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FEASIBILITY OF ETHNIC WOMENS WEAR STORE IN PATNA

PRESENTED BY: ANSHUL GAUTAM ARCHI AGARWAL SANTOSH KUMAR

Table of content
1 . OBJECTIVE OF THE PROJECT 2 . INDIAN ECONOMY 3 . INDIAN RETAIL SCENARIO 4 . INDIAN CONSUMER 5 . INDIAN APPAREL INDUSTRY 6 . BIHAR ECONOMY 7 . ABOUT PATNA 8 . PLAN OF ACTION 9. 10.

1.OBJECTIVE OF THE PROJECT


n To

study the consumer preferences in the women s ethnic wear category analyse the consumer s willingness to buy women s ethnic wear apparel and accessories in Patna . analyse the price ranges , the consumer is looking for in the aforementioned categories .

n n To

n To

2 . Indian Economy : Overview


n 2nd

largest economy in world in terms of population n 16% of population and 12% of land n 4th largest economy in terms of GDP n Highly diversified from Agriculture to Technology

Indian Economy : Overview


n Gradual

move from Public sector domination in industries to increasingly liberalised (tariffs to quota-free ) n Restricted to liberalised n Sellers market to Buyers market n Large pool of human resources, natural resources n 3rd largest pool of engg. and quality educational institution.

Indian Economy : Issues


n Inadequate

employment opportunities n Inequalities in socio-economic status n Poverty n Poor Infrastructure n Fiscal deficit n Large Non Performing Assets (NPA)

Characteristics of Indian Economy


n Predominance

of Agriculture n Rapid population growth n Low per capita income n Unemployment n Capital scarce economy

Economic Reforms in India


n Liberalisation

of trade and elimination of protective barriers : delicensing and deregulation of trade and commerce n Liberalisation of banking system n Disinvestments of public commercial, financial and industrial enterprises n MRTP & FERA

Reforms for Growth


n Exchange

Market reforms n Reforms in the Foreign Investment - FDIs and FIIs

n Reforms

in the Infrastructure sector

- TRAI n Tariffs and Trade reforms

SWOT : Indian Economy


n Strengths

Pool of labour High % of cultivable land Diversified nature of economy Huge english speaking population Extensive higher education system High growth rate of economy

SWOT
n Weakness

High % of work force in agriculture th of population below poverty line Poor infrastructure Low productivity Huge population, hence scarcity of resources

SWOT
n Weakness

Low level of mechanization Bureaucracy Low literacy rates Rural urban divide

SWOT
n Opportunities

Scope of entry of private firms Investment in R & D Huge domestic market Infrastructure NRIs

SWOT
n Threats

Fiscal deficits Volatility in crude oil prices Import Bills Agriculture heavily dependent on monsoons Population growth rate

INDIAN ECONOMY

The Indian economy is one of the fastest growing economies and is the 12 th largest in terms of the market exchange rate at $1 , 430 . 02 billion ( 2010 India GDP ). In terms of purchasing power parity , the Indian economy ranks the 4 th largest in the world . However , poverty still remains a major concern besides disparity in income . The growth rate has averaged around 7 % since 1997 and India was able to keep its economy growing at a healthy rate even during the 2007 - 2009 recession , managing a 9 . 668 % growth rate in 2010 ( India GDP Growth ). The biggest boon to the economy has come in the shape of outsourcing . Its English speaking population has been instrumental in making India a

n n

Indian Economy : Statistics


n

In 2010 , India's PPP Gross Domestic Product stood at over $4 trillion , and was the fourth largest economy by volume . The services sector , backed by the IT revolution , remained the biggest contributor to the national GDP , with a contribution of 58 . 4 %. The industry sector contributed 24 . 1 % and the agriculture sector contributed 17 . 5 % to the GDP . The employment scenario was dominated by the services sector , creating 62 . 6 % of the jobs for the 467 million workforce . The industry sector contributed 25 . 8 % to the GDP and employed 20 % of the workforce . The agriculture sector contributed 15 . 8 % to the GDP and created 17 . 5 % jobs ( India Labor Force ).

3. Indian Retail Scenario

The retail scenario is one of the fastest growing industries in India over the last couple of years . Indian retail sector comprises of organized retail and unorganized retail sector . Traditionally the retail market in India was largely unorganized ; however with changing consumer preferences , organized retail is gradually becoming popular . Unorganized retailing consists of small and medium grocery store , medicine stores , subzi mandi , kirana stores , paan shops etc . More than 90 % of retailing in India fall into the unorganized sector , the organized sector is largely concentrated in big cities . Organized retail in India is expected to grow 25 - 30 % yearly and is expected to increase from Rs35 , 000 crore in 2004 - 05 to Rs109 , 000 crore ( $24

Quick facts on Indian Retail sector


n

Indian Retail sector is the 5 largest global retail destination . India retail market is dominated by the unorganized sector . The top five companies in retail hold a combined market share of less than 2 %. The Indian retail market has been ranked by AT Kearney's 8 th annual Global Retail Development Index ( GRDI ), in 2009 as the most attractive emerging market for investment in the retail sector . Currently the share of retail trade in India's GDP is around 12 %, and was estimated to reach 22 % by 2010 . According to Government of India estimate , the retail sector is likely to grow to a value of ` 2 , 00 , 000 crore ( US$45 billion ) and could yield 10 to 15 million retail jobs in the coming five years ; currently this industry employs 8 % of the working population . India continues to be among the most attractive countries for global retailers . According to the Department of Industrial Policy and Promotion ,

Future Trends
n n

Lifestyle International, a division of Landmark Group, plans to have more than 50 stores across India by 201213. Shoppers Stop has plans to invest Rs 250 crore to open 15 new supermarkets in the coming three years. Pantaloon Retail India (PRIL) plans to invest US$ 77.88 million this fiscal to add up to existing 2.4 million sq ft retail space. PRIL intends to set up 155 Big Bazaar stores by 2014, raising its total network to 275 stores. Timex India will open another 52 stores by March 2011 at an investment of US$ 1.3 million taking its total store count to 120. In the first six months of the current fiscal ending September 30, 2009, the company has recorded a net profit of US$ 1.2 million. Australia's Retail Food Group is planning to enter the Indian market in 2010. It has plans to clock US$ 87 million revenue in five years. In 20 years they expect the India operations to be larger than the Australia operations.

INDIAN RETAIL MARKET


ORGANISED RETAIL

UNORGANISED RETAIL

UNORGANISED

5 % ORGANI

ORGANISED RETAIL IN INDIA

omic Survey of India and Technopak analysis, Mar2008

ORGANISED RETAILING AS A % OF TOTAL RETAIL :

INCREASING @ 30 - 35 % A YEA

Studied by: McKinsey Global Institute

5th largest consumer economy 2025

INDIA

2009largest consumer economy 12th

Factors fueling the BOOM in Indian Retail


n Age

dynamics of the country n Increased number of working women n Declining interest rates n Increased media penetration n Growing disposable income n Urbanization n The brand conscious consumer

Major players of organized retail sector


n n n n n n n n n n

Pantaloon Retail : Future Group K Raheja Group Tata Group Landmark Group Reliance Group AV Birla Group

CUSTOMER IS THE KING !!

3. Indian Customer

Global corporations view India as one of the key markets from where future growth will emerge . The growth in India s consumer market will be primarily driven by a favorable population composition and rising disposable incomes . A recent study by the McKinsey Global Institute ( MGI ) suggests that if India continues to grow at the current pace , average household incomes will triple over the next two decades and it will become the world s 5th - largest consumer economy by 2025 , up from 12th now .

FROM PYRAMID TO DIAMOND

India s consumer market till now was broadly defined as a pyramid ; a very small affluent class with an appetite for luxury and high - end goods and services at the top , a middles - class at the center and a huge economically disadvantaged class at the bottom .

This pyramid structure of the

Ernst and Young have classified the Indian consumer into 3 categories on the basis of income bracket and carried out a study . The categories Seekers : are as follows : Rs 200 to 500 Thousand / annum i . e 16 , 600 41 , 600 per: Aspirers month . 90 to 200 thousand / annum i . e 7 , 500 16 , 600 per month .

Deprived : L ess than 90 thousand / ann i . e less than 7 , 500 per m

CLASS

2025 PROJECTION

PRESENT

0 million people roughly a % of .million people , 583 Rs 2 Lacks to 10 Lacks 5 year the population 41 % of the populati

94 % in 1985 26 % of the populat to reme rural poverty in 2005 61 %

2 % of the 0 . 2 % of the t class : population above Rs 10 Lacs apopulation year. 7 % of national20 % of national private c private consumption

Indian Population Distribution

Over 8 % of India's population is engaged in retailing . According to ASSOCHAM , the total retail market is expected to grow by 20 % annually and is one of the fastest growing sectors in India.

20%
ASSOCHAM- Associated Chambers of Commerce

4. INDIAN APPAREL MARKET


n MARKET n n Menswear n Womens

DEFINITION:

wear n Kids wear

Introduction
n n n

n n

Industry is worth over US$ 4395 billion . Global trade in this industry is now at US$ 350 billion. Among the countries, Japan, Australia and New Zealand are the significant consumers of Indian textiles. India ranks second with 8 percent of the total. High production of wool, cotton and silk over the world has boosted the industry in recent years.

History
n

The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave' The history of textile is almost as old as that of human civilization. In India the culture of silk was introduced in 400AD . modern textile industry took birth in India in the early nineteenth century The first cotton textile mill of Bombay was established in 1854 during the year 1900 the cotton textile industry was in bad state After independence, the cotton textile industry made rapid strides under the Plans

n n n n n n

SWOT: Indian Apparel Industry


n Strengths:
n n

n n n n

Indian Textile Industry is an Independent & Self-Reliant industry. Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation. Availability of Low Cost and Skilled Manpower provides competitive advantage to industry. Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry. India has great advantage in Spinning Sector and has a presence in all process of operation and value chain.

SWOT Analysis
n Weaknesses:
n n n n n n n n n n n

Indian Textile Industry is highly Fragmented Industry. Industry is highly dependent on Cotton. Lower Productivity in various segments. There is Declining in Mill Segment. Lack of Technological Development that affect the productivity and other activities in whole value chain. Infrastructural Bottlenecks and Efficiency such as, Transaction Time at Ports and transportation Time. Unfavorable labor Laws. Lack of Trade Membership, which restrict to tap other potential market. Lacking to generate Economies of Scale. Higher Indirect Taxes, Power and Interest Rates.

SWOT Analysis
n Opportunities:
n n n n n n n

n n

Growth rate of Domestic Textile Industry is 6-8% per annum. Large, Potential Domestic and International Market. Product development and Diversification to cater global needs. Elimination of Quota Restriction leads to greater Market Development. Market is gradually shifting towards Branded Readymade Garment. Increased Disposable Income and Purchasing Power of Indian Customer opens New Market Development. Emerging Retail Industry and Malls provide huge opportunities for the Apparel, Handicraft and other segments of the industry. Greater Investment and FDI opportunities are available.

SWOT Analysis
n Threats:
n n n n n n n n n

Competition from other developing countries, especially China. Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. Elimination of Quota system will lead to fluctuations in Export Demand. Threat for Traditional Market for Powerloom and Handloom Products and forcing them for product diversification. Geographical Disadvantages. International labor and Environmental Laws. To balance the demand and supply. To make balance between price and quality.

The shape of the textile industry in India


n Large

Industry 3% of GDP, 27% of Forex earnings, 21% of total employment n Very large unorganised sector about 76% of total fabrics production n Market is very diverse, does not lend itself to comparative studies in terms of market share etc.

The global scenario


n n

The end of the MFA arrangement Competitiveness of Indian industry


Low level of modernization Fragmented nature low capacities Infrastructure, Labour laws

Exports have risen by 10% but at the same time Chinas exports have risen by more than 20%, even countries like Pakistan and Bangladesh have done better

INDIAN APPAREL RETAIL INDUSTRY VALUE FORCAST: $ BILLION: 20052010

YEAR GROWTH

$ BILLION 18.3 20.2 22.3 24.4 26.7

INR BILLION

2005 2006 2007 2008 2009 2010

806 12.10% 891.3 10.60% 982.5 10.20% 1078.4 9.80% 1179.3 9.40% 29.2 1288.9 9.30% 9.8%

CAGR 2005-2010:

APPAREL RETAIL FORMAT

INDIAN RETAIL PIE, 2006

Apparel : 7 %

Source: w ww.indianret ailforum .com

PENETRATION OF ORGaNISED RETAIL ACROSS CATEORIES:

The Indian consumer of today who wants the right price, ambience and good quality all under one roof. The lifestyle and mindsetchange of the Indian customer has led to a spur in the retail industry with the total private consumption in 2006 clocking Rs.20,000 billion according to the Indian Retail Report 2007. The Indian retail industry is valued at $270 billion, with organised retail cornering 4.5 %. The organized pie is expected to see a growth at a CAGR of 37 % (India Retail Report 2007).

Source: Indian retail report.

BIHAR ECONOMY

Geography
n Upper

Bihar is t he t an st at e wit hin t he red shape.

northeast corner of India, right before it gets squeezed between Bhutan and Bangladesh. n Many important rivers pass through Bihar. n In the southern foothills of the Himalaya Mountain Range,

Indo-Gangetic Plain
n

One of the most notable features of Bihar is its location in the Indo-Gangetic Plain. This plain is very fertile, making it ideal for an agrarian society.

Population and Land

According to census of 2011

n Bihar

has a population of 103,804,037 n It is a majority male population 54,185,347(52.2%). n The total area of land is 99,163 sq. km n This is divided into two main regions: the North Ganga Plain and the South Ganga Plain

Population and Other Statistics


n Per

capita income is Rs 21,696this is $538.50 n Density: 1102 people per sq. mile n Birth rate: 30.9 per 1000 n Death rate: 7.9 per 1000 n Population grew 25.07% from 20012011

Economy
Bihar lags behind in the overall progress of India. n Per capita GDP: Rs. 4000 per month in Bihar vs. national average of Rs.12000 per month. n Nearly 10% more people living below the poverty line than the average for India Reasons for slow development n Inadequate investment in infrastructure, irrigation, and technology n Caste dominated politics

Economy: Agriculture
2 crop seasons: Kharif & Rabi n Major crops:
n

Rice Sugar Tobacco Wheat Jute

Other minor crops:


Chilli Mango Oil Seeds

Economy: Agriculture

Economy: Mineral Production


n Very

little due to the division of southern Bihar into the separate state of Jharkhand n Most mineral production takes place in Jharkhand n Some Minerals Produced
Coal Bauxite Dolomite
n

Economy: Mineral Production

Education: History
n Historically

Bihar has been a major center of learning n Originated from the time of Buddha or even earlier n Home of one of the earliest universities, Nalanda, which dates back to the 5th century n Vikramshila, which is another university is located here as well

Education: History
n During

medieval period, education was lost n Believed that marauding armies of the invaders destroyed the centers of learning
n

Education
n

During 1970s and 1980s

government took control over private schools n Because government was illequipped the standards of the schools began to fall n However, government did not take over schools ran by Christian missionaries, and these schools still provided quality education

Education
n

Central government runs a number of Kendriya Vidyalayas (Central Schools) Jawahar Navodaya Schools were made by the late Prime Minister Rajiv Gandhi for rural children Have been successful in providing quality education to the weaker sections of the

Education
n

Modern Bihar has an inadequate educational infrastructure which places a huge impact between supply and demand The growing population has made the situation even worse, and has led to a flooding of the student population to other states in order to obtain a better education Only 51% of the children enrolled in primary school actually attend, 59% of those who do attend do not have

Education

According to Census of 2011


Has an overall literacy of 63.82% Male literacy rate of 73.39% Female literacy rate of 53.33% Only 21% of all primary school teachers have completed the matriculation Because of the law of affirmative action that reserves jobs and education for people of backward classes, students from Bihar are performing well in respect to better economically well off states in India

n n n n n

Culture of Bihar: Festivals


n

Chhath
Worship of the Sun God

Teej
Worship of Goddess Parvati

n n

Bihar: Music
n

Folksongs dealing with everyday life


sohar performed during childbirth sumangali associated with wedding ropnigeet performed during the

About PATNA

Potential of Patna
Patna is a potential city with growing market.

Patna highest per capita is Rs 31,441 .

Patna is the 21th fastest growing urban areas in the world and 5TH fastest growing city in India.

The city is also a major educational and medical centre.

The Economy of Patna is based on local service industry.

Economic situation
Patna has long been a major agricultural center of trade. Companies growing started upper to and recognize middle Patna's class's

purchasing power. City will have malls that are coming up in different parts of the capital. Large-format retailers such as Big Bazaar and the Future Group, planning to set up

PLAN OF ACTION

SOURCES OF INFORMATION :

a ) RETAILERS b ) WHOLESALERS c ) CONSUMERS

MODES OF INFORMATION COLLECTION

n INTERVIEWS n QUESTIONNAIRS

QUESTIONNAIRES: RETAILER
PARAMETERS : 1 . PURCHASING POWER OF CUSTOMERS 2 . CATCHMENT AREA 3 . TASTES AND PREFERRENCES 4 . SALES FIGURES / RENTALS / OVERHEADS 5 . MERCHANDISE MIX / SEASONALITY FACTORS / OCCASIONS & FESTIVALS 6 . SERVICES 7 . CUSTOMER RETURNS / COMMON COMPLAINTS

WHOLESALER:
PARAMETERS : 1 . AREAWISE MARKET POTENTIAL 2 . PURCHASING POWER OF CUSTOMERS 3 . CATCHMENT AREA 4 . TASTES AND PREFERRENCES 5 . SALES FIGURES / RENTALS / OVERHEADS 6 . MERCHANDISE MIX / SEASONALITY FACTORS / OCCASIONS & FESTIVALS 7 . CUSTOMER RETURNS / COMMON COMPLAINTS 8 . IMPORTANT STORES 9 . RATE THE DIFFERENT CPMBINATIONS

10. 11.

CONSUMER:

PRAMETERS :

1 . TASTE AND PREFERRENCES 2 . COMPLAINTS 3 . VARIETY / OPTIONS AVAILABLE 4 . EASE OF ACCESS 5.

MARKET SCAN: important markets of patna


1 . BORING ROAD 2 . FRASER ROAD 3 . EXHIBITION ROAD 4 . HATHWA MARKET 5 . PATNA MARKET 6 . KHAITAN MARKET 7.

7. 8 .

ASHOK RAJPATH RAZA BAZAAR

EVALUATION OF THE RETAILERS


PARAMETERS : 1 . STORE AREA 2 . CATEGORY OF MERCHANDISE 3 . TYPE OF MERCHANDISE 4 . PRICE RANGES 5 . CATCHMENT AREA 6 . SERVICES PROVIDED 7 . AMBIENCE 8 . ACCESSABILITY

THE NAMES OF OCCASIONS ARE :


1 . CHHAT 2 . HOLI 3 . DEEPAWALI 4 . DURGA PUJA 5 . DUSHARA 6 . EID 7 . MOHARAM 8 . GOODFRIDAY 9 . ID - UL - FITAR 1 0 . SARASWATI PUJA 1 1 . KRISHNA JANMASTHMI 1 2 . GANESH CHATURTHI , ETC .

Scan of major stores:


1. KARGHA Maurya Complex Shop No . 138 Block C

PRICE RANGE: WOMEN : LONG KURTA : SHORT KURTA : DUPATTA : PATIYALA SALWAR : CHURIDAAR : STORE AREA : 350 SQ . FT 649 - 699 399 - 525 350 - 450 AVERAGE FOOTFALL : 30 - 40 450 PROPRIETOR : MR . MANISH 350 KUMAR TIE UP WITH PANTALOONS

2. RADHA GARMENTS:
STORE AREA : 2200 Sq . FEET AVG . FOOTFALL : 30 - 35 PROPRIETOR : Mr . MURLIDHAR KANODIA NO . OF OUTLETS : 1 LOCATION : OPPOSITE MAURYA LOK

PRICE RANGE :
WOMEN KURTI : Rs . 300 - 4000 PARTY WEAR SUITS : Rs . 1000 - 8000 SARIS : Rs . 500 - 25000 ARTIFICIAL JEWELLERY : Rs . 300 - 6000 LEHENGA : Rs . 10000 - 20000

3. NINNIS
STORE AREA : 1200 Sq . FEET AVG . FOOTFALL : 30 - 35 PROPRIETOR : Ms . NINNI ARORA NO . OF OUTLETS : 1 LOCATION : MAURYA LOK , NEAR DAK BUNGLAW CHAWK

PRICE RANGE: LEHENGA: Rs.4000-80000 PARTY WEAR SUITS: Rs.1500-8000 SARIS: Rs.3000-10000 HANDBAGS: Rs.100-2000 FOOTWEAR: Rs.350-2000 ARTIFICIAL JEWELLERY: Rs.800-4000

4. FABINDIA
STORE AREA : 3500 Sq . FEET AVG . FOOTFALL : 28 - 35 NO . OF OUTLETS : 1 LOCATION : PATLIPUTRA STOCK REPLENISHMENT : 15 - 20 DAYS

PRICE RANGE : WOMEN S WEAR INDIAN ACCESSORIES : 160 - 2500 795 - 7000 Rs . 400 - 2500

SARI : COTTON & SILK :

5. SHOBHA AND SAHELI


n n

STORE AREA : 1200 Sq Ft . LOCATION : BORING CANAL ROAD

n
n n

PRDUCTS & PRICE RANGE : BRIDAL : SARIS : Rs 600 - 40 , 000 LEHENGA : Rs 9 , 000 - 60 , 000 n PARTY SARIS : Rs 3000 - 12000 SUITS : Rs 2 , 500 10 , 000 n REGULAR SARIS : Rs 300 - 3 , 000

6. MOTABHAI
LOCATION : HATWA MARKET STORE AREA :

PRICE RANGE : BRIDAL SARIS : 2000 - 40000 BRIDAL LEHENGA : 10 , 000 40 , 000 SUITS : 1000 - 10 , 000 ACCESSORIES : HANDBAGS : 100 - 3000

7. PRIYA CLUB STORE


n STORE n n PRODUCT

AREA : 220 sq . ft . n LOCATION : TAKUR BARO ROAD AND PRICE RANGE : n SUITS : Rs . 250 - 1200 n SARIS : Rs . 150 - 8000

ACCESSORIES

1. ROOP SHRINGAR
n STORE

AREA : 160 SQ FT . n LOCATION : THAKUR BARI ROAD


n PRODUCTS
n n n n

AND PRICE RANGES :

BANGLES : 100 - 700 BRACELETS : 50 - 200 SETS : 250 - 3000 NECK PIECES : 250 - 2000

2. SONALI SHRINGAR
n STORE AREA : 100 SQ FT . n LOCATION : THAKUR BARI

ROAD

n PRODUCTS
n n n n

BANGLES : 100 - 600 BRACELETS : 50 - 200 SETS : 250 - 2000 NECK PIECES : 250 - 1500

AND PRICE RANGES :

INFERRENCES FROM A STUDY DONE ON THE BOUTIQUES IN PATNA:

FACTORS AFFECTING PURCHASE

Consumers want design and variety in products

CONSUMERS PREFER

Consumer prefer more of fashionable products than traditional due to the change in their taste.

CONSUMER PURCHASING RATE

Consumer prefer shopping once a month from boutiques.

DO PEOPLE PURCHASE FROM BOUTIQUE?

Still almost half the population is not comfortable in such buys.

BOUTIQUES OF PATNA

Awareness of NINNI being the highest among consumers

SUGGESTIONS AND CONCLUSION


Existing players in this segment are doing good and are satisfied with their sales and customer response : qBecause of increase in per capita income as well as personal disposable income . q qChange in preference of the consumer . Now also preferring customized clothes apart from labels . q

Conclusion
There is a good scope for any new premium boutique to start in Patna . There is a huge scope for expansion in places like Frazer road , Boring road and Patliputra . qDeveloping and growing city in terms of income . qPeople are adopting the changes