Project on Business Model of THE ARCH BIRD

By :
Shivam Kapoor
A3923015031
BBA +MBA
4th Semester
The Arch Bird
 About us

The arch bird is a bespoke shoe company which focusses on production of finest quality
leather shoes made by craftsmen with decades of experience, knowledge and passion to make
its products standout amongst all. The arch bird uses finest quality of leather imported from
best of leather production countries in order to make the perfect shoes needed by customers.
The arch bird is determined to bridge the gap between price and premium quality in leather
shoe industry. Our aim is to democratize bespoke luxury by ensuring that custom crafted
shoes are within reach for the modern man.
 Indian Leather Industry

The leather industry occupies a place of prominence in the Indian economy in view of its massive potential for
employment, growth and exports. There has been an increasing emphasis on its planned development, aimed at
optimum utilisation of available raw materials for maximising the returns, particularly from exports. The exports of
leather and leather products gained momentum during the past two decades.
The leather industry has undergone a dramatic transformation from a mere exporter of raw materials in the sixties to
that of value added finished products in the nineties.

The major production centres for leather and leather products are located at Chennai, Ambur, Ranipet, Vaniyambadi,
Trichi, Dindigul in Tamil Nadu, Calcutta in West Bengal, Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore in
Karnataka, Delhi and Hyderabad in Andhra Pradesh.
 Raw Material Supplies

There exists a large raw material base. This is on account of population of 194 million cattle, 70 million buffaloes, 95

million goats. According to the latest census, India ranks first among the major livestock holding countries in the world. In

respect of sheep with 48 million sheeps, it claims the sixth position. These four species provide the basic raw material for

the leather industry.

 Features

PURE LEATHER : The Arch Bird uses only genuine leather in the process of manufacturing shoes. Pure leather
is used to provide the customer with maximum durability and comfort. The Arch Bird always
focus on maximum customer satisfaction hence providing the customer with value for money.

HANDCRAFTED : All the shoes at The Arch Bird are made by craftsman with decades of experience, passion and
hard work to provide outstanding level of finishing and product durability in order to provide
customers the finest quality of shoes.

Patina also referred as hand painting is the artistic colouring of footwear and leather items and
HANDPAINTED : it is entirely handmade. It is performed on neutral-coloured leather, which is then painted with
different colours to achieve the desired final result .A technique first mastered in France and
Italy, it has over the years become a proud staple of the shoe industry.
 Types of Leather

Calfskin Leather
This is the one of the most used leather for any kind of footwear. This leather is made from the skin of young cattle

generally not more old than three to four weeks. Most people, both men and women, want quality grade shoes that

should be made of calfskin leather. That is why shoes made of prime choice calfskin is generally more expensive, these

are about twice as expensive as the price of the regular side leather. Compared to other leathers, calfskin comes with the

finest, firmest and the most beautiful grain when finished. And it is very easy to clean and shine too.
Brush off leather

Brush of leather is the leather which is characterized by a layer of dye which is hand brushed with precise and craft movements,

these are glossy in nature. This type of leather is usually used to define strokes in a shoe.

Suede
Suede leather is the leather made from the underside of the skin, primarily from lamb, goat, calf and deer are commonly used.
Suede does not include the tough exterior skin layer, suede is less durable type of leather but is softer than standard full grain
leather. Its softness, thickness, and pliability make it suitable for clothing and these are about twice as expensive as the price of
the regular side leather. Compared to other leathers, calfskin comes with the finest, firmest and the most beautiful grain when
finished. And it is very easy to clean and shine too.
Patent leather 
Patent leather is a type of coated leather that is very glossy with shiny finish. The coating process was introduced in United
States and improved by inventor Seth Boyden of Newark, New Jersey in 1818, with manufacture beginning in September 20,
1819. Boyden process, which he did not patent, used a oil based lacquer coating. Modern patent leather generally had a plastic
coating.

Crust

The leather that is tanned but not finished. Such leathers are referred to as being "in the

crust."
INTRODUCTION TO RED TAPE

Red Tape”is a brand known for its unparalleled Comfort, International Styles and Finesse. It is the brand 
for”Hi-Fashion & Lifestyle, owing to its unmatched quality, skilled craftsmanship and trendy products. 
Endorsed in the past by the style icon Salman Khan” Red Tape has become India’s most Loved Premium 
Lifestyle Brand.
Emerging as a leader in the High-End Fashion Footwear segment, the Footwear range is designed in our in-house design
studios in”UK and Italy, with manufacturing them to International Standard of Quality and Materials.
Red tape is a brand which is registered under Mirza International Ltd. Which was founded by Mr.Irshad
Mirza and Mr. Rashid Mirza.

Having made a foothold in the footwear business, Mirza International quickly reorganized itself by setting up 
in-house design and development studios, marketing office” and a strong distribution and logistics network. 
After”successfully reorganizing itself, the Company moved a step ahead of others by launching its own brands 
‘Red Tape’ and ‘Oaktrak’. Today,”Red Tape has emerged as the one of the most stylish lifestyle brands 
available. Through strong emphasis on quality, design and craftsmanship, the brand is highly successful in the 
mature western markets of UK and USA, apart from having a strong domestic market.
SWOT Analysis of RED TAPE

STRENGTHS
1.Design is the key”differentiator and it has top class designers working on the
designs in the fashion cities of the world
2.Since the parent”company Mirza is the manufacturer also, it can enjoy better
profit margins 
3.Stringent”international quality restrictions in manufacturing are followed
4.An international brand with present across the US, UK, France, Germany, West
Asia and South Africa.”It has a retail presence in 50 countries with production
facilities in over 26 countries
5.Exclusive stores,”hence the reach of red tape is now increasing
6. Contribution to environmental preservation and community wellbeing
 
WEAKNESSES

1. Foray into Apparel Industry which already has a very tough    competition

2. Offers Lower profit margins to the multi- brand retailers than the local brands also.

3. Designing is weak, Boring designs are leading to less Market growth.

OPPORTUNITIES

1.To leverage the success of Red Tape in shoes to apparel segment also and thus can make use of the extensive distribution channels that
it is now creating.

2. To introduce independent sub brands catering to middle class customers without brand dilution

3. Youth becoming more fashion conscious.

4. Increasing disposable incomes

THREATS

1. Foreign brands bring in”more competition

2. Local Brands with good”designs and higher profit margins for retailers may result in lesser shelf space for Red Tape

3. Cheap imitations/fake”products cause threat

4. New start-ups are becoming major reasons behind declining of sales.
How is New Start-ups Responsible for Declining in sales
of Repudiated brands?
In this modern era Start – ups are becoming a major
threat to established brands in the market. Only reason
behind these threats are youth working towards new
venture and bringing up a variety of choice in the market
rather than bringing up with same Ideas which
established brands used to do because of their monopoly
2016- 2015- 2014- 2013- 2012- 2011- 2010-
in the market. In footwear Industry the New Ideas are
PERFORMENCE 17 16 15 14 13 12 11
coming up in the market with new ventures like The Arch
Bird , Dapper Shoes , Aureno Shoes , Drish Shoes etc.
These newly established brands are more likely focussed
upon providing the customer the value for money as well
as to make the consumers aware about New trend of
footwear buying in the Market. Earlier these established
brands used to dominate the market by their used to
designs which a customer was forced to buy because of
unavailability of their choice. AMOUNT (In Crores)

If we study about the Annual Sales of already established

companies in India we would get to know that the annual 902.6 876.2 918.9 707.3 643.7 556.8 485.6
turnover of Brands like Red Tape and Red Chief has GROSS INCOME 9 4 9 5 3 5 9
declined.
In the Details below we can see the drastic change in sales
trend of Red Tape.

In the year 2015 – 16 the sales for Red – Tape got declined 
by 42.75 crore , whereas in the Financial Year 2016 -17 the 
sales Increased but were less than the Financial year 2014 – 
15.
The Company found in a survey that these small start – ups 
are now becoming threat to their established ventures due to 
that these brands started to lowers their price and capture 
the audience once again. It is expected that the company 
will make sales of 1000 crores in the financial year 2017 – 
18. 
Introduction to THE ARCH BIRD as Start –up

The arch bird is a bespoke”shoe company which focussed”on production of finest quality
leather shoes made by craftsmen with decades”of experience, knowledge and passion to
make its products standout amongst all. The arch bird uses finest quality of leather imported
from best of leather production countries in order to make the perfect shoes needed by
customers. The arch bird is determined to bridge”the gap between price and premium
quality in leather shoe industry. Our aim is to democratize” bespoke luxury by ensuring
that”custom crafted shoes are within reach for the modern man.
 Swot analysis of The Arch Bird

Strength
The major strength of THE ARCH BIRD lies in its customer friendly services.
THE ARCH BIRD focuses to provide best of customer services and the quality which in market cannot provide as compared on
prices of our products. THE ARCH BIRD tends to bridge the gap between price and premium quality handmade shoes. We aim
to democratize bespoke luxury by ensuring that custom handcrafted luxury is within the reach of common man.

Weakness
We have little market presence or reputation which directly or indirectly effects in the sales of our products. The Arch Bird is

an online portal and online portals requires higher rate of customers trust and reputation in the market in orders to reach

towards organisational goals. Online markets now a days faces a lot of competion in which only brands reputation can help for

the growth.
Opportunities

Rising potential in the domestic market

Growing fashion consciousness globally

Use of information technology and decision support software to help eliminate the length of the production cycle for different

products. Use of e-commerce in direct marketing

Threats

Major part of the industry is unorganised

Limited scope for mobilising funds through private placements and public issues (many businesses are family-owned)
Difficulty in obtaining bank loans resulting in high cost of private borrowing
 Pricing Strategies
 The Arch Bird shoes will be sold between the price segments of 4499-5999/- depending upon the leather type used for the

manufacturing of shoe.

 Shoes Made with calfskin leather is kept in the range of 5499/- because this raw leather is expensive than other leather types.

 Shoes Made with crust leather is kept in the range of 5999/- because crust leather is naked

leather and it requires a lot of talented artists and time to manufacture a single pair of shoe.

 Shoes Made with Brush off leather are kept in the 4999/- as the cost of raw leather is comparatively at lower side and the

leather is naturally dyed.

 Shoes Made with Black soft leather are kept in the range of 4499/- because soft leather is easily available and is generally at

lower prices as well.

 Our prices are all inclusive of taxes @ 14.5 % as well as delivery charges incurred on the transportation of goods to the

customer.

 These prices are set with the inclusion of promotional expenses , transportation cost from manufacturer to the seller , website

maintenance cost , returns expenses , and all miscellaneous expenses incurred at the time of selling.

 The Arch Bird is paying 14.5% as VAT. Which makes the shoe at cost of 5999 – 14.5% = 5129/- which means we are

providing shoes at the rate of 5129/- which is lowest in the same segment of any brand.

 After meeting all the expenses and government taxes The Arch Bird is left with the profits of 10-12% which help us to meet

our daily requirements.

The Arch Bird believes in selling customer satisfaction rather than earning money, hence we are keeping up with minimum
profits in order to fulfil your brand’s daily need.
 Unique Selling Proposition

The Arch Bird’s most unique part of their product is shoe aglets , we have introduced chrome aglets in the laces to make
the shoe feel more premium as well as more luxury . Aglets are referred to as tips of laces.

In terms of quality The Arch Bird uses double lining inside the shoe to make it more durable and breathable for long day

wearing.
These days shoe lace rings have been removed by other brands to make them more attractive but removing them reduce the
strength of shoes at the same time. The Arch Bird uses lace rings but inside the shoe coat which makes the shoe more attractive
as well as more durable.
The Arch Bird uses double cushioning in its shoes in order to make the foot more comfortable and reduces the risk of foot
sours.
 Future Expansion

In today’s market shoes being available in thousands of designs but still the customer has to come back with empty hands just

because he didn’t got what he wanted to have.

In the future The Arch Bird is planning to launch its own 3d designer panel in which we will be providing the customer with

power of developments.
The Arch Bird will be the INDIAS first company with the facility to design your own shoe in which customer will be his own
designer and will be designing his shoe on his own.
This 3d designer will work on step wise development program in which customer will be designing the shoe step wise. Each
step will be consisting of each detailing of shoe.
Step 1:

Select the mould:-

In this step , customer will be choosing his shape of shoe, mould is a wooden block on which leather is welted in order

to give the shoe the required shape.

we will be providing the customers with several shapes from which he will choose is preferred shape.

Step 2:

Select the part of design:-

In this step the customer will choose at which part he wants design on his shoe, it can be brogue double stitching etc.
Step 3:

Select the Design:-

In this step the customer will be choosing his design, the design here refers to the pattern he wants in his shoes. The 3d designer will

consist of 100’s of design to choose from.

Step 4 :

In the step the customer will be choosing its sole type i.e what kind of sole does he prefers

there are different kinds of sole rubber sheet shole , sheet sole , leather sole , rubber sole.

in this step customer will also be able to choose the heel size according to his comnforts.

Step 5:In this step the customer will be choosing his color combinations i.e what colors he wants on his shoes, the 3d designer will

have color combination pallet from which the customer will be choosing his colors.
Step 6 :In this step the customer will be able to decide his size and fitting shoes ,if the customer has broad foot all the

sizing will be taken accordingly and the shoes will be sent for processing after then.

Step 7 :In this step customer will be able to choose his lace colors and combinations, what kind of aglets he wants and

in what colors laces are to be made.

Step 8 :Finally the shoe design will be completed and the customer will move towards checkout page, after placing the

order the customer will be able to get the shoes within 15 – 20 days.

The shoe will be sent in proper packaging and accesories.

By this implementaion of system the customer will never have to make a search in the market but he will be able to get

his own shoe in same design what he wanted to have just in 7 steps of development.