comparison between private labels and brands of shoppers stop limited

36
Comparison between brands v/s private labels of “Shoppers Stop” limited Jalandhar. Presented by: K.D.Shukla.

Upload: shukla-dev

Post on 08-May-2015

1.754 views

Category:

Business


5 download

DESCRIPTION

This presentation will help you to understand the difference between private labels and brands in retail industry.The pricing and promotional strategy used by retailers in Indian retail industry.

TRANSCRIPT

Page 1: comparison between private labels and brands of Shoppers stop limited

Comparison between brands v/s private labels of “Shoppers Stop” limited Jalandhar.

Presented by:K.D.Shukla.

Page 2: comparison between private labels and brands of Shoppers stop limited

Objective of the study:

• To understand the importance of private labels. • Study of total spending capacity of customers in shoppers

stop.• To understand the pricing strategy of private labels in

shoppers stop.• To compare private label pricing of shoppers stop with

Lifestyle.• To compare promotions of PLB of shoppers stop with

Lifestyle.

Page 3: comparison between private labels and brands of Shoppers stop limited

Scenario of current Indian retail industry:

• The Indian retail market is estimated to be US$ 450 billion.• It contributes up to 20% in India’s total GDP.• Fifth largest retail industry In the world.• Expected to grow at the CAGR of 12%.• Organized retail share in total market is only 4%.

Source:http://tejas.iimb.ac.in/articles/98.php

Page 4: comparison between private labels and brands of Shoppers stop limited

Current scenario of Indian apparel industry:

• Current estimated size is US$ 80billion.• Currently growing at the CAGR of 11%.• Expected to grow to $220billion till 2020.• Menswear is contributing 43%, 38% women's wear and 29%

kids wear.• 21% contribution of private labels.

Page 5: comparison between private labels and brands of Shoppers stop limited

Current scenario of Shoppers Stop:

• Founded in 1999.• Currently having 61 stores including 2 airport stores.• Growing at the CAGR of 16%.• Total revenue of Rs. 25597 millions.• Total space of 3.5 million square feet .• 40.2 million footfall in 2012-13.• 14000 employees.

• Source: shoppers stop annual report 2013.

Page 6: comparison between private labels and brands of Shoppers stop limited

Key managers of shoppers stop Board of Directors

S.No Name Designation

1 Mr. Chandru L Raheja Chairman / Chair Person

2 Prof. Nitin Sanghavi Director

3 Mr. Shahzaad S Dalal Director

4 Mr. Ravi C Raheja Director

5 Mr. Nirvik Singh Director

6 Mr. Neel C Raheja Director

7 Mr. Gulu L Mirchandani Director

8 Mr. Deepak Ghaisas Director

9 Mr. Govind Shrikhande Managing Director

10 Mr. B S Nagesh Vice Chairman

Key Executives

S.No Name Designation

1 Mr. Sanjay Chakravarti Finance(Head)

2 Mr. Prashant Mehta Vice President - Legal & Co. Secretary

Page 7: comparison between private labels and brands of Shoppers stop limited

Current scenario of Shoppers Stop:

• Conversion ratio of 23% in 2012-13.(28% in 2008-2009).• Apparel contribution is 59.9% in year 2012-13.• Private label contribution in 2012-13 was 15.9% and growing

at the rate of 16%• Average selling price increased from 821 in 2009 to 1062 in

2013.• Average transaction size 2481 RS.

• Source: shoppers stop annual report 2013.

Page 8: comparison between private labels and brands of Shoppers stop limited

What is private label and national brand.Private labels National brands

Private labels are produced by, distributed by, and carry the name of the retailer.

National brands are produced by, widely distributed by, and carry the name of the manufacturer.

Limited distribution Wide distribution

High margin for retailer Low margin for retailer

Control on products. No control on products.

Page 9: comparison between private labels and brands of Shoppers stop limited

Need of private labels• Higher margin.• Control.• Negotiation.• exclusiveness.• Store loyalty.

Page 10: comparison between private labels and brands of Shoppers stop limited

Factors affecting the buying

Private labels Brands

Store display Brand loyalty

Packing Brand experience

Credibility Brand image

Advertising Fitting

Promotions Comfort

Price Fabric quality

Variety Price

Behavior Durability

Quality

Availability

Page 11: comparison between private labels and brands of Shoppers stop limited

Share of PLB in total sales.

Page 12: comparison between private labels and brands of Shoppers stop limited

Total footfall:

Page 13: comparison between private labels and brands of Shoppers stop limited

Conversion rate:

Page 14: comparison between private labels and brands of Shoppers stop limited

Average selling price:

Page 15: comparison between private labels and brands of Shoppers stop limited

Transaction size:

Page 16: comparison between private labels and brands of Shoppers stop limited

Shrinkage rate:

Page 17: comparison between private labels and brands of Shoppers stop limited

Consumer’s Perception of In-house Brands versus Established Brands

Page 18: comparison between private labels and brands of Shoppers stop limited

Private label in men’s formal and semi formal section

Private label Shirts Trousers Shirts(SF) T shirts

STOP 999-1799 1299-1699 - -

Acropolis 799-899 - - -

Austin reed 1299-2099 1700-1900 - -

Vettorio fratini

- - 1599-2100 -

Page 19: comparison between private labels and brands of Shoppers stop limited

Brands in men’s formal and semi formal section

brands shirts Trousers T shirts denim

Wills lifestyle 1499-2300 1699-1799 - -

Zodiac 1699-2300

Arrow 1599-2599 1399-2199

Louis phillipe 1799-2399 1699-2199

Van huesen 1499-2000 1599-2000

Park avenue 1299-2199 -

blackberry's 1695-1795

Indian terrain 1599-2299 1099-1199 1699-1899

Page 20: comparison between private labels and brands of Shoppers stop limited

Findings:

• Starting range in formal section is priced below 45% than brands.

• Word of mouth is positive.• Pricing is at par with some of well established brands.• Advertising is missing.• POS advertising is missing.• Display .• Brand recognition is missing.

Page 21: comparison between private labels and brands of Shoppers stop limited

Brands in men’s casual section

Brands Shirts T shirts Denim

Mufti 1500-1800 1299 2199-3299

Numero Uno 1599-1699 799 1800-2499

Pepe jeans 1599-1899 1599 1999-3000

UCB 1799-2599 799-1599 1799-2999

Lee 1399-1899 1099-899 1900-3000

Wrangler 1395-2099 995-1295 2000-3000

Page 22: comparison between private labels and brands of Shoppers stop limited

Private labels in men’s casual section

Private label shirts trousers T shirts denim

Life 1299-1499 599-1199 1499

i Jeans wear 1399-1700 400-1299 1500-1800

Page 23: comparison between private labels and brands of Shoppers stop limited

Findings:

• Average price of shirts in brand is Rs.1400.• PLB are priced between Rs.1299 to Rs.1700.• Lack of variety and assortment.• Latest fashion trend cloths were missing compared with

brands.

Page 24: comparison between private labels and brands of Shoppers stop limited

Private labels in women’s western wearprivate labels

Shirts Denim

Legging tops dresses trousers

shurgs

STOP - - - 299-1099

999 1299 -

LIFE 1199-1899

- - - 1099-1799

-

Insense - - - 899-1199

1299-1499

- -

i- Jeanswear

1199 1250 - 499-999

- - -

Latin quarters

- - 999 999-1690

1800-2490

- 999-2160

Noi - - - 699-1299

- - -

ED - - - 599-1199

- - -

Page 25: comparison between private labels and brands of Shoppers stop limited

Brands in women’s western wearBrands Shirts Deni

mLegging

Tops dresses

Trousers

Tunic

shurgs shorts

Remanika - - - 390-1800

1200-2200

- 1100-1500

980-1200

-

Levis 1799 1799-2399

- 1399 - - - - -

Vibe - 1299-1899

- - - - - - 1249-1299

Sepia 1399-1499

- 899 899-1199

1099-1899

899 - - 899

Gypsy - - - 1099-1599

1995 - - - -

Wills 1299-1999

- - - - 1699-2499

- - -

Global desi

- - 799 1099-1899

- - 1295-1795

- -

Page 26: comparison between private labels and brands of Shoppers stop limited

Finding (women’s western):

• Prices are charged at par to brands.• Quality of fabric is good.• Staffs are cooperative and product knowledge is good.• Shorts and shirts is not available in private labels.• Legging is missing in almost all the private labels.• Display is attractive and changes regularly.• Advertising is their on social media platforms such as you

tube. • Regular promotional schemes.

Page 27: comparison between private labels and brands of Shoppers stop limited

Private labels in ethnic wear

Private label

Kurti Leggings Dupatta Salwar

STOP 699-1499 - - -

Kashish 899-1799 - - -

M&M - 499 299 599-649

Haute curry

799-1599 - - -

Page 28: comparison between private labels and brands of Shoppers stop limited

Brands in ethnic wear

Private label

Kurti Suites Tops

W 799-1099 - 999-1099

Biba - 1799-6000 -

Sana 599-999 - -

Page 29: comparison between private labels and brands of Shoppers stop limited

Findings(ethnic wear):

• Ethnic wear section is doing good in terms of private labels.• Most of the assortment is private labels.• Pricing is competitive in kurti section.• Display is attractive.• Brand awareness missing.

Page 30: comparison between private labels and brands of Shoppers stop limited

Pricing with comparison with lifestyle

Categories Shoppers stop Lifestyle

Men’s formal 700-2099 599-1400

Men’s casual 400-1800 300-1700

Women’s western 299-2490 199-1899

Women’s ethnic 299-1799 99-1500

Page 31: comparison between private labels and brands of Shoppers stop limited

Findings:

• Shoppers stop pricing in formal section is almost 50% higher than lifestyle.

• Shoppers stop men’s casual pricing is almost same but when it comes to assortment lifestyle outplays shoppers stop.

• Shoppers stop women’s western wear pricing 25% higher than shoppers stop.

• Ethnic sections pricing is higher in case of shoppers stop and priced at least 20% higher than lifestyle.

Page 32: comparison between private labels and brands of Shoppers stop limited

Promotional schemes comparison with lifestyle

Categories Shoppers stop Lifestyle

Men’s formal Up to 50% off Up to 50% off

Men’s casual Up to 50% off Up to 50% off

Women’s western Up to 50% off Up to 50% off

Women’s ethnic Up to 50% off Up to 50% off

Page 33: comparison between private labels and brands of Shoppers stop limited

Findings:

• Promotional offers are exactly same in both the stores.• Additional 10% off is there on the first citizen card holder of

shoppers stop and 15% off on lifestyles inner circle.• Promotion and exposure is more with PLB of lifestyle.• Variety and assortment in lifestyle casual section is higher .• Shoppers stop which has only two brand life and stop

compared with lifestyles Forca,MAX, Code, Kappa, fame forever.

Page 34: comparison between private labels and brands of Shoppers stop limited

Recommendations:

• Prices should be reduced.• Should take the advantage of odd size fitting.• Trendy merchandise should be introduced in casual section.• Display should be neat and tidy and look attractable.• POP advertising required.• Employees should be positive about PLB.• Conversion rate can be increased by adding merchandise

which customer buys without planning (impulse buying).

Page 35: comparison between private labels and brands of Shoppers stop limited

Conclusion:

• Having good mix of private label and brand. i.e. 21% par to industry average.

• Huge growth opportunity.• If private labels will come with some exclusiveness then

chances of growth is more.• Employee training and product knowledge .

Page 36: comparison between private labels and brands of Shoppers stop limited

Thank you.