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PRESENTED BY: ANSHUL GAUTAM ARCHI AGARWAL SANTOSH KUMAR
Table of content
1 . OBJECTIVE OF THE PROJECT 2 . INDIAN ECONOMY 3 . INDIAN RETAIL SCENARIO 4 . INDIAN CONSUMER 5 . INDIAN APPAREL INDUSTRY 6 . BIHAR ECONOMY 7 . ABOUT PATNA 8 . PLAN OF ACTION 9. 10.
1.OBJECTIVE OF THE PROJECT
study the consumer preferences in the women ’ s ethnic wear category analyse the consumer ’ s willingness to buy women ’ s ethnic wear apparel and accessories in Patna . analyse the price ranges , the consumer is looking for in the aforementioned categories .
n n To
2 . Indian Economy : Overview n 2nd largest economy in world in terms of population n 16% of population and 12% of land n 4th largest economy in terms of GDP n Highly diversified from Agriculture to Technology .
natural resources n 3rd largest pool of engg.Indian Economy : Overview n Gradual move from Public sector domination in industries to increasingly liberalised (tariffs to quota-free ) n Restricted to liberalised n Sellers’ market to Buyers’ market n Large pool of human resources. and quality educational institution. .
Indian Economy : Issues n Inadequate employment opportunities n Inequalities in socio-economic status n Poverty n Poor Infrastructure n Fiscal deficit n Large Non Performing Assets (NPA) .
Characteristics of Indian Economy n Predominance of Agriculture n Rapid population growth n Low per capita income n Unemployment n Capital – scarce economy .
financial and industrial enterprises n MRTP & FERA .Economic Reforms in India n Liberalisation of trade and elimination of protective barriers : delicensing and deregulation of trade and commerce n Liberalisation of banking system n Disinvestments of public commercial.
FDI’s and FII’s n Reforms in the Infrastructure sector .Reforms for Growth n Exchange Market reforms n Reforms in the Foreign Investment .TRAI n Tariffs and Trade reforms n .
SWOT : Indian Economy n Strengths Ø Pool of labour Ø High % of cultivable land Ø Diversified nature of economy Ø Huge english speaking population Ø Extensive higher education system Ø High growth rate of economy n .
hence scarcity of resources n .SWOT n Weakness Ø High % of work force in agriculture Ø ¼ th of population below poverty line Ø Poor infrastructure Ø Low productivity Ø Huge population.
SWOT n Weakness Ø Low level of mechanization Ø Bureaucracy Ø Low literacy rates Ø Rural – urban divide n .
SWOT n Opportunities Ø Scope of entry of private firms Ø Investment in R & D Ø Huge domestic market Ø Infrastructure Ø NRI’s .
SWOT n Threats Ø Fiscal deficits Ø Volatility in crude oil prices Ø Import Bills Ø Agriculture heavily dependent on monsoons Ø Population growth rate .
poverty still remains a major concern besides disparity in income . the Indian economy ranks the 4 th largest in the world . However . 430 . The biggest boon to the economy has come in the shape of outsourcing . managing a 9 . The growth rate has averaged around 7 % since 1997 and India was able to keep its economy growing at a healthy rate even during the 2007 .2009 recession . Its English speaking population has been instrumental in making India a n n n . 668 % growth rate in 2010 ( India GDP Growth ).INDIAN ECONOMY n The Indian economy is one of the fastest growing economies and is the 12 th largest in terms of the market exchange rate at $1 . In terms of purchasing power parity . 02 billion ( 2010 India GDP ).
remained the biggest contributor to the national GDP . and was the fourth largest economy by volume . 1 % and the agriculture sector contributed 17 . 6 % of the jobs for the 467 million workforce . 4 %. 8 % to the GDP and employed 20 % of the workforce . The industry sector contributed 24 . The agriculture sector contributed 15 .Indian Economy : Statistics n In 2010 . with a contribution of 58 . The employment scenario was dominated by the services sector . The industry sector contributed 25 . The services sector . n n n n n . 8 % to the GDP and created 17 . 5 % to the GDP . creating 62 . backed by the IT revolution . India's PPP Gross Domestic Product stood at over $4 trillion . 5 % jobs ( India Labor Force ).
3. Indian retail sector comprises of organized retail and unorganized retail sector .05 to Rs109 . organized retail is gradually becoming popular . 000 crore in 2004 . medicine stores . Organized retail in India is expected to grow 25 . More than 90 % of retailing in India fall into the unorganized sector . kirana stores . 000 crore ( $24 . the organized sector is largely concentrated in big cities . subzi mandi .30 % yearly and is expected to increase from Rs35 . Traditionally the retail market in India was largely unorganized . Unorganized retailing consists of small and medium grocery store . however with changing consumer preferences . Indian Retail Scenario The retail scenario is one of the fastest growing industries in India over the last couple of years . paan shops etc .
the retail sector is likely to grow to a value of ` 2 . According to the Department of Industrial Policy and Promotion . 000 crore ( US$45 billion ) and could yield 10 to 15 million retail jobs in the coming five years .Quick facts on Indian Retail sector n Indian Retail sector is the 5 largest global retail destination . The top five companies in retail hold a combined market share of less than 2 %. in 2009 as the most attractive emerging market for investment in the retail sector . The Indian retail market has been ranked by AT Kearney's 8 th annual Global Retail Development Index ( GRDI ). currently this industry employs 8 % of the working population . India retail market is dominated by the unorganized sector . 00 . According to Government of India estimate . Currently the share of retail trade in India's GDP is around 12 %. and was estimated to reach 22 % by 2010 . India continues to be among the most attractive countries for global retailers . n n n n n .
In 20 years they expect the India operations to be larger than the Australia operations. Shoppers Stop has plans to invest Rs 250 crore to open 15 new supermarkets in the coming three years. It has plans to clock US$ 87 million revenue in five years.88 million this fiscal to add up to existing 2. Australia's Retail Food Group is planning to enter the Indian market in 2010.3 million taking its total store count to 120. a division of Landmark Group. the company has recorded a net profit of US$ 1. plans to have more than 50 stores across India by 2012–13. Pantaloon Retail India (PRIL) plans to invest US$ 77. raising its total network to 275 stores. Timex India will open another 52 stores by March 2011 at an investment of US$ 1.2 million. n n n n . 2009. PRIL intends to set up 155 Big Bazaar stores by 2014.4 million sq ft retail space.Future Trends n n Lifestyle International. In the first six months of the current fiscal ending September 30.
INDIAN RETAIL MARKET ORGANISED RETAIL UNORGANISED RETAIL UNORGANISED 5 % ORGANI .
Mar’2008 .ORGANISED RETAIL IN INDIA omic Survey of India and Technopak analysis.
ORGANISED RETAILING AS A % OF TOTAL RETAIL : INCREASING @ 30 .35 % A YEA .
Studied by: McKinsey Global Institute 5th largest consumer economy 2025 INDIA 2009largest consumer economy 12th .
Factors fueling the BOOM in Indian Retail n Age dynamics of the country n Increased number of working women n Declining interest rates n Increased media penetration n Growing disposable income n Urbanization n The brand conscious consumer .
Major players of organized retail sector n n n n n n n n n n Pantaloon Retail : Future Group K Raheja Group Tata Group Landmark Group Reliance Group AV Birla Group .
CUSTOMER IS THE KING !! .
. up from 12th now . Indian Customer Global corporations view India as one of the key markets from where future growth will emerge . The growth in India ’ s consumer market will be primarily driven by a favorable population composition and rising disposable incomes . A recent study by the McKinsey Global Institute ( MGI ) suggests that if India continues to grow at the current pace . average household incomes will triple over the next two decades and it will become the world ’ s 5th .largest consumer economy by 2025 .3.
a middles .FROM PYRAMID TO DIAMOND India ’ s consumer market till now was broadly defined as a pyramid . This pyramid structure of the .class at the center and a huge economically disadvantaged class at the bottom . a very small affluent class with an appetite for luxury and high .end goods and services at the top .
Ernst and Young have classified the Indian consumer into 3 categories on the basis of income bracket and carried out a study . 500 per m . 600 – 41 . e 16 . 600 per: Aspirers month . 600 per month . 90 to 200 thousand / annum i . The categories Seekers : are as follows : Rs 200 to 500 Thousand / annum i . e 7 . 500 – 16 . Deprived : L ess than 90 thousand / ann i . e less than 7 .
million people . 583 Rs 2 Lacks to 10 Lacks 5 year the population 41 % of the populati 94 % in 1985 26 % of the populat to reme rural poverty in 2005 61 % 2 % of the 0 . 7 % of national20 % of national private c private consumption .CLASS 2025 PROJECTION PRESENT 0 million people roughly a % of . 2 % of the t class : population above Rs 10 Lacs apopulation year.
Indian Population Distribution .
Over 8 % of India's population is engaged in retailing . According to ASSOCHAM . the total retail market is expected to grow by 20 % annually and is one of the fastest growing sectors in India. 20% ASSOCHAM.Associated Chambers of Commerce .
4. INDIAN APPAREL MARKET n MARKET n n Menswear n Women’s DEFINITION: wear n Kid’s wear .
Japan.Introduction n n n n n Industry is worth over US$ 4395 billion . Among the countries. Australia and New Zealand are the significant consumers of Indian textiles. High production of wool. . Global trade in this industry is now at US$ 350 billion. India ranks second with 8 percent of the total. cotton and silk over the world has boosted the industry in recent years.
History n The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave' The history of textile is almost as old as that of human civilization. modern textile industry took birth in India in the early nineteenth century The first cotton textile mill of Bombay was established in 1854 during the year 1900 the cotton textile industry was in bad state After independence. the cotton textile industry made rapid strides under the Plans n n n n n n . In India the culture of silk was introduced in 400AD .
SWOT: Indian Apparel Industry n Strengths: n n n n n n Indian Textile Industry is an Independent & Self-Reliant industry. . Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain.
Lack of Technological Development that affect the productivity and other activities in whole value chain. Industry is highly dependent on Cotton. Power and Interest Rates. which restrict to tap other potential market.SWOT Analysis n Weaknesses: n n n n n n n n n n n Indian Textile Industry is highly Fragmented Industry. Lacking to generate Economies of Scale. There is Declining in Mill Segment. Unfavorable labor Laws. Lower Productivity in various segments. Infrastructural Bottlenecks and Efficiency such as. Higher Indirect Taxes. Transaction Time at Ports and transportation Time. . Lack of Trade Membership.
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Growth rate of Domestic Textile Industry is 6-8% per annum. Large, Potential Domestic and International Market. Product development and Diversification to cater global needs. Elimination of Quota Restriction leads to greater Market Development. Market is gradually shifting towards Branded Readymade Garment. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry. Greater Investment and FDI opportunities are available.
n n n n n n n n n
Competition from other developing countries, especially China. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. Elimination of Quota system will lead to fluctuations in Export Demand. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification. Geographical Disadvantages. International labor and Environmental Laws. To balance the demand and supply. To make balance between price and quality.
The shape of the textile industry in India
Industry – 3% of GDP, 27% of Forex earnings, 21% of total employment n Very large unorganised sector – about 76% of total fabrics production n Market is very diverse, does not lend itself to comparative studies in terms of market share etc.
Labour laws n Exports have risen by 10% but at the same time China’s exports have risen by more than 20%. even countries like Pakistan and Bangladesh have done better .The global scenario n n The end of the MFA arrangement Competitiveness of Indian industry • Low level of modernization • Fragmented nature – low capacities • Infrastructure.
9 9.30% 9.5 10.80% 1179.20% 1078.60% 982.7 INR BILLION % 2005 2006 2007 2008 2009 2010 806 12.INDIAN APPAREL RETAIL INDUSTRY VALUE FORCAST: $ BILLION: 20052010 YEAR GROWTH $ BILLION 18.3 24.3 10.40% 29.2 22.4 9.10% 891.2 1288.4 26.3 20.8% CAGR 2005-2010: .3 9.
APPAREL RETAIL FORMAT .
INDIAN RETAIL PIE.indianret ailforum . 2006 Apparel : 7 % Source: w ww.com .
000 billion according to the Indian Retail Report 2007. ambience and good quality all under one roof.PENETRATION OF ORGaNISED RETAIL ACROSS CATEORIES: The Indian consumer of today who wants the right price. The Indian retail industry is valued at $270 billion. . with organised retail cornering 4. n Source: Indian retail report.20. The lifestyle and mindsetchange of the Indian customer has led to a spur in the retail industry with the total private consumption in 2006 clocking Rs.5 %. The organized pie is expected to see a growth at a CAGR of 37 % (India Retail Report 2007).
BIHAR ECONOMY .
n Many important rivers pass through Bihar. . northeast corner of India. n In the southern foothills of the Himalaya Mountain Range.Geography n Upper Bihar is t he t an st at e wit hin t he red shape. right before it gets squeezed between Bhutan and Bangladesh.
Indo-Gangetic Plain n n One of the most notable features of Bihar is its location in the Indo-Gangetic Plain. . This plain is very fertile. making it ideal for an agrarian society.
n The total area of land is 99.804.185.037 n It is a majority male population 54.347(52.2%). km n This is divided into two main regions: the North Ganga Plain and the South Ganga Plain .Population and Land According to census of 2011 n Bihar has a population of 103.163 sq.
9 per 1000 n Population grew 25.50 n Density: 1102 people per sq.696—this is $538.9 per 1000 n Death rate: 7.Population and Other Statistics n Per capita income is Rs 21. mile n Birth rate: 30.07% from 20012011 .
12000 per month. 4000 per month in Bihar vs. n Per capita GDP: Rs.Economy Bihar lags behind in the overall progress of India. irrigation. n Nearly 10% more people living below the poverty line than the average for India Reasons for slow development n Inadequate investment in infrastructure. national average of Rs. and technology n Caste dominated politics .
Economy: Agriculture 2 crop seasons: Kharif & Rabi n Major crops: n – – – – – n Rice Sugar Tobacco Wheat Jute Other minor crops: – Chilli – Mango – Oil Seeds .
Economy: Agriculture .
Economy: Mineral Production n Very little due to the division of southern Bihar into the separate state of Jharkhand n Most mineral production takes place in Jharkhand n Some Minerals Produced – Coal – Bauxite – Dolomite n .
Economy: Mineral Production .
which dates back to the 5th century n Vikramshila.Education: History n Historically Bihar has been a major center of learning n Originated from the time of Buddha or even earlier n Home of one of the earliest universities. Nalanda. which is another university is located here as well .
education was lost n Believed that marauding armies of the invaders destroyed the centers of learning n .Education: History n During medieval period.
Education n During 1970s and 1980s government took control over private schools n Because government was illequipped the standards of the schools began to fall n However. and these schools still provided quality education . government did not take over schools ran by Christian missionaries.
Education n n n Central government runs a number of Kendriya Vidyalayas (Central Schools) Jawahar Navodaya Schools were made by the late Prime Minister Rajiv Gandhi for rural children Have been successful in providing quality education to the weaker sections of the .
and has led to a “flooding” of the student population to other states in order to obtain a better education Only 51% of the children enrolled in primary school actually attend. 59% of those who do attend do not have .Education n n n Modern Bihar has an inadequate educational infrastructure which places a huge impact between supply and demand The growing population has made the situation even worse.
39% Female literacy rate of 53.33% Only 21% of all primary school teachers have completed the matriculation Because of the law of affirmative action that reserves jobs and education for people of backward classes. students from Bihar are performing well in respect to better economically well off states in India n n n n n .Education According to Census of 2011 Has an overall literacy of 63.82% Male literacy rate of 73.
Culture of Bihar: Festivals n Chhath – Worship of the Sun God n Teej – Worship of Goddess Parvati n n .
Bihar: Music n Folksongs dealing with everyday life – sohar performed during childbirth – sumangali associated with wedding – ropnigeet performed during the .
About PATNA .
441 .Potential of Patna Ø Patna is a potential city with growing market. Ø Ø The city is also a major educational and medical centre. . Ø Ø Patna highest per capita is Rs 31. Ø Ø Patna is the 21th fastest growing urban areas in the world and 5TH fastest growing city in India. Ø Ø The Economy of Patna is based on local service industry.
Ø Companies growing started upper to and recognize middle Patna's class's purchasing power. planning to set up .Economic situation Ø Patna has long been a major agricultural center of trade. Ø City will have malls that are coming up in different parts of the capital. Ø Large-format retailers such as Big Bazaar and the Future Group.
PLAN OF ACTION SOURCES OF INFORMATION : a ) RETAILERS b ) WHOLESALERS c ) CONSUMERS .
MODES OF INFORMATION COLLECTION n INTERVIEWS n QUESTIONNAIRS .
TASTES AND PREFERRENCES 4 . PURCHASING POWER OF CUSTOMERS 2 . SALES FIGURES / RENTALS / OVERHEADS 5 . CUSTOMER RETURNS / COMMON COMPLAINTS . SERVICES 7 . CATCHMENT AREA 3 .QUESTIONNAIRES: RETAILER PARAMETERS : 1 . MERCHANDISE MIX / SEASONALITY FACTORS / OCCASIONS & FESTIVALS 6 .
WHOLESALER: PARAMETERS : 1 . PURCHASING POWER OF CUSTOMERS 3 . CUSTOMER RETURNS / COMMON COMPLAINTS 8 . MERCHANDISE MIX / SEASONALITY FACTORS / OCCASIONS & FESTIVALS 7 . RATE THE DIFFERENT CPMBINATIONS 10. AREAWISE MARKET POTENTIAL 2 . IMPORTANT STORES 9 . . SALES FIGURES / RENTALS / OVERHEADS 6 . TASTES AND PREFERRENCES 5 . 11. CATCHMENT AREA 4 .
TASTE AND PREFERRENCES 2 . EASE OF ACCESS 5. VARIETY / OPTIONS AVAILABLE 4 .CONSUMER: PRAMETERS : 1 . COMPLAINTS 3 . .
EXHIBITION ROAD 4 . PATNA MARKET 6 .MARKET SCAN: important markets of patna 1 . ASHOK RAJPATH RAZA BAZAAR . HATHWA MARKET 5 . 8 . FRASER ROAD 3 . KHAITAN MARKET 7. BORING ROAD 2 . 7.
CATCHMENT AREA 6 . STORE AREA 2 . SERVICES PROVIDED 7 . TYPE OF MERCHANDISE 4 . AMBIENCE 8 . CATEGORY OF MERCHANDISE 3 . PRICE RANGES 5 . ACCESSABILITY .EVALUATION OF THE RETAILERS PARAMETERS : 1 .
GOODFRIDAY 9 . GANESH CHATURTHI .UL . HOLI 3 . ID . SARASWATI PUJA 1 1 . n . ETC . CHHAT 2 . DUSHARA 6 .FITAR 1 0 . MOHARAM 8 . KRISHNA JANMASTHMI 1 2 . DEEPAWALI 4 . DURGA PUJA 5 .THE NAMES OF OCCASIONS ARE : 1 . EID 7 .
138 Block – C . KARGHA Maurya Complex Shop No .Scan of major stores: 1.
MANISH 350 KUMAR TIE UP WITH PANTALOONS .PRICE RANGE: WOMEN : LONG KURTA : SHORT KURTA : DUPATTA : PATIYALA SALWAR : CHURIDAAR : STORE AREA : 350 SQ .450 AVERAGE FOOTFALL : 30 .40 450 PROPRIETOR : MR .525 350 .699 399 . FT 649 .
FOOTFALL : 30 .35 PROPRIETOR : Mr . RADHA GARMENTS: STORE AREA : 2200 Sq . OF OUTLETS : 1 LOCATION : OPPOSITE MAURYA LOK . MURLIDHAR KANODIA NO . FEET AVG .2.
300 . 10000 .25000 ARTIFICIAL JEWELLERY : Rs . 1000 . 300 .8000 SARIS : Rs .4000 PARTY WEAR SUITS : Rs . 500 .20000 .PRICE RANGE : WOMEN KURTI : Rs .6000 LEHENGA : Rs .
35 PROPRIETOR : Ms . NEAR DAK BUNGLAW CHAWK . FEET AVG . FOOTFALL : 30 . NINNI’S STORE AREA : 1200 Sq . NINNI ARORA NO .3. OF OUTLETS : 1 LOCATION : MAURYA LOK .
100-2000 FOOTWEAR: Rs.PRICE RANGE: LEHENGA: Rs.3000-10000 HANDBAGS: Rs.4000-80000 PARTY WEAR SUITS: Rs.350-2000 ARTIFICIAL JEWELLERY: Rs.800-4000 .1500-8000 SARIS: Rs.
20 DAYS . FOOTFALL : 28 . FABINDIA STORE AREA : 3500 Sq . OF OUTLETS : 1 LOCATION : PATLIPUTRA STOCK REPLENISHMENT : 15 .4.35 NO . FEET AVG .
7000 Rs .PRICE RANGE : WOMEN ’ S WEAR INDIAN ACCESSORIES : 160 .2500 SARI : COTTON & SILK : .2500 795 . 400 .
000 .5.40 . SHOBHA AND SAHELI n n STORE AREA : 1200 Sq Ft . 000 n PARTY SARIS : Rs 3000 . 000 LEHENGA : Rs 9 .60 . 000 . 500 10 . LOCATION : BORING CANAL ROAD n n n PRDUCTS & PRICE RANGE : BRIDAL : SARIS : Rs 600 . 000 n REGULAR SARIS : Rs 300 .12000 SUITS : Rs 2 .3 .
3000 .40000 BRIDAL LEHENGA : 10 .10 .6. 000 SUITS : 1000 . 000 ACCESSORIES : HANDBAGS : 100 . 000 – 40 . MOTABHAI LOCATION : HATWA MARKET STORE AREA : PRICE RANGE : BRIDAL SARIS : 2000 .
n LOCATION : TAKUR BARO ROAD AND PRICE RANGE : n SUITS : Rs . 250 .7.8000 .1200 n SARIS : Rs . PRIYA CLUB STORE n STORE n n PRODUCT AREA : 220 sq . ft . 150 .
1.700 BRACELETS : 50 .3000 NECK PIECES : 250 .200 SETS : 250 . n LOCATION : THAKUR BARI ROAD n PRODUCTS n n n n AND PRICE RANGES : BANGLES : 100 . ROOP SHRINGAR n STORE AREA : 160 SQ FT .2000 n .
1500 AND PRICE RANGES : n . n LOCATION : THAKUR BARI ROAD n PRODUCTS n n n n BANGLES : 100 .200 SETS : 250 . SONALI SHRINGAR n STORE AREA : 100 SQ FT .2000 NECK PIECES : 250 .2.600 BRACELETS : 50 .
INFERRENCES FROM A STUDY DONE ON THE BOUTIQUES IN PATNA: .
FACTORS AFFECTING PURCHASE Consumers want design and variety in products .
CONSUMERS PREFER Consumer prefer more of fashionable products than traditional due to the change in their taste. .
CONSUMER PURCHASING RATE Consumer prefer shopping once a month from boutiques. .
DO PEOPLE PURCHASE FROM BOUTIQUE?
Still almost half the population is not comfortable in such buys.
BOUTIQUES OF PATNA
Awareness of NINNI being the highest among consumers
SUGGESTIONS AND CONCLUSION
Existing players in this segment are doing good and are satisfied with their sales and customer response : qBecause of increase in per capita income as well as personal disposable income . q qChange in preference of the consumer . Now also preferring customized clothes apart from labels . q
Conclusion There is a good scope for any new premium boutique to start in Patna . qDeveloping and growing city in terms of income . Boring road and Patliputra . There is a huge scope for expansion in places like Frazer road . qPeople are adopting the changes .
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