Date post: | 17-Jul-2015 |
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AIC - PENTAGON
Contents
Indian Apparel Industry 1
UG Study2
UG @ Modern Retail3
Killer® UG Strategy & Solutions4
Indian Apparel Market
AIC - PENTAGON
Organized Sector Contributes Rs. 50K Cr.
Branded sector to grow at 15% for
next 3 years.
Purchase Pattern By Segments : Men’s v/s Women’s
AIC - PENTAGON
Avg. Indian male goes for 6 change of briefs
& Vests in a year.
Forecasted Industry Growth 15%
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Economy< Rs. 100
MidRs.100 -225
PremiumRs. 225 - 500
Super P.Rs. 500+
VIPLuxRupaAmulDixyDoraTTDollarEuro
M&SLevi’sUCB
CKTommyFCUK
KillerJockeyChromozomeHanesZoiroPark AvenuePlayboy
“GAP” More
BrandsNeeded
Fastest Growing Segment @ 30%Expected To Grow @ 17% till 2017
Rs.3300 Cr.
Market
40+ Operating Brands Lux Rupa Amul Dixy Scot VIP Jockey Weststock Macroman Calvin Klein Guess M&S Crocodile Chromozome Levi’s Tommy Hilfiger Hanes ONN Playboy Park Avenue Provogue Dora Bodywear Obiviously Killer Dollar TT FCUK Crusoe Granol Barry & Clark Fruit of the Loom (closed) Benetton Bonjour Euro Kajori Divya Laser Plato
Modern Retail (12 +/-)• CK
• Tommy Hilfiger
• FCUK
• Zoiro
• Hanes
• Park Avenue
• Levi’s
• VIP
• Chromozome
• Jockey
• UCB
• Playboy
• In House Labels
AIC - PENTAGON
AIC - PENTAGON
Brands @ Chain Stores
Shoppers’ Lifestyle Hypercity Spencer's
Jockey Yes Yes Yes Yes
Chromozome Yes Yes Yes Yes
Park Avenue Yes No No No
Hanes Yes No No No
Levi’s Yes No Yes No
Killer No No No No
AIC - PENTAGON
Killer® UG Growth Strategy
1
Market Development:Need to immediately enter Modern Retail Chains as in future 40% sale will come from organized retail and Unorganized sector will be stagnated.
2
Product Development:Need to developrange of valueadded products inthe PREMIUM segment as it willobserve highestgrowth.
3
Penetration: Not recommended at this stage because market is wide open for better product and services.
AIC - PENTAGON
Bench Mark Business Model & Margin Structures
Mid & Premium
Super Premium
Economy
VIP OutrightRetailer – 7% Net MDDistributor – 3% Net MDHeavy Sales Promotion On “Boxes” bought by retailers and distributors.Replica Of FMCG model.Different margin for Core and Fashion.
JockeyOutrightRetailer – 24% Net MDDistributor- 7% Net MDStrong replenishment cycles. Replica of core replenishment model.Different Margin for Core and Fashion.
Calvin KleinSISRetailer- 28% SORDirectFixture, Staff, Discounting & operations done by the brand.Replica of Apparel SOR model.Flat Margins.
Recommended For Killer
AIC - PENTAGON
Killer® UG : Business Model
100 Counters on Auto Replenishment100 Counters on Auto Replenishment100 Counters on Auto Replenishment100 Counters on Auto Replenishment
Can Sell At Hyper and Premium Stores both
like Jockey & Chromozome
FMCG Style FMCG Style
““NO”NO”
SIS -SIS -SORSOR““No”No”
Outright : Outright : DirectDirect
Outright via Outright via DistributorDistributor
Auto Replineshments
3 Weeks Cover3 Weeks Cover 2 to 3 Weeks Cover2 to 3 Weeks Cover 7 to 10 Weeks Cover7 to 10 Weeks Cover
FactoryBase Stock
Customer DC
Retail Base Stock
We need to continuously monitor stocks at 3 points
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Auto Replenishment
On the floor for Weekend Sale
Pack and Dispatch
Monitor Sales, Generate PO, Collect Tags
FRIDAY
WEDNESDAYObtain Dispatch Instructions
TUESDAY
MONDAY
2 Days Transit
24 Hours
1 Working Day
Start
Special cases like Kolkata or Long weekend needs to be planned in advance
AIC - PENTAGON
SWOT - JockeyStrength
1. Known as an established brand in inner wear, sleep wear for women, men and children2. Established and trusted Brand Name globally3. Jockey is a recognized trademark in 120 countries4. Is an active corporate citizen5. Popular top-of-the-mind brand available mostly at all multi-retail brand stores globally6. Popular advertising campaigns and good brand visibility
Weakness1.Brand Name has to be protected and hence the costs increases2. Competition from other popular brands means limited market share growth
Opportunity1.Emerging markets are projected to have increasing sales in the lingerie sector 2.To take forward its jockey initiative as more number of people are becoming aware of their lingerie and nightwear
Threats1.New entrants have a chance if they offer innovative designs and services2.Intense Competition from existing players3.Problem of imitation of designs in countries where property rights are not properly defined
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SWOT - Calvin KleinStrength
1. Modern and minimalistic brand with excellent brand equity2. Strong brand name and good marketing3. Global distributed system is excellent and has a reach in over 21 countries4. The advertising campaign is found in high fashion magazines including Vogue, Elle, Harpers Bazaar, and Glamour hence good consumer awareness
Weakness1. Products are expensive and premium which means limited target audience, and brand switching 2. Fake imitation and duplicate products are affecting sales
Opportunity1. Population growth, development and economic integration2. Development of internet, and other mass media where brand penetration can happen3. Great opportunity in developing countries like India
Threats1. Customer needs and changing perception2. Global factors like high tax implications, High inflation which affects buying behavior of consumer3. Customers look for high quality with low price hence high chances of brand switching
AIC - PENTAGON