MADE TO MEASURE GARMENTS- Project Report

MARKETING MANAGEMENT

Submitted By: Prachi Garg (12) Shinu Nair (48) PGDM-IB 2010-12

TABLE OF CONTENTS

1. INTRODUCTION 3 2. OBJECTIVE OF STUDY... 6 3. REVIEW OF LITERATURE .7 4. METHODOLOGY.12 5. DATA ANALYSIS.14 6. MARKETING PLAN17

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 2

INTRODUCTION
Technological advances during the past decade have opened many new doors for the Textile and Apparel industries, especially in the area of rapid prototyping and related activities. When evaluating consumers dissatisfactions with apparel that has been mass-produced and is readily available in the marketplace, there are several recurring themes. The first is an overwhelming criticism about how garments fit. While fit is a subjective variable, at best, it is nevertheless a problem that almost every consumer has had at some time. In the apparel industry, accurate measurements are very important as the first step to determine correct sizing and to create garments customized to a specific target market. Historically, tailors and fashion designers used measuring tapes to obtain the physical measurements of the bodies they created for. This method has been time consuming, invasive, and often inaccurate, based on who took the measurements and how they took them. Until just recently, only tailors and couture houses actually still used real body measurements to create or alter the clothing they produced. Unfortunately, the sizing systems that have developed through the years are neither standardized nor related to the average humans body measurements. While we know that garment sizing can be impacted by production inaccuracies, we must face the fact that many garments were sized or proportioned incorrectly for the target consumer, from conception. This specific problem has encouraged the development of 3-D body scanning technologies that will enable rapid and accurate extraction of individual consumers measurements. This ability will enable redevelopment of current sizing systems, as well as production of Made-To Measure Garments. In a Made-to-Measure garment, customers measurements are first taken by a made-to-measure retailer (BRAND store). It is sent to the manufacturer and the manufacturer makes that single garment. Then the garment is dispatched to the retailer (BRAND store) who delivers it to the customer within 1-1 weeks. It is similar to Tailor-made garments; the difference being that it is provided by a BRAND e.g. Raymonds. The primary benefits to the customer of made-to-measure clothing are that garments will be wellfitted to the customers body and the customer may have the opportunity to customize the fabric and design.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 3

To order a made-to-measure garment, the customers measurements are first taken by a made-to-measure retailer. Then a base pattern is selected that most closely corresponds with the customers measurements. This base pattern is altered to match the customers measurements. The garment is constructed from this custom pattern. The primary benefits to the customer of made-to-measure clothing are that the garments will be well-fitted to the customers body and the customer may have the opportunity to customize the fabric and detailing. The primary disadvantage of made-to-measure is that the customer must wait up to several weeks for the garment to be sewn and delivered. Made-to-measure retailers often travel internationally meeting clients in cities, providing samples of the latest materials and styles. One of the most active made-to-measure retailers in the U.S. is Noble House, based out of Hong Kong and has a group of salesmen who travel to a variety of major U.S. cities.

CUSTOMIZATION CASE STUDIES FROM APPAREL INDUSTRY

1. Bodymetrics
Bodymetrics is a UK based organization that deals in made-to-measure jeans. There is a 3D scanner which takes about 200 measurements in 5 seconds. The measurements are used to create a virtual replica of the body from which a digital pattern for the jeans is created. Clothes are made in the Far East or North America. Prices start around 250, or $482, per pair of jeans. They dont carry any stock, are never on sale, and receive cash upfront before manufacturing. They have very high sales per square foot about $2000.

2. DNA Style Lab

They sell customized T-shirts. In this model, the company commissions a number of artists from around the world. They contribute design elements which a customer can select. The more graphic elements a user selects, the more expensive the final product gets. In this model, the artists will get their full price, the user pay for the graphic elements they select (about $5); the company itself makes its profit from selling the core product which is about $10.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 4

3. Ziami
Ziami is a German company, who make custom made shirts for about 29 and custommade suits for about 99. They use multi-level marketing approach in their model, in which whosoever purchases a 50 starter package, becomes a custom shirt seller. The distributors purchase a custom shirt for 22 and sell it for 29. Manufacturing is done in China and Thailand. The major complaints are unstable quality, bad customer service and poor fabrics.

4. Zafu.com
It asks women shoppers 11 questions about how they prefer jeans to sit on their hips or waist to create a body profile. The results are used to match the user with as many jeans as could suit them from a database of hundreds of styles, from broadly marketed Gap to pricey Seven, then link them to a retailer to purchase. Zafu also allows women to save their profile making the process even easier next time they return. This helps them also to inform customers when a new jean is added to their assortment that exactly fits their body style. However, if a user does not want to leave any data, she does not have to do register etc. Zafu.com is profitable because first, Zafu does not carry any inventory, but directs customers directly to the web sites of affiliated retailers and gets the usual commissions between 5-20% of each sale. Second, they will provide in-house fit recommendation services to online and offline retailers, helping the customers of just one brand to navigate the assortment in a store or online shop better.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 5

STATEMENT OF THE STUDY:

The objective of the study is to carry out a Feasibility Study on Made to Measure Garments and devise a marketing plan for the same.

OBJECTIVE
The Feasibility study shall be extended to the three segments of the Supply Chain. y To determine whether the made to measure concept will be acceptable to the end consumers of the Indian mass y To assess whether the facilities required for made to measure garments can be provided by the Retail organizations y To determine whether the production of the made to measure garments will be feasible for the Garment Manufacturers

NEED OF THE STUDY

The study aims at checking the viability of use and manufacturing of the Made to measure garments for the Indian mass. This study will benefit the organizations who are interested to launch such garments. It will help the manufacturers to make a decision whether to proceed with the production of such garments. This study will give them an insight as to whether the production of single-piece of such garments, is feasible or not. It will also help the Retailers to decide whether or not to get into the field of providing such garments to the customers. This study will also increase the awareness among the end consumers and study the demand for such garments.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 6

REVIEW OF LITERATURE:

Perched at the edge of the 21st century, the textile and apparel pipeline is at a critical juncture. Even as the mass production paradigm continues to dominate, a new paradigm, mass customization, is emerging and will continue to grow in a parallel path. Critical information, manufacturing, delivery and service technologies now exist to allow consumers to create their own products and manufacturers to individualize products. A significant number of consumers report being dissatisfied with the fit of apparel. Mail order companies find that fit is one of the primary reasons for garment returns. Fit problems can be perpetuated by consumers perceptions of their bodies. Often consumers blame themselves for not fitting into garments.

Confronting and dealing with fit problems can be an arduous task for apparel manufacturers and retailers. Those delving into the issue can find themselves engrossed in such specific details as the accuracy of their armscye width grading, as well as broader concerns, such as how a person's stance, or posture, affects garment fit. In todays apparel market, consumers desire to personalize the style, fit and color of the clothes they buy. According to Kurt Salmon Associates 1997 Annual Consumer Outlook Survey, 36% of consumers are willing to pay up to 15% more for customized apparel and footwear, and will wait up to three weeks to receive their customized product. Most of todays consumers require high-quality customized products at low prices with faster delivery. With this sort of consumer interest in mind, the concept of Mass Customization emerged in the late 1980s.

As the market for mass customization begins to heat up, companies are joining forces to develop innovative technologies aimed at improving product development and production efficiencies. Mass customization is quickly evolving from an art into a science, and in the true spirit of research, companies within the apparel supply chain are now combining their elements in hopes of getting the chemistry just right. From consumer data capture to short cycle
KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB Page 7

manufacturing to drop-ship deliveries, the wheels of progress have been set in motion -and industry authorities are now predicting a surge in the market. To date, most of the technological progress in mass customization has been made in the pre-production arena. For example, there has been continued development of body scanning technology over the past few years and the parallel introduction of computeraided design (CAD) functionality, which is automating many aspects of product development and pre-production, from design conceptualization through marker making. Given the changing characteristics of todays consumer interests and industrial competition, mass production systems cannot satisfy both manufacturers and consumers; however, a mass customization system may achieve both manufacturer and consumer satisfaction, providing a low-cost customized product.

MAJOR PROBLEMS AND BOTTLENECKS

y The fitting problem is relevant both to mass-produced, as well as custom-made clothing and relates predominantly to the lack of up-to-date accurate body data (size and shape statistics). Moreover it is one of the major obstacles for the offering of a reliable Internet apparel shopping service. The fitting problem also relates to the long-established need for the customer to try-on the garment , before buying (the mirror problem). y The complexity of the selection process, related to aesthetic fit (e.g. matching fabric colors with skin tone, color of the eyes, etc), individual preferences on style modifications, accessories, etc. y The problem of streamlining systems and processes across the value-added chain to ensure: individualized order tracking, effective unit production, prompt deliveries and cost effectiveness. y The problem of handling personal data (esp. body measurements), ensuring data security, integrity and privacy, and above all ensuring the confidence and the acceptance of the consumers.
KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB Page 8

IMPLEMENTATION IN INDIA
BANGALORE: Formal wear is seen as something of a misfit in Indias tropical conditions. But driven by large sales during the marriage season and increased exposure to the latest fashion trends, apparel companies are beginning to custom-design formal wear to suit individual requirements. While Madura Garments has launched a made-to-measure initiative from its Louis Phillipe stable, its cross-town rival Arvind Brands had earlier kicked off a BeSpoke service offering for Arrow, its premium formal wear line. Our made-to-measure initiative looks at three parameters: stature, chest and waist size. For instance in chest size 40 we will have around 20 options, Mr. Rishi Vasudev, category head (suits) at Madura Garments, told ET. In total, this offering will have over 150 options for customers. The company claims that suits under this initiative involve 128 different operations, integrating 56 different components. Madura officials said that based on various requirements, an exact fit will be computer-generated within 21 days. The made-to-measure suits begin at over Rs 20,000 and go all the way to Rs 50,000-plus. While LP is an Rs 150-crore unit, suit sales account for around Rs 22 crore-Rs 23 crore. Incidentally, Madura Garments earlier sought to expand the market by introducing suits under its budget Peter England label. Peter England suits are today available for as little as Rs 2,000. Most suit sales in India happen during the wedding season. In addition, suits in India are not worn as often as in the West, where the climate allows daily wear. We are targeting this top-end buyer who wants to buy a great suit for that special occasion, said Mr. Hemchandra Javeri, president, Madura Garments. Festive wear, incidentally, can get as glitzy as you want with gold thread and diamonds inlaid into the suit or shirt fabric, according to industry executives. However, Madura seems to have been pre-empted in its foray into the cut-to-suit formal wear segment. Arvind Brands had launched BeSpoke services for its Arrow premium wear line in May 2007, incorporating over 17 options. Mr. Janak Dave, business head, Arvind Brands, said BeSpoke Services are available at 12 cities and 22 outlets, and customers can take home a custom-tailored shirt in five working days. KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB Page 9

We found that we were losing around 15-20% of our walk-ins because they could not give them a particular size or collar option, says Mr. Dave. To try and counteract these losses, Arrow today offers half-a- dozen collar options including traditional button-down as well as more fashionable Chinese collar (Hamilton) options. So, potential Arrow buyers today have an option of two types of full sleeves and the half-sleeves, as well as a range of cuffs and other styling elements. Arrow today does over 200 shirts a month under its BeSpoke services, for which it promises door delivery. The next frontier in the cut-to-fit range appears to be trousers, with both apparel vendors looking to launch a similar offering in this market. A key target market in this space are big and tall consumers who are often at a loss when it comes to well-fitted bottom wear.

REQUIREMENT OF MTM Driven by customer needs Uses latest technology Databases - customer and product Computer controlled design, production and packaging Supply chain management

Helps build a strong relationship with customer

Benefits Tools 3-D scanning tools Visualization tools Cloth draping algorithm Virtual reality tools Image databases Artificial intelligence interface Internet for integrated design, marketing and retailing Page 10 Cuts inventory Makes very small niche markets viable Retailers become regional distribution centers, cutting costs

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Steps Customers 3-D image scanned Customer interactively selects color, model, and print design Order transmitted through web to factory Garment stitched and delivered Bar-code used to store customer choices Customers 3-D image can be saved and used in future Customer can select fabric type, color, texture, pattern and print Customer can fit and visualize selected garment Customer can design garment or use available designs for the fit Customers feedback used in general garment design.

REFERENCES
1. Mass Customization And The Clothing Industry-By Claudio Vignali Demetris Vrontis, Peri D. Vront, Professors of Leeds Metropolitan University 2. Journal of Industrial Technology, Volume 16: Mass-customization Methodology for an Apparel Industry with a Future, By Ms. Seung-Eun Lee & Dr. Joseph C. Chen 3. National Textile Center Annual Report: Discovering the Process of Mass Customization: A Paradigm Shift for Competitive Manufacturing, By Lenda Jo Anderson, Evelyn Brannon, Pamela Ulrich, Thomas Marshall, Nancy Staples(Auburn) 4. Mass customization: By Priyank Goyal 5. Understanding Fitting Preferences of Female Consumers: Development of an Expert System to Enhance Accurate Sizing Selection: By Lenda Jo Connell, leader, Evelyn L. Brannon, Pamela V. Ulrich, Ann Beth Presley (Auburn), Maureen Grasso (UNC-G), Judson H. Early, Stephen Gray (Nottingham Trent) 6. fibre2fashion-february 2008

7. www.wikipedia.com
8. www.citebm.business.uiuc.edu/SearsSlides.ppt

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 11

METHODOLOGY
EXPLORATORY RESEARCH
Two types of Data Collection Techniques will be used for carrying out the research.

1. Primary Data Collection Primary data collection was done using various methods such as interviews and questionnaires. a) Customer Survey Questionnaires are to be filled in by a cross section of the target segment with the purpose of knowing whether the made to measure concept will be acceptable to the end consumers of the Indian mass. Target population: The study was done on the population of ghatkopar and surrounding areas. The sample and sample size was selected based on the following criteria: i. Gender-wise: The sample was divided firstly on the basis of Gender. This was done to get a fair result from both. Gender Male Female Sample size 125 125

ii. Age-wise: The sample was then sub-divided on the basis of Age group. This was done to avoid the study from being restricted to any particular age group.

Less than 18 yrs 18 24 yrs 25 30 yrs 31 50 yrs Above 50 years

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 12

2. Secondary Data Collection Secondary data is the data that has already been collected by someone else for a different purpose.

b) Desk research - The aim of this research is y To attain a greater understanding of the made to measure garments and mass customization y To find about the organizations that have implemented made to measure

The secondary sources of research include books published, Internet archives and published research articles on made to measure garments and mass customization.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 13

DATA ANALYSIS:
The customers study was done for Male and Female alike. Data was collected with the help of a Questionnaire. The data collected through questions has been analyzed with the help of piecharts and graphs. SPSS software version 14 was used for analysis and crosstab generation.

Frequency Table

Reasons For Tailored

Valid

Style Quality Finish Price Purchase Convenience Right Fit Total

Frequency 2 1 6 70 20 101 200

Percent 1.0 .5 3.0 35.0 10.0 50.5 100.0

Valid Percent 1.0 .5 3.0 35.0 10.0 50.5 100.0

Cumulative Percent 1.0 1.5 4.5 39.5 49.5 100.0

As can be seen from the pie chart and the table most customers prefer tailored

garments for right fit, price and purchase convenience. Fit is especially a big issue for Indian customers as our body sizes are diverse and standard S,M,L,XL and XXL sizes do not normally fit.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 14

Preferred Garment Type Readymade

Valid

Missing Total

Shirts Trousers Denim Jeans T-shirts Coat, Suit, Blazer Jackets Ladies Tops Total System

Frequency 33 20 66 34 31 15 199 1 200

Percent 16.5 10.0 33.0 17.0 15.5 7.5 99.5 .5 100.0

Valid Cumulative Percent Percent 16.6 16.6 10.1 26.6 33.2 59.8 17.1 76.9 15.6 7.5 100.0 92.5 100.0

As can be seen from the pie chart and the table most customers prefer denim jeans for

readymade garments.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 15

Age Group * Garment Willing To Try Cross tabulation

Shirts AgeGroup Less than 18 years 18-24 years 25-30 years 31-50 years above 50 years 8 8 12 7 5 40

Trousers 7 20 8 1 2 38

Garment Willing To Try Coat, Suit, Denim TBlazer Jeans shirts Jackets 2 5 3 2 0 12 3 10 22 6 5 46 3 9 19 2 3 36

Total Ladies Tops 0 0 1 1 1 3 Salwar Suits 0 18 5 1 0 24 23 70 70 20 16 199

Total

The above cross tabulation report shows us that more of the younger age group (24-30) is willing to try out the concept. Income Group * Garment Willing To Try Cross tabulation Tota l Ladies Tops 0 3 3 Salwar Suits 15 9 24 82 117 199

Shirts Income Group Less than 10,000 more than 10,000 7 33 40

Garment Willing To Try Coat, Suit, Trouser Denim TBlazer s Jeans shirts Jackets 22 16 38 5 7 12 15 31 46 18 18 36

Total

Cross tabulation between income group and willingness to try the garment type showed that in sub 10k group, more people were interested in trousers, t-shirts, coats and salwar suits. While in the above 10k category, majority were interested in trying out shirts and t-shirts.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 16

MARKETING PLAN: Summary:

Formal wear is seen as something of a misfit in Indias tropical conditions. But driven by large sales during the marriage season and increased exposure to the latest fashion trends, apparel companies are beginning to custom-design formal wear to suit individual requirements. Madura Garments has launched a made-to-measure initiative from its Louis Phillipe stable, its cross-town rival Arvind Brands had earlier kicked off a BeSpoke service offering for Arrow, its premium formal wear line. The made-to-measure suits begin at over Rs 20,000 and go all the way to Rs 50,000-plus. While LP is an Rs 150-crore unit, suit sales account for around Rs 22 crore-Rs 23 crore.

SWOT ANALYSIS: Strengths: y Customization y Branded garment material. y Customer awareness and interest about the product. y Quality design and manufacturing y Door step delivery. Weaknesses: y Long lead times from order to delivery. y High garment price. Opportunities: y Increasing awareness about made to measure garments. y Growing customer need for variety and range in designs.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 17

Threats: y Small stitch shops undercutting the market. y Foreign players like Bodymetrics vying for entry in the Indian market.

Objective: To introduce made to measure garments in the Mumbai and achieve sales of 375-400 units in the first quarter. Also to achieve a 5% growth thereafter in the subsequent years.

Marketing Strategies: Segmentation Targeting and Positioning: The product may be segmented on the basis of age group, gender and socio economic classification. The product would be brought to cater to the needs of young men and women (who are style conscious) as well as the elderly(who insist on quality). Branded garments for both men and women could be manufactured and sold. The product should be aggressively targeted at consumers who still resort to tailored garments. The retail store may be positioned as a One Stop Shop for Customized Garments Marketing Mix: Place: The product may be launched in metros, semi metros and class 1 towns. The company can focus on creating a unique retail shop ambience. It can sell the products at its own store or piggyback on existing multi brand outlets like Central. Price: Products can be manufactured in both mid-price for customers who are looking for value for money as well as premium for the upper middle class who dont mind paying extra but do not

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 18

want to compromise on the quality. The pricing may be kept around 15,000-45000 INR for formal suits, 600-3000 INR for t-shirts, 1000-3500 INR for shirts and trousers. Product: The company may look into lowering its operating costs and product manufacture costs and introduce variety at low turnaround times. Sourcing of quality garment material like peter England, Reid and Taylor etc. can be considered. Promotion: It could promote the products by collaborating with the existing multi brand outlets and introduce its new line of products at promotional discounts to generate customer awareness and subsequent interest. It can also allow minor alterations in a particular size range as part of after sales support. Further offers like bulk discounts and 4 for the price of 3 can be an option. Advertising on billboards on busy intersections can also be looked into. Review and Feedback: Customers may get irritated if they have to wait for long periods during the process of measurement and order processing especially if they have nothing to do. This extra time could be used to make the customers voluntarily fill up short feedback forms commenting on the overall experience. The form would be of a multiple choice format asking the customers to rate the various elements on a scale of 1 to 5. These responses will be collected and analyzed weekly. The most frequently appearing complaints will be given higher priority and addressed at the earliest. This would ensure ironing out the issues and ensuring they dont recur again.

KJ SOMAIYA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH/MM II/PGDM-IB

Page 19