This action might not be possible to undo. Are you sure you want to continue?
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
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL
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)
AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL
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)
5 Marketing segmentation of retail industry 2. 1 Introduction 1.5 Lifestyle International (Pvt) Limited .4 Some Facts 220.127.116.11 Drivers for retail transformation in India 1.3.3 Major Players 2.4 Trent Limited 2.2 Characteristics of Apparel retail sector 2.1 Growth in organized retail 1.CONTENTS Declaration Certificate from Faculty guide Certificate from Industry Guide Acknowledgement S.3 Retailing Formats in India 18.104.22.168.3 Shopper’s Stop Limited 2. Chapter Name Page No. Industry Insight – Indian Retail Industry 1.No.3.1.3 From Franchise to Company Owned 2.2.1 Introduction 1.2 Globus 2.2.3 Challenges for organized retail 1.1 New Retail Entrepreneurs 2.3. Apparel Retail in India 2.2 Evolution of Retail 1.2 Changing Consumer Behavior 2.1 Pantaloon Retail (India) Limited 2.1 Overview 2.3 Some Facts about Indian Apparel Industry 2.
3 Customer Retention Profile 3.1 Introduction 3.6 Retail Touch points 3.3.2 Dimensions of CRM 3.4 CRM & IT 2 3 4 5 6 References Annexure Literature Review Problem Statement Methodology Results & Discussions Suggestions & Conclusion . Customer Relationship Management 3.6 comparison between different players 2.4 Managerial Challenges 2.5 Future Outlook 2.2.
85 trillion) business by 2015. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. the country’s overall retail sector will become a $450 billion (Rs20. it is also believed that increase in consumer spending would be driven by nuclearisation of families. Further. Food and beverages. With an expanding economy. it is believed that India is expected to experience accelerated consumption over the next few years. . supermarkets and specialty stores.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. At present India’s modern retail business accounts for only about 5% of the country’s annual retail business. with changing demographics driving growth of organized retailing and driving growth in consumption.6 million jobs in the next five years acc. 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. 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. the modern retail business will create about 1. With changing demographic and economic profile of the Indian population. hypermarkets. apparel and consumer durables are the top three categories of consumer spend and form 87% of the total retail sales in India. The Indian Retail Sector The Indian Retail Sector is at an inflexion point. to McKinsey. With declining interest rates an average Indian is not averse to taking loans. increasing population of working women and new job opportunities in emerging service sectors such as IT Enabled Services. Along the way.
organized retail has to overcome significant challenges in terms of regulations and infrastructural barriers in order to realize its full potential. changing demographic profiles and socio-economic environment – are already in place in India. with modern formats of retailing emerging. better quality. Availability of quality retail space has been one of the main constraints for development of organized formats in India. In the past. However. 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. retailing in India – though large in terms of size – is highly fragmented and unorganized. However.aspx?tdy=1&cat_id=60&art_id=20386 Growth in organized retail In sharp contrast to the global retail sector.org/artdisplay. 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.Source: 1) www. most of these retail outlets belong to the unorganized sector. Size drives economies on procurement. greater selection. The spread between yield on property and its financing cost has turned positive with the . improved service and in store ambience. Drivers for retail transformation in India A number of factors that drive transformation in retail – such as income growth. With close to 12 million retail outlets India has the largest retail density in the world. The Indian retail industry is evolving in line with changing customer aspirations across product groups. and lowers logistics and marketing costs while delivering better value to customers in terms of lower price. Organized retail derives its advantages in generating operational efficiencies while simultaneously catering to rising consumer aspirations.ibef.
Supply chain management efficiencies are essential to retailers to maintain and improve margins. supply chain efficiencies will become a key differentiator of profitability in retail. Consumerism and brand proliferation has been another enabler for organized retailing in India. both vendor management and logistics management are still undeveloped. which could have Otherwise helped the industry develop with funding as well as bringing in of best practices and systems. with growing size of operations.com/Faculty_Column/FC460/fc460. Source: www. However. equity options are also restricted with Foreign Direct Investment not being permitted in the retail sector. While some of the leading retailers are still able to get bank funding. The retail sector has not been granted industry status.html Challenges for organized retail There exist differential sales tax rates across states in India . Similarly.indianmba. the ability of the retail business to hire and retain quality people is under pressure. limiting funding from banks and financial institutions. the smaller ones are constrained for growth funding. At the same time.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. In India. Value Retailing . With growing opportunities in the emerging service sectors such as ITES.fall in interest rates. FDI restrictions have also restricted entry of international majors in retailing in India. 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. Most of the world’s leading brands are now present in India.
These stores primarily retail primarily food and house hold items. Westside. footwear. availability of a vide variety of products at a reasonable price are the main factors which has contributed to the growth of this segment. Lifestyle retailing These stores retail primarily non-food items such as apparel. Michael). These are primarily large stores with volume based discounted prices. The larger chains of department stores (Namely Pantaloons’. accessories. Food world) has presence in metros and mini metros. Several local department store chains have opened shop in India in the past five years. Shoppers’ Stop. though some of them focus on their in house store label (on the lines of Marks & Spencer’s and St. Evolution of Retail . Star India. and Lifestyle) have presence in the metros and mini metros. The larger chain of supermarkets and hypermarkets (namely Big Bazaar. These stores are found on high streets and as Anchor Tenants of shopping malls. Nilgiris. 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. The share of expenditure on food and grocery in a consumer’s wallet. cosmetics and household products.
com/india India’s five main consumer segments: .Source: 1) www.ey.
Specialty Stores: Chains such as the Bangalore based Kids Kemp. 00.000 sq ft to 7. in proximity to urban outskirts.Source: 1. Pyramid.000 sq ft and above. all under a common roof. 2.scribd. and Pantaloon.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. RPG's Music World and the Times Group's music chain Planet M. Located mainly in metro cities. are focusing on specific market segments and have established themselves strongly in their sectors. Ranges from 60. the Mumbai books retailer Crossword. They lend an ideal shopping experience with an amalgamation of product. Examples include Shoppers Stop. . www. service and entertainment.
Source: 1) http://www. 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. the biggest success is K Raheja's Shoppers Stop. . ft) across India and even has its own in store brand for clothes called Stop!. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day.500 sq ft to 5. 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. also known as Category Killers. having a strong focus on food & grocery and personal sales.000 sq.000 sq ft and large supermarkets ranging from of 3. catering to varied shopper needs are termed as Supermarkets. Super Markets can further be classified in to mini supermarkets typically 1. MBO’s: Multi Brand outlets.Discount Stores: As the name suggests. Among these. These usually do well in busy market places and Metros.scribd. These are located in or near residential high streets. which started in Mumbai and now has more than seven large stores (over 30. feet located near residential areas. seven days a week. Hyper marts/Supermarkets: Large self service outlets.com/doc/4782190/The-Indian-Retail-Snapshot Convenience Stores: These are relatively small stores 400-2. offer several brands across a single product category. Prices are slightly higher due to the convenience premium. These stores today contribute to 30% of all food & grocery organized retail sales.000 sq ft to 2.000 sq.000 sq ft.
110.000 Cr(USD 25 b) by 2010 Share of all the segments in retail: Source: 1) http://www. as in the West. As lifestyles change. Companies and brands that offered monotonous. ideas and lifestyles are moving concurrently. mundane products for years have now tripled their product ranges and new appealing shapes and forms are being launched each Season. Under the aegis of the Union textile ministry and in tandem with .com/doc/4782190/The-Indian-Retail-Snapshot APPAREL RETAIL: Moving Beyond Customer Expectations The influence of fashion clearly. fashion has also played an important role in shaping apparel consumerism. Technology. and quickly. 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.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.scribd. Top-notch fashion professionals came together four years ago to form the Fashion Design Council of India. fashion in India is becoming more stratified.
Indian Apparel Industry. The 1996 Indian textile exports approximately amounted to Rs. nevertheless. for example. 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. Today many leading fashion labels are being associated with Indian products.com/lib/garments/indian07251998. just like their Indian counterparts. enthusiasm in the minds of the foreign buyers is also at a high. given its large population and growing household incomes. Source: 1) http://apparel. 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 readymade garment manufacturing units and around three million people are working in the industry. The credit for this goes to our exporter community. tells only part of the story. Yet it has now set up its own stand-alone stores. Ralph Lauren.35. But now. A few significant foreign players—such as Levi Strauss. instead of just selling through departmental stores. India has huge potential as a market for foreign clothing.an Overview: The apparel industry is one of India's largest foreign exchange earners. which showcase all the company’s brands. has a limited range exhibited in generic department stores located in metro cities.000 crores.indiamart. and forward linkages with the retail and distribution network.000 crores of which apparel occupied over Rs14. accounting for nearly 16% of the country's total exports. The boom in domestic apparel. Today not only is the garment export business growing. global apparel brands are setting up their own apparel outlets. Now.National Institute of Fashion Technology.html It has been estimated that India has approximately 30. . Benetton and Lacoste—have been selling their branded apparel in India for a number of years.
Thus the need of the hour is to enlarge both manufacturing as well as the marketing base. relatively high fashion. They provide entertainment and an escape from reality for India’s masses. and pressed for time. apparel retailers. Recent recession in Europe and the South Asian currency crisis have also contributed their own bits to the decimating Indian exports.ibef. footwear. clothing retail accounts for 36% of organized retail business. our clothing industry is dominated by sub-contractors and consists mainly of small units of 50 to 60 machines. and set the popular fashion trend. with more than 1. Bollywood fashions have become pan Indian. East European countries. improving technical capabilities and putting together an attractive and wide merchandise line has paid rich dividends. Though these are expected to fizzle out soon. affluent urban Indian women are shopping like never before. With growing working women wearing western wear to work. It is the largest Sector. But till today.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. and the largest producer of films. ethnic fabrics and are a fusion of western and Indian styles. Upper income urban women are adopting ethnic chic. They affect various sectors of the market including clothing. there is no reason for complacency on the part of Indian exporters or of the garment industry. Westside and Pantaloon . India is a film-crazy nation. These are designer clothes that incorporate Indian motifs. India's supply base is medium quality. like Shoppers Stop. market for good readymade clothes is likely to grow. With the advent of modern format retailers and the growth of plastic cards. In India. but small volume business. Central Africa. Inculcation of a spirit of innovation by way of research and development and tapping new markets especially in South Africa. Source: 1) www. weddings and fashion accessories. CIS.Consistent efforts towards extensive market coverage. In the large urban centres.000 every year. Ready-made apparel accounted for an estimated 20% of domestic clothing sales in 2005. Latin America and Australia is also mandatory for export growth.
and use the shop’s name as a quality standard.511 billion ( USD 38 billion) . Typically once an item is sold from the outlet. Westside carries only its own private labels. which have attracted urban shoppers. Westside has `Club West' to Woo the customers. while for the other stores. It gets replaced by different design. Customers look to design and fit of the clothes. which includes apparel of men. This highlights the importance of sales promotions. 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. This has led to a thriving unbranded or local brand market for ready-to-wear clothes leading to severe competition. Indian textile and clothing industry during 2006 is estimated to be about INR1. while Pantaloons offers a `Green Card' Rewards programmes. retailer ensures that there is no repetition of same. Attractive promotions induces purchase acceleration. women and kids . stock piling and brand switching on the part of a consumer which substantially reduces retailer’s financial and inventory risk and . for instance.short term activities which induces trade or consumer to buy now rather than in future as the value of apparel after the season. Role of Bollywood in spreading fashion needs to be understood. has a loyalty programme called `The Inner Circle'. Hence organized retailers like Lifestyle. Customers have loyalty to a store rather than any particular garment brand. colour. a player needs to keep a close watch on fashion amongst teenagers as they are the trend setters. style. Characteristics of Apparel retail sector As apparel retail is led by fashion. goes down substantially and inventory carrying burden turns out to be very high. Importance of store layout. décor is very critical. Apparel retailer needs to understand critical role of sales promotions. Seasonal variations on stocking pattern and need to clear inventory at the end of season should be understood by apparel retailer. 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. 20-30% of their apparel turnover is from private labels.have popularized their private labels.
Mumbai-based lifestyle chain Pantaloon spends around US $ 840000 in a year to revitalize Shoppers Stop –has more than 35 more Outlets. occupying a combined retail space of one million square feet. Besides sprucing up exiting stores in Delhi and Punjab.iimahd.ernet. Lifestyle. Enter. Branded apparel merchandising is gathering critical momentum in India. its brands and promote new brands. 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. then company has doubled its presence to 14 stores in 2006. Spykar has set up approx 35 stores across the country in all the major cities.consumer’s financial risk and psychological risk. company should have best CRM strategies.000 square feet. 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. brands have started shaping buying behavior. growing numbers of nuclear families in urban .pdf Changing Consumer Behavior But suddenly. Source: 1) www. Bangalore-based TCNS Clothing has more than 37 stores across the country.earlier owns seven stores located across various metro cities. If the customer will purchase first then only he/she can be loyal so in order to retail the existing & attracting the new ones. a part of the Dubai-based Landmark Group retail chain.in/publications/data/2007-07-01Preeta. the company is expanding to other north Indian states. A large young working population with a median age of 24 years.
the branded apparel market—is now worth nearly $ 3 billion. Raymond’s – the flagship brand of the Singhania Group-. According to ICICI Bank. the store is designed to function at three levels—ground. The new stores have a minimum 1. semi-ground and . after food products. Now. Madura Garments has opened up a mega store in the heart of Bangalore that sells the company’s flagship brand. Without question. Spread over a carpet area of 1350 square feet.500 square feet space. Apparel retailing is no longer a metropolitan phenomenon. Now. Until recently. From Franchise to Company Owned Larger textile manufacturers were the first off the block in the nineties. Madura Garments and Zodiac Clothing building extensive retail networks. Over the last two years. Likewise. quality retailing was limited to high streets and standalone departmental stores.is revamping its chain of 300 stores—known as Raymond’s Shops—and focusing on readymades at a cost of around US $ 35 million.areas. apparel buying is the second biggest consumption category at malls. the Arvind Mafatlal Group had a chain of below-1. Previously.000 sq ft stores to sell its flagship brand apparel: Arrow. increasing working-women population and emerging opportunities in the services sector have increased the average consumer spend on branded clothing. the consumer boom is being driven by a new openness about using credit cards. with big players like Raymond. across metros. and nearly per cent of Arvind’s apparel business comes from these outlets. the company management has closed down a number of these small stores and gone in for bigger stores. Arvind Mills. Because the market potential was still relatively small in the nineties. companies are using their own funds to increase the capacities of their retail stores. The logic: the contribution of readymade apparel to total sales has gone up 25-30 percent compared to the previous year. most players used the franchise route to expand. companies are now quickly branching to smaller cities in an effort to cash in on the consumer boom. 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. Peter England. usage of credit card has increased a lot.
Last year.000. Some Facts about Indian Apparel Industry: • India’s top retailers are largely lifestyle. there is a fivefold difference in per capita income in apparel . www.com/doc/2100112/Indian-Retail-Sector\ www.aspx?tdy=1&cat_id=60&art_id=20386 • Even within the top income segments. this single store logged sales of nearly US $ 205. the company has opened a second mega store and is planning a third in the near future. Encouraged by this success. This is followed by grocery stores Following the past trends and business models in the west retail giants such as Pantaloon.mezzanine. 2.ibef.org/artdisplay. a slew of new retail entrepreneurs chains are investing heavily to cash in on India’s US $ 15 billion clothing market.scribd. Spurred by these successes. Shoppers’ Stop and Lifestyle are likely to target metros and small cities almost doubling their current number of stores • Source: 1. clothing and apparel stores.
Source: 1) www. 1992 the name was changed to Pantaloon Fashions (India) Limited and in the same year the Company made an initial public offering.pantaloon.scribd.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 .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. Later they changed their name to Pantaloon Retail (India) Limited on July 7 1999. The Company was converted into a public limited company on September 20.com/companyinfo.com/doc/47945/McKinsey-MGI-india-consumer-full-report 2) www. 1987 as Manz Wear Private Limited. 1991 and on September 25.
1 It also stays in touch with its loyal customers through Mailers. The Company has launched a new consumer promotion called ‘Make Your Own Sale Day’. promotion and special shopping hours. Globus is a part of the Rajan Raheja group. each with it own benefits designed to suit the needs of the customers. 2008 Shopper’s stop has co-branded credit card tie-up with Citibank to provide its customers with exclusive benefits for shopping. and hence have built their business model around ‘Family focus’ rather than ‘individual focus’. The company opened its first store in 1999 at Indore followed by the launch of its second store in Chennai (T-Nagar). • Globus : Launched in January 1998. three star and five star. Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award". started in the year 1991 with its first store in Andheri. in addition to a host of other privileges such as exclusive tie ups. It is divided hierarchically into one 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.retailer. Pantaloons clearly define Lifestyle products under Private Labels and third party brands. 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. • Shopper’s Stop: Shoppers Stop is an Indian department stores promoted by the K Raheja Corp Group (Chandru L Raheja Group). To each his own individual needs vary. on April 10. This is why Globus offers 2 different card categories. Every point generated at all the levels is equivalent to Rs. by World Retail Congress at Barcelona. SMS’s E-mails and Telephone informing them about the developments and promotions.1 . They have a loyalty card programme with a name of ‘Green Card'.
gift voucher of Rs. a customer loyalty programme launched in May 2001. Lifestyle India began operations in 1999 with its first store in Chennai. Source: 1) www.000-plus members of this club get rebates at restaurants and on holiday packages from the Taj Group of Hotels.wikipedia. the Group has become one of the foremost retailers in the Gulf. special shopping hours on the first day of any discount sales event organized by the chain. home delivery of alterations.com/lifestyl.100 is received. Positioned as a trendy. Lifestyle has a loyalty card programme Known as the ‘The Inner Circle ' For every Rs.in 2) http://www. The 30. For every 100 points earned.org/wiki/Shoppers'_Stop Comparison Between different players: . Westside idea is Club West. • Lifestyle Lifestyle International (P) Ltd is part of the Landmark Group.chipsbooks. youthful and vibrant brand that offers customers a wide variety of merchandise at an exceptional value for money.globus. and best of all. With over 30 years’ experience in retailing.50 spent at any of the stores.htm 3) en. 1 point is earned. a Dubai – based retail chain.• Westside: Established in 1998 as a part of TATA group.
In store Cause related Discounts. In electronic store (SMS. Hoardings. free Lucky draw. hoardings. In store gift vouchers.1800 Apparel accessories for men. In store Print. End of season 2. 800 Family store categories Apparel accessories for men.print.1200 Average billing per customer Average footfalls 1000on weekday & 1500 to 2000 on weekends. Christmas etc) 3. Hoardings. electronic. Email. footwear & accessories Rs199-1999 Family store Unique & high quality Family Store Apparel accessories for men. Special Promotion (event) 5. POP Price off. 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.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 Rs. women & children Rs. . women & children Rs. Loyalty card Programme 4. Print & electronic media. 7. Joint promotion 6. 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. women & children Rs. Hoardings. 300-999 Multibrand Exclusive Tata Trent group Style & affordability Stylized clothes. Festive Promotions (Diwali.
Customers who are used to literally having the world at their fingertips. 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. If the role of such activities is understood well it may help any player a long way to survive and grow. thanks to the Internet and personal electronic devices. are no longer interested in being told what products to buy. Many multinational players either have already plunged into Indian market or plan to do so in apparel sector. Using tools such as secure Web portals.Future outlook Apparel sector is likely to grow with growing Indian economy. Indian brands will have to withstand turbulent conditions and learn to survive. 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. insight-driven retailers propagate current consumer demand data throughout the supply chain.
such as improved customer satisfaction levels. What is CRM ?? What ever the customer buys for him. This. as well as tangible benefits. Source: 1) Article from Oracle Retail by Dave Boyce.” Localized Product Assortments: By localizing the merchandising and assortment plans at the individual store level. There are many technological components to CRM. . in turn. a store can reap significant intangible benefits. sales. CRM stands for Customer Relationship Management. It is a process or methodology used to learn more about customers' needs and behaviors in order to develop stronger relationships with them. 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.and agility. Assortment plans can thus be executed in a manner that maximizes the sales potential of floor selling space. responsiveness and market trends. Every experience should be completely satisfactory. time and heartburn by providing comprehensive customer reviews at a click. some delightful. Optimization systems take in information such as store sales. Retailers who embed customer SKU preferences into their profiling. marketing effectiveness. as well as decreases the amount of unsold inventory in the supply chain and even levels of “safety stock. customer preferences and product sizes to produce space plans based on business rules. but thinking about CRM in primarily technological terms is a mistake. The more useful way to think about CRM is as a process that will help bring together lots of pieces of information about customers. and profit potential. such as higher margins and increased basket sizes. Best CRM strategies should be implemented helping the customers to save the money. forecasted demand. forecasting and optimization practices can improve the accuracy of buying and allocating merchandise. increases customer satisfaction levels and market basket sizes.
Dimensions of CRM: • • • Identifying the customers Acquiring the customers Retaining the customers A store should be customer-oriented . the design everything should be geared to making the buying experience as good as possible.com/ca/eng/main/home/index. analyzing and trying to utilize customer data by turning it into information and knowledge that is actionable. E-retailing has added to the avalanche of data. While this information is essential to understanding changing customer needs and expectations. Loyalty programs have allowed retailers to collect and analyze vast quantities of data on purchases by individuals. Also employees should be trained in much better way because if the employees will be loyal only then customers can be loyal.com/story.creatingloyalty. CRM acts as a central repository of information on clients and potential clients of any store. assess customer requirements and develop customer plans and strategies. Every business communicates with their clients in many different ways.pwc. especially in our technology rich and information based society.cfm?article_id=625 http://www. . Now a days many retail outlets are using the IT advisory services that will enable them to gather and evaluate critical customer information. retailers spend an excessive amount of time and money collecting. Loyal employees help bring in the business. the question is how to create and maintain customer satisfaction. How we treat all of this information is where CRM plays a key role. Foremost thing for better CRM: Getting value out of real time customer information Today. the supply chain.the technology. Source: 1) 2) http://www.html Every business organization depends on customers for sustenance. it's important that the systems you use to gather this information are efficient and cost-effective.
eliminating the manual point-and-read operations needed with bar coding. which RFID promises to replace. technology evolved rapidly to support this growth. The new developments create an easy way for users to generate bar codes on demand for asset tracking. and other business productivity improvements. Tunnel Scanning is a new concept where the consumer pushes the full shopping cart through an electronic gate to the point of sale. . document tracking. compliance labeling. In a matter of seconds. and inventory costs. use pre-stored data to calculate the cost and generate the total bill for a client. the following model is being used symbolizing the communication and co-operation. from manufacture to checkout and compared to Universal Product Code (UPC) bar coding. All that the consumer has to do is to pay for the goods. the items in the cart are hit with laser beams and scanned. distribution. This enhanced visibility could significantly decrease warehouse. RFID (Radio Frequency Identification) is now the buzzword in retail.Customer Relation-Profile When mapping the quality of a customer relationship. and enhance customer service. and the Legs concern the responsibility and professionalism with which we implement or deliver the competencies we have agreed upon. increase margins. It is real time tracking of every single product. RFID proactively transmits information. The hardware and software tools that have now become almost essential for retailing can be into 3 broad categories. Customer Interfacing Systems Bar Coding and Scanners Point of sale systems use scanners and bar coding to identify an item. 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. 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.
while transponders are placed on moveable items. An integrated supply chain helps the retailer in maintaining his stocks. Electronic cheque conversion. This. front and back office store systems and merchandising. Internet Internet is also rapidly evolving as a customer interface. 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. which makes the process very fast. . processes a cheque electronically by transmitting transaction information to the retailer and consumer's bank. removing the need of a consumer physically visiting the store. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and apply it to business. Operation Support Systems ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution. CRM Systems The rise of loyalty programs. Rather than manually process a cheque. Portable Data Capture systems: portable RFID systems that can be used anywhere. having digitally captured and stored the image of the cheque. a recent development in this area. the retailer voids it and hands it back to the consumer along with a receipt. along with the various available CRM (Customer Relationship Management) Systems. mail order and the Internet has provided retailers with real access to consumer data. preventing stock-outs and thus reducing his costs. while servicing the customer better. getting his supplies on time. Networked systems: fixed position readers those are directly connected to centralized information management system.
A larger number of visual merchandising tools are available to him to evaluate the impact of his stacking options.allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses. 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. software packages are helping retailers not only in their locational decisions but in decisions regarding store sizing and floor-spaces as well. Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain. 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. They enable consolidation of activities such as long term budgeting. CRM MODEL . weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data. These APS packages complement existing (but often limited) ERP packages. all the way from raw material supplier’s right through to the retail shelf. Today. monthly forecasting.
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. in order to improve future relations. Customer Loyalty: . this is the tool for organization and organization. If organization want an "easy to use tool" to realize how organization can maximize business relations.The essence of this process is mutually to discover weak. Using the Customer Relation Profile. strong and wanted sides of the organizations.
These programs would teach what actions are necessary to improve low scores.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. Even in today's self-service retailing environment. and checkout experience. Setting aside unique location or competitive differences. customers still need to be guided into finding the right products. finding exactly what you want. There is nothing worse than having a great shopping experience. and then being held hostage by the checkout process. Without that help and support they become easily frustrated. Likewise. 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. Literature Review: . 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. friendliness and helpfulness of sales staff. stores with higher levels of customer loyalty should see higher same store sale increases year over year. bad customer service will result in brand and profitability erosion. There are a lot of components to the shopping experience such as availability of parking. and eventually shop at the competition. Loyalty is most influenced by the shopping experience and the brand (the cumulative impact of many experiences over time). 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. Not that pricing is inconsequential or immaterial to the consumer's choice of where to shop. As busy consumers. easily located products. price is an element we do not find to be a significant driver of loyalty. Surprisingly. but if price were the only thing driving loyalty we would all be frequenting garage sales and flea markets. we all face time and cost trade-offs. store cleanliness. It is not surprising that the personal interaction of store associates is a significant component of driving loyalty. over a long period of time.
Haesun (2002) studied Buyer–seller relationships for promotional support in the apparel sector which is critical for success. Ginger A. Moore. A brief overview is presented below: According to Pine and Gilmore (1999) experiences can be described by two dimensions. The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers. The second dimension of experience describes the degree to which the customer adsorbs or immerses the experience. prestige shopping behavior. stated the need to demonstrate increased revenue. of the companies actively implementing CRM. The paper concludes with managerial implications for the United States apparel retailers dealing in prestige clothing.. Kincade. The Second highest percentage. Jesse N. 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.. Aspects studied include background on the symbolic aspects of consumption. A positive and .. (2000) examined Prestige clothing shopping by consumers by a confirmatory assessment and refinement of the PRECON scale. reassessment and refinement of the PRECON scale and impact of income and age on prestige shopping. Park. Deeter-Schmelz.” Peppers and Rogers (1993) stated that to build the relationships with your individual customers.. 93 percent claimed increased customer loyalty and customer Satisfaction would justify their CRM investment. Woodard. The first dimension refers to the customer’s degree of active participation in the creation of the experience. Bitner and Zenithal (2003) stated that satisfaction is the customer’s evaluation of a product or service has met their needs & expectations.. Dawn R. to identify the retailer's perceptions of the offering frequency and importance of the promotional support. 83 percent. Daniel J. Goebel.Several studies on CRM and apparel retail sector are reported in the context of developed markets. The implied. Doris H. you need to sell maximum products over a long period of time and across different product lines. and to investigate the relationship between offering frequency and perceptions of importance. In the recent information Week survey. Results indicated that monetary support was regarded as the most important promotional support.
Alejandro Molla. perceptions of retailers' products and services. Benavent. apparel product country of manufacture and price. Miguel Angel Gomez (2005). Lars. . Borja. For light buyers. When all companies had loyalty programs. and perceptions of the impact of foreign retailers on local communities. The double jeopardy phenomenon was present and loyalty programmes did not substantially change market structures. Karen. but the program did not prompt them to change their purchase behavior. The study emphasized that speciality retailers' success in international markets is contingent upon their knowledge of culturally-defined values. (2007) found out the Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Descals. extent and quality of customer service. In the context of French market. product assortment. Using longitudinal data from a convenience store franchise.significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. The study examined consumers' store patronage and apparel purchase behaviour. (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 . Hyllegard. Thus there is a need to consider patronage to decide rewards for loyalty programmes. the loyalty program broadened their relationship with the firm into other business areas. studied Spanish consumers' perceptions of US apparel speciality retailers' products and services. convenience of location. acceptance of US apparel brands. the market was characterized by an absence of change of the competitive situation. It found out that the perceptions differed regarding quality. 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. Christophe. payment options. national brands and store layout. Molly. Eckman. fashionability. household income. In contrast. consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm. Consumers' acceptance of US apparel brands was a function of age. Yuping. norms and behaviour that influence consumer decision making and impact acceptance of products and services. Liu. Meyer-Waarden.
. profitability..1993 13. p61-88. Eckman. “Consumer Lifestyles in India” Euromonitor. Service quality.” Exploring the Benefits Obtained in a Loyalty Programme applied to Retailing. Alejandro Molla. Vol. Journal of Marketing Theory & Practice. Dawn R. 3. International Journal of Consumer Studies. 18p.. p48-52. Haesun.” prestige clothing shopping by consumers: a confirmatory assessment and refinement of the precon scale with managerial implications”. (2006) 10. http://apparel.2000. V.com/doc/95637/Customer-Relationship-Management .” Journal of Marketing. Don and Martha Rogers. Meyer-Waarden.com/lib/textile/textile07301998.. p19-35.” The Impact of Loyalty Programmes on Repeat Purchase Behaviour. Daniel J. Fall2000.” Information Week via COMTEX online. Christophe. 8 Issue 4.html 2. Doris H. 28p. http://www. 17p. But progress can be very slow-CRM under scrutiny. Dec2002. Sep2005. Yuping. September 15. Vol.”. 4 Issue 5. Lars. The one to one future: Building Relationships One Customer At a Time. Oct2007.” The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. 16p. Lara. Jeff. Borja..References: 1. p294-302. MiguelAngel Gomez. Jesse N. Vol. Journal of the Academy of Marketing Science 28(1). ”Spanish consumers' perceptions of US apparel speciality retailers' products and services “Journal of Consumer Behaviour. 26 Issue 4. p345-362. 6. Liu.D. 9p.. 5. 7 charts. Descals.. New York:Doubleday. Hyllegard. Vol. Accessories and Luxury Goods” Datamonitor. Vol.” Journal of Marketing Management. 67-85 11. Molly. Ph.indiamart. Park.. International Consumer Lifestyles Database(2005) 9. Goebel. Benavent. Kincade. Woodard. p43.A. “Lots of companies are thinking about customer relationship management.scribd. and the economic worth of customers: Wwhat we know and what we need to learn. Ginger A. (2000). Moore. Sweat. Feb2006. 4. Peppers. 22 Issue 1/2. 8.” European Retail Digest. Winter2005 Issue 48. Zeithaml. 71 Issue 4. Deeter-Schmelz. 12.. “Global Apparel. 5p. Pedro Reinares. 7. Karen.
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.0. Use was made of Pearson’s coefficient to determine the level of association between the store attributes.0 and +1. The two questionnaire were developed hypothesis were formulated to reflect the associations between the different Lifestyle Stores and the customer service offered by them. . interaction and customization. differentiation. the applications of IT. 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. were distributed to the people in a mall. To study the perception of customers towards the CRM strategies implemented by the different Lifstyle Stores.RESEARCH DESIGN Research objectives The survey was conducted among the customers shopping in the mall. 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. To do the comparative analysis of different Lifestyle Stores on different store dimensions. to measure the respondents’ perceptions and expectations. identification. The level of association as measured by Pearson’s co-efficient falls between -1. To study the association between the Customer’s Services & the Customer Loyalty. which indicates the strength and direction of association between the two variables. Use was made of a five-point Likert scale. The measure was standardized through computation of reliability & validity. Structured questionnaires. 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. A total of 200 questionnaires were distributed to the people. The main body of the questionnaire included 11 questions reflecting customer service. customer service & the customer loyalty. T-test was applied in order to compare significant difference between the store attributes of different lifestyle store.
But every customer has a different perception Although a select few are able to afford luxury goods. The store focuses on accessibility while maintaining its exclusivity and protecting its tradition and heritage while striving to be innovative and inspiring. For consumers Luxury means exclusivity. the vast majority of people who are exposed to advertisements for certain products generally have aspirations of being able to own these products someday. flagship stores and presence in high-end department stores. expansion of licenses into areas such as watches and sunglasses and a product mix toward accessories and gifts. and for the fashion-conscious consumer. Key strategic initiatives included: “the muchvalued positioning as a lifestyle brand. 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 . 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. 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. The brand’s recent revival was a result of several key strategic plans.The companies serve two types of consumers: for the practical consumer. they provide sensible and affordable clothing whose styles will not change drastically from year to year. 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. However the lifestyle stores are is very fascinating and the products themselves signify prestige and status. The apparel industry exists in a very competitive environment where companies need to adopt new technologies in order to improve profitability and lower costs. . 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.
Both Exploratory & Causal Research Design were taken Research objectives: The survey was conducted among the customers shopping in the mall. physical store . but for everyone else luxury goods are items that many aspire to be able to own someday. An example of this would be the Consumer’s make a use of internet. 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. the presence of competition. 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. The main factors in such a study were customer demographics. To do the comparative analysis of different Lifestyle Stores on different store dimensions. For the wealthy.In the past three years. To study the association between the Customer’s Services & the Customer Loyalty. luxury goods reinforce their status as a member of the upper class. 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. The allure for many designer products is people’s desire for wealth and status. which is ultimately the end product that is consumed. 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. To study the perception of customers towards the CRM strategies implemented by the different Lifstyle Stores. RESEARCH DESIGN The study is exploratory in nature with survey method being used to complete the study. luxury goods brands have been broadening their appeal to a wider consumer base.
customer service & the customer loyalty. Structured questionnaires. T-test was applied in order to compare significant difference between the store attributes of different lifestyle store. The measure was standardized through computation of reliability & validity. CRM technologies and the characteristics of Customer Service Representatives etc. identification. The level of association as measured by Pearson’s co-efficient falls between -1.characteristics. to measure the respondents’ perceptions and expectations. Use was made of a five-point Likert scale. The main body of the questionnaire included 11 questions reflecting customer service. quality.0. differentiation. sales promotions. 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. 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. 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. interaction and customization. A total of 200 questionnaires were distributed to the people. Discussion of the specific findings H1: Identifying new and existing clients increases the level of customer service. which indicates the strength and direction of association between the two variables. .0 and +1. Use was made of Pearson’s coefficient to determine the level of association between the store attributes. H2: Differentiating between the services offered to new and existing clients increases the level of customer service. were distributed to the people in a mall. the applications of IT.
5 43.0 100.0 Valid Percent 31.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 31.0 100.0 Valid Business Service Student Total Frequency 63 87 50 200 Percent 31.5 25.5 75.0 100.0 .5 25.5 43.
i.25% • • .Results: • The service class people prefer to make the purchase of apparels monthly i.i.e.e.31% While a student prefer to make the purchase of apparels occasionally. 44%. The business class people prefer to make the purchase of apparels occasionally but sometimes monthly too.e.
5 34.5 15.0 34.5 100.0 31.i.0 34.5 15.5 65.0 Valid Percent 19.0 Results: • People from income group of 18-30 K prefer to make the purchase of apparels monthly i.0 31. • People from income group of >30 K prefer to make the purchase of apparels occasionally.34% .5 100.1) 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.e.e.5 100.0 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. 31%.
.0 100.0 48.• People from income group of <12 K prefer to make the purchase of apparels occasionally i.0 Results: • Out of 104.i.0 100. People from income group of 12-18 K prefer to make the purchase of apparels monthly.0 Total 30 27 57 104 96 200 Gender Total Male Female Valid Male Female Total Frequency 104 96 200 Percent 52. 74 Male respondents have the loyalty cards of different lifestyle Stores.0 Valid Percent 52.0 48.0 100.20%.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.e.e.
.• Out of 96. 69 Female respondents have the loyalty cards of different lifestyle Stores. Finding: Females are prone to shopping that is why maximum females have loyalty cards.