Arvind Brands’ Competitive Position in the Indian Branded Apparel Market

Presented By:

Abhishek yadav(luck)-03
DFMRM-09/02 To----zebrra

Introduction Apparel Industry Analysis of Arvind’s Brand Portfolio Arvind’s Competition Growth Strategies SWOT Analysis PORTERS FIVE FORCES Analysis Branding Strategies Issues Conclusion

Established in 1931 by the Lalbhai brothers of Ahmedabad.
 Birth of three new units in 1993 - textile, telecom and garments division.  Arvind Brands Ltd was a Rs. 3.50 million subsidiary Arvind Mills Major stakeholder - ICICI , 2004. Arvind Mills reacquired ICICI’s stake by raising US$ 37.19 million Arvind Brands became 100% subsidiary of Arvind Mills in 2005.

Competitive edge-zero excise duty and economies of scale . Plans to sustain growth by increasing retail presence.INTRODUCTION All the brands under the Arvind name were growing at a healthy rate in 2004. Strategy was increasing distribution and penetration. Saif Ali Khan appointed brand ambassador for the Newport brand in 2005.

THE BRANDED APPAREL INDUSTRY Multi fibre agreement Characteristics of the industry. Raymonds and Pantaloons. Major players-Bombay Dyeing . Growth of the industry. Important segments-jeanswear Important trends in the industry. .


Parameters to judge portfolio Maximizing brand equity : one brand should not harm others. . targeting and positioning of brands. Segmentation. Branding strategy according to breadth and depth.

Breadth of branding strategy The number and nature of different products linked to the brands sold by a firm. Depends on: •Aggregate market factors •Category factors •Environmental factors .

Depth of a branding strategy Number and nature of different brands marketed in the product class sold by a firm. Helps in •Increase shelf presence and retailers dependence •Attract consumers seeking variety •Increase internal competition Golden rule : Maximize coverage and minimize Brand overlap .

Arvind Brand Basket Flying Machine Newport Launched Age group Price range Difficulties faced Retailer Brand ambassador Tag Line 1980 15-30 500-1000 1993 18-28 300-500 Ruf n Tuf 1997 15-30 299-699 Excalibur 1995 18 & Above 500-1000 ---- Hike in exise to Hike in exise to Distribution 8% 8% hurdle own outlet Abhishek Bachchan Who Needs Phoren? own outlet Saif Ali Khan The Measure of Success Big Bazaar Akshay kumar ---- ------- .

men’s Jeanswear. VF corporation peabody & co.International Brands Arrow Licensed Lee Wrangler VF corporation Tommy Hilfiger JV with Murjani group 18 & Above Introduced men’s sportswear.. USA 27-35 Four sub brand •Classic •Premium •Urban •Sports 4-14 & 17-25 Adjudged the images fashion award “most admired Jeanswear” brand Age group specifics 17-25 &25-40 •Fashion conscious •Love wearing denim on weekend •Retail ambience was given importance . junior Jeanswear Cluett.

To attract different segments by heterogeneous mix.Why so many brands ? Aggressive strategy to verticalize its operations. . Vision of largest apparel brands. Facilitate new brand acceptance Reduce risk perceived by customers Improve efficiency of marketing.

Competition .

Major Competitors Of Arvind Brands .

and several others. A flagship company of the A V Birla Group Company. Tommy Hilfiger. Allen Solly. Peter England.Marks and Spencer’s. Elements and SF (San Frisco). Owns perpetual license for premier brands like – Louis Philippe. Van Heusen.Madhura Garments It’s was the garment division of Indian Rayon and Industries Ltd. Preferred global supplier of international brands like. . Ralph Lauren. Byford. It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town. Polo.

Brand Portfolio of Madura Garments .

(RAL) ranks amongst India's largest and most respected apparel companies They provide the best of fabric and style through some of the country’s most prestigious brands – Raymond Finely Crafted Garments.RAYMOND APPAREL LTD A 100% subsidiary of Raymond Limited. ‘The Raymond Shop’ retail outlets and multi-brand outlets across India and the Middle East . Raymond Apparel Ltd. Parx. Notting Hill and Zapp! All of Raymond’s brands are available at exclusive brand stores. Manzoni. ColorPlus. Park Avenue.


Within an year Indus League had transformed itself from a new entrant into a company that has launched two fashion brands namely Indigo Nation and Scullers Indus-League has a portfolio of Three proprietary brands . Scullers and Jealous covering different segments of the fashion market.. .INDUS LEAGUE Indus-League Clothing Ltd. was founded on 14th April 1999 by a team of eight top-flight management professionals from the clothing industry. These professionals have established a reputation for creating and building some of the most successful fashion brands in South Asia and the Middle East.Indigo Nation .

Levi Strauss & Co.LEVI STRAUSS & CO.  Founded in 1853 by Bavarian immigrant Levi Strauss. Red Tab and Red Loop . is one of the world's largest brand-name apparel marketers with sales in more than 110 countries  In 2009 it completed 15 years in India  It expanded its portfolio from being a jeans only brand to emerge as the complete casual wear brand  4 sub-brands Sykes. 501.

Levi Strauss’s Brand Portfolio .

BAGS . Globus. The brand is retailed through selective stores in the country and leading National Chain Stores like Shopper's Stop. Lifestyle.PROVOGUE The Company was incorporated on November 11. T-SHIRT . JACKETS & BLAZERS . FRAGRANCE . DENIM . CAPS. Westside etc. 1997 as Acme Clothing Private Limited. Provogue is also retailed through a chain of exclusive brand outlets called "Provogue Studio" PROVOGUE’S PRODUCT RANGE INCLUDE: INNERWEAR . LINEN SHIRTS . More importantly. Provogue stands for fashion and not pure apparel. BOTTOMS . FORMAL SHIRTS . Its designs are contemporary and cutting edge Provogue’s brand statement “ Redefining fashion” and its innovative merchandise have created a niche in the minds of its consumers. BELTS . FOOTWEAR . CASUAL SHIRTS. SUNGLASSES .

Focus on retail------Company want to achieve 80% of its sales through apparel.ARVIND’S GROWTH STRATEGY As on 2005. Arvind was in a comfortable position. Change from Centralization to Decentralization Clustering of Brands .

ARVIND’S GROWTH STRATEGY( .com Tie ups with and rediff.) Globalization Strategy • Acquiring rights of Reds in North and south America • Exclusive stores in Gulf to showcase its brands Launching of Spectrumplaza..

SWOT ANALYSIS STRENGTHS  Strong portfolio of domestic and international brands  Economies of scale through complete integration Latest manufacturing tools  Wide geographical presence WEAKNESS Lack of fresh ideas  Presence in only big cities  Not doing enough to build brand equity .

Bangladesh  Excise duty . Bombay Dyeing. Thailand.OPPORTUNITIES Changing retail scenario Rapid growth in age group of 15-44 years Ability and willingness in India THREATS Competitors like Raymond. Madura Garments Cheap imports from China.


COMPETITIVE RIVALRY Huge number of competitors Competitors adopting aggressive growth strategies as well as eyeing top cities Stiff competition from small town stores and specialty stores .

THREAT OF NEW ENTRANTS Lucrative market for international brands Low entry barriers in unorganized retail sector .

personal attention • Growth in online shopping .THREAT OF SUBSTITUTES • Plenty of offerings in premium and super premium category • Small town stores – proximity. home delivery.

BARGAINING POWER OF SUPPLIERS Increased no of players increases bargaining power of suppliers Not all companies have complete integration (like Arvind) .

BARGAINING POWER OF CUSTOMERS Low switching costs Low customer loyalty .

In-House Brands: Newport. Individual Brands . Arrow.BRAND HIERARCHY Corporate or Company Brand: Arvind Mills Family Brand: Arvind Brands Ltd. Ruf n Tuf Modifier: Leesures by Lee The apparel industry did not follow the umbrella branding strategy Arvind divided its brands into 4 clusters and each cluster had its distinct marketing strategies . Tommy Hilfiger . Wrangler.Licensed Brands: Lee.

target audience and positioning is very similar to its competitors.POP & POD Points of Parity Points of Difference • are the attributes or benefits which the brand shares with other brands • are the USPs of a brand. Arvind’s POD’s are not well defined. . Their offering. distinct from others In this case.

CHANNEL STRATEGIES Indirect Channels • ex. Company-owned stores Arvind was shifting its focus from multi brand and small town stores to company-owned stores . Multi brand store. small town retailers Direct Channel • ex.

PUSH & PULL STRATEGIES Pull Strategies • are the ones directed towards end consumers ex. Push Strategies weren’t required as they were concentrating on company-owned stores . Television ads Push Strategies • are directed towards distributors and retailers. endorsements by Bollywood stars like Akshay & Saif. Ex. Trade discounts Arvind mainly concentrated on Pull strategy ex.

Brand Endorsement: associating a popular figure as the brand ambassador to give the brand a personality and strengthen its positioning ex. which manufactured fabrics. wallets etc. Forward Integration: Arvind Mills.OTHER CONCEPTS Brand Extension: when different products are manufactured under same brand name. jeans and accessories like belts. integrated vertically forward by launching its in-house brands and retail stores. Arrow started off as a shirts-only brand then diversified into casuals. Action star Akshay Kumar was roped in to endorse Ruf n Tuf to give it a tough & rugged look. Ex. .

ISSUES Lack of new ideas Inability to keep up with the changing market demands Unwilling to place its products in multi-brand stores thereby losing customers in the tier-II. tier-III cities Tough competition from local and international players Just one offering for the bottom of the pyramid (Ruf n Tuf) .