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HI Fashions Co

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OfferingsPRODUCT DESIGN

T-SHIRTS

VESTS

BREIFS(GENTS)

BREIFS(LADIES)

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HI FASHIONS

T-shirts

MALE Sizes- XXL, XL, L, M

FEMALE Sizes- XL, L, M, S, XS

Vests

COMFI

Sizes-80,90,100,110

Briefs

MACHO

Sizes-XL,L,M,S

GENTS

NAUGHTY

Sizes-XL,L,M,S

LADIES

Product Mix and Product Line

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Channel Design

End user focus

Geography

Age

Sex

Rural/Urban

Shopping behaviour

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It all starts with consumer

Target Segment

Behavior

Geography

Demography

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Channel Function

Product Information

Product return and exchange

Availability of complementary products

Credit terms

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Hybrid Grid for multi channel

approach

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Benchmarking against

competitor

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Product flow

Mfg.Cost

PriceIntermediary Consumer

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Pricing Structure of T-Shirts

Factory price = P Excise duty = 0.05P

Avg. Sales Tax = 0.084 P Invoice price = 1.134P

Town Price = 1.2P MRP = 1.6P

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Pricing Structure of other

Products

Factory price = P Excise duty = NA

Avg. Sales Tax = 0.08 P Invoice price = 1.08P

Town Price = 1.14P MRP = 1.42P

Estimated Size

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Product StateEstimated Size

(10-11) Millionunits

Percentage Growth Rate 2011-2012 2012-2013

T Shirts

Delhi 7.8 39 6.90% 8.06 8.62Haryana 4.2 21 4.50% 4.29 4.49Punjab 6 30 6.20% 6.18 6.57

Rajastan

2

10

4.50%

2-04 2.14Total 20 5.95% 20.57 21.82

Vests

Delhi 20.4 18.25 2.50% 20.63 21.15Haryana 28.3 25.26 2.00% 28.58 29.15Punjab 30.6 27.29 2.20% 30.94 31.62

Rajastan 32.7 29.2 2.10% 33.04 33.74

Total 112 2.17% 113.19 115.66Briefs (M)

Delhi 26.9 30.61 2.30% 27.21 27.84Haryana 19.8 22.45 1.80% 17.82 21.03Punjab 21.6 24.49 2.10% 21.83 22.28

Rajastan 19.8 22.45 1.70% 16.83 17.12Total 88.1 2.00% 83.69 88.27

Briefs (F)

Delhi 15 36.59 1.90% 14.25 14.52Haryana 7 17.07 1.20% 4.20 5.04Punjab 12 29.27 1.70% 10.20 11.93

Rajastan 7 17.07 1.40% 4.90 5.59Total 41 1.64% 33.55 37.08

Total for all products251

262.832% 6% 15.77

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Intermediary Stays or Goes?

Elimination of intermediary

Reducing MRP by 10% increases

profit by 23%

But

Web is not an effective channel due to

its inaccessibility

New entrant doesnt have contacts

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Recommendation

Mix of distribution channel and onlinesales and own retail outlets

Hub and spoke architecture

Use t-shirt as the major component inthe product mix due to its high

profitability

Replenish high selling centres withmuch greater frequency than that of

low selling centres

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Recommendations

Assortment of products with localvendors to capture market share in rural

and semi-urban areas

National level mass media advertising

to enhance customers knowledge

about the product

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ASSUMPTIONS

Growth rate is uniform all through theyear

Quality is highly correlated with price

All our competitors enjoy almost equalshares in market

No vertical or horizontal channel

conflict due to efficient channel design No brand dilution and cannibalization

of other products

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THANK YOU