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Fashion Retail Managment - NIFTRajyalakshmi 1

Chapter one

Fashion Retail Management


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Contents

Overview of Retailing Environment

Current scenario

Emerging trends in Retailing


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Fashion . Fashion refers to the

styles and customsprevalent at a given time.

In its most common usage

however, "fashion"describes the popularclothing style.

Fashion designers create

and produce clothingarticles.


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Retail .

has its origin in French wordretaillier and means to cut apiece or to break bulk.

is the sale of goods and

services to the ultimateconsumer for personal, familyor household use.

According to Kotler: Retailing

includes all the activitiesinvolved in selling goods orservices to the final consumersfor personal, non business use


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Management

a process of bringing about improvementin knowledge, skill, habits, and attitudes ofthe employees in an organization.


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Retailing Involves

Understanding the needs of customers

Developing good assortment of

merchandise Displaying the merchandise in a effective

manner so that customers find it easy and

attractiv

e to buy.


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Retailing

Part of distribution channel

Manufacturer

Wholesaler

Consumer

Retailer

Manufacturer

Retailer

Consumer

Manufacturer

Consumer


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Weekly MarketsVillage FairsMelas

Convenience StoresMom & Pop/ Kiranas

PDS OutletsKhadi StoresCooperatives

Exclusive Brand OutletsHyper/Super MarketsDepartment StoresShopping Malls

Traditional/Pervasiv

e Reach

Government

Supported

Historic/Rural

Reach

Modern Formats/

International

Evolution of Indian Retail

Source of

EntertainmentNeighborhood

Stores/Convenience

Availability/ Low

Costs /

Distribution

Shopping

Experience/Efficiency


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Retail Environment

Retailer

Importer

Secondary

Sectors

suppliers

Competitors

Primary &

Secondary

Sector

Share Holder

Government

consumers

Media

Whole

Seller

Pressure

GroupRetailer

External

Environment


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Factors behind the change of

Indian retailing Industry

Economic growth

Urbanization Consumerism

Brand profusion

Availability of real estate


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Fashion Retail Managment - NIFT

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Why retailing ???

Wide range of products/brands at oneplace

Breaking bulk Holding inventory Providing services Increase value of products & services


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Some facts of Retailing

Retailing Worlds largest private industry

US$ 6.6 trillion sales annually

Indian retailing Largest employer after agriculture - 9% of population

Highest outlet density in world

Around 12 million outlets

Still evolving as an industry

Long way to go as only 3 % of the sector is organized.


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Organized & Unorganized Retail

Organized retailing is based on the principleof unity and unorganized retailing is based onthe principle of singularity.

Retailing in India is predominantlyunorganized.


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Categories of Indian Retail

Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas(ShoppersStop), Hiranandani(Haiko),

Dedicated brand outletsNike, Reebok, Zodiac etc

Multi-brand outletsVijay Sales, Viveks etc

Manufacturers/ Exporters Pantaloons, Bata, Weekender


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Fashion Retail Environment Massive spread-out of the malls & Boom in luxury retail

segment. Mergers and acquisitions The advantages by the elimination of global textile quotas in

2005. Expansion strategies of brands and retailers. Many international brands march into domestic markets. (Guess,

Gas, levis etc.) Indian fashion designers marked their names at International

platforms. (Ritu Kumar, Ritu Beri,Tarun Tahiliani ) Boom in luxury retail segment.

Considerable expenditure on ad and marketing by apparelbrands.


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Current scenarioPessimist scenario With 2009 now officially

labeled as a recessionaryperiod

22 retail businesses,representing approx.

66,000 jobs closed in thefirst three months of theYear

A further 4,000 retailjobs have been lost

through cost reductionmeasures by retailcompanies.

Optimistic scenarioThe growth of industry & itwill touch Rs. 18,10,000 cr by2010.Organized Retail is

expected to constitute 13%of itThe report is based onrising economic growth rateof 8-9 per cent A hike in average salariesby about 15 per cent whichmay trigger the rate ofconsumption.


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Apparel Retail Industry Current Scenarios

The apparel industry contributed to thelargest share of the organized retail pie, withrevenues of Rs.29,800 crore(39.3%).

Indian apparel market value Rs.1224 bn Indian apparel volume 5644 million

Koutons has 260 stores

Big Bazaar has 56 stores


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Emerging trends in Retailing

The trends to follow in the future:

The Indian Organized retail sector will grow up to10% of total retailing by 2010.

No one single format can be assumed as there is ahuge difference in cultures regionally.

The most encouraging format now would be the

hypermarts.

The hypermart format would be further encouragedwith the entry of the MNCs.


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Thank You

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