Prt--Porte : A Study of the Designer Label Industry In Ahmedabad

GROUP MEMBERS
Vidhi Amin Mansi Dangarwala Nishit Ganatra Prateek Jhalani Nidhi Kachhela Niraj Mulani Dipan Patel Shivangi Raja Hiral Thakkar 108 129 146 159 161 227 246 263 348

FLOW OF PRESENTATION
Objectives Scope Research Methodology Limitations Literature Review Pilot Testing Industry Analysis Analysis of Users and Non-Users Hypothesis Formulation and Testing Recommendations Conclusion

OBJECTIVES

OBJECTIVES
Primary Objective
To make an Industry Analysis of the Designer Label Industry in Ahmedabad To study the consumer behavior in the industry in Ahmedabad

Secondary Objective
To give marketing strategies for the upcoming designers in the industry in Ahmedabad

SCOPE

SCOPE
The scope for understanding the consumer behavior of the users and non-users was restricted to West Ahmedabad The designers interviewed belonged to the city of Ahmedabad only

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Identification of the topic Defining the research topic

Pilot survey
Deciding the type of research
Survey Analysis Exploratory Research

RESEARCH METHODOLOGY
Deciding the research approach
Quantitative Research Qualitative Research

Sampling process & sampling size

sampling unit sample size sample method

RESEARCH METHODOLOGY
Collection of Data
Primary data Secondary data

Analysis of data

Presentation Findings

LIMITATIONS

LIMITATIONS
Results may be applicable to Ahmadabad only. Populations representation through Sample

Less number of interviews of designers

Limitation of the survey method Time as a limitation

LITERATURE REVIEW

INTRODUCTION
Indian Textile Industries Statistics Expansion in the last decade Growth during 2008-12

FACTORS OF THE GROWTH

Exposure at International forums Programme on Business of Fashion : Strategic Brand Management Establishment of Fashion Foundation of India

CONSUMER BRAND AWARENESS

India Among the most brand conscious countries in the world Consumer spending Increased at 7.1 % 46 % Males & 38 % Females vouch for brand showrooms

CONSUMER BRAND AWARENESS

Employment opportunities for around 50,000 skilled professionals Fashion Institutes across the country with R&D facilities

CHANGING FACE OF INDIAN FASHION INDUSTRY

Emergence of the Boutiques Fashion on the Ramp Budding Designers

DIFFERENTIATION IN THE FASHION INDUSTRY

Haute Couture Prt--porter Avant Garde

DIFFERENTIATION IN THE FASHION INDUSTRY

Chambre de commerce et d'industrie de Paris based in Paris, France To earn the right to call itself a couture house members of the Chambre syndicale de la haute couture must follow some rules.

GROWTH IN THE INDUSTRY

Wills Lifestyle Fashion Week saw deals worth US$ 16 million Major Bi-annual events are now joined by two more events The industry is worth around US$60 million, but is expected to top US$150 million by 2012

GROWTH IN THE INDUSTRY

Designers are moving away from focusing only on clothes for weddings Expected growth in the industry Strategic tie-ups

FACTORS AFFECTING BUYING BEHAVIOUR

Technological Factors
Latest Information
Fashion Houses Latest Machinery

Manufacturing
Branding

Psychological Factors
Texture of Material
Society

FACTORS AFFECTING BUYING BEHAVIOUR

Aesthetic Factors
Multinational Companies Covers All Segments

Economic Factors
Opportunity to Spend Adapting New Cuts and Colours

DESIGNER LABELS IN AHMEDABAD

Focused on Traditional and Ethnic wear More collections than before

DESIGNER LABELS INDUSTRY IN AHMEDABAD

Major designer outlets in the city:
Ritu Kumar Shyamal Bhumika Satya Paul Elan Monsoon AND (Anita Dongre) Luxuria Purvi Joshi Anshus Virtues Essence

PILOT TESTING
USERS

How Frequently do you make purchases

68% 80 70 60 50 40 30 20 10 0

60 50 40 30 24%

53%

23% 10% 0% Regular Wear Occasions Festivals Others, please specify

20 10 0 Twice a month Once a month

12% 6% 6%

Once in two month

Once in six months

Other

How much do you spend each time you make the purchases
60 50 40 30 20 10 0 56% 36% 0% 8% 0% 0%

Importance of the following factors while making a Purchase Decision

Price
70 60 50 40 30 20 10 0 63%
70 60 50 63%

Quality

30%

37%

40 30 20 10 0 0% 0%

4%

4%

Very Important Neutral Not Important Important

Very Important

Important

Neutral

Not Important

Brand Name
48% 50

Varitey Offered
60 52% 37%

40
30 20 10 0 Very Important Important 7%

33%

50 40 30
11%

20 10 0 4%

7%

Neutral

Not Important

Very Important Important

Neutral

Not Important

Agreement/Disagreement with the following statements

Designer brands are usually overpriced for what they are
59% 60 50 40 30 20 10 0 70 60 50 40 30 20 10 0

Designer brand are usually of significant quality than standard brands

64%

22% 7%

11%
0%

12%

12%

12% 0%

Strongly Disagree Nither Agrees Strongly Disagree Agree Agree nor Disagree

Strongly Disagree Nither Agrees Strongly Disagree Agree Agree nor Disagree

People who wear designer brands are trying to project social status
35% 30% 25% 20% 15% 10% 5% 0% 33% 26% 11%

15%

15%

Strongly Disagree Nither Agrees Strongly Disagree Agree Agree nor Disagree

Rank the following in the order of your preference as to why do you prefer designer labels over normal brands
1st rank given by Users
100 80 60 40 20 0 81% 70 60 50

2nd rank given by user

63%

11%

7%

40 30 22%

20
10 0

15%

Design

Status Symbol

Customization

3rd rank given by User

67% 70 60 50 40 30 20 10 0 Design Status Symbol Customization 4% 30%

How do you get to know about the designer label

4%

22% word of mouth Advertisment

Newspaper Article 74%

33% Accidental one time purchase

PILOT TESTING
NON USERS

Factors that restrict people from buying Designer Wear

51% 60 40 20 0 24%

Designer brand are usually of significant quality than standard brands

70 60 50 40 30 20 10 0 63%

11%

14%

19% 3%

9%

6%

Over priced

Lesser variety

Few designers in town

Value for money

Strongly Disagree Niether Disagree agree nor disagree

Agree

Strongly Agree

Designer brands are usually overpriced for what they are

50 40 30 44% 38%

People who wear designer brands are trying to project social status
34% 35 30 25 20 15 10 5 0 23% 9% 3% Strongly Disagree Disagree Niether agree nor disagree Agree Strongly Agree 31%

20
10 0 3% 3%

12%

Strongly Disagree Niether Disagree agree nor disagree

Agree

Strongly Agree

INDUSTRY ANALYSIS

DESIGNERS INTERVIEWED
Mr. Bhavin Trivedi Mr. Umang Hutheesing Mr. Tapan Vyas Mr. Digvijay Singh Mr. Asif Sheikh Ms. Avani Doshi

INDUSTRY ANALYSIS
Micheal Porters Five Force Model
Threat of Entry Bargaining Power of Suppliers Bargaining Power of Buyers Threat from Substitute Products Threat from Competitors

FINDINGS FROM THE INTERVIEW

Entry Barriers Creativity plus Salability Uniqueness is the key Clients Bargaining Power Employment Substitutes

ANALYSIS
USERS

Types Of Designer Wear They Purchase

44% 45% 40% 35% 30% 25% 21% 35%

Why They Buy Designer Wear

30% 30% 25% 20% 15% 15% 10% 5% 0% 15% 15% 15% 15% 14%

20%
15% 10% 5% 0% Ethnic Western Casuals

Importance of the following factors while making a purchase decision

Most important Deciding Factor for purchasing Designer Wear
40% 37% 30%

Second most important Deciding Factor for Purchasing Designer Wear

35% 30% 32% 20%

35%
30% 20% 15% 10% 5% 0% 25%

percentage

25% 20% 15%

11% 6% 5% 4% 3% 4%

11%

10%

10%
5% 0%

7%

10% 4% 6%

Importance of the following factors while making a purchase decision

Least Important factor in deciding to purchase Designer Wear
30% 20% 20% 10% 1% 0% 12% 15% 11% 21% 18%

2%

Importance given to the following Factors

70%

66.65%

60%

50% 40% 40% 32% 30% 21% 20% 15% 8% 5% 1% 0.85% 0.40% Comfort 28% 37%

45% 39%

48%
Not Very Important Not Important Neutral Important Very Important

38%

26%

10% 13% 6% 12%

10%

4%
2.50% Variety Offered

2% 0.50% Style

0%
Price Designer Label

Agreement/Disagreement with the following statements

Designer Brands are usually Overpriced for what they are
50% 50% 40% 30% 20% 10% 0% 10% 11% 17% 12% 50% 40% 30% 20% 10% 0%

Designer Brands are usually of Significant Quality than Standard Brands

50% 16% 19% 10%

5%

Strongly Disagree Neither Agree Disagree Agree nor Disagree

Strongly Agree

Strongly Disagree Neither Agree Strongly Disagree Agree Agree nor Disagree

People who wear Designer Brands are trying to project Social Status
30% 20% 10% 0% 6% 26% 28% 27% 13%

Designer Wears are Unique and Stylish

60% 50% 40% 30% 20% 10% 0%
52%

23% 2% 8% 15%

Strongly Disagree Neither Agree Strongly Disagree Agree Agree nor Disagree

Strongly Disagree Neither Agree Disagree Agree nor Disagree

Strongly Agree

Designer Outlets from where people make purchases

30% 50% 40% 30% 20% 10% 0%

Frequency Of Purchase
24% 20% 26% 19% 25% 20%

43%
35% 18% 16% 22% 25% 5% 10%

42%

15%

9%

15%

15% 10%

11%

5%
0% Twice A Month Once A Month Once In Once In Six Two Months Months Other

Amount Spent On Every Purchase

68% 70% 60% 50% 40% 30% 20% 10% 0%

23% 6% 3%

Amount Spent On Every Purchase

68% 70%

60%

50%

40%

30%

23%

20% 6% 3%

10%

0% Below 25000 25000-50000 50000-100000 100000 & above

Percentage of people buying Designer Wear from outside Ahmedabad

57% 60% 40% 20% 0% Yes No 43%

Places outside Ahmedabad from where people purchase Designer Wear

76% 80% 60% 40% 20% 0% 30% 11% 5% 8%

Reasons why people prefer places outside Ahmedabad to make purchase of Designer wear
80% 60% 66% 26%

40%
20% 0% VARIETY 7%

18%

15%

VISITING EXTENDED FREQUENTLY FAMILY

FASHION HUB

PRESENCE OF FILM INDUSTRY

Source from which Fashion Style is Inspired

50% 40% 30% 24% 34% 27% 12% 44%

People whom users refer to while making the purchase

50% 50% 40% 30% 20% 10% 0% 40% 41%

6%

20%
10% 0% Overseas Collection Movies Fashion Celebrities Magazines

4%

Others

Designer Outlets in Ahmedabad people are aware of

80% 60% 40% 20% 0% 71% 58% 41% 47% 32% 30% 12% 20% 28% 25% 7% 66%

Mediums through which people came to know about the Designer Outlets in Ahmedabad
50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 44% 39% 36% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Mediums through which people got to know about the Designer Wear outside Ahmedabad
46% 48% 30% 30% 15% 16% 10%

14% 6%

15%

Personality Traits
34%
35% 30% 25% 20% 15% 10% 5% 0% 24% 10% 4% 13% 15% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Personality Trait
48%

14% 7% 5%

14%

12%

Personality Trait
60% 50% 40% 30% 20% 10% 0% Highly Unsocial Less Unsocial Unsocial Less Social Social Highly Social 14% 3% 5% 9% 18% 51% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Personality Trait
43%

23% 7% 5% 9%

13%

Personality Trait
35% 30% 25% 20% 15% 10% 5% 0%
33% 27% 10% 13% 11%

Personality Trait
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
46%

6%

18% 5% 3%

14%

14%

Personality Trait
35% 30% 25% 20% 15% 10% 5% 0% 32% 28% 15% 8% 10% 7%

FINDINGS FROM THE USER

Age Group 18 to 30 years Fashion Style Inspiration Increase in purchase of Western and Casual Wear Frequency of Purchase Once in 6 months Spending on each time of Purchase Below Rs. 25000

FINDINGS FROM THE USER

Popular Designer Outlets ShyamalBhumika, Ritu Kumar & Anshus Popular Destinations Mumbai, Delhi, Kolkata & Bangalore Influential Communication Word of Mouth Reference Groups Self Assessment, Family & Friends Traits Social, Independent, Experimental, Rational

ANALYSIS
NON-USERS

Fashion to them is...

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 46% 40% 35% 26% 18% 30% 20% 25% 20% 15%

Fashion Style Is Inspired From...

37% 26% 36% 26%

24%

10% 5%
Looking cool & hip Looking sober & mature Conformity A way to express inner self

0%
Overseas collection Movies Fashion Celebrities Magazines Others

Designer Brands Are Usually Overpriced

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
46%

30%

12%
5% 7%

Strongly Disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

Designer Brands have Significant Quality Than Other Brands

50% 40% 30% 20% 10% 0% Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 3% 17% 10% 26% 44%

People Who Wear Designer Brand Are Trying To Project Their Social Status
50% 40% 30% 20% 10% 0% 42% 13% 21% 19%

5%

Strongly Disagree Neither Disagree agree nor disagree

Agree

Strongly agree

Designer Wears Are Unique & Stylish

50% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

25%

10% 3%

12%

Strongly Disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

I See Myself Purchasing Designer Wear In Future

50% 40% 30% 20% 10% 0% Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 4% 12% 43%

I Would Purchase Designer Wear Irrespective Of High Price For Special Occassion
38% 40% 30% 20% 10% 0% 23% 17%

27%
14%

15%
7%

Strongly Disagree Neither Disagree agree nor disagree

Agree

Strongly agree

I Would Purchase Designer Wear Only For A Special Occassion

43% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

18% 11% 6%

22%

Strongly Disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

I Would Purchase Designer Wear only If I Get Value For Money

40% 40% 30% 20% 10% 0% Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree 15% 14%

Designer Outlets They Are Aware Of

50% 40% 30% 20% 10% 0% 49% 47% 32% 47%

27%

25% 23% 25%

13%

18%

25%

17%

4%

Factors restricting them to buy designer wear

64% 70% 60% 50% 40% 30% 20% 10% 0% Over priced Lesser variety Few designers 27% 20%

FINDINGS FROM NON USERS

Age Group 18 to 30 years Outlets they are aware of Ritu Kumar, Anshus, ShyamalBhumika Restricting Factors Price, Variety Offered & number of Designers Fashion to them Looking Sober & Matured Inspiration Fashion Magazines, Movies & Celebrities

FINDINGS FROM NON USERS

Traits :
Mix of Introverts & Extroverts Highly Confident Social Independent Mix of Experimental & Non-Experimental Mix of Rational & Emotional

HYPOTHESIS

THERE IS NO SIGNIFICANT RELATIONSHIP BETWEEN AGE AND NUMBER OF OUTLETS USERS ARE AWARE OF
H0: There is no significant relationship between age and number of outlets users are aware of V/S H1: There is significant relationship between age and number of outlets users are aware of
Age Group 1-4 18-30 31-40 41-50 51-60 Above 60 Total 90 34 23 4 3 154 Number of outlets users are aware of 5-8 9 - 12 39 14 13 4 4 3 2 0 1 0 59 21

Total 143 51 30 6 4 234

Degree of freedom

Level of Significance

X2 TAB

X2 CAL

5%

12.6

5.57

particulars

Degree of freedom 6

Level of Significance 5%

X2 TAB

X2 CAL

Hypothesis acceptance Ho accepted

AGE AND NUMBER OF OUTLETS USERS ARE AWARE OF OCCUPATION AND AWARENESS

12.6

5.57

0.05

15.5

2.71797251

Ho accepted

AGE AND PURCHASE 8

0.05

15.5

3.432

Ho accepted

INCOME AND SPENDING INCOME AND FREQUENCY OF PURCHASE AGE AND FREQUENCY OF PURCHASE

16

0.05

26.3

21.73423

Ho accepted

16

0.05

26.3

24.62038

Ho accepted

16

0.05

26.3

9.935726

Ho accepted

AGE AND SPENDING

16

0.05

26.3

12.2761263

Ho accepted

RECOMMENDATIONS AND MARKETING STARTEGIES

PRODUCT
Indo western garments, repeatability Plus size garments Increasing demand for office wear and casual wear Affordable label segment

PROMOTION
Online marketing , fashion blogs Celebrity marketing New age CRM Building a brand from all dimensions Sense of inside information May I Help You ? Visual Merchandizing

PLACE
Area Visibility Footfalls

CONCLUSION

BIBLIOGRAPHY
The Global Fashion Industry Growth in Emerging Markets September 2009 Fashion Shows : Coming of Age, a report by Aradhana Fashion Study Summary : Growth Strategies for the Indian Fashion Design Industry, A study conducted by Ernst and Young in November, 2006 The Changing Face of Indian Fashion Industry.pdf

SOURCES OF INFORMATION
http://pdffinder.net/Study-Summary:-GrowthStrategies-for-the-Indian-Fashion-Design-....html http://grailresearch.com/pdf/ContenPodsPdf/Gl obal_Fashion_Industry_Growth_in_Emerging_M arkets.pdf http://www.ibef.org/download/Lifestyle_27110 8.pdf http://www.fibre2fashion.com/industryarticle/pdffiles/the-changing-face-of-indianfashion-industry.pdf