analysing market & demand of kids wear
TRANSCRIPT
SRNO.
PARTICULAR PAGE NO.
1 DECLARATION 4
2 PREFACE 5
3 EXECUTIVE SUMMERY 6
4 INTRODUCTION OF GARMENT INDUSTRY 8
5 COMPANY PROFILE 9
6 COMPANY AT A GLANCE 15
7 ORGANIZATION CHART 16
8 PRODUCTION DEPARTMENT 17
8.1 PLANT LOCATION & LAYOUT 18
8.2 PRODUCTION PROCESS 22
9 HUMAN RESOURCE DEPARTMENT 29
10 MARKETING DEPARTMENT 35
11 SPECIAL PROJECT REPORT
12 ANALYSING KIDS MARKET & DEMAND ANALYSIS
37
13 CLOTHING AND APPAREL OVERVIEW 38
14 ANALYSING KIDS WEAR MARKET 39
15 SIZE & GROWTH IN ORGANIZED MARKET 40
16 INDIA:KIDS ARE KING IN APPAREL MARKET 41
17 SEGMENTING THE KIDS MARKET & POSITIONING 46
18 BUSINESS MODEL OF “IRIS” 47
19 FUTURE GOWTH RATE 47
20 DEMAND ANALYSIS 48
21 SITUATION ANALYSIS 49
22 SECONDERY INFORMATION 50
23 CONDUCT MARKET SURVEY 50
24 DEMANDING KIDS 51
25 EFFECTIVE DEMAND ASSUMPTION 52
26 REASONS BEHIND EFFECTIVE DEMANG 53
27 IMPLIMENTATION SCHEDULES (Mile Stone)
54
28 BIBLIOGRAPHY 55
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PREFACE________________________________________________________________________
There is always a gap between theory and practice i.e. knowledge and its application.
Someone has said that “knowledge is power “but looking in the present scenario it does
not stand good today, simply acquiring knowledge does not fulfill the need to becoming
an effective and efficient manager.
Thus the above saying can rightly be transformed to “Application of knowledge is
power”. To bridge these gap practical concepts is required. It is the application of the
knowledge acquired in the classroom. Its provide Conceptual skill in the ability to
understand the complexities of the overall organization. This is an opportunity to get
clear those bookies ideas and concepts and thereby assimilate managerial knowledge.
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EXECUTIVE SUMMARY
Summer training is a great exposure for me to touch the practicality of the business.
With that objective in mind I have selected IRIS INTERNATIONAL (A complete
garment stitching unit) as a place for my summer training. Reason behind selecting the
garment unit is the interest in textiles & garments industry. Mr.Binith Chhawcharia has
provided very useful information regarding Fabric, Thread Matching, Cutting, Stitching,
Quality checking, etc.
The major part of our summer training was toward launching the new product in the
Kidswear market. (As the spending per child is increased, high disposable surplus,
increasing nuclear family). People are diverting towards branded & Quality product. At
the training we spent 15 days for the general information & more then 35 days spent for
analyzing Kidswear market.
KIDSWEAR MARKET
ORGANISEDPLAYERS
UNORGANISEDPLAYERS
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Company wanted to form the strategy to position themselves in between the above two
players. So the company need sound & analytical information of the present market.
INFORMATION COLLECTION:-
I have done informal & formal study of Marketers, Retailers, Wholesalers,
Manufacturers, Garment Fairs and Customers.
Survey of more than 10 distributors
Survey of more than 50 retailers
Meet 2 manufacturers (Mumbai & Ahm.)
180 consumers (Respondents)
Attended 2 GARMENT FAIR (Mumbai & Ahm.)
Malls (10 acres, 120 brand factory, Gallops, West Side, Life Style, company outlets,
unorganized shop)
Cross Word
Apparel magazine
Website
As my formal survey I met 180 respondents (Mothers & Children) for understanding
their buying behavior, preferences, liking etc.
SAMPLE SURVEY:
Sample Size: 180
Sample Method: Convenience
Event Selection: Unrestricted
Subjective: Non-Probability
Survey Instrument: Questionnaire
Based on the survey I worked on my special Topic that is ANALYSING KIDS
MARKET & DEMAND ANALYSIS. During my analysis I have identify the demand of
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…JEANS (47%), CARGOS (27%), and CAPRI (26%), also forecasted the Future
Growth of the Market.
CLOTHING AND APPARELS________________________________________________________________________
The clothing sector is the final stage of the textile value chain and the maximum
value addition takes place at this stage. Clothing sector is an export intensive sector and
contributes about 49 percent to total textile exports. The clothing sector is low
investment and highly labours intensive industry. An investment of Rs. 1 lakh in the
sector creates 6-8 jobs. This industry also has a women friendly employment orientation
and provides employment to large number of women. In fact 38 percent of the total
employment in clothing sector is accounted for by women. In countries such as
Bangladesh, such employment has brought a major social change in the society. This
sector is environment friendly as it is least polluting and it could provide employment to
the rural population, as this sector does not need sophisticated skill sets. Considering the
strengths of this industry, particularly in terms of employment and export, there is needed
to provide thrust to the growth of this sector.
The clothing industry is fragmented and pre-dominantly in the small-scale sector.
Major manufacturers have at least 20-30 units each. The reason for this could be
attributed to the SSI reservation policy which was in vogue till 2001 for woven apparels
and up to March 2005 for knitwear. The quota policy which prevailed during the quota
regime also did not encourage consolidation of the units. However, subsequent to quota
phase out and de-reservation, the process of consolidation has started but momentum is
slow due to prevailing labour laws.
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COMPANY PROFILE
“Our Goal at iris international is sustainable value creation by focusing on core
business that demonstrates market leading characteristics.”
OWNER’S BACKGROUND
MR. BINITH CHHOWCHHARIA
Established his own garment factory in 2004. His involvement in textile industry
started in 2002. He is skilled in strategic planning, with the emphasis on implementation.
His other fields of expertise include management of change, service quality, marketing
and positioning. He is armed with an MBA degree and CFA Certificate.
BUSINESS DESCRIPTION
IRIS INTERNATIONAL Ahmedabad took its first step in 2004, with a plant area
of 10000 square feet; the factory houses 100 imported sewing machines and employs
more then 120 workers. Its monthly turnover varies from 20 thousand to 25 thousand
pieces depending on the style of the garment. IRIS INTERNATIONAL began its journey
in manufacturing of men’s bottom wear, with a small but significant project to supply
premium quality for the common man. In little over 3 years IRIS INTERNATIONAL has
grown as a leading manufacturer in bottom wear.
Technology - IRIS INTERNATIONAL today develops and manufactures technologically
advanced, high-performance and cost-efficient men’s bottom, to meet the diverse needs
of customers all around the country. IRIS INTERNATIONAL offers customers' end-to-
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end both formal and casual solutions, including stitching, designing, pattern mapping,
problem identification, quality measurement etc.
At IRIS INTERNATIONAL, service means the ability to recognize, anticipate
and concentrate on the specific needs of our customers. Both our business strategy and
day-to-day operations are based on the feedback we get from our customers and we have
built and grown IRIS INTERNATIONAL one satisfied customer at a time.
The Company’s philosophy from the beginning has been to offer outstanding
delivery of garments, the highest quality products and the best customer service available.
It is this formula that continues to propel the Company forward and contributes to its
steady growth.
DESCRIPTION OF THE PRODUCT AND CLIENT PRODUCT
Casual Pants
Formal Pants
Denims
Cargos
CLIENTS
Kirloskar,
Oxford street,
Rockport,
Arvind Mill
M2M, Reliance Retail
NEW PRODUCTS
IRIS INTERNATIONAL aims to expanding its product line with models customized to
meet customer needs and develop its own brand for kids wear. In addition to this, IRIS
INTERNATIONAL aims to improve the cost efficiency of manufacturing kids wear
through technology enhancements, and optimizing locations.
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VISION
Our vision is to provide the most popular and comprehensive brand in bottom wear, and
to provide appropriate and cost-efficient garments for the benefit of our customers.
MISSION
Our mission is to provide an attractive range of bottom wear. We will achieve this by
optimum use of technology, labour and other resources.
” To provide Quality and customer satisfaction”
“Launch a brand for the common man by 2008”
BUSINESS EXCELLENCE
Our business excellence program is targeted at achieving ever-higher levels of quality in
all our products and services.
COMPANY’S VALUE
FOUNDATIONAL VALUES RESULTANT BENEFIT VALUES
Integrity and Honesty Customer Service
Innovation Excellence
Customer Orientation Empowerment
Accuracy Community Benefit
Commitment Achievement
Enthusiasm Competitive Edge
Responsiveness Market Leader
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BUSINESS STRATEGY
Launch a brand for the common man by 2008. The kids wear market currently has a
growth rate of 10 per cent. What makes this market segment attractive however, is the
current low brand penetration rate of 8 per cent in this market, which creates a huge
potential for branding in kids wear.
The above trends indicate the huge potential of the kidswear market in terms of both
branding and specialty retailing. However the key success factors for both new brand and
retail entrants will be product differentiation and retail experience. Savvy marketing and
interactive promotions with kids, in addition to the product and retail offer shall be the
key to success in this category.
Apparel, by its very nature, thrives on variety and more so in the case of kids. Besides
kids have a natural tendency to outgrow their clothes very fast, necessitating change,
which in this case implies new offerings. This raises two issues, one of range and second
of pricing: a combination of the two thus determining the future of the brand.
In a market that is dominated by the unorganized sector.
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MANUFACTURING SETTINGS
DISCRIPTION OF MACHINES NO. OF
MACHINES
Single Needled Stitching Machines (JUKI & BROTHER, Japan) 63
Two Needled Stitching Machines 4
5-Thread Over Lock Machines 4
Button Hole (DURKOP) And Button Stitching Machine 3
Layer Cutting Machines.(JUKI) 2
Fabric Checking Table 3
Additional Machines Such As Flat Lock, Interlock 2
Steam Press. 2
Thread Sucking Machine 1
Hydraulic Cutting Machine 2
Computerized Embroidery Machines (Janome, Japan) 1
F.O.A (Feed Of The Arm) (BROTHER) 2
Fusing Machine 1
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Loops Making Machine (KANSAI, Japan) 2
DELIVERING QUALITY
IRIS INTERNATIONAL is focused on delivering excellence in performance and
flexibility and to exceed customers’ expectations in quality, delivery and service.
We are committed to focusing on our customers, delivering superior quality and offering
the industry’s best operations anywhere in the world. Even more, we realize customer
satisfaction drives our business, and we are unyielding in our promise to meet their
expectations in quality, delivery and performance.
At IRIS INTERNATIONAL we have a team of passionate, talented and dedicated
employees who are committed to flawless service and corporate integrity.
MANAGEMENT TEAM
IRIS International has an excellent management team, who are always
ready and willing to dedicate toward the company. Management teams consist of skilled
and well trained administrative, operational, as well as marketing people. Nearly 10 to 12
people are smartly handling the complex process of stitching.
CONTACT INFORMATION
BINITH CHHOWCHHARIA
IRIS INTERNATIONAL
279/A, Dhanraj Hiralal Compound,
Opp. Roopali Dyeing,
12
Narol Char Rasta,
Ahmedabad- 382 445 (Guj.) (India)
Email: - [email protected]
Phone: - (F) +91-079-65439255
(R) +91-079-6525142
Company Name: IRIS INTERNATIONAL
Country/Territory: Ahmedabad, India.
Legal Representative/CEO: Mr. Binith Chhawchharia
Year Established: 2004
Address: IRIS INTERNATIONAL
279/A, Dhanraj Hiralal Compund,
Opp. Roopali Dyeing, Narol Char Rasta,
Ahmedabad- 382 445. (Guj.) (India)
Corporate Status: Sole Proprietor
Products/Services We Offer: Stitching of Casual and Formals Bottom wear.
Business Type: Manufacturing and Job-work
Geographic Markets: Ahmedabad.
Current Customers: Arvind Mills, Reliance, Iscon, Anand
apparels, Expert Attire
Brand Names:
No. of Employees: More than 120 People
No. of Adm. Staff: 5 - 10 People
Annual Sales Range. 3 crore
Quality Control: In House
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COMPANY AT A GLANCE
ORGANISATION CHART
Owner
Adm. Dept. Prod. Dept. Mkt. Dept. Fin. Dept.
Assistant Supervisor
Workers
Helpers
Assistant
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© IMaCS 200 6
Printed 30-May -07
Page 6
www.imacs.in
Manufacturing units present at all levels of value chain
Raw materials
Cotton, wool, silk, jute
Petrochemicals
Fibres and yarn
Man-made fibre/ filament yarn*
Grey fabric Knitting Weaving
Processed fabric Dyeing Finishing
Garments
Home textiles
Production unit
Spinning mills
Weaving/ knitting
units - handlooms,
powerlooms, hosiery
units
Hand processing
units, independent
power processing
units, units attached
to mills
Garments &
home textile
producers
Composite Mills
*Includes viscose staple fibre, polyester staple fibre, acrylic staple fibre, viscose
filament yarn, nylon filament yarn, polyester filament yarn
Source: Industry Research
15
PLANT LOCATION
Plant location means where the plant should be located for maximum operating economy
and effectiveness.
IDEAL LOCATION
Various models are available which help identify a near ideal location.
Company is choosing their location as per the Weber’s theories of PLANT LOCATION.
According to him while choosing location one may classify the factors into 2 broad
categories i.e. - Primary & Secondary.
Materials and labour are constitute of Primary Sector while Banking, Insurance,
communication facilities etc. constitute of Secondary Sector.
The most relevant Primary factors in the location decision:
AVAILABILITY OF RAW MATERIALS
AVAILABILITY OF LABOUR
AVAILABILITY OF POWER
AVAILABILITY OF WATER & WASHING
TRANSPORT FACILITIES
AVAILABILITY OF SUPPORTING INDUSTRIES (THREADS & TRIMS)
AVAILABILITY OF RAW MATERIALS
As the Ahmedabad is hub of textile industries and that’s why company get advantage of
cheep raw materials market as well as market for finished goods. As we are doing job-
work so the requirement of fabrics is continuous for production process.
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AVAILABILITY OF LABOUR
Labour is key factor in production process. Majority of Indian garment industries (Job
workers) are less capital intensive so the trained and technical workers are required for
the mass production and quality product. In Ahmedabad required labour are easily
available, so the cost of training and educating the labours can be eliminate.
AVAILABILITY OF POWER
Uninterrupted power supply increases the efficiency of machines and improves the
quality of products. Continuous supplies of electricity from the TORRENT in
Ahmedabad have lead to mass production.
AVAILABILITY OF WATER & WASHING
Water is life blood of every industry, so the need of water in garment sector arises for the
washing and pressing of clothes. Water is easily available from the NAROL GIDC-
Ahmedabad.
AVAILABILITY OF SUPPORTING INDUSTRIES
Manufacturing of the garment requires many supporting activities like threads, buttons,
zips etc. These subsidiaries industries help in achieving the desired goal. The presence of
these supporting industries attract for setting the stitching unit in Ahmedabad.
The most relevant SECONDARY factors in the location decision:
FINANCE FACILITIES
Finance is backbone of every company. Availability of proper finance is also important
as labour and material. Finance required in fixed assets as well as in working capital for
smooth operation. In Ahmedabad many financial institutions and banks which are
providing finance for same.
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TRANSPORTATION FACILITIES
Transportation facilities are required in the garment industries for transportation of raw-
materials and finished goods. As the IRIS INTERNATIONAL is mainly dealing with
job-work, so the need of washing requires better availability of transport. National High-
way no. 8 and Railways are very near to unit lead to minimization of transportation cost
and delay.
COMMUNICATION FACILITIES
Communication is the process of sending of information from one place to another place
and from one person to another. IRIS has its own intercom within the unit and also
having good facilities of internet in the unit. Apart from these IRIS also having good
facilities of couriers and fax for minimizing human efforts and cost.
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PLANT LAYOUT
OFFICE
5
MAIN GATE
2
GATE -1
CUTTING TABLE
CUTTING TABLE
Waste
1
F I NISHING&PACK A G I N G
ROLLS
LUMP
MAIN OFFICE
ROLLS
3 4
6
TOILET
FLOOR
1
FLOOR
2
ZipperZipper
ThreadThread
AccessoriesAccessories
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SPECIALIZED MACHINES SINGLE NEEDLE MACHINES
PRODUCTION PROCESS
CUTTING DEPARTMENT
STITCHING DEPARTMENT
WASHING DEPARTMENT
FINISHING DEPARTMENT
PACKAGING DEPARTMENT
DISPATCH DEPARTMENT
S
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CUTTING DEPARTMENT
Inward
Programming
Layering
Marking
Cutting
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STITCHING DEPARTMENT
SortingNumbering Thread matching
Stitching
Front Making Back Making
Jati Making Pocket Attaching
Design Of Front Theli finishing
Zippers Seat Over Lock /F.O.A
Theli finishing Seat Top
Pairing
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Side Over Lock
Side Top
Inside Over Lock/F.O.A
Belt Attaching
Belt Finishing
Bottom Hemming
Bartach (Loops)
Eye Hole
Buttoning
Final checking of unwashed pieces
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Washing
Thread cutting & loops cutting
Pressing
Final finishing
Packing
Storing / Delivery
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CUTTING PROCESS: -
Once the desired design is selected, patterns from the design are cut from heavy paper or
cardboard. Up to 80 different sizes are possible from one pattern. The pieces of Fabric are
then cut with high speed cutting machines from stacks 100 layers thick. Excluding rivets,
buttons, and zippers, a pair of cotton trousers contains about ten different pieces, from the
pockets to the leg panels to the waistband and belt loops.
Once the pieces are cut, firstly they are sorted on the basis of size and color and based on
that it is classified into different numbers.
STITCHING PROCESS: -
Sewing is done in assembly line: - Stitching process gets start from attaching “Jati” i.e.
attaching piece of cloth with pocketing. Then it is given to front makers, who attach it
with the front part of pant. Then this part is given for attaching Zipper. On the other hand
backside of pant is made simultaneously.
Both the parts i.e. front and back are paired and is given for side- inside over lock, and
then belt attaching, belt finishing ( in which size label is kept and is properly stitched),
bottom hemming, loops making, Bartek (loops are attached), Button holing, buttoning are
done.
Finally trouser is ready for washing and is checked by quality checker and alteration is
done wherever it is needed.
The whole lot is sent for washing.
FINISHING PROCESS: -
After washing, the process of finishing starts with thread cutting in which unwanted
threads is removed by manual cutters. Then ironing is done to those pants for giving final
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touch. They are placed into a large pressing machine that steam irons the entire garment
at once in about a minute.
PACKING PROCESS: -
A size tag is punched into the material and the trousers are folded, stacked, and placed in
boxes according to style, color, and size before being sent to the warehouse for storage.
When the trousers are selected to be sent to a store, they are put in large shipping cartons
and sent on freight trains or trucks.
QUALITY CONTROL: -
Poor cloth is sold as damaged. Fabric is also tested for durability and its tendency to
shrink. Samples of cloth are washed and dried several times to see how they wear.
Cotton trousers are also inspected after they are completed. If a problem can be corrected,
the trousers are sent back for re-sewing. The pair is then inspected again and passed. The
buttons are inspected to ensure that they and the buttonholes are of the proper size; the
snaps, buttons, and rivets are checked for durability and their ability to withstand. The
zippers must be strong enough to withstand the greater pressures of heavy cloth, and their
teeth durability must be checked as well. Subjecting a sample zipper to a lifetime of
openings and closings does this.
INPUTS AND OPERATION: -
Fabric (Raw material) Threads
Pocketing (Polyester & cotton) Button
Accessories Rivets
Zippers
MATERIAL HANDLING EQUIPMENT: -
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Trolley
27
INTRODUCTION:-
Human resource management is not only to recruite, select and
procures the employee but to maintain them effectively. Handling Human Resource is an
activity like caring a plant. H.R.D. considered all the aspects relating to planning, job
analysis, procurement, training and development, incentive, wages, salary, industrial
relation and decision making in complex H.R. problems.
H.R. IN GARMENT: -
Textile industry is a traditional industry of the India. It can also be called as a heritage of
the India. Strong research of each processing increase the confidence of proprietor for
setting up the unit.
Garment in India is back born of the Indian industry. The company called IRIS
INTERNATIONAL is doing job-work in the product called Men’s bottom wear. Garment
industry requires semi labour intensive technology for making the cloths. So the need of
labour always in front of mgt.
Mgt have many advantages in having labour intensive factor like, less capital required,
employment generation, and having own business to work upon. The problem in garment
having labour intensive is, less availability of skilled man power, absenteeism, increasing
expense on training and hiring new employee. The major problem is in procuring &
maintaining the labour for longer time.
HUMAN RESOURCE PLANNING: -
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HR Planning needs to implement. Planning is the foundation of policy and objective. Ms.
GEETABEN who overlooking the activities of human resource. They plan for the long
term requirement and technical specialty.
JOB ANALYSIS :- (DEFINING THE JOBS)
Based on the demand of the factory, HR manger identifies the need of employee for the
specific job.
Job Evaluation Job Specification
Title of the job Experience
Designation Education & qualification
Working environment Technical knowledge
Working hours Skill & behavior
Material & machine Etc
Special equipments
Based on the above criteria the department starts the process of recruiting and hiring
employee through different sources.
Consider the following aspect.
How much experience the worker having?
Types of machinery and work need to do.
Limitations of the workers.
RECRUITMENT AND SELECTION:-
Recruiting labour (skilled, semi-skilled & unskilled) require special attention. IRIS
INTERNATION recruits the people whenever they find the shortage of delay in work.
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For recruitment they give advertisement through:
Local publication
News paper
Advertisement on board where many labour passing through.
Internal sources
Selection is based on the Job Requirement & Demand. Selection is process in which the
recruitment is based on the success of trial.
CRITERIA FOR SELECTION: -
Machine trial
Special task completion
Trial based on waste
ORIENTATION & PLACEMENT: -
Orientation is required to make labour familiar with the staff, supervisor and offcource
about the company and policies of company. Mrs. Geetaben introduces new workers with
the other employee, supervisors and guides them whenever they need.
It creates the confidence and belongingness in the labour which increases the productivity
and minimizes the absenteeism and waste.
TRAINING AND DEVELOPMENT: -
Training is providing to those labour that lacks in the skill, requires special training.
TRAINING TECHNIQUES: -
ON-THE-JOB training is being provided to the new workers or present workers.
Apprentice
New machine trial
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Training based on waste
PERFORMANCE APPRAISAL: -
Performance appraisal is a process of appraising the performance & work. In IRIS the
work is being done based on piece and fixed rate so the workers are being given targets
and they need to complete in specified time.
Incentive is being provided
Provide motivation in the form of training to become a supervisor.
WAGES AND SALARY: -
Wages and salary is not the motivation but satisfying for the employee.
Iris International providing the two way wages.
Piece wage to skilled and semi-skilled workers.
Fixed wage to unskilled and semi skilled workers.
TYPES OF WORKERS AND THEIR PAYS: -
Types of Wages: -
Pieces Wages Fixed Wages
Jati Pocket finishing
Front making Back pocket attached
Zippers attaching Paring
Inside Screening
Side Layering
Seat top Helpers
Belt attaching Loops making
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Bartach Cutting master
Eye hole Store keeper
F.O.A.(Feed of The Arm)
Back & cut pocket
Bottom hemming
SAFETY: -
Better place for working requires proper environment which reduces the accident, noise,
and waste.
Supervisor is being instructed for the safety assurance.
INDUSTRIAL RELATION: -
Company is maintaining the healthy relations with the internal as well as external
sources. The promoter of IRIS Mr. Binith Chhawchharia has good relation with suppliers
of the fabric, executives of the giant companies, officers of the financial institute and
other govt. administrative.
Mrs. Geetaben having excellent name & relationship with the labour market as well as
customers in the market. It helps in a healthy operation and creates goodwill in the
market.
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33
SEGMENTATION
Men’s Bottom Wear
Casual
Formals
4 P’S OF THE IRIS INTERNATION
PRODUCT
PRICE
PROMOTION
PLACE
34
SPECIAL REPORT
ON
ANALYSING MARKET
&
DEMAND ANALYSIS
OF THE
KIDS WEAR MARKET
35
CLOTHING AND APPAREL OVERVIEW
The clothing sector is the final stage of the textile value chain and the maximum value
addition takes place at this stage.
Contributing about 49 percent to total textile exports
An investment of Rs. 1 lakh in the sector creates 6-8 jobs_women friendly employment
orientation (38 %).
Environment friendly sector as it is least polluting
HRD needs of Clothing Industry
It is estimated that the apparel industry needs 5 lakh trained workers 4.5 lakh operators,
0.22 lakh jobbers, 0.11 lakh pattern makers, 0.11 lakh technicians / quality controllers
and 0.06 lakh managers would be required.
36
ANALYSING
KIDS WEAR
MARKET
37
SIZE AND GROWTH OF THE ORGANISED KIDSWEAR MARKET
Children love playing dress-up. It’s especially fun when they are trying out their parent’s
clothes, way larger than their size.
It’s a big game
Little ‘game’ is worth Rs. 13,000 crore in India according to research firm KSA Techno
Park.
The kids’ segment contributes 30% per cent of the Rs 43,000 crore readymade apparel
markets.
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The organized kids’ retail market is worth about Rs 3000 crore.
Growth rate of 10 per cent, current low brand penetration rate of 8 per cent in this market,
which creates a huge potential for branding in Kidswear
The market is dominated by a Unorganized sector.
INDIA: KIDS ARE THE KING IN APPAREL MARKET
Kids apparel’s estimated market of 13,000 crore, out of which 3,000 crore is of branded
products, has caught the attention of brands like Pantaloon, Raymond, Spykar, DS
Corporation and Milou, which are setting up special stores for the kids category.
Trends have changed that are quite visible once you go for shopping. Children who were
earlier taken to the places such as museums and zoos are now being taken to shops and
malls.
With 14 retail outlets at its disposal, DS Corporation plans to expand its number of
outlets to 50 in the next five years.
39
Pantaloon in association with Gini & Jony is soon going to enter the kids apparel market.
Raymond already has a store in Ahmedabad named Zapp and plans to open 14 more
stores across the country.
International kids wear brands such as Tommy Hilfiger, Freelook Junior, Adam Kids,
Walt Disney and Benetton are also making efforts to foray into India mainly by taking
the tie-up route with Indian companies.
What is more enterprising is the fact that even denim companies like Spykar, Pepe Jeans
and Killer are venturing to take a pie of the cherry.
Baqar Nagvi of KSA Technopark informed that 20 percent annual growth of branded
kids wear market has caught the fantasy of branded companies, which want a share in
market.
Lilliput, Li'l Tomatoes, Pooh, Catmoss, Kids' Studio, Little Kangaroo, Lee Kids,
Weekender Kids and Mother's Touch are other brands being retailed in India Naqvi
revealed that Canz claimed as the largest selling kids wear brand in Europe is going to be
launched in India in a 50:50 joint venture with Pro Fashion.
CAPTURE THE CHILD’S MIND AND THE PARENT’S WALLET
The kids’ wear market, which has been assessed at Rs13,000 crore with Rs 3,000 crore
being branded, can easily be described as the next growth industry with a large young
working population and increasing number of double income families with high
disposable surplus.
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A cursory analysis of the kids buying behaviour indicates that they are an independent
customer group displaying considerable ‘pester power’ that they have inculcated and now
seem to be exerting. Additionally, kids are highly self conscious and can be easily
affected by peer pressure, at a very young age, and thus can be very demanding, often at
the cost of the parent’s peace of mind if not their pockets. It is not uncommon to hear a
kid throw a tantrum to the effect…” I don’t want to wear this….”
Apparel, by its very nature, thrives on variety and more so in the case of kids. Besides
kids have a natural tendency to outgrow their clothes very fast, necessitating change,
which in this case implies new offerings. This raises two issues, one of range and second
of pricing: a combination of the two thus determining the future of the brand.
In a market that is dominated by the unorganised sector, the biggest threat to Spunkywear
is likely to be from this segment, both in terms of range and low prices. The ability of this
segment to churn out designs at a fantastic pace should not be under estimated.
In the niche segment, where Spunky is most likely to position itself, its competition is
likely to be from brands like Lilliput, Lil-Tomatoes, Gini & Jony and in the slightly
higher age groups from other brands such as Bennetton, Walt Disney, Freelook etc. Much
therefore will depend on the positioning Spunkywear wishes to adopt which in turn will
depend on the level of differentiation it is able to establish. Apart from this Spunkywear
will need to allocate a sizable promotional budget to gain eyeballs and create a ‘pull’ for
itself. With the emergence of kids TV channels, the fight for eyeballs is likely to be
intense, more so given that viewing time for a kid is restricted to a couple of hours in the
late afternoon or early evening. Hence innovative promotions, which encourage the
child’s involvement, are more likely to find acceptance.
The brands next challenge will be retailing. Although the global brand has standalone
stores overseas selling a maze of kids’ apparel and accessories, the challenge in India will
be to create a market presence. The options before the brand are exclusive stores –
company owned or franchised or a presence in multi-brand stores. Spunkywear is said to
have its presence in India through retailing adult wear. Assuming the brand enjoys
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enough leverage, it could explore the franchising route for quicker and low cost market
presence.
A pre-requisite for franchising would, however, be the range of products in its basket to
make the franchise operations viable. Much would, therefore, depend on the product mix.
Alternatively a multi brand outlet (MBO) would be the only real option. Within a MBO,
to keep its brand identity intact, it could explore ‘shop-in-shop’ arrangements which
would allow focused selling by trained company sales personnel and help build on the
brand equity, should it at a later stage consider moving to franchising or company
managed stores. The marketing task will therefore lie in capturing the imagination of the
child with trendy designs and of the parent with value based pricing. Incase a family is
“captured” early enough in the buying life cycle of the child by creating adequate ‘pull’,
chances are the family could remain loyal to the brand during the life cycle of the kid,
provided the two considerations of range and pricing are well managed.
ALL DRESSED UP AND READY TO GO!
Children love playing dress-up. It’s especially fun when they are trying out their parent’s
clothes, way larger than their size. However, this seemingly little ‘game’ is worth Rs
7,310 crore in India according to research firm KSA Technopak. The kids’ segment
contributes 17 per cent of the Rs 43,000 crore readymade apparel market. The organised
kids’ retail market is worth about Rs 500 crore. The growth rate of the segment is
estimated at 10 per cent per year, though the brand penetration is only 8 per cent. This is
comprised of a medley of brands ranging from those offered by retailers to exclusive
brands by select manufacturers.
Some retailers have gone from the multi-brand outlet (MBO) model to launching their
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own brands, realizing the potential of the bludgeoning kidswear market - which comes as
no surprise as children hold the most promise as a demographic segment for marketers.
Take Shoppers’ Stop, which markets kidswear under the STOP brand, though it retails
other brands too.
In a recent joint venture with India’s fastest growing kidswear brand, Giny & Jony,
Pantaloon will set up a retail chain for the brand. Pantaloon currently has about 70 outlets
in India comprising of hypermarkets like Big Bazaar, Pantaloon outlets and Food
Bazaars. In fact, Pantaloon s the largest retailer of kidswear in the country.
RETAILING
Retailing for the kids wear category has traditionally been an offshoot of retailing for
men's and women's garments. Even today, most kids' shopping is done from large family
multi-brand outlets selling men's or women's garments or both.
The most popular retail format for shopping for kids' garments has been MBO's. With
very few brands in this category, exclusive brand outlets have been few and the concept
of specialty stores, has been at best sketchy, till now.
However, with increasing kid power, there have been changes in the retail landscape for
kids. The change has primarily been driven by the consumer's demand for 'Retail
experience' at all levels. Consequently, there has been a shift in shopping from MBO's to
department stores, which stock a varied range as also provide the retail experience.
Department stores have contributed towards segregating and building niche categories
like infant wear, kids formal wear, kids ethnic wear, swim wear, casual wear, pre teen
wear by stocking a wider range of merchandise and differentiating between them at the
retail store level. Department stores have further taken the lead in creating 'Retail
experience' in this segment, through having play-areas and kids' oriented promotions
within the store like the recent Back- to-School promotion by Lifestyle.
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Another key trend is the emergence of specialty stores in niche categories like Infant
wear e.g. Jus' Bon & Kids, Baby Shop etc.
MARKETING
Marketing for kidswear brands in India has not evolved due to few brands and lack of
brand orientation amongst customers. Majority of the advertising/ communication for
kids' brands has been targeted towards women.
Today, however kids' power in influencing purchase decisions not only for own
purchases but also for adult purchases has been recognized and subsequently marketers
are spending large amounts on advertising for kids.
Also with the popularity of brands, newer options of marketing like T.V advertising and
promotions are being used. Example Weekender advertises on the 'Cartoon Network' a
channel exclusively for kids' for its brand' Toon World'. Apart from advertising, they also
run special promotions like Kid Fashion shows in collaboration with the 'Cartoon
Network'.
The above trends indicate the huge potential of the kidswear market in terms of both
branding and specialty retailing. However the key success factors for both new brand and
retail entrants will be product differentiation and retail experience. Savvy marketing and
interactive promotions with kids, in addition to the product and retail offer shall be the
key to success in this category.
SEGMENTING THE KIDS MARKET AND OUR POSITIONING
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IRIS’s products are targeted at the middle and upper middle class segment with a
price range between Rs 395 and Rs. 795
We have our own Designers working on designs for the seasons.
Kidswear too has similar seasons like apparel for men and women with the only
difference being that in winter, kids need a larger number of warm clothes.
BUSINESS MODEL OF THE COMPANY IRIS INTERNATION
We will operate through franchisees, shop-in-shops, company outlets and multi-brand
stores (MBO).
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About 50 % of the business will be generated through direct selling (Mfg to retailers)
whereas the rest is through the other channels (Through Agent).
Commissions paid to Agent about 2-5%...Conditioned to repay half or full money, if it
defaults.
We will outsource the stitching, Washing, Finishing, Pressing and packing from the local
market to reduce the complexity of task.
We have the special Team of Designers who will continuously work on creative &
innovative design.
STRATEGY OF MAINTAINING FUTURE GROWTH RATE
Capacity of 300-400 pieces garment per day, proposed to increase 400-500 pieces per day
next year. The total investment in the business is about Rs. 3 crore.
10000 pieces per months in the 1st year.
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Company is expected to grow at 10% (11000 pieces p.m) in the next year as the total
market is growing at the same rate.
DEMAND
ANALYSIS
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SITUATION ANALYAIS
In order to get “Feel” of the relationship between product and its market, we had
informally talk to Customers, Competitors, Retailers, Distributors, Manufacturer,
Middlemen others in the industry.
We Learn From Organized & Unorganized Market About..
Different Segments in Kidswear
Different Price Range, Influencer, Accessories, Pick season, Franchisee terms, Rented or
Owned, Contract Terms, Offer Prices
Organized Market
COLLECTION OF SECONDARY INFORMATION
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Visited Cross word for finding Brand Name for the Proposed Company
Visited Bits cape IT Solution at Ambawadi for the Development of Web Site & Hosting
it to the server
Indian Apparel market & Its Growth drivers through Different web sites.
Secondary information, though useful, often does not provide a comprehensive basis for
market and demand analysis.
CONDUCT OF MARKET SURVEY
Census Survey—Entire Population is covered
Sample Survey---Sample f population is contacted, observed and relevant information is
gathered.
Steps in Sample Survey…
Define the Target Population—Parents & Children
Select Sample Size--- Convenience (180 Respondents)
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Freedom to choose whomever we find (Unrestricted)
Develop the Questionnaire
Obtain Information from the Respondent
(Interviewed Personally)
Scrutinize the Info Gathered
Analysis & Interpretation
KIDS CAN BE VERY DEMANDING
How frequently do you purchase cloths for kids in a year?
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Based on the above findings the kids can be seen as very demanding. Every 3 to 6 months
they require clothes.
Kids’ natural tendency to outgrow their cloths fast
Necessitate change, which in this case implies new offering
EFFECTIVE DEMAND ASSUMPTION
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Out of the 180 respondent we got 188 responses, because of the multiplicity of the
choices. The above analysis show the demand of an individual product, like we are
proposed to produced 10000 pieces clothes per months…
Out of the above we would divide according to prevailing market demand such as 47%
(4700 pieces p.m.) of Jeans, 27% (2600 pieces p.m) Cargos and 26% ( 2600 pieces p.m)
Capri.. No dungaree would de produced by the company as such no demand.
REASONS BEHIND EFFECTIVE DEMAND
Large young working population
Increasing no’s of double income family
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High disposable surplus, increases spending per children
Kids are independent
Highly self conscious
They can easily affected by peers pressures.
They can be very demanding.
( Thrives on Variety)
IMPLEMENTATION SCHEDULE
(MILESTONE HERE)
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Jan Feb Mar Apr May Jun July Sep Oct Nov Dec
Phase 1Phase 1
Phase 2Phase 2
Phase 3Phase 3
Idea Generation Idea Screening
Market & Demand AnalysisFeasibility AnalysisProject Report & AppraisalRegistration
Obtaining LoanOrganizing Working Infrastructure Establishing Contacts With Parties, Buyer, & Market
Agency
The implementation schedule is anticipated about one year.
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BIBLIOGRAPHY
Survey of More Than 10 Distributors
Survey of More Than 50 Retailers
Meet 2 Manufacturers (Mumbai & Ahm.)
180 Consumers (Respondents)
Attended 2 GARMENT FAIR (Mumbai & Ahm.)
Malls (10 Acres, 120 Brand Factory, Gallops, Pyramid, West Side, Life Style,
Company Outlets, Unorganized Shop)
Cross Word
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Apparel Magazine
Website
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