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Retailis the sale of goods and services fromindividuals or businesses to the end-user.
A retailer purchases goods or products in large
quantities from manufacturers directly or through awholesale, and then sells smaller quantities tothe consumer for a profit.
Retailing can be done in either fixed locations like
stores or markets, door-to-door or by delivery.
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Apparel Retailing :
In India, clothing retail accounts for 36% of
organized retail business. With the advent of modern format retailers and the
growth of plastic cards, affluent urban Indian
women are shopping like never before.
Although the apparel industry seems to be in the
maturity stage and growth is slow, fashion trend
cycles are accelerating
The Indian apparel retail industry
representing a compound annual growth
rate (CAGR) of 9.9%.
Ranked as the top retail destination
globally & among 30 emerging markets
in the world.
It is the second largest untapped market
after China.
Indian apparelretail industry
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STRENGTHS:
Growing domestic market, increase in number of malls Easy credit facility and plastic card revolution is
increasing the purchasing power, particularly of the
younger generations.
WEAKNESS : Predominance of unorganized sector Technological obsolescence in the supply chain Taxation hindrances:
VAT and multiple tax levies. Inconsistent octroi and entry tax structure. Presence of large grey market
SWOT ANALYSIS : APPAREL INDUSTRY
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OPPORTUNITIES :
Increasing demand for brands from the middle class
Research and new product development can help the
companies to move across the value chain
Retail sector in rural India is almost untouched, presenting
tremendous opportunity
THREATS : Increased competition in the domestic market Cheaper import Changing Governments policy on FDI
Price of land and lease rentals are high while marginsare low
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ORGANISED Retail APPAREL FORMAT IN INDIA
FORMAT DESCRIPTION EXAMPLE
DEPARTMEN
TSTORES(MBO)
Average size varies between 10,000 sq. ft. and 60,000 sq. ft.
Offer a large layout with a wide merchandise mix.
Shoppers
stopLifestylePantaloonsWestside
SPECIALTY
STORE
Single-category stores
Focus on individuals and group clusters ofthe same class, with high product loyalty
Provogue
SpykarLevis
DISCOUNTSTORES
Average size10,000 sq ft Offer wide range of products, mostlybranded,
at discounted prices
Big Bazaar
FACTORYOUTLETS
Average size600 sq ftRelatively small retail store offering slightlydefective branded product at a discount
SpykarFactoryOutletProvogueFactory
Outlet
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Apparels are essentially segmented into Men's wear, Women wear & Kids
MENS
Consist of trousers, shirts, jeans, t-shirts, coats etcThe Indian menswear market has averagerevenue of$11.8 billion representing a compound annual growth rate
(CAGR) of 8.6%
WOMENS
Consist of dresses, sarees, tops, jeans, trousers etcIndia's womens wear market generates average revenuesof $10.2 billion representing a compound annual growthrate (CAGR) of 11.6 percent .
KIDS
Consists of uniform, trousers, jeans, t-shirts etcKids wear is not a small business anymore. Driven by hugedemand from brand conscious children, the Indiankidswear retail market is booming.
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Traditional Retail
Cycle:Modern Retail
Cycle:
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APPAREL RETAIL PYRAMID
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Multi Brand Outlets:
Shoppers Stop Pantaloon Lifestyle West Side Globus
Exclusive Brand Outlet:
Casuals:
SPYKAR PROVOGUE LITTLEKANGARO
OS
KOUTONS KILLER
Sports Wear:
NIKE ADIDAS REEBOK PUMA FILA
Formal Wear :
PARKAVENUE
JOHNPLAYERS
MARKS &SPENCER
LOUISPHILIPPE
PETERENGLAND
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The Apparel retail Industry is growing at a very highrate but still there are some barriers, which arehindering the growth of this industry. Some of them are:
The production rate is still not able to match with ever rising
demand.
Do not have enough resources and manpower to explore them.
Competition has increased.
As apparel industry is fashion driven, and fashion keeps changing.Thus they usually have to work under pressure.
Availability of products within the time. i.e SCM in apparel sector
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Retail Business will slowdown indeveloped countries
Population in age group 50-70 willexplode
Modest population growth in 20-35 age group
Decline in 35-50 age group
Plenty of workforce andconsumers in developing countries
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What more Can be done in
This Industry ??
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Conclusion :
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hank U