INDIAN SHIRTS MARKET
Answer the following questions straightway on the basis of the facts stated in the casestudy ‘ABC Textiles’.C 1 What are the
key success factors (KSF)
for being effective in the premium andmid segments of Indian readymade shirt market?
Should ABC Textiles enter the
premium segment or the mid-price segment
of the men’s branded shirts market?
ABC Textiles, part of an Ahmedabad based Rs.600 crore group, is a major player in theIndian textile industry. The company has two main business divisions: polyester andfabrics. It manufactures PFY, cotton fabric and denim fabric. It supplies fabric to brandslike Marks & Spencer, Levi’s, Gap, Haggers, Louise Philippe, and Van Heusen, besidesIndian brands like Colorplus, Allen Solly, Blackberry, Pepe, Zodiac and Park Avenue.After establishing in the global cotton fabric market, the company started producingbranded fabric for the domestic market. The first fabric basket – Euro Soft Collection –has four different products in 12 shades. The company has three design studios inManchester, New York and Ahmedabad. The Euro Soft Collection, a 100 percent cottonproduct from the company’s Manchester studio, is wrinkle resistant and requires onlyrinse wash.One of the group companies is ranked in the top five dye houses in the world. It isaccredited with the ISO 9001 certificate. The product range includes Denim, yarn-dyedshirting, piece dyed shirting etc. It also has Marks & Spencer accredited laboratory anddesign studio for testing purposes.The group is currently in the process of setting up a garment washing plant atAhmedabad at a cost of Rs.5.25 crore. The plant is a joint venture with ALT group of Germany, the largest multinational garment washing company in the world. The plant willoffer garment finishing including washing, dyeing, sandblasting, coating and wrinkle freefacilities. The company is also planning to come up with another washing plant inBangalore in the next one year. After this, the company wants to set up a third plant inthe north but has not finalized the location as yet.The company now intends to enter the readymade garments business. This is part of thecompany’s plan in moving up the value chain that would enable it to utilise its excellentbrand equity and a fairly strong distribution network built over the years. The companyhas already 85 showrooms and plans to increase its number over the next few years.The company has decided first to enter the men’s branded shirt market and later to other readymade garments.Mr. Nitin Parikh, Managing Director of the company, had been mulling over this entry inmen’s branded shirt market for the past one year
. He had studied thehistory of the branded shirt market in India and followed closely the strategies of themajor players in this market. He is aware that this market is growing at a healthy rate of