AIC – PENTAGON

Killer® Under Garments

Killer® Under Garments

AIC - PENTAGON

Contents

Indian Apparel Industry 1

UG Study2

UG @ Modern Retail3

Killer® UG Strategy & Solutions4

Indian Apparel Market

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Organized Sector Contributes Rs. 50K Cr.

Branded sector to grow at 15% for

next 3 years.

Men’s Wear To Reach Rs.131000 Crore In 2017

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Men’s Wear By Category

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Men’s Wear By Category – 5 Years Growth Projections

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Under Garments Market : Men’s v/s Women’s

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Organized Market Will Contribute

40%

Purchase Pattern By Segments : Men’s v/s Women’s

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Avg. Indian male goes for 6 change of briefs

& Vests in a year.

Purchase Parameter: Men’s v/s Women’s

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Forecasted Industry Growth 15%

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Economy< Rs. 100

MidRs.100 -225

PremiumRs. 225 - 500

Super P.Rs. 500+

VIPLuxRupaAmulDixyDoraTTDollarEuro

M&SLevi’sUCB

CKTommyFCUK

KillerJockeyChromozomeHanesZoiroPark AvenuePlayboy

“GAP” More

BrandsNeeded

Fastest Growing Segment @ 30%Expected To Grow @ 17% till 2017

Rs.3300 Cr.

Market

40+ Operating Brands Lux Rupa Amul Dixy Scot VIP Jockey Weststock Macroman Calvin Klein Guess M&S Crocodile Chromozome Levi’s Tommy Hilfiger Hanes ONN Playboy Park Avenue Provogue Dora Bodywear Obiviously Killer Dollar TT FCUK Crusoe Granol Barry & Clark Fruit of the Loom (closed) Benetton Bonjour Euro Kajori Divya Laser Plato

Modern Retail (12 +/-)• CK

• Tommy Hilfiger

• FCUK

• Zoiro

• Hanes

• Park Avenue

• Levi’s

• VIP

• Chromozome

• Jockey

• UCB

• Playboy

• In House Labels

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Brands @ Chain Stores

Shoppers’ Lifestyle Hypercity Spencer's

Jockey Yes Yes Yes Yes

Chromozome Yes Yes Yes Yes

Park Avenue Yes No No No

Hanes Yes No No No

Levi’s Yes No Yes No

Killer No No No No

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Killer® UG Growth Strategy

1

Market Development:Need to immediately enter Modern Retail Chains as in future 40% sale will come from organized retail and Unorganized sector will be stagnated.

2

Product Development:Need to developrange of valueadded products inthe PREMIUM segment as it willobserve highestgrowth.

3

Penetration: Not recommended at this stage because market is wide open for better product and services.

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Bench Mark Business Model & Margin Structures

Mid & Premium

Super Premium

Economy

VIP OutrightRetailer – 7% Net MDDistributor – 3% Net MDHeavy Sales Promotion On “Boxes” bought by retailers and distributors.Replica Of FMCG model.Different margin for Core and Fashion.

JockeyOutrightRetailer – 24% Net MDDistributor- 7% Net MDStrong replenishment cycles. Replica of core replenishment model.Different Margin for Core and Fashion.

Calvin KleinSISRetailer- 28% SORDirectFixture, Staff, Discounting & operations done by the brand.Replica of Apparel SOR model.Flat Margins.

Recommended For Killer

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Killer® UG : Business Model

100 Counters on Auto Replenishment100 Counters on Auto Replenishment100 Counters on Auto Replenishment100 Counters on Auto Replenishment

Can Sell At Hyper and Premium Stores both

like Jockey & Chromozome

FMCG Style FMCG Style

““NO”NO”

SIS -SIS -SORSOR““No”No”

Outright : Outright : DirectDirect

Outright via Outright via DistributorDistributor

Auto Replineshments

3 Weeks Cover3 Weeks Cover 2 to 3 Weeks Cover2 to 3 Weeks Cover 7 to 10 Weeks Cover7 to 10 Weeks Cover

FactoryBase Stock

Customer DC

Retail Base Stock

We need to continuously monitor stocks at 3 points

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Auto Replenishment

On the floor for Weekend Sale

Pack and Dispatch

Monitor Sales, Generate PO, Collect Tags

FRIDAY

WEDNESDAYObtain Dispatch Instructions

TUESDAY

MONDAY

2 Days Transit

24 Hours

1 Working Day

Start

Special cases like Kolkata or Long weekend needs to be planned in advance

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SWOT - JockeyStrength

1. Known as an established brand in inner wear, sleep wear for women, men and children2. Established and trusted Brand Name globally3. Jockey is a recognized trademark in 120 countries4. Is an active corporate citizen5. Popular top-of-the-mind brand available mostly at all multi-retail brand stores globally6. Popular advertising campaigns and good brand visibility

Weakness1.Brand Name has to be protected and hence the costs increases2. Competition from other popular brands means limited market share growth

Opportunity1.Emerging markets are projected to have increasing sales in the lingerie sector 2.To take forward its jockey initiative as more number of people are becoming aware of their lingerie and nightwear

Threats1.New entrants have a chance if they offer innovative designs and services2.Intense Competition from existing players3.Problem of imitation of designs in countries where property rights are not properly defined

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SWOT - Calvin KleinStrength

1. Modern and minimalistic brand with excellent brand equity2. Strong brand name and good marketing3. Global distributed system is excellent and has a reach in over 21 countries4. The advertising campaign is found in high fashion magazines including Vogue, Elle, Harpers Bazaar, and Glamour hence good consumer awareness

Weakness1. Products are expensive and premium which means limited target audience, and brand switching 2. Fake imitation and duplicate products are affecting sales

Opportunity1. Population growth, development and economic integration2. Development of internet, and other mass media where brand penetration can happen3. Great opportunity in developing countries like India

Threats1. Customer needs and changing perception2. Global factors like high tax implications, High inflation which affects buying behavior of consumer3. Customers look for high quality with low price hence high chances of brand switching

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