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“DENIM SOURCING – A PROCESS STUDY FOR
PRIVATE LABELS OF PFRL”
By
AMBIKA ACHARYA
MUM13MM04
Under the guidance of
DR. SUSHIL RATURI
ASSOCIATE PROFESSOR, FMS
Submitted in Partial Fulfilment of the Requirements for the Degree of
Master of Fashion Management
Department of Fashion Management Studies
NATIONAL INSTITUTE OF FASHION TECHNOLOGY
MUMBAI, (2013-2015)
DECLARATION
I hereby declare that the project titled ‘DENIM SOURCING – A PROCESS
STUDY FOR PRIVATE LABELS OF PFRL’, undertaken during Graduation
Project at PANTALOONS FASHION RETAIL AND LIFESTYLE,
Mumbai , Submitted to National Institute of Fashion Technology, Mumbai
in partial fulfilment for the award of the Degree of Master of Fashion
Management is the original research work carried out by me during 12th January
– 17th April 2015, under the guidance and supervision of Dr. Sushil Raturi,
Associate Professor, FMS.
I, further, declare that this project or part thereof has not been submitted in any
form for any other degree or diploma
AMBIKA ACHARYA
MUM13MM04
NIFT MUMBAI
CERTIFICATE
This is to certify that this project report entitled “DENIM
SOURCING – A PROCESS STUDY FOR PRIVATE LABELS
OF PFRL” submitted to National Institute of Fashion Technology,
Mumbai, is a bonafide record of work done by “AMBIKA
ACHARYA” under my supervision from “12TH JANUARY – 17TH
APRIL 2015”
DR. SUSHIL RATURI
ASSOCIATE PROFESSOR, FMS
MS. LIPI CHOUDHARY
COURSE COORDINATOR, FMS
MUMBAI
19/05/2015
ACKNOWLEDGEMENT
I am highly grateful to “PANTALOONS FASHION RETAIL & LIFESTYLE,
Mumbai” for providing me the opportunity to complete my Graduation research
project with them.
I would like to extend my deepest gratitude towards Ms. Bharti Singh (HR
Department PFRL, HO) for giving me the opportunity to do internship with their
organization.
I express my whole hearted thanks to my mentor Mr. Amit Dashora (General
Manager, Sourcing Bottoms) for his engagement and support and constant
guidance in organizing my work and giving me valuable inputs in my learning
and Mr. Prabhu Perumal, Mr. Sunil Sinha (Sourcing Denims) and Mr. Pranav
Mukhne (Sourcing Casual Bottoms) for giving me insights and providing me with
details required for my project
I also want to extend heartfelt thanks to my college mentor Dr. Sushil Raturi for
the help he has extended in my Graduation Research Project. My due thanks to
all the FMS faculty and staff for their kind support during the process.
Lastly, I am thankful to friends and families for providing me with great support
in my entire endeavour.
AMBIKA ACHARYA
MUM13MM04
MASTER OF FASHION MANAGEMENT
DEPARTMENT OF FASHION MANAGEMENT STUDIES
EXECUTIVE SUMMARY
Bottoms contribute to about 30% of the total sales and thus sourcing them at the right price and
right time becomes very important. There were a few gaps in the sourcing of denims which
needed to be addressed and thus a study was conducted to analyse the current model of
sourcing, COGS for entry level MRP of core-fashion denim bottom wear for PFRL private
label brands in men, women & kids categories, Product engineering for core and fashion core
line for targeting below 30 % PC / MRP , this will include the study of all the costs components
and sharpening them as per PFRL brand positioning, to rationalise fabrics , trims, fit , map the
consumptions for different type of fits base with respective fabric shrinkages.
For doing any project for a department it is very important to first understand the workings of
the department. So the first objective was to study the sourcing departments with regards to
their roles and responsibilities, the flow of work, their routine and the inter-relation with the
other departments. Sourcing includes manufacturability, cost and feasibility to fulfil the buyer’s
requirements, specifications and expectations in the given time frame. They undertake the
product development, samplings, costings, and monitor the production and its deliveries.
Fabric is the most vital element of a garment and also the major cost component in producing
the garment. It is almost 40-50% of the total cost and thus it is important to control its allowed
consumption per garment. There was no set standard for allowed consumption till now and it
used to be difficult with to close the consumptions with the vendors. Thus a fit – fabric
consumption matrix was developed which took into consideration the various properties of a
fabric like its width, shrinkage, content, stretchability along with the fit and the inseam/length.
This would enable to have a standard consumption that would be allowed for a basic five pocket
denim.
Trims are also a very important part of the garment. They cost almost 1/5th of the cost of the
garment and thus needs to be accounted for correctly failing to which there might be issues in
costings. Thus the list of all the trims to be used in the AW 15 collection was collected brand
wise, along with their prices and the nominated vendors, and was formulated in a standard trims
cost sheet format which would be a base during the open costings and numbers of quantity just
need to added and no trims would be missed out including trims which are used in very few
styles but are quite expensive.
In sourcing it is all about getting the required product at the least possible cost. When product
range of pantaloons was compared to other retailers it was found that there is a gap in the lower
MRP denims which the was missing in our private label lines and thus a value line for men’s
and women’s can be created to attract a new set of consumers. Thus a value line for MRP
Rs.899 was developed at a cost of Rs.340 and for women a new product, a pull up jegging was
developed for MRP Rs.799 at a cost of Rs.330
There are various people involved in the denim team who have different responsibilities to
play. The production / approvals, fabrics, and washing are all handled by different people. Thus
it becomes important to have a transparent flow of data between the internal team and make
sure that everyone has the complete details of everything that is happening. Thus a master grid
containing every single data about each and every style was created and data from every
individual was collected at the end of the day, updated in the single grid and circulated so that
the entire team is in sync with the work.
1
TABLE OF CONTENT
INTRODUCTION ................................................................................................ 4
ADITYA BIRLA GROUP .................................................................................... 5
2.1 ADITYA BIRLA GROUP – THE GLOBAL SCENARIO ............................................. 5
2.2 ADITYA BIRLA GROUP – THE INDIAN SCENARIO ............................................... 6
2.3 ADITYA BIRLA GROUP – BEYOND BUSINESS ...................................................... 6
2.4 VISION, MISSION AND VALUES ............................................................................... 7
ADITYA BIRLA NUVO ...................................................................................... 8
JOINT VENTURES AND SUBSIDIARY COMPANIES: ................................................... 9
PANTALOONS FASHION AND RETAIL LIMITED ..................................... 10
AWARDS AND ACCOLADES.......................................................................................... 11
3.1 PRIVATE LABLES OF PFRL ...................................................................................... 12
3.2 PANTALOONS DEPARTMENTS ............................................................................... 21
LITERATURE REVIEW ................................................................................... 24
4.1 DENIM INDUSTRY IN INDIA .................................................................................... 24
RESEARCH METHODOLOGY ....................................................................... 29
SOURCING ........................................................................................................ 30
6.1 ROLES AND RESPONSIBILITIES OF SOURCING DEPARTMENT ...................... 31
6.2 SOURCING DEPARTMENTS IN PANTALOONS .................................................... 32
6.3 BOTTOMS: ................................................................................................................... 32
6.4 SOURCING HIERARCHY ........................................................................................... 33
6.5 WORK FLOW IN DENIM SOURCING DEPARTMENT .......................................... 34
6.6 ROLES & RESPONSIBILITY OF DENIM FABRIC SOURCING PERSONNEL .... 40
6.7 SAMPLING PROCESS ................................................................................................. 41
FIT – FABRIC CONSUMPTION MATRIX ..................................................... 43
7.1 NEED FOR A FIT FABRIC MATRIX ......................................................................... 43
2
7.2 COST BREAK UP – DENIMS ..................................................................................... 44
7.3 COST BREAK UP - CASUAL BOTTOMS ................................................................. 47
7.4 FACTORS AFFECTING FABRIC CONSUMPTION ................................................. 48
7.5 FACTORS AFFECTING FIT ....................................................................................... 48
TRIMS ................................................................................................................ 53
8.1 IMPORTANCE OF TRIMS: ......................................................................................... 53
8.2 TYPES OF TRIMS ........................................................................................................ 54
8.3 STANDARD FORMAT FOR COSTING OF TRIMS – BRAND WISE ... 57
VALUE LINE DENIM ....................................................................................... 62
9.1 NEED FOR A VALUE LINE DENIM ......................................................................... 62
9.2 MENS VALUE LINE DENIM ...................................................................................... 63
9.3 WOMEN’S VALUE LINE ............................................................................................ 67
FRAMEWORK FOR DATA TRACKING FOR AW 15 FOR DENIMS ......... 68
11.1 SUGGESTIONS ......................................................................................... 70
11.2 KEY LEARNINGS ..................................................................................... 71
WEBLIOGRAPHY ............................................................................................. 72
3
LIST OF TABLES AND FIGURES
SOURCING DEPARTMENTS IN PANTALOONS………………………………………...32
SOURCING HIERARCHY…………………………………………………………………. 33
WORK FLOW IN DENIM SOURCING DEPARTMENT…………………………………..34
COST BREAK UP DENIMS - WOMENS………………………………………………….. 44
COST BREAK UP DENIMS - MENS………………………………………………………. 45
COST BREAK UP DENIMS - KIDS………………………………………………………... 46
COST BREAK UP NON DENIMS…………………………………………………………. 47
FIT FABRIC CONSUMPTION MATRIX - DENIM………………………………………...49
FIT FABRIC CONSUMPTION MATRIX - CASUAL BOTTOMS………………………... 50
BARE MENS COST SHEET………………………………………………………………...58
SF WOMENS COST SHEET………………………………………………………………...60
MENS CORE LINE COST SHEET…………………………………………………………. 65
MENS VALUE LINE COST SHEET……………………………………………………….. 66
4
INTRODUCTION
Bottoms contribute to about 30% of the total sales and thus sourcing them at the right price and
right time becomes very important. There were a few gaps in the sourcing of denims which
needed to be studied and thus a study was conducted to analyse the current model of sourcing,
COGS for entry level MRP of core-fashion denim bottom wear for PFRL private label brands
in men, women & kids categories, Product engineering for core and fashion core line for
targeting below 30 % PC / MRP , this will include the study of all the costs components and
sharpening them as per PFRL brand positioning, to rationalise fabrics , trims, fit , map the
consumptions for different type of fits base with respective fabric shrinkages.
This study was conducted with the following objectives:
To study existing model of denim sourcing
To map the consumptions for different type of fits base with respective fabric
shrinkages.
To create a standardised trims cost sheet, brand wise for AW 15
To assist in developing a range of value line denim
To develop a framework for data tracking of all the styles of denims for AW 15
Scope of Study:
The scope of the study is limited to the sourcing of denims and a few elements of casual
bottoms of the private labels of PFRL.
5
ADITYA BIRLA GROUP
A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is
anchored by an extraordinary force of over 120,000 employees belonging to 42 nationalities.
The Group has been ranked Number 4 in the global 'Top Companies for Leaders' survey and
ranked Number 1 in Asia Pacific for 2011. 'Top Companies for Leaders' is the most
comprehensive study of organisational leadership in the world conducted by Aon Hewitt,
Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm). The Group has
topped the Nielsen's Corporate Image Monitor 2013-14 and emerged as the Number 1
corporate, the 'Best in Class', for the second consecutive year.
Over 50 per cent of the Aditya Birla Group's revenues flow from its overseas operations. The
Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt,
France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,
Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa,
Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA, and
Vietnam.
2.1 ADITYA BIRLA GROUP – THE GLOBAL SCENARIO
A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia with the largest single location copper
smelter
No.1 in viscose staple fibre
No.1 in carbon black
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The fourth-largest producer of insulators
The fourth-largest producer of acrylic fibre
Among the top 10 cement producers
Among the best energy-efficient fertiliser plants
The largest Indian MNC with manufacturing operations in the USA
2.2 ADITYA BIRLA GROUP – THE INDIAN SCENARIO
The largest fashion (premium branded apparel) and lifestyle player
The second-largest manufacturer and largest exporter of viscose filament yarn
The largest producer in the chlor-alkali sector
Among the top three mobile telephony companies
A leading player in life insurance and asset management
Among the top two supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not
come in the way of the need to keep learning afresh, to keep experimenting.
2.3 ADITYA BIRLA GROUP – BEYOND BUSINESS
Works in 3,000 villages
Reaches out to seven million people, annually, through the Aditya Birla Centre for
Community Initiatives and Rural Development spearheaded by Mrs. Rajashree Birla
Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social
reform in India, Brazil and Egypt, as well as Philippines, Thailand, Laos, Indonesia, Korea
and other Asian countries
IN INDIA:
The Aditya Birla Group runs 42 schools, which provide quality education to 45,000 children.
Of these 18,000 students belong to the underprivileged segment. Merit scholarships are given
to an additional 12,000 children from the interiors.
The 18 hospitals run by the Aditya Birla Group tend to more than a million villagers.
7
In line with its commitment to sustainable development, the Aditya Birla Group has partnered
with Columbia University in establishing the Columbia Global Centre's Earth Institute in
Mumbai.
The idea of embedding CSR as a way of life in organisations has led to the setting up of the
FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.
2.4 VISION, MISSION AND VALUES
OUR VISION
To be a premium global conglomerate, with a clear focus on each of the businesses.
OUR MISSION
To deliver superior value to our customers, shareholders, employees and society at large.
OUR VALUES
Integrity: Acting and taking decisions in a manner that is fair and honest. Following the
highest standards of professionalism and being recognised for doing so. Integrity for us means
not only financial and intellectual integrity, but encompasses all other forms as are generally
understood.
Commitment: On the foundation of Integrity, doing all that is needed to deliver value to all
stakeholders. In the process, being accountable for our own actions and decisions, those of our
team and those in the part of the organisation for which we are responsible.
Passion: An energetic, intuitive zeal that arises from emotional engagement with the
organisation that makes work joyful and inspires each one to give his or her best. A voluntary,
spontaneous and relentless pursuit of goals and objectives with the highest level of energy and
enthusiasm.
Seamlessness: Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspectives to garner the
benefits of synergy while promoting organisational unity through sharing and collaborative
efforts.
8
Speed: Responding to internal and external customers with a sense of urgency. Continuously
striving to finish before deadlines and choosing the best rhythm to optimise organisational
efficiencies.
ADITYA BIRLA NUVO
Aditya Birla Nuvo Limited (ABNL), a US$4 billion conglomerate by revenue size, is part of
the Aditya Birla Group, a US$40 billion Indian multinational, operating in 36 countries across
the globe. With a market cap of ~US$3.5 billion (30 September 2014), Aditya Birla Nuvo is
present across Financial Services, Telecom, Fashion and Lifestyle and Manufacturing
Businesses.
The razor-sharp focus on each business has made the company a leading player in most
segments, including viscose filament yarn, apparel brands, agri business, textiles and
insulators. Over the last few years, Aditya Birla Nuvo, through its subsidiaries and joint
ventures, has created a leadership position in consumer centric businesses such as life
insurance, asset management, lending and other financial services and telecom.
As a leading conglomerate in India, Aditya Birla Nuvo ranks as:
The second-largest producer and largest exporter of viscose filament yarn
The largest branded apparel company offering the best apparel brands in India
The largest linen fabric manufacturer in India
Amongst the most energy-efficient fertiliser plants
India's largest and the world's fourth-largest manufacturer of insulators
9
JOINT VENTURES AND SUBSIDIARY COMPANIES:
Idea Cellular Limited is among the top three cellular operators in India, in terms of revenue
market share
Birla Sun Life Insurance Co. Limited is among the top five private sector life insurance
companies in India, in terms of assets under management
Birla Sun Life Asset Management Co. Limited is the fourth largest asset management
company in India, in terms of assets under management
Pantaloons Fashion & Retail Limited is among the top three large format fashion retailers
in India
10
PANTALOONS FASHION AND RETAIL LIMITED
Pantaloons Fashion & Retail, the newly acquired business of Aditya Birla Nuvo is one of the
top clothing brands in the world, India's fastest growing premium lifestyle company was started
by Future Group in 1997. Over the years, the brand has undergone several transitions and re-
invented itself to bring forth compelling trends and styles catering to the evolving fashion hub.
Since its inception, Pantaloons progressed from retailing just a mix of brands to its very own
popular private labels as well, designed by the in-house Design Studio. With a sharp focus on
bringing the latest in fashion, the Design Studio combines its prowess in design and aesthetics
to present styles that keep the consumer fashionably dressed each season.
Initially positioned as a store catering to the fashion needs of the entire family, Pantaloons has
transitioned to a fashion and lifestyle brand with an emphasis on youth and a focus on designs
that are inherently in sync with current fashion trends. This compelling combination has helped
Pantaloons retain its place on the style radar of every consumer's wardrobe.
A typical Pantaloons store is spread across a sprawling retail space of about 18,000 sq. ft., with
a brand portfolio that runs across a wide gamut of styles that spell class. Pantaloons stores have
an abundance of choices across categories that range from western to Indian wear, formal to
party wear and active wear for men, women and kids. To further add to the customer's
innumerable choices that reflect style, attitude, and comfort, Pantaloons has extended its
horizons to fashion accessories like fragrances, footwear, handbags, watches, sunglasses and
much more.
11
With a vast collection of more than a 100 prestigious brands for the discerning fashionista.
Pantaloons offers an incredible and complete one-stop shopping experience to its buyers.
With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on growth
while Continuing to create fresh fashion. Pantaloons is recognised by its warm personalised
service that completes the core proposition of this trendy chain. With all these advancements,
Pantaloons is one of the fastest growing apparel companies. And is poised to grow bigger and
better.
AWARDS AND ACCOLADES
Pantaloons greencard awarded the best "Direct Marketing Campaign Of The Year" at the '8th
loyalty awards' presented by Aimia.
Pantaloons wins "Best Twitter Campaign" award at social media summit.
Pantaloons wins ‘Most Preferred Fashion Retail Destination of the Year’ at north-east
consumer awards 2013
Pantaloons bags a gold in 'Web-Rich Media Banner Campaign' and a silver for 'Best Digital
Innovation' at IDMA 2013
Pantaloons voted India's no. 1 trusted apparel retailer for 2013
12
3.1 PRIVATE LABLES OF PFRL
Edgy, rock star inspired and tough, San Frisco Jeans Co is all about going bold this season. It’s
grunge inspired fashion for men and women. The collection offers distressed fashion denims,
leather jackets, lace dresses, racer backs, crop tops, graphic prints inspired by hard rock and
more to add edgy glamour to your wardrobe.
13
Bare Denim offers a range of denim wear that compliments everyday life. Choose from a wide
variety of checkered shirts, graphic t-shirts, printed tops, denims, dresses and shorts to keep
your wardrobe always updated with daily trends.
14
Pretty, soft & playful, introducing Chirpie Pie apparel for baby boys and girls in age group of
1 to 24 months. With themes like ‘Animal Kingdom’, ‘Flora and Fauna’ and ‘Butterflies’ this
collection is all trend and graphic driven. Soft and light weight fabrics, this collection comes
in comfortable shapes and soft pastels.
15
Chalk offers fun and eclectic casual wear for kids between the age of 2 to 7 years. It has a
delightful collection of vibrant colored T-shirts, shirts and shorts perfect for the little boys and
girls.
16
Byford offers British sports inspired design with a preppy touch for an impeccably stylish look.
Sophisticated dual toned t-shirts, polos with badges, sweatshirts, and checkered shirts are the
quintessential brand must-haves that never fail to impress.
Transform your look from work to weekend seamlessly with smart casuals from Bare Leisure.
The collection offers khakis, smart checkered shirts, colored chinos and graphic tees suitable
for work and leisure.
Outdoor, Utility and Casual lifestyle, that’s the heart of this brand. Specially designed for the
free-spirited individuals. Those who love to take the uncharted off the beaten track. Always
ready to travel, always ready to explore.
17
JM Sport offers classic casuals with an aristrocatic lineage that is visible in the diversity of
stripes and shades in each of its t-shirts. Striped polos t-shirts available in a wide range of colors
make for a perfect day wear.
Lombard offers power dressing with a contemporary touch. The collection offers classic crisp
white shirts, blazers, suits, trousers and formal shirts with internal detailing perfect for the
suave gentleman.
Club essentials for the party hopper, F Factor is designed for the men who dress with panache
even after work hours . The club wear offers slim fit shirts, blazers, waist coats and trousers
with a hint of shimmer that complete the dazzling look and makes you party perfect.
18
Ajile is a sports lifestyle brand that imbibes a distinctively vibrant and casual look. The
collection offers a wide range of athletic apparels and sports casuals, sweatshirts, dry fit T-
shirts, shorts, three fourths, track pants and more to make your sporty life exciting.
Fun and flirty - flaunt your style with the all new collection by Candies exclusively available
at Pantaloons. Dainty floral dresses, delicate lace tops, frilly skirts, printed leggings and
bodycons make for the wardrobe essentials of every 'it' girl.
Honey offers fun and peppy casual wear for the young girls who are free spirited, impulsive
yet a romantic at heart. The range encompasses stylish day wear - floral, feminine & vibrant.
Annabelle is a 9 to 9 western fashion wear for the ladies. The collection blends femininity with
formal wear. Understated elegance in contemporary and classic styles is the key offering to
every fashionista's wardrobe.
19
Indian tradition elegantly embodied in Trishaa. A plethora of designs ranging from opulent
paisley to intricate chikan work to beautiful embroidery, it’s a combination of salwar-kameez-
duppata sets perfect for every traditional occasion.
Crafted with an eye for detail, elegant ensembles from Jamini spell sophistication to suit the
tastes of modern woman of substance. The collection embodies handcrafted fashion and has
contemporary silhouettes in palazzos, kurtas, anarkalis and many more eclectic options.
Rangmanch offers mix-n-match Indian wear for that simple yet stylish woman. Every ensemble
is a mélange of contemporary styles with an Indian vibe translated into kurtas and churidars
exuding charm and simplicity.
20
Alto Moda - the plus size fashion collection for men and women allows you to explore an
effortlessly stylish yet comfortable look. The collection offers formal shirts, trousers, denims,
striped and graphic printed t-shirts for men available exclusively at Pantaloons.
Smart, trendy, upbeat and vibrant; Poppers is the perfect choice for today's stylish tweens. With
everything from tunics to tops, from skirts to shirts, Poppers is here to infuse a riot of colors in
every teen's wardrobe.
21
3.2 PANTALOONS DEPARTMENTS
To understand any company it is very important to understand its various departments and their
individual functions that they perform.
DESIGN
Responsible for studying and analysing trends in the domestic as well as international markets,
creating aligned products and designing a range of garments in line with the brand promise and
customer expectations.
CATEGORY / BUYER
Responsible for planning & buying the appropriate finished garments in the right quantity style
wise matching with the budgets they have been allocated, designs given by the designers at the
right cost, right time and right place. Responsible for a deep understanding of the contemporary
trends in fabrics & garments.
SOURCING
Responsible for manufacturing/ delivering garments at the right time and that too at agreed
costs and pre-defined quality standards.
• DESIGN
• CATEGORY
• SOURCING
• TECH / QA
• PLANNING
• RETAIL BUYING AND ALLOCATION
• SUPPLY CHAIN
• MARKETING
• OPERATIONS
• FINANCE
• HUMAN RESOURCE
• LOYALTY PROGRAMME
PANTALOONS DEPARTMENTS
22
PLANNING
Responsible for allocation of merchandise to right stores at the right time in order to achieve
sales and profitability targets. Collaborating with the buying team to monitor daily sales,
besides looking into season's markdown and sales markdown.
RETAIL BUYING & ALLOCATION
Responsible for the sale of national brands – apparels /non apparels through strategic retail
channels along with achieving retail sales and profitability targets.
TECHNICAL
Responsible for overseeing and evaluating the technical aspects of a garment in terms of
measurements, silhouettes and patterns.
QUALITY
Ensuring that product quality is delivered as per the norms & specifications set out by the
company before the product reaches the warehouse. These are tested in the in-house laboratory
of the company.
SUPPLY CHAIN
Ensuring seamless movement of goods from vendor to warehouse and stock movement from
warehouse to various stores.
MARKETING
To create, communicate and reinforce brand persona in the psyche of the target consumers
online and offline.
LOYALTY PROGRAM
Responsible for turning walk-ins into frequent buyers through customized offerings, thereby
resulting in customer loyalty.
23
OPERATIONS
Responsible for sales & margin, shrinkage control, implementation of processes, customer
experience at stores and MPM adherence. To identify new properties & negotiate with builders
FINANCE
Responsible for all the financial aspects of the firm. Maintains the incomes and expenses of the
company and the accounts of all the vendors.
HUMAN RESOURCE
Responsible for managing the human power in the company. Determines the vacancies in the
organization. Carries on the process of recruitments, training and also conducts various
activities inside the organization so as to better the knowledge and working of the staff.
24
LITERATURE REVIEW
4.1 DENIM INDUSTRY IN INDIA
Consumers, especially the youth, in cities beyond the metros and mini metros are growing
exceptionally aspirational. They are increasingly accepting denim as a core apparel category
to be worn as an everyday casual garment. Amit Gugnani, SVP, Fashion (Textile & Apparel),
Technopak share more insight on the denim market.
MARKET SIZE AND GROWTH
Denim is of the most promising category in India’s apparel market. In 2013, the denim
market of India was worth `13,500 Cr. which accounts for 5 percent of the total apparel
market of the country. The market is projected to grow at a CAGR of 15 percent to become
`27,200 Cr. market in 2018.
The denim market in India is skewed towards men’s segments with 85 percent contribution
coming from it. Women’s denim segment contributes 9 percent to the market and the kids
segment the rest 6 percent. The women’s and kid’s denim segments are expected to witness
higher growth rates due to their lower base and increasing focus of brands and retailers on
those segments.
COMPARISON WITH DENIM CONSUMPTION OF SOME OTHER COUNTRIES
In general the western lifestyle and western fashion has accelerated the trend of casualisation
across the globe. This trend has boosted the consumption of casual fashion apparel like
denims, dress shirts, tees, casual shirts among both men and women consumers in all
developing countries including India. The average number of denim items owned by Indian
consumer is much lower in comparison to consuming market of the United States, Europe
etc. The number is even lower than countries like Brazil and China. This difference in the
number demonstrates the huge potential that exists for denim in the domestic market.
25
CITY-WISE DISTRIBUTION OF DENIM MARKET
The value share of denim market is skewed in favour of mega metros and metros which
account for almost half of the total denim market at a share of 49 percent. Though the
markets of other urban areas and rural India contribute high in volume terms, their combined
share in market value is only 51 percent.
As the penetration of denim category and the awareness of denim quality increases in those
cities and rural India, their share in market value will start increasing with more number of
consumers willing to pay premium for the quality, design and fit.
PRESENCE OF BRANDS
In India unbranded denim products dominate the market with around 60 percent share of the
market. The share of brands in denim market stands at 40 percent. Most of the unbranded
players operate on the lower price segment of the market where awareness of quality of
fabric, fi nishing and washes, design and fi t are relatively low.
The emergence of semi-urban clusters, areas having less number of farming communities,
across the country has opened a plethora of opportunities for regional brands and retailers. A
typical denim consumer of the semi-urban cluster demonstrates a blend of the characteristics
of urban and rural consumers; like an urban consumer he or she shows awareness of brand
and product quality and like a rural consumer pricing and affordability plays a crucial role in
his or her purchase decisions. The regional brands have focusing to cater to these typical
requirements of the semi-urban consumers. However presence of lots of unbranded players in
such markets it a market of intense competition to many national level brands.
DRIVING FACTORS FOR DENIM MARKET
Some of the key driving factors for the denim market in India are:
An aspiration youth (15-29 year olds) with higher spending power than previous
generations, which make 26 percent of the consuming population
26
A wide range of consumer segment that consider denim as an apparel of choice owing
to its comfort and style
Favoured preference for denim amongst youth owing to its versatile association
Increasing usage of denim products by women and youth in smaller cities and rural
India
DENIM VALUE CHAIN IN INDIA
India has an integrated value chain for denim products starting from fi bre to retail. Denim is
primarily produced from cotton and India is expected to overcome China as the single largest
producer of cotton the world in 2014. The country is the second largest producer of cotton
yarn. The denim fabric production capacity of India is more than 1,000 million meters per
year, and India is still witnessing entrance of more denim fabric manufacturers in the
industry.
Denim fabric production in India is concentrated in the western and northern parts of the
country with more than 45 percent contribution coming from Gujarat alone where
Ahmedabad is the production hub.
Denim apparel production in India remains a fragmented industry where only 20-30 percent
of denim apparel is manufactured in the organised units. The denim apparel production
activities are concentrated in Delhi and NCR, Mumbai, Bangalore and Ahmedabad.
SELECT TRENDS IN DENIM MARKET
The denim market in India has been evolving fast with introduction of more styles, colours
and some distinct trends in the product offering.
Some of the key trends in denim market are:
In India most of the denim manufacturers focus on the domestic markets as the value
realisation remains higher in domestic market than in export markets
27
In the recent times the industry has witnessed entrance of new fabric manufacturers
which is expected to make the market for denim fabric more price competitive in the
coming years
Cotton remains the fi bre of choice in denim apparel. In blended denim fabrics polyster
is being used as weft threads
The demand for stretch denim is growing at a faster rate in India market due to its
comfort and fi t characteristics
The colour of denim jeans is no longer limited to traditional blue colours. Indian youth
has started accepting denim in different colours including green, red, yellow etc.
ISSUES & CHALLENGES FOR DENIM MARKET
Though the denim category is among the most promising categories in apparel market of the
country, it faces its own set of issue and challenges. The prudence in which various
stakeholders of denim eco-system identify and address the issues and challenges associated
with the value chain will determine the growth of denim apparel market in the country. India
at present lacks behind in its ability of the denim product development and innovation. There
is a need to develop a larger portfolio of denim garments and accessories, including shorts,
shirts, bags, dresses, accessories among others.
At present the market is skewed towards denim jeans. The weight (gsm) range of available
denim fabric could be broadened to widen denim application. There is a lot of scope of
improvement in right processing and value addition in denim through fashion-led processes
and fi nishes. Establishment of high quality processing and could help to improve the quality
and colours, this attracting more to try denim.
CONCLUSION
Development of a consumer centric denim value chain will create the avenues to unleash the
great potential inherent in India’s denim market. However there is a dire need to start an
industry-wide initiative to decode the mind-set of Indian consumers and their perception and
receptivity of denim and to promote denim among the consumers. The increasing awareness
of sustainable fashion provides additional opportunity to promote denim as a product of
28
natural cotton fibre which is perceived as more eco-friendly than synthetics.
A two-prong strategy that in one hand addresses the needs of consumers encourages them to
consume more of denim and on the other hand ensures to improve the existing gaps in supply
chain shall make India’s denim market more dynamic and consumer centric with better
opportunities and scopes for all elements involved in the eco-system.
29
RESEARCH METHODOLOGY
There are various research methodology used in this project, they are as follows:
FIT FABRIC CONSUMPTION MATRIX:
- Primary data was collected by interacting with the vendors and tech team of the
pantaloons regarding the consumptions and the markers.
- Secondary data was collected from the previous cost sheets and the consumptions
accounted for
STANDARD TRIMS COST SHEET:
- Secondary data was collected from the category team regarding the trims that have been
approved to be used for the AW 15 collection.
- Data regarding the cost and the vendor details for every trims was collected from the
trims sourcing department and accounted for
VALUE LINE DENIM:
- Primary data was collected in regard to interacting with the vendors with regarding to
developing the products at the required costs.
- Secondary data was analysed from the cost sheets of the existing products to understand
the cost components and where there can be reduced.
30
SOURCING
Sourcing Department in the company is responsible for manufacturing/ delivering garments at
the right time and that too at agreed costs and pre-defined quality standards.
Sourcing Department go through the process in which products are planned, developed,
executed and presented to the various heads of the company. It includes directing and
overseeing the development of product line from start to finish. They do the costing of the
product and ensure to get the product at the price the buyers requires it with respect to its MRP
set by the buyer.
The sourcing department has to work in co-ordination with various other internal and external
departments so as to get the sampling and the bulk production done as required at the right time
and right price. It is very important for the sourcing team to be interacting with the other
departments regularly so as to keep track on any changes of any by the internal team in the
product and with the external vendors if they are facing any issue in the production in terms of
the product pricing or any reason what so ever.
Following are the departments with which the sourcing department co-ordinates with in its
entire process:
SOURCING
DESIGNERS
FINANCE
SUPPLY CHAIN /
WAREHOUSE
GARMENT VENDOR
FABRIC VENDOR
TECH / QA
CATEGORY
31
6.1 ROLES AND RESPONSIBILITIES OF SOURCING
DEPARTMENT
Product Development
Market and product Analysis
Selling the concept
Booking orders
Confirming Deliveries
Designing and Sampling
Costing
Raw Material
Flow Monitoring
Production Follow Ups
Payments Follows
Internal & external communication
Sampling
Lab dips
Accessories & trims
Preparing internal order sheets
Preparing purchase orders
Advising and assisting production,
Advising quality department about quality level
Mediating production and quality departments
Giving shipping instructions and following shipping,
Helping documentation department
Taking responsibility for inspections and
Following up the shipment.
32
6.2 SOURCING DEPARTMENTS IN PANTALOONS
6.3 BOTTOMS:
The bottoms department of the sourcing department is divided into two parts:
1. Denims
2. Non – Denims (Casual bottoms)
While there is a different fabric sourcing team which sources fabrics for all the fabrics Denim
is only the integrated team where one member is appointed in the team who exclusively sources
all the denim fabric. Also denim is the only team which sources denims of men’s, women’s
and kid’s categories while all the other sourcing departments are divided separately for all the
three worlds.
However for the non-denim team the fabric is sourced by the fabric sourcing departments and
they co-ordinate with them for the fabric. However they source for men’s and women’s world
both. There is no kid’s wear in this category.
KNITS
ETHNIC
WOVENS
BOTTOMSFLAT KNITS
FABRICS
TRIMS
33
6.4 SOURCING HIERARCHY
1
Sourcing department is headed by Mr. Rajesh Krishnan who is the overall sourcing head.
Mr. Amit Dashora is the General Manager who heads the sourcing for Bottoms and heads two
teams under him which is the denims and casual bottoms.
Mr.Sunil Sinha is the group manager for denims, Mr.Prabhu the assistant manager, Mr.Prashant
takes care of the Fabrics for denims and under him is Mr. Ghanshyam who is the wash expert.
Mr.Keyur is the Manager for Casual Bottoms with Mr.Pranav Mukhe who is the Deputy
manager and Mr.Prakash.
Sourcing Head
General Manager
Group Manager
Manager
Deputy Manager
Assistant Manager
Executive
34
6.5 WORK FLOW IN DENIM SOURCING DEPARTMENT
1.) DESIGN DEVELOPMENT TECH PACK
The designers design new styles and patters after studying the forecasted trends, styles and
prints which will be the new thing in the fashion arena and what the buyers wants in their brand.
Thus the themes and story boards are made for various options. Tech packs for the same are
developed with the help of the tech team with the complete details they want in the garment.
These tech packs are then handed over to the sourcing team to develop the samples.
2.) SAMPLE DEVELOPMENT
After receiving the tech packs from the design and category team the sourcing team get the
samples developed by the vendors with which it wants to create those styles in future if they
are required in bulk. After developing all the samples they are handed over to the category who
later present all the developed styles in their range presentation to the higher authorities. There
are also few styles which the vendors develop themselves and these are also given to buyer to
choose from.
Design development
tech pack
Sample development
Handover by buyer
Handover to vendor
Costing with the vendor
Costing with the buyer
Fabric / Trims order
Samplings FIT – WASH – PP
Approvals at each stage of
sampling
Issue PO and article file
Bulk wash approvals
Final dispatchTracking goods till warehouse
GRN
Payment follow up for the
vendor
Follow up of additional qtys in bulk, if any
35
3.) HANDOVER BY BUYER
After the range presentation is over styles are picked by the designers which they finally want
to put it on the store and their quantities and MRP’s are decided by the buyer. Handover is a
process where n the buyer sits with the sourcing personnel generally along with the fabric
personnel also and hands them over the selected styles with all the original samples that were
initially developed and all the details as to if any changes are required, colour options in each
styles, quantities, styling patterns, wash options, trims required etc.. Also the completed tech
packs which has all the details are given to the sourcing team. Discussions are held in detail so
that there is no confusion in understanding what the buyer requires.
4.) HANDOVER TO VENDOR
After having received the confirmed styles with quantities by the buyer the sourcing team now
has to decide on the vendor allocation for each styles. The vendors are selected carefully on
various parameters being:
Vendor who developed the original samples
Vendor capacity and washing facilities
Integrated vendor – fabric to garment
Complexity of the garment
Vendor speciality with the worlds (Mens, Women, Kids)
MRP of the garment
Past experience with the vendors
Repeat styles
After deciding the vendor, the samples are sent to the various vendor and detailed discussions
are held either in the office or in their factories along with the details regarding the styling,
wash options and any other changes in the sample garment so that the vendor can do the costing
of every styles and revert back.
36
5.) COSTING WITH THE VENDOR
After sending the original samples to the vendor with the details of the garment, the vendor
does his costings on every styles and sends them to the sourcing team. The sourcing team also
does the costing of each style before sending the samples to the vendor. Open Costings are
matched which is broken down to every single operation and trims used style wise, and
negotiations are done so as to reduce the price to lowest and to get the perfect product. If
costings by any vendor on any style or all the styles do not match then the style is moved to
other vendor and if all the costing do not match then the vendor is dropped and new vendors
are looked for.
6.) COSTING WITH THE CATEGORY
After closing the costings with the vendors the costings are to be closed with the buyers who
match them with their PC/MRP and negotiate again with the sourcing team to reduce the cost
to meet their margins. Changes are made in the styles if the cost if higher for the buyer so as to
reduce the cost and if any styles is way beyond what they can pay then the particular styles are
dropped. Once the costings are closed with the buyers they are again communicated with the
vendors and if any changes have been made are informed to them.
7.) FABRIC / TRIMS ORDER
After finalizing the vendors and confirmed styles, fabrics for the garments are ordered by the
sourcing team. Quantities are calculated style wise on the quantity of the garment required. The
fabrics are generally selected during the handovers if the fabric is as is the sample o if they
require any other fabric approvals are taken before the costings are done. After ordering the
fabric the details of fabric vendor are sent to the garment vendor and wise versa so they know
where they have to get the fabric from. If the vendor has an integrated fabric mill or can source
the fabric themselves they can do it, in the case we do not order the fabric from our end but the
approvals of each fabric style wise has to be taken by the sourcing and buying team before
samplings. Also the trims are ordered in bulk and the vendors have to take them from our
nominated vendor only.
37
8.) SAMPLINGS FIT – WASH – PP – GPT
After confirming the fabrics the vendors make the various samples which are required
according to PFRL standards. FIT sample is the first sample which are sent which come to
check the measurements of the garment according to the tech packs that they were provided
with. If fit is approved they go ahead with the PP sample and wash samples. In denim washes
are very important and thus cracking the proper wash recipe for each style is important and
approvals for the same have to be taken. PP samples are the samples which come for wash, fit
and all the actual trims which have been approved. It is important for each garment to pass
through few tests, which was earlier done by third parties but now PFRL has a lab in-house
their office so separate samples are sent for the same.
9.) APPROVALS AT EACH STAGE OF SAMPLING
Each samples which come for various stages in the office it’s the sourcing team which gets
them approved by the various departments and send them back to the vendor with the
comments that they have received. Vendors who do not send samples according to the
standards and most of their samples get rejected are to be looked upon and steps are taken for
them to make the proper samples. They are connected with the tech team of PFRL who discuss
where the mistake is happening and proper advice and patterns are given to the vendors.
10.) ISSUE PO AND ARTICLE FILE
Purchase order (PO) and the article files are then released by the category to the sourcing team
which has all the details about the price quantity and other details which is the official document
to prove that the company has made an order of certain garment to the vendor. Article file is
made style wise which has the barcode, article no. of the garment, details of the garment, vendor
and the company.
38
11.) BULK WASH APPROVALS
Washes being the most important feature in denims, once the bulk garment is ready their wash
has to be done in front of our expert and the wash has to be approved in bulk by the team.
Major variations in the wash create a problem and thus the vendor have to careful with the
wash in bulk orders. After the bulk wash is approved in the shipment sample can only the
factory go ahead with the final dispatch.
12.) FINAL DISPATCH
Before the final dispatch an inspection in conducted by PFRL for all the vendors of all the
styles where they need to have all the approved samples and then they are compared to the bulk
lot. Only after clearing the inspection does the good become eligible to leave the factory
premise for the final dispatch. There are few procedures that are to be followed by the vendor
for dispatching the goods. They have to apply for the ASN and inbound numbers after which
they can ship the goods. Sourcing team keeps a track of these activities.
13.) TRACKING GOODS TILL WAREHOUSE
Sourcing team also keeps a track of the goods while they are in transit till they reach the
warehouse of the company which are located at Barasat (West Bengal) and Jhajjar (Haryana)
from where further distribution is done by the company.
14.) GRN
Goods Receipt Number (GRN) is issued when the goods are received at the warehouse. Once
goods are received the GRN number is entered in the records by the sourcing team to keep a
track when the goods were received.
39
15.) PAYMENT FOLLOW UP
Payments to the vendors are done as per the company terms but it is the responsibility of the
sourcing team to follow up that the payments to their vendors are done on time and if any issue
is resolved quickly.
16.) FOLLOW UP OF ADDITIONAL QUANTITY IN BULK, IF ANY
For the core products the deliveries are generally required on monthly basis to replenish the
stock so their production and delivery is also tracked by the sourcing team. Also many a times
additional quantities are places for certain styles which have to be followed by the sourcing
team.
40
6.6 ROLES & RESPONSIBILITY OF DENIM FABRIC
SOURCING PERSONNEL
Fabric is the primary raw material of a garment that cost 60-80% of total garment cost. So it is
very important to handle fabric souring carefully in garment house to meet the target cost.
Responsibility of the fabric sourcing personnel includes followings but not limited to these:
Development of fabric suppliers for different types of fabrics (domestic and international
level)
Product (fabric and/or yarn) development as per buyer requirement
Fabric price negotiation with suppliers
Study market trends, latest finishes and fabric developments
Research on yarn price and market trend
Fabric costing
Sourcing yarn and get knitting done from knitting subcontractors (In case factories are not
sourcing finished fabric)
Dealing with fabric sourcing - sourcing of greige fabric or finished fabric from suppliers
Wet processing (specially dyeing) get done from dyeing mills
Printing and embroidery getting done (in case printing and embroidery process is done on
fabric)
Dealing with fabric supplier for quality related issues, fabric to be reprocessed and rejected
fabrics
Fabric inventory management
Coordination with buyers / buying house for fabric quality parameters, fabric development
Dealing all documentation works like PO raising, making suppliers' Payments, follow-up
with transporter and getting material in-house
Developing fabric reference library
41
6.7 SAMPLING PROCESS
DEVELOPMENT SAMPLES
The first physical version of sample garment in product development stage prepared as per the
artwork. These are generally started after the design team has decided to develop samples based
on new themes or newer inspirations or popular designs of the competitors. These are
developed by the sourcing team from its vendors whom they think is capable of making the
particular designs. For denims over 80 developments samples are made in every brand for every
season.
PROTO SAMPLE
This sample is the proto type of new design created by designers. This is the first sample in
sampling stage for bulk production. Proto sample is made to communicate the design of a style
or a line or to present garment structure. In proto samples fit and fabric detailing is not been
considered.
FIT SAMPLE
Once proto sample is approved, FIT is being made with actual measurement. Modification on
the pattern is done to get desired fit of the garment. FIT is one of the most important factor to
be considered during sample development. FIT sample is being tested on live model or Dress
form for to verify garment fit and fall.
WASH SAMPLE
For denims wash is one of the most of the important component of the garment thus wash
samples are developed by the vendor and sent for approvals. The wash of the denim should
match the original in terms of its dry and wet process. Only after wash is approved are the PP
samples made. In few cases PP samples also come for wash approvals of the vendor is a
champion in denims.
42
GPT SAMPLE:
GPT samples are samples which are made with original fabric and trims and are sent to the
company’s in-house testing lab to check for quality and safety purposes. Unless a garment
passes the GPT it cannot be proceeded with the bulk production. There are various different
test that are conducted on the garment as required by the garment and depending on its end use.
PRE-PRODUCTION SAMPLE:
All the above samples are made in sampling department. Buyer wants pre-production sample
(PP sample) to be made in actual production line, so that operators know what are they going
to make. This sample is made with actual fabric, trims and accessories and made by sewing
line tailors. PP sample must be approved by buyer or buying house merchants (technical
persons) prior to proceeding actual production.
SHIPMENT SAMPLE
When style is being finished and packed for shipment, 2-3 finished and packed pieces with all
packing details are kept for future reference. Shipment sample is kept by factory and buyer.
The approved shipment shipment samples is sent to the vendor and a counter is kept by the
buying team. Then the shipment is sent directly to warehouse and buyer do not get garment out
of the shipment. That is why they keep shipment sample for future reference.
PHOTO SHOOT SAMPLE
These are additional samples which are called for selected styles which are also sold through
online portals. So special samples with all the tags and trims are called for photoshoot for online
merchandising of the products on the portal.
43
FIT – FABRIC CONSUMPTION MATRIX
7.1 NEED FOR A FIT FABRIC MATRIX
To reduce cost
To standardise consumption allowed for a basic five pocket garment
To have a standard grid for the most frequently used fabrics
To be able to compare the change in costs for shifting the style from one fit
/ fabric to another
44
7.2 COST BREAK UP – DENIMS
To understand the need of such a matrix it is 1st very important to understand how fabric plays
a vital role in the cost of the product. It’s all about saving cost and thus it becomes essential to
study the contribution of each component in a denim.
In women’s world:
42% of the cost of a bare denim jeans is that of the fabric.
16% of the cost in bare denim are of the trims that are used in the garments which is a
major chunck of the cost.
As for SF jeans 39% of the cost is of the fabric.
About 19% of the cost are of the trims that are used in the denims.
42 39
17 17
119
1313
22
1619
0
20
40
60
80
100
120
BARE DENIM SF JEANS
WOMENS
FABRIC CMT WASHING
MARGIN VALUE ADDITONAL TRIMS
45
In men’s world:
44% of the cost incurred to make a Bare Denim is that of the fabric that is used.
Since men’s denim have heavy washes as compared to a women’s denim wash cost is
also about 12% in Bare Denim.
In SF 42% of the cost of a denim is that of the fabric used.
13% of the cost is of the heaving washes that are done on an SF Denim.
Trims in Bare Denim constitute 15% of the cost in both Bare and SF.
44 42
15 16
12 13
11 133 1
15 15
0
20
40
60
80
100
120
BARE DENIM SF JEANS
MENS
FABRIC CMT WASHING
MARGIN VALUE ADDITONAL TRIMS
46
In Kid’s world:
For Bare 34% of boys denim’s cost is that of the fabric while 38% of girl’s denim is
that of the fabric.
For chalk kids the cost comes up to 30% for the fabric.
However for Chirpie Pie which is the infant wear the cost of fabric is less at only about
20% because they are small garments.
The majority of the cost here is paid for CMT since making charges for smaller
garments are more than that of an adults garment.
Trims cost for kids garments are the highest since many value additions like
embroidery, applique work, suspenders, belts etc.. are added in kids garments and thus
their share in the total cost is almost 1/5th of the total garment.
34 3830
20
2119
2231
13 1114 14
13 12 13 14
1 1 1 1
18 19 20 19
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BARE BOYS BARE GIRLS CHALK CHIRPIE PIE
KIDS
FABRIC CMT WASHING
MARGIN VALUE ADDITONAL TRIMS
47
7.3 COST BREAK UP - CASUAL BOTTOMS
For Casual bottoms –
For Ajile fabric contributes 31% of the total cost followed by the CMT at 30% and trims
at 26% however the wash cost and value addition is almost negligible in the cost.
For Bare Leisure a wooping 45% of the total cost is of the fabric followed by CMT at 22%
and trims at 20%
For Byford, SF and Urban eagle also the cost of fabrics stand above 40 % with about 21%
for CMT. The trims for Byford are at 20% meanwhile for others at 13% and 16%
For women’s world in candies 48% of the total cost in incurred by the fabric that is used
in the garment followed by 24% for CMT and 15% for trims.
31
45 42 40 4148
30
22 2422 19
24
2620 20
13 16
15
1 4 4
13 12
32 0 0 0 0 010 9 10 12 12 10
0
20
40
60
80
100
120
Ajile Bare Leisure Byford SF Jeans Urban Eagle Candies
NON DENIM – CASUAL BOTTOMS
FABRIC CMT TRIMS WASH VALUE ADDN MARGIN
48
7.4 FACTORS AFFECTING FABRIC CONSUMPTION
Fabric width
Fabric shrinkage
Fabric stretch
Ratio of cutting
Layer length of table at factory
Type of grain lines
7.5 FACTORS AFFECTING FIT
End consumer requirement
Body fit structure variation person to person (example – levi’s)
Proper specking
Product requirement
Perfection in patterning by factory – shaping / contours
Dummy standards measurements
49
CATEGO
RYFITS
CONSUM
PTION
(in me
ter)FAB
RIC CO
DECON
TENT
WIDTH
WEFT S
HRINKA
GEWA
RP SHR
INKAGE
STRETC
HABILTY
INSEAM
MENS
SLIM / T
APERED
1.42BET
-498
98.6% C
OTTON
1.4% E
LASTIN
E56"
-10% to
-16%
0 - 3%
25%33"
MENS
SKINNY
1.4A/2
32199%
COTTO
N 1% E
LASTIN
E54"
-10% to
-14%
0 - 3%
35%33"
MENS
STRAIG
HT1.28
712456
1 / 501
95100
% COTT
ON60"
-4%0 -
3%0
33"
MENS
COMFOR
T1.26
2064AL
W100
% COTT
ON65"
-4%0 -
3%0
33"
WOME
NSSLIM
1.3PD-
4259
83.2% C
OTTON
15.4%
POLY 1.
4% ELA
STINE
54"-4%
to -8%
0 - 3%
28%31"
WOME
NSSLIM
1.22PD-
4259
83.2% C
OTTON
15.4%
POLY 1.
4% ELA
STINE
54"-4%
to -8%
0 - 3%
28%27"
WOME
NSSKIN
NY1.32
921714
98% CO
TTON 2
% ELAS
TINE
52"-8%
to -14
%0 -
3%27%
31"
WOME
NSSKIN
NY1.26
921714
98% CO
TTON 2
% ELAS
TINE
52"-8%
to -14
%0 -
3%27%
27"
WOME
NSSUP
ER SKIN
NY1.38
51748
75% CO
TTON 2
2% POL
Y 3% ELA
STINE
47"-9%
to -14
%0 -
3%45%
31"
WOME
NSSUP
ER SKIN
NY1.32
51748
75% CO
TTON 2
2% POL
Y 3% ELA
STINE
47"-9%
to -14
%0 -
3%45%
27"
KIDS/G
IRLS - C
HALK
SKINNY
0.75517
4875%
COTTO
N 22%
POLY 3%
ELASTIN
E47"
-9% to
-14%
0 - 3%
45%19"
KIDS/G
IRLS - B
ARESKIN
NY1
51748
75% CO
TTON 2
2% POL
Y 3% ELA
STINE
47"-9%
to -14
%0 -
3%45%
27"
KIDS/B
OYS - C
HALKS
LIM / T
APERED
0.75497
6271%
COTTO
N 28%
POLY 1%
ELASTIN
E52"
-6% to
-8%0 -
3%25%
19"
KIDS/B
OYS - B
ARESLIM
/ TAPE
RED1
49762
71% CO
TTON 2
8% POL
Y 1% ELA
STINE
52"-6%
to -8%
0 - 3%
25%27"
50
CATEGORY
BRAND
PRODUCT
FITSCONS
UMPTION
FABRIC NA
MECOUN
T / CONSTR
UCTION
CONTENT
WIDTH
WEFT SHRIN
KAGEWARP
SHRINKAGE
STRETCHAB
ILTYINSEA
M
MENSAJILE
SHORTS
REGULAR
0.8PLAIN
40 * 40 / 13
2 * 96100%
COTTON
57" - 58"
-2% to -3%
+/-2 %NIL
6"
MENSAJILE
THREEFORT
HREGU
LAR1.06
PLAIN40 * 4
0 / 132 * 96
100% COTT
ON57" - 5
8"-2% to
-3%+/-2 %
NIL16"
MENSAJILE
TRACK
REGULAR
1.4PLAIN
40 * 40 / 13
2 * 96100%
COTTON
57" - 58"
-2% to -3%
+/-2 %NIL
31"
MENSAJILE
SHORTS
REGULAR
0.8PLAIN
141 * 93 / 7
5D * 75D
100% POLY
ESTER57" - 5
8"0
0NIL
6"
MENSAJILE
THREEFORT
HREGU
LAR1.03
PLAIN141 *
93 / 75D * 7
5D100%
POLYESTER
57" - 58"
00
NIL16"
MENSAJILE
TRACK
REGULAR
1.36PLAIN
141 * 93 / 7
5D * 75D
100% POLY
ESTER57" - 5
8"0
0NIL
31"
MENSBARE
LEISURE
TROUSER
SLIM1.27
CAVELRY TW
ILL20 * 2
0 / 136 * 66
100% COTT
ON57" - 5
8"-2% to
-3%+/-2 %
NIL35"
MENSBARE
LEISURE
TROUSER
REGULAR
1.28CAVE
LRY TWILL
20 * 20 / 13
6 * 66100%
COTTON
57" - 58"
-2% to -3%
+/-2 %NIL
35"
MENSBARE
LEISURE
TROUSER
SLIM1.36
BROKEN TW
ILL20 * 1
6 / 132 * 60
98% COTTO
N 2% LYCRA
52" - 53"
-5% to -6%
+/-2 %22%
35"
MENSBARE
LEISURE
TROUSER
REGULAR
1.38BROK
EN TWILL
20 * 16 / 13
2 * 6098% C
OTTON 2%
LYCRA52" - 5
3"-5% to
-6%+/-2 %
22%35"
MENSBARE
LEISURE
SHORTS
REGULAR
0.85LIGHT
TWILL
32 * 32 / 15
8 * 86100%
COTTON
57" - 58"
-2% to -3%
+/-2 %NIL
9"
51
CATEGOR
YBRAN
DPRO
DUCT
FITSCON
SUMPTIO
NFABR
IC NAME
COUNT /
CONSTRU
CTION
CONTENT
WIDTH
WEFT SH
RINKAGE
WARP SH
RINKAGE
STRETCHA
BILTYINSE
AM
MENS
BYFORD
TROUSER
SLIM1.24
WEFT CO
RD30 *
40 / 144 *
72100%
COTTON
57" - 58"
-2% to -3
%+/-2
%NIL
33"
MENS
BYFORD
TROUSER
REGULAR
1.26WEF
T CORD
30 * 40 /
144 * 72
100% COT
TON57" -
58"-2%
to -3%
+/-2 %
NIL33"
MENS
BYFORD
TROUSER
SLIM1.36
2/2 MAT
T LYCRA
20 * 16 /
132 * 60
98% COTT
ON 2% LY
CRA52" -
53"-5%
to -6%
+/-2 %
22%33"
MENS
BYFORD
TROUSER
REGULAR
1.382/2
MATT LY
CRA20 *
16 / 132 *
6098%
COTTON 2
% LYCRA
52" - 53"
-5% to -6
%+/-2
%22%
33"
MENS
BYFORD
SHORTS
REGULAR
0.85CAN
VAS16 *
12 / 104 *
50100%
COTTON
57" - 58"
-2% to -3
%+/-2
%NIL
9"
MENS
BYFORD
SHORTS
REGULAR
0.95TWI
LL LYCR
A30 *
20 / 180 *
8098%
COTTON 2
% LYCRA
52" - 53"
-5% to -6
%+/-2
%22%
9"
MENS
URBAN EA
GLETROU
SERSLIM
1.4SATI
N LYCRA
30'S * 20
98% COTT
ON 2% LY
CRA52"-
53"-5%
to -6%
+/-2 %
22%33"
MENS
URBAN EA
GLETROU
SERREGU
LAR1.43
TWILL LYC
RA30'S
* 20 / 180
* 8098%
COTTON 2
% LYCRA
53" - 54"
-5% to -6
%+/-2
%22%
33"
MENS
URBAN EA
GLETROU
SERSLIM
1.38TWIL
L30'S
* 20 / 158
* 84100%
COTTON
57" - 58"
-2% to -3
%+/-2
%NIL
33"
MENS
URBAN EA
GLETROU
SERREGU
LAR1.41
TWILL
30'S * 20
/ 158 * 84
100% COT
TON57" -
58"-2%
to -3%
+/-2 %
NIL33"
MENS
URBAN EA
GLESHO
RTSREGU
LAR0.85
TWILL
30'S * 20
/ 158 * 84
100% COT
TON57" -
58"-2%
to -3%
+/-2 %
NIL8"
MENS
URBAN EA
GLESHO
RTSREGU
LAR0.91
TWILL LYC
RA30'S
* 20 / 180
* 8098%
COTTON 2
% LYCRA
53" - 54"
-5% to -6
%+/-2
%22%
8"
MENS
URBAN EA
GLECARG
OREGU
LAR1.65
TWILL
30'S * 10
/ 156 * 66
100% COT
TON57" -
58"-2%
to -3%
+/-2 %
NIL33"
MENS
URBAN EA
GLECARG
OSLIM
1.55TWIL
L30'S
* 10 / 156
* 66100%
COTTON
57" - 58"
-2% to -3
%+/-2
%NIL
33"
52
CATEGORY
BRAND
PRODUCT
FITSCONS
UMPTION
FABRIC NAM
ECOUN
T / CONSTRU
CTIONCONT
ENTWIDTH
WEFT SHRIN
KAGEWARP
SHRINKAGE
STRETCHABI
LTYINSEA
M
WOMENS
HONEY
SHORTS
SLIM0.65
TWILL LYCRA
30 * 20 / 17
2 * 7698% C
OTTON 2% LY
CRA53" - 5
4"-5% to
-6%+/-2 %
22%4.5"
WOMENS
CANDIES
SHORTS
SKINNY
0.78TWILL
LYCRA32* 2
0 / 198 * 54
97% COTTON
3% LYCRA
47" - 48"
-12% to -20%
+/-3%33%
4.5"
WOMENS
HONEY
CAPRISLIM
0.95TWILL
LYCRA30 * 2
0 / 172 * 76
98% COTTON
2% LYCRA
53" - 54"
-5% to -6%
+/-2 %22%
18"
WOMENS
HONEY
CAPRISKINN
Y1.03
TWILL LYCRA
32* 20 / 19
8 * 5497% C
OTTON 3% LY
CRA47" - 4
8"-12% t
o -20%+/-3%
33%18"
WOMENS
CANDIES
CAPRISUPER
SKINNY
1.14SATIN
LYCRA40 * 1
6 / 224 * 50
97% COTTON
3% LYCRA
47" - 48"
-10% to -12%
+/-3%33%
18"
WOMENS
HONEY
ANKLE LENG
THSLIM
1.1SATIN
LYCRA30 * 2
0 / 180 * 68
98% COTTON
2% LYCRA
52" - 53"
-5% to -6%
+/-2 %22%
27"
WOMENS
RIGANKLE
LENGTH
SKINNY
1.3TWILL
LYCRA32* 2
0 / 198 * 54
97% COTTON
3% LYCRA
47" - 48"
-12% to -20%
+/-3%33%
27"
WOMENS
HONEY
FULL LENGTH
SLIM1.18
SATIN LYCRA
30 * 20 / 18
0 * 6898% C
OTTON 2% LY
CRA52" - 5
3"-5% to
-6%+/-2 %
22%29"
WOMENS
HONEY
FULL LENGTH
SKINNY
1.4TWILL
LYCRA32* 2
0 / 198 * 54
97% COTTON
3% LYCRA
47" - 48"
-12% to -20%
+/-3%33%
31"
WOMENS
HONEY
FULL LENGTH
SUPER SKINN
Y1.17
POLY COTTON
LYCRAIMPOR
TED WARP W
AY LYCRA71% P
OLYESTER 26
% COTTON 3
% LYCRA57" - 5
8"- 3% to
-5% -5 to -
633%
31"
53
TRIMS
An apparel or any other textile product is incomplete as far as it is not finished
with trims, closures and accessories. A dress, a bag or any such product has to be fitted with
closures like buckles, buttons, clips, elastic fasteners, grommets, hook and eye, hook and loop,
metal fasteners, plastic fasteners, rivets, snaps, velcro , zippers etc.. so that it doesn't loose its
functionality. Other support accessories are also required sometimes for comfort or added
functionality of the product. These may include bra cups, bra fillers, bra molding, collar stays,
corsets, felt, fusibles, interfacings, interlinings, linings, quilted linings, shoulder pads, sleeve
heads, suspenders, underwire, waistbands etc. For giving style and designer look to a piece of
textile product, many types of trims are also prevalent including apparel logos, appliques,
embroidered emblems, embroidery patterns, reflective trim, ruffles, yokes, ribbons, laces,
tapes, Webbings, Cords, Straps etc.
Anything attached to a garment except the main fabric are trims.
8.1 IMPORTANCE OF TRIMS:
COMPLETES THE FUNCTIONALITY OF A GARMENT – Trims are very important to
convert a fabric into a garment and also to complete its functionality. Ex: A garment cannot be
stitched in the first place without a thread which is one of the most basic and also a major trim
that is used in any garment. Or for a bottom for a man, it cannot be complete until buttons,
pocketing and zippers are used in the garment.
ENHANCES THE AESTHETICS – These days many fancy trims like laces, fancy zippers,
bows, flowers etc are used in the garments which enhances the aesthetics of the garment and
makes its more pleasing to the eye.
PHYSICAL STABILITY – Trims likes threads, tape, interlinings provide stability to the
garment without which a garment would not drape.
MODE OF BRANDING – Branded patches, labels, buttons, rivets, logo embroidery, etc..
have become a major mode of branding for the company. It is because of these that they are
able to distinguish their brand in a pool of many branded items.
54
A MAJOR PART OF THE COST – Trims are a major part of the cost of manufacturing of
any garment. As in the above graph we come to know that cost to 20% of a garment cost are
that of trims.
8.2 TYPES OF TRIMS
Trims are majorly of two types:
1. Sewing trims
2. Finishing trims
SEWING TRIMS
Sewing trims are the trims that are attached to the main garment while its production and are
very important for converting a fabric into a complete garment. A few sewng trims are as
follows that are used in a denim:
SEWING THREAD:
Swing threads are made by yarn multiplying because it should have sufficient strength to
absorb tension during swing operation.
INTERLINING / FUSING:
Interlining is one kind of accessories that is used between the two layers of fabric in a garment.
To keep the different component or part of apparel in a desired shape & strength a kind of
fabric is used between the two ply of fabric by swing or fusing is called interlining. It is done
on the waist bands in a denim.
ELASTIC:
A term used to describe narrow fabrics incorporating elastomeric fibers, which extend when
stretch & recover their original dimension when the stretching is removed. Used in waist bands
for womens and kids denims and in jeggings.
ZIPPER:
A fastening device operating by means of two parallel rows of metal or plastic teeth on either
side of a closure that are interlocked by a sliding tab is called zipper. These are used in industrial
55
clothing, typical apparel garments as a closure in pants, skirt & dresses. Basically it is the part
of chain.
LABELS:
Various labels are attached to a garment. The main label (Brand Label), Size label, Care label,
Article label.
TAGS:
Fit tags are attached in denims to indicate the fit that it is made for. For kids many a times age
group is mentioned in this tag.
LEATHER FLAG:
Leather flag is used in a few style of sf jeans to give an extra addition to the garment and to a
different feel.
FINISHING TRIMS
BUTTONS:
A button is a small fastener, most commonly made of plastic, but also frequently of seashell,
which secures two pieces of fabric together.
RIVETS:
A rivet is a permanent mechanical fastener. Before being installed, a rivet consists of a
smooth cylindrical shaft with a head on one end. The end opposite the head is called the tail.
Used in the pockets of a denim.
MAIN TAG:
Main tag is the brand tag which is attached to the garment which has the brand logo, tag line
and other details.
56
PRICE TICKET:
Price ticket or the barcode tag is the tag which has all the details about the garment regarding
its colour, style number, price, date of manufacture, vendor details etc..
DISCLAIMER TAG:
The disclaimer tag mentions: This garment is crafted to present unique design and aesthetic
look. Even so due to the distinctive dyeing process, the colour may bleed or rub off onto
lighter surface.
STRETCH TAG:
For certain styles where stretch fabric is used the garment carries a separate tag indicating
that it’s a stretch garment.
FIT TAG:
A fit tag is tag which indicated the waist size of the denim along with the fit of the denim. It
may be regular, slim, skinny, super skinny, jeggings.
STORY TAG:
Many a times the brand follows a theme or a story of the season and thus has a extra tag
which indicated the theme or story and gives details about it. It is also widely used in the kids
garments.
METAL TAB:
Metal tab is a small metal piece which has the brand name on it and is used to give the
garment more branding.
57
8.3 STANDARD FORMAT FOR COSTING OF TRIMS –
BRAND WISE
Since the branding for each private label is different there are various trims different kinds of
trims used in these brands so as to differentiate the brands from each other. There are a few
trims which are quite costly and only used in few styles to give a better aesthetic feel and it
becomes very important to account for those trims too during the costing.
Thus is a proposed format for all the trims that are to be used in AW 15 collection brand wise
so that no trims are missed out during the open costing, because a few trims are expensive but
are being used in a few styles and if their costs are missed during the costing it would be a
problem at later stages.
58
BARE MENS
AMOUNT PRICE QUANTITY REMARKS
Body fabric
Cons
Fabric cost
Pocketing
Contrast
TOTAL
TRIMS
Sewing Trims
Main Label 1.3 1.3 1
Size Label 0.12 0.12 1
Coin pocket label 0.8 0.8 1
Fit label 0.6 0.6 1 5% Vat or 2% CSt against C form
Fit tag 0.85 0.85 1 5% Vat or 2% CSt against C form
Leather patch 14 14 1 12.5% VAT or 2% CST against C form
Paper patch 0 6.25 12.5% VAT or 2% CST against C form
Wash Care 0.31 0.31 1
Article Tab 0.35 0.35 1
Sewing thread 18 18 1
Zipper 12 12 1
Zipper 2 0 0
Micro dot Fusing 3.00 3 1 18 cm only on lycra denims
Sub total 51.33
Finishing Trims
BUTTONS:
30L-WH20-TMSBDM1405 3.45 3.45 1 12.50%VAT or 2% CST against C form
32L-WH20-TMSBDM1411 0 3.75 12.50%VAT or 2% CST against C form
32L-WH28-TMSBDM1410 0 3.75 12.50%VAT or 2% CST against C form
RIVETS: 0
9.5MM-WH20-TMRBDM1408 2.4 1.2 2 12.50%VAT or 2% CST against C form
9.5MM-WH28- TMRBDM1407 0 1.2 12.50%VAT or 2% CST against C form
9.5MM-WH87-TMRBRM1406 0 1.3 12.50%VAT or 2% CST against C form
Main Tag 1 1 1
Price Ticket 0.55 0.55 1
59
Disclaimer tag 0.5 0.5 1
Poly Bag 2 2 1
Carton 4 4 1
Miscellaneous 4 4 1
Sub total 17.9
Trims total (A+B) 69.23
CMP
WASH
Total 69.23
60
SF WOMENS
AMOUNT PRICE QUANTITY REMARKS
Body fabric
Cons
Fabric cost
Pocketing
Contrast
TOTAL
TRIMS
Sewing Trims
Main Label 1.42 1.42 1
Size Label 0.15 0.15 1
Wash Care 0.31 0.31 1
Leather patch 7 7 1
Article Label 0.35 0.35 1
Sewing thread 20 20 1
Zipper 20 20 1
Zipper 2 0 1
Micro dot Fusing 0 3
Sub total 49.23
Finishing Trims
BUTTONS:
SF-BTN-02 -GUN
METAL 0 3.98 0 2% 12.50% VAT or 2% CST against C form
SF -BTN -01 6.6 6.6 1 2% 12.50% VAT or 2% CST against C form
SF-BTN-02 (COPPER) 0 3.98 2% 12.50% VAT or 2% CST against C form
SF-BTN-02 (GOLD) 0 3.98 2% 12.50% VAT or 2% CST against C form
RIVETS: 0 2%
SF-RVT-01 (COPPER) 5.2 1.3 4 2% 12.50% VAT or 2% CST against C form
SF-RVT-01 (GUN
METAL) 0 1.3 2% 12.50% VAT or 2% CST against C form
SF-RVT-01 (GOLD) 0 1.3 2% 12.50% VAT or 2% CST against C form
Main Tag 2.52 2.5 1 2% 5% VAT or 2% CST against C form
BARCODE 0.57 0.55 1 2% 5% VAT or 2% CST against C form
Disclaimer Tag 0.5 0.5 1
61
Fit tag 0.85 0.85 1
Poly Bag 2 2 1
Carton 4 4 1
Miscellaneous 4 4 1
Sub total 26.24
Trims total (A+B) 75.47
CMP
WASH
Total 75.47
62
VALUE LINE DENIM
9.1 NEED FOR A VALUE LINE DENIM
To develop a price starter product in denims
To understand the costings of the existing core lines and find ways to
reduce them
To target a new segment of market in terms of denims
63
9.2 MENS VALUE LINE DENIM
Men’s denim offered by the value brand of PFRL started at a price range of four digits as
against its competitors which were offering denims at three digits value also and thus there was
a gap in the product range that we were offering and a new segment of market that could be
targeted at which would want to buy a branded denim for a lower MRP.
To develop a range of value line denims for men’s it is very important to be able to procure the
denim at a lesser cost than the core line which is already existent with the brands.
Following are a few points which were considered while the development:
- A price starter product was to be introduced for the AW15 collection in denims at a price of
Rs.899 as against that of Rs.1099 which is current core product, the price starter for Bare
denim.
- In a men’s denim the basic trims such as buttons, zippers and pocketing cannot be eliminated
as they are functionally very important in a men’s garment.
- So cost cannot be cut on these fronts, and thus it has to be reduced on the other components
such as fabric, washes and CM.
- In a common practice the styles are decided first as to the look of the garment, the washes,
fabrics and then costings are done for the same.
- But for a value line the cost was decided first in ratio with the MRP set for an entry level
product. Thus the MRP decided was Rs.899 and the cost Rs.340.
- But having a low MRP does not mean compromising on the quality standards which are
maintained by PFRL private label brands and that any parameter would be ignored in terms
of styling and fits.
- To be able to procure a garment at this cost and in lines with the PFRL standard it was very
important to select a proper vendor who would be able to produce the garment at this cost.
- Thus it was decided to select a vendor who produces denim fabrics and has in-house garment
factory, and works for less CMP. This would not hamper much on the profits of the vendor
because less CM would be compensated by huge quantities of the garment.
- This reduces the lead time for fabrics, and also saves on the cost of transportation of the
fabric from the fabric vendor to the garment factory.
- Thus Nisaan, in ahmedabad was selected which has an integrated fabric mill and a garment
factory.
64
- Here the vendor was asked to develop styles in the given cost bracket and give us option for
the same. Thus the vendor developed about 25 options out of which 15 options were
selected with an order of 2000 pcs each.
- This line is especially created for Tier 2 n Tier 3 cities and is being produced in bulk which
is 30000 pieces to start with.
- The motive was not just to create a new line and just benefit the company by saving cost but
also to develop the vendor in spite of working on low CMP by giving huge quantities so that
the factory is on a continuous run.
- The line has come out beautifully and has few styles which are aesthetically better looking
than the regular core products too.
65
Following is the comparison between the pricing of the product and how we have been able to
achieve it.
Below is the open cost sheet of the core bare denims:
CORE LINE
FAB SORT# SPARKLE SUNRISE EXOTIC
STYLE S-1 S-2 S-5
FIT TAPERED TAPERED SKINNY
FAB PRICE 175 180 175
CONSUMPTION 1.4 1.4 1.38
TOTAL 245 252 241.5
CMP 80 80 80
WASH 40 40 40
THREAD 12 12 12
POCKETING 12 12 12
YKK ZIPPER 9 9 9
BUTTONS @
RIVETS(1*2/4/2) 6.3 8.75 6.3
LABELS 3.15 3.15 3.15
TAG 3.92 3.92 3.92
LEATHER PATCH 6.4 6.4 6.4
PP BAG 2 2 2
CARTONS 2.5 2.5 2.5
EMB. 6 0 6
TRANSPORTATION 3 3 3
TOTAL 431.27 434.72 427.77
PROFIT 13% 56.0651 56.5136 55.6101
TTL AMOUNT 487 491 483
NET COST 487 491 483
66
Following the open cost sheet for the Value line denim:
VALUE LINE
LYCRA NON LYCRA
FIT SKINNY/SLIM
TAPERED
SLIM
TAPERED/STRAIGHT
FAB PRICE 130 125
CONSUMPTION 1.32 1.24
TOTAL 171.6 155
CMP 60 60
WASH 30 30
THREAD 8 8
POCKETING 10 10
YKK ZIPPER 9 9
BUTTONS @
RIVETS(1*4) 7.5 7.5
LABELS 3.25 3.25
TAG 3.92 3.92
PAPER PATCH 6.4 6.4
PP BAG 2 2
CARTONS 2.5 2.5
EMB. 6 6
TOTAL 320.17 303.57
3% REJECT
TOTAL 320.17 303.57
PROFIT 13% 38.42 36.43
TTL AMOUNT 359 340
NET AMOUNT. 359 340
OUR COSTING 350 340
When both are compared the most significant difference is with the fabric price, wash price
and the CMP. The difference between the costs are only because of this parameters but the
difference between the two products are not much as regards to the cost.
67
9.3 WOMEN’S VALUE LINE
The women’s line offered in denim starts at four digits value including the jeggings that are
being offered and thus there was a gap in the price range of three digit value which the brand
wanted to address by creating a new product line which can be the value line for women’s.
As in the case with mens denim the cost plays a vital role even here and thus to achieve it is
important to reduce cost.
A new product was developed to the price starter range which was as follows:
- A pull up jeggings was decide to be introduced.
- Buttons, rivets, zippers were removed which reduced a significant amount of cost.
- Also the pocketing was removed and dummy pockets were made.
- The waist band embroidery of the brand and the leather back patch of the brand name
was also removed
- Apart from these the fabric chosen was also of the lesser cost and a lighter fabric as
compared to the jeggings and core denim.
- Since many elements are removed even the CM of the garment came down and being
a pull up jeggings washes were also kept basic with just the rinse and enzyme wash.
- Thus the product was developed in Rs.295 as against the core denim which was being
produced at about Rs.402
- Thus a new product has been developed all together to be introduced at the price starter
MRP.
68
FRAMEWORK FOR DATA TRACKING FOR AW 15
FOR DENIMS
There are various people involved in the denim team who have different responsibilities to
play. The production / approvals, fabrics, and washing are all handled by different people and
they maintain separate records of their data and various sample approvals that they give
individually. Thus it becomes difficult at times because one person might not have immediate
data of what styles have been approved or disapproved by the other person. Thus a master grid
containing every single data about each and every style was created on a google spreadsheet
so that everyone could edit the same sheet with their data and it would be a ready reference so
that the entire team is in sync with the work.
This grid is a combination of all the data of the product style wise plus the TNA calendar of
each style which the vendor has provided with regards to its sampling and the production.
Following were the data updated for every style in the grid:
1. Serial no.
2. Category
3. MC
4. Brand
5. Style number
6. Colour
7. Quantity
8. Store
9. Jabong
10. Jabong outright
11. Myntra
12. Flipkart
13. Trend in
14. Amazon
15. Total quantity
16. Buyer target cost
17. Vendor cost
69
18. Closed with buyer
19. FOB price
20. Vendor
21. Shoot sample
22. Fabric
23. Fabric mill
24. Fabric price
25. Wash price
26. PO
27. Online PO’s
28. EAN
29. Article description
30. Article Code
31. MRP
32. Fabric date (Plan/Actual)
33. Wash approval (Plan/Actual)
34. Wash remarks
35. Fit sample (Plan/Actual)
36. Size set (Plan/Actual)
37. GPT sample (Plan/Actual)
38. PP sample (Plan/Actual)
39. Cutting date (Plan/Actual)
40. Sewing date (Plan/Actual)
41. Washing date (Plan/Actual)
42. Finishing date (Plan/Actual)
43. Ex Factory (Plan/Actual)
70
11.1 SUGGESTIONS
After having worked in the company for over three months and getting involved extensively in
the work there were a few observations that I had and thus taking into account the observations
are a few suggestions for the organization.
1. Avoid or minimize making changes after the handover is done from the buying team
2. Have a complete clarity with complete data of styles while handovers
3. Vendor having complete in-house facility should be preferred for complex style,
this saves time
4. Better understanding between the various departments internally of their need and
problems
5. Seamless flow of information between different teams
The following suggestions have been submitted to the concerned authorities in the company
for further action.
71
11.2 KEY LEARNINGS
During my Graduation project my team members in the company were very kind and have
helped me in learning many thing about the product, process and various other aspects of the
industry which are as follows:
1. Understanding denim as a product and its various components
2. Understanding the various washes in a denim
3. The concepts of sourcing, its methodology and is process flow
4. Technical and quality aspects of a denim
5. Sampling stage of denims
6. The detailed handover process from the category to the sourcing team
7. Vendor allocation and handover to selected vendors
8. Open costing of the product
9. Working out the costing for the Product, Cost Negotiations with vendors
10. Closing costs with the category
11. Taking the trims and fabric approvals
12. Various sample products made before the bulk – fit, wash, PP samples
13. Requirements to take approvals of samples at each stage
14. Stages of production of a denim garment
15. Interaction with the vendors over calls and in person
16. Monitoring the order status & achieving the Production targets within time
17. Maintaining the complete data of all styles of a season
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WEBLIOGRAPHY
www.adityabirla.com
http://www.adityabirlanuvo.net/
http://pantaloons.com/
http://www.trendin.com/
http://www.indiaretailing.com/Fashion/7/1/83/12640/Denim-Market-in-India-
http://www.elizabethancostume.net/fabuse.html