introduction
TRANSCRIPT
INTRODUCTION
In today’s intensely competitive environment, companies today are constantly looking for
ways to satisfy customers by having a better understanding of changing customer
preferences. The over changing market characteristics have huge impact on corporate
decisions. The global environment also poses several complexities to the sellers in
understanding the market. Within the current marketing environment, competition
between products and services is becoming increasingly tough.
This report discuss about the branded garments against local garment traders including
producers of tailor made garments and comparing their demand in Goa. The main base of
our study is to know the competition faced by the local garment stores when branded
garments are preferred by most of the consumers, while, the branded stores facing the
same competition against the local traders.
A customer thinks very differently, uniquely that is called consumer behaviour. A
customer wants to get the full value for their money whatever he buys he wants full
satisfaction from that product. Our study also includes the consumers taste and demand
for type of garments. Their preference towards branded garments depends on the income
of the people, age – gender, regional (city/town) demand for local or branded garments,
effect on location of the market, seasonal variations.
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Objectives:
1. To study the competition faced by the branded garment against the local garments.
2. Consumer Perception for the above and their preferences.
Limitations:
1. Some store information is confidential like sales, future profit etc.
2. The survey does not include brand’s factory outlets
3. Sample size is limited.
4. Seasonal variation may lead to fluctuation in the statistical figures.
5. The survey was conducted for stores in the vicinity of Margao and Panjim.
Methodology
The study involves Primary survey through directly interviewing the branded
stores, local stores, and the consumers:
1. The owners of the Branded stores was interviewed to find their turnover,
problems faced, importance of location, and seasonal changes in the sales,
classifying their customers.
2. Similarly local garment stores were also interviewed to find about their
customers, sales etc.
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3. The customers of both; i.e. the Branded as well as local stores were
interviewed in different forms: Questionnaires: circulation of questionnaires
either physical or digital (E-mail), Interviews and observations.
- It involves use of secondary sources such as web and other research articles
Printed by various financial institutions and other journals and magazines.
Statistics Tools
Tabulation
The collected data is arranged in the form of rows and columns that is in the tabulation
form. The purpose is to simplify the presentation and to make comparisons.
Percentage analysis
The collected data which is present in the form of percentage will help us to get the clear
cut picture of the contribution of various responses.
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BRANDS AND BRANDED GARMENTS IN
INDIA
Foreign companies looking to tap the potential of the Indian market need to understand
that India is not one market, but many markets fragmented by income and growth rates,
language, culture and geography. There are 27 States, 7 Union Territories 587 Districts.
More than 70% of the people live in more than 550,000 villages. Languages are split into
18 major officially spoken, within which there are more than 482 different dialects and
sub dialects.
The design and colour sensibility and art form differ not only from State to State but in
many cases may be from district to district. More than 100 textile art forms are practiced
in different parts of the Indian States.
Branding was introduced to differentiate homogenous products such as clothing. Clothing
items (products) can now be bought according to the psychological elements that they
represent and not only for their physical characteristics and need-satisfying properties.
After liberlisation of Indian economy, there emerged more than 100 leading brands that
jostled for consumer mind space. Van Heusen, Louis Philippe, San Frisco, Peter England,
Allen Solly and Byford (of Madura Garments, a division of Indian Rayon); Arrow, Lee,
Raymond, with its offerings of Park Avenue, Indigo Nation, Wills Lifestyle, promoted
by ITC; Zodiac; Provogue, Adidas, Tommy Hilfiger, Lacoste, Benetton, Reebok, Nike,
Esprit, Levis etc.
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India is also a manufacturer and exporter of international brands for clothes like Gap,
Tommy Hilfiger, Espirit, Wills Lifestyle, Peter England, Allen Solly etc, after china and
Bangladesh. These developing countries export manufactured clothes with the brand tags
to the developed countries like Middle East, US, and Europe. As these countries, utilize
their labour for the manufacturing of international brands.
However, attitudes are evolving as advertising and improving living standards foster
greater brand awareness and loyalty. There is no shortage of opportunities for companies
that take the time to understand this complex marketplace of India.
FACTORS EFFECTING BRANDED GARMENT MARKETS
PRICE- The price has been defines as an important factor which influences the
brand image. The price determines the product quality and preference by its
consumer. The consumer generally confirms their standard price with the standard
quality of a product and determines whether it’s too low or too high prior to
product purchase, consumers evaluates a particular price comparison with a price
range based on their experience of the market.
Quality- Brand names can be Sign of Quality, either as a result of personal
experience with the brand or from judgment driven by advertisements. Most of
the brands are focused on their quality to increase margins. Customers always
believe in good quality products. The brand prefers to maintain their quality
which demands the price for its product. A good quality branded garment, thus,
effect the price range and the brand loyalty.
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Trends & Fashion- Branded garments consistently changes the trends and
fashions. Branded garment manufacturers are innovative and dynamic for every
season in terms of fashion. They create their own fashion for clothing and
accessories. Consumers consider fashion as part of an overall budgetary spend, so
apparel purchases now compete directly with other choices from the technology,
entertainment, beauty and general lifestyle categories for the discretionary rupee.
The urban fashion defines attitude, reflects life style and individuality. Thus,
influenced by brand endorsements by celebrities which creates a mindset of
fashion on the young generation.
Status Symbol- Branded apparels demand a high price for its quality offered.
Thus, creating a symbol of status, as observed, most of the branded clothes is
worn by the people falling in the category of high income, brand conscious etc...
The major cities like Mumbai, Pune, Delhi, Kolkata which have increasing market
demand for branded garments.
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GOAN SCENARIO TOWARDS BRANDED
GARMENTS AND LOCAL GARMENTS
Over the years, the Indian and the International garment brands are growing in the last
fifteen years. A few branded garments stores were present in Goa like the well old
Raymond’s. The major garment/ clothing market was in the hands of the tailor stitched
clothes which were in fashion and a few local garments retails selling multi-branded and
unbranded garments. Most of the branded garments franchise was located in Panjim for
last 10 years and now increasing at a slow pace in Margao, Mapusa & Vasco.
The major branded stores hubs are located in Margao and Panjim as these market places
are centrally located in the north and south of Goa. Panjim being the capital and a tourist
hub, the brand stores are recently establishing as the people’s preference for brand is
increasing due o brand awareness among the youth. With increase in the standard of
living and change in preference, attitude, and life style of the consumers, Goa has become
the next business destination for brand garments industry. People of this state are
followers of new fashion and trends irrespective of Age, class, etc.
TYPES OF BRANDES AVAILABLE IN GOA
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A few brands which are presently available in Goa mostly having their outlets at Margao,
Panjim , Vasco and Mapusa are- Raymond’s, Zodiac, Allen Solly, Peter England ,
Weekenders, Fab India, K-Lounge, Pepe Jeans, Levis , John Players, Live-in stores,
Spykar, Switchers, Adidas, Wranglers, Lilliputs, Ruff etc. The above brand consists of
men’s wear, women’s wear, kids wear, sports, and casuals to office wears.
Thus, Brands build customer loyalty by delivering excellent value no matter the price
point-high, low, or medium. Value includes Styling, Durability, Quality fabrics, and
consistent fit. To the consumer, a brand name represents familiarity, consistency, and
confidence in performance. Brand names when linked with lifestyle, self-expression, and
aspirations symbolize intangibles that are desirable to the consumer.
BRANDED GARMENTS IN GOA
The attitudinal shift of the Goan consumer in terms of "Choice Preference", "Value for
Money" and the emergence of organised retail formats have transformed the face of
Retailing branded garments in India. In the last few years, Goans have gone through a
dramatic transformation in lifestyle by moving from traditional spending on food,
groceries to lifestyle categories that deliver better quality and taste towards branded
clothing. The Goan brand garment retails growth can be attributed to the several factors
including
BRAND AWARENESS- the people of Goa are much aware of the brands available in the
Indian Markets. The young generation has knowledge of brands due to their marketing
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tactics towards the youth and brand loyalty. The brand awareness is created or promoted
by the branded garment manufactures rather than the franchise outlets.
More than 40% of the population in Goa is employed in other foreign countries, where,
such brands are easily available. Thus creates, demand for branded garments in the Goan
markets. Also, the urban population demands for the branded garments due to change in
lifestyle of the people.
ADVERTISEMENTS AND PROMOTIONS- The brands are advertised by different
Medias. The most effecting is the Television in Goa that reaches to every corner of the
state. Consumers having widespread knowledge of internet, where such brands are been
promoted through social networking, blogs, promos etc...
Advertisement plays a vital role for creating demand to particular brands. As per the
survey, brand awareness being high in urban population. Thus, most of the branded
retails or franchise has tote bags which move onto many hands. This marketing strategy
is opting by most of the local as well as branded garment stores.
INCOME OF THE PEOPLE- Goa has the highest per capita income compared to other
states in India. The people of Goa have high income among the other states in India,
through foreign remittances, business, tourism, and services. A monthly income of
above Ten Thousand Rupees prefers branded garments than local clothing as a Symbol of
Status. Also, the Goan people are fashion conscious and have a higher spending capacity
for quality products, which in turn demands for branded outlets at urban locations.
CREATING BUSINESS OPPORTUNITIES- the branding franchise or retails create
business opportunity in the urban areas. In Goa, the capital city has many brand outlets
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for past many years. Though, such a brand did not have much recognition and choice at
the early period, due to lack of brand awareness. In the year 2000, people demanded
quality garments as there were Chinese garments imported to India. Thus, creating brand
outlets in the urban locations. According to the demand at Panjim city, some of the
franchises moved towards Margao forecasting the demand for branded garments and
saving traveling expenses to the capital city for shopping in branded outlets.
LOCAL GARMENT MARKET IN GOA
The local garments are classified into tailor made and readymade unbranded clothes.
Most of the people are attached to local garments as branded garments are recently
emerging into the Goan markets.
The local garment stores are located in cities, towns, villages and every corner of the
market. All the Consumers categories attract to such type of stores, as these stores have
the basic idea of the consumer preference, variety and choice for clothing. Most of the
middle class and the lower class population purchase from such stores due to
affordability and choice. The quality may vary from the branded garments also there are
imitations of branded patterns. The local garments also consist of China manufactured
and imported garments which are preferred by the Goan consumers for clothing.
As Goa being a tourist sport, most of the International tourist prefer Indian fabric like
cotton and silk form the local markets, beach side local garment stores as International
brands are available in their home country. Thus, the local market in Panjim depends on
the International tourist as being a tourist spot.
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The local garments are mostly brought from different parts of our country as India is a
manufacturer of fabric that enhances small scale industry like Indore, Gujarat, Nashik,
Bangluru, Delhi, Kolkata, Mumbai etc in India and globally from Bangkok, China, Italy
etc.
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MARKET STRATEGIES
Market strategy is defined as an action plan for influencing customer choices and
obtaining a market share. Market strategy should entice customers to buy the product or
service. Market strategy encompasses customer perception of the relationship between
price and quality.
Is the quality of the product or service worth the price?
Is the price too low for the quality the customer desires?
Is the price higher than the customer's perception of quality?
Market research identifies the price and quality relationship customers perceive to be
important. Remember, customer perception is the bottom line. Market strategy also
includes the distribution channels for the product, pricing and terms of sale, promotion
and advertising plan, marketing budgets, inventory selection and management, visual
merchandising, customer relations and an evaluation of the marketing strategy.
The marketing plan provides information on what the market will be (retail, wholesale)
and what specific customer groups will be targeted, what will be sold, where it will be
sold, and how wide the area of distribution will be.
Ideally, market segments with a potential for high sales, profits, growth and a minimum
of competition are the most attractive. A marketing strategy is a process that can allow an
organization to concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage. A marketing strategy should be
centre around the key concept that customer satisfaction is the main goal.
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MARKET STRATEGY FOR GOA
Local garment stores Branded garment stores
Advertisements Word of mouth Brand awareness,
e-marketing
Local Cable TVs,
news channels etc.
Satellite channel broadcasters
e.g. Star, Zee, Sony etc.
Hoardings, billboards, tote bags. Hoardings, billboards, tote
bags.
Local Newspaper National (company),
local( franchise) newspaper
NONE Celebrity brand endorsements
Customers International tourist, and all
categories of people
Focuses on elites, and youth
Customer relation Personally knowing the taste and
preference.
CRM Systems, yearly coupons,
discount cards etc.
Seasonal
promotions
Discounts and offers are
uncertain, stock clearance
Seasonal and yearly discounts
and promotion offers by
company directly.
The marketing strategy used by both the garment stores differs according to the company
policy; pricing policies etc. the location is the major criteria for advertising their
products. The marketing plans for the branded garments are classified into 2 levels-
1st level- Company’s central marketing strategy.
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The manufacturing company at the centre markets and promotes the brand through
celebrity endorsements, advertisements leading Television channels. As this serves, the
micro level as well as the macro level buyers.
2nd level- Promoting brand at the ground /franchise level/bottom level
The local garment store needs to promote their product at the bottom level. The buyers
are heterogeneous as local garments stores serves to all type of customers from high to
low income population.
The discounts and seasonal promotions are uncertain in local garments stores as there is
good bargaining power by the customers. The prices are fixed by the owner of the store
which has no interference from any source company. Thus enjoying direct profit on the
price fixed. In the branded garments stores, the prices are fixed by the source companies
and the store receives commission from 2% to 10% on the total sales.
The branded garment stores use CRM system to study the purchase behavior of its
customers in detail and grow relation with their customers. This allows the source
manufacturing company to access the customer data and study the demand for their
product in that particular area.
The local garments stores keep a track on its customer preference through personal
approach on their choice and keeping a variety according to the choice of their customers.
The market strategy followed is only through word of mouth and customer preference.
The brand awareness is also created by e-marketing , through internet as most of the
youth and the working class population are accessing the internet and does buy branded
products online if they are not available in the nearby stores, where such facility is not
available by local garment stores.
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LOCATION
The Demographics and buying patterns of residents of an area can be used to compare
various possible sites for opening new stores. In Goa, the branded stores are recently
establishing in the market. So, the location matters for creating brand awareness at the
initial stage of the business. Most of the stores are located at the central market area,
markets area dominated by the garment sector, shopping stores, departmental stores etc.
The local stores are scattered at every corner of the market, thus location also advertises
for the product. In Panjim and Margao, the branded garment stores are located in a series
of branded stores in the market area. This creates a healthy competition among the brands
itself.
Location is a very significant factor for the sales as new customers drop-in while they
move around the market. Window shopping is also an effective way of advertising. So,
while establishing a new store, “Location” is the first and most important factor
considered.
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COMPETITION FACED BETWEEN BRANDED
GARMENT STORES AND LOCAL GARMENT
STORE
As the brand awareness and loyalty toward a brand increases, thereby increase in
competition among the brands and the local garment stores. Both the stores are located in
the same market, facing equal competition. The branded garment stores face competition
from the other brands located in the same market than the local garments stores as the
customer category are different for each stores for e.g. In Panjim area, the branded
garments are located in the same locality where most of the brands are available in few
meters of distance, thus creating competition among the brands than the local garment
store. But both the markets are separate and facing competition from the same category
of garment store.
COMPETITION
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According to our study, the local garments stores compete with the branded garments on
the basis price, quality and the promotional offers. As both have their own pricing
method which are affects the demand for the product. E.g. If the branded jeans price
increases with a given superior quality, where as a local jeans of the same quality is
offers at discounted price. So, the customer will substitute for the local jeans for the
branded jeans. Thereby, increasing the competition among a local product and a branded
product.
On the other hand, a branded jeans is offered at the same price and quality but other
brand offers its jeans of the same quality at a lower price on a promotional offers, thus
creating competition among the brands. The customer would prefer to buy jeans of same
quality at a lower price.
Therefore, competition is among the brands on promotions, marketing strategies and
customer preference.
According to our survey.
SAMPLE SIZE = 7 STORES
Competition
Price quality promotion offer
BRAND 6 5 6
LOCAL 5 3 5
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price quality promotion offercompetition
0
1
2
3
4
5
6
7
BRANDLOCAL
The competition is among the branded and the local garment is on the quality. The
branded garments offer better quality than the local garment stores. The price factor and
the promotional offers do not have any differences among the brands.
The brand tag creates a symbol of status among the consumers. Thus, the competition is
among the brands itself for their brand value than other factors.
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CONSUMER PERCEPTION
Indian consumer markets are changing fast, with rapid growth in disposable incomes, the
development of modern urban lifestyles. Indian consumers are becoming increasingly
sophisticated and knowledgeable about products; media channels that allow companies to
communicate with consumers are growing in diversity and reach.
Foreign brands remain very powerful in India, especially in clothing, but increasingly
brands have to be associated with value.
A customer always buys a product or service with a lot of expectations which he has
derived from the promotional inputs of the company or other sources including word of-
mouth. So a customer would be satisfied when Performance is equal to Expectation while
would not be satisfied when Performance does not match with Expectations. Now this
expectation is what has been derived from perception.
Perception is not good or bad, right or wrong, it is just the way someone judges an
experience based on their value system of what they believe should happen. Since people
are unique, each of their perceptions is unique.
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CONSUMERS PERCEPTION ON BRANDED
OR LOCAL GARMENTS IN GOA.
With the introduction of branded and local garments in Goa the consumers are now aware
of the garment available, the price, quality and the preference. According to our study
sample about 60% of the consumers are brand conscious but may not buy branded
garments only. There are many brands available in Goa and the customers have a wide
choice to choose their brand according to their choice.
A number of factor have been identified which affect the perception of customers in
respect of brands and consequently their evaluation.
FACTORS AFFECTING CONSUMER ATTITUTE
STATUS 32.12
QUALITY 26.28
DURABILITY 10.22
COMFORT 14.60
PRICE 7.30
FASHION 9.49
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STATUS 32%
QUALITY26%
DURABILITY10%
COMFORT15%
PRICE7%
FASHION9%
FACTORS AFFECTING CONSUMER ATTITUTE
Customer attitude towards brands depends on the consumer's perception of the overall
quality of the brand and the sense of status. Price factor influences the brand image
Which consumers attach to brands a high price is assumed to be a product of high quality.
Branded garments are fashionable; it gives comfort and a perfect fitting. The product
being of a good quality, are more durable and long lasting. The consumer prefers
durability which last for a longer period therefore consumer prefer to buy branded
garments of a better quality and at a reasonable price.
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SAMPLE ANALYSIS OF THE STUDY
According to the survey conducted the following is the analysis.
Demographic Classification -Sample Age Groups
Age in years No. of people
below 20 4
20-30 46
30-40 3
40-50 3
50 and above 2
below 20 20-30 30-40 40-50 50 and above
4
46
3 3 2
SAMPLE
no. of people
In the survey conducted the sample size was taken randomly and a conscious effort is
made to cover each and every type of category of people. As seen in the observations,
most of the branded consumers fall in the age group of 20-30 which shows that most of
the branded garment industry targets “the youth”.
Monthly income
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monthly income
10-50k 50-100k 100k- above
43 8 5
77%
14%
9%
Monthly income
monthly income 10-50kmonthly income 50-100kmonthly income 100k- abv
From the sample taken, the branded garments buyers age group i.e. 20 to 30 years have a
monthly income ranging from Rs. 10,000/- to Rs. 50,000/- which constitutes of Students
and servicemen.
Occupation
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Occupation
Student 77
Business 14
Service 9
77%
14%
9%
occupation
Group of people StudentBusiness Service
Consumer purchase frequency
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consumer purchase frequency
Monthly 27.59
Quarterly 34.48
Random 37.93
frequency of shopping
Monthly Quarterly Random
Series1 NaN 27.59 34.48 37.93
2.5
7.5
12.5
17.5
22.5
27.5
32.5
37.5
Perc
en
tag
e o
f sh
op
pin
g f
req
uen
cy
Majority of the consumer prefer to shop randomly as clothing purchased for a longer
duration and people are spend more during seasonal discounts and festival which comes
after a longer time interval and consumer buy branded for casual which are bought every
quarterly. Shopping is the most preferred time pass for the consumers.
Ambience of store does not matter in consumer buying preference directly but it helps in
impulse buying and increasing foot falls.
CONSUMER CHOICE FOR GARMENTS
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CONSUMER CHOICE FOR GARMENTS
BRAND LOCAL
27 31
From the diagram it shows of the sample taken people prefer both branded as well as
local garments. The fashion trends, price, durability etc. are considered during purchasing
clothes. According to the Consumers opinion branded garments charge higher price than
the standard price for the quality given.
Overall preference for one brand over another is the shopping experience for a particular
brand. Celebrity Endorsement is not much considered while choosing one brand over
another. People need “value for money”, which means the product should be of best
quality, latest design and the price should be affordable.
Branded Garments Owned
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47%
53%
CONSUMER CHOICE FOR GARMENTS BRANDCONSUMER CHOICE FOR GARMENTS LO-CAL
Branded Garments Owned
0-25% 24.14
25-50% 41.38
50-abv 34.48
0-25%24%
25-50%41%
50-abv34%
Branded garments owned
This chart shows 41% of the population own branded garments between 25 to 50% of the
total clothes which shows people still depend on local garments for more than 50 % of
their clothing.
CONCLUSION
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In Goa, the branded garments are in the growth phase. Consumers have started
identifying and preferring branded products due to growth in branded clothing sector.
Another observation is that, consumers are quality and price conscious rather than brand
conscious which means there are very few brand loyal customers. Thus proper category
management and catchment can improve branding and brand loyalty in Goa.
As per the survey conducted, we have the following results:
1. People gave an overall perception that they prefer to buy value for money
garments i.e. the local garments. But slowly the consumer perception is diverting
towards the branded garment industry due to changing lifestyle and attitudes of
the people.
Local garments have always been a substitute choice of the Consumers, if chosen
wisely they have good quality as well as value for money. But there is a wide
choice in local garments as compared to branded garments in Goa.
2. Local and branded garment stores do not have direct competition between them
and they are two different level markets with equal demand on their independent
levels.
On the contrary, Competition is between the Local and Branded Stores
themselves. They face competition on different factors like Price, Offers, etc.
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3. There is a demand in both the markets, according to the preference of the
consumers.
Therefore, we conclude that the branded stores are increasingly growing in the cities.
Presently, The youth in the urban as well as the other area surrounding are strongly
becoming brand conscious and brand loyal customers and will be pure buyers of branded
products in the near future.
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