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----------------------------------------------------------

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FABINDIA

We Are..

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fabindia

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

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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. To provide products that differentiates fashion in Europe.
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Why In Germany ??

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PRODUCTS THAT FAB INDIA PLANS TO EXPORT

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POTENTIAL PARTNERS FOR FABINDIA IN EUROPE

Inditex Group Gap Inc Hennes & Mauritz
H&M

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COMPETITOR ANALYSIS
Inditex Group 1-yr sales growth 1-yr net income growth No. Of countries they operate 4.4% 13.1% 73 Gap Inc. 7.8% 16.1% 44

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11.4% 11.8% 34

Stores in Various Countries

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Worldwide Germany Austria Netherlands Sweden

Click Inditex Group to edit Master subtitle style Gap Inc.

4430 73 12 23 10 3465 -

H&M 1800 346 61 98 156

H & M: Hennes & Mauritz AB (operating as H&M), is a Swedish clothing company, known for its fast fashion clothing offerings for women, men, teenagers and children. H&M has more than 1,800 stores in 34 different countries

Insights

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Headquarters: Stockholm Area, Sweden Industry: Retail Type: Public CompanyStatus: Operating 77 Click to edit 53,430 employees Company Size: Master subtitle style 2006 Revenue: 68,400 mil [SEK] (12%) Founded: 1947 Website: http://www.hm.com

WHY H&M?
Gap Inc. Has no stores in the above mentioned European countries. Although Inditex is one of the worlds largest apparel retailers, comprising of 4430 stores worldwide, but it has only 73 stores in Germany, 12 in Austria,23 in Netherlands, and 10 in Sweden. Though H&M has only 1800 stores worldwide but number of stores in Germany(346), Austria(61), Netherlands(98), & Sweden(156) are much greater in comparison to Inditex. H&M holds the maximum market share in Germany in the Apparel Sector. Annual sales growth of H&M was recorded to be Click to edit Master subtitle style 11.4%, much higher to that of Inditex(4.4%) and Gap Inc.(7.8%) Germany is H&Ms #1 market accounting for about 25%of its sales.

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Companies and their products export to EUROPE Name of the Company Export Market
Uzma international (China) Ronak Weaving/ Garments (Surat, INDIA)
European Market

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Product Export
Silk dresses, Silk tops, Silk skirts, Silk kurties, Silk trousers, Silk stoles, Silk wrap tops, Silk kaftans, Silk dusters

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Europe, America, Bangladesh, Australia, 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

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Georgette Fabric Chiffon Fabric Crepe Fabric Satin Fabric Fashion wears, Mens wear, women's wear, swim wear, Beach wears, Children wear, Fashion Accessories like stoles, hand bags, scarves Etc.

Fabindia S.W.O.T. Analysis

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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- 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

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Opportuniti es

Threa ts

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P.E.S.T. Analysis

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Production Details

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All the necessary production will be done in India. There are 22,000 small sources from rural areas in 12 Click to edit Master subtitle style 12 India. Top four states of sources in India are Andhra Pradesh, Uttar Pradesh, Gujrat, and Rajasthan. Technical persons are more available in India rather

TARGET MARKET
Ours is a niche market comprising of: Indians & also Asians residing in Germany Experimenters in Germany Socio-Cultural Party-Goers

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Total Ethnic Minority population 19512001, in millions and percentage of GB population year per cent 1951 0.4 1961 1.0 1971 2.3 1981 3.9 1991 5.2 2001 7.9

Logistics
TOP FIVE LOGISTICS COMPANIES IN INDIA

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TNT

AFL

DHL

BLUE DART

GATI

Why TNT ???

It is Indias best logistics provider . It operates in 200 countries world wide. It provides many categories of logistics services such as 9:00 Express, 10:00 14 Express, 12:00 Click toEconomy Express, and Special Priority Express. Express, edit Master subtitle style TNT ensures that our parcels, documents and freight items are delivered safely 14 and on time throughout the world. 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.

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Pricing & Product

PRICING OF PRODUCTS BY COMPETETORS Category Ranging from (uzma)E11.99 Kids wear E9.99Men Ladies SHERWANIS- E111.11 E 6.99 KURTAS- E 5.99 SALWARS-E 9.99 E49.99 SAREES- E5.99 E69.99

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Our Pricing Strategy: Skimming approach to cater to the needs of a niche market.

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PRODUCT MENS WEAR Long kurtha Short kutha Pituk silk mutka WOMENS WEAR Chudidar Sarees 15 girls Click Top ACCESORIES Purse jewlerry

RANGE 12 - 19 7 - 11 31 - 47

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14 - 21 24 subtitle 38 style 12 - 16 26 - 40 10 $37428- 80

The per capita income of germany is The per capita income of U.S.A is $41209 And so we have used prices similar to that of U.S.A in GERMANY

Promotion German Garment sectors Promotion Strategy

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PLACE
Largest German and non-German ethnic groups

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RHINE RUHR (METROPOLITAN REGION)

RHINE RUHR (METROPOLITAN REGION): COLONG is the largest city of the Rhineland, the very Western part of Germany. Its very famous, Particularly among young Germans, Cologne and Dsseldorf are known for its nightlife and openminded atmosphere. Rhinelanders, Westfalians and others Turks, Poles, Italians, Dutch, French, Arabs, Iranians, South Asians like Indians, and Japanese (Google) Rhine Ruhr will be our target market because it has the heighest number of Indians and Asians. 17 Click to edit Master subtitle style The age distribution in germany: 17 014 years: 13.9% (male 5,894,724/female 5,590,373) 1564 years: 66.3% (male 27,811,357/female 26,790,222)

Financial Aspects of Fabindia and H&M

Projected Profit and Loss New Look is in the early stage of development, thus initial projections have
only been made on accounts that are believed to most drive the income statement.

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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. This fund is more than enough for H&M for taking the risk of new FABINDIA ventures. 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 5245.48m Net 19 profit was SEK 13588 m equivalent to EUR 1305.69m. 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.

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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. 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. In this manner, 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.

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KEY ISSUES
To convince and promote the European consumers about Indian ethnic wear. Inflationary pressures on core areas across Europe are hitting the consumers ability to spend on discretionary areas. An expected downturn in consumer confidence across Europe will intensify competition for share of consumer spend.

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The end products, i.e, the ethnic garment should be compatible with the European weather and comfortable with consumers.

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RISKS & REWARDS

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RISKS:
Dealing with a different language , business culture and legal system can increase the risk of confusion and potential problems. Sometimes extra delay of delivering the goods to H&M can increase our financial burden. There are risks of changes in exchange rates.

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REWARDS:
Capturing the new niche market of Germany and its neighboring countries. 22 Click to edit Master subtitle style Earning new and extra profits through extra sales. 22 Establishing brand value through double tagging.

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YOU THANK
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