2012

National Institute OF Fashion Technology, Bengaluru Project by: Anaushka Sharma Apurv Sinha Atul Prakash Verma Zia Quamar Tushar Khurana BFT-V

[E-COMMERCE]
Becasual.com apparel e-Business Concept
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Contents
Sr No. Detail Page No

1.

Introduction Literature Survey 2. Company Profile a. Introduction b. Market Analysis i. Clientele ii. Place iii. Price iv. Product & Services v. Promotion 3. Business Model i. Business Flow Process ii. Back End Flow Process iii. Research and development iv. Storage v. Logistics vi. Packaging 4. Conclusion

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INTRODUCTION Terms such as e-commerce or internet commerce have been developed to describe the process in which electronic transactions facilitate the exchange of, and payment for, goods and services between businesses, consumers, government and other public and private organisations using the internet, computer networks and portable electronic devices. The OECD definition of e-commerce further specifies that it relates to the ordering of goods and services over the internet, but the payment and ultimate delivery of the good or service can be conducted on or offline (ACMA 2010a). Online retailing is a subset of e-commerce and refers to the purchase and sale of goods between consumers and retailers using the internet also referred to as the business to consumer (or B2C) market. Other terms are interchanged for online retailing including e-tailing. Online retailing establishments can take the form of pure plays in which businesses provide online only services in particular retail categories or as part of multi-channel establishments where online activities are combined with bricks and mortar operations.

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LITREATURE SURVEY Online apparel retail scenario around the globe: CHINA According to iResearch estimates, the number of online shoppers rose from 108 million in end-2009 to 148 million in end-2010, accounting for 32.4% of Chinas Internet population. According to the iResearch as shown in Exhibit 10, apparel was the most popular categories sold online in 2010. NEW YORK, NY Online sales of apparel and accessories are now growing faster than any other ecommerce product segment, and the category is poised to help US retail ecommerce sales grow 15.4% to $224.2 billion in 2012, after stronger-than-expected sales took the market to $194.3 billion last year, according to a new report by eMarketer.1 AUSTRALIA

Australia has huge market for online apparel retail.2

http://www.emarketer.com/newsroom/index.php/apparel-drives-retail-ecommerce-salesgrowth/#hoJrmcuc0a6Q0V5u.99
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http://www.pc.gov.au/__data/assets/pdf_file/0009/113769/07-retail-industry-chapter4.pdf

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SALES COMPARISON OF E-COMMERCE vs. PHYSICAL STORE3

http://www.buysight.com/blog/2010/02/27/what-are-people-really-buying-online/

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APPAREL E-TAILING MARKET IN INDIA

Increase in sales: The e-commerce business has brought a revolution in the shopping model of India. While the online apparel category continues to top the list of high performers in e-commerce, a study by Technopak Advisors, a consulting firm, reveals this segment will now grow almost ten-fold to nearly Rs 7,000 crores by 2015 pushed by Gen Z who already number 7.4 million. Gen Z interestingly known as the Net Generation has been held responsible for the increase in sales of garments on the internet and making e-tailing a favorite spot for private equity investments. In the last two years, the Rs 650 crores garment e-retailing business on the internet has attracted investments worth $70 million i.e. 40 per cent of the total funding Indian e-retailers bagged during the period.4 Indian apparel Industry grew by 10.4% in 2011 to reach Rs 419bn. It is expected to reach a value of Rs 580bn in 2016, increase of 38.4% since 20115.

http://www.fashionunited.in/news/fashion/e-commerce-boosting-apparel-sales-240820112415 http://www.mbaskool.com/business-articles/marketing/5243-apparel-retail-industry-going-online.html

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Foreign investements The recent inflow of private equity investment firms into many garment start-ups is an indication that the apparel e-tailing platform is reaching a tipping point fast. For instance investment giants like Tiger Capital, IndoUS Venture Partners, Helion Venture Partners, Sequoia Capital and Accel India have invested in the range of $5 million to $52 million in portals like Letsbuy, Flipkart, FashionAndYou, Yebhi, and Snapdeal. 6

http://www.fashionunited.in/news/fashion/e-commerce-boosting-apparel-sales-240820112415 (Wednesday, 24 August 2011)

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Retail Clothing Business Plan 1.1 COMPANY BECASUAL is a start-up retail establishment that will sell fashionable and casual clothing to men and women of the age group 16-30 years at affordable prices and latest and fashionable prices. BECASUAL will be located in Bangalore, which is the IT hub of India. Expansion plans include reaching to 2 and 3rd tier cities with a widened product range. In turn, we would hope to penetrate a sizable portion of the online apparel retail market.

2 MARKET ANALYSIS In the last two years in India, the Rs 650 crores garment e-retailing business has been done on the internet showing a great potential to enter the market. 2.1 CLIENTELLE RESEARCH:Market: Mens share is approximated to decrease to 37% [2015] from 43% [2009], while womens share to increase to 43% [2015] from 38% [2009].7 India has a large and aspirational middle-class of 75 million households or 300 million individuals India also has 500 million Indians under the age of 25. Young Indians have access to more money than before and with this has come independence, aspirations and a demand for products.

http://www.mbaskool.com/business-articles/marketing/5243-apparel-retail-industry-going-online.html (june 2010)

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BECASUAL Clientelle: Age group- 16-30 years.

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 Men and womens wear Middle class Indian population.

2.2 PLACE: Market analysis Major markets for e-tailing of apparel: Among big cities, consumers in Mumbai topped the chart in doing online shopping followed by Ahmedabad and Delhi. However, shopping on the net is gaining traction with consumers beyond metros and Tier I cities as well.8 BECASUAL target market: Metros and major tier-1 cities.

2.3 PRICE: Market analysis9 The margin between manufacturing and sales to retailers is 50-70%, while margin between retailers and point-ofsale to customer is 30-40%.

http://www.fashionunited.in/news/fashion/e-commerce-boosting-apparel-sales-240820112415 (Wednesday, 24 August 2011)

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http://www.mbaskool.com/business-articles/marketing/5243-apparel-retail-industry-going-online.html

(2011)

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BECASUAL target retail price: Multiplication factor- 3 on cost of garments. Flash sales- Multiplication factor- 1.8 on cost of garments. Discounts- multiplication factor- 2.5 on cost of garments.

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http://www.ibef.org/india/economy/

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PRODUCT MARKET ANALYSIS: market share of casual wear is on high demand, as the current generation prefers comfort and quality in an manner

The Clothing Manufacturers Association of India Dress up Sportingly, Feb201111 It is found that rural consumers are also shifting from dhoti to more western garments like trousers and jeans. Indian consumers are often referred to as value-conscious. This does not necessarily imply that consumers want a steal. Instead, they want a well-made product that is priced fairly, and that meets its stated promises.12

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http://www.mbaskool.com/business-articles/marketing/5243-apparel-retail-industry-going-online.html https://www.pwc.in/assets/pdfs/rc-publications/WinningSector.pdf

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BECASUAL PRODUCTS: We will be specialising in casual wears starting with casual bottoms and tees for men and women and accessories. PRODUCT U.S.PComfortability engrafted in most fashionable designs delievered at affordable prices. Detailed product range: Apparel Trousers Tees and tops Polo-tees Shorts Cargos and capris Casual shirts Accessories Caps Handkerchiefs Sunglasses Belts Wallets Funky jewellery sets Limited Editions Bollywood Cricket lovers Festive casuals

General specifications of available products: Colors Silhouettes Embellishments Trims Fabrics Both bright and dull. variety of colors. comfortable and appealing none Funky and casual styles,no intricate detailing. Cotton,denims and other easy to wear and care fabrics. Wrinkle free cotton mix fabrics Sizing no flimsy and delicate fabrics Exclusive sizing charts available

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SERVICES:o DELIEVERY- within 5-7 working days and location dependent o Return policy- within 15 days from date of delievery in fresh condition o Packaging- plastic and sack packaging o High resolution graphics, streaming videos of garments donned by models and 360 viewing . o Discounts on periodic basis. o Customer loyalty points o Recommendations for upcoming products. o Securing size and interests in customer profile. o Multiple payment methods (Cash-on- delievery, debit card, credit card, cash card, net banking). o 3-d view of products and 500% zoom-in(full fabric texture and stiching lines view clarity.) o Vide range of sizes. o Customers can key in their vital measurements to find the right fit.

2.5 PROMOTION Thus, there is a need for the companies to understand the difference in customer profiles and purchasing patterns [buyingbehavior/shopping experience/demographics/shopping orientation] of the buyers from data collected through online portals using web-analytics tools. Thus, helping to create specific campaigns targeted to specific segments. Data can also be used to personalize user interfaces and to provide them with product recommendations as per their preferences. It allows increasing customer loyalty as buyers prefer to shop using interfaces that they are experienced with. It is an inverse scenario, as now people are talking about product categories and services online, and now the
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retailers need to frame the questions from them and derive a sample size from unstructured conversations of communities talking on similar subjects. Online-customer experience need to be improved [like viewing product shots from various angles with zoom to provide fabric-like feel], increase customer engagement by social media strategy, blogs, twitter which provide a good insight and expert opinion which helps the user to make the correct buying decision. [34% of bloggers post opinions about products used & brands and 78% of consumers trust peer recommendations] Thus, the highest influencer in decision making is user reviews at 35%, followed by social media networks like FB, Twitter and Youtube at a combined total of 40%, implying that the word on mouth on social media has a great say.13

Social Media Strategy [70% consumers use FB to be updated on Brands] Targeted marketing campaign, which will include : A grand launch event local media coverage and print advertising campaign on all major portals. fullest use of social media especially facebook. Telivision Advertisement campaigns

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https://www.pwc.in/assets/pdfs/rc-publications/WinningSector.pdf

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BECASUAL.COM BUISSNESS MODEL: Four critical success factors Fashion and pricing The customer experience Freshness of category Long-term business model

Main Flow Process

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Back End Process Chart

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BE CASUAL- RESEARCH AND DEVELOPMENT

Innovate
Lifecycle leadership

Create

Dominate

Rapidly evolving customer demands, technology, competitor actions, etc. are ensuring that product lifecycles shrink.

Customer needs (Planning and forecasting) Establishing R&D and innovation centres market need in terms of product size, pricing, fragrance, look-and-feel, etc. Game-changing ideas R&D identify game changing products. Discontinuous in nature, these products can redefine a category, create new opportunities for growth, make products obsolete and help company establish leadership positions in the minds of consumers.

Storage
Storage at manufacturing facility; maintainence by the manufacturer.

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Logistics:

Packaging We are using Reusable packaging of nonwoven material

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CONCLUSION Value sales of apparel are projected to be very strong over the 20112016 forecast period, driven by a growing shift in preference towards Western clothing and branded products, particularly across tier I cities. Companies are also expected to branch out to tier 2 and tier 3 cities outlets across India, which represent as yet an untapped market for branded apparel. The increasing disposable income in these cities, comfort fitting and rich appeal are the major factors that are expected to drive the apparel market towards long-term growth.

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