100 100 0 - india retailing book storecase study 124 capillary drives crm for benetton capillary...

IMAGES MULTIMEDIA PVT. LTD. (CIN: - U22122DL2003PTC120097)

REGISTERED OFFICE: S 21, Okhla Industrial Area, Phase II, New Delhi 110020Ph: +91-11-40525000, Fax: +91-11-40525001 Email: [email protected], Website: www.imagesgroup.in

MUMBAI: 1st Floor, Panchal Iron Works, Plot No. 111 / 3, Marol Co-Operative Industrial Estate, Marol, Andheri (East), Mumbai 400059 Ph: +91-22- 28508070 / 71, Fax: +91-22-28508072

BENGALURU: 523, 7th Cross, 10th Main, (Jeevanbhima Nagar Main Road), HAL 3rd Stage, Bengaluru 560 075 Ph: +91-80-41255172/41750595/96, Fax: +91-80-41255182

KOLKATA: 30-B, Anil Roy Road, Ground Floor, Kolkata 700 029Ph: + 91-33-40080480, Fax: +91-33-40080440

DELHI Jayant Arora, Sr. Manager [email protected], Mob.: +91 9818626724

MUMBAI Waseem Ahmad, Vice President & Branch Head [email protected], Mob.: +91 9833628852 Manjusha Solanki, Dy. Manager [email protected], Mob.: +91 9833992161

KOLKATA Piyali Oberoi, Assoc. Vice President & Branch Head [email protected], Mob.: +91 9831171388 Avishek Mukherjee, Manager avishek [email protected], Mob.: +91 9830260612

BENGALURU Suvir Jaggi, Assoc. Vice President & Branch Head [email protected], Mob.: +91 9611127470 AHMEDABAD Pankaj Vyas, Manager

[email protected], Mob.: +91 9909977088

LUDHIANA Hemant Gupta, Associate [email protected], Mob.: +91 9814019745 All material printed in this publication is the sole property of Images Multimedia Pvt. Ltd. All

printed matter contained in the magazine is based on the information provided by the writers/authors. The views, ideas, comments and opinions expressed are solely of the writers/authors or those featured in the articles and the Editor and Printer & Publisher do not necessarily subscribe to the same.

Printed & published by S P Taneja on behalf of Images Multimedia Pvt. Ltd. Printed at Swan Press of Lahore, B-71, Naraina Industrial Area, Phase – 2, New Delhi 110028 and published by S P Taneja from S- 21 Okhla Industrial Area Phase – 2, New Delhi.110020 Editor : Amitabh Taneja

In relation to any advertisements appearing in this publication, readers are recommended to make appropriate enquiries before entering into any commitments. Images Multimedia Pvt. Ltd. does not vouch for any claims made by the advertisers of products and services. The Printer, Publisher and Editor-in-Chief of the publication shall not be held for any consequences in the event of such claims not being honored by the advertisers.

Copyright Images Multimedia Pvt. Ltd. All rights reserved. Reproduction in any manner is prohibited. All disputes are subject to the jurisdiction of competent courts and forums in Delhi/New Delhi only. Images Business of Fashion does not accept responsibility for returning unsolicited manuscripts and photographs.

JULY 2014 | 192 PAGES | VOL. XV NO.7 | www.imagesfashion.com

Editor-In-Chief: Amitabh TanejaEditorial Director: R S RoyPublisher: S P TanejaHead, Knowledge & Editorial Alliances: Rajan VarmaBureau Chief (Mumbai) & Associate Editor: Gurbir Singh Gulati Sr.Correspondents: Rosy Ngaihte Sharma, Vandana Correspondent: Roshna ChandranReporter: Nipun Augustine Jacob

Contributing Editor: Zainab MorbiwalaCreativesArt Director: Pawan Kumar VermaSr. Layout Designer: Prakash JhaSr. Photographer: Vipin Kardam

Marketing & Consumer Connect General Manager – Consumer Connect: Hemant WadhawanAsst. General Manager – Marketing: Sheela MalladiSr. Manager – Database: Anchal AgarwalSr. Executive – Subscriptions: Kiran RawatExecutives – Database: Neeraj Kumar Singh, Sarika GautamCirculationAssoc. VP – Circulation: Anil NagarProductionGeneral Manager: Manish KadamSr. Executive: Ramesh GuptaSupportGeneral Manager – Administration : Rajeev Mehandru

Dear Readers,

Hope you enjoyed reading the June issue, which was the fi rst of the twin trade fair special issues. We now present this, the second part of the twin issues. And, while the scorching heat may be getting a lot of us down, what the poor monsoon conditions this year immediately mean are--poor crops, food infl ation and a weakening of rural demand. Increasing food prices will also have a spillover effect onto overall national consumption. This comes as a rude shock to the overall buoyancy that a fresh new government had brought onto commerce in India.

It is indeed time for businesses to tighten their operations and prepare for even negative eventualities, and our cover story this month, which is an overview of The Textile & Apparel Supply Chain, takes a sudden new ominous criticality. It is indisputable that in order to meet operational effi ciencies and consumer demands, it is now becoming imperative that retailers have a robust supply chain. While traditionally we, in India, have looked at the subject of supply chain as activities related to logistics and warehousing today the perception needs to completely change, and retailers across formats and categories have realised this are attempting to implement various integrated supply chain practices to effi ciently manage several key goals, with IT as the core of the process.

In continuation to the earlier part carried in the June issue, we carry more information on the fall-winter collections of key brands. And from what we could discern from the brand inputs, we present a quick consolidated look at what fashion will be this coming fall-winter. This issue also carries Fall-Winter trend tips by Ingene Insights.

Also in this issue, we carry an insightful case study on how Capillary Technologies are driving consumer base growth for Benetton, a feature on Madura’s Knowledge Management Center, and Sheetal Choksi addresses some key HR issues. Apart from the above we carry our regular sections on Retail Excellence, Spotlight, Web Watch, Brand Watch, Technology, and end the issue with the Sportswear International section.

We hope you enjoy reading the issue.

Amitabh Taneja

Advertising

BUSINESS HEADSantosh Menezes, Assoc. Vice [email protected].: +91 9820371767

TEXTILES, TRIMMINGS & EMBELLISHMENTSJitender Sharma, Asst. [email protected] Mob.: +91 9958729411Adarsh Verma, Sr. [email protected] Mob.: +91 9999251621

For subscription related queries, email to: [email protected] feedback/editorial queries, email to: [email protected]

Editorial_July14.indd 17 6/28/2014 1:16:13 PM

contents | July 2014

EVERY MONTH23 Editorial

31 Letters to The Editor

38 Brand Tracker

40 Seasons' offerings

42 Outlets

INTERNATIONAL ROUNDUP44 Brands performance in markets After putting all the austerity measures in place, global retail brands

seem to facing improved performances

Q&A48 MAS Holdings aims US$ 100 million revenue by 2020

Ajay Amalean, co-founder, MAS Holdings and managing director, MAS Brands and Retail for India shares about his business and vision for the company

MY THOUGHT52 Beachwear the new casual

Sunita Gupta, director, The Big Door shares how beachwear is becoming a rage in casualwear category

RETAIL EXCELLENCE54 Chunmun: From baby steps to giant strides

Namita Bhagat explores the journey of Chunmun from a humble shop to the current chain of multi-brand stores

BRAND WATCH 60 T-shirts still the best pick

Usha Periasamy, VP-Operations and brand head, Classic Polo talks on the brand’s successful reign as one of the most popular T-shirt brands

64 Leegend & Caesar Quality menswearAtul D Shah, owner and founder of Charchit Apparels shares his views on how they created pan India presence and a strong identity

DISTRIBUTOR'S PROFILE 68 Competitive & challenging business

Anurag Narsingh Jhawar, owner, Orange Clothing Company discusses about the challenges, promotional strategy and competition in distribution

TRENDS REPORT84 What's hot this FW '14!

A snapshot of top designs, styles and colours for the season

F/W COLLECTION92 The second of the two part series on forthcoming fall-winter collections of

the brands

40

48

5254

60

64

68

84

Contents_BoF_June_New.indd 27 6/28/2014 11:13:02 PM

M-COMMERCE110 It’s time for m-commerce

Shopping through mobile devices is graining ground among fashion retailers, Anurag Patel of NIFT shares his project report

WEB WATCH116 A platform for upcoming designers

Vijay Bhaskar started mydesignersales.com to display upcoming fashion designers alongside noted fashion designers

HR EXCELLENCE118 Staffi ng strategies end-of season sale

Sheetal Choksi shares how retailers around the nation add more interim sales associates to support the busy End of Season Sales

TECHNOLOGY122 A more visual shopping experience @ Retail stores

Mood and emotion sensing device and its integration into the retail sector to enhance the overall shopping experience

CASE STUDY124 Capillary drives CRM for Benetton

Capillary drives Benetton's customer base growth by 7.5 times in less than two-years

CONVERSATION128 "Indian luxury market is still evolving"

Prem Dewan, retail head, OSL Luxury shares why India is a signifi cant market for Corneliani

C O V E R S T O R Y

THE TEXTILE AND APPAREL SUPPLY CHAIN: AN OVERVIEW

The research by Technopak shows how fashion retailers and manufacturers are being urged to rethink their supply chain to adequately respond to the unpredictable nature of shopping

72

110

131

165

118

116

124

128

COVE

R C

OU

RTE

SY: D

EEPI

KA

GO

VIN

D

Contents_BoF_June_New.indd 29 6/28/2014 11:13:11 PM

44 | July 2014 | IMAGES Business of Fashion

international roundup

Again Japan headquarted Fast Retailing is spearheading a push abroad for its core Uniqlo brand as sales slump at home, where the population

is ageing and declining. It said it had seen encouraging growth in China and other overseas markets in the fi rst half. However Seven & I Holdings presents a complete different picture when it announces that it plans to open a record 1600 convenience stores in Japan by the fi scal year ending 2015 amidst tricky consumer behaviour. Such dichotomy exists in retail off course!

LUXURY BRANDS ON A SLOW BUT STEADY GROWTH PATHItalian fashion house Versace felt it had started 2014 on a strong footing thanks to a double-digit rise in sales from its own shops in the fi rst quarter, following a 19 per cent increase for the whole of 2013. Total revenue at the luxury group, which plans an eventual stock market listing after the recent sale of a stake to U.S. private equity group Blackstone, rose 17 per cent last year to 479 million euros ($660 million). Core earnings rose nearly 60 per cent to 71 million euros once adjusted for currency effects, it said in a statement. Versace said sales at shops it manages directly rose by nearly a third in the United States, adding to a strong performance in 2012, and by 18 per cent in Asia. Direct sales accounted for nearly 56 per cent of last year’s total. The group, which returned to profi t in 2011, last month agreed to sell a 20 per cent stake to

AFTER PUTTING ALL THE AUSTERITY MEASURES IN PLACE, GLOBAL RETAIL BRANDS SEEM TO FACING IMPROVED PERFORMANCES. THIS HOLDS TRUE FOR GIANTS LIKE CARREFOUR OR BEHEMOTHS LIKE VERSACE OR BURBERRY. THOUGH ALL THESE BRANDS STILL CONTINUE TO TREAD ON A CAUTIOUS PATH, THEIR PERFORMANCE AT VARIOUS KEY MARKETS ARE QUITE REASSURING. IN FACT CARREFOUR HAS SEEN IMPROVED RESULTS EVEN IN TROUBLED ECONOMIES LIKE SPAIN.

GLOBAL RETAIL BRANDS PERFORMANCE IN MARKETS

Blackstone for 210 million euros to fund expansion. Versace, which competes with the likes of Kering’s Gucci, said it had invested 24 million euros last year to boost its retail and e-commerce presence. It plans to double the contribution from its e-commerce business this year. “The main engine of the company’s growth continues to be the Versace Prima Linea (high-end collection), which accounts for 60 per cent of overall sales,” the company said in a statement.

Again, British luxury retailer Burberry said strong sales in China and Korea helped it to a 19 per cent rise in second-half revenue, beating analyst expectations, but said it expected currency headwinds to hit profi ts in the next two years. Burberry, known for its trenchcoats and leather goods, said that total revenue for the six months to March 31 was 1.298 billion pounds ($2.17 billion), higher than a company-compiled analyst consensus of 1.296 billion pounds.

International roundup.indd 44 6/27/2014 11:17:23 PM


my thoughts

LAUNCHED LAST YEAR IN OCTOBER, THE BIG DOOR IS A DISTINCTIVE STORE THAT INFUSES THE BEST OF INDIAN JEWELLERY, HANDCRAFTED HOME DÉCOR AND HERITAGE COLLECTIBLES. THE BIG DOOR BRINGS BACK THE VALUE OF OUR TRADITIONS WITH ORIGINAL, GENUINE ART PIECES, SHOWCASED ON AN APT PLATFORM TO REVIVE THE PAST SAYS SUNITA GUPTA, DIRECTOR, THE BIG DOOR.

BEACHWEARTHE NEW CASUAL

The defi nition of casual is evolving with changing times. Today, it does not just confi ne to the customary jeans and T-shirt. It has increased its circumference

and has brought segments like resortwear and beachwear into its helm. Now-a-days, designers, store buyers, and the media are viewing resortwear as a specialised year-round clothing style.

Sunita Gupta, director, The Big Door introduced the beachwear line, which is a mix of contemporary fashion with a traditional twist. The collection brings the ancient era on today’s modern fashion on board. Keeping the concept of The Big Door in mind, we have tried to transport the same artistry and motifs in the collection too. The concept of The Big Door, ‘The Fantastic Indian Art Store’, is depicted through the artistry and motifs in the beachwear line too.

The beachwear range has been clearly handpicked that embraces clean cut silhouettes comprising bikinis, maillots, monokinis including cover-ups and co-ordinates in various prints like exotic fl owers, Indian Mughal illustrations, Persian motifs, Rajasthani art, etc.

The entire collection that we are offering at The Big Boor is bespoke, targeting women with a passion for art and love for the Indian heritage. The Big Door is open to customising designs and cuts as per the customers’ needs and preferences. The designs and prints can be tailor made as per

My thought_Sunita Guptai.indd 52 6/27/2014 9:53:40 PM

contents | July 2014

I N N O V A T I O NTHE ROAD LESS TRAVELLEDRenowned designers are twisting the warp and weft to add design innovations at the loom stage, giving birth to a fabric that is supple, drape-y and super comfy

134

154

140

144

I N G R E D I E N TE X C E L L E N C E

EUROPEAN RECOGNITION FOR

BEING NATURALVrijesh Natural Fibre and

Fabrics shares how it bagged "European Flax" honour

through its work

T R E N D STREND BYTE: FASHION TREND TIPS FOR AW '2014-15Ingene Insights Consultancy presents trend-tips of men’s and women’s wear for upcoming Autumn Winter 2014-15

D E S I G NEMPOWERING WITH KNOWLEDGEMFL’s new path-breaking and revolutionary Knowledge Management Centre in Bengaluru is a step towards empowering the brand in industry innovation

156 T R A D E W I N DRETAIL SOURCE INDIA: A GARMENT FAIR TO FOSTER BUSINESS AEMA organises Retail Source India to promote organised retail sector

Contents_infashion_New.indd 37 6/28/2014 8:43:50 PM


innovation

THE ROAD LESS TRAVELLEDTEXTILE REVIVALISTS PAROMITA BANERJEE, DEEPIKA GOVIND, RAHUL MISHRA, AND GAURAV JAI GUPTA (AKAARO) ARE TWISTING THE WARP AND WEFT TO ADD DESIGN INNOVATIONS AT THE LOOM STAGE, GIVING BIRTH TO A FABRIC THAT IS SUPPLE, DRAPE-Y AND SUPER COMFY.

It is the only way to evolve and move your design repertoire a step forward. And this is the reason why textile revivalists are indulging in fabric innovations at

the loom level giving each piece a distinct identity.

PAROMITA BANERJEEKolkata’s hidden jewel Paromita Banerjee likes to keep it simple yet effective. Hence, she chose Dhakai Jamdani to start her work with. Dhakai Jamdani is one of the fi nest examples of a craft that has won both favour and patronage, but what it needed was a twist, as it was mostly woven in muslin. What Banerjee did was use

mulberry silk with cotton motifs keeping the inherent context of the craft intact, while playing around with fabric and texture. “Earlier, it was so fi ne that you could pass it through a ring; now it is not so. We sourced the silk from Bengaluru and Assam, and the biggest challenge was to convince weavers in Phulia to make yardage and not saris (the latter sells more). I believe that the craft must not be fi ddled with, so what I did was to make the fabric ideal for autumn-winter rather than just restrict it to summer,” she adds.

But that is not all. Banerjee’s admiration for the 4,000-year-old technique of Ajrakh dyeing using organic blocks and keeping the Islamic motifs was a task when she decided to use placement blocks, which give the effect of patchwork. This resulted in an innovative line, Tana-Bana 2014, where

you could not tell that it was not patchwork as the garment was seamlessly printed. “The Ajrakh print technique in our collections has been followed in the traditional processes. I tried incorporating what I would term as in-house placement printing where two or more different print blocks have been used to give an illusion of a patchwork fabric, while in actuality it is placement block print using multiple wooden blocks,” she explains.

The third innovation looks simple, but in reality, it is a complex mathematical puzzle that starts at the loom stage. Banerjee, to add texture, mixed the plain with a basket weave and infused colour blocking to it for understated drama, and then the pattern was repeated after the 14th block. “I am not so much of a silhouette designer, as those I keep minimal, but what I like to do is make it spectacular at the weaving stage so that the fabric has an unmistakable character,” she smiles.

A cr

eati

on in

wov

en b

lock

sA

Dha

kai J

amda

ni w

ork

An A

jrak

hs w

ith

plac

emen

t pri

ntin

gA

Dha

kai J

amda

ni w

ork

innovation_Ashmitaindd.indd 134 6/27/2014 11:54:47 PM

contents

DENIM AND FASHION TRENDS – CAPSULE FOR INDIA

Editor-in-Chief: Sabine KühnlCreative Director: Gian Luca FracassiSenior Editors: Maria Cristina Pavarini/Christopher BlomquistFashion Editor: Juliette NguyenManaging Editor: Wolfgang Lutterbach

Credits for India Capsule

FACTS | BRANDS169 Color cure Benetton group’s overall relaunch has just started and its

two major brands are being overhauled as part of it.

170 Stepping into the future The Italian premium denim producer Candiani denim

is facing modern market challenges with innovative products, new managers and marketing initiatives.

172 The denim jeweler Calik Denim’s new general manager, Hamit Yenici, has

some clear aims in mind–betting on quality, innovative fashion denims and expanding globally.

FACTS | RETAIL174 Do it yourself Christoph Munier and Andrea Dahmen will open their

17th Kauf Dich Glücklich store this year- and the fi rst one abroad.

177 Under Control Chec king production steps, window-dressing phases and

retail operations now can be simply done through new software warda, devised by and for fashion insiders.

FASHION | FOOTWEAR180 New Love:Trainers & High Fashion Only a few years ago sneakers were declared dead. But

now even high fashion has discovered them again.

FACTS | SHOW182 You just have to be self-confi dent Anita Tillmann burns with passion for fashion and Berlin.

And her company, Premium Exhibitions, has stood for far more than fashion trade fairs for quite some time now.

FACTS | STORE184 On display Hang, stand, lay–what is the best way to present fashion?

here are some new ideas around the world.

170

172

174

177 182

184

Contents_SWI.indd 168 6/28/2014 10:40:49 PM Facts brands.indd 169 28/06/14 1:39 PM

IMAGES Business of Fashion | Capsule for India – Sportswear International | July 2014 | 169

COLOR CURE BENETTON GROUP’S OVERALL RELAUNCH HAS JUST STARTED. AND ITS TWO MAJOR BRANDS ARE BEING OVERHAULED AS PART OF IT. BY MARIA CRISTINA PAVARINI BENETTON LOOK FOR SUMMER

The new CEO of Benetton Group Marco Airoldi is senior partner of Boston Consulting

Group. He has collaborated for the last 20 years with Edizione, for the main companies of the

group, was general manager for Autogrill (1998-2000) and devised a project of refocusing and

relaunch of Benetton Group activities approved by its board of directors in November 2013. The

plan will focus on a reorganization of Benetton Group that from 2015 will be separating the

manufacturing activities (weaving, knitwear, spinning, dyeing and garment making) and the real

estate company. At the end of the operations Edizioni will control directly 100% of Benetton

Group (focused on its “core” components: brands, product, marketing, sales and retail), 100%

of the company that will manage manufacturing activities (with industrial platforms in the

Mediterranean area) and 100% of the real estate company.MARCO AIROLDI, NEW CEO FOR BENETTON GROUP

> Benetton Group’s new course

has just started through the

appointment of new CEO Marco Airoldi

(see box) and the overall redesign and

debut of its two major brands–United

Colors of Benetton and Sisley–and the

opening of a few totally redesigned

concept flagship stores. A new business

model, more focused on customers’

needs, faster production rhythms and

more frequent product deliveries will be

key to this evolution.

In April 2014 UCB unveiled its new

collection redesign and the debut of its

new “On Canvas” flagship store in Milan,

parallel to other openings according

to the same concept in Nice, Florence,

Verona, and soon Moscow. The new

masstige collection–made up of about

560 items, 380 of which are for women–

wants to be “masstige,” that is fashion-

minded, designed in Italy with top quality

Italian materials but offered at affordable

prices. It will offer a new flash collection

every two weeks and will include easy to

match urban, sophisticated and smart

apparel as well as young casualwear,

jeanswear, sportswear and accessories.

Its cotton/silk knits retail for €29.95; a

lace-like dress is €39.

The new Sisley, positioned in the bridge

segment, debuted in February 2014 in

Germany, with the opening of the first

global flagship store in Berlin. The new

collection has a contemporary-meets-

bohemian cosmopolitan feel and is

offered with seven deliveries per season

at a very interesting price-quality ratio.

Other stores, while all different one from

other, have opened according to the

new “Rich & Raw” cozy-cool intimate

atmosphere. They are located in Padua,

Orio al Serio, Rome, Naples, and Venice.

By end 2015 there will also be one in

Tokyo. In 2012 and 2013 the company

started rethinking their business

strategies and set the basis for changes

that could generate new growth. They

expect the year 2014 as an implementing

year, while in 2015 they expect the first

truly positive recovery signs. The group

wants to abandon its less strategic

markets and concentrate on 60 markets

out the previous 120 ones and focus

the activities of the Benetton brand

mostly on Italy (40% of its sales), Europe

and places such as India, Korea and

Mexico. Sisley repositioning started in

Germany because it is a high performing

market in terms of results, says Martin

Beuker, general manager for Germany:

“In Germany we closed 2013 with a 17%

growth in sales on 2012.” It is a great

result considering that Germany is

Sisley’s second most important market,

counting for about 12% of the brand’s

revenues after Italy.

Benetton Group is presently managing

more than 6,000 stores, 600 of which are

managed directly. The group closed 2013

registering €1.6 billion in sales, about

10% less than in 2012. Some positive

signs are already showing up from the

beginning of 2014 since the company has

registered a 17.7% increase compared

to similar selling areas. It registered

an increase in margins of similar

entity thanks to an increase in the

new Benetton store’s traffic (10%) and

conversion rate (7%). Already from f/w

2013/2014 the group saw a cut of half

of their indebtment to less than €300

million. They expect to invest for the next

three years a total of €300 million.

facts | brands

Facts brands.indd 169 28/06/14 1:39 PM

100 100 0 - india retailing book storecase study 124 capillary drives crm for benetton capillary...

Documents