CRM in Apparel Retail Sector

SUBMITTED BY: Enrollment No. : A0102107042 MBA (E&L) Class of 2009


Under the guidance of Professor , HOD Economics Department.

Mr. Jitender Kumar

In Partial Fulfillment of Award of Master’s Degree In Business Administration






I, KAPIL BHATI student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Dissertation on “CRM IN APPAREL RETAIL SECTOR” as part of the course requirement. I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: Place: Noida

Name: Kapil Bhati Enroll No: A0102107042 Program: MBA (E&L)


I, ………………………………..hereby certify that Kapil Bhati, student of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed dissertation on “CRM in Apparel Retail Sector ”, under my guidance.

Mr. Jitender Kumar Professor , HOD Economics Deptt.


“No Project is ever a work of only one person and this one is no exception”

This project is the product of many hands, and countless hours from many people. My thanks go out to all those who helped, whether through their comments, feedback or suggestions. It gives me immense pleasure to express my deep sense of gratitude to Ms. Varsha Khattri (Faculty guide) for her valuable guidance, constant supervision and above all her continuous encouragement & support during the tenure of this project. I am deeply indebted to all the Store Managers of different Lifestyle Stores, for providing me with best information and shared their vast knowledge and technical expertise for completing this project. Sincere thanks to all the people who have worked under this project. Lastly, no words could adequately convey my heartfelt thanks to the family members and friends who indirectly co-operated with us.

Kapil Bhati A0102107042 MBA (E&L)

3.2 Evolution of Retail Trent Limited 2.1 Introduction 1. Chapter Name Page No. 1 Introduction Lifestyle International (Pvt) Limited .3.3 Retailing Formats in India 1.1 Growth in organized retail 1.1 Overview 2.2.2 Drivers for retail transformation in India 1.3 Some Facts about Indian Apparel Industry 2.CONTENTS Declaration Certificate from Faculty guide Certificate from Industry Guide Acknowledgement S.3 Shopper’s Stop Limited 2.1 Pantaloon Retail (India) Limited 2.1.5 Marketing segmentation of retail industry 2. Industry Insight – Indian Retail Industry 1.No.1 New Retail Entrepreneurs 2.3.2 Changing Consumer Behavior 2.3 From Franchise to Company Owned 2.2 Globus 2.2 Characteristics of Apparel retail sector 2.3 Challenges for organized retail 1.2.4 Some Facts 1.3 Major Players 2.3. Apparel Retail in India 2.

3.6 comparison between different players 2.5 Future Outlook 2.6 Retail Touch points 3.2.3 Customer Retention Profile 3.2 Dimensions of CRM 3.1 Introduction 3.4 Managerial Challenges 2. Customer Relationship Management 3.4 CRM & IT 2 3 4 5 6 References Annexure Literature Review Problem Statement Methodology Results & Discussions Suggestions & Conclusion .

to McKinsey. with changing demographics driving growth of organized retailing and driving growth in consumption. apparel and consumer durables are the top three categories of consumer spend and form 87% of the total retail sales in India.6 million jobs in the next five years acc. With declining interest rates an average Indian is not averse to taking loans. With changing demographic and economic profile of the Indian population. The Indian Retail Sector The Indian Retail Sector is at an inflexion point. the modern retail business will create about 1. it is also believed that increase in consumer spending would be driven by nuclearisation of families. hypermarkets.85 trillion) business by 2015. increasing population of working women and new job opportunities in emerging service sectors such as IT Enabled Services. the country’s overall retail sector will become a $450 billion (Rs20. Not only are the demographic factors becoming more favorable but also the growing media penetration is leading to a convergence of aspirations of various classes of consumers. . Along the way. At present India’s modern retail business accounts for only about 5% of the country’s annual retail business. Modern retailers will not only create employment opportunities but also would help raise India’s overall economic productivity and could also result in lowering prices of goods. it is believed that India is expected to experience accelerated consumption over the next few years. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. supermarkets and specialty stores. Food and beverages. With an expanding economy. Further.Industry Insight – Indian Retail Industry: The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores.

The Indian retail industry is evolving in line with changing customer aspirations across product groups. Size drives economies on procurement. retailing in India – though large in terms of size – is highly fragmented and unorganized. Availability of quality retail space has been one of the main constraints for development of organized formats in India.Source: 1) www. changing demographic profiles and socio-economic environment – are already in place in India. and lowers logistics and marketing costs while delivering better value to customers in terms of lower price.ibef. most of these retail outlets belong to the unorganized sector. The inability of the unorganized sector to offer a wide range of products along with artificially inflated costs due to various factors have presented opportunities for growth in the organized retail sector migration from unorganized to organized retail has been visible with economic development in most economies. better quality. negative yield spread on leased property and lack of bank funding due to unorganized property market resulted in a dearth of quality retail space in the country. However. With close to 12 million retail outlets India has the largest retail density in the world. greater selection. However. Drivers for retail transformation in India A number of factors that drive transformation in retail – such as income growth.org/artdisplay. organized retail has to overcome significant challenges in terms of regulations and infrastructural barriers in order to realize its full potential. Organized retail derives its advantages in generating operational efficiencies while simultaneously catering to rising consumer aspirations.aspx?tdy=1&cat_id=60&art_id=20386 Growth in organized retail In sharp contrast to the global retail sector. In the past. with modern formats of retailing emerging. improved service and in store ambience. The spread between yield on property and its financing cost has turned positive with the .

Consumerism and brand proliferation has been another enabler for organized retailing in India. both vendor management and logistics management are still undeveloped. FDI restrictions have also restricted entry of international majors in retailing in India. the smaller ones are constrained for growth funding. In India.indianmba. equity options are also restricted with Foreign Direct Investment not being permitted in the retail sector. which could have Otherwise helped the industry develop with funding as well as bringing in of best practices and systems. supply chain efficiencies will become a key differentiator of profitability in retail. The retail sector has not been granted industry status.com/Faculty_Column/FC460/fc460.html Challenges for organized retail There exist differential sales tax rates across states in India . However. With growing opportunities in the emerging service sectors such as ITES. Source: www. At the same time. Most of the world’s leading brands are now present in India. Similarly.fall in interest rates. Supply chain management efficiencies are essential to retailers to maintain and improve margins. While some of the leading retailers are still able to get bank funding.This adds to cost and complexity of distribution as this necessitates multiple warehouses and does not allow for centralization of certain 16 procurements given the incidence of local levies. there is large-scale sales tax evasion by smaller stores who derive significant cost advantage through such evasion. with growing size of operations. The availability of trained manpower poses a key risk for the retail sector. Attractive yields on investments have resulted in sharp increase in property development. The capital requirements for a retailer are in real estate (which banks have historically restricted lending to) and for working capital requirements. limiting funding from banks and financial institutions. the ability of the retail business to hire and retain quality people is under pressure. Value Retailing .

Food world) has presence in metros and mini metros. footwear. Lifestyle retailing These stores retail primarily non-food items such as apparel. and Lifestyle) have presence in the metros and mini metros. Star India. though some of them focus on their in house store label (on the lines of Marks & Spencer’s and St. Shoppers’ Stop. The share of expenditure on food and grocery in a consumer’s wallet. They stock multiple brands across product categories. The convenience factor coupled with the inspirational perception of shopping in a department store has contributed to their growth. accessories. Evolution of Retail . cosmetics and household products. These are primarily large stores with volume based discounted prices. The larger chain of supermarkets and hypermarkets (namely Big Bazaar. Michael). Westside. These stores are found on high streets and as Anchor Tenants of shopping malls. The larger chains of department stores (Namely Pantaloons’.These stores primarily retail primarily food and house hold items. Several local department store chains have opened shop in India in the past five years. Nilgiris. availability of a vide variety of products at a reasonable price are the main factors which has contributed to the growth of this segment.

ey.Source: 1) www.com/india India’s five main consumer segments: .

www.scribd. the Mumbai books retailer Crossword. Specialty Stores: Chains such as the Bangalore based Kids Kemp. Located mainly in metro cities. They lend an ideal shopping experience with an amalgamation of product.Source: 1. service and entertainment. Ranges from 60. in proximity to urban outskirts. RPG's Music World and the Times Group's music chain Planet M.com/doc/47945/McKinsey-MGI-india-consumer-full-report/ Central Statistical Organization(CSO) & Technopak Analysis Retailing Formats in India: Malls: The largest form of organized retailing today. 00.000 sq ft to 7. Examples include Shoppers Stop. . are focusing on specific market segments and have established themselves strongly in their sectors. Pyramid. all under a common roof.000 sq ft and above. 2. and Pantaloon.

scribd. feet located near residential areas. also known as Category Killers. offer several brands across a single product category. Among these. Prices are slightly higher due to the convenience premium. Source: 1) http://www.com/doc/4782190/The-Indian-Retail-Snapshot Convenience Stores: These are relatively small stores 400-2. ft) across India and even has its own in store brand for clothes called Stop!. seven days a week. which started in Mumbai and now has more than seven large stores (over 30. MBO’s: Multi Brand outlets. offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. discount stores or factory outlets. Hyper marts/Supermarkets: Large self service outlets.500 sq ft to 5. having a strong focus on food & grocery and personal sales. The product category can range from a variety of perishable/ non perishable goods Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms.000 sq.000 sq. These stores today contribute to 30% of all food & grocery organized retail sales.000 sq ft and large supermarkets ranging from of 3. the biggest success is K Raheja's Shoppers Stop. These usually do well in busy market places and Metros. These are located in or near residential high streets. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day.000 sq ft to 2. catering to varied shopper needs are termed as Supermarkets.Discount Stores: As the name suggests.000 sq ft. . Super Markets can further be classified in to mini supermarkets typically 1.

fashion in India is becoming more stratified. Technology. as in the West. Under the aegis of the Union textile ministry and in tandem with . As lifestyles change. mundane products for years have now tripled their product ranges and new appealing shapes and forms are being launched each Season. are retailers Fortune #1 “Wal-Mart” is a Retailer Over 12 Million Outlets in India Organized Retail < 3% Set to grow to 8-10% by 2010 Organized Retail expected to be around Rs. fashion has also played an important role in shaping apparel consumerism.Some Facts: • • • • • • • • Global Retail industry is of size USD 8 Trillion Over 50 of the Fortune 500 companies are retailers 25 of the Asian Top 200 companies. and quickly. ideas and lifestyles are moving concurrently.com/doc/4782190/The-Indian-Retail-Snapshot APPAREL RETAIL: Moving Beyond Customer Expectations The influence of fashion clearly.000 Cr(USD 25 b) by 2010 Share of all the segments in retail: Source: 1) http://www. Top-notch fashion professionals came together four years ago to form the Fashion Design Council of India.scribd. Companies and brands that offered monotonous.110.

an Overview: The apparel industry is one of India's largest foreign exchange earners. has a limited range exhibited in generic department stores located in metro cities. Source: 1) http://apparel. global apparel brands are setting up their own apparel outlets. Today many leading fashion labels are being associated with Indian products.html It has been estimated that India has approximately 30. . The boom in domestic apparel. Yet it has now set up its own stand-alone stores.National Institute of Fashion Technology. Today not only is the garment export business growing. But now. FDCI now provides professional inputs for designing labels and is now working towards developing the fashion supply chain through backward linkages with suppliers and mills. India is increasingly being looked upon as a major supplier of high quality fashion apparels and Indian apparels have come to be appreciated in major markets internationally. instead of just selling through departmental stores. tells only part of the story. with the government’s proposal to let in branded retail players— brands like Benetton and Lacoste currently sell mostly through the franchise route—investments in India’s apparel sector are likely to go up substantially.000 crores.indiamart. enthusiasm in the minds of the foreign buyers is also at a high. Now.000 crores of which apparel occupied over Rs14.000 readymade garment manufacturing units and around three million people are working in the industry. Ralph Lauren. nevertheless. India has huge potential as a market for foreign clothing. which showcase all the company’s brands.35. accounting for nearly 16% of the country's total exports. A few significant foreign players—such as Levi Strauss. for example. Indian Apparel Industry. just like their Indian counterparts. and forward linkages with the retail and distribution network.com/lib/garments/indian07251998. Benetton and Lacoste—have been selling their branded apparel in India for a number of years. The 1996 Indian textile exports approximately amounted to Rs. The credit for this goes to our exporter community. given its large population and growing household incomes.

like Shoppers Stop. Thus the need of the hour is to enlarge both manufacturing as well as the marketing base. our clothing industry is dominated by sub-contractors and consists mainly of small units of 50 to 60 machines. footwear.ibef. In India.000 every year. Upper income urban women are adopting ethnic chic. but small volume business. ethnic fabrics and are a fusion of western and Indian styles. Central Africa. With the advent of modern format retailers and the growth of plastic cards. there is no reason for complacency on the part of Indian exporters or of the garment industry. apparel retailers.Consistent efforts towards extensive market coverage. Source: 1) www. Latin America and Australia is also mandatory for export growth. relatively high fashion.org They spend mornings browsing in stores looking for deals or latest styles. The industry will be soon faced with open competition shorn of quotas or tariffs. weddings and fashion accessories. and pressed for time. CIS. and the largest producer of films. Inculcation of a spirit of innovation by way of research and development and tapping new markets especially in South Africa. clothing retail accounts for 36% of organized retail business. They provide entertainment and an escape from reality for India’s masses. With growing working women wearing western wear to work. India's supply base is medium quality. Bollywood fashions have become pan Indian. But till today. market for good readymade clothes is likely to grow. These are designer clothes that incorporate Indian motifs. India is a film-crazy nation. and set the popular fashion trend. improving technical capabilities and putting together an attractive and wide merchandise line has paid rich dividends. with more than 1. Ready-made apparel accounted for an estimated 20% of domestic clothing sales in 2005. East European countries. Though these are expected to fizzle out soon. Recent recession in Europe and the South Asian currency crisis have also contributed their own bits to the decimating Indian exports. They affect various sectors of the market including clothing. It is the largest Sector. Westside and Pantaloon . In the large urban centres. affluent urban Indian women are shopping like never before.

for instance. a player needs to keep a close watch on fashion amongst teenagers as they are the trend setters. 20-30% of their apparel turnover is from private labels. Typically once an item is sold from the outlet. Customers look to design and fit of the clothes. which have attracted urban shoppers. Customers have loyalty to a store rather than any particular garment brand. which includes apparel of men. stock piling and brand switching on the part of a consumer which substantially reduces retailer’s financial and inventory risk and . Characteristics of Apparel retail sector As apparel retail is led by fashion. Apparel retailer needs to understand critical role of sales promotions. It gets replaced by different design. has a loyalty programme called `The Inner Circle'. Westside carries only its own private labels. décor is very critical. Category management becomes very crucial function as transformation of design into production and delivery has to be completed before fashion or fad changes in the market. and use the shop’s name as a quality standard. while for the other stores. while Pantaloons offers a `Green Card' Rewards programmes. goes down substantially and inventory carrying burden turns out to be very high. A browser visiting the store frequently likes to see changes in the layout otherwise he may carry the impression that stocks are not moving out of the store. retailer ensures that there is no repetition of same. Seasonal variations on stocking pattern and need to clear inventory at the end of season should be understood by apparel retailer. Importance of store layout. This highlights the importance of sales promotions.have popularized their private labels.511 billion ( USD 38 billion) . Role of Bollywood in spreading fashion needs to be understood. Indian textile and clothing industry during 2006 is estimated to be about INR1. Attractive promotions induces purchase acceleration. colour. Hence organized retailers like Lifestyle. women and kids . style. This has led to a thriving unbranded or local brand market for ready-to-wear clothes leading to severe competition.short term activities which induces trade or consumer to buy now rather than in future as the value of apparel after the season. Westside has `Club West' to Woo the customers.

 Mumbai-based lifestyle chain Pantaloon spends around US $ 840000 in a year to revitalize Shoppers Stop –has more than 35 more Outlets. If the customer will purchase first then only he/she can be loyal so in order to retail the existing & attracting the new ones. Spykar has set up approx 35 stores across the country in all the major cities.000 square feet. A large young working population with a median age of 24 years. Enter. Besides sprucing up exiting stores in Delhi and Punjab. and that’s a bit of a surprise in a country where preferences change every 25 km and loyalties change for a 10% difference in pricing. the New Retail Entrepreneurs  Delhi-based Ebony has commenced a massive expansion in northern India with eight new stores and a combined retail space of 150. brands have started shaping buying behavior.consumer’s financial risk and psychological risk. a part of the Dubai-based Landmark Group retail chain.  Lifestyle.ernet. company should have best CRM strategies. occupying a combined retail space of one million square feet.earlier owns seven stores located across various metro cities.  Bangalore-based   TCNS Clothing has more than 37 stores across the country.iimahd. then company has doubled its presence to 14 stores in 2006. growing numbers of nuclear families in urban . its brands and promote new brands. the company is expanding to other north Indian states.pdf Changing Consumer Behavior But suddenly. Source: 1) www.in/publications/data/2007-07-01Preeta. Branded apparel merchandising is gathering critical momentum in India.

Madura Garments has opened up a mega store in the heart of Bangalore that sells the company’s flagship brand. Previously. after food products. Over the last two years.000 sq ft stores to sell its flagship brand apparel: Arrow. the store is designed to function at three levels—ground. and nearly per cent of Arvind’s apparel business comes from these outlets. Because the market potential was still relatively small in the nineties.areas.is revamping its chain of 300 stores—known as Raymond’s Shops—and focusing on readymades at a cost of around US $ 35 million. Raymond’s – the flagship brand of the Singhania Group-. Now. The new stores have a minimum 1. increasing working-women population and emerging opportunities in the services sector have increased the average consumer spend on branded clothing. apparel buying is the second biggest consumption category at malls. Arvind Mills. From Franchise to Company Owned Larger textile manufacturers were the first off the block in the nineties. Industry experts believe that apparel sales in retail stores posted a growth of between 2530 per cent in 2003 and according to an estimate by McKinsey. the branded apparel market—is now worth nearly $ 3 billion. Apparel retailing is no longer a metropolitan phenomenon. with big players like Raymond. the consumer boom is being driven by a new openness about using credit cards. The logic: the contribution of readymade apparel to total sales has gone up 25-30 percent compared to the previous year. Until recently. Likewise. most players used the franchise route to expand. Now. companies are using their own funds to increase the capacities of their retail stores. Peter England. quality retailing was limited to high streets and standalone departmental stores. Without question. the Arvind Mafatlal Group had a chain of below-1. Madura Garments and Zodiac Clothing building extensive retail networks. companies are now quickly branching to smaller cities in an effort to cash in on the consumer boom. the company management has closed down a number of these small stores and gone in for bigger stores. usage of credit card has increased a lot. across metros. Spread over a carpet area of 1350 square feet. According to ICICI Bank. semi-ground and .500 square feet space.

there is a fivefold difference in per capita income in apparel .000.org/artdisplay. a slew of new retail entrepreneurs chains are investing heavily to cash in on India’s US $ 15 billion clothing market. Last year. www. clothing and apparel stores. Spurred by these successes.mezzanine. this single store logged sales of nearly US $ 205.aspx?tdy=1&cat_id=60&art_id=20386 • Even within the top income segments.com/doc/2100112/Indian-Retail-Sector\ www. This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon. Encouraged by this success. Shoppers’ Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores • Source: 1. 2. the company has opened a second mega store and is planning a third in the near future.ibef.scribd. Some Facts about Indian Apparel Industry: • India’s top retailers are largely lifestyle.

1991 and on September 25.asp Pantaloons believes in managing customer expectation by offering them all the requirements for their entire family under one roof is the key to being a successful . Source: 1) www.pantaloon. 1987 as Manz Wear Private Limited.scribd. The Company was converted into a public limited company on September 20. 1992 the name was changed to Pantaloon Fashions (India) Limited and in the same year the Company made an initial public offering.com/companyinfo.Some of the major Indian Players: • • • • • • • • Pantaloons Globus Lifestyle Ebony Westside Shopper’s Stop Metro Pyramid Introduction to some retail stores: • Pantaloons: This Company was incorporated on October 12.com/doc/47945/McKinsey-MGI-india-consumer-full-report 2) www. Later they changed their name to Pantaloon Retail (India) Limited on July 7 1999.

three star and five star. Shopper’s stop has a loyalty card program with the name of first citizen card wherein Every point generated at all the levels is equivalent to Rs. The company opened its first store in 1999 at Indore followed by the launch of its second store in Chennai (T-Nagar). The Globus has a Privilege Club card which is very unique in a way that Members are immediately rewarded for purchases at any of their stores. The Company has launched a new consumer promotion called ‘Make Your Own Sale Day’.1 It also stays in touch with its loyal customers through Mailers.retailer. They have a loyalty card programme with a name of ‘Green Card'. SMS’s E-mails and Telephone informing them about the developments and promotions. Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award". 2008 Shopper’s stop has co-branded credit card tie-up with Citibank to provide its customers with exclusive benefits for shopping. It is divided hierarchically into one star. • Globus : Launched in January 1998. each with it own benefits designed to suit the needs of the customers. Every point generated at all the levels is equivalent to Rs. and hence have built their business model around ‘Family focus’ rather than ‘individual focus’. This is why Globus offers 2 different card categories. To each his own individual needs vary. started in the year 1991 with its first store in Andheri. Pantaloons clearly define Lifestyle products under Private Labels and third party brands. on April 10.1 . by World Retail Congress at Barcelona. • Shopper’s Stop: Shoppers Stop is an Indian department stores promoted by the K Raheja Corp Group (Chandru L Raheja Group). in addition to a host of other privileges such as exclusive tie ups. Globus is a part of the Rajan Raheja group. promotion and special shopping hours.

special shopping hours on the first day of any discount sales event organized by the chain.htm 3) en. The 30. Westside idea is Club West. Lifestyle has a loyalty card programme Known as the ‘The Inner Circle ' For every Rs. For every 100 points earned.50 spent at any of the stores.com/lifestyl.wikipedia. a customer loyalty programme launched in May 2001. gift voucher of Rs. the Group has become one of the foremost retailers in the Gulf. Lifestyle India began operations in 1999 with its first store in Chennai.chipsbooks.• Westside: Established in 1998 as a part of TATA group. a Dubai – based retail chain. Positioned as a trendy.org/wiki/Shoppers'_Stop Comparison Between different players: .globus. home delivery of alterations. 1 point is earned. With over 30 years’ experience in retailing. • Lifestyle Lifestyle International (P) Ltd is part of the Landmark Group.100 is received.in 2) http://www. and best of all. Source: 1) www. youthful and vibrant brand that offers customers a wide variety of merchandise at an exceptional value for money.000-plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels.

1800 Apparel accessories for men. POP Price off. free Lucky draw. Print & electronic media.print.1200 Average billing per customer Average footfalls 1000on weekday & 1500 to 2000 on weekends. women & children Rs. women & children Rs. In electronic store (SMS. Hoardings. 300-999 Multibrand Exclusive Tata Trent group Style & affordability Stylized clothes. 800 Family store categories Apparel accessories for men.Store Name Pantaloons lifestyle Globus Shopper’s Stop Westside Format Type Positioning Multibrand Multibrand Exclusive own private labeled brand Fashion at afforfability Apparel & accessories for men. women & children Rs. Hoardings. hoardings. In store gift vouchers. Loyalty card Programme 4. electronic. In store Cause related Discounts. holidays 1200 in week days & 6000 during week end 2000 in week days & 7400 durin week end 1200 in week days & 7000 during week end 25-45 per hour Sales promotion: 1. Media used Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes (Exchange offer ) Yes No No No No Yes No No No Hoardings. footwear & accessories Rs199-1999 Family store Unique & high quality Family Store Apparel accessories for men. . Special Promotion (event) 5. In store Print. Hoardings. women Rs. Festive Promotions (Diwali. End of season 2. 7. Christmas etc) 3. Email. Joint promotion 6.

are no longer interested in being told what products to buy. Using tools such as secure Web portals. If the role of such activities is understood well it may help any player a long way to survive and grow. enabling maximum responsiveness . Retail Touch Points:  Pull preferred over Push: A “pull” supply chain driven by actual consumer demand is preferable to a “push” supply chain driven by manufacturer and retailer promotion. Customers who are used to literally having the world at their fingertips. Indian brands will have to withstand turbulent conditions and learn to survive. thanks to the Internet and personal electronic devices. They will bring many promotional practices which they have been following in developed markets which will increase the use of sales promotion activities even further. Many multinational players either have already plunged into Indian market or plan to do so in apparel sector.Future outlook Apparel sector is likely to grow with growing Indian economy. insight-driven retailers propagate current consumer demand data throughout the supply chain.

The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers. increases customer satisfaction levels and market basket sizes. forecasted demand.and agility. This. and profit potential. Assortment plans can thus be executed in a manner that maximizes the sales potential of floor selling space. Optimization systems take in information such as store sales. Best CRM strategies should be implemented helping the customers to save the money. creating 5 to 10 percent improvements in gross margin dollars and improved inventory turn Space Optimization : It allows retailers to use every square inch of selling space to its maximum profit potential. Source: 1) Article from Oracle Retail by Dave Boyce. . Retailers who embed customer SKU preferences into their profiling. forecasting and optimization practices can improve the accuracy of buying and allocating merchandise. marketing effectiveness. responsiveness and market trends. time and heartburn by providing comprehensive customer reviews at a click.”  Localized Product Assortments: By localizing the merchandising and assortment plans at the individual store level. such as higher margins and increased basket sizes. such as improved customer satisfaction levels. a store can reap significant intangible benefits. in turn. as well as decreases the amount of unsold inventory in the supply chain and even levels of “safety stock. CRM stands for Customer Relationship Management. sales. It is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. There are many technological components to CRM. some delightful. but thinking about CRM in primarily technological terms is a mistake. Every experience should be completely satisfactory.  What is CRM ?? What ever the customer buys for him. as well as tangible benefits. customer preferences and product sizes to produce space plans based on business rules.

the technology.com/ca/eng/main/home/index. retailers spend an excessive amount of time and money collecting.cfm?article_id=625 http://www. the question is how to create and maintain customer satisfaction. How we treat all of this information is where CRM plays a key role. .html Every business organization depends on customers for sustenance. Source: 1) 2) http://www. assess customer requirements and develop customer plans and strategies.pwc. Also employees should be trained in much better way because if the employees will be loyal only then customers can be loyal. Loyalty programs have allowed retailers to collect and analyze vast quantities of data on purchases by individuals. Now a days many retail outlets are using the IT advisory services that will enable them to gather and evaluate critical customer information.Dimensions of CRM: • • • Identifying the customers Acquiring the customers Retaining the customers A store should be customer-oriented . CRM acts as a central repository of information on clients and potential clients of any store.com/story. E-retailing has added to the avalanche of data. Foremost thing for better CRM: Getting value out of real time customer information Today. especially in our technology rich and information based society.creatingloyalty. Every business communicates with their clients in many different ways. While this information is essential to understanding changing customer needs and expectations. the design everything should be geared to making the buying experience as good as possible. Loyal employees help bring in the business. it's important that the systems you use to gather this information are efficient and cost-effective. analyzing and trying to utilize customer data by turning it into information and knowledge that is actionable. the supply chain.

All that the consumer has to do is to pay for the goods.Customer Relation-Profile When mapping the quality of a customer relationship. from manufacture to checkout and compared to Universal Product Code (UPC) bar coding. and other business productivity improvements. document tracking. RFID (Radio Frequency Identification) is now the buzzword in retail. the items in the cart are hit with laser beams and scanned. the following model is being used symbolizing the communication and co-operation. use pre-stored data to calculate the cost and generate the total bill for a client. It is real time tracking of every single product. In a matter of seconds. distribution. and inventory costs. and enhance customer service. eliminating the manual point-and-read operations needed with bar coding. RFID proactively transmits information. technology evolved rapidly to support this growth. increase margins. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. The macro-areas where RFID can be utilized are:  EAS (Electronic Article Surveillance) systems: The use of tags and antennas usually inside a retail setting for tracking articles. which RFID promises to replace. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories. and the Legs concern the responsibility and professionalism with which we implement or deliver the competencies we have agreed upon. The new developments create an easy way for users to generate bar codes on demand for asset tracking. Customer Relations Management (CRM) and Technology in Retail Over the years as the consumer demand increased and the retailers geared up to meet this increase.   Customer Interfacing Systems Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item. compliance labeling. . This enhanced visibility could significantly decrease warehouse.

Positioning systems: Used for automated location identification of tagged items or vehicles Payment Payment through credit cards has become quite widespread and this enables a fast and easy payment process. processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank.  Internet Internet is also rapidly evolving as a customer interface. while transponders are placed on moveable items.    Operation Support Systems  ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution. Portable Data Capture systems: portable RFID systems that can be used anywhere. mail order and the Internet has provided retailers with real access to consumer data. Rather than manually process a cheque. having digitally captured and stored the image of the cheque. An integrated supply chain helps the retailer in maintaining his stocks. a recent development in this area. front and back office store systems and merchandising. This. . the retailer voids it and hands it back to the consumer along with a receipt. removing the need of a consumer physically visiting the store. Networked systems: fixed position readers those are directly connected to centralized information management system. getting his supplies on time. Electronic cheque conversion. which makes the process very fast.  CRM Systems The rise of loyalty programs. preventing stock-outs and thus reducing his costs. while servicing the customer better. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. along with the various available CRM (Customer Relationship Management) Systems.

weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. all the way from raw material supplier’s right through to the retail shelf. Today. They enable consolidation of activities such as long term budgeting.   Strategic Decision Support Systems Store Site Location Demographics and buying patterns of residents of an area can be used to compare various possible sites for opening new stores. These APS packages complement existing (but often limited) ERP packages. CRM MODEL . A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options.  Visual Merchandising The decision on how to place & stack items in a store is no more taken on the gut feel of the store manager.allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well. monthly forecasting.  Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain.

strong and wanted sides of the organizations.The essence of this process is mutually to discover weak. Customer Loyalty: . in order to improve future relations. this is the tool for organization and organization. organization should be able to identify the terms of relationship with others and the profile will indicate what to focus on if organization want to develop it further. If organization want an "easy to use tool" to realize how organization can maximize business relations. Using the Customer Relation Profile.

easily located products. store cleanliness. Retailers figuring out the best ways to make the checkout process more effective through the use of technology are the most successful in the long run. Without that help and support they become easily frustrated. Literature Review: . It is not until a store is confronted with unacceptable scores that they take the time to understand what to do with the customer feedback information. over a long period of time. bad customer service will result in brand and profitability erosion. and checkout experience. One way to take action on customer feedback would be to develop training programs geared toward those responsible for fostering the customer experience in the store. customers still need to be guided into finding the right products. Surprisingly. There are a lot of components to the shopping experience such as availability of parking. As busy consumers. finding exactly what you want.It is becoming more and more evident to retailers that the customer shopping experience is a critical pathway to the financial success of the store. Likewise. price is an element we do not find to be a significant driver of loyalty. There is nothing worse than having a great shopping experience. Setting aside unique location or competitive differences. It is not surprising that the personal interaction of store associates is a significant component of driving loyalty. and eventually shop at the competition. and then being held hostage by the checkout process. Even in today's self-service retailing environment. Not that pricing is inconsequential or immaterial to the consumer's choice of where to shop. friendliness and helpfulness of sales staff. we all face time and cost trade-offs. but if price were the only thing driving loyalty we would all be frequenting garage sales and flea markets. These programs would teach what actions are necessary to improve low scores. Loyalty is most influenced by the shopping experience and the brand (the cumulative impact of many experiences over time). stores with higher levels of customer loyalty should see higher same store sale increases year over year.

The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers. mandate for most of these early adopters seems to be “customer loyalty at any cost-even is we don’t see a return on investment.” Peppers and Rogers (1993) stated that to build the relationships with your individual customers. The implied. Moore. Haesun (2002) studied Buyer–seller relationships for promotional support in the apparel sector which is critical for success. of the companies actively implementing CRM. 93 percent claimed increased customer loyalty and customer Satisfaction would justify their CRM investment. Goebel. The first dimension refers to the customer’s degree of active participation in the creation of the experience.. Woodard. A positive and . Aspects studied include background on the symbolic aspects of consumption. to identify the retailer's perceptions of the offering frequency and importance of the promotional support. 83 percent. The paper concludes with managerial implications for the United States apparel retailers dealing in prestige clothing. stated the need to demonstrate increased revenue. The second dimension of experience describes the degree to which the customer adsorbs or immerses the experience.. Park. you need to sell maximum products over a long period of time and across different product lines. prestige shopping behavior. A brief overview is presented below: According to Pine and Gilmore (1999) experiences can be described by two dimensions. Dawn R. In the recent information Week survey.. The Second highest percentage. Results indicated that monetary support was regarded as the most important promotional support. Kincade. Doris H.Several studies on CRM and apparel retail sector are reported in the context of developed markets. reassessment and refinement of the PRECON scale and impact of income and age on prestige shopping. Jesse N.. (2000) examined Prestige clothing shopping by consumers by a confirmatory assessment and refinement of the PRECON scale. Ginger A. Bitner and Zenithal (2003) stated that satisfaction is the customer’s evaluation of a product or service has met their needs & expectations. Deeter-Schmelz.. and to investigate the relationship between offering frequency and perceptions of importance. Daniel J.

For light buyers. It found out that the perceptions differed regarding quality. When all companies had loyalty programs. Descals.significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. acceptance of US apparel brands. Molly. Liu. Hyllegard. Borja. the loyalty program broadened their relationship with the firm into other business areas. norms and behaviour that influence consumer decision making and impact acceptance of products and services. but the program did not prompt them to change their purchase behavior. Miguel Angel Gomez (2005). household income. payment options. Meyer-Waarden. the study found out that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards. In contrast. Karen. Consumers' acceptance of US apparel brands was a function of age. convenience of location. extent and quality of customer service. Alejandro Molla. fashionability. . Lars. consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm. Thus there is a need to consider patronage to decide rewards for loyalty programmes. (2006) studied the Impact of Loyalty Programmes on Repeat Purchase Behaviour based on the Behavior Scan single-source panel which has been compared with the store data base . The study emphasized that speciality retailers' success in international markets is contingent upon their knowledge of culturally-defined values. and perceptions of the impact of foreign retailers on local communities. The study examined consumers' store patronage and apparel purchase behaviour. studied Spanish consumers' perceptions of US apparel speciality retailers' products and services. Benavent. (2007) found out the Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Yuping. product assortment. Christophe. national brands and store layout. Eckman. In the context of French market. perceptions of retailers' products and services. The double jeopardy phenomenon was present and loyalty programmes did not substantially change market structures. the market was characterized by an absence of change of the competitive situation. apparel product country of manufacture and price. Using longitudinal data from a convenience store franchise.

Yuping. Sweat. Deeter-Schmelz. Vol. “Lots of companies are thinking about customer relationship management. 16p. 6. 26 Issue 4. 7. Pedro Reinares.” prestige clothing shopping by consumers: a confirmatory assessment and refinement of the precon scale with managerial implications”. 5p. Don and Martha Rogers. Accessories and Luxury Goods” Datamonitor. Dec2002.indiamart. Fall2000. and the economic worth of customers: Wwhat we know and what we need to learn. V. Winter2005 Issue 48..” Journal of Marketing Management.. 4. 5. Feb2006. Oct2007.” The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. 3. “Global Apparel.”. Christophe. 67-85 11.. Lara. Jesse N.scribd. Goebel. Eckman.com/lib/textile/textile07301998. p294-302.... September 15. 7 charts. Vol. 22 Issue 1/2.2000. 8.” Exploring the Benefits Obtained in a Loyalty Programme applied to Retailing. Sep2005. Hyllegard.D. ”Spanish consumers' perceptions of US apparel speciality retailers' products and services “Journal of Consumer Behaviour. Benavent. Journal of Marketing Theory & Practice. Daniel J. http://apparel. http://www. profitability. Jeff.” European Retail Digest. 28p. 17p.. Borja. The one to one future: Building Relationships One Customer At a Time. 71 Issue 4. Alejandro Molla. Lars. Descals. Ginger A. Doris H. Vol. International Journal of Consumer Studies. Karen. 18p. (2006) 10. Dawn R. Peppers. Molly.1993 13.” Information Week via COMTEX online. “Consumer Lifestyles in India” Euromonitor. Vol. 12. New York:Doubleday. Liu. p61-88. But progress can be very slow-CRM under scrutiny.. Kincade.com/doc/95637/Customer-Relationship-Management . Ph. Haesun. MiguelAngel Gomez.html 2. 9p. Meyer-Waarden. Journal of the Academy of Marketing Science 28(1).A.” Journal of Marketing.References: 1. p43. Moore. Service quality. p19-35. Zeithaml. Woodard. p48-52.” The Impact of Loyalty Programmes on Repeat Purchase Behaviour. Vol. 4 Issue 5. p345-362. International Consumer Lifestyles Database(2005) 9. 8 Issue 4. (2000). Park..

Statistical analysis The statistical treatment of the study included the determination of the association between the steps in the CRM model and the customer service offered by the organization. Use was made of a five-point Likert scale.0. The two questionnaire were developed hypothesis were formulated to reflect the associations between the different Lifestyle Stores and the customer service offered by them. which indicates the strength and direction of association between the two variables.  To study the perception of customers towards the CRM strategies implemented by the different Lifstyle Stores.0 and +1. the applications of IT. The main body of the questionnaire included 11 questions reflecting customer service. Structured questionnaires. The measure was standardized through computation of reliability & validity. T-test was applied in order to compare significant difference between the store attributes of different lifestyle store. Use was made of Pearson’s coefficient to determine the level of association between the store attributes. Also to evaluate the different Gender’s opinions towards the Customer services they are getting from the lifestyle stores & to evaluate the retailer’s perception about the customer’s expectations. . were distributed to the people in a mall. to measure the respondents’ perceptions and expectations.RESEARCH DESIGN Research objectives The survey was conducted among the customers shopping in the mall. customer service & the customer loyalty. The level of association as measured by Pearson’s co-efficient falls between -1. interaction and customization. A total of 200 questionnaires were distributed to the people.  To do the comparative analysis of different Lifestyle Stores on different store dimensions.  terms of CRM To get an insight of the Retailer’s perspective towards the customer’s expectation in The research instrument The research instrument used was developed to measure both the expectations and perceptions of the customers of the Lifestyle Stores.  To study the association between the Customer’s Services & the Customer Loyalty. differentiation. identification. Qualitative Analysis of the Retailer’s Perspective was done to get an insight of their perception towards the customers expectations & to study the CRM strategies implemented by them esp.


The store focuses on accessibility while maintaining its exclusivity and protecting its tradition and heritage while striving to be innovative and inspiring. industry types will attempt to provide styles of clothing that will keep up with the current season’s trends and for which they are able to command a price premium. they provide sensible and affordable clothing whose styles will not change drastically from year to year. expansion of licenses into areas such as watches and sunglasses and a product mix toward accessories and gifts. The lifestyle stores find customer loyalty to be of utmost importance and would do almost anything to attract new customers while trying to keep existing customers. Key strategic initiatives included: “the muchvalued positioning as a lifestyle brand. However the lifestyle stores are is very fascinating and the products themselves signify prestige and status. . and for the fashion-conscious consumer. flagship stores and presence in high-end department stores. CONCLUSIONS The luxury goods industry is unique in a sense that it relies solely on promotion and marketing to sell products and not so much on product attributes but on the individual images certain brands convey. The brand’s recent revival was a result of several key strategic plans.The companies serve two types of consumers: for the practical consumer. The apparel industry exists in a very competitive environment where companies need to adopt new technologies in order to improve profitability and lower costs. But every customer has a different perception Although a select few are able to afford luxury goods. It is also an industry that is well guarded and difficult to find any information on. The demand for Apparels are affected by general economic trends . the vast majority of people who are exposed to advertisements for certain products generally have aspirations of being able to own these products someday. One can come to the conclusion that the designer clothing industry is pretty volatile and subject to unpredictable swings which is reflected in the quality. For consumers Luxury means exclusivity.

the presence of competition. but for everyone else luxury goods are items that many aspire to be able to own someday. companies have realized the importance of e-commerce and how the Internet can be advantageous for Lifestyle Stores to create and reinforce their brand image and at the same time increasing brand awareness. For the wealthy. RESEARCH DESIGN The study is exploratory in nature with survey method being used to complete the study. luxury goods reinforce their status as a member of the upper class.In the past three years. The main factors in such a study were customer demographics. An example of this would be the Consumer’s make a use of internet. The allure for many designer products is people’s desire for wealth and status.  To get an insight of the Retailer’s perspective towards the customer’s expectation in terms of CRM  The Research Instrument The research instrument used was developed to measure both the expectations and perceptions of the customers of the Lifestyle Stores.  To do the comparative analysis of different Lifestyle Stores on different store dimensions.  To study the perception of customers towards the CRM strategies implemented by the different Lifstyle Stores. which is ultimately the end product that is consumed. physical store . luxury goods brands have been broadening their appeal to a wider consumer base.  To study the association between the Customer’s Services & the Customer Loyalty. Also to evaluate the different Gender’s opinions towards the Customer services they are getting from the lifestyle stores & to evaluate the retailer’s perception about the customer’s expectations. The two questionnaire were developed hypothesis were formulated to reflect the associations between the different Lifestyle Stores and the customer service offered by them. It is an idea of status and exclusivity that makes these brands sought-after by people from many different walks of life. Both Exploratory & Causal Research Design were taken Research objectives: The survey was conducted among the customers shopping in the mall.

Discussion of the specific findings H1: Identifying new and existing clients increases the level of customer service. Use was made of Pearson’s coefficient to determine the level of association between the store attributes. identification. Use was made of a five-point Likert scale. The measure was standardized through computation of reliability & validity. the applications of IT. which indicates the strength and direction of association between the two variables. CRM technologies and the characteristics of Customer Service Representatives etc. H3: The level of customer service is increased if there is an active interaction with potential and offered according to each individual client’s needs. Qualitative Analysis of the Retailer’s Perspective was done to get an insight of their perception towards the customers expectations & to study the CRM strategies implemented by them esp. T-test was applied in order to compare significant difference between the store attributes of different lifestyle store. . to measure the respondents’ perceptions and expectations. quality. The level of association as measured by Pearson’s co-efficient falls between -1. sales promotions. differentiation.characteristics. were distributed to the people in a mall. Statistical analysis The statistical treatment of the study included the determination of the association between the steps in the CRM model and the customer service offered by the organization. H2: Differentiating between the services offered to new and existing clients increases the level of customer service. interaction and customization.0.0 and +1. A total of 200 questionnaires were distributed to the people. Structured questionnaires. The main body of the questionnaire included 11 questions reflecting customer service. customer service & the customer loyalty.

DATA ANALYSIS 1) Occupation * How often do you make your purchase of Apparels? Cross tabulation Count How often do you make your purchase of Apparels? Weekly Occupation Business Service Student Total 8 7 4 19 Monthly 24 53 9 86 Twice in a Month 6 21 2 29 Occasionall y 25 6 35 66 Total 63 87 50 200 Occupation Cumulative Percent 31.0 Valid Business Service Student Total Frequency 63 87 50 200 Percent 31.0 100.0 100.0 100.5 75.5 25.5 43.0 Valid Percent 31.0 .5 43.5 25.

44%.i. The business class people prefer to make the purchase of apparels occasionally but sometimes monthly too.i.Results: • The service class people prefer to make the purchase of apparels monthly i.31% While a student prefer to make the purchase of apparels occasionally.e.25% • • .e.e.

• People from income group of >30 K prefer to make the purchase of apparels occasionally.5 15.0 Results: • People from income group of 18-30 K prefer to make the purchase of apparels monthly i.i.e.0 31.5 100.5 65. 31%.e.0 Valid Percent 19.34% .0 31.0 Monthly 5 20 34 27 86 Twice in a Month 2 2 19 6 29 Occasionally 29 6 3 28 66 Total 39 30 62 69 200 Valid <12 K 12-18 K 18-30 K >30 K Total Frequency 39 30 62 69 200 Percent 19.0 34.1) Income * How often do you make your purchase of Apparels? Cross tabulation Count How often do you make your purchase of Apparels? Weekly Income <12 K 12-18 K 18-30 K >30 K Total 3 2 6 8 19 Income Cumulative Percent 19.5 34.0 34.5 15.5 100.5 100.

.20%.0 Valid Percent 52.0 100.0 100.• People from income group of <12 K prefer to make the purchase of apparels occasionally i.0 Total 30 27 57 104 96 200 Gender Total Male Female Valid Male Female Total Frequency 104 96 200 Percent 52.15% • 2) Gender * Do you owe Loyalty Cards? Cross tabulation Count Do you owe Loyalty Cards? Yes No 74 69 143 Gender Cumulative Percent 52.0 Results: • Out of 104.e.0 100.0 48. People from income group of 12-18 K prefer to make the purchase of apparels monthly.0 48.i. 74 Male respondents have the loyalty cards of different lifestyle Stores.e.

.• Out of 96. Finding: Females are prone to shopping that is why maximum females have loyalty cards. 69 Female respondents have the loyalty cards of different lifestyle Stores.

Sign up to vote on this title
UsefulNot useful