pantaloon case study

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Background Note

The organized retail industry in India did notevolve till the early 1990s. Until then, the industry

was dominated by the un-organized sector. It was

a sellers market, with a limited number of brands,and little choice available to customers.

Lack of trained manpower, tax laws and

government regulations all discouraged thegrowth of organized retailing in India during that

period. Lack of consumer awareness and

restrictions over entry of foreign players into the

sector also contributed to the delay in the growthof organized retailing.

This allowed the un-organized sector to rule the Indian retailing industry. It was during this time that thefoundation of PRIL was laid by Biyani. Biyani was a commerce graduate with a post-graduate diploma in

marketing. After spending five years in managing his family business of trading textile and yarn, he

started with apparel manufacturing in the mid-1980s.

In 1987, he launched Manz Wear Pvt. Ltd. formaking the country's first readymade trousers

with 'Pantaloon' as the brand name. In 1989, the

company launched its first jeans brand, 'Bare.'

On September 20, 1991, Manz Wear Pvt. Ltd.,

went public and on September 25, 1992, it

changed its name to 'Pantaloon Fashions (India)Limited' (PFIL).

In 1993, PFIL launched its first formal shirt brand,

'John Miller,' and began distribution of its brandedgarments through multi- brand retail outlets across

India. It also established a chain of franchised

Pantaloon outlets, called 'Pantaloon Shoppe,' tomarket its readymade trousers.

The first Pantaloon Shoppe was established in 1993 and by 1997, there were 60 such "shoppes" in

various parts of India. Though PFIL's readymade garments offered good quality at competitive prices, itsbusiness suffered mainly because of high distribution costs and low margins which resulted from the

presence of intermediaries like multi-brand retailers and franchisees between the company and its end

customers...

Charging Ahead



In June 2004, Pantaloons Retail India Limited,

(PRIL), a leading retailing group in India, openedits first Central Mall, "Bangalore Central," in the

garden city of Bangalore, the capital of Karnataka.

"Bangalore Central" followed the SelfridgesModel3that aimed at redefining and

revolutionizing the paradigm of lifestyle retailing

in India. The mall was a result of PRIL's desire toset up a shopping centre with world class

ambience, which represents the spirit of modern

affluent society.

With 'shop, eat and celebrate' as its theme and

tagline, "Bangalore Central" was aimed at making

shopping a leisure activity, where customers can

eat, relax and enjoy themselves as well.

This five-floor mall holds 300 brands of products for men, women, youngsters and children, along with

playing host to beauty parlours, food joints and recreation facilities. It sells almost everything from basics

to the extravagant, from apparel to white goods4, from home furnishing to groceries.

It houses a Central Square, dedicated for productlaunches, impromptu events, daring displays,

shows and exhibitions. The mall also has a

separate section providing a variety of services

such as travel, financial, investment, insuranceand entertainment (like ticket booking for concerts

and cinemas).

Besides it also has some innovative features like

centralized billing and Radio Central, India's first

in-house radio station. Analysts were quick to

point that "Bangalore Central" might mark thebeginning of another successful

hypermarket5 chain under the aegis of Kishore

Biyani (Biyani), the founder, CEO and managing

director of PRIL.

Charging Ahead Contd...

He was credited with being the major force behind PRIL's other major hypermarket chain formats like

Pantaloons, Big Bazaars and Food Bazaars. Emphasizing the core value of 'Indianness' since its inception

http://www.icmrindia.org/casestudies/catalogue/Marketing/Pantaloons.htm#bot3














in 1987 and popularising the concept of a hypermarket, PRIL evolved to be a front-runner in the Indian

retail arena by the early 21st century.

Source :http://www.icmrindia.org/casestudies/catalogue/Marketing/Pantaloons-

Marketing.htm

http://www.icmrindia.org/casestudies/catalogue/Marketing/Pantaloons-Marketing.htm





pantaloon case study

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