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10/21/2009

FABINDIA

1

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

              fabindia

Our Mission Mission: Our Endeavour is to provide customers 
with hand crafted products  which help support  2 and encourage good craftsmanship.

10/21/2009

10/21/2009 3 . •To increase sales and profits through exporting our products to our European partners.GOALS AND  OBJECTIVES •To capture and establish a niche market in Germany. •To provide products that differentiates fashion in Europe.

Why In Germany ?? 10/21/2009 4 .

PRODUCTS THAT FAB  INDIA PLANS TO EXPORT  10/21/2009 5 .

4% 13.1% 73 Gap Inc Gap Inc. Of countries they operate H&M 11. 7.POTENTIAL PARTNERS FOR  FABINDIA IN EUROPE Inditex Group Inditex Group 4.8% 34 Stores in Various Countries Worldwide Germany Austria Netherlands Sweden Inditex Group 4430 73 12 23 10 Gap Inc.8% 16.1% 44 Hennes & Mauritz 10/21/2009 COMPETITOR ANALYSIS 1-yr sales growth 1-yr net income growth No. 3465 H&M 1800 346 61 98 156 6 .4% 11.

400 mil [SEK] (12%)  Founded: 1947 7 .Insights… 10/21/2009 mpany. known for its fast fashion clothing offerings for women. Sweden Industry: Retail Type: Public  CompanyStatus:Operating Company Size: 53.430 employees 2006 Revenue: 68. men Headquarters: Stockholm Area.

 much higher to that of Inditex(4. comprising of 4430 stores worldwide.8%) about 25%of its sales. Netherlands(98).  be 11.  apparel retailers.4%) and Gap Inc. 8 . but it has only 73 store  but number of stores in Germany(346).(7.4%.WHY H&M? 10/21/2009 d European countries. Austria(61). & Swed ermany in the Apparel Sector.

America. and all other capital Garments (Surat. Ronak Weaving/ Australia. Silk kurties.Companies and their  products export to EUROPE Name of the Company Export Market Product Export 10/21/2009 European Market Uzma international (China) Europe. Silk skirts. scarves Etc. INDIA) USA. Children wear. 9 . Silk Georgette Fabric stoles. hand bags. Men’s wear. Silk wrap tops. Silk kaftans. LADIES KURTIS DESIGNER SAREES women's wear. Silk tops. Silk trousers. Chiffon Fabric Silk dusters Crepe Fabric DESIGNER SALWAR KAMEEZ Satin Fabric LEHNGA CHOLI Fashion wears. Beach HOME FURNISHING wears. swim wear. European Countries markets Shubhangi Overseas Silk dresses. Fashion Accessories like stoles. Bangladesh.

 Analysis  Differentiable products   No specific promotions   Brand recognition and loyalty strategy   Diverse product mix   Limited channels of business   Partnering with suppliers    Sourcing strategy skewed towards supp  In­ house manufacturing   Inconsistent quality of   Price Trends Setter   Products    Different categories of stores   Inconsistent service in   Customer Loyalty  stores  10/21/2009  Substitute producing competitors  Not  in  touch  with  Fashion Trends       Opportuniti es Threa ts Weakness es Strengt hs  In  store  merchandising  &  navigation   Promoting e­business channel     Organic foods market   Customer acquisition strategies 10 .W.Fabindia S.O.T.

 Analysis 10/21/2009 11 .P.S.E.T.

 and Rajasthan ical persons are more available in India rather than Germany for the production of ethn n’t be setting up our manufacturing units in Germany.Production Details 10/21/2009 e necessary production will be done in India. Uttar Pradesh. are 22. ur states of sources in India are Andhra Pradesh. 12 .000 small sources from rural areas in India. Gujrat.

9 13 10/21/2009 .3 1981 3.4 1961 1.9 1991 5. in millions and percentage of GB population year per cent 1951 0.2 2001 7.0 1971 2.TARGET MARKET Ours is a niche market comprising of: •Indians & also Asians residing in Germany •Experimenters in Germany •Socio-Cultural Party-Goers Total Ethnic Minority population 1951–2001.

  nd day definite express delivery services in 200 countries. and Special Priority Express ight items are delivered safely and on time throughout the world. 10:00 Express.  uch as 9:00 Express. Economy Express. 12:00 Express.Logistics TOP FIVE LOGISTICS COMPANIES IN INDIA TNT AFL DHL BLUE DART GATI 10/21/2009 Why TNT ???  200 countries world wide. TNT has built our reputation on a record 14 .

€ 16 € 26 .99 SHERWANIS.99 Kid’s wear PRICING OF PRODUCTS BY COMPETETORS (uzm 10/21/2009 Our Pricing Strategy: Skimming approach to cater to the needs of a niche m PRODUCT MENS WEAR Long kurtha Short kutha Pituk silk mutka WOMENS WEAR Chudidar Sarees Top girls ACCESORIES Purse jewlerry RANGE € 12 .€ 38 € 12 .99 – E69.€ 80 The per capita income of germany is $37428 The per capita income of U.99 – E49.E5.E11.A is $41209 And so we have used prices similar to that of U.99 SAREES.€ 21 € 24 .11 – E 6.99 SALWARS-E 9.S.Pricing & Product Category Men Ladies Ranging from E9.€ 19 € 7 .€ 47 € 14 .€ 40 € 10 .E111.99 KURTAS.A 15 in GERMANY .E 5.S.€ 11 € 31 .99.

Promotion German Garment sector’s Promotion  Strategy 10/21/2009 16 .

3% (male 27. Italians. Cologne and Düsseldorf are known for its nightlife and op ans and others Turks.  ularly among young Germans. the very Western part of Germany.348) 17 .542.790.PLACE Largest German and non­German ethnic groups RHINE –RUHR (METROPOLITAN REGION) 10/21/2009 TROPOLITAN REGION):  city of the Rhineland.357/female 26. Poles.373) 6. Arabs.590.724/female 5.222)  ver: 19. South Asians like r target market because it has the heighest number of Indians and Asians.894. Iranians.8% (male 6. Dutch. germany: 9% (male 5. French.811.771.972/female 9.

Financial Aspects of Fabindia and  H&M 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. Projected Profit and Loss 18 10/21/2009 .

Financial aspects of Fabindia and  H&M 10/21/2009 aside for further expansions.69m. h the companies are in a sound financial position in order to enter into a partnership 19 .48m 305. This fund is more than enough for H&M for taking the ris nt to EUR 5245.

xtra costs of exports by a margin it gets by selling the product at a pri gh profitability in the business proposal for both the companies as the 20 .nancial aspects of Fabindia and H&M 10/21/2009 f a garment as per the present market prices is round about 50 to 65 at the prevailing normal garment prices of 100 euros.

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

•Establishing brand value through double tagging. 10/21/2009 REWARDS: 22 •Capturing the new niche market of Germany and its neighboring countri •Earning new and extra profits through extra sales. s in exchange rates. business culture and legal system can increase the risk of con delivering the goods to H&M can increase our financial burden. .RISKS & REWARDS RISKS: language .

10/21/2009 THANK    YOU 23 .

24 10/21/2009 .

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