Global Marketing - Project (Country and Industry)

8/8/2019 Global Marketing - Project (Country and Industry)

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THE in In


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Total Population 1,156, 897,766(July 2010 estimate)

Population Growth Rate 1.41%(2010)

Urban Population 29% of totalpopulation

Rate of Urbanization 2.4% annualrate of change

Demographics

DemographicsTHEin India


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opulation SizeTHEin India


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Early 1990s liberalization

Developing open market economy

Less controls on foreign trade andinvestment

Increasing privatization to offsetfiscal deficit

Diverse Economy - Traditional andModern Agriculture, wide range ofmodern industries and services,

conomic OverviewTHEin India


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Services engine of growth

Major exporter of IT services andsoftware workers

Strong banking regulation and lowexport dependence

Escaped global financial crisis

Economy Overview conomic OverviewTHEin India


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GDP-real growth rate 7.4% (2009est).

GDP composition

Agriculture 17%Industry 28.2%

Services 54.9%GDP Per Capita 3,100Distribution of Family Income GINI

index 36.8Industrial Production Growth Rate

Economic Trends conomic TrendsTHEin India


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Total Exports: US$ 164.3 billionKey Exports:

Petroleum products, precious stones,machinery, iron and steel, chemicals,vehicles, apparel

Total Imports: US$ 268.4 billionKey Imports: Crude oil, machinery, fertilizer, iron

and steel, and chemicals

Economic TrendsEconomic Trends conomic TrendsTHEin India


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System of Government Parliamentary Democracy

Legal Environment Foreign companies can commence

operations in India under the Companies Act

1956 through

Joint Ventures and wholly owned

Political and Legal EnvironmentEconomic Trendsical and Legal EnvironmentTHEin India


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FDI can enter through automaticroute or government route.

Restricted through automatic route:

Petroleum Sector, Existing Airportprojects, broadcasting, defenseprotection, print media,

construction development, printmedia

Forbidden: Atomic energy,

Agriculture or plantation activities,Gamblin Lotter

Political and Legal EnvironmentPolitical and Legal EnvironmentEconomic Trendsical and Legal EnvironmentTHEin India


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Culturally diverse

Regionalism, religion, language, caste areall factors taken into account when doing

business Different cultures so different festivals for

buying clothes

Most foreign companies penetrate

metropolitan cities such as Delhi, Mumbai,Bangalore, Hyderabad

Meeting and Greeting Namaste

Meetings and Negotiations: Writing or

confirmed by phone

lture and Social FactorPolitical and Legal EnvironmentEconomic Trendstural and Social FactorsTHEin India


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IndustryOverview


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Indian Apparel Retail Industry

RMG* : -arket Size 2005 06 Value Per cent( . )Industry size Rs Million ( )EUR Billion

- ( )Domestic Market size A .13 64 .68 8

- ( )Export Market size B .6 10 .31 2

( + )otal Market size A B .9 75 100

:The Indian Apparel Industry is segmented into two sectors &Domestic Export segments

: .ote Per cent indicates the domestic and export market with respect to the total market size* -RMG Ready Made Garment Industry

-ndia is very strong in niche segment and short run fashion garmentsT Kearney report suggests that the Indian retail market has the largest growth potentialin comparison to the international retail market and is expected to grow to 4 to 5 per ce

.a year in volume and 13 per cent in value

lture and Social FactorPolitical and Legal EnvironmentEconomic Trendstail Apparel IndustryTHEin India


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Ready-Made Garment Industry

The omestic RMG industry is highly fragmented with a few players This degree of fragmentation can be attributed to government policies

Small and unorganized local players largely dominate the domestic RMG Market

The omestic market .worth Euro 13 64 billion can further be segmented into Men s wear segment Women s wear segment Kid s wear segment

lture and Social FactorPolitical and Legal EnvironmentEconomic Trendsdy Made Garment IndustryTHEin India

(Value EUR)Billion

Percent

Men s Wear segment 5.65 . %41 4

Women s Wear segment 4.69 . %34 4

Kid s Wear segment 3.30 . %24 2


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COATSFORMAL

TROUSER

-SHIRTS

JEANSWEAR

COATSCASUAL

MENSSEGMENT

,Of these three segments en s Wearegment .is estimated at 5 65 Euro-billion in 2005 06 accounting for about. %1 4 of the total domestic RMG market

Segment has grown at a CAGR of around

%8 - -from 2001 02 to 2005 06 Men s Wear segment has further been

categorized as depicted by thediagram

SAREES

TOPSEANSWEAR

SHIRTS/TROUSERS

-SHIRTSOMEN S

SEGMENT

SHIRTS

DRESSES The omen s Wear segment is estimate

. -4 69 Euro billion in 2005 06accounting forabout . %4 4 of the total domestic

RMG market Segment has grown at a CAGR of 8%

- -from 2001 02 to 2005 06

Women s Wear segment has furtherbeen

lture and Social FactorEconomic Trendsdy Made Garment IndustryTHEin India


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UNIFORM

REGULARDRESSES

TROUSER

SHIRTS

JEANSWEARS

-SHIRTS

KIDSSEGMENT

The id s Wear segment .is worth 3 30 Euro billionand accounts for about . %4 2 of the total domesticRMG market

% -Segment has grown at a CAGR of 14 from 2001

-02 to 2005 06

Kid s Wear segment has further been categorizedas depicted by the diagram

Ready-Made Garment Industrylture and Social FactorEconomic Trendsdy Made Garment IndustryTHEin India


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. ( )1 Pantaloon Retail India Limited

. 2 Shopper s Stop

. 3 TATA Trent

.4 Globus Stores Pvt Ltd

.5 Piramyd Retail Ltd

.6 Arvind Brands Ltd

. ( )7 Provogue India Ltd

.8 The Raymond Group

.9 Madura Garment

.10 Reliance retail Ltd

. ( , )11 Wills Lifestyle Lifestyle Retailing Business Division ITC

.12 Murjani Group

.13 Landmark Group

Profile of Major Playerslture and Social FactorEconomic Trendsofile of Major PlayersTHEin India


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Industry Snapshot

, ,ucci Group Fendi are in talks with major retailers like the, , antaloon Lifestyle Shopper s Stop etc to set up their brands inIndia

The urjani Group with its Joint Venture with arvin Traub focuses onbringing

international brands to the Indian retail market

The Murjani Group launched ommy Hilfiger in India in 2004 Future strategy of the group for the Indian markets would be to create

-multibrand retail platform

The Group has already formed exclusive distribution agreements withthe brands

like , , , ,ucci Jimmy Choo Calvin Klein FCUK TUMI and - -uild A Bear

Profile of Major Playerslture and Social FactorEconomic Trendsobal Players inIndiaTHEin India


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Distribution Channels in Indian RMG Industry

DISTRIBUTION

CHANNELS

OWNED STORES /

EXCLUSIVE

BRAND OUTLET

DISCOUNT

STORES

EXPORTS

RETAILERS

DISTRIBUTORS

MULTI-BRAND OUTLETS or

Industry SnapshotProfile of Major Playerslture and Social FactorEconomic Trends ribution Channels in GMBTHEin India


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Various Distribution Channels

/wned Stores Exclusive Brand Outlets Advantages

direct medium of selling apparel

high realization for the garment sold

-end user feedback and knowledge of their preferences

Disadvantages requires greater advertising expenditure

greater fixed costs

Some of the layers following this channel Provogue Raymonds

Madura Garments

Arvind Brands

Zodiac Clothing

Century Textiles

- -Manufacturer cum Distributor

Industry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsous Distribution ChannelsTHEin India


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- ti Brands Outlets or hopping Malls- ,Organization sells apparels to multi brand outlets which in turn sell them through large

MBO s are located in prime locations of the various cities and towns ensuring maximum reacMBO s are chain of shopping malls having a presence in more than one location

;Realization from this channel is lower than those earned by selling to the retailers asgher margins because their costs are higherSome of the ajor players :in this channel of distribution hopper s Stop antaloon Retail ( )estside Trent Globus yramid Retail eliance Retail

- -Manufacturer cum Distributor

Various Distribution ChannelsVarious Distribution ChannelsIndustry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsous Distribution ChannelsTHEin India


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RETURNS

HIGH

Low,ealizations butlower dvertising and

Higherrealizationshan sellingthrough

distributors

ixed costs

LOW

MEDIUM

dvertising andixed costs arelower

High ,ealizationsbut

advertisingnd fixedosts arehigh

WN STORESISTRIBUTION CHANNELS

Various Distribution ChannelsIndustry SnapshotProfile of Major Playerslture and Social FactorEconomic Trendsarison Between Distribution ChannelsTHEin India


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Market EntryStrategy


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Profile of Major PlayersWOT AnalysisTHEin India

InternalFactors

ExternalFactors

Strengths Weakness

Opportunities

Threats

Brand image,influential overseas

,infrastructureproduct quality and

design

,Price recent product, ,performance fashion

reactive

Growing India market

Low cost of labor andmaterialsExpanding product

line Collaborationwith other designers

Promotionalopportunities

CompetitorsZaraLimited market

informationSocial

DifferencesImitation goods

Economic( )currency

*S O StrategyCollaborate with local

,designers use brand imageto penetrate Indian

,market localmanufacturers

Aggressive expansion ofstores

* W O Strategy

Local manufacturing to,reduce cost work with

local designers on new,fashion trends make

first moves towardsexpansion

*S T StrategyCooperate with localpartner

Customized designProper value proposition

Use local resources tohedge currency risk

Differentiate from

imitation

* W T StrategyCompete with Zara throughfashion forward design

.and lower price Investmoney into market

,research constantlyupdate stores with newstyles to deter imitators


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Profile of Major Playerstry StrategiesTHEin India

Cooperative Joint Venture

Manufacturing

zation: $22 Billionts:& , ,Confectionery Branded Apparel Personal Care and Stationery

Birla GroupITC Limited

Retail Channels/Advertising Marketing

World's largest player in the Viscose Staple Fiber industryLocations: , , ,India Laos Thailand

Malaysia and ChinaPulp and plantation interests in CanadaMajor player in the branded garments market in India


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Profile of Major Playersket Coverage StrategyTHEin India


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4P s


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Profile of Major PlayersP sTHEin India


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Profile of Major PlayersProductTHEin India


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Profile of Major PlayersPlacementTHEin India

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Profile of Major PlayersPriceTHEin India

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Profile of Major PlayersPromotionTHEin India

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Profile of Major PlayersResourcesTHEin India

THE


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Profile of Major PlayersrojectionsTHEin India

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Profile of Major Playersntrol ImplementationTHEin India

Documents

Global Marketing - Project (Country and Industry)