Study On Distribution Network of Textile Industry RESEARCH METHODOLOGY Research Objectives Distribution network plays an important role in sales of the product in textile industry as well as other industries. As marketing students we need to study the role of distribution network in the market so we have taken this opportunity given to us by Reliance Textiles to gain the knowledge about the distribution network. The main objectives of our research are as follows: To study the market of textile industry. To study the role of distribution channel in enhancing the sales and meeting competitive environment. To study the present structure of distribution network of Reliance. To study the inventory management (Stocking Behavior) of Retailers. Research Design Primary data was collected through Survey method. The questionnaire was used as an instrument for the survey method. The questionnaire was open ended and closed ended. S. K. Patel Institute of Management & Computer Studies 1
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Study On Distribution Network of Textile Industry
RESEARCH METHODOLOGY
Research Objectives
Distribution network plays an important role in sales of the product in textile
industry as well as other industries. As marketing students we need to study the role of
distribution network in the market so we have taken this opportunity given to us by
Reliance Textiles to gain the knowledge about the distribution network. The main
objectives of our research are as follows:
To study the market of textile industry.
To study the role of distribution channel in enhancing the sales and meeting
competitive environment.
To study the present structure of distribution network of Reliance.
To study the inventory management (Stocking Behavior) of Retailers.
Research Design
Primary data was collected through Survey method. The questionnaire was used
as an instrument for the survey method. The questionnaire was open ended and closed
ended.
For the collection of the secondary data Newspaper, Magazines, Reference
Books, Internet etc were used.
Sample Area and target samples
We have selected Ahmedabad, Gandhinagar and Mehsana as our sample areas
and our target was the fabric retailers of these areas.
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Sample Size
The sample size for this project was 60 retailers.
Methods Used
Stratified random method was used as a sampling method and face-to-face
interview was used for contact method.
Assumptions
The sample area is assumed to represent whole universe of Indian textile market.
Data collected are assumed to be bias free from side of respondent, interviewer or
any other mediaries.
Limitation of the study
Reluctance on the part of the respondents to provide exact details.
Lack of sufficient funds to cover the whole universe as sample.
Limited Coverage area for survey, it was restricted to Ahmedabad, Gandhinagar
and Mehsana City only.
Time constraint as stipulated by university norms and by project guide.
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The history of textiles is as old as human civilisation itself. Initially used
for protection against nature, textiles were required increasingly to satisfy man's aesthetic
needs for colour and ornamentation in his apparel and surroundings.1940 is considered as
a year of revolution in textile industry. Cotton was the only product earlier but later on
polyester came into the market. The transition from the purely functional to the
decorative use of textiles has been accompanied by a shift in the manufacture of textiles
from a highly individualised and specialised cottage craft to a mechanised and large scale
operation. The creative genius of many persons from all walks of life has contributed to
this evolution.
Indian textile industry is the second largest in the world and also country’s
second largest industry after Agriculture. India has the largest acreage under cotton (9
million hector) and is the third largest producer in the world. It is fourth in terms of staple
fiber production and sixth among Filament Yarn producers. India accounts for about a
fourth of global trade in cotton yarn. The textile industry in India accounts for 9 percent
of Gross Domestics product, 20 percent of industrial production and 35 percent of the
export earnings. It directly employs 35 million persons and widespread forward and
backward linkages with the rest of the economy, thus providing indirect employment to
many more millions.
There are mainly two types of products in the textile industry as given below:
Man Made Fabric : Polyester (Made from chemicals)
Viscose (Made from wood pulp)
Natural Fabric : Cotton
Wool
Silk
A Cotton textile is the most important segment of the industry, accounting
for around 65 per cent of the domestic fibre consumption and exports.
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Currently, India has about 2,600 Spinning and Composite Units with about
35 million spindles and 3,45,000 Open-end rotors, in the mills sector. Besides, there are
about 15.6 lakh Power looms in the decentralized sector, employing about 77 lakh
persons. In the handloom sector, there are 38.90 lakh looms providing employment
opportunities to 124 lakh people. There are about 12,400 processing factories of which
around 10,000 are hand processors.
India produced 2230 million kgs. of cotton yarn, 583 million kgs of
blended yarn, 177 million kgs of 100% non cotton yarn and 769 million kgs of filament
yarn during 1997-98. During the year, India produced 20,000 million square meters of
cotton fabrics, 11,000 million square meters of non-cotton fabrics and 5,800 million
square meters of blended fabrics. About 50 percent of the fabric is converted into
readymade garments in the country. The decentralized power looms sector has a share of
nearly 55 percent and Handloom sector for about 23 percent of the total cloth produced in
the country.
However, India’s percentage share in the global textiles and the clothing
trade continues to be low at about 3 percent. The major reason responsible for a small
Indian share in the World trade has been the technological obsolescence in Weaving,
Processing and Clothing sectors. By the middle of year 1998, the number of closed mills
stood at 231 comprising of 136 spinning and 95 composite mills. In the Power loom
sector, most of the Looms are more than 20 years old and 75 percent of those are
conventional type, not fit for production of fault-free fabric at higher efficiency.
Presently, the industry is passing through a rough phase on account of
unabated escalation in the cost of raw materials and power, sluggish market conditions
both at home and abroad, slack export performance in the wake of South East Asian
currency turmoil, rising imports of textile products and unremunerative prices of yarns
and fabrics. Financial crisis due to liquidity crunch, halting approach of banks in
advancing adequate loans to textile units and high rates of interest stares in the face of the
industry. The old mindset of operating in protected markets with its attendant
inefficiencies will have to give way to a new era of efficiency-driven operations. The
World has enormous appetite for "Low tech" goods - garments, sports wear etc. China’s
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sales in this field are $ 70 billion, 5 times India’s. International standards in quality and
specification need to be imposed; Supply-chain management needs to be developed along
with improving market arrangements internationally.
The Government of India is already alive to the situation. It has recently
created Technology Up gradation Fund, EXIM policy is being revised and an Expert
Committee to review Textile policy is likely to submit its report in the near future.
The textiles sector has a dual manufacturing structure, dominated by a fast-expanding
decentralised small-scale manufacturing segment and a declining vertically-integrated,
large-scale composite mill segment.
For instance, the apparel industry has 27,700 domestic manufacturers,
over 48,000 fabricators, and 1,000 manufacturer-exporters. As much as 80 per cent of
apparel manufacturers have small operations (with less than 20 sewing machines) while
99 per cent of them are individual proprietorships or partnerships. The technologies for
processing cotton textiles and apparel have a broad range -- from hand-operated
equipment to sophisticated automated facilities.
DISTRIBUTION BETWEEN ORGANISED AND UNORGANISED SECTOR
The Organised sector includes the companies which cover composite
process of making fabric to fibre. The organised sector of the textile industry includes the
players like Reliance, Raymond, Birla, Mayur, BSL etc. These all are the big names in
the textile industry but surprisingly the organised sector captures only 20 percent of the
overall market.
The major part of the fabric market that is 80 percent is covered by the
unorganized sector of the industry. The unorganized sector includes the small
manufacturers of the fabric who does not cover the composite process of making fabric
from the fibre. The majority of the small manufacturers are located in the area of Surat,
Bhilwara, and Amritsar. In this way the big part of the total sales is captured by the
unorganized players so the Organised players has to do some thing like tie up with the
small manufacturer to increase the market share of the organised sector.
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INDIAN TEXTILES INDUSTRIES – A Snap Shot
Largest Gross and Net foreign exchange earner
35% of the total Export earnings with practically no import content (cotton yarn
contributing 13%)
20 % of the industrial production
9% of GDP
Direct employment to nearly 35 million of people.
10% of excise revenue
Sector wise Share of Cloth Production
5%
19%
58%
18%Mill
Handloom
Power Loom
Knitted
Export Marketing is broadly divided into four zones viz. America (U.S.),
Europe, Middle East & gulf and Asia (Far East). In there total turnover of Textile Exports
America contributes about 50%, Europe approx. 15 %, Middle East approx. 15% and Far
East contributes about 15% each.
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Raymonds 34%
Grasim9%
OCM & Digjam14%
Reliance43%
Performance in Exports
Raymonds
Grasim
OCM & Digjam
Reliance
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EFFECT OF WTO ON TEXTILE INDUSTRY
Trade restrictions had hitherto kept the textile industry from soaring to the
heights it is capable of. The year 2005 brings in a host of opportunities for the textile
sector as Quota-based restrictions for textile exports to the United States and European
nations were lifted on. The textile industry now faces a scenario where the players can
export any quantity they want and to wherever they want.
According to Apparel Export Promotion Organisation, the textile industry
is hopeful of achieving about 15-18 per cent growth in the next one year following the
dismantling of multi-fibre agreement. The government is even more sanguine about the
opportunities that phasing out of quota system in world textile trade presents. The
textiles ministry has unveiled a white paper -- Vision 2010 -- for the textile sector, which
set the target of $50 billion exports by 2010.
But with quotas having been removed and globalisation in full swing, the
market is now exposed to global competition. Indian manufacturers and exporters now
have to compete with the global players and also face emerging tariff and non-tariff
barriers. Yet with its speed of operation, skill, quality of products and low-cost labor, the
industry is gearing up to reap rich rewards in the new era. Like in the information
technology sector, the textiles business too is experiencing a big boom.
The cost of logistics in the Indian textile industry, unlike in China, is
notoriously high and inflexibility in labour laws discourages the best of the companies to
expand. The textile export business cyclical in nature and it will not like to on rolls
employees who will be sitting idle for a chunk of year. The government has also fine-
tuned the technology Upgradation Fund Scheme (TUFS) for the sector that has been
running for the last few years.
With the multi-fiber arrangement coming in competition will increase
drastically. In Italy a cluster of small specialised textile firms are competing on end
products, Germans weave for 24 hours under “lights out” arrangement, TQM is ensured
in Japanese and American plants, ‘looming robots’ are installed and firms in Southern
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USA are reported to be researching the use of genetic engineering, cellular biology and
tissue culture to grow coloured cotton.
Under these circumstances India needs to push hard. An IIM Ahmedabad
study points out the loopholes in Indian Textile Industry as long manufacturing and
delivery times, conflicts and competitions between small, medium and large players and
among links of supply chain viz. cotton producers, spinners, weavers, etc., poor process
control, outdated technology, non-existent indigenous R&Ds, etc.
About India, the WTO says: 'The country could nearly quadruple its share
of the US market to 15 per cent from 4 per cent in 2002.' According to a Crisil study,
Indian textiles and apparel industry can reach $85 billion by 2010 and needs an
investment of Rs 90,000 crore (Rs 900 billion) over the next five years. The industry has
seen investment of about Rs 50,000 crore in the last years and has ramped up capacities
to meet the challenge of quota free regime. However a total investment of about
Rs 1, 40,000 would be required to reach the export target of $ 50 billion by 2010.
Even though the textile export quota has been dismantled, not everybody
in India is aware of it. Only the large textiles companies are - small firms do not seem to
have any clue on what is happening and, therefore, the question of these firms preparing
to face a quota-free regime does not arise.
A survey conducted by the Research and Information System for Non-
Aligned and Other Developing Countries has revealed that 75 of the 100 firms covered in
the study are not aware of the development. The study found the level of awareness about
government-run schemes like the Textiles Up gradation Fund was nowhere near being
satisfactory. Only 45 per cent of the respondents were aware of the scheme, which is
aimed at making cheaper funds available for modernisation.
In terms of trade barriers coming up in developed countries, the survey
noted the industry as a whole considered environment and labour standards as the highest
threat, followed by trade diversion effects, product standards and transitional safeguards.
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Once quotas go, the sheer competition for volumes between China's
manufacturers and suppliers will ensure that prices drop by at least the same amount. In
2002, when quotas were lifted on 29 categories of apparel, prices crashed by an average
of 34 percent, and sometimes as much as 50-80 per cent. If this scenario holds, Indian
textile companies will also face pricing pressures. Quota premiums for apparel are high
and account for between 25 and 35 per cent of the selling price.
According to Rajinder Gupta, CEO of Trident India there will be bigger
opportunities for our textile industry to increase its market share in the post-quota world.
The country has natural competitive advantages, such as availability of inputs like cotton,
yarn and low-cost, well skilled manpower. Combined with the proactive stance taken by
the government, India is poised to gain market share at the expanse of high cost western
countries as well as others that enjoyed quota-free access.
The main challenge for Indian textile industry lies in protecting its
domestic market. The 3 C’s of commitment. Co-ordination and Co-operation need to be
applied all levels to be able to maintain its presence in the global market.
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Symbols of changing textile industry
Netaji Apparel Park at Tirupur India's first, biggest and most modern textile
cluster that matches China's textile industry in production quality and quantity.
Welspun India Ltd, one of the world's largest producers of terry towel products, is
building a $220 million factory in Gujarat.
Arvind Mills Ltd, Asia's largest producer of denim, is setting up new plants in
Bangalore and Ahmedabad.
Gujarat-based Super Spinning Mills Ltd has acquired two sick textile mills in
Madurai to cater to the US market.
Textiles- India has an edge over China
China is the undisputed leader in the world textile trade, making a quarter
of the apparel sold worldwide, but India enjoys a few key benefits over China, which will
come into play in a quota-free world.
India's current share in the world textile trade is only 4 per cent, according
to a study by the World Trade Organisation. But the Indian government says it can be
doubled to 8 per cent by 2010, now that the multi-fibre arrangement is history.
China caters to the mass segment; India has the ability to service high-value niche
orders and has better designer resources.
There is evidence to suggest the US textile industry is lobbying hard to block
dumping of products from China.
India is a favored destination in view of abundant availability of cotton, cheap
access to funds, traditional textile expertise, skilled labour and designer skills
At present Chinese textile firms are imparting 70 hours of training each year to an
experienced worker as opposed to 10 hours by Indian firms, investing in R&D for
new application areas, addressing the issue of quality systematically and also
canalizing export through centerlised channel.
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INTRODUCTION TO RELIANCE INDUSTRIES LIMITED
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is
India's largest business house. The Group's activities span exploration and production
(E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and
intermediates), textiles, financial services and insurance, power, telecom and infocom
initiatives.
The Group exports its products to more than 100 countries the world
over. Reliance emerged as India's Most Admired Business House, for the fourth
successive year in a TNS Mode survey for 2004.
The Reliance Group Companies include: Reliance Industries Limited,
Reliance Capital Limited, Reliance Industrial Infrastructure Limited, Reliance Telecom
Limited, Reliance Infocom Limited, Reliance General Insurance Company Limited,
Indian Petrochemicals Corporation Ltd. and Reliance Energy Limited.
CORPORATE HISTORY AND BACKGROUND
This is the story of a company with a vision, of how it grew from being
a small trading unit, to be raked among the top 50 emerging market companies in the
world. It is the story of how a company helped place India firmly on the world industrial
scenario taking with it a family a growing family, which include collaborators, suppliers,
customers, employees and the largest investor base in the country. It is the story of how a
company’s vision has extended to include newer challenges, newer goals. And most of
all, it is the story of a company where growth is a way of life.
Reliance began in 1958, as a small trading organization, known as 'Reliance
Commercial Corporation', by late Sri. Dhirajlal Hirachand Ambani (Dhirubhai Ambani,
1932-2002) dealing in various commodities including Nylon and Rayon.
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In 1966, Working his way around Mumbai's Mulji Jetha Market, buying and selling
Yarns in the blazing afternoon sun, he finally found meager finance to purchase manually
operated knitting machines for Naroda Textile unit, near Ahmedabad - the first step in his
highly successful backward integration strategy.
From early days, the focus was on creating state-of-the-art world-class plants. During
1975, World Bank certified that Reliance's textile plant was excellent by developed
country's standard.
In 1982, Reliance Group came up with India's largest polyesters manufacturing plant at
patalganga, near Mumbai. By 1988, this complex was a part of one of the most integrated
marketing complexes of its kind in the world producing Polyester Filament Yarn,
Polyester Staple Fibre, Purified Terephthalic Acid, Paraxylene and Linear Alkyl
Benzene.
In 1991, Reliance started producing Polyvinyl Chloride and Mono Ethylene Glycol at
Hazira (Phase 1), near Surat. Subsequently, Ethylene Oxide, Vinyl Chloride Monomer
and Polyethylene were added to the product spectrum of this Complex. Hazira complex
near Surat in Gujarat is situated on the banks at river Tapti and is spread over 1000 acres
of land, which is comparable in design and Technology to the best in the world.
In 1993 pioneered the first ever Euro Convertible Bond issue by an Indian Company for
US$ 140 million. Reliance raised Rs. 2172 Crores from the domestic capital market for
setting up a World-Class and World-Scale refinery at Jamnagar, Gujarat - the largest ever
offering by any Indian Corporate.
In 1996-97, Reliance became the first Private Sector Company to be rated by
International Credit Rating Agencies. Reliance was rated "AAA", by CRISIL, indicating
the highest credit Quality. Reliance becomes the first Private Sector Company to raise
US$ 300 million in the international debt market in two landmark transactions.
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In 1998, Reliance completed phase II expansion of Hazira Petrochemical Complex
including world's largest multifeed cracker with an investment of Rs.9000 Crores (US$
2.5 billion) increasing Reliance's production capacity four folds to more than 6 million
tons per annum.
In 1998, The Wharton School, university of Pennsylvania, USA awarded Dhirubhai
Ambani the Dean's Medal, for setting an outstanding example of leadership.
During 1999: Integrated Jamnagar Complex comprising world's Largest Grassroots
Petroleum Refinery and fifth largest refinery in the world in terms of size with the
capacity of 27 Million Metric Tones Per Annum which contributes 25% of India's
refining capacity.
2002: RPL merges with RIL the largest ever merger in India. The merger gives RIL the
distinction of becoming India's first Private Sector Company, in the internationally
tracked Fortune Global 500 list of the world's largest corporations.
Reliance rated as "India's Most Admired Business House" for the second consecutive
year in the Business Barons- Taylor Nelson Sofres- Mode Survey.
2002: Reliance acquires IPCL; India's second largest Petrochemicals Company-
consolidates its position in the petrochemical business.
[
Reliance Industries limited today is the India's largest Private Sector Enterprise is a major
player in the Refining sector, Petrochemicals sector, Textile Manufacturing sector and
Power sector.
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RELIANCE GROUP OF COMPANIES:
1) Various Division of RIL:
LOCATION YEAR OF ESTABLISHMENT
NARODA (AHMEDABAD) 1966PATALGANGA (MUMBAI) 1980HAZIRA (SURAT) 1991-92JAMNAGAR 1999
2) Subsidiary Companies:
3) Significant Associate Companies:
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INDIA'S FIRST PRIVATE SECTOR FORTUNE GLOBAL 500
COMPANY
RIL is the first and only private sector Company from India to feature in the
2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the
world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most
respected energy/chemicals companies and amongst the top 50 companies that create the
most value for their shareholders in a global survey and research conducted by
PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes
Global list of world's 400 best big companies and in FT Global 500 list of world's largest
companies.
RIL emerged as the 'Best Managed Company' in India in a study by
Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's
biggest wealth creator' in the private sector over a 5-year period in a study by Business
Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons -
TNS Mode Opinion Poll.
Reliance is only corporate entity in the world to be actively involved in the
entire value added chain, from oil production to the retailing of a verity of petroleum
products to textiles.
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This question gives us information about the brands which are stocked by the respondents. This information helps us in identifying the brands which has more demand in the market and has a strong distribution channel.
We have found that BSL, Raymond and Donear are the three major brands having more presence on the retailer’s shelf. While Reliance’s Vimal is stocked only by 20 of the 60 respondents visited. This shows the low demand of Vimal into the area targeted.
The point to be taken care here is that Raymond and BSL are the brand of the company’s located in Bombay and Bhilwara respectively has strong distribution network than the Reliance which is located in Naroda.
3) Please specify the reasons for not stocking other brands.
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By asking this question to the respondents we can find out the reasons for not stocking the other brands mentioned in the above question.
The most common answer to this question was low demand by 43.33% of respondents. The main reason behind the low demand for fabrics might be the increasing craze of readymade garments. The demand for the fabric can be increased by the way of advertising or sales promotion schemes.
4) Which of the following parameters you prefer most to stock for any company’s product?
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Parameters Respondent Percentage
Easy Salability 26 43.33
Product Quality 12 20
Pricing 8 13.33
Brand Equity 10 16.67
Service 3 5
Other 1 1.67
Total 60 100
Easy Salabil-ity; 26
Product Quality; 12Pricing; 8
Brand Equity; 10
Service; 3 Other; 1
Interpretation
By asking this question to the respondents we can find out the reasons for
stocking the brands mentioned in the question-2. These reasons are the factors that
influence the retailers to stock one brand over that of other brands.
In answer of this question 43.33% of the respondents said that the Easy salability
is the factor that influences them to stock any of the brands while around 16.67% and
20% of the respondents respectively have chosen brand equity and better quality as the
reasons for stocking any brand.
5) From whom do you purchase the fabric?
Party Respondent Percentage
Wholesaler 37 61.67
Agent 11 18.33
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Direct From The Company 7 11.67
Depot 1 1.67
Other 4 6.66
Total 60 100
Wholesaler; 37Agent; 11
Direct From Company; 7
Depot; 1 Other; 4
Interpretation
With the help of this question we can know the distribution network followed by
various companies.
More than 60% of the respondents have said that they are purchasing the fabric
from the wholesaler this suggest that the companies are distributing their products
through one of the distribution networks given below.
The basic idea behind this is find out which has the most efficient distribution
network.
Surprisingly Raymond which is located in Bombay is considered as having the
shortest delivery period rather than the Reliance (Vimal) which is located in Naroda.
Raymond has achieved this shortest delivery period by building a team of good financial
strong wholesalers.
11) From your point view customer prefer to purchase from
Party Respondent Percentage
Retailers 24 40
Wholesaler 1 1.67
Company’s Showroom 10 16.67
Shopping Malls 25 41.66
Total 60 100
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Wholesaler; 1
Retailer; 24
Company Showroom; 10
Shopping Malls; 25
Interpretation
The basic idea behind asking this question is to find out the place from where the
consumers would like to purchase the fabric from the point of view of the retailers.
According to 41.66 % of the respondents the consumer would like to purchase the
fabric from the shopping malls because of the latest shopping trend and according to 40%
of the respondents the consumer would like to purchase the fabric from multi brand
retailers because this is the place where the consumer can have a look at the designs of
more than one brand and have more options to choose from.
Findings
We found that BSL and Raymond have more demand in the Gujarat region than
the famous brands like Reliance (Vimal) and Reid & Taylor.
We have also found from our survey that the retailers stock any brand based on
the demand of that product not based on the price of it or the margin he is getting
from selling of that brand
Easy salability is the main factor for preferring one brand over other brand
because for selling these types of brands the retailers have to put less effort so his
valuable time and up to some extent money also is being saved.
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During our research work we have found that the wholesaler is the party from
whom the majority of the retailers are procuring the fabric and more of the
retailers have agreed that if given choice they would like to purchase directly
from the company.
According to majority of the retailers the wholesaler is the person who can
provide them better services.
Credit period and discount are the two most common services provided to the
retailers and by asking their preference towards services these two same services
are preferred.
By asking about the shortest delivery time to the retailers we have found that
Raymond is the company which have shortest delivery period.
From the point of view of the retailers the customer would like to purchase from
shopping malls and multi brand retailers rather than company’s showroom.
Suggestions
Vimal is one of the top 3 brands but as we have surveyed only 20 out of the
60 respondents are stocking it so the company has to take some serious steps
to increase the presence of its products on the retailer’s shelf .
Some of the retailers are also stocking women’s wear and home furnishing
with the men’s wear so the company has to use them in proper way to sell
“Harmony” the home furnishing brand and women’s wear.
The demand of the readymade garments is increasing so the company has to
concentrate more on that department to capture good market growth. If
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possible company can come up with its own readymade brands or collaborate
with ready made garment manufacturer and supply them the needed fabric.
Reason for not stocking any particular brand as shown is the less demand.
The demand for any product can be achieved through creating the consumer
pool. So the company has to think of creating the consumer pool by the way
of advertising.
The demand for the cotton products especially of shirting is increasing so we
suggest the company to collaborate with some cotton manufacturer in
shirting and market their product under the brand name Vimal.
Raymond and BSL have shortest delivery period which are based at Bombay
and Bhilwara respectively. This shortest delivery period is being achieved by
the team of good financially strong wholesalers. Reliance which is based at
Naroda has long delivery period than these two companies. So the company
has to think of aggressive development of wholesaler in all major distribution
centers because these distribution centers reduces delivery time and provide
better services.
The company has to increase the number of retailers by introducing trade
sales promotion schemes because these multi brand retailers are the person
from where the consumer likes to purchase the fabric.
Company has to think of selling its products through the shopping malls
because of the trend of consumers going to malls for shopping.
Conclusion
Although Reliance gets stand in a list Fortune 500 Company and also
considered to be India’s largest private sector corporation, the brand “Vimal” has not
very big market in the area of Gujarat. As we know Reliance also manufactures the fabric
for women’s wear and home furnishing apart from Men’s fabric. But in the area in which
we have conducted our research we had not found even a single retail shop which sells all
the three types of fabric so the company has to do some thing like providing extra
discount to the retailers who purchases all the three types of fabric to improve the current
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situation. Apart from that as we have noticed the target segment of Reliance is the person
who falls in to B or C class not A class so the company has to give more franchises in the
small towns. By doing this the company would be able to sell entire range of its products
under the single roof in the small towns also.
Moreover the company has to do something like sales promotion schemes,
Advertisement etc. to improve its sales especially in the area of Gujarat. Reliance has to
spend little more on above mentioned activities to increase the consumer pool. The reach
of the Reliance product is not as much as of other companies’ product so the company
has to build the team of good wholesalers to expand the overall reach and through this the
sales of the company.
S. K. Patel Institute of Management & Computer Studies 49
Study On Distribution Network of Textile Industry
QUESTIONNAIRE
We are students of MBA at S.K.Patel Institute of Management and Computer Studies, Gandhinagar. As a part of our academic course we have to prepare a Grand project. We have decided to do this task through market survey in Textile Industry. For this task we have prepared this questionnaire. We request you to help us in this task by filling up this questionnaire.
1) Name Of the Shop: ___________________________________________________