INTERNATIONAL MARKET RESEARCH

SRUTI AHIR--------------------------------------------------------------0920849 AROMAL JOE------------------------------------------------------------0920806 SUBHADEEP SAHA-----------------------------------------------------0920831 11 Click to edit Master subtitle style TONY K ROY-------------------------------------------------------------0920835 DIBYAJYOTI PAL----------------------------------------------------------

10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT

FABINDIA

We Are..

10/21/2009 10/21/2009

fabindia

Headquarters: Delhi Area, India Industry: Retail Type: Privately Held Status: Operating Company Size: 1,000 employees Founded: 1958 Website: http://www.fabindia.net

CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT

Our Mission: Our Endeavour is to provide customers with hand crafted products Mission which help support and encourage good
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craftsmanship.

GOALS AND OBJECTIVES •To capture and establish a niche market in Germany. •To increase sales and profits through exporting our products to our European partners. 33 Click to edit Master subtitle style 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT . •To provide products that differentiates fashion in Europe.

10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT Why In Germany ?? 44 Click to edit Master subtitle style .

PRODUCTS THAT FAB INDIA PLANS TO EXPORT 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 55 Click to edit Master subtitle style .

4430 73 12 23 10 3465 - H&M 1800 346 61 98 156 .4% 11. Of countries they operate 4.8% 34 Stores in Various Countries 66 Worldwide Germany Austria Netherlands Sweden Click Inditex Group to edit Master subtitle style Gap Inc.1% 73 Gap Inc.8% 16.POTENTIAL PARTNERS FOR FABINDIA IN EUROPE Inditex Group Gap Inc Hennes & Mauritz H&M 10/21/2009 10/21/2009 COMPETITOR ANALYSIS Inditex Group 1-yr sales growth 1-yr net income growth No. 7.1% 44 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 11.4% 13.

hm.430 employees Company Size: Master subtitle style 2006 Revenue: 68. is a Swedish clothing company. known for its fast fashion clothing offerings for women. Sweden Industry: Retail Type: Public CompanyStatus: Operating 77 Click to edit 53.com . H&M has more than 1. men.800 stores in 34 different countries Insights … 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT Headquarters: Stockholm Area.H & M: Hennes & Mauritz AB (operating as H&M). teenagers and children.400 mil [SEK] (12%) Founded: 1947 Website: http://www.

üH&M holds the maximum market share in Germany in the Apparel Sector. & Sweden(156) are much greater in comparison to Inditex. comprising of 4430 stores worldwide.WHY H&M? Gap Inc.4%. and 10 in Sweden. üAlthough Inditex is one of the world’s largest apparel retailers. üAnnual sales growth of H&M was recorded to be Click to edit Master subtitle style 11.8%) üGermany is H&M’s #1 market accounting for about 25%of its sales. Austria(61). much higher to that of Inditex(4.4%) and Gap Inc.(7. üThough H&M has only 1800 stores worldwide but number of stores in Germany(346). 12 in Austria. Netherlands(98).23 in Netherlands. Has no stores in the above mentioned European countries. but it has only 73 stores in Germany. ü 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 88 .

Silk dusters • CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT Europe. swim wear. Silk tops. Men’s wear. Beach wears. Bangladesh. scarves Etc. Silk trousers. women's wear. and all other capital markets DESIGNER SALWAR KAMEEZ Shubhangi Click to edit Master subtitle style Overseas USA. European Countries LEHNGA CHOLI LADIES KURTIS DESIGNER SAREES HOME FURNISHING 99 Georgette Fabric •Chiffon Fabric •Crepe Fabric •Satin Fabric •Fashion wears.Companies and their products export to EUROPE Name of the Company Export Market Uzma international (China) Ronak Weaving/ Garments (Surat. Australia. Fashion Accessories like stoles. Silk stoles. America. Silk skirts. Silk wrap tops. Silk kurties. INDIA) European Market 10/21/2009 10/21/2009 Product Export Silk dresses. Children wear. hand bags. . Silk kaftans.

T.O.house suppliers manufacturing  In store Inconsistent quality  Price Trends Setter merchandising & of  Different categories navigation Products of stores to edit Master subtitle style   10 Click 10  Promoting e-service Inconsistent  Customer Loyalty business channel in   stores  Substitute producing  Organic foods competitors Weakness es Strengt hs CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT Opportuniti es Threa ts .W. Analysis 10/21/2009 10/21/2009  Differentiable  No specific products promotions  Brand recognition strategy and loyalty  Limited channels of  Diverse product mix business  Partnering with  Sourcing strategy suppliers skewed towards  In.Fabindia S.

E.10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT P.S. Analysis 11 11 Click to edit Master subtitle style .T.

000 small sources from rural areas in 12 Click to edit Master subtitle style 12 India. •Technical persons are more available in India rather • . •Top four states of sources in India are Andhra Pradesh.Production Details 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT All the necessary production will be done in India. •There are 22. Gujrat. and Rajasthan. Uttar Pradesh.

TARGET MARKET Ours is a niche market comprising of: • Indians & also Asians residing in Germany • Experimenters in Germany • Socio-Cultural Party-Goers 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 13 13 Click to edit Master subtitle style Total Ethnic Minority population 1951–2001.0 1971 2.9 .9 1991 5. in millions and percentage of GB population year per cent 1951 0.4 1961 1.3 1981 3.2 2001 7.

It provides many categories of logistics services such as 9:00 Express.Logistics TOP FIVE LOGISTICS COMPANIES IN INDIA 10/21/2009 10/21/2009 TNT AFL DHL BLUE DART GATI Why TNT ??? It is India’s best logistics provider . •TNT provides the widest range of time definite and day definite express delivery services in 200 countries. TNT has built our reputation on a record of commitment to meeting the needs of our customers. documents and freight items are delivered safely 14 and on time throughout the world. It operates in 200 countries world wide. edit Master subtitle style •TNT ensures that our parcels. 12:00 Click toEconomy Express. and Special Priority Express. Express. 10:00 14 Express. • • CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT .

11 – E 6.€ 21 € 24 subtitle € 38 style € 12 .99 – E49.E111.E5.S.99 – E69.A in GERMANY .€ 47 15 to edit Master € 14 .99 SAREES.€ 80 •The per capita income of germany is •The per capita income of U.E 5.Pricing & Product PRICING OF PRODUCTS BY COMPETETORS Category Ranging from (uzma)E11.€ 11 € 31 . • CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT PRODUCT MENS WEAR • Long kurtha • Short kutha • Pituk silk mutka WOMENS WEAR • Chudidar • Sarees • 15 girls Click Top ACCESORIES • Purse • jewlerry RANGE € 12 .99 Kid’s wear E9.A is $41209 •And so we have used prices similar to that of U.€ 19 € 7 .S.99Men Ladies SHERWANIS.€ 16 € 26 .99 10/21/2009 10/21/2009 Our Pricing Strategy: Skimming approach to cater to the needs of a niche market.99 SALWARS-E 9.99 KURTAS.€ 40 € 10 $37428.

Promotion German Garment sector’s Promotion Strategy 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 16 16 Click to edit Master subtitle style .

Italians. •Its very famous.9% (male 5. the very Western part of Germany.357/female 26. French.590. Arabs.724/female 5. Cologne and Düsseldorf are known for its nightlife and openminded atmosphere.222)  • . 17 Click to edit Master subtitle style •The age distribution in germany: 17 • 0–14 years: 13. South Asians like Indians.811.373) • 15–64 years: 66. Particularly among young Germans. Poles.894.PLACE Largest German and non-German ethnic groups 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT RHINE –RUHR (METROPOLITAN REGION) RHINE –RUHR (METROPOLITAN REGION): •COLONG is the largest city of the Rhineland.3% (male 27. •Rhinelanders. and Japanese (Google) •Rhine – Ruhr will be our target market because it has the heighest number of Indians and Asians. Iranians. Dutch. Westfalians and others Turks.790.

10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 18 18 Click to edit Master subtitle style . thus initial projections have only been made on accounts that are believed to most drive the income statement.Financial Aspects of Fabindia and H&M Projected Profit and Loss New Look is in the early stage of development.

This fund is more than enough for H&M for taking the risk of new FABINDIA ventures. ClickTheedit Mastershows that both the companies are in to above data subtitle style 19 a sound financial position in order to enter into a partnership which would further nourish and develop their business.Financial aspects of Fabindia and H&M The net income of H&M is 1881.2 US$ of which 5% is usually kept aside for further expansions.48m Net 19 profit was SEK 13588 m equivalent to EUR 1305.69m. 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT . The annual reports of H&M and fabindia Sales turnover in 2007-08 are as given Rs 260 crore Growth in sales 35-40 % Gross margin About 40 % HENNES & MAURITZ Gross profit for 2008 was SEK 54468m equivalent to EUR 5245.

Financial aspects of Fabindia and H&M Getting into the details :•The manufacturing cost of a garment as per the present market prices is round about 50 to 65 euros when converted •This can be sold by H&M at the prevailing normal garment prices of 100 euros. •In this manner. •Fabindia can cover the extra costs of exports by a margin it gets by selling the product at a price of 75-80 euros to H&M. there is high profitability in the business 20 Click to edit Master subtitle style proposal for both the companies as there is a high margin 20 per product. 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT .

KEY ISSUES •To convince and promote the European consumers about Indian ethnic wear. •Inflationary pressures on core areas across Europe are hitting the consumer’s ability to spend on discretionary areas.e. i. the ethnic garment should be compatible with the European weather and comfortable with consumers. •An expected downturn in consumer confidence across Europe will intensify competition for share of consumer spend. 21 21 Click to edit Master subtitle style . 10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT •The end products.

business culture and legal system can increase the risk of confusion and potential problems. . •There are risks of changes in exchange rates. 22 Click to edit Master subtitle style •Earning new and extra profits through extra sales.RISKS & REWARDS 10/21/2009 10/21/2009 RISKS: •Dealing with a different language . CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT REWARDS: •Capturing the new niche market of Germany and its neighboring countries. •Sometimes extra delay of delivering the goods to H&M can increase our financial burden. 22 •Establishing brand value through double tagging.

10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT YOU THANK 23 23 Click to edit Master subtitle style .

10/21/2009 10/21/2009 CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT 24 24 Click to edit Master subtitle style .

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