Consumer Perceptions Towards Different Retail Formats in India.docx

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  Consumer Perceptions Towards Different Retail Formats in India Abstract: The study attempts to identify perceptions of consumers towards existing retail formats in India. To havein-depth study of consumer perceptions, the basis on which consumers have been segmented keeping inview the products to be sold need to be understood. Customers of today carry out extensive research ingathering maximum information about product to be purchased, occasion for which the purchase is to bemade as well as from where the purchase is to be made. Their evaluative criteria include price, brandreputation, distribution, promotion, personal selling. The factors causing planned vs unplannedpurchasing behaviour and consumer decision process model need to be understood thoroughly. Thecustomers remain in dilemma about outlet choice vs brand choice.Retail is an emerging sector in India. Marketers are leaving no stone unturned to influence the customersby offering them in various ways, at various locations, in various forms resulting in emergence of variousretail formats throughout the country. Customers are highly influenced by image of the retail outlet, its attributes, product range, variety, services, employee’s behaviour, décor, music and marketing strategies. For this, we need to understand the process of outlet selection, consumer choice and shoppingbehaviour, the shopping process, shopper types and shopping strategies, choice decisions duringshopping process, attempts made by marketers to close the gap between expectation and performanceand so on.The retailers should put in efforts focusing on attracting the customers towards the store outlets oncontinual basis by focusing on their distinct features, thus, adding to the retail formats, followed bypersuasion of paying a visit to the store causing a positive impact on the prospects by their effectiveformats, convincing them to make first purchase, in turn, followed by repeat patronage.Customers of today are not focusing only on the purchase, however, less it is; they are equally concernedwith external as well as internal environment of the retail format. Their pre-purchase experience is highlyinfluenced by family members, friends and channels of communication in comparison to competitiveofferings. Moreover, needs, perceptions and experiences of customers vary to a great extent which amarker needs to identify and thus make offerings accordingly. Western wear taking Indian apparel market by storm A slight slowdown in economic growth and a depreciating rupee value had minimal effect ongrowth in either the value or volume of apparel sales throughout the 2006-2011 review period.The influence of Western wear infiltrating the Indian culture remained one of the biggest drivingfactors boosting growth in volume sales. More people are travelling abroad much morefrequently and becoming exposed to Western fashion. The increasing disposable income acrosskey cities, comfort fitting and rich appeal are major factors that are driving sales of branded apparel. What’s more, a growing number of people working in the middle - and senior-levelmanagement are buying new varieties of Western clothing, spurring this industry to new heights.  Plentiful discounting, seasonal offerings draw consumers Cotton prices saw a drastic decrease in 2011 and this triggered manufacturers and retailers tooffer steep discounts to clear their stock. The festival discounts and seasonal promotions becamea key trend to attract consumers, where retailers capitalised effectively on the trend that in Indiafestivals are particularly special occasions for which consumers aspire to purchase new clothing.This festive discount offering has made huge business revenues for manufacturers and retailersduring such occasions in the form of, for example, year- end sales, “Dasara” or “Diwali” super dhamaka (huge savings) offers, as well as Christmas and New Year’s sales. Foreigners making bold moves, but domestic players also strengthening Global brands are making their mark and increasing their presence across tier 1 and tier 2 cities,whilst at the same time, regional local brands are also upping their competitive presence. Zaraincreased its number of outlets to six stores in 2011 and is planning to open another four stores in2012. Other players such as Mango, Arrow and Diesel are also following the same trend. Severalglobal players including Massimmo Dutti, GAP, Banana Republic, and Old Navy may make afurther push in 2012 now that the central government has given the nod to 100% FDI in single-brand retail. Joint ventures including Arvind for IZod and Page Industries, national owner of Speedo, will also increase the presence of global brands in India. Certain local players have alsostrengthened their presence, investing in aggressive expansion in opening their own exclusivebrand outlets (EBOs). Players such as Black Bird, F Square, Ramraj and Mustard in southernIndia proved tough competition to the national and international brands, these small domesticbrands are growing by over 25% annually. These brands are also expanding their base to otherparts of India to become national players.  Apparel specialist retailers still represent key retail channel  Approximately 95% of value sales of apparel went through clothing and footwear specialistretailers in 2011, with exclusive brand outlets and specialist clothing stores the main channel forconsumers to shop for apparel. However, department stores and leisure and personal goodsretailers witnessed strong growth as new shopping malls opened up and offered a wide range of different brands under one roof. Bright outlook for apparel industry over the forecast period  Value sales of apparel are projected to be very strong over the 2011-2016 forecast period, drivenby a growing shift in preference towards Western clothing and branded products, particularlyacross tier I cities. Companies are also expected to branch out to tier 2 and tier 3 cities outletsacross India, which represent as yet an untapped market for branded apparel. The increasingdisposable income in these cities, comfort fitting and rich appeal are the major factors that areexpected to drive the apparel market towards long-term growth. Sample Apparel Market Research Report Sample Apparel Data   Delivery: Files are delivered directly into your account within a few minutes of purchase. Overview  Discover the latest market trends and uncover sources of future market growth for the Apparelindustry in India with research from Euromonitor's team of in-country analysts.Find hidden opportunities in the most current research data available, understand competitivethreats with our detailed market analysis, and plan your corporate strategy with our expertqualitative analysis and growth projections.If you're in the Apparel industry in India, our research will save you time and money whileempowering you to make informed, profitable decisions. The Apparel in India market research report includes:      Analysis of key supply-side and demand trends    Detailed segmentation of international and local products    Historic volumes and values, company and brand market shares    Five year forecasts of market trends and market growth    Robust and transparent market research methodology, conducted in-country Our market research reports answer questions such as:    What is the market size of Apparel in India?    What are the major brands in India?    How dynamic is the growth of clothing and footwear internet sales?    What is the performance of women’s clothing vs men’s clothing?    What % of clothing and footwear sales goes through grocery retailers? Why buy this report?      Gain competitive intelligence about market leaders    Track key industry trends, opportunities and threats    Inform your marketing, brand, strategy and market development, sales and supply functions http://www.euromonitor.com/apparel-in-india/report   India hosts global fashion brands India being a rapidly growing luxury market in the world has emerged as a key destination for the high endinternational fashion brands.Read on to explore the current developments in the luxury fashion segment in India. As per a report, the Indian Fashion Industry has the potential to increase from its net worth of Rs 200 crore to Rs1,000 crore in the next five to ten years. The total market size of fashion sector in India is approximately Rs 20,000crore. Further, the size of the branded fashion is nearly one fourth of the total size out of which designerwear coversnearly about 0.2 percent of the branded apparel market. Today, India is an important spot on every International fashion brand‘s international business map. Indian consumers are aware of international trends and have lots of  exposure to western fashion sensibilities. There are several well known global luxury fashion brands that have made in road in the country’s market before with many more brands eyeing this booming market. These foreign brands arereadily leveraging the potential of the Indian market. The global fashion majors have opted different modes of entry into India including; Joint Ventures, Licensing, Distribution and Franchise route. Thriving market  Major push to the Indian fashion has come from factors like increasing number of deep pocketed consumers andretail spaces such as malls and boutiques, fashion consciousness among the age group of below 45. The fashionphenomenon has gripped youth, men and women alike not only in Metros but also in Tier II and III cities. In spite of the presence of many local brands, foreign brands have always caught the fancy of consumers here. Brands fashioning way to India  Several apparel brands like Tommy Hilfiger, Marks Spencer, Peter England, Ralph Lauren Polo have marked fashionretailing in India offering world class fashion and shopping experience. Their designer ensemble collections areexpensive and mainly target the affluent consumers. New entrants The fashion majors such as Icnonix, LVMH, Roberto Cavelli and Elle are among the new entrants in the Indianfashion scene.  Iconix Brand  Group from the US has entered into an equal joint venture (JV) arrangement with Reliance Brands.Reliance will launch the Iconix's 20 fashion and lifestyle brands in India. The JV by the name of Imaginative BrandDeveloper India Pvt. Ltd will own large brand portfolio including; Waverly, Mossimo, Ed Hardy, Peanuts, Cannon,London Fog and Ocean Pacific in the country. It will grant the license of these brands to retailers and interestedparties to establish stores on royalty basis. Soon the other brands are also expected to be rolled out.Reliance Brands is also bringing in  LVMH  ’s brand namely Thomas Pink clothes and accessories for men and women   to India. For this company has entered an exclusive long-term agreement with luxury house Louis Vuitton Moet   Hennessy (LVMH). The first store will open by the year- end in Mumbai with more stores to follow in the top five   metros.  Elle, the France-based couturer has signed a licensing agreement with Arvind Lifestyle Brands (ALB), an Indian   apparel maker. By the terms of the agreement, Arvind Lifestyle will retail brand’s women's fashion wear in India. ALB   plans to open six exclusive Elle outlets in Delhi, Bangalore and Chandigarh along with selling the brand’s products   through shop-in shops.    Roberto Cavalli    has collaborated with Infinite Luxury group via franchising agreement to open the brand’s first store   in India. The Indian boutique will house the women’s and men’s prêt -à-porter collections, as well as accessories,   eyewear, timewear and kidswear. The new store is scheduled to open to the public by the summer 2012 in New Delhi.   Twist in the tale   Indian government’s recent move to liberalise policy for 100 per cent FDI in single brand retail with government   approval has redefined the retail scenario in India. Until recently, for single-brand retailers, 51 per cent FDI was   permitted. The new policy is set to facilitate those retailers including fashion majors who would like to have full   ownership of their India operations.
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