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CHAPTER 1
INTRODUCTION

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INDUSTRY PROFILE
1.1 GLOBAL SCENARIO OF TEXTILE INDUSTRY
The Textile & Clothing trade in the global market is fast changing with the scaling up of uses of
textiles in diverse areas. Asian countries including India play a dominant role in the international
trade of the global market. China has the major share in textile and clothing trade in the
international market etc. Both Bangladesh and Hong Kong have a significant share. However,
India is still on the back seat. It is reported that Asian counties export most of textile and apparel
to Europe and North America and USA etc.

Asian countries are gaining in textile trade due to lower costs compared to African, European
and South American countries. As per the Global Textile and Apparel Industry: Vision 2015,
World textile and apparel trade is expected to reach US$ 805 bn by 2015 from US$ 650 bn in
2010. At present few countries like Bangladesh, Thailand, Cambodia, Sri Lanka, Pakistan
contribute major share in Forex earnings of their country from Textile and Clothing trade, though
their share in the world market is not very significant.

Asian countries are facing challenges in the global market due to volatility in price, rising input
cost, energy crisis and lack of marketing initiative/exposure etc. In addition, initiatives need to be
made in the area of Research and Development, Skill Development and Capacity building of the
industry as a whole. Industry has to be in demand driven mode.

It is also noticed that tariff rate in few Asian countries are extremely high, which became a
barrier to scale up the share in the international market. At present a few Asian countries are
enjoying a special status in the global market as per WTO guidelines and able to retain share till
date. But this may not last long because of growing competition emerging from other countries.
Government of the concerned countries also facilitated the sector to grow by framing policy and
keeping provision of incentives/concessions to encourage for international marketing. However,
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India is not enjoying such status and over the years. Indias contribution from textile & clothing
trade in countrys total forex earning shows a declining trend in the last decade. Govt. of India
has made a good no. of initiatives for capacity building, skill development, product
diversification and enhancing global share.

The Indian textile industry has a significant presence in the economy as well as in the
international textile economy. Its contribution to the Indian economy is manifested in terms of its
contribution to the industrial production, employment generation and foreign exchange earnings.
It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of
employment in the industrial sector, nearly 20 percent to the countries total export earning and 4
percent to the Gross Domestic Product.

Indian textile & clothing industry contributes significantly in nations economy in terms of gross
domestic production, foreign exchange earning and employment. About 27% of the foreign
exchange earnings are on account of export of textiles and clothing alone. The textiles and
clothing sector contributes about 14% to the industrial production and 3% to the gross domestic
product of the country. Around 8% of the total excise revenue collection is contributed by the
textile industry. So much so, the textile industry accounts for as large as 21% of the total
employment generated in the economy. Around 35 million people are directly employed in the
textile manufacturing activities.

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Figure 1.1 Trends in Indian textile $ clothing exports

Source: Ministry of Textiles, GOI, www.ministryoftextiles.gov.in
From figure 1.1 it can be seen that, Value-wise share of textiles in total T&C exports has
increased over the years from 52% in 2005-06 to 60.75% in 2011-12,whereas the value wise
share of clothing exports registered a decline over the years from 48% in 2005-06 to 39.25% in
2011-12. The above observations indicates that contribution of textile products in overall exports
is keep on rising whereas clothing exports is declining steadily.

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Figure 1.2: Major textile & clothing export markets
Source: Compendium, the office of textile commissioner
Figure 1.2 represents that the EU27 is the largest export market for Indian T&C products, with a
share of 35% by value of the total T&C exports in 2011-12; UK alone accounts for 8% of Indias
total T&C export value US is the second largest export market with a share of 20% by value of
total T&C exports in 2011-12, Other important export markets are UAE, China, Italy,
Bangladesh and Canada. from the below mentioned figure, it is clear that the both EuroAmerican markets are major markets for Indian textile & clothing exports as more than 50% of
the total exports of T&C is going to these markets.

The textile and clothing trade is governed by the Multi-Fibre Agreement (MFA) which came into
force on January 1, 1974 replacing short-term and long-term arrangements of the 1960s which
protected US textile producers from booming Japanese textiles exports. Later, it was extended to
other developing countries like India, Korea, Hong Kong, etc. which had acquired a comparative
advantage in textiles. Currently, India has bilateral arrangements under MFA with USA, Canada,
Australia, countries of the European Commission, etc. Under MFA, foreign trade is subject to
relatively high tariffs and export quotas restricting Indias penetration into these markets. India
was interested in the early phasing out of these quotas in the Uruguay Round of Negotiations but
this did not happen due to the reluctance of the developed countries like the US and EC to open
up their textile markets to Third World imports because of high labour costs. With the removal
of quotas, exports of textiles have now to cope with new challenges in the form of growing nontariff / non-trade barriers such as growing regionalisation of trade between blocks of nations,
child labour, anti-dumping duties, etc.

Nevertheless, it must be realised that the picture is not all rosy. It is now being admitted
universally and even officially that the year 2005 AD is likely to present more of a challenge than
opportunity. If the industry does not pay attention to the very vital needs of modernisation,

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quality control, technology upgradation, etc. it is likely to be left behind.

Already, its

comparative advantage of cheap labour is being nullified by the use of outmoded machinery.

With the dismantling of the MFA, it becomes imperative for the textile industry to take on
competitors like China, Pakistan, etc., which enjoy lower labour costs. In fact the seriousness of
the situation becomes even more apparent when it is realised that the non-quota exports have not
really risen dramatically over the past few years. The continued dominance of yarn in exports of
cotton, synthetics, and blends, is another cause for worry while exports of fabrics is not growing.
The lack of value added products in textile exports do not augur well for India in a non-MFA
world.

Textile exports alone earn almost 25 percent of foreign exchange for India yet its share in global
trade is dismal, having declined from 10.9 percent in 1955 to 3.23 percent in 1996. More
significantly, the share of China in world trade in textiles, in 1994, was 13.24 percent, up from
4.36 percent in 1980. Hong Kong, too, improved its share from 7.06 percent to 12.65 percent
over the same period. Growth rate, in US$ terms, of exports of textiles, including apparel, was
over 17 percent between 1993-94 to 1995-96. It declined to 10.5 percent in 1996-97 and to 5
percent in 1997-98.

Another disconcerting aspect that reflects the declining international

competitiveness of Indian textile industry is the surge in imports in the last two years. Imports
grew by 12 percent in dollar terms in 1997-98, against an average of 5.8 percent for all imports
into India. Imports from China went up by 50 percent while those from Hong Kong jumped by
23 percent.

Global factors influencing textile industry

The history of the textile and clothing industry has been replete with the use of various bilateral
quotas, protectionist policies, discriminatory tariffs, etc. by the developed world against the
developing countries. The result was a highly distorted structure, which imposed hidden costs on
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the export sectors of the Third World. Despite the fact that GATT was established way back in
1947, the textile industry, till 1994, remained largely out of its liberalisation agreements. In fact,
trade in this sector, until the Uruguay Round, evolved in the opposite direction. Consequently,
since 1974 global trade in the textiles and clothing sector had been governed by the Multi-fibre
agreement, which was the sequel to an increasingly pervasive quota regime that began with the
Short-term arrangement on cotton products in 1962 and followed by the Long-Term
arrangement. After the successful conclusion of the Uruguay Round in 1994, the MFA was
replaced by the Agreement on Textiles and Clothing (ATC), which had the same MFA framework
in the context of an agreed, ten year phasing out of all quotas by the year 2005. The section that
follows takes a brief look at the history of these protectionist regimes as also a more detailed
look at the MFA and the ATC.

1.2 TEXTILE INDUSTRY AT NATIONAL LEVEL

The textile industry is the largest industry of modern India. It accounts for over 20 percent of
industrial production and is closely linked with the agricultural and rural economy. It is the single
largest employer in the industrial sector employing about 38 million people. If employment in
allied sectors like ginning, agriculture, pressing, cotton trade, jute, etc. are added then the total
employment is estimated at 93 million. The net foreign exchange earnings in this sector are one
of the highest and, together with carpet and handicrafts, account for over 37 percent of total
export earnings at over US $ 10 billion. Textiles, alone, account for about 25 percent of Indias
total foreign exchange earnings.
Indias textile industry since its beginning continues to be predominantly cotton based with about
65 percent of fabric consumption in the country being accounted for by cotton. The industry is
highly localised in Ahmedabad and Bombay in the western part of the country though other
centres exist including Kanpur, Calcutta, Indore, Coimbatore, and Sholapur.

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The structure of the textile industry is extremely complex with the modern, sophisticated and
highly mechanised mill sector on the one hand and the handspinning and handweaving
(handloom) sector on the other. Between the two falls the small-scale powerloom sector. The
latter two are together known as the decentralised sector. Over the years, the government has
granted a whole range of concessions to the non-mill sector as a result of which the share of the
decentralised sector has increased considerably in the total production. Of the two sub-sectors of
the decentralised sector, the powerloom sector has shown the faster rate of growth. In the
production of fabrics the decentralised sector accounts for roughly 94 percent while the mill
sector has a share of only 6 percent.
Being an agro-based industry the production of raw material varies from year to year depending
on weather and rainfall conditions. Accordingly the price fluctuates too.

The textile sector in India is one of the worlds largest. The textile industry today is divided into
three segments:
1. Cotton Textiles
2. Synthetic Textiles
3. Other like Wool, Jute, Silk etc.

All segments have their own place but even today cotton textiles continue to dominate with 73%
share. The structure of cotton textile industry is very complex with co-existence of oldest
technologies of hand spinning and hand weaving with the most sophisticated automatic spindles
and loom. The structure of the textile industry is extremely complex with the modern,
sophisticated and highly mechanized mill sector on the one hand and hand spinning and hand
weaving (handloom sector) on the other in between falls the decentralized small scale power
loom sector.

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Unlike other major textile-producing countries, Indias textile industry is comprised mostly of
small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This
unique industry structure is primarily a legacy of government policies that have promoted labourintensive, small-scale operations and discriminated against larger scale firms:

Composite Mills
Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing are
common in other major textile-producing countries. In India, however, these types of mills now
account for about only 3 percent of output in the textile sector. About 276 composite mills are
now operating in India, most owned by the public sector and many deemed financially sick. In
2003-2004 composite mills that produced 1434 m.sq mts of cloth. Most of these mills are located
in Gujarat and Maharashtra.
Spinning
Spinning is the process of converting cotton or manmade fiber into yarn to be used for weaving
and knitting. This mills chiefly located in North India. Spinning sector is technology intensive
and productivity is affected by the quality of cotton and the cleaning process used during
ginning. Largely due to deregulation beginning in the mid-1980s, spinning is the most
consolidated and technically efficient sector in Indias textile industry. Average plant size remains
small, however, and technology outdated, relative to other major producers. In 2002/03, Indias
spinning sector consisted of about 1,146 small-scale independent firms and 1,599 larger scale
independent units.
Weaving and Knitting
The weaving and knits sector lies at the heart of the industry. In 2004-05, of the total production
from the weaving sector, about 46 percent was cotton cloth, 41 percent was 100% non-cotton
including khadi, wool and silk and 13 percent was blended cloth. Three distinctive technologies
are used in the sector handlooms, powerlooms and knitting machines. Weaving and knitting
converts cotton, manmade, or blended yarns into woven or knitted fabrics. Indias weaving and
knitting sector remains highly fragmented, small-scale, and labour-intensive. This sector consists
of about 3.9 million handlooms, 380,000 powerloom enter-prises that operate about 1.7 million
looms, and just 137,000 looms in the various composite mills. Powerlooms are small firms, with
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an average loom capacity of four to five owned by independent entrepreneurs or weavers.
Modern shuttleless looms account for less than 1 percent of loom capacity.
Fabric Finishing
Fabric finishing (also referred to as processing), which includes dyeing, printing, and other cloth
preparation prior to the manufacture of clothing, is also dominated by a large number of
independent, small-scale enterprises. Overall, about 2,300 processors are operating in India,
including about 2,100 independent units and 200 units that are integrated with spinning,
weaving, or knitting units.
Clothing
Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers,
manufacturer exporters, and fabricators (subcontractors).

Determinants

of

Indias competitive

Emerging

Process

competitive

position

Competition

Spinning

Advantage
Quality, cotton price

Medium

Indonesia, Turkey

Weaving

Technology,

Low

Vietnam,

Automation,Power,
Processing

Finance
Scale

economy,

Phillipines
Low

Technology,
Environment
Garmenting

Finance
Labour

China,

Vietnam,

Phillipines
issues,
cost,

Medium

Bangladesh,

Productivity,Brand

Srilanka, Morocco,

fashion design

East

Europe,

Mexico

Table 1.1: Indias competitive position in stages of textile manufacture

Source: http://www.indiantextilejournal.com/articles/FAdetails.asp?id=25

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1.3 TEXTILE INDUSTRY AT STATE LEVEL

Gujarat has unique strengths with respect to the textile industry. It is now the largest producer of
cotton in India, with a share of over one-third of the total cotton production. It is also the largest
manufacturer of man-made and filament fabric and the second largest manufacturer of cotton
fabric and has a dominant share in the production of denim with a one billion metre capacity. The
State contributes to over one-fourth of the countrys technical textiles output.

Gujarat has the highest number of medium and large textile processing houses and
is home to more than 50 per cent of Indias processing machinery manufacturers and 90 per cent
of weaving machinery manufacturers.

The States progress across various segments in the textile value chain has not been uniform. In
2011-12, Gujarat produced the highest cotton output of 120 lakh bales (1 bale = 170 kg) in India.
In spite of this, the State ranked sixth in cotton yarn production because of
inadequate spinning capacities. Consequently, more than 90 per cent of its cotton output is sent
out to other States for value addition.

The State also lags behind in garment production because of unavailability of skilled manpower.
These factors limit the ability of the textile industry in Gujarat to capitalise on abundant raw
material availability and also its ability to earn higher per unit realisation on value-added
products.

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To attract higher investments and to bridge the existing gaps in the textile value chain, the State
Government announced the Gujarat Textile Policy-2012 in September 2012. This policy laid
down an integrated approach from Fibre to Fashion to transform its cotton industry as a leader in
manufacturing of yarn, fabric and garment. It stressed development of the 5Fs Farm, Fibre,
Fabric, Fashion (Garment) and Foreign (Export). The policy has schemes that provide assistance
for developing infrastructure, enhancing skills and modernising technology to make the textile
industry competitive both in domestic and international markets.

Under the new textile policy, the State Government has announced a credit linked interest
subsidy scheme. New spinning units or the existing units (100 per cent cotton, blended or spun
yarn) undertaking expansion, diversification or modernisation can avail a maximum subsidy of
seven per cent. Readymade garment and made-up units are also eligible for similar subsidy.
Other textile weaving and processing units are eligible for subsidy of five per cent. Spinning
units will also be eligible for power tariff concession of a rupee amount and assured supply of
lignite (for units having captive power plant) for a period of five years.

1.4 SURAT TEXTILE INDUSTRY

Surat, an emerging city in the state of Gujarat, is known as the textile city of Gujarat. And, the
epithet is perfectly suited to the city. The textile industry is one of the oldest and the most
widespread industries in Surat. A major part of the citys population is associated with the textile
industry.

The fabric business in Surat is mostly occupied in the works of fiber manufacture, knitting,
doling out at the same time needlework. Surat is well recognized for its artificial goods
marketplace. It is generally occupied in the manufacturing and business of artificial fabric
goods.

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Almost thirty million gauges of untreated material and twenty five million gauges of developed
fabric are fashioned in Surat daily. The town has a number of fabric bazaars that survive since
periods immemorial. Zampa Bazaar, Bombay Market, JJ Textile Market and Jash Market are
along with them. Katar Gam, Magdalla as well as Udhna are the regions of Surat where
industrialization is mostly determined. In the route of point, citizens from a variety of places like
Rajasthan along with Kolkata established in Surat in order to bring out their fabric big business.

Overview of the Surat textile industry

The textile industry in Surat is mainly engaged in the activities of yarn production, weaving,
processing as well as embroidery. Surat is well known for its synthetic products market. It is
mainly engaged in the production and trading of synthetic textile products.

Nearly 30 million metres of raw fabric and 25 million metres of processed fabric are produced in
Surat daily. The city has several textile markets that exist since times immemorial. Zampa
Bazaar, Bombay Market, JJ Textile Market and Jash Market are among them. Katat Gam,
Magdalla and Udhana are the areas of Surat where manufacturing is mainly concentrated. In the
course of time, people from various other places like Rajasthan and Kolkata settled in Surat in
order to carry out their textile business.

Brands from Surat

The famous brands of Garden and Vimal textiles evolved from Surat. A few other brands like
Parag and Prafful from Surat did become famous for a short time, but failed to create a lasting
impression in the market.
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Major markets

The main market for Surats textile products are India and other Asian countries. Around 90% of
polyester used in India comes from Surat. However, international demand for its products is not
very significant. The Middle East is the major export market for Surats textile products.
According to experts, more improvisation in the quality is required to cater to the demands of the
international market.

Growth

The Surat textile industry has grown considerably over time. As per recent figures, textile
production in Surat has grown by 10% in the last 5 years, while the market for embroidery has
grown from an almost negligible amount to around Rs. 30000 million over the same period.

Strengths

One of the main reasons behind the growth of Surats textile industry is the citys ability to adapt
to changes and the latest trends. The city is quick to respond to any changes in the preferences of
people. The industrialists here have strong entrepreneurial skills.

Challenges faced

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The

Surat

textile

industry

has

gone

through

quite

few

setbacks

as

well.

Most of the traders have a fixed group of clients, with whom they trade. Most of the business is
done on a credit basis. According to the Federation of Surat Textile Traders Association, the
industry suffered a loss of Rs. 200 crores in the year 2004-05 on account of frauds by customers.
The industry suffered a huge loss in the floods of 2006 as well. Around 40000 textile shops were
damaged in Surat in these floods and the total loss was reported to be at Rs.10 crore per day.
However, the city has always been quick to rise from these setbacks.

The rising cost of power and labour, which consequently raises the cost of production is another
issue faced by the Surat textile industry. Most of the labour employed in this industry is unskilled
and comes from various areas such as Bihar, Orissa, Maharashtra and Uttar Pradesh. The
industry faces shortage of skilled labour. Moreover, severe labour crunch is felt by the industry
during

April-June

when

the

labourers

travel

to

their

hometowns.

The government has set up institutes to train the labourers, but these institutes are not very well
equipped. The lack of an international airport in Surat contributes to the low demand for its
products

in

the

international

market.

It is also necessary to update the technology used in the industry as well as the infrastructure.

Conclusion

In spite of certain drawbacks, the city occupies a major position in the production of manmade
fabrics. Around 65% of Indias manmade fabric production is done in Surat. The city expects a
growth rate of 15-20% in manmade fabric demand in the near future. Hence, the future of the
Surat textile industry does look bright.

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In Surat Textile Market, Federation Of Surat Textile Traders Association (FOSTTA) is an

association of Textile Processing units of Surat Textile Market. There are around 60,000
traders(firms) and 160 markets associated with FOSTTA. FOSTTA addresses common concerns
of these units and take care of presentations and representations on their behalf to several
Ministries, Government Departments, Semi Government Institutions and Private Companies.
FOSTTA is a common platform for all the processing units of this area for constructive
interaction and mutually beneficial policy making.

1.5 PEST ANALYSIS OF INDIAN TEXTILE INDUSTRY

Political Factor

An industry will not be able to gain success, good reputation and trust if it will not consider legal
and political sector as a part of their strategy. Also it is essential that the industry should be able
to consider political and legal aspects so as to show that they value the policies and regulations
of the Government in any of the business operations.
For the upliftment of textile sector Government has taken some steps:-

1) The Government has announced the release of a subsidy of US$ 533.87 million for the textile
industry under the Technology Up-gradation Fund schemes (TUFs).

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2) The Government extends 10% capital subsidy and 5% interest subsidy on installation of
machineries and for processing machinery under the TUFs.
3) A 41-member Working Group has also been announced to be set up with a National Fiber
Policy, to ensure self-sufficiency in fiber consumption and export requirements in India.

Economic Factor

It is important that apparel must also give enough attention to its economic stability. The
economic goal of a certain industry is like an axis in which other objectives or goals are
revolving. The economic factor involves the context in which an industry belongs, i.e. the
configuration of the competition in which a company operates the active demand of the products,
general economic condition of the nation or region, conditions in relation with other industries,
and the situation of the resource markets.

Economic stability
Economic growth
Interest rates
Inflation rates
Exchange rates

The economic condition of world affects the industry as increasing inflation rate make the cost of
production high and thus reduce the profit margin of the industry.

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In the same way with increase in banks interest rate, money would float less in the market and
as a result there would be inflation and it would affect the purchasing power of consumers and
ultimately results depression in the textile industry.

Socio-Cultural Factor

Society and culture is an important factor that must be given emphasis by any business,
specifically those who are operating in the global arena. It is important that the company must
operate in compliance with the social systems in order to gain good reputation and effective
public image. On the other hand, cultural aspects is equally essential, in order to understand the
various needs of different individuals that belongs to different cultures.

Population growth rate

Age distribution
Career attitudes
Consumer behavior
Religion and culture itself

The change in the lifestyle of the people affects the growing demand of the apparels. The change
in the lifestyle and needs in different demographics also affect the demand of the customers.

Technological Factors

The complexities of achieving business success through increased efficiency, effectiveness and
competitiveness, combined with innovative applications of modern technology, has heightened
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the awareness of both technology and business managers towards more strategically oriented
approaches for planning and management of any industry. Hence, it is important that industry
must be able to give consideration to the technological aspects.

The technology has been improved and updated in the textile industry of India and some of the
companies in textile industry are acquiring these technologies. By using new technology not only
they improve their quality and efficiency but also improve their production as well as reducing
the cost of production

1.6 EMERGING TRENDS OF INDIAN TEXTILE INDUSTRY

Emerging trends in textiles

Benchmarking, HRD, best management practices, and quality certifications have only
recently started gaining importance in the textile industry. But these are limited to only the
professionally managed companies.
With the growth of RMG units in the country there has been a demand for made-to-order
fabrics often in smaller lots, which is best suited for production in the decentralised sectors:
the powerloom (200-250 m per 8-hr shift) and handloom sectors (around 5 m per 8-hr shift).

The Indian textile industry as a whole is plagued with the problem of excess capacity with
the presence of a large number of players in each sector none of whom is large enough to
stimulate demand. For example, the excess capacity in fabric production can be seen from the
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gap between the per capita availability of around 31 sq metres of cloth and the per capita
consumption of 20 metres of cloth. This is the trend during the period of more than a decade.

Imports of fibres, yarn and cloth into India are on the increase.

There has been significant investments observed across the supply chain of the textile
industry over a period of five years.

Due to globalisation, the industry has shown some signs building competitiveness not only in
terms of price but also in terms of quality. This can be gauged from the reports that some of
the global retail giants are beginning to source Indian fabrics.

Prices: Prices of raw cotton are on the increase. The WAV price increased by around 18%
during the five-year period 1999-2004.

The prices of man-made fibres were also on the increase. The average prices of viscose staple
fibre, polyester staple fibre and acrylic staple fibre increased by 16%, 59%, and 40%

respectively during the period 1999-2004.

The WAV prices of cotton hank, cone and hosiery yarn increased by 42%, 19% and 34%
during the period 1999-2004. However, the prices Filament yarn were on the decline by 12%,

15% and 7% in case of POY, NFY and VSY respectively during the same period.
The mill-made cotton and blended cloth increased by 6% and 5% respectively during the

period 1999-2004 but the synthetic cloth declined by 8%.

The price of powerloom grey cotton cloth and synthetic cloth increased by 8% and 23%
respectively and the blended cloth remained the same during the period 1999-2004.

Emerging trends in clothing industry

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Indian garment producers are now installing new technology not only for production but also
for design, communication and integration of the entire supply chain.
Branded garments are beginning to occupy Indian retailers shelves. The trend is the
combination of exclusive brand stores and multi-brand outlets.
Technological transfer is beginning to take place at a higher speed after de-reservation of
garment sector.
Information Technology plays a crucial role in apparel manufacturing. Global partners in the
clothing supply chain are exchanging information electronically.

Mass customisation and digital printing for meeting unpredictable demand levels, for luxury
goods, uncertain customer wants and for heterogeneous demand.
Eco-parameters and Eco-labelling are gaining importance.

With globalisation of apparel production and trade, the supply chain has become multi-faceted
and multi-layered. Some of the tips to cope with the globalisation:

1. The apparel marketer will have to create their own niche instead of "me too" or follow-theleader strategy. Should not panic but strategise.

2. Keep the options open whether to market based on your brand name or supply to established
brand or to a retailer brand. Be open as a source for outsourcing.

3. In marketing, the quality is taken for granted. Gone are the days there is a price-quality match
and so on. Now the other non-price issues are taking the lead like brand quality of the product
and so on.

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4. Cluster approach will take care of the supply chain management and its associated benefits
like reduced lead-time, cost minimisation and quality improvements and so on.

5. When supplying to big retail chains like Wall Mart, Marks & Spencer, Tommy Hilfiger they
would need garments in huge volumes. One should have a back-up of quality textile supplies
(SCM concept).

6. China experience: They kept their growth in apparel exports by sourcing quality textiles from
all over the world and by having established strong garment manufacturing industry and through
JV of leading garment operators all over the world, they could tap the world market. Thus the
success is due to outsourcing and JV strategy.

7. In international market also big players and small players as in domestic market are emerging.

8. Big players like big brands and branded retail chains will need large volumes of single type of
garments of different sizes. Eg, men's shirts with single pocket and two sleeves and trousers with
two pleats are standard design and can be manufactured in large volumes. But small players in
retail will need small runs/volumes need small volume but variety. Here the small RMG units
can cater. Besides children and ladies garments are varietal in nature in terms of design and
styling and in small volume for a given design here the SME RMG units can play a role.

9. Focus on lesser-known centres or the non-metro places to market the garments like interior
places abroad.

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1.7 MAJOR PLAYERS OF INDIAN TEXTILE INDUSTRY

Top companies in Textile industry in India:

Bombay Dyeing
Fabindia
Grasim Industries
JCT Limited
Lakshmi Mills
Mysore Silk Factory
Arvind Mills
Raymonds
Reliance Textiles

Some details regarding these top players in the textile industry in India is given below:

Bombay Dyeing
Bombay Dyeing came into existence in the year 1879 as a small company dealing with Indian
spun cotton yarn dip-dyed by hand and now the company has grown into one among the top
textile companies in India. They are one of the trusted and respected brand name in the textile
industry and some of the products manufactured by them are:

Sports wear
Kids wear
Womens wear
Mens wear
Home furnishing like sofa covers and screen clothes
Bath towels
Bed spreads and sheets

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Fabindia
Fabindia is operating from its headquarters in Delhi and they are popular for their traditional
techniques and hand-based processes. They are acting as a link between craft-based rural
producers and modern urban markets, which in turn creates a wide range of rural employment
thereby preserving the tradition of India. Their textile products are affordable, contemporary,
craft-based and natural.

Grasim Industries
Grasim Industries is a subsidiary of the popular Aditya Birla Group and they are one among the
largest private sector companies in India. The company began its journey as a textile company in
the year 1948 and now they are dealing with different products like cement and chemicals in
addition to textiles.

JCT Limited
JCT Limited is one among the leading manufacturers of filament yarn and textiles in India and
they are the subsidiary of Thapar Group. Some of their best features like high standard of
performance, work ethic and values has made this company to reach this height.

Lakshmi Mills
Lakshmi Mills came into existence in the year 1910 and this company has contributed to the
development of Textile Industry in Tamil Nadu in general and to the district of Coimbatore in
Tamil Nadu. Right from their inception they are working towards their prime objectives of
customer satisfaction and quality production and because of this they have reached this height.
The company is looked with great respect since it not only developed itself, but has also let ways
for other companies to develop in this sector.

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Mysore Silk Factory
Mysore Silk Factory is located in the city of Mysore in Karnataka and they are dealing with the
production of quality silk textiles for end-user consumption. Different high end machines are
being used by them for the production of quality silk clothes. The company began its journey in
the year 1930 with just 10 looms and now they have 159 looms, pirn machines, warping
machines and several other preparatory machines as well.

Arvind Mills
Arvind Mills is acting as trendsetting company in different styles of textiles and they are now
acting as synonymous of a wide range of life-style products. The company has carved out of an
aggressive strategy to develop their current strategy by setting up world scale garmenting
offering and facilities.

Raymonds
Raymonds group came into existence in the year 1925 and within a short period of their
establishment they have emerged as a global name in the textile industry. A number of group
companies are operating under Raymonds and some of their popular brands are:

ColorPlus
Park Avenue
Manzoni
Raymond Premium Apparel

Reliance Textiles
As we all know, Reliance is a big name in a number of industries in India and they have made
their mark in the textile industry as well. Their flagship Vimal, which was re-launched in the year
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2007-08 is one among the trusted brand name in the textile industry. They are acting as one
among the top modern textile complexes in the whole of Asia and they are trying out new
product initiative, which includes the following products:

Production of Mosquito repellent nets according to the standard laid by World Health

Organization
Auto-textiles & home furnishings
Water-repellent and fire-retardant tent fabrics to help out police and defense service

These top players in the textile industry, contribute a great to the development of the countrys
economy by offering to the export industry of the country and by offering wide range of
employment opportunities.

INTRODUCTION TO COMPANY
1.8 COMPANY OVERVIEW
Established in the year 2012, at Surat (Gujarat, India), Occeanus Collection Pvt. Ltd. are a
sole

proprietorship

firm,

engaged

in manufacturing and supplying an

elegant

range

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of Designer Lehenga, Fancy Lehenga, Lehenga Choli, Anarkali Suit, Fancy Suit, Designer
Suit, Party Wear Suit and Exclusive Suit. These garments are designed in conformity with
latest fashion trends in our high-end designing unit by our skilled designers. In order to design
these garments, they use excellent quality fabric and other basic material, sourced from the
reliable and authentic vendors of market. By utilizing advanced techniques and machines, they
design these garments in different designs, colors, patterns and sizes to meet the different
requirements of our clients. Offered garments are highly appreciated for characteristics like
beautiful design, colorfastness, perfect fitting, smooth texture and skin-friendliness.
Their competent professionals are high skilled and passionate, selected after systematic selection
procedures. Endeavor hard to meet precise requirements of clients, their experts infuse enormous
creativity while designing these garments. Their team of skilled professionals is the backbone of
organization and attains all the set goals within predetermined time frame. Further, they are
backed with a contemporary infrastructure facility that comprises several departments, which are
equipped with highly advanced machines and technologies. Being a quality centric organization,
they make certain to provide their clients with premium quality garments. Further, their fair
business polices also help us to accomplish optimum satisfaction of their esteemed clients.
With thorough knowledge and understanding of their mentor Mr. Kettan Megotia, they have
been meeting the exact requirements of theirr esteemed clients. He holds good reputation in the
market and also assists them to attain organizational goals.

BASIC DETAILS
Incorporation Date

Registration Number
070261

09/05/2012

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Company Type

Listing Type

Private

Unlisted

Industry Category

Company Nature

Manufacturing (Textiles)

Company limited by shares

Company Sub Category

Registering Authority

Indian Non-Government Company

Registrar of Company-Ahmedabad

Authorized Capital

Paid-up Capital
Rs. 19,80,000.00

Rs. 50,00,000.00

Company Profile
Basic Information

Manufacturer

Supplier

Trader
Private Limited Company
Employs 51 to 100 People

Company USP

Large Product Line

Good Financial Position &

TQM

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Large Production Capacity

Provide Customized Solutions

Registered Address
PLOT NO. A-28/1 ICHHAPORE, BHATPORE
SURAT
Gujarat
INDIA
394510

1.9 Products Offered:

Designer Lehenga
Our range of products include Designer Lehenga such as Exclusive Designer Lehenga, Trendy
Designer Lehenga, Ladies Designer Lehenga, Modern Designer Lehenga and Fashionable
Designer Lehenga.

Fancy Lehenga
Leading Manufacturer and Supplier of Fancy Lehenga such as Ladies Fancy Lehenga, Modern
Fancy Lehenga, Trendy Fancy Lehenga, Designer Fancy Lehenga and Latest Fancy Lehenga
from Surat.

Lehenga Choli
Our product range includes a wide range of Lehenga Choli such as Designer Lehenga Choli,
Modern Lehenga Choli, Trendy Lehenga Choli and Fashionable Lehenga Choli.

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Anarkali Suit
Leading Manufacturer and Supplier of Anarkali Suit such as Exclusive Anarkali Suit, Trendy
Anarkali Suit, Ladies Anarkali Suit, Latest Anarkali Suit and Modern Anarkali Suit from Surat.

Fancy Suit
We are a leading Manufacturer & Supplier of Fancy Suit such as Georgette Fancy Suit, Ladies
Fancy Suit, Exclusive Fancy Suit, Modern Fancy Suit, Trendy Fancy Suit and Chiffon Fancy
Suit from India.

Designer Suit
Our product range includes a wide range of Designer Suit such as Exclusive Designer Suit,
Georgette Designer Suit, Modern Designer Suit, Trendy Designer Suit, Chiffon Designer Suit,
Exclusive Suit and many more items.

Party Wear Suit

Our range of products include Party Wear Suit such as Chiffon Party Wear Suit, Georgette Party
Wear Suit, Designer Party Wear Suit, Modern Party Wear Suit, Latest Party Wear Suit, 7012black Partywear Suits and many more items.

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CHAPTER 2
LITERATURE
REVIEW

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LITERATURE REVIEW
This article examines the differences between consumers expectations and perceptions of service
quality they received when shopping apparel specialty stores. Also takes into account consumer
demographic characteristics. Utilizes SERVQUAL scale and methodology developed by
Parasuraman et al., (1991). Calculates gap scores by subtracting the expectation scores from the
perception scores. Using a factor analysis procedure, four determinants of service quality
emerged: (1) Personal Attention; (2) Reliability; (3) Tangibles; and (4) Convenience. Findings
indicate greatest disparity between expectations and perceptions for the Personal Attention factor.
Consumer demographic characteristics of race, marital status, and income provided significant
differences between expectations and perceptions for Reliability and Convenience. Also
considers the importance of service as a patronage criterion for apparel specialty store
consumers. Indicates that service ranked third in importance behind merchandise assortment and
price. (Gagliano & Hathcoto, 1994)
This article investigates the relationship between consumer satisfaction and brand loyalty. More
specifically the moderator effect of elaboration upon the relationship between two different types
of consumer satisfaction and true brand loyalty is investigated.
First, in defining brand loyalty, a distinction is made between repeat purchasing behavior and
brand loyalty. Next, true brand loyalty is distinguished from spurious brand loyalty. Second, two
types of consumer satisfaction are distinguished based on the amount of elaboration upon the
evaluation of the brand choice: manifest satisfaction and latent satisfaction.
It is hypothesized that the positive relationship between manifest satisfaction and true brand
loyalty is stronger than the positive relationship between latent satisfaction and true brand
loyalty. In other words, a moderator effect of the amount of elaboration upon the relationship
between consumer satisfaction and true brand loyalty is expected and found. Also, some other
effects are found indicating that the relationship between consumer satisfaction and brand loyalty
is not simple and straightforward. (Blomer & Kasper, 1995)
The authors extend consumer satisfaction literature by theoretically and empirically (1)
examining the effect of perceived performance using a model first proposed by Churchill and
Surprenant, (2) investigating how alternative conceptualizations of comparison standards and
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disconfirmation capture the satisfaction formation process, and (3) exploring possible multiple
comparison processes in satisfaction formation. Results of a laboratory experiment suggest that
perceived performance exerts direct significant influence on satisfaction in addition to those
influences from expected performance and subjective disconfirmation. Expectation and
subjective disconfirmation seem to be the best conceptualizations in capturing satisfaction
formation. The results suggest multiple comparison processes in satisfaction formation. ( David
& Wilton, 1988)
Although both consumption emotion and satisfaction judgments occur in the post-purchase
period, little is known about their correspondence. This article investigates the interrelationships
between the two constructs by way of taxonomic and dimensional analyses to identify patterns of
emotional response to product experiences Five discriminable patterns of affective experience
were uncovered, which were based on three independent affective dimensions of hostility,
pleasant surprise, and interest. The results extend prior findings of a simple bidimensional
affective-response space and reveal that satisfaction measures vary in their ability to represent
the affective content of consumption experiences. ( Westbrook & Oliver, 1991)
The authors propose a framework for understanding key mechanisms that shape satisfaction in
individual encounters, and loyalty across ongoing exchanges. In particular, the framework draws
together two distinct approaches: (1) agency theory, rooted in the economic approach, that views
relational exchanges as encounters between principals (consumers) and agents (service
providers) and (2) trust research that adopts a psychological approach toward consumer-provider
relationships. In so doing, the authors specify how trust mechanisms cooperate and compete with
agency mechanisms to affect satisfaction in individual encounters and influence loyalty in the
long run. Because a multidimensional conceptualization of trust is used, the hypothesized
framework offers a fine-grained understanding of the interrelated mechanisms. The high level of
specificity allows extraction of multiple propositions, facilitates empirical testing, and
encourages theoretical development of the proposed model. Several directions to guide future
research are provided. (Swan & Combs, 1976)

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Although the "disconfirmation of expectations" model continues to dominate research and
managerial practice, several limitations indicate that it is not a complete picture of satisfaction
formation. The authors propose a new model of the satisfaction formation process that builds on
the disconfirmation paradigm by specifying a more comprehensive model that includes two
standards in a single model and specifically incorporates the impact of marketing communication.
An empirical test of the model provides support for the hypothesized relationships and a better
understanding of the mechanisms that produce satisfaction. (Spreng & MacKenczie, 1996)
Disconfirmation models of customer satisfaction employing three alternative standards of
performance were compared by using causal modeling. Pre- and post-measures were obtained
from subjects in three different use situations. The disconfirmation paradigm is supported. The
analysis suggests that best brand norm and product norm are additional standards used for
evaluating focal brand performance. (Cadotte & Jenkins,1987)
Research on consumer satisfaction with products has typically ignored influences other than the
confirmation of expectations relative to product outcomes. This paper examines the impact of
broader, intrapersonal affective variables on satisfaction, and presents empirical results on the
relative effects of both types of influence. ( Westbrook, 1980)
Consumer satisfaction has recently become a particularly salient concern for both business and
government. This increased interest, however, has generated a relatively meager amount of
research designed to assess the determinants of consumer satisfaction and dissatisfaction. This
paper critically analyzes the existing survey and experimental research in this area, focusing on
conceptual and methodological issues. An alternative model of consumer satisfaction based upon
Thibaut and Kelley's (1959) comparison level theory is proposed. (Peat, 1986)
Conflicting models exist in the literature of the process through which perceived quality and/or
satisfaction affect behavioral intentions. Further, virtually no theoretical framework has been
explicitly developed to help combine perceived quality models with satisfaction models. This
article applies a theoretical framework to help build a model that attempts to explain the
relationships among disconfirmation of expectations, perceived quality, satisfaction, perceived
situational control, and behavioral intentions. The study compares the ability of two models to
help explain the relationship among these variables. The results of the study suggest that the
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focal and contextual dimensions of disconfirmation of expectations affect perceived quality
enroute to their influence on behavioral intentions. Additionally, the results indicate that
perceived quality affects satisfaction and behavioral intentions are affected by satisfaction.
(Brown, Gotileb & Jerry, 2001)
This paper reports two studies (i.e., an experimental design and a field study) that examine the
effects that different levels of service recovery have on satisfaction, purchase intentions, and
one's propensity to spread positive word-of-mouth (WOM). The results indicate that moderate to
high service recovery efforts significantly increase post-failure levels of satisfaction, purchase
intent, and positive WOM. Alternatively, poor service recoveries seemingly exacerbate the
discontent attributed to a service failure. The results do not support a recovery paradox, whereby
post-recovery satisfaction is greater than that satisfaction prior to the service failure. In addition,
the studies suggest that firms may not always benefit (in terms of consumer perceptions) from
service recovery efforts over and above a moderate level. (Maxham, 1985)
We examine one-on-one relationships between customers and sales associates, which we refer to
as relationship selling to differentiate it from relationship marketing, using a qualitative research
approach. We conducted observations of and interviews with a successful group of retail sales
associates and a set of their call customers. Based on our data, a relationship
formation/enhancement model emerged, which focused on: (1) commitment and orientation to
customer service by top management and employees, as well as a desire for a relationship by the
customer; (2) augmented personal service and team playing by employees; (3) repeat customeremployee interactions based on trust, friendship, and functionality; and (4) development of
customer loyalty to the sales associate and firm, and employee reinforcement and loyalty to the
company and customer. (Gagliano & Hathcoto, 1994)
Consumer perceptions of retail store attributes for a set of particular stores were examined to
determine their effect on store preference. Respondents rated 13 stores. Four variables were
found to affect store preference using forward stepwise logistic regression: type of clothing
desired in stock, outside store appearance, shopping hours, and advertising. Significance of the
effect of store attributes on store preference varied by store type. In addition, associations
between customer perception of store attributes, education and age were observed. Implications
for researchers and practitioners are discussed. (Paulins, 2003)
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The purpose of this study is to examine first, whether there are differences in risk perception
between the USA and Korea, second, whether there are differences in risk perception between
apparel purchasers and nonapparel purchasers across countries, third whether there are
differences in the effect of risk factors on purchasing intention between the USA and Korea, and,
fourth, whether there are differences in the effect of risk factors on purchasing intention between
apparel purchasers and nonapparel purchasers across countries. The findings suggest that there
were differences in consumers risk perception between apparel and nonapparel purchasers
across countries. In addition, there are similarities and differences in the relationships between
risk perception and purchase intention across countries. (Choi & Lee, 2003)
This article includes:
Purpose Conflicting marketing messages have caused consumers to misunderstand distinctions
between sustainability and environmental concern, especially when considering the apparel
industry. This study seeks to explore consumers actual knowledge and sentiment towards
sustainability and environmental issues, both in general and in the apparel industry.
Design/methodology/approach Data were collected through openended survey questions
collected from 80 young Generation Y college students, aged 1825.
Findings Findings show a low level of knowledge of the holistic principle of sustainability and
specific adverse effects of the apparel industry. Participants feel steps must be taken towards
sustainability, and that every effort helps, despite some skepticism. Results confirm the need for
more concise educational and marketing campaigns.
Originality/value This study sought to provide a snapshot of current young consumers attitudes
as a tool to encourage more specific and salient directions for future growth of the movement in
consumers and companies, adding further insight to the literature on Generation Y as consumers
and citizens. (Hill & Lee, 2012)
For a clothing system, comfort is a fundamental necessity. In this paper, basic definitions and
elements of clothing comfort and the general research trends were reviewed. In particular,
understanding comfort of textile materials, its relevance to clothing choice and some assessment
methods have been discussed. The impact of fabric and clothing attributes on clothing comfort
was explored. Psychological, physical and physiological perceptions of clothing comfort were
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reviewed, including subjective and objective modes of assessment. A thorough discussion of
handle comfort was presented, including assessment methods. Statistical presentations from
selected comfort studies were also reviewed. Other sensory comfort properties particularly
acoustic and appearance were also mentioned. From the aforementioned reviews, it was noted
that the main focus for most researchers has been on sensorial and thermal comfort. (Kamalha &
Zeng, 2013)

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CHAPTER 3
RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY
3.1 Research design:Research design is the plan for collecting the information related to the study. Research design
explains the methods that are used for collecting the information. The research design will focus
attention on the different methods that are used for collection of the data. Also it will help to
solve the problem. Different forms of collecting the data will be tasted in the research design.
Survey method is used to collect the necessary data. In the survey method, the personal interview
is used to collect the information from the respondents through structured questionnaire. The
respondents are visited personally, and the detail information is collected related to the study.
Choice of the research design:A research design specifies the methods and procedure for conducting a particular study. Broadly
the research can be grouped in to three categories.
Exploratory research
Descriptive research
Casual research
In my study, I have used descriptive research method to collect necessary information related to
the study
3.2 DATA COLLECTION METHODS
(1) Primary Data:Primary data are those, which are collected for the first time and they are original in character. A
set of questions regarding study was drawn up. The total numbers of questions were twelve.
The questions asked were either dichotomous or multiple choice hence taking only 2-3 minutes
of each respondent.

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(2) Secondary Data:The secondary data are collected through the Books, Magazines, literature review, past records
maintained by the company and also from the information available on the internet.

3.3 DATA COLLECTION TECHNIQUES

Sampling Size:
A random sample of 100 respondents of Surat city was selected.
Sampling Method:
Convenience Sampling: Convenience Sampling has been selected because this study requires
independent unbiased respondents where they were selected according to their economic status.
Questionnaire:
A structured interview using a questionnaire was adopted as the survey tool.
Printed and Digital Sources:
The secondary data I collected was through the study of the published research articles and
research papers by renowned authors and online websites which helped me in fulfilling the needs
of my report.
Analyses of Data:
The data so generated was subjected to rigorous statistical treatment and the inferences were
drawn accordingly. The basic analytical tools like bar charts and pie charts are used.
3.4 LIMITATIONS:
There are a few limitations associated with this research because of the data collection technique
that would have compromised the results. As the source of Data collection was both Primary and
secondary, so there are chances that issues and concepts have been assumed to achieve at the
specific outcomes.

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3.5 OBJECTIVES OF THE STUDY
1. To analyze whether there exists a relationship or association between the demographics and
other factors such as price, location, frequency of purchase, etc
2. To determine how much the employee behavior affect the satisfaction level of the consumers.
3. To analyze the factors responsible to increase or decrease consumer satisfaction level.

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CHAPTER 4
DATA

ANALYSIS

AND

INTERPRETATION

4.1 DESCRIPTIVE ANALYSIS

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1. AGE GROUP :
o 10 20 years
o 20 30 years
o 30 40 years
o 40 50 years
o 50 years or above
OBSERVATION:

AGE
20-30
30-40
40-50
>50

NO. OF PEOPLE
8
14
73
5

No. of people

5% 8%

20-30
14%

30-40
40-50
>50

73%

DESCRIPTION
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The population majorly lie between the age group 40-50 i.e.73%. Next major group is 30-40 with
14% of the population. 8% of the total population lies between the age group 20-30 and only 5%
lie in the above 50 age category.
From this we can analyze that the major consumer of the company are middle aged people.

2. IS THE LOCATION OF THE SHOP CONVENIENT FOR YOU?

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o Yes
o No
OBSERVATION:

LOCATION
YES

NO. OF PEOPLE
95

NO

No. of people
100
80
No. of people

60
40
20
0
yes

no

DESCRIPTION
95% of the population feel that the location of the job is convenient to them and only 5% of the
population believe that it is inconvenient.
From this we can clearly state that the location of the shop is convenient to majority of the
population and does not create a hindrance for consumers in the purchase of the product.

3. PREFERABLE PRICE RANGE :

o Below Rs. 5000
o Rs. 5000 - 15000
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o Rs. 15000 - 25000
o Rs. 25000 and above
OBSERVATION:
PRICE
>5000
5000-15000
15001-25000
>25001

PEOPLE
28
61
11
0

70
60
50
>5000

40

5000-15000
30

15000-25000
>25000

20
10
0
PEOPLE

DESCRIPTION:
Out of the total respondents 61% prefer products ranging between Rs5000-15000 , 28% prefer
products ranging below Rs5000 and only 11% prefer products which range between Rs1500025000. However none of the respondents prefer goods above Rs.25000
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From this we can clearly interpret that majority of the consumers who purchase from this
company prefer goods ranging between Rs0-15000 i.e. goods which are reasonable. Higher
range products are preferred by only 1/10th of the entire population.

4. HOW FREQUENTLY DO YOU PURCHASE DRESSES?

o Quarterly
o Half - yearly
o Yearly

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OBSERVATION:
PURCHASE FREQUENCY
QUARTERLY
HALF YEARLY
YEARLY

No. of CONSUMERS
16
79
5

PEOPLE

5% 16%

quarterly
half yearly
yearly

79%

DESCRIPTION:
Out of the total respondents 79% purchase goods half yearly, 16% purchase goods quarterly and
only 5% purchase goods yearly.

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From the above data we can interpret that majority of the consumers of Occeanus Collection
prefer to purchase goods half yearly or we can say within the duration of 6 months hence it is
essential for the company to bring new collection of products atleast in a span of every 6 months.
However a variety of products must be maintained for consumers who purchase goods quarterly.

5. WHO RECOMMENDED YOU THIS SHOP?

o
o
o
o

Friends
Relatives
Advertisement
Other if any, _____________________

OBSERVATION:
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RECOMMENDATION BY

No. Of PEOPLE

FRIEND

36

RELATIVE

48

ADVERTISEMENT

OTHERS

14

No. Of PEOPLE

14%
2%

36%

friend
relative
advertisement
others

48%

DESCRIPTION:
Out of the total respondents 48% have been recommended by their relatives ,36% by their
friends ,14% by other sources and only a mere 2% by advertisement.
Hence we can say that majority of the consumers rely on word of mouth rather than other forms
of promotion. Also the company needs to up its advertisement skills in order to capture the
potential consumers.

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6. Have you made any previous purchases from this shop?

o Yes
o No

OBSERVATION:
PREVIOUS PURCHASE
YES
NO

NO. OF PEOPLE
67
33

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80
70
60
50
40
30
20
10
0

67

33

yes

no
No. Of PEOPLE

`
DESCRIPTION:
Out of the total respondents 67% have purchased from the shop previously while 33% have not.
From the above analysis we can interpret that more than half of the consumers have purchased
from the shop previously, which shows that the consumers are loyal to the company.

7. Were our store employee

- Available when you needed them?
o Yes
o Somewhat
o No
OBSERVATION:
EMPLOYEE AVAILABILITY
YES
SOMEWHAT
NO

NO. OF PEOPLE
9
76
15

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No. Of PEOPLE
15%

9%
YES
SOMEWHAT
NO

76%

DESCRIPTION:
Out of the total respondents 76% feel that the employees were somewhat available, 9% feel they
were definitely available while 15% feel they were not available at all.
From the above analysis we can interpret that the employees were somewhat available but not
very much available to the majority of the consumers. Hence the company should increase the
number of employees to incease employee availability to ensure optimum consumer satisfaction
level.

- Polite?
o Yes
o Somewhat
o No

OBSERVATION:
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EMPLOYEE COURTESY
YES
SOMEWHAT
NO

NO. OF PEOPLE
2
95
3

NO. OF PEOPLE
2%
3%
YES
SOMEWHAT
NO

95%

DESCRIPTION:
Out of the total respondents 95% feel that the employees are somewhat polite, 2% feel they are
definitely polite while only 3% feel they are not polite at all.
From the above analysis we can conclude that the employees of the company are polite but with
training it can improve to a better degree. There is still lot of scope for improvement.

- Helpful?
o Yes
o Somewhat
o No
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OBSERVATION:
EMPLOYE

No.

Of

HELPFUL

PEOP

NESS
YES
SOMEWH

LE
35

AT
NO

58
7

No. Of PEOPLE
7%
35%

YES
SOMEWHAT
NO

58%

DESCRIPTION:

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Out of the total respondents 35% feel that the employees are helpful, 58% feel they are
somewhat helpful while only 7% feel they are not at all helpful.
From the above analysis we can interpret that the consumers are satisfied with the employees
helpfulness although the level of satisfaction is not that high it can be changed through training
of employees.

8. How is the quality of the product?

o GOOD
o AVERAGE
o BAD

OBSERVATION:
QUALITY
GOOD
AVERAGE
BAD

NO. OF PEOPLE
27
70
3

80
70
60
50
Axis Title 40
30

No. Of PEOPLE

20
10
0

GOOD

AVERAGE

BAD

Axis Title

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DESCRIPTION:
Out of the total respondents 70% feel that the quality of the product is average, 27% feel that it is
good while only 3% feel that it is bad.
From the above analysis we can interpret that majority of the consumers feel that the quality of
the product is average hence there is a lot of scope of improvement in the quality department.
However, 27% of the respondents feel the quality is good and are satisfied with the product and
very few feel its bad. Hence, the company should either maintain the quality of the product to its
current standards or try to improve it to increase consumer satisfaction.

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9.

How is the design of the product?

o GOOD
o AVERAGE
o BAD

OBSERVATION:

PRODUCT DESIGN
GOOD
AVERAGE
BAD

No. Of PEOPLE
5
86
9

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No. Of PEOPLE

9%

5%
GOOD
AVERAGE
BAD

86%

DESCRIPTION:
Out of the total respondents 86% feel that the design of the product is average, 5% feel its good
while 9% feel that it is bad.
From the above analysis we can clearly interpret that although the consumers are satisfied with
the design of the product not a lot of the respondents feel that it is good. However, only a few
feel its bad. The company needs to improve the designs of the products in order to increase the
consumer

satisfaction

level

and

sales.

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10. Do you get information regarding the schemes provided here and about fresh stock
updates?
o Yes
o No
OBSERVATION:
INFORMATION PROVIDED

NO. OF PEOPLE

YES

67

NO

33

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NO. OF PEOPLE

yes 33%

no

67%

DESCRIPTION:
Out of the total respondents 67% get information regarding the stock updates while 33% dont
get stock updates.
From the above description we can interpret that 67% get information regarding stock updates
but only those 67% have made previous purchases from the shop. Hence we can conclude that
100% of the previous consumers get stock updates.
11. Which medium do you prefer for updates?
o E-mail
o SMS
OBSERVATION:
PREFERRED MEDIUM

NO. OF PEOPLE

E-MAIL

SMS

93

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No. Of PEOPLE
100
90
80
70
60
50
40
30
20
10
0

e-mail

sms

DESCRIPTION:
Out of the total respondents 93% prefer sms while only 7% prefer e-mail for provision of
information.
Hence, we can clearly see that majority of the consumers prefer sms as the source of information
and find it as a more convenient source. It can also be due to the fact that majority of the
consumers of the company are middle aged thus finding sms as a more better medium of
communication compared to e-mails.
12. Would you like to revisit?

o Yes
o No
Suggestions if any : _____________________________________________

OBSERVATION
PREFERENCE FOR REVISIT

NO. OF PEOPLE

YES

96

NO

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No. Of PEOPLE
4%
yes

no

96%

DESCRIPTION:
Out of the total respondents 96% would like to re-visit and only a mere 4% would refrain from
visiting again.
From the above observation it is clear that the consumers are satisfied with their experience of
the company and would like to visit the company again for purchasing the dresses.

4.2 INFERENTIAL ANALYSIS(Cross tabulation analysis):

AGE * PRICE Cross tabulation
PRICE

AGE
20-30

30-40

Total

<5000

5000-15000

15000-25000

Count

% within AGE

0.0%

37.5%

62.5%

100.0%

% within PRICE

0.0%

4.9%

45.5%

8.0%

Count

14

% within AGE

0.0%

57.1%

42.9%

100.0%

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40-50

>50

Total

% within PRICE

0.0%

13.1%

54.5%

14.0%

Count

28

45

73

% within AGE

38.4%

61.6%

0.0%

100.0%

% within PRICE

100.0%

73.8%

0.0%

73.0%

Count

% within AGE

0.0%

100.0%

0.0%

100.0%

% within PRICE

0.0%

8.2%

0.0%

5.0%

Count

28

61

11

100

% within AGE

28.0%

61.0%

11.0%

100.0%

% within PRICE

100.0%

100.0%

100.0%

100.0%

From the above analysis we can clearly see that the respondents belonging to age group 40-50 are more
price conscious approx. 62% purchase goods ranging between Rs5000-15000. However respondents
belonging to age group 20-30 are not that price conscious as 63% purchase products ranging between
Rs15001-25000 and 37% in 5000-15000. However no respondent purchased products which cost more
than Rs25000. Thus, the company should indulge in providing more variety in the price range above
25000 to lure the consumers into purchasing heavy range products.

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AGE * FREQUENCY OF PURCHASE

Crosstab
FREQUENCY OF PURCHASE

AGE
20-30

QUARTERLY

HALF YEARLY YEARLY

Count

% within AGE

0.0%

100.0%

0.0%

100.0%

0.0%

10.1%

0.0%

8.0%

Count

14

% within AGE

50.0%

14.3%

35.7%

100.0%

43.8%

2.5%

100.0%

14.0%

Count

64

73

% within AGE

12.3%

87.7%

0.0%

100.0%

% within FREQUENCY
OF PURCHASE

30-40

% within FREQUENCY
OF PURCHASE
40-50

Total

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% within FREQUENCY

56.2%

81.0%

0.0%

73.0%

Count

% within AGE

0.0%

100.0%

0.0%

100.0%

0.0%

6.3%

0.0%

5.0%

Count

16

79

100

% within AGE

16.0%

79.0%

5.0%

100.0%

100.0%

100.0%

100.0%

100.0%

OF PURCHASE

>50

% within FREQUENCY
OF PURCHASE

Total

% within FREQUENCY
OF PURCHASE

From the above analysis we can clearly see that respondents from all age groups purchase products half
yearly i.e 79% of the total respondents. However in the age group 30-40 it is seen that 50% of people in
that age group prefer purchasing apparels quarterly and 38% approx. prefer yearly. Hence the company
should at-least bring about a change in the collection every 6 months in order to provide the customers
variety and retain them for a long period of time.

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AGE * LOCATION
Crosstab
LOCATION

20-30

30-40

Total

YES

NO

Count

% within AGE

37.5%

62.5%

100.0%

% within LOCATION

3.2%

100.0%

8.0%

Count

14

14

% within AGE

100.0%

0.0%

100.0%

% within LOCATION

14.7%

0.0%

14.0%

Count

73

73

% within AGE

100.0%

0.0%

100.0%

% within LOCATION

76.8%

0.0%

73.0%

Count

% within AGE

100.0%

0.0%

100.0%

% within LOCATION

5.3%

0.0%

5.0%

Count

95

100

AGE
40-50

>50

Total

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% within AGE

95.0%

5.0%

100.0%

% within LOCATION

100.0%

100.0%

100.0%

From the above it is visible that 95% of the respondents feel that the location of the shop is
convenient and only 5% feel its in-convenient and those 5% belong to the age category 20-30.
The reason may vary but it can also be due to increase in e-retailing amongst young generation
hence they find even a slight distance inconvenient in comparison to products which are
delivered at their doorsteps.

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AGE * PRODUCT DESIGNS

Crosstab
PRODUCT DESIGNS

20-30

30-40

Total

GOOD

AVERAGE

BAD

Count

% within AGE

0.0%

100.0%

0.0%

100.0%

% within PRODUCT DESIGNS 0.0%

9.3%

0.0%

8.0%

Count

14

% within AGE

35.7%

64.3%

0.0%

100.0%

% within PRODUCT DESIGNS 100.0%

10.5%

0.0%

14.0%

Count

64

73

% within AGE

0.0%

87.7%

12.3%

100.0%

% within PRODUCT DESIGNS 0.0%

74.4%

100.0%

73.0%

Count

% within AGE

0.0%

100.0%

0.0%

100.0%

% within PRODUCT DESIGNS 0.0%

5.8%

0.0%

5.0%

Count

86

100

% within AGE

5.0%

86.0%

9.0%

100.0%

100.0%

100.0%

100.0%

AGE
40-50

>50

Total

% within PRODUCT DESIGNS 100.0%

From the above analysis we can see that 100% of respondents of age group 20-30 feel that the product
designs are average. 36% of respondents from age group 30-40 feel its good and 64% feel its average.
88% of respondents from the age group 40-50 feel its average however 12% feel its bad. Hence, on an
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average 86% feel that the product designs are average. So the company needs to improve its product
designs in order to increase the level of consumer satisfaction.

AGE * PREFERRED MEDIUM FOR UPDATES

Crosstab
PREFERRED

MEDIUM

FOR Total

UPDATES
EMAIL

SMS

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20-30

Count

% within AGE

0.0%

100.0%

100.0%

0.0%

8.6%

8.0%

Count

14

% within AGE

50.0%

50.0%

100.0%

100.0%

7.5%

14.0%

Count

73

73

% within AGE

0.0%

100.0%

100.0%

0.0%

78.5%

73.0%

Count

% within AGE

0.0%

100.0%

100.0%

0.0%

5.4%

5.0%

Count

93

100

% within AGE

7.0%

93.0%

100.0%

100.0%

100.0%

100.0%

within

PREFERRED

MEDIUM FOR UPDATES

30-40

within

PREFERRED

MEDIUM FOR UPDATES

AGE

40-50

within

PREFERRED

MEDIUM FOR UPDATES

>50

within

PREFERRED

MEDIUM FOR UPDATES

Total

within

PREFERRED

MEDIUM FOR UPDATES

From the above analysis we can clearly see that 100% respondents in all age groups apart from
30-40 feel that sms is a more convenient medium of communication.

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AGE * PREFERRENCE FOR REVISIT

Crosstab
PREFERRENCE

FOR Total

REVISIT

AGE
20-30

YES

NO

Count

% within AGE

50.0%

50.0%

100.0%

4.2%

100.0%

8.0%

14

14

within

REVISIT
30-40

Count

PREFERRENCE

FOR

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% within AGE

100.0%

0.0%

100.0%

14.6%

0.0%

14.0%

Count

73

73

% within AGE

100.0%

0.0%

100.0%

76.0%

0.0%

73.0%

Count

% within AGE

100.0%

0.0%

100.0%

5.2%

0.0%

5.0%

Count

96

100

% within AGE

96.0%

4.0%

100.0%

100.0%

100.0%

100.0%

within

PREFERRENCE

FOR

REVISIT

40-50

within

PREFERRENCE

FOR

REVISIT

>50

within

PREFERRENCE

FOR

REVISIT

Total

within

REVISIT

PREFERRENCE

FOR

From the above analysis we can clearly see that 100% of the respondents in all age groups
would prefer to revisit except respondents in age group 20-30 in which 50% would not prefer to
revisit the shop.

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FREQUENCY OF PURCHASE * QUALITY OF PRODUCT

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Crosstab
QUALITY OF PRODUCT

Count
% within FREQUENCY
QUARTERLY

OF PURCHASE
% within QUALITY OF
PRODUCT
Count

FREQUENCY
OF
PURCHASE

HALF
YEARLY

% within FREQUENCY
OF PURCHASE

BAD

16

16

0.0%

100.0%

0.0%

100.0%

0.0%

22.9%

0.0%

16.0%

27

49

79

3.8%

100.0%

34.2% 62.0%

70.0%

100.0

Count

0.0%

100.0%

0.0%

100.0%

0.0%

7.1%

0.0%

5.0%

27

70

100

3.0%

100.0%

OF PURCHASE
% within QUALITY OF
PRODUCT
Count
% within FREQUENCY
OF PURCHASE

27.0% 70.0%

% within QUALITY OF 100.0

PRODUCT

100.0%

79.0%

PRODUCT

% within FREQUENCY

Total

GOOD AVERAGE

% within QUALITY OF 100.0

YEARLY

Total

100.0
%

100.0%

From the above analysis 100% of the respondents who purchase yearly or quarterly feel that the quality of
the product is average. However out of the repondents who purchase half-yearly 34% feel that the product
quality is good , 62% feel its average and only 4% feel its not good.

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FREQUENCY OF PURCHASE * PRODUCT DESIGNS

Crosstab
PRODUCT DESIGNS

FREQUENCY
PURCHASE

OF QUARTERLY

Count
%

Total

GOOD

AVERAGE

BAD

16

43.8%

56.2%

100.0%

within 0.0%

FREQUENCY
OF PURCHASE

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%

within

PRODUCT

0.0%

8.1%

100.0%

16.0%

79

79

0.0%

100.0%

0.0%

100.0%

0.0%

91.9%

0.0%

79.0%

100.0%

0.0%

0.0%

100.0%

100.0%

0.0%

0.0%

5.0%

86

100

5.0%

86.0%

9.0%

100.0%

100.0%

100.0%

100.0%

100.0%

DESIGNS
Count
%

within

FREQUENCY
HALF YEARLY OF PURCHASE
%

within

PRODUCT
DESIGNS
Count
%

within

FREQUENCY
YEARLY

OF PURCHASE
%

within

PRODUCT
DESIGNS
Count
%

within

FREQUENCY
Total

OF PURCHASE
%
PRODUCT

within

DESIGNS

From the above an alysis we can state that 57% of the respondents who like to purchase the products
quarterly i.e more frequent buyers feel that the product designs are bad. However there is a drastic
difference in opinion of those who buy yearly as 100% of such respondents feel the product designs are
good. While the rest feel its average. Hence from this we can conclude the company needs to work on the
designs of its product.

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PREFERRENCE FOR REVISIT * EMPLOYEE AVAILABILITY

Crosstab
EMPLOYEE AVAILABILITY

Count
% within PREFERRENCE FOR
YES

REVISIT
%

PREFERRE
NCE

within

YES

SOMEWHAT NO

76

11

96

9.4%

79.2%

11.5%

100.0%

100.0%

73.3%

96.0%
4

EMPLOYEE 100.0

AVAILABILITY

Count

0.0%

0.0%

100.0% 100.0%

0.0%

0.0%

26.7%

4.0%

76

15

100

FOR

REVISIT

% within PREFERRENCE FOR

NO

REVISIT
%

within

AVAILABILITY
Total

Total

Count

EMPLOYEE

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% within PREFERRENCE FOR
REVISIT
%

within

9.0%

EMPLOYEE 100.0

AVAILABILITY

76.0%

15.0%

100.0%

100.0%

100.0% 100.0%

From the above analysis we can clearly see that on an average 15% of the total respondents feel that
employees were not available. 100% of the respondents who do not want to revisit and 12% who want to
revisit feel that employees are unavailable and 80% of those who want to re-visit feel they are only
somewhat available. Hence employee unavailability could be a reason due to which the respondents
would not like to re-visit the shop.
PREFERRENCE FOR REVISIT * EMPLOYEE COURTSEY
Crosstab
EMPLOYEE COURTSEY

PREFERRENCE FOR REVISIT

Count
%

YES

SOMEWHAT

NO

91

95

FOR

1.1%

95.8%

3.2%

100.0%

REVISIT
%

within

EMPLOYEE
COURTSEY
NO

YES

within

PREFERRENC
E

Total

Count
%

100.0
%
0

within 0.0%

95.8%

100.0
%

96.0%

100.0%

0.0%

100.0%

PREFERRENC
E

FOR

REVISIT

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%

within

EMPLOYEE

0.0%

4.2%

0.0%

4.0%

95

99

1.0%

96.0%

3.0%

100.0%

COURTSEY
Count
%

within

PREFERRENC
Total

FOR

REVISIT
%

within

EMPLOYEE
COURTSEY

100.0
%

100.0%

100.0
%

100.0%

From the above analysis we can see that 96% of the respondents who will revisit feel that the employees
are somewhat courteous however 100% of those who are not going to re-visit also feel that the employees
are somewhat courteous. But it is clear that the employees need to be trained to be more polite as less than
5% respondents feel that they are definitely courteous which impacts the level of satisfaction of the
consumers adversely.

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4.3. INFERENTIAL ANALYSIS OF SAMPLES(CHI SQUERE)

Chi square test :AGE AND CONVENIENCE OF LOCATION
H0: there is no association between age of respondent and the convenience
of location.
H1: there is association between age of respondent and the convenience of
location.

Chi-Square Tests
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

53.152a

.000

Likelihood Ratio

53.240

.000

Linear-by-Linear Association

25.123

.000

N of Valid Cases

100

a. 8 cells (66.7%) have expected count less than 5. The minimum expected
count is .55.
H0 is rejected an d H1 is accepted since the value of chi-square is below 0.05

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Chi-Square Tests: AGE AND FREQUENCY OF PURCASE

H0: there is no association between age and frequency of purchase
H1: there is an association between age and frequency of purchase
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

52.366a

.000

Likelihood Ratio

43.540

.000

Linear-by-Linear Association

.063

.802

N of Valid Cases

100

a. 8 cells (66.7%) have expected count less than 5. The minimum expected
count is .25.
H0 is rejected and H1 accepted as the value of chi-square is below 0.05

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Chi-Square Tests: AGE & LOCATION

H0: there is no association between age and frequency of purchase
H1: there is an association between age and frequency of purchase
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

60.526a

.000

Likelihood Ratio

29.118

.000

Linear-by-Linear Association

35.659

.000

N of Valid Cases

100

a. 5 cells (62.5%) have expected count less than 5. The minimum expected
count is .25.
H0 is rejected an d H1 is accepted since the value of chi-square is below 0.05

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Chi-Square Tests age product designs

H0: there is no association between age and frequency of purchase
H1: there is an association between age and frequency of purchase
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

35.131a

.000

Likelihood Ratio

26.473

.000

Linear-by-Linear Association

5.755

.016

N of Valid Cases

100

a. 8 cells (66.7%) have expected count less than 5. The minimum expected
count is .25.
H0 is rejected an d H1 is accepted since the value of chi-square is below 0.05

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Chi-Square Tests AGE * PREFERRED MEDIUM FOR UPDATES

H0: there is no association between age and frequency of purchase
H1: there is an association between age and frequency of purchase
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

46.237a

.000

Likelihood Ratio

31.320

.000

Linear-by-Linear Association

9.367

.002

N of Valid Cases

100

a. 4 cells (50.0%) have expected count less than 5. The minimum expected
count is .35.

H0 is rejected an d H1 is accepted since the value of chi-square is below 0.05

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Chi-Square Tests : AGE * PREFERRENCE FOR REVISIT

H0: there is no association between age and frequency of purchase
H1: there is an association between age and frequency of purchase
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

47.917a

.000

Likelihood Ratio

22.498

.000

Linear-by-Linear Association 28.230

1
.000
Chi-Square Tests PREFERRENCE FOR REVISIT * EMPLOYEE
N of Valid Cases
100
COURTSEY
a. 5 cells (62.5%) have expected count less than 5. The minimum expected
H0: there is no association between frequency of purchase and
count is .20.
H1: there is an association between frequency of purchase and
Value

Df

H0 is rejected an

Asymp. Sig. (2-

d H1 is accepted

sided)

since the value

Pearson Chi-Square

.176a

.916

Likelihood Ratio

.337

.845

Linear-by-Linear Association

.042

.837

N of Valid Cases

99

of chi-square is
below 0.05

a. 5 cells (83.3%) have expected count less than 5. The minimum expected

count is .04.
H0 is accepted since the value of chi-square is above 0.05

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CHAPTER 5: FINDINGS
The following are the findings of the study:
There is a distinct relation between the demographics and other factors like price, location,
preferential medium for updates, etc
The respondents above age 40yrs are seen more price conscious and products which ranges
above Rs. 25000 are not purchased by any age group.
The respondents above the age group 40 prefer sms as a more convenient tool for updates in
comparision with emails.
Friends and relatives play a major role in influencing the visit of the shop for purchasing
products. Hence word of mouth is an important factor here. Maintaining good and healthy
relations with the customers is more of a necessity as potential buyers are influenced by the
customers of the company.
The respondents are unsatisfied with availability of the employees. Hence the company is in dire
need of increasing the number of employees.
The quality of the product is average but is not directly related with the consumers visit to the
shop however the designs of the product affect the decision of re-visit.
The respondents are provided timely updates regarding the new stock and schemes given by the
company.
The respondents who have purchased from the shop previously are retained for a long period of
time.
The location of the shop is also found to be convenient by almost 95% of the respondents

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CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS
The main objective of the project was to analyse the satisfaction level of the consumers and what
are the factors which affect the satisfaction of consumers.
The consumers are dis-satisfied mainly with designs of the product. Hence, it is recommended
that the company hires a designing team which is competent and provides new and innovative
designs to the consumers.
It is also seen that the consumers are dis-satisfied with the employee availability hence they need
to increase the workforce of the shop to increase the level of satisfaction.
The company overall needs to work on its employee behavior and attitude towards the
consumers since most of the employees are uneducated or belong from the labor class they need
to be taught certain etiquettes and training must be provided for their development.
However the consumers are seen to be satisfied with the company in general and 96% of the
respondents are in favor of re-visiting the company which says a lot about a company which is
only 3years old. The company is still growing and has a lot of scope to capture a wider market
arena.

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ANNEXURE
Customer Satisfaction On Occeanus Pvt. Ltd :

1. Name : _________________________________
2. Age group
o
o
o
o

20 30 years
30 40 years
40 50 years
50 years or above

3. Is the location of the shop convenient for you?

o Yes
o No
4. Preferable price range :
o
o
o
o

Below Rs. 5000

Rs. 5000 - 15000
Rs. 15000 - 25000
Rs. 25000 and above

5. How frequently do you purchase dress?

o Quarterly
o Half - yearly
o Yearly

6. Who recommended you this shop?

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o
o
o
o

Friends
Relatives
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Other if any, _____________________

7. Have you made any previous purchases from this shop?

o Yes
o No

8. Were our store employee

- Available when you needed them?
o Yes
o Somewhat
o No
- Polite?
o Yes
o Somewhat
o No
- Helpful?
o Yes
o Somewhat
o No

9. On a scale of 1 to 5, 5 being the best, what will you rate the quality of the product?
o GOOD
o AVERAGE
o BAD

10. On a scale of 1 to 5, 5 being the best, what will you rate the design of the product?
o GOOD
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o AVERAGE
o BAD

11. Do you get information regarding the schemes provided here and about fresh stock
updates?
o Yes
o No

12. Which medium do you prefer for updates?

o E-mail
o SMS

13. Would you like to revisit?

o Yes
o No
Suggestions if any : _____________________________________________

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BIBLOGRAPHY

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