segments. This type of positioning will
target the wide array of customers but will only satisfy their few or subset of the needs.
Pantaloons is a brand which has positioned itself as one of biggest large format fashion retailers
in India. Pantaloons retail around 2000 brands which comprises of In-House Brands,
international brands, licensed brands in apparels and accessories. It offers a wide range of brands
in various categories like formal wear, western wear, ethnic wear, party wear, active wear and
accessories for men, women and kids providing them a one stop destination from where an entire
family can purchase their outfits and accessories.
Varieties for the Women’s Section include:

Category Brand
Ethnic wear Mix-n-match range – Rangmanch
Fusion wear – Akkriti
Occasion wear – Trishaa
Western wear Fitness conscious wear – Ajile
Trendy casual wear – Honey
Formal Wear Smart formals and evening wear – Annabelle
Varieties for the Men’s Section include following Indian brands as well as some exclusive
brands:
Category Brand
Ethnic wear Mix-n-match range – Rangmanch
Fusion wear – Akkriti
Occasion wear – Trishaa
Western wear Edgy casuals – SF jeans
Sports Wear Preppy British sports inspired collection – Byford
Sports luxe – Ajile
Party Wear F Factor
Formal Wear International brands like Van Heusen, Allen Solly, Peter England
and Louis Philippe
Varieties for the Kid’s in the range of age groups from 1 month to 12 year old teens Section
include:
Category Brand
Infant Wear Chirpie Pie,
Ethnic Wear Akkriti
Casual wear Chalk and Poppers
To meet the needs and demand of the consumers Pantaloons has introduced few following new
brands:
Brand Fashion Style

Candies, New York Young generation who like to draw attention to their style.
San Frisco Jeans Co Edgy styles in denim wear for young men and women.
Byford Sport Lifestyle brand

Alto Moda For Plus sized people who have high fashion style.
Poppers Kids wear brand
Apart from this, Pantaloons has also partnered with some other well established and renowned
brands like Lombard, Bare Denim, Bare Leisure, JM Sport Classic, RIG, Turtle, Spykar, Lee
Cooper, 109F, AND, Chemistry, Global Desi, Biba, Giny & Jony and Barbie.
3.2.2 Need based positioning
This type of positioning is based on serving the needs of the particular group of customers.
Pantaloons offers its product and services based on the needs of the younger generation. They
generally target the upper middle class families of the country. Since there has been a continuous
change in tastes and preferences of the customers and due to rapid increase in income and
purchasing power of the consumers, analysis has shown that there has been a drastic shift
towards the taste and preferences of living lifestyle of the youth of the country. They are moving
towards branded apparels and accessories. New consumers are entering into the world of branded
apparels and many customers look for the fresh fashion style with a touch of Indian-ness and
ethnicity which attract the new and existing customers.
Customers need variety of apparels based on their daily requirements which represents them as
best in style and fashion. In order to cater to the needs of the customers of fresh fashion
Pantaloons has its own In-House brands where designing and crafting is done by Pantaloons
Design Studio for providing best in class styles and fashion trends.
Pantaloons has positioned itself based on the needs of men, women and kids as follows:
Formal Wear: These types of apparels are suitable for formal occasions like dinner, office,
dance, social functions etc.
Western Wear: It is category of men’s and women’s clothing which can be very informal like a
t-shirt and a blue jeans or it can be some pioneer clothing or some cowboy gear.
Ethnic Wear: It is an outfit which is commonly accepted in certain communities. Ethnic designs
are based on the different cultures of a community. Each community has its own ethnicity which
resembles their way of living and standard. Indian ethnicity consists of various forms like Sari’s,
Salwar Suits, Churidar, Kurta Pyjamas, Sherwani etc. for various Indian occasions like festivals,
marriage ceremonies etc.
Party Wear: This category of outfits are required for occasions like cocktail parties, garden
party, costume party where a person through its outfit should be resembled in a light mood and
party lover.

Sports Wear: Sportswear is worn during some physical exercise which includes clothing and
footwear for practical and safety reasons. Typical sport garments include shoes, shorts,
tracksuits, polo shirts, tennis shirts, jockstrap etc.
Besides apparel section Pantaloons also offers accessories like watches, make up kits, jewellery,
bags etc. on the entrance of the store which attracts the customers while they enter and leave
from the store.
The needs of the customers also include getting discounts on special occasions, end of season
sales, summer sale, winter sale etc. In order to cater this need Pantaloon has come up with green
cards, Payback card which offers special discounts, reward points etc to their member customers
and some other offers like Flat 50%, up to 50% etc is available for all other customers.
3.2.3 Access based positioning
Access based positioning is done based on the accessibility of the customers in different ways. It
can be based on customer geography or any other activity which effectively and differently give
access to reach their customers.
Since Pantaloons is focused on mainly upper middle class of the country living in urban areas
like town and cities, for that the company has entered into following strategies:
Building Pantaloons Stores: Pantaloons has 104 fashion stores till now across 49 cities and
towns. It is constantly expanding its market into the rest of India. By providing a nice shopping
experience and with an aim of one stop destination for an entire family, Pantaloons believes in
creating fashion stores where a customer can get the best shopping experience. It gives
opportunity to the customer in that town or city to go to the store and look for the new fashion
styles which are prevailing in the market.
Online Shopping: As the trend of online shopping is increasing at a very fast pace in Indian
market, so to increase to customer reach Pantaloons has also partnered with the online stores like
Trendin, jabong and Flipkart.
3.3 Trade off
For a company to become successful, it has to take into consideration some trade-offs which are
useful for the future growth and increase in the profits of the company. Few of the trade-offs
identified for the Pantaloons are:
Product Price: Since Pantaloons target audience is the upper middle class families of the Indian
society. Managers look towards sales and margin of each category. The main motive of
Pantaloons is to keeps products of different size, brand, fabrics, design, shape and color with
varied price points. It limited its range of products which are affordable and loved by their target
audience as part of their strategy.

Distribution Channel: The products of Pantaloons fashion stores were available only on its
stores or some e-portals only. It does not sell its In-house brands to local market or other retail
stores to gain proprietary advantage over other brands and to attract customers to their outlets
and increase customer reach.
Rural Retailing: Since Pantaloons is focused on its expansion to cities and towns, so it also has
a scope of rural retailing. But keeping into consideration the profit , investment and expenditure
in rural areas it has not entered into rural retailing.
Apparels for Older Generation: Pantaloons has done trade-off by focusing only on the younger
generation who are looking for fresh fashion styles. Since older generation are not much
conscious about fashion styles and older population also accounts less as compared to the
younger population, so it let to make a decision to focus only on younger generation as keeping
products for older generation will divert strategy of fresh fashion as well as it may also occur that
stocks may remain unsold kept for older generation as they may fail to attract this generation.
3.4 Activities tailored to match positioning and their integration:
Consistency with positioning

In order to position the Pantaloons as one of the biggest fashion retail store in India, for this a
new management team has been formed and it is spending heavily on the processes, people,
expansion of customer reach, increasing the productivity of the retail stores and increasing the
brand portfolio. Company is opening new stores and has recently introduced three new brands to
enrich their brand portfolio. In order to increase the brand portfolio of menswear section it has
started retailing brands of the Madura Fashion & Lifestyle which is a part of Aditya Birla Nuvo
group. In order to retain their employees it constantly focuses on personal growth of employees
and to increase the talent pool among their employees it has opened Gyanodaya which is world
Class University having partnerships with world class resources, faculties and corporate so as to
ensure that every employee remains in the learning mode.
Reinforcing
In order to increase the selling and maintain the sustainability of the existing stores it has
refurbished 22 stores through infrastructure and assortment upgrade. The company has targeted
21 stores to refurbish in this year. As a part of customer connect it has implemented loyalty
programmes like green card and payback cards where it gives reward points on every purchase
or special discounts to its members on special occasions and gives invitations on special events
or promotions. Company also has largest carpet area as compared to its competitors in retail
industry.

Optimization of efforts
As the company was increasing its market base by opening new stores, so in order to increase the
productivity and increase the efficiency of supply chain, trend analysis, procurement etc.,
Pantaloons decided to implement SAP in 2003 to keep itself competitive from other competitors
in the retail industry. After successful implementation of SAP, it went ahead to implement
warehouse management system with RFID technology, Customer relationship management
solution and customer intelligence solution. It also implemented solutions for Inventory and
Promotion optimization techniques. In order to reduce the risk, the company has also defined
internal control which complies with the rules and regulations and regular internal audits and
checks are performed to ensure that all the functions and processes are working correctly.
4. INTRODUCTION TO INDUSTRY OF THE COMPANY
Pantaloons belong to the retail Industry. Retail in India is the second largest employer in the
country after the agriculture sector. India is most attractive emerging market so it became hot
destination for retail companies. In most developed countries, retail is seen as one of the major
drivers of economic growth. Retailer is the link between consumer and producer.
Retail in India is mainly classified into two categories:-
A) Unorganized:-Unorganized sector mainly consists of general stores, conventional kirana
stores etc.
B) Organized: - Organized sector consists of shopping malls, supermarkets, retail chains.
Organized retailers are licensed for trading activities and registered to pay taxes to the
government.
Pantaloons comes under organized category. India has Over 13 million retail outlets which is
largest number of retail outlets in the world they are mostly of unorganized sector and account
for 95-96% of total Indian retail industry. But with the increase in the buying power of
consumers, globalization, improved lifestyle the organized sectors growth is expected to
increase.
Growing middle class can be called as important factor in contributing to the retail sector growth
in India. By 2030, it is estimated that 91million households will be ‘middle class’ right now the
value is 21million.

Sr. Indian Retail Group. Market Research

No.
1 Pantaloon retail 65 Stores and 21 factory outlets in 35 cities, 2 million
square feet space
2. Shoppers Stop 51 stores in 23 cities, 3.2 million square feet space
3. Spencer Retail 200 stores in 45 cities, 1 million square feet space
4. Reliance Retail 708 mart and supermarkets, 20 wholesale stores
in 15 cities
Important Indian Retailers.
Over the last decade, Indian retail sector has gone major transformation and it noticeably shifting
towards organized retailing. According to study conducted by ‘Yes Bank- Assocham’ it is
expected that retail market will reach a whooping Rs. 47 lakh crore by 2016-17, Retail industry
is expanding with compounded annual growth rate of 15 percent.
With the sector opening up to foreign direct Investment, tremendous potential and huge
population; India is set for high growth in retail market and it will also provide a platform for
new opportunities.
5. ECONOMIC VALUE OF INDUSTRY
Indian retail industry is one of the fast growing industry many new players are entering the
market. India is the fifth largest destination for retail market. This industry accounts for around
10% of country GDP and around 8% of employment in India. Indian retail market is expected to
increase by two fold from US$600 billion to US$ 1 trillion by the end of year 2015 driven by
attitude shits, urbanization and income growth. Modern retail market is expected to increase by
around 20% and traditional retailing is expected to grow by 10% and the overall retail market is
expected to grow by 12% in the next 5 years. This growth is not limited to urban areas but also
growing to rural areas.
Size of fashion and apparel retail industry in India
Fashion keeps on changing from time to time and this industry is considered to be the fast
growing industry in India. Fashion industry contributes to about 4% of GDP and 17% of
countries export earnings. It also contributes to 14% of industrial production. Fashion and
apparel exports are expected to increase to 8% by 2020 with a value of $82 billion. Apparel
industry is expected to grow at CAGR of 9.5% to reach $223 billion by 2021 from $89 billion in
2011. In India, 95% of total sales happen in department stores, 70% in hypermarkets such as Big
Bazaar, Spencer’s Retail etc. The men’s wear segment has the highest scope of growth. This
segment is considered as the most profitable business in retail industry after food

6. FIVE FORCE ANALYSIS
6.1 Supplier groups and their Power
Suppliers of pantaloons include the people who provide raw materials for making final products
and also the finished products to sell in pantaloons store. Pantaloons have around 30,000
suppliers of different products ranging from small shops to multinational corporations.
Pantaloons sell different range of apparels and accessories from world’s renowned brands like
Bare Denim, Urbana, Scullers, John Miller, Indigo Nation, Van Heusen, Allen Solly, Peter
England and Louis Philippe. Bargaining power of suppliers for pantaloons is very low as there
are many potential suppliers in the Indian market for apparels and accessories. Switching cost of
pantaloons is less as they are directly selling the finished products from the suppliers and the
switching costs for the change in suppliers for raw materials of their own products is also less as
the materials supplied are generic. Switching costs are high only if the suppliers are providing
machinery to pantaloons with advanced technology for manufacturing of their own products.
Suppliers of pantaloons are not supplying any differentiated products compared to others. So
they cannot excise any bargaining power on pantaloons. Suppliers of raw materials to pantaloons
are small in size, do not have sufficient funds and highly focused infrastructure. Hence there is
less chance of forward integration. But forward integration is possible with the suppliers of
finished products. They are international brands and won’t loose the opportunity if they will earn
more by establishing their own stores. This is also evident in recent years as we can see many
international brands like allen soley, arrow etc are establishing their own stores. We cannot find
any substitute for apparels, so suppliers have some bargaining power for apparels. But in case of
accessories there are many substitutes. For example instead of wrist watches people can use
mobile phones for getting time of the day. So they have least power in case of accessories. After
considering all the factors we can say bargaining power of suppliers is minimal except in some
special cases.

6.2 Buyers and their power
Buyers of pantaloons products are from different diverse communities. Their products are sold in
every corner of urban India
Buyers of pantaloons are of two types
 Business to consumers (middle class and upper middle class who directly purchase from
stores)
Retailers and distributors who directly purchase from pantaloons manufacturing unit buy in large
volumes. So they keep pressure for high discounts Products provided by pantaloons are
standardized and undifferentiated compared to other competitors. So buyers try to find an
equivalent product by trying to change from pantaloons to other competitor. Switching costs of
buyers are negligible. So they can easily shift from pantaloons to other vendors. The consumers
in India are highly price sensitive. so there is a fierce based competition among competitors in
retail industry. Also to increase the market penetration there is a fierce price war. With the
development of internet and e commerce, buyers have easy access to the information on different
offers and schemes of other providers through huge marketing and advertisements, hence they
can bargain for the better deal and discounts. On the whole pantaloons provide similar products
with less or no differentiation. Hence buyers have high bargaining power.
6.3 Possible substitution and the size of threat
Substitutes are the product with improving performance/price tradeoffs relative to present
industry products. In the Indian retail market there is high threat of substitution because of its
unique market structure. Indian consumers have large number of options to choose. Retail stores
deal in wide range of product and services. So, whatever clothes are available in Pantaloons
stores will also be available with other competitors as well. Also, there are threats from online
ecommerce sites, so that consumer can purchase the apparels without visiting the physical stores.
Online retail business is the substitute, by selling products through websites to the consumers.
This online retail stores also provides the products that customers offered to their doorsteps. Still
most of the consumers prefers to buy clothes from physical stores rather than online.
There are small retailers, who also acts as substitution for the pantaloons retail stores, but
consumers have more preference to the stores with many brands are present in a single store. So
size of threat from small retailers can be considered as negligible.

6.4 Possible new entrants and the strength of entry barriers in industry
New entry to apparel industry is very easy, as the capital requirement is not in huge numbers.
Right from sole proprietorship to big players, entry to this line of business is not tough. Any new
entrant has to compete with the existing player in terms of design, collection of clothes or price.
With the raining of discounts scheme and new designs, the new entrants just have to do the right
promotional activity of such schemes and make unique designs of apparels to establish
themselves in this market.
The possible new entrants who can pose threat for Pantaloons are:
 Foreign brands whose outlets are opening up in India as per the norms, where the
Government is allowing up to 100% FDI in single-brand retail and 51% FDI in multi-
brand retail.
 Online E-Commerce websites like myntra.com, jabong.com, amazon.com, flipkart.com
etc that have come up recently are the new entrants as a multi brand outlet for apparels.
With e commerce channel available, distribution is democratic. Buyers can substitute in a
click.
 Big companies with deep pockets like Reliance and Future group are diversifying their
business and recently have come up with their own multi brand retail store
 According to the current norms of the Government, the single brand retail have 100%
FDI. Players like Zara, Forever 21, US Polo, and Tommy Hilfiger etc are entering India
and expanding at a very rapid rate
 Regional level apparel shops hosting multi, single brand and non branded
Though the companies with deep pockets who want to enter this industry can achieve economies
of scale, but the fact that the cost of production of apparels in India is not very high, the small
and medium level of capital investment driven companies having an intention to enter, find the
profit margin appealing enough to take a step forward.
Lastly, the switching cost is low and the product differentiation is not very high. Therefore it is
easy for new entrants to enter this market. Overall, the threat of entry is high for this industry.
6.5 Existing Competition and threat from them
In the multi brand apparel segment they face major competition from – Shoppers Stop, Reliance
Trends, Westside and Lifestyle. All these outlets are on the same lines of Pantaloons in their
format and the factor of keeping multi brand apparels in their outlets.
Off late, the e-commerce industry has started posing threats to not only Pantaloons, in the multi
brand outlet, but the other brick and mortar multi brand outlets. With competitive pricing, heavy

discounts and price wars, the e-commerce industry has intensified the competition for Pantaloons
and has forced them and the others to provide customers the discounts.
This has severely affected the profit of Pantaloons. From the sources of moneycontrol.com and
pantaloons website, it is gathered that the company has made a loss of approximately 228 crore.
This can be attributed to the fact that Pantaloons had given several offers and price discounts on
their clothing line to sustain in the competition. The biggest advantage e-commerce players have
is that they do not have a brick and mortar store, which reduces their cost, and also the
manpower, is less used when compared to Pantaloons retail.
Out of all their retail chain outlet competitors, Pantaloons has been making loss.
7. CONCLUSION
Pantaloons after acquired by Aditya Birla Group, it has became the largest fashion retailer chain
in India. The company is focused on expanding its business to each and every corner of the
country which includes tier-2 and tier-3 cities. In India, since majority of the population is in the
range of 15-45 age group, so the company has focused on providing its services to this particular
age group. There are frequent changes in the lifestyle and purchasing behavior of this age group,
so the company’s strategy aligns with the behavior of the consumer’s behavior. The competitive
strategy of the company is based on creating In-house brands as well as selling international and
licensed brands for every category i.e., men, women and children. It is also focusing on latest
fashion styles with “Indian-ness” and ethnicity. The company is also expanding its geographical
reach by opening stores in various other locations along with this it is also strengthening its
brand portfolio by introducing new brands in their stores. Based on the power of consumers,
suppliers, substitutes, threat of new entrants and existing competitors, the company is trying its
best to create strategy which helps the company in strengthening its position in the industry.
Along with this, since initially it is increasing its investment in infrastructures and assets, they
are focused on making their balance sheets stronger in the coming years with increasing their
productivity and optimizing the sales. Since e-commerce is also expanding so in order to
increase their customer base they have collaborated with some e-commerce giants to sell their
products. So, finally the company is strongly focusing expanding retail network as well as
investment in high margin private labels to increase their economic value.

8. REFERENCES
1. Pantaloons Fashion & Retail Limited (2014). Annual Report of Pantaloons Fashion & Retail Limited for
the year 2013-14. Retrieved from
http://pantaloons.com/pdf/investors/financial_reports/Annual_Report_2015.pdf.
2. Adityabirla.com,. (2015). Pantaloons Fashion & Retail is India's fastest growing premium
lifestyle apparel company. Retrieved 1 August 2015, from
http://www.adityabirla.com/businesses/Profile/Pantaloons-profile
3. Entrepreneurial Insights,. (2014). Bargaining Power Of Suppliers | Porter's Five Forces
Model. Retrieved 1 August 2015, from http://www.entrepreneurial-nsights.com/bargaining-
power-of-suppliers-porters-five-forces/
4. Ibef.org,. (2015). Retail Industry in India, Retail Sector In India, Indian Retail Industry.
Retrieved 3 August 2015, from http://www.ibef.org/industry/retail-india.aspx
5. Moneycontrol.com,. (2015). Pantaloons Fashion & Retail Competition, Pantaloons Fash

Comparison with Competitors. Retrieved 6 August 2015, from
http://www.moneycontrol.com/competition/pantaloonsfashionretail/comparison/PFR#PFR
6. Networkmagazineindia.com,. (2006). Pantaloon: ERP in retail - Case Study - Network

Magazine India. Retrieved 1 August 2015, from
http://www.networkmagazineindia.com/200703/casestudy02.shtml
7. Pantaloons.com,. (2015). Pantaloons. Retrieved 2 August 2015, from

http://pantaloons.com/company/about-us/overview
8. Scribd,. (2010). Strategies of Pantaloon Retail (India) Limited. Retrieved 2 August 2015, from
https://www.scribd.com/doc/29861276/Strategies-of-Pantaloon-Retail-India-Limited#scribd
9. Slideshare.net,. (2015). RESEARCH ON APPAREL FASHION RETAIL INDUSTRY IN

INDIA. Retrieved 4 August 2015, from http://www.slideshare.net/vasumijm/research-on-
apparel-fashion-retail-industry-in-india-32537177

10. UKEssays,. (2013). Introduction To Pantaloons Retail India Limited Marketing Essay.
Retrieved 4 August 2015, from http://www.ukessays.com/essays/marketing/introduction-to-
pantaloons-retail-india-limited-marketing-essay.php#ixzz3hyOGRcqk
11. UKEssays,. (2013). Pantaloons Retail India Limited Marketing Essay. Retrieved 1 August
2015, from http://www.ukessays.com/essays/marketing/pantaloons-retail-india-limited-
marketing-essay.php
12. (2014) (1st ed.). Retrieved from http://www.technopak.com/Files/fDI-effects-on-indian-

fashion-industry.pdf
13. (2014) (1st ed.). Retrieved from http://scholarsworld.net/english/wp-

content/uploads/2014/01/Paper-8.pdf

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Pantaloons Fashion & Retail Limited 1

3.2.1 Variety Based Positioning....................................................................................................6

Pantaloons Fashion & Retail Limited 2

Pantaloons Fashion & Retail Limited 3

3. COMPETITIVE STRATEGY OF THE COMPANY

Pantaloons Fashion & Retail Limited 4

3.1 Value proposition

Pantaloons Fashion & Retail Limited 5

Pantaloons Fashion & Retail Limited 6

Brand Fashion Style

Pantaloons Fashion & Retail Limited 7

3.2.2 Need based positioning

Pantaloons Fashion & Retail Limited 8

3.3 Trade off

Pantaloons Fashion & Retail Limited 9

3.4 Activities tailored to match positioning and their integration:

Consistency with positioning

Pantaloons Fashion & Retail Limited 10

4. INTRODUCTION TO INDUSTRY OF THE COMPANY

Pantaloons Fashion & Retail Limited 11

Sr. Indian Retail Group. Market Research

5. ECONOMIC VALUE OF INDUSTRY

Pantaloons Fashion & Retail Limited 12

6. FIVE FORCE ANALYSIS

6.1 Supplier groups and their Power

Pantaloons Fashion & Retail Limited 13

6.2 Buyers and their power

6.3 Possible substitution and the size of threat

Pantaloons Fashion & Retail Limited 14

6.5 Existing Competition and threat from them

Pantaloons Fashion & Retail Limited 15

Pantaloons Fashion & Retail Limited 16

5. Moneycontrol.com,. (2015). Pantaloons Fashion & Retail Competition, Pantaloons Fash

6. Networkmagazineindia.com,. (2006). Pantaloon: ERP in retail - Case Study - Network

7. Pantaloons.com,. (2015). Pantaloons. Retrieved 2 August 2015, from

9. Slideshare.net,. (2015). RESEARCH ON APPAREL FASHION RETAIL INDUSTRY IN

Pantaloons Fashion & Retail Limited 17

12. (2014) (1st ed.). Retrieved from http://www.technopak.com/Files/fDI-effects-on-indian-

13. (2014) (1st ed.). Retrieved from http://scholarsworld.net/english/wp-

Pantaloons Fashion & Retail Limited 18

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