wills lifestyle gap analysis

PROJECT REPORT

ON

“Retail Store Operation gap Analysis

SPECIALISATION: MARKETING

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ACKNOWLEDGMENT

I would like to sincerely thank Prof. for giving me an opportunity to work on the project “Retail Store Operation gap Analysis”

I am greatly indebted to her for her persistent guidance and for providing me with the required information. What particularly helped me in this project was her expertise and live experiences which she quoted to me on several occasions. The motivation and immense knowledge provided by her was a constant means of support. This project helped me understand the nuances of retail store operation. It further helped me understand operations in retail apparel space and analyze the gaps at operational level.

Last but not the least I would also like to operation manager and Staff of Wills lifestyle for providing me a glimpse of regular store operations through the project.

EXECUTIVE SUMMARY

The reason behind choosing this topic is organized Retail industry, while exhibiting strong potential, needs a markedly different approach in order to succeed compared to the known unorganized sector. Also there’s a substantial clutter of brands especially in the Retail apparel space. The market for apparel is growing and evolving. With FDI opening up there is a huge threat not only to unorganized sector but also organized Indian apparel brands. The best way to tackle this issue is Customer Retention and timely introducing innovation to cater to ever changing needs of Indian Consumers. Exceptional Customer Service and top of mind recall is the way to capture and retain customers. Stores are the face of the brands and it’s extremely important that at the customer interface no room for error is left. Understanding store operation and ironing out the gaps at the operational level will open up new commercial avenues in this competitive arena. The project contains detailed insights and analysis documenting the store operation of Wills Lifestyle store, In-depth and comprehensive data covering the systematic working of the store. Lastly, the report captures the level of synergy and details regarding wills lifestyle offerings to its customers and the gaps between customer needs and stores offerings. I have given my opinions and recommendations with the on board analysis and information provided on the back door working of Wills lifestyle.

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Table of Contents

Introduction............................................................................................................................................. 7

Fashion Retailing In Malls................................................................................................................... 9

Category-wise...................................................................................................................................... 9

Format-wise...................................................................................................................................... 10

Gender-wise...................................................................................................................................... 11

Big and small..................................................................................................................................... 11

Rentals................................................................................................................................................ 12

Local retailers................................................................................................................................... 12

Franchised versus company owned..........................................................................................12

Store Management.............................................................................................................................. 13

Signages and promotional materials........................................................................................14

Customer is the King...................................................................................................................... 14

Areas of Store operation................................................................................................................... 15

List of Evaluation of Customer Services...................................................................................16

Steps to follow by retailers in ensuring good sales.............................................................16

Lifestyle Retailing................................................................................................................................ 17

The Collection....................................................................................................................................... 19

Wills Sport Autumn Winter line.................................................................................................19

Wills Sport women’s collection.................................................................................................. 19

Wills Classic collection for men..................................................................................................20

Luxuria collection........................................................................................................................... 20

Wills Clublife..................................................................................................................................... 21

Wills Club life women.................................................................................................................... 21

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Range (Basic to High end Designer)..............................................................................................22

Nature of shoppers towards garments.........................................................................................22

Apparel Handling Policy.................................................................................................................... 23

Visual Merchandise (silent seller).............................................................................................23

Footfalls.............................................................................................................................................. 23

Targets................................................................................................................................................ 23

Parameters........................................................................................................................................ 23

Government documents................................................................................................................24

Logistics.................................................................................................................................................. 24

Stock Statement Report.................................................................................................................24

Retail store front (RSF)................................................................................................................. 25

Promotions............................................................................................................................................ 26

Club Wills -Loyalty cards................................................................................................................... 26

Club Wills offers its members:....................................................................................................26

Membership Eligibility.................................................................................................................. 27

Membership Rewards.................................................................................................................... 28

Personalized Services.................................................................................................................... 28

Lifestyle Benefits............................................................................................................................. 29

Customer relationship....................................................................................................................... 29

Sale Season (January and July)........................................................................................................29

Shrinkage............................................................................................................................................... 30

Sale........................................................................................................................................................... 30

Parameters for measuring revenue..............................................................................................31

Competitors of Wills Lifestyle......................................................................................................... 32

Gaps and Recommendation..............................................................................................................32

Bibliography.......................................................................................................................................... 33

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Introduction

Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive and affordable.

Retailing involves a direct interface with the customer and the coordination of business activities from end to end- right from the concept or design stage of a product or offering, to its delivery and post-delivery service to the customer. The industry has contributed to the economic growth of many countries and is undoubtedly one of the fastest changing and dynamic industries in the world today.

Retail is India is largest industry; accounting for over 10 percent of the country is GDP and around eight percent of employment. Retail in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. That said, the heavy initial investments required make break even hard to achieve and many players have not tasted success to date. However, the future is promising; the market is growing, government policies are becoming more favorable and emerging technologies are facilitating operations

Retailing in India is gradually inching its way to becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping. Modern retail has entered India as seen in sprawling shopping centers, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of organized retail and growth in the consumption by Indians is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organized retail sector.6 | P a g e

Big in size and turnover, Indian retailing industry is characterized by certain attributes.

The network of retailers reaches every nook and corner of the country. So any product produced anywhere in the country can be easily accessed by the buyers from any location. Thus the spatial convenience of Indian retailers is very high.

Secondly, in India the retailing industry is an unorganized lot consisting of, in most of the cases, small entrepreneurs. And the virtual omnipresence of the Indian retailer can be attributed to these small entrepreneurs only.

Malls are best known to be battlegrounds where the brands, small, medium, big, the known, the not-so-well-known and the fighting-for-their space ones, compete and crave for the consumer’s attention. And the consumers so happily ‘love it’ and are left asking for more. The purchasing power flows in from the growing industry and services sectors which contribute in a major way to the growth of this culture. Also, not to forget that the malls create ample job opportunities-directly and indirectly, thereby contributing in a huge way to the employment concerns of the country. The upcoming malls are nothing but a sign of a new, prosperous India

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Fashion Retailing In Malls

In the rapidly burgeoning retail space of malls, there are two main categories that take up the major chunk; one is food retail and the other is fashion retail. The glitz and glamour of an apparel store, the dazzling display of jewelry store windows and the plush interiors of a footwear store are the adornments that are must-haves for every popular mall. They are must-haves because retail mix is a very important aspect of any mall. The success of a mall largely depends on this. Some mall developers make the mistake of accepting everyone who shows interest in hiring the retail space irrespective of whether or not the product of that retail goes with the target market. For a mall to do well, developers need to choose what the target market is and go after it.

 CATEGORY-WISE

Zoning a mall on the basis of category is also a trend that’s fast catching up with real estate developers. The fashion zone is further bifurcated on the basis of product category. Categories in fashion like footwear, jewelry, apparel, innerwear, etc. are allotted space after conducting a detailed study on the catchment area. While some developers exclusively rely on specific researched data for the segmentation that they want in their malls, others follow some tried and tested formulas. Consumer profiling is done within a 3 km radius of the upcoming mall. It is purely research based and very specific.

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The percentage allotment

FORMAT-WISE

Mall positioning- It is observed that some mall developers follow the international practices, wherein the ground floor is allotted to luxury and international brands. The reason behind this is that the ground floor has the highest rentals and highest footfalls. However, if a mall does not target elite customers there would be fewer or no luxury brands.

As the fashion retail is all about the local customers’ preferences so the space allotment as per the value formats, lifestyle, and luxury formats, needs to be in synch with the type of people visiting it.

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*Susil S Dungerwal, Chief Mall Mechanic, Beyondsquarefeet Advisory

 GENDER-WISE

Generally the first floor is allotted to women’s and kidswear brands. On this floor, the rentals are lower than that for the ground floor, but sales are hit by up to 30 per cent, in general. How about the menswear stores? How do developers segregate the allotment based on menswear, womenswear and kidswear brands? Looking at the fashion retail space with a bird’s eye view, it is women’s fashion and women’s wear that dominate the overall ratio of this category distribution.

BIG AND SMALL

The success of this mall is accredited to its perfect zoning and superior tenant mix vis-à-vis other malls in the city. The space allotment based on the size of stores is divided into vanilla stores and big-box stores. Vanilla stores are spread across an area of 800 – 1500 sq. ft., mini anchor/category pillar stores occupy 5000 – 10000 sq. ft. and big box stores cover 20000 sq. ft. Vanilla stores forms 500 SBA for accessories to 5000 and big box could go to any many sq fts as possible but looking at current SKU build up in India one should stay within 50000 to 75000 sq. ft and edit SKU's for best optimization of retail space. The anchor tenant is the largest occupier in a mall in terms of square feet. Vanilla retailers cluster around the anchor and feed off the shopping traffic it generates.

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*Susil S Dungerwal, Chief Mall Mechanic, Beyondsquarefeet Advisory

RENTALS

The store rental in malls varies from place to place and city to city, but it is mainly the footfalls that determine how high the rentals may climb. Usually in metro cities it is around Rs.400 – 600/sq. ft. for ground floor, 20 per cent less than ground floor for first floor and 20 per cent less than first floor for second floor and so on. This pattern changes, when there is a parking lot on every floor. Then each floor becomes a ground floor; or when there is a food court or a movie hall on a specific floor. Tier II and out of town locations have rentals of Rs.60-100 per sq. ft. for a similar space

 LOCAL RETAILERS

Not everyone visiting a mall intends to shop. There are two types of consumers visiting a mall. One type is focused-buyer and another is impulse-buyer. The time spent by focused buyers in malls is relatively small while impulse buyers hang-out for a long time. Impulse buyers enjoy window shopping. Though there is little that retailers can do to attract focused buyers. But impulse buyers can be lured by including retailers and products they are regular with and fond of.

FRANCHISED VERSUS COMPANY OWNED

Malls seem to prefer more of company owned outlets, compared to franchised ones. Some malls also get into a tri-party agreement where the company finalizes the details of the retail space booked and then hands it over to the franchisee. It is usually a mix of both with franchised outlets having 20-22 per cent occupancy as against company owned outlets having 78-80 per cent occupancy. Having the right tenant mix and zoning help attract and retain shoppers by offering them multiple choices and satisfying multiple needs. It also facilitates the smooth movement of shoppers within the mall, avoiding clusters and bottlenecks. It results in influencing shoppers’ mall preference and frequency of visits.

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Store Management

Managing a retail store is a difficult as finding an appropriate job. Managing all aspects of the operations of a retail store is must to ensure maximum sales and high profit.

Along with the product purchased, a customer takes with him the memory of customer service given at that particular store and keeps it on top of his mind recall along with the purchased product’s worth. And since, he is the king; he needs to be treated in a special manner.  So, in keeping with the image of the product he is buying, retail store operations need to be quick, updated and proper in matching. Hence, evaluation of store operations from time to time becomes vital to ensure not only the above but also to improve revenue, profitability, customer loyalty and individual productivity. Below are some areas of concern for a watertight functioning of a store.

SAFETYCreating and maintaining a safe environment for workers and consumers is a primary concern of a retail store operation. Following proper procedures, awareness of hazards and maintenance are some of the key ingredients for achieving this. To take care of personal injury, medical equipment needs to be kept along with safety equipment’s in case there is a mishap like fire, burglary etc. Also, it is important to adhere to state government guidelines that outline certain requirements, such as material safety data sheets, proper storage of chemicals and related regulations for workplace safety. These safety cover by the employers will instill a confidence in associates as they will work fearlessly and in case there is a catastrophe in the shop during sale time.

OFFICE BUSINESS APPLICATIONSchanging market conditions require agility in business applications. Service orientation answers the dispute by centering on XML and Web services standards that transfigure how developers create systems and integrate them over distributed networks.

The technology which is useful in giving stock of  item not found, item recall, item-out-of-stock, promotional item sales data transfer and supply chain etc will ensure a proper flow of value supply chain.12 | P a g e

MANAGING ATTRITIONAttrition is another area of concern so check that there is less attrition by ensuring facilities to employees and better pay check. Also, since training entails lot of expenditure, it is better to employ for a longer period. An agreement would work fine and so will employee plans and schemes, employee insurance, leaves and a congenial environment.

PROMOTION WORKSRetails today do lot of promotion works for increasing footfalls and give the feeling of belonging to the customers. The retailer’s office must know the trends of promotions. Alongside, it is also imperative that one knows how the particular promotions have fared by taking feedbacks and assessing the sale during that time. Diwali, Holi, Christmas and other festivals are right time to have these events.

SIGNAGES AND PROMOTIONAL MATERIALSIt is also important that signage’s and promotional methods are updated from time to time in keeping with the evolving trend.

DISCOUNTS AND SALESAlso check the upshot of sales and applied discounts to know their efficiencies.

STORE OPERATIONS MANAGEMENTThis also includes other things like ensuring that the shop fitting and designs are in keeping with the modern trend and updated as per the drifts.

CUSTOMER IS THE KINGCustomer feedback is very important to determine the level of customer service, analyze the business and recognize the area of opportunity for an overall analysis of the performance.

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Areas of Store operation

Factors Examples MovementCommunications Blueprint In/OutFixtures and furniture Assets In/Out

Merchandise Accessories/stock In/Out

Staff/Employees Attrition/hiring In/Out

Customers Purchase In/Out

Finance Funds In/Out

Visitors HO/ Inspection In/Out

POPE Posters/Promotional products

In/Out

Shrinkage (without knowledge) Shop soil/Theft In/Out

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LIST OF EVALUATION OF CUSTOMER SERVICES:

* If the shoppers were not properly informed of or did not clearly understand what to look for.

* If the shoppers lacked retail management experience and he was assisted and shown the correct departments, bill counter, and he appreciated the VM which was proper and not over flooded.

* If the shoppers were just that…a shopper, not persons who were necessarily capable of providing meaningful feedback on the execution of your particular service standards and who is not completely aware of the impact their comments may have.

* If the shoppers were not able to offer tangible advice on how the experience could have been bettered or improved.

STEPS TO FOLLOW BY RETAILERS IN ENSURING GOOD SALES

Basically, a retailer must ensure that his inventory is in place to avoid irritancy his operations are smooth.

Communication is vital to win women shopper so a retailer or a sales associate must understand what the shopper is looking for exactly and take her to there.

Men can find the required spots as they don’t get distracted easily by the glam sham of the displays whereas a woman may be required to be hand held and led to the spot.

Another point to be considered is whether it is a luxury item or essential since different categories need different communications, sales associates must be trained to recognize and react to shopper’s cues.

Women are more apt to be angered by a lack of engagement behavior from the sales associates. For men, while engagement is still important, it's not as important as the product and getting in and out quickly. So, a retailer must keep this in mind when engaging with them.

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Lifestyle Retailing

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores.

John Players (Rs.500-Rs.600) Wills Lifestyle (Premium)

Wills Lifestyle- Premium Apparel store

60% - in house, 40%- designer

1. Wills Lifestyle, the fashion destination, offers a tempting choice:

2. Wills Classic work wear

3. Wills Sport relaxed wear

4. Wills Club life evening wear

5. Fashion Accessories

6. Essenza Di Wills - an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels.

7. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.

With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings.

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Wills Lifestyle has been established as a chain of exclusive specialty stores providing the Indian consumer a truly 'International Shopping Experience' through world-class ambience, customer facilitation and clearly differentiated product presentation. Our stores have established themselves as preferred shopping destinations in the prime shopping districts across the country.

At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and pleasing atmosphere. The use of space is refreshing, which is reflected even in the spacious changing rooms. Every store offers an international retailing ambience with the extensive use of glass, steel and granite, reflecting the most contemporary trends in store design, thereby creating a splendid backdrop for the premium offerings.

Wills Lifestyle was named Super brand 2009 by the Super brands Council of India recently. Wills Lifestyle has been twice declared 'The Most Admired Exclusive Brand Retail Chain of the Year' at the Images Fashion Awards in 2001 & 2003. as well as 'Most Admired Fashion Brand of the year - Fashion Forward' in 2009.

Wills Lifestyle is the title partner of the country’s most premier fashion event - Wills Lifestyle India Fashion Week. Taking the celebration of the event to its stores, Wills Lifestyle has partnered with several leading designers including JJ Valaya, Namrata Joshipura, Satya Paul, Ranna Gill, Bian by Gia P Fleming, Rohit Bal, Rohit Gandhi and Rahul Khanna and Rajesh Pratap Singh whose new edition of Designer wear is now available at Wills Lifestyle stores.

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The Collection

WILLS SPORT AUTUMN WINTER LINE for men plays to the city rancher and the highlander look. Design elements inspired by the English heritage, infused the sporty look; and blend of fabrics define the current collection. A dazzling gamut of colors, with palette ranging from black & blues, this is the most experimental range catering to men this season. A dedicated collection in denims in stylish mix palette comprising of forest greens twilight blues and browns with an array of checks round up the sports collection. A unique blend of checks, such as Tartan and Glenn checks all pay homage to rich British cultural heritage.

Polo, Rugby style sweaters in rustic mélange, coffee, red colors accentuates the outdoor look. Checks are the main highlights of the story.

WILLS SPORT WOMEN’S COLLECTION blends Casual Street, and heritage design elements together into a country rock mood. The look Trims such as lace, crochet lend a softer touch to the garments but structures and elements such as chunky knits, cables and ruffles give the collection a slightly rugged dimension. Inspired partly by the countryside look, this collection also features a lot of jackets in slim fits. Vibrant colors such as teal, blues, purple and black coupled with feather prints add to the character of the garments. Fabrics are more structured like cotton fabrics with patterns such as checks. The collection incorporates jackets, woolen tops & dresses slim fit denims, tights

and leggings.

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WILLS CLASSIC COLLECTION FOR MEN pays homage to the grandeur of the season with rich fabrics such as Marino wool, premium Egyptian cotton and Beaver Mélange amongst others. In deep shades to suit the sobriety of the season, this range offers an array of colors from maroon, deep purple, medieval blue, cappuccino, peacock green and teal.

LUXURIA COLLECTION

Incorporating the international runway trends such as the slim collars, V necks and chiseled cuffs, the contemporary offing from the arsenal favors a minimalistic sleek look with the Luxuria collection. Exclusively designed for those who live to experience luxury, this collection features garments with the most meticulous craftsmanship marrying some of the most exquisite design detailing with the finest of fabrics and trims. To satisfy the eye for detailing, only the finest Italian fabrics have been used with mother of pearl buttons and German threads.

With unparalleled comfort, Wills Lifestyle brings out the best that their customers truly deserve!

With unique blends of checks and interesting weave structures this collection goes beyond the traditional. The Wills Classic collection for women includes soft romantic pastel hues of pinks and whites. With different versions of checks and stripes in shirts, Wills Classic range also consists of newer style elements with feminine and elegant tops.

70% Egyptian cotton-classic compact cotton (140 yarn count) - MRP. Rs.2000

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WILLS CLUBLIFE for men is a more alluring and exciting range. Thematically inspired by London architecture, the look is chic, and edgy. Comprising of fabrics such as cotton and linen blends, it procures a softer look with less rigid construction. Reversible fabrics have been used this season for shirts to add a unique style to each garment. The color stories range from burgundy, olive, purple and grey’s with a touch of shine. Superior high count fabrics have been used along with weaves such as dobby and jacquard. Some of the fabrics used have metallic look and sheen to add glamour to the collection.

WILLS CLUB LIFE WOMEN collection is a nostalgic collection reverberating to a more delicate and layered look. The romance of frills layered into structures and satins following it into contours determine the premise of this season’s Club life collection. Color palette includes deep shades in blacks and browns. Construction remains soft keeping in with the theme. Silhouettes are more drapery and flowing with the use of fabrics used are chiffon, cotton and viscose blends along with satin. Prints comprise of resplendent floral motifs. Lowers comprise of denims, dark and slim fitted capris and cord slim end trousers.

Accessories such as ties, belts, bags, stoles, scarves, shoes will accentuate this Autumn-Winter collection.

Wills Lifestyle presents ''Occasions'' - a beautiful, ready to present gift pack with an exquisitely designed Gift Certificate that can be redeemed against a range of apparel, accessories and personal care products

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Range (Basic to High end Designer)

60%- Rs.1700 range Men- Rs.1099- Rs.11000 Women – Rs.1399- Rs.12000 A Dobby shirt for men- starts from Rs.2000 Denim- Rs.2000- Rs.2500 Club evening wear shirts- Rs.2000

Nature of shoppers towards garments

Linens respond well/ stack more linen shirts Linens need to be dry cleaned (once the bill generates then they

inform about the dry cleaning) Signature collection at cheaper range than exclusive store In Gujarat- more party wear sells/ formals and corporate clothes no

sale

The top selling collection depends on the season. Conventionally,

Apparel Handling Policy

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Nature of Sale of garmentNature of Sale of garment

Males- 60%Males- 60% Females- 40%Females- 40%

Classic

42%

Classic

42%

Sports

34%

Sports

34%

Club

18%

Club

18%

Signature

6%

Signature

6%

The clothes have 6 months guarantee period. If the customer complains of the quality of the garment like post washing the color fading or the cloth wear off, then within 1 month the garment is exchanged. If the customer has a complain post 1 month than the garment is sent to the lab at Gurgaon for testing. The test result determines the nature of spoilage and the decision is taken by Head office. The duration of this entire process and the test results to come out is about 25 days.

Complaints by customer received – approximately once or twice per month

VISUAL MERCHANDISE (SILENT SELLER)

Color of season / themes – VM head sends VM from HO. Instruction of VM- VM agency (Germany) Initially stock was in stack. Now most of them are hanging (FRCH)

FOOTFALLS

Footfalls at Phoenix branch is 100 on weekdays and 300 on weekends. At Koregaon Park store the footfall on weekday is 20-25 and weekend is 70-80. The store is comparatively newer.

TARGETS

Targets are allotted to every store on 6 weekly basis. They are allotted depending upon the performance of a store. Koregaon park store has not received breakeven but is meeting targets timely.

PARAMETERS

Freedman policy/ KPI- key performance indicators Business is measured as per no. of footfalls and selling of

merchandise

GOVERNMENT DOCUMENTS

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1) Store license

2) R.C

3) Staff attendance register

These are the documents checked during inspection and maintained regularly by the staff.

Logistics

Warehouse- Mandoli (Delhi) and bangalore Keep tab by Moovex updating the stock Retail store server- billing RSS 1 shirt reorder value is updated in moovex and it gets reordered.

Automatic updating system Delivery order

Delivery order (DOM) 3 days to order generation- Air order 1 day before mail is sent to warehouse for the order and 2nd

day morning stock gets packed to be sent

STOCK STATEMENT REPORT

DATE

OPENING STOCK

STOCK INWARD

SALE RETURN OUTWARD GETPASSCLOSING

STOCKBOOK STOCK

VARIANCENET

VARIANCE

4 JUNE 2012

2826 0 32 1 0 0 2795 2779 -16 136

Opening stock is the number of units of merchandise stock in the store. Stock inward is the number of units coming in the store. Sale is the units sold. Return is the number of units returned. Outward is number of units sent to warehouse for exchange or out of season stock. Closing stock is the total number of units in the store at the end of the day.

RETAIL STORE FRONT (RSF)

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Quick Entry When customer buys a garment, the details of customer i.e. name and tel. no.

Detail Entry Customer ID- Customer associate enters the details of the customer or the garment code. This also includes Item no. , amount of garment. Thus CA’s targets are noted with customer details

Advance OrderAdvance InvoicingAdvance CancellationSale return Exchanges/ Options-

1) Sellable2) Discard / Defective3) CMP Repair

Item Search To check if available with any other store or warehouse. They have 2 warehouses. One in Mandoli and other in Bangalore

Customer Search Customer details can be searched by keying tel no. or garment code

Xout Sale done for the dayDay End stock Stock at the end of the day

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Promotions

Current promotions- buy wills signature Men jacket and take home Men shirts up to Rs.2000 for free

Tie ups with restaurants/ malls (MM vouchers) Had tie-up with Titan. No promotion off late.

Club Wills -Loyalty cards

Club Wills, the lifestyle privileges Programme of Wills Lifestyle, takes our relationship with our valued customers beyond fine fashion to the realm of fine living.

CLUB WILLS OFFERS ITS MEMBERS:

Reward points on every purchase at Wills Lifestyle that can be redeemed against exciting lifestyle reward options

Personalized card that allows earning and redeeming of points

Host of lifestyle privileges from Wills Lifestyle and its premium partners

Exclusive in-store service privileges for a shopping experience that's refreshingly international

MEMBERSHIP ELIGIBILITY

Club Wills membership is offered at four levels, each with its own bouquet

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of privileges and added benefits. The eligibility is based on purchases made till date.

PRIVILEGE Entry to Club Wills on a one time purchase of Rs.5000 or your

second purchase at the store Members earn 2 reward points for every Rs.100 spent

Silver On an accumulated spend of Rs.10,000 at Wills Lifestyle Members earn 2 reward points for every Rs.100 spent

Gold On an accumulated spend of Rs. 40,000 at Wills Lifestyle Members earn 5 reward points on every Rs. 100 spent

Platinum

On an accumulated spend of Rs. 1,00,000 at Wills Lifestyle Members earn 7 reward points on every Rs. 100 spent

MEMBERSHIP REWARDS

Club Wills offers membership across 4 tiers, each with its own bouquet of privileges and added benefits.

Shopping Benefits - Shopping has never been so rewarding. Customers earn points on every spend at Wills Lifestyle.26 | P a g e

Redeem Reward Points - Club Wills members can redeem their points against a host of lifestyle reward options

Fine fashions wear from Wills Lifestyle Premium personal care and grooming products from Essenza Di Wills and Fiama Di Wills

Luxurious stay at ITC-Welcomgroup Hotels Fine Dining at ITC-Welcomgroup Hotels Gourmet delicacies from Kitchens of India Travel needs at International Travel House Earn Bonus Points –Customers can Celebrate birthday and

anniversary with us and accelerate your earning with bonus points.

PERSONALIZED SERVICES

Wills Lifestyle offers a truly refreshing shopping experience. Club Wills makes your experience even more enjoyable with personalized services.

Shopping By Appointment – customer can Save time through personalized assistance

Complementary Monogramming Service –They can personalize shirt with embroidered initials

Priority Garment Availability - If he doesn’t find a particular garment, the customer just has to leave a request with the store manager

Doorstep Delivery - anywhere in India

LIFESTYLE BENEFITS

Club Wills brings to a bouquet of lifestyle benefits exclusively designed to complement customers taste for fine living.

Complimentary WelcomAward Gold Membership Exclusive Offer on ITC-Welcomgroup Dining Programme

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Complimentary Room Upgrades at ITC-Welcomgroup Hotels

Exclusive offer from Fortune Hotels and WelcomHeritage Hotels

Enjoy hospitality at ITC Port Lounge at the International and Domestic airports in New Delhi

Special offers on car rentals from International Travel House

Receive special invites to fashion and lifestyle events from time to time

Customer relationship

Customer helpline number is available online. Customer service provides customers with timely updates and offers during special occasion or promotional activity

Sales staff in the store also calls the customer on HO’s permission and provides them updates on offers and promotion. (Thane branch)

Sale Season (January and July)

Sale- 40%-60% (end of season) 1st sale- Jan last week / July 1st week Duration of sale- depends on inventory (6 weeks- 1 month) Decided by HO. The reason for the sale is for the clearance of last

season’s stock for the new season garments. Normally the stock is rotated in every sale depending on the inventory

Age of merchandise is decided as per the codes. Codes like season 1- old and season 22- recent is provided to the garments. Thus the age of the merchandised could be determined

Shrinkage

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There are 2 types of Shrinkages

1) Shrinkage due to defects in garment when received from the Warehouse

2) Shrinkage due to ill handling by the staff- This includes staff handling the garment roughly and also the theft

Pilferage of Wills lifestyle Koregaon Park Branch is 1%. 1% pilferage is allowed as per the company’s policy and the shrinkage caused due to ill handling of the garment by the staff is dealt with in following manner. 40% is deducted from operation managers and 60% from customer associate’s and staffs salary depending on the spoilage.

No checking of bags/ RFID stopped due to rising cost Shoplifting- management is alert regarding the same as salary is

deducted and management is responsible to avoid it Customer associate does billing of each customer. Thus sales

converted and targets met

Sale

Koregaon ParkAverage sale 10 Lakh/monthRent 2 lakh /monthExpenses *4 lakh/ monthProfit 6 lakh/month

Parameters for measuring revenue

4 parameters for measuring revenues

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*inclusive of rent, Fixed and variable cost

Conversionso 2 walk ins, 1 buy- 50% conversion. Individual conversions

measuredo Wills Koregaon park plaza conversion- 22%o Wills Colaba conversion- 40%

Basket sizeo No. of products customer buys. Cross pitch thus basket size

increaseso 2.1- Basket size KPIo The stores meet the average Basket size

Average Garmentso AGR- 1000o AGR- 5000 for 5 itemso AGR wills lifestyle 1800-1900

ATV (average ticket value)o Basket size*Agro Store- 12, 00,000o Bill- 20 invoiceso ATV- Store revenue/billo Daily updates are sent to HO to note footfalls mapping and

basket sizeo ATV calculates how many garments and at what price pointso Avg TV- 4000o Average ticket value= Sales/Invoice

Competitors of Wills Lifestyle

Zodiac

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Van Heusen.

Allen Solly

Marks and Spencer

Gaps and Recommendation

During the study end of season sale was going on. Sales are perfect opportunity to introduce the customer and pitch in especially the fresh stock

Most customers felt the stock was not fresh, customer associate could have directed the customer to fresh stock

Customers associated the brand as premium, recognized the brand as Indian and well-known brand, appreciated the quality but found the clothes expensive. They mention they would prefer a Zodiac or a foreign brand over Wills if they have to cough up in the same range

Brand is more known for Men. Women prefer competitors over Wills. They complain about the lack of variety. The brand has given more emphasis on Men clothing than women. Women constitute maximum proportion of shoppers thus the brand can introduce more variety for women. Luxuria is private label meant for Men. They can introduce one targeted to women. 70% of merchandise available catered to men in the store.

Security is weak. Chances of theft or ill handling are high. A request for cameras is sent to HO by the staff .

Luxuria private label can also be stacked at shoppers stop or lifestyle to increase sale of the brand.

Bibliography

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Interview with Wills lifestyle Koregaon Park Plaza Operation Manager

References from Interview of Arif Sheikh, President Retail, Advance India Projects Limited and Susil S Dungerwal, Chief Mall Mechanic, Beyondsquarefeet Advisory

Franchising world Magazine, Retailer Magazine

Franchiseindia.com

Retail management strategic approach-Barry Berman and Joel R. Evans

Retail management by Swapna Pradhan

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