E-Retail Vs Retail: Market Perspective for Men's Apparel Buying

Presented By: Neha Sharma

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OBJECTIVE
To provide qualitative insights to the Men's Apparels buyers in e-retail industry through comparison of key market indices of e-retail industry with that of retail (MBO Format) industry.

KEY METRICS OF COMPARISON:

Average MRP Conversion Rate Best selling brands Sales distribution between top-wear and bottom-wear
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PROJECT METHODOLOGY
Secondary Research to collect basic information of the apparel industry and key indices of comparison. Data Primary Research through questionnaires.150 male respondents Collection were chosen for survey,

Data Analysis

Through statistical tools in MS Excel

Data Validation

Data validation by interviewing experts who have worked in menswear category in both retail and e-retail industry.

Conclusions

Through comparison of data for e-retail with that of retail Through expert review

JABONG.COM ONLINE RETAILING OF FASHION PRODUCTS

Jabong.com is a Rocket Internet venture. Rocket Internet is fashion ecommerce business across several countries under various names with leadership positions

- Zalando in Europe www.zalando.co.uk - Dafiti in Brazil www.dafiti.com.br - Lamoda in Russia www.lamoda.ru

VALUE CONTRIBUTORS IN MENS APPAREL

Category Value Contribution (In Crores) 22210 26810 7850 10110 %Wise 33% 40% 12% 15%
Shirt 40% Suits,Jacket s & Blazers 15% T-shirt 12% Trousers 33%

Trouser Shirt T-Shirt Suits, jackets and blazers

This shows that shirts (40%) has maximum value contribution in menswear market, followed by trousers(33%).

VOLUME CONTRIBUTORS IN MENS APPAREL

Category Volume Contribution (In Pcs ) 25.1 crore
40.2crore 11.4 crore 2.1crore
Suits,Jack ets and Blazers 3% Trouser 32%

% Wise 32% 51% 14% 3%

T-shirt 14%

Trouser Shirt T-Shirt Suits, jackets and blazers

Shirt 51%

This shows that shirts(51%) has maximum value contribution in mens apparel market
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MENS TROUSER MARKET 2012

Compounded Annual Growth Rate -13 per cent.

Value Contribution, Volume Contribution and Average Selling Price of Mens Trousers in Mens Apparel Market
Value Volume Average Selling Price Rs 22210 crore 25.1 crore pieces Rs.884.86
Menswear Trouser Market 25% Menswear Market 75%

This shows that maximum consumers buy menswear at Rs.884.86

Mens Trousers contribute 25% in Menswear Market.

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Source: http://www.business-standard.com/india/news/kittrouser-market-for-men-in-india-2008/329846/

MENS SHIRT MARKET 2012

Compounded Annual Growth Rate -9 per cent. Value Contribution, Volume Contribution and average Selling Price of Mens Shirt in Mens Apparel Market Value Volume Average Selling Price Rs 26810 crore 40.2crore pieces Rs.666.91
Menswear Market 71% Men's Shirt Market 29%

This shows that average selling price in menswear is Rs.666.91

Mens Shirt Market contributes 29% in Menswear market.

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Source:http://www.business-standard.com/india/news/kit-shirts-market-for-men-in-india-2008/330414/

MENS T-SHIRT MARKET 2012

Value Contribution, Volume Contribution and average Selling Price of Mens T-Shirt in Mens Apparel Market Value Volume Average Selling Price Rs 7850 crore 11.4 crore pieces Rs.688.59
Menswear Market 90% Men's T-shirt Market 10%

This shows that average selling price in menswear is Rs.688.59

Mens t-shirt contributes 7% in menswear market.

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Source:http://www.businee-standard.com/india/news/kit-t-shirts-market-for-men-in-india-2008/330414/

MENS SUITS, JACKETS AND BLAZERS MARKET 2012

Compounded Annual Growth Rate-16 per cent.

Value Contribution, Volume Contribution and average Selling Price of Mens Suits, jackets and blazers in Mens Apparel Market Value Volume Average Selling Price Rs 10,110 crore 2.1 crore pieces Rs.4814.28
Men's Suits, Jacket and blazers Market 7%
Menswear Market 93%

This shows that average selling price in menswear is Rs.4814.28

Mens suits, jackets and blazers contribute 9% in menswear market.

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Source:http://www.business-standard.comindia/news/kit-men%60s-suits-jacketsblazers-market-in-india-2008/331756/

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PRODUCT PREFERENCE
Shorts Ethnic Wear 1% 7% Denims 15%

Trousers 1%

Shirts 16%

T-Shirts 60%

T-shirts are largest contributor to the Menswear Product Category that are purchased online (60%), Jeans/Denims (15%), Shorts/3-4th (7%), Ethnic wear (1%), Trousers (1%), and shirts and other sub-category form (16%) of product categories that are bought online. Wider range of options available on the online stores (particularly of latest designs and new brands), good deals and convenience seem to be the main drivers for online sales.

FIGURE:PRODUCT PREFERENCE

INFERENCE
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PREFERRED PRICE RANGE

Almost
More than Rs.3000 11%

half

of

respondents

have

purchased for goods in a range between

Rs.500Rs.1000 40%

Rs. 1000-Rs.3000, followed by Rs. 500Rs. 1000 (40%), and 11% have

purchased products that cost them more

Rs.1000Rs.3000 49%

than Rs. 3000.

Seemingly, people are reluctant to make

high value purchases.

FIGURE:PREFERRED PRICE RANGE

INFERENCE
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E-RETAIL VS. RETAIL

Based on the data collected, the following table shows comparison between retail and e-

retail market perspective of Mens Apparel Buying.

Average Selling Price

900

800
700

AVERAGE SELLING PRICE

600 500 400 300 200 100 0

Retail E-Retail

Rs.850
Rs.573.33

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FOCUS CATEGORIES

Suits,Jacket & Blazers 15% T-shirt 12% Trousers 33%

Shorts 7% Denims 15%

Ethnic Wear 1%

Trousers 1%

Shirt 40%

Shirts 16%

T-Shirts 60%

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RETAIL
The key brands are selected after interviewing experts.

E-RETAIL
These brands are arranged according to the responses collected through

Questionnaire survey.

UCB

Adidas Puma

KEY BRANDS

Allen Solly

Adidas
Louis Philippe Puma

Spykar
UCB Inkfruit

CONVERSION RATE

Retail-20% of footfalls

E-Retail-2% of website traffic

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Source: http://www.businessweek.com/smallbiz/content/aug2009/s b20090831 392103 page 2.html

E-RETAIL VS. RETAIL : FINDINGS

Average Selling Price in retail is Rs.850 and in e-retail is Rs.556.67. Conversion Rate in retail is 20% of footfalls and in e-retail is 2% of website traffic. The category in retail is shirts (40%) followed by trousers (33%) and in e-retail it is t-shirts (60%), followed by shirts (16%). The top-selling brands in retail are United Colors of Benetton, followed by Allen solly and Louis Philippe whereas in E-retail the top-selling brand is Levis, followed by Adidas.
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PRICE RANGE
Almost half of respondents prefer
Rs.800-Rs.1000 11% More than Rs.1000 3% Below Rs.500 39% Rs.500-Rs.800 47%

to purchase t-shirt in a price range

between Rs.500-Rs.800, followed

by a price range below Rs.500 (39%). 11% of the respondents prefer a t-shirt in a range of Rs.800-Rs.1000 whereas the remaining 3% fall under More than Rs.1000. category.

FIGURE: PREFERRED PRICE RANGE

INFERENCE
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BRAND
The top 5 brands according to survey are:

Fila 18%

Inkfruit 12%

PUMA 26%

ADIDAS 18%

UCB 26%

Puma United colors of Benetton Adidas Fila Inkfruit

FIGURE: BRAND PREFERENCE

INFERENCE
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COLOR
The top five preferred colors
White 9% Green 8% Black 32%

by respondents were: Black

Grey 24% Blue 27%

Blue Grey White

Green

FIGURE: COLOR PREFERENCE

INFERENCE
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TYPE OF T-SHIRT
Hoodie Pullover Hoodie Zipped 3% 6% Polo Neck 24% V-Neck 24% Crew Neck 43%

Crew Neck t-shirts (43%) are the most preferred type of t-shirt followed by Polo Neck (24%) and V-neck (24%).

FIGURE:STYLE OF T-SHIRT

INFERENCE
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STYLE OF T-SHIRT
Embroid ered 5% Solids 28%

More than half of the respondents

Dyed 5%

prefer printed t-shirts followed by solids (24%) and striped

Printed 52%

(24%).Embroidered and dyed tshirts are comparatively less in demand according to respondents of

Striped 10%

the survey.

FIGURE: STYLE OF T-SHIRT

INFERENCE
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TYPE OF PRINT
As we have seen that, more than

50% consumers prefer printed tCartoon 13%

Art 24% Slogans 24% Graphics 34%

shirts, so it is necessary to know about the kind of print preferred by consumers. 34% of the consumers like

graphics as a print, followed by

Photogr aphs 5%

slogans (24%) and art prints

(24%).13% like cartoon prints and

5% prefer photographs as prints.

FIGURE: TYPE OF PRINT

INFERENCE
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SIZE
S 3%

XL 23%
L 23% M 51%

Medium size t-shirt is preferred by 51% of the respondents followed by large size (23%) and extra large size (23%).

FIGURE: SIZE PREFERRED

INFERENCE

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SLEEVES PREFERRED
Long Sleeve 13%

87% of respondents prefer short sleeve t-shirt whereas only 13%

Short Sleeve 87%

prefer long sleeve t-shirt. None of the respondent of the survey prefers sleeveless t-shirt.

FIGURE: SLEEVES

INFERENCE

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CATEGORY
Sports wear, 15% Work wear,5% 80% of the respondents prefer casual wear t-shirts, followed by sportswear Casual wear, 80% (15%) and work wear (5%).

FIGURE: CATEGORY

INFERENCE
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T-SHIRT ANALYSIS-JABONG TREND

TOP COLORS
The top five preferred colors by
RED 9% WHITE 18% BLACK 28%

respondents were:

1. Black
2. Blue

GREY 18%

3. Grey
BLUE 27%

4. White 5. Red

FIGURE:TOP COLORS

INFERENCE
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TOP BRANDS
The top brands according to
ADIDAS 13% ANGRY BIRD 11% PUMA 32%

survey are:
1. Puma 2. United colors of Benetton 3. Fila
FILA 22%

UNITED COLORS OF BENETTON 22%

4. Adidas 5. Angry Bird

FIGURE:TOP BRANDS

INFERENCE
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SIZE
S 14% XL 18%

M 37%

Medium size t-shirt is preferred by

37% of the respondents followed by

large size (31%) and extra large size
L 31%

(18%).

FIGURE: SIZE

INFERENCE
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CATEGORY
SPORT & ADVENTURE 8%

FORMAL 10%

82% of the respondents prefer casual wear t-shirts, followed by formalwear

CASUAL 82%

(10%) and sportswear (8%).

FIGURE: CATEGORY

INFERENCE

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PRICE POINTS
Rs.800Rs.1000 11% Above Rs.1000 5%

62% of respondents prefer to purchase t-shirt in a price range

Rs.500Rs.800 22%

below Rs.500; followed by a price

BELOW Rs. 500 62%

range between Rs.500 to Rs.800(22%),Rs.800 Rs.1000 (11%) and above Rs.1000 (5%).

FIGURE: PRICE POINTS

INFERENCE
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CONSUMER TREND VS.JABONG TREND

CONSUMER TREND JABONG TREND
RED 9% Black 32% Blue 27% WHITE 18% GREY 18%

COLOR
White 9% Green 8%

BLACK 28%

Grey 24%

BLUE 27%

BRANDS
Fila 18%
Inkfruit 12% PUMA 26%

ADIDAS 13% ANGRY BIRD 11% UCB 22% PUMA 32%

Adidas 18%

UCB 26%

FILA 22% 36

SIZE
XL 23% L 23%

S 3%
XL 18%

S 14%

M 37%

M 51%
L 31%

CATEGORY

Sports wear, 15%

Work wear, 5%

Formal 10%

Sport & adventure 8%

Casual wear, 80%

Casual 82%

PRICE POINTS

Rs.800-Rs.1000 More than Rs.1000 11% 3% Below Rs.500 39% Rs.500-Rs.800 47%

Rs.800Rs.1000 11%

Above Rs.1000 5%

Rs.500Rs.800 22%

BELOW Rs. 500 62%

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RECOMMENDATIONS

Based on the research so far, one sample buy plan for T-shirts was created to encapsulate all the findings so far, some of which are highlighted below: Casual wear graphic printed T-shirts constitute the majority of the online T-shirt purchase

Customers mostly buy T-shirts between Rs.500- Rs.800.

Crew Neck short sleeved T-shirts are most popular

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 Buyers should keep 80% of casual wear t-shirts in total t-shirts category. If the buyers have to order in cut sizes, they can order more number of units of medium size t-shirt, as maximum number of consumers prefer to

buy medium size t-shirts.

Top 3 colors are

Black
Blue Grey

BUY PLAN

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CONCLUSION
Conclusions are derived through comparison of key market indices of e-retail industry with that of retail industry and in order to provide qualitative insights to Men's Apparels buyers in e-retail industry Buyers shifting from retail to e-retail industry, and,

New-comers in the retail and e-retail industry which can help in taking
buying decisions
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SUGGESTIONS :AFTER COMPARING JABONG.COM WITH OTHER E-RETAILING SITES

Tie-up with caf coffee day.- Dealsandyou.com. Awareness by messaging consumers and giving them daily update, whats new, sales/discounts.- Fashionandyou.com. Queries should be answered as soon as possible in order to build trust among consumers and for that an online chat facility can be made available on the website, so that consumers can ask about their queries.lenskart.com

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 Online Community-The following model shows the process of creating an online community. -Inkfruit.com

Jabong.com

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To increase the visibility or reach of Jabong.com and to advertise the IPL T-shirts on Jabong website ,t-shirts can be named as Adidas Pune Warriors T-shirts. Jabong.com

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