HOW SHOULD TOPSHOP CAPTURE THE INDIAN MARKET PLACE?

Manvi Singh

ENTRY STRATEGY

Franchise agreement with Trent group

49% stake- Trent 51% stake- Topshop

THE INDIAN WOMENS WEAR MARKET

Branded women apparel market is projected to rise at a rate close to 25% and surpass Rs. 18,000 Crore by 2010. Western wear, along with lingerie, will emerge as the fastest growing segment.

-DATAMONITOR

Indian fashion retail

industry

BUSINESS OPERATIONS

SUPPLIER: Indian and international

INBOUND LOGISTICS: Outsourced

WAREHOUSE: 2 warehouses in south and North (Noida: NCR region)

OUTBOUND LOGISTICS: Outsourced

STORE: Marketing and sales, Services

TARGET CUSTOMER

SEGMENTATION ON THE BASIS OF

DETAILS

Age 16-35 years

Sex female

Social class Upper-middle class

Type of residence Owner of houses

Marital status Single/ Married

Level of education educated

Demographic segmentation

TARGET CUSTOMER

15-23 years old

TARGET CUSTOMER

24-35 years old

THE REASON FOR PURCHASING CLOTHES

1st choice 2nd choice 3rd choice 4th choice0%

20%

40%

60%

80%

100%

120%

20% 20%

58%

2%

58%

42%

22%

38% 40%

0.0200000000000001

0.98

special occassiongiftimpulseneed

THE REASON FOR PURCHASING CLOTHES

25%

35%

10%

30%

Prefference

NeedImpulsive buyingGiftingspecial occasion

PRODUCT

SIZE FABRIC STYLE

• Heavy body• Average height is 5.5-5.6

• Difference in temperature between Delhi and Mumbai.

• Mild winters and strong summers.• Summers: muslins, linen, lycra etc

• Winters: wool+cotton mix, Wool+polyester mix• In-between seasons: cotton polo necks, linen

coats, cotton jumpers

• 84% women wear western-wear.

• Bright colours

STYLES IN CLOTHING

VINTAGE

SPORTY

RETRO

STYLE IN CLOTHING

CHIC

HIPPY

BLING

GLAMOR

PREFERNCE OF STYLE IN CLOTHING

12%

17%

19%7%18%

17%

9%

Prefference

VintageSportyRetroChicBlingHippyGlamourous

DAYTIME PREFERENCES

NIGHT PREFERENCES

PREFERENCE OF CLOTHING DURING THE COURSE OF THE DAY

14-24 25-350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8%

36%

92%

64%

indian ethnic wearWestern wear

PREFERENCE OF CLOTHING DURING WORK/COLLEGE

14-24 25-350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8%

40%

92%

60%

indian ethnic wearWestern wear

PREFERENCE OF CLOTHING DUSRING NIGHT- PARTY/CLUBBING/DINNER

14-24 25-350%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%4%

100%96%

indian ethnic wearWestern wear

PRODUCT LINE FOR TOPSHOP IN INDIA

PLACE

Delhi

Mumbai

Income profile: $ 25.10 bn

Income profile: $34.94 bn

New Delhi There is a cheaper and larger availability of retail space in Delhi.

CONSUMER PREFERENCE OF SHOPPING LOCATION

1st choice 2nd choice 3rd choice 4th choice 5th choice0%

20%

40%

60%

80%

100%

120%

30% 32%38%

32%

40%20%

8%

38%

24%

16%

12%10%

4%

46%

50%

0.26

0.1

0.4 Others

south EX

GK

Select city walk

Ambi mall

SHOPPING LOCATIONS IN DELHI

• Mango• FCUK

• Replay• UCB

• Esprit• Shoppers Stop

• Pantaloons

• Mango• FCUK

• Replay• UCB

• Esprit• Sisley• Guess

• CK

• Mango• UCB

• Esprit• Sisley

• Lacoste

3 YEAR PLAN

LOCATION AREA

South extension 15000 sq ft

Ambience Mall 5000 sq feet

Select City Walk 5000 sq ft

LOCATION AREA

Vasant kunj mall 6000 sq ft

Gurgaon DT mall 5000 sq ft

Noida centre stage 5000 sq ft

1ST YEAR

2ND YEAR

3 YEAR PLAN

LOCATION AREA

Khan market 4000 sq ft

GK M block 6000 sq ft

3RD YEAR

COMPETITION

Domestic and

International and Domestic retailers

Unorganized retailers

Substitutes: Export rejects and Tailor made garments

THE MARKETING CAMPAIGN

The advertising campaign The PR campaign

PR CAMPAIGN

24.53%

20.93%25.46%

19.80%

9.20%

MOST COMMON INSPIRING FACTOR WHILE CHOSING A STYLE

Models in the magazineMannequinsBollywood moviescelebritysitcom

PR CAMPAIGN

PR should be outsourced to a PR firm Bollywood movies Magazines such as Vogue, ELLE,

Femina etc should be used as a medium to promote their stock.

Charity events- AIDS and Breast cancer Celebrity ‘Kate Moss’ campaign- 52% Indian do

not recognize Kate Moss.

PR CAMPAIGN

AD CAMPAIGN

WEAR LONDON IN INDIA

Thirst to be the first to wear Topshop in India

PROMOTION: promotion objectives pyramid

Source: Bruce, Margaret.2nd edition - International Retail Marketing

INFORM, CREATE CUSTOMER AWARENESS

AROUSE INTEREST AND PERSUADE TO TAKE ACTIONS

ENCOURAGE PURCHASE

GAIN LOYALTY

• Media coverage: launch party and fashion shows.

• PR• SMS

• Magazine adverts• Ecatalogues vs

Direct mails• Banners

Example of VM during store-launch

CORPORATE STRATEGY

TOPSHOP

DIFFERENTIATION

Branding Synergy Quality Services:o Refundo VIP shopping experienceo Student discounto Loyalty cardso Gift cards

FOCUS

• Does not cater to Mass market.• Due to pricing and product policy.• Hence targets a niche.• Niche is a small percent of the entire

population, but a large number.

BUDGET

TOTAL INVESTMENT IN INDIA= $1bn

Investment in Delhi= $30mn Investment in Mumbai= $30mn Investment in further tier II and tier

III cities and excess deposit= $40mn

BREAK-EVEN

PARTICULARS AMOUNT ($)

Initial investment (30,000000)

Sales in year 1 3600000

Sales in year 2 7500000

Sales in year 3 15120000

Sales in year 4 20000000

Total sales 46220000

PROFIT after 4 years 16220000