meera umarao & srinivas

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    A

    paper on

    Global retailing in apparel

    BY

    Mr.Shrinivas Gabale

    &

    Ms.Meera Waghmare(T.Y B-tech)

    Shri Guru gobind Singhji Inst. of Engg.&Technology, Nanded

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    CONTENTS

    1. INTRODUCTION.

    2. MARKET DEFINATION.

    3. CLOTHING STORES.

    4. PRODUCTS IN APPAREL.

    5. MENSWEAR - TOP 5 EMERGING MARKETS.

    6. SPACE.

    7. PRICE.

    8. PROFITABILITY.

    9. RETAILERS SUCCESS.

    10. ADVANTAGES.

    11. CONCLUSION.

    12. REFRANCES.

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    INTRODUCTION

    Global retailing in apparel is an essential resource fortop-level data and analysis covering the apparel retailindustry. It includes detailed data on market size andsegmentation, plus textual and graphical analysis of

    the key trends and competitive landscape, leadingcompanies and demographic information.

    It Provides recent performance and future prospectsof the industry.

    It Includes a five-year forecast of the industry. establishing relationships with manufacturers and

    retailers to ensure the reliable supply and demand ofstock.

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    Clothing Stores

    The US retail clothing industry includes 100,000stores with combined annual revenue of more than$150 billion. Large companies include TJXCompanies (TJ Maxx, Marshalls), Gap, LimitedBrands, Ross and Abercrombie & Fitch. The 50largest companies account for 65 percent of industry

    revenue. The G8 Apparel Retail market grew by 1.7% between

    2003 and 2007 to reach a value of 581.4 billion

    In 2012, the market is forecast to have a value of$631.9 billion, an increase of 1.7% from 2007.

    The US is the worlds largest market and generates49% of global revenues.

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    PRODUCTS IN APPAREL

    The clothing retail industry includes storesspecializing in family clothing (50 percent of industrysales), women's clothing (25 percent) or men'sclothing (6 percent). Stores may also specialize in

    children's clothing or accessories. Children's clothingstores include infant wear. Accessory stores mayspecialize in hats or caps, gloves, handbags, ties,wigs, or belts. Within their specialty, stores typicallysell a full range of items including clothing,

    outerwear, and underwear. Many clothing stores alsosell shoes, accessories, makeup, and perfumes.

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    SPACE Walls are not elastic. You will need to decide how

    to allocate the space you have available to thegarment products the customer expects you tostock, in a way that delivers the best returns. Thismacro level planning of the product mix is criticalto achieving profitability.

    You will need to decide what stock density you

    want to achieve and It must be less clutteredINFLUENCES AND CONSTRAINT

    The content & size of a range are influencedby four things:

    Who is your customer & what does he or she want? What space do you have available?

    What level of trading profit do you need?

    What is happening in the market?

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    PRICE

    Define your price architecture with respect to your lead in,Mid & Premium price points.

    Be customer-led, not cost-driven.

    Set the price according to what the customer wants to pay, &so that you can maintain clear price message & be flexible

    with your margin rate. Don't set the selling price according tothe cost price for the garment with a fixed margin rate.Customers don't understand why two similar products from thesame brand are different prices, nor why they have to paymore for a bigger size or different colors of the same item. Atthe time, clear pricing delivers a stronger message.

    Colour, style, fabric & innovation of a garment are the mostimportant binding elements in a range. Don't let one colourdominate but, at the same time don't become a rainbow. Also,aim to keep the range fresh at all times.

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    PROFITABILITY Buy low, sell high. Buy on credit,

    sell on cash.

    Margin on sales,i.e. the difference between the sales at actual sellingprice & the cost of textile product sold. We shouldremember that, stock is money-every product you

    have on your floor is not a sale until the customerbuys it, but is a cost as soon as you pay for it.

    Three winning formulae to get fresh fashions-

    Short lead time =More fashionable clothes, Lowerquantities=Scarce supply, More styles=More choice& more chances of hitting it right. & the location ofthe store, the look of store & customer traffic thatthrongs the store.

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    RETAILERS SUCCESS

    Success in retailing is when any one whowalks into your store finds a product that he orshe wants to buy in the desired size.

    Success is when nearly everything you buysells at full price.

    Success is when the customer keeps coming

    back to your store because you always meethis or her needs.

    Success finally is profitability.

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    ADVANTAGES

    Inform your business decisions.

    It Adds weightage to marketing materials.

    Save time carrying out entry-level research. It examines future problems, innovations and

    potential growth areas within the market.

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    CONCLUSION

    Organized retail provides an attractive opportunity tomanufacturers to expose their products to a largevolume of customers in an environment conducive tobuying. Thus retailers feel that the focus of

    manufacturers should be on producing good products,& forging relationships with organized retail.Retailing is a volume driven, low margin business.Occupancy cost is one of the largest cost components,followed by working capital costs, employee cost,

    marketing cost & energy cost. The business isconsidered to be of managing cash flows & buildingassets.

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    References

    http://Fibre2fashion.com

    Business of fashion, year Jan 2001.

    http://www. Marketresearch.com.

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