BESTSELLER FASHION ACCESSORIES BRAND IN INDIA

Fremina

The Global Indian Woman

By

Keerthan G

IIM Indore

Presentation flow

Brand Fremina

• Customer Profiling

• Target Market

Market analysis

• Apparel accessory

• Bags, belts etc

• Fashion jewelry

• Time and Eye wear

Competition analysis

• Unorganized

• Organized

• E- Commerce

3 Way Strategy

• Product strategy

• Pricing Strategy

• Channel Strategy

Marketing mix

• Visibility

• Engagement

Revenue

• Timeline

• Projection

The Brand- Fremina

The name is the portmanteau of two words Free and Femina to address the needs of the Free Indian Feminine who is young and in search of affordable fashion for everyday use.

Target Market From the profiling , the target customers are

Urban women- in Metros and Tier 1 cities for stores

Online channel - Pan India

Age group- 22 to 40 years

Value, affordable fashion buyers

Everyday usage

Customer Profiling parameters

Behavioral: User Status, benefits sought

Demographic: Income, Age group

Psychographic: Opinions, activities, lifestyle

Buying condition: Purchase location, who buys

1. Rising per capita income- average income in India is rising by 10 percent

2. Rising Urbanization- 42% by 2030

3. Younger population 4. Dropping dependency ratio-

35% in 1991 to 28% in 2016

India Facts Market opportunities in

Accessories

Market analysis

Fashion Accessories can be broadly divided into four categories

Apparel Accessories

urban Indian market - Rs 12 billion in 2012

57% of the market is unorganized

Purchase location- traditional streets and

neighbourhood markets

Other Fashion Accessories, including Bags, Belts, Wallets etc

Rs 15 billion in value in 2008

Women Handbag Market size by Volume and Value

Fashion Jewelry • The jewellery market was estimated around USD 19 billion growing at 15% per annum • Fashion jewelry is growing rapidly in Urban areas • dominated by the unorganized sector

Time wear •market for time wear is 42 million units by volume •and about Rs 27 billion by value •growing at 10%~15% per annum

Eye wear •market is estimated at Rs 15 – Rs 18 billion •growing at 15% ~ 20% per year •10% of the market is organized

Competition Analysis

Unorganized Sector

Lower quality

Cheap products

Preferred by Lower income groups

Organized Sector • Many Apparel retailers have moved into accessories space •High growth in this segment has attracted many players like Fastrack from Titan •Conventional players like Shoppers Stop and Lifestyle stock National brands and Private labels •But most of these are expensive

Online or E-commerce portals • It has become popular among tech savvy young • People from tier 2 and 3 cities who do not have access to stores are flocking to this medium • Large choice available at finger tips • But no touch and feel experience and standardization

Competition is from three quarters

3 Way Strategy- Product Portfolio under Fremina

From secondary research on about fashion accessories on E-commerce sites, the following are the

conventional products being sold. So Fremina should have these in its portfolio because it already has the expertise of all these from its global Pieces Brand. The launches have to be in phased manner which is explained in timeline section later

Carried accessories

Handbags – Clutches,Tote Bags

Worn Accessories

Jackets, shoes, sunglasses, belts, Fashion jewellery, wrist bands, watches, shawls, scarves, socks and stockings

Suggested: to introduce Leather Phone covers and Fashion Umbrellas- These products are not available in most ecommerce as well as large stores

3 way Strategy( Contd.)- Pricing Strategy

In the initial year, price the products at cost to attract people to the brand and also to attain brand recognition

To test the market in the first year, the products need to be priced at value for customers

Online pricing needs to be in par with similar competitor offering in the first year to drive traffic to our brand.

High Value products like Watches and Eyewear to be introduced in the 2nd year after the brand is stable to charge a premium.

Loyalty schemes for frequent purchasers to reward and retain them.

3 way- strategy( Contd.)- Channel Strategy

Direct Channel - Own Store

Set up ‘Accessories’ space to sell it

For up-selling, place the accessories next to suitable products Ex. Scarves next to the dresses it matches with

A fashion expert to give relevant suggestions and fashion tips

Indirect channel -Departmental stores As it is going to be a separate brand, it can be placed in accessories division of large retailers like Shoppers Stop and Lifestyle This will give it exposure to large number of customers who flock to these stores to experience wide variety

Web Channel- E- commerce List the products on Midlevel Fashion e-retailers like Myntra and Jabong to reach to places where the first two channels cannot reach Also setup online store of your own and keep engaging your customers through Social media

Marketing mix

There are two objectives that need to be achieved by the marketing mix

Visibility Specific to target customers -Sponsoring Institute Fashion competitions - Ads in prominent Fashion magazines - Gift vouchers - Online ads on Facebook and social media

Engagement - Loyalty program by tying up with Payback Loyalty -Social media engagement by conducting contests on FB etc. - E- magazine to educate the customers about the trends and latest offerings in Store

May 2013 Own Stores-

Accessories

launch

Sept 2013 Web store

Launch(e.g.

Myntra)

Dec 2013 Departmental

Store

launch(e.g. Shoppers Stop

Feb 2014- Summer Launch of Time and

Eyewear

June 2014- Fashion Umbrella launch

Jan 2015- Leather Phone and Tablet covers launch

Timeline of events

Revenue Projections

Organized retail in India = Euro 170.3 billion

Growth of Organized retail = 10% p.a

Organized retail in 2015-16 = Euro 274.26 billion

= Rs. 15867 billion

Core Fashion Accessories Like Time Wear, Eyewear, And

Jewellery Constitute % Of Organised Retail

Market In India = 19%

Metros and Tier 1 contribution to revenue = 60%

If we consider the Share of Fremina to be of the total = 0.2% Then revenue of Fremina in 2015-16 = Rs. 361.7 Crores

Revenue –Year wise in Rupee Crores

0

50

100

150

200

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400

2013-14 2014-15 2015-16

Revenue Projections (Rs. Crores)

Revenue Projections

Thank you