market structure of branded shirts

7/27/2019 market structure of branded shirts

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TopicBranded Shirts

By: Arghya Das 14PGP004

Garima 14PGP020

Pranav Aggarwal 14PGP030

Somal kant 14PGP043

Yash Dubey 14PGP055


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Number of buyers

By Volume 2007 2008 2009 2010 2011 2012

Branded Shirts(in mn units) 284.5 290.4 296.8 307.2 319.5 335.5

By Value 2007 2008 2009 2010 2011 2012

Branded Shirts(in Rs bn) 169.2 184.5 201.3 220.2 240 268.8

% Volume Growth 2011-12 2007-12(CAGR) 2007/12 Total

Branded Shirts(in %) 5 3.4 17.9

As can be seen from the sales volume data, there are many number of buyers for the Branded shirt markets.

The increasing branded players across the major cities of India has helped to gain more value share than volume

share. The category is mainly dominated by domestic companies including Aditya Birla Nuvo Ltd, Arvind Ltd, Raymond

Ltd, and Zodiac Clothing Co. International brands including Benetton, Levis, Lee and Wrangler continued to

penetrate the market during 2012. However, the wider variety of choice and competitive pricing from domestic

players makes them a better choice.

The increase in raw material costs and central government of India planning the implementation of excise duty

tax in the future, are potential threats to category development over the forecast period. The increase in excise

duty will lead to an increase in unit prices and consumers may shift to local and regional brands.

The table shows the total sales volume of thebranded shirts market

The table shows the total sales by value of the

branded shirts market

The table shows the total sales percentage

growthof the branded shirts market


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Number of Sellers

Company(% retail value) 2008 2009 2010 2011 2012

Aditya Birla Nuvo Limited 2.3 2.3 2.6 3 3.4

Arvind Limited 1.4 1.6 1.9 2.1 2.4

Raymond Limited 1.3 1.5 1.7 1.7 1.8

Pantaloon Retail India limited 0.8 0.9 1 1.1 1.1

Kewal Kiran Clothing Limited 0.5 0.6 0.7 0.8 1

Provogue India Limited 0.6 0.7 0.8 0.8 0.7

Others 93.1 92.4 91.3 90.5 89.6

The number of sellers in this segment is high. As can be seen from the table, branded shirt market is cluttered, with

the market leader(Aditya Birla Nuvo Limited) holding the 3.4% of the retail value.

Aditya Birla Nuvo Ltd is the leader in mens branded shirts market with around 3.4% value share in this fragmented

market area. The company brands are widely accepted across India. Its brands like Allen Solly, Peter England, Louis

Philippe and Van Heusen have stronger acceptance across India, making the company the category leader.

The multi-brand outlets and modern retailing will drive sales of branded mens outwear in India. The multi-brand

and modern retailing will offer more brands under a single roof for consumers and this will help mens outerwear to

grow.


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Nature of Product(Degree of

homogenity)Segment Size Sleeves collar design price

Brand

Peter England

Business

casual/casual/formal

shirts 38-46 full/half

Spread, semi cut, cut

away, stand collar

check, gingham, solid,

stripe, and printed

patterns 800-1900

John Players

Business



Mandarin or spread

collar

Check, solid and stripe

pattern 700-1399

Raymonds

Business

casual/casual/formalshirts 38-46 full/half

Cut away and spreadcollar

Check, patterned, solidand stripe 1499-1999

Allensolly

Business



Button down, cut

away and regular

collar

Check, patterned, solid,

stripe and textured

patterns 979-2299

By looking at the data collected of top brands of branded shirts we came

to know that almost all brands have same designs of shirt falling in same segmentsOf all different sizes and most importantly having mostly same price range and having

some fabric differentiation which makes them close substitutes of each other.


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Brand Name

A brand name is valuable to a firm; it makes the demand less elasticand can enable the firm to earn higher profits.

Once a consumer has had a positive experience with a good, theprice elasticity of demand for that good typically decreasesthe

consumer becomes loyal to the product. The increasing branded players across the major cities of India has

helped to gain more value share than volume share.

Aditya Birla Nuvo Ltd was the leader in mens outerwear witharound 4% value share

Its brands like Allen Solly, Peter England, Louis Philippe and VanHeusen have stronger acceptance across India, making thecompany the category leader.


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Flow of Information

Buyers do not know everything, but they haverelatively complete information about alternativeprices

Also have relatively complete information aboutproduct differences, brand names etc

Seller also has relatively complete informationabout production techniques and the prices

charged by their competitors

Van Heusen launched Vdot and Van HeusenSports to compete with Zodiac and Indian Terrain


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Entry & Exit Barriers

There is freedom of entry

No quantitative restrictions or differences in marketconditions

Qualitative differences may create some barriers in the

short run In long run no such barriers may exist.

Dress code is maintained in most offices from Monday-Thursday, Friday is considered casual wear day.

Companies have identified this cultural trend and launched

brands semi casual clothes that fit the bill. Brands such as Allen Solly, Park Avenue and Peter England

are leading such practices


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Entry & Exit Barriers(Contd.)

Central government of Indias has authorized 100% FDIin single brand retailing & 51% FDI in multi-brandretailing

This will lead to more foreign brands to enter India like

H&M, Uniqlo, GAP, Pull and Bear and many more, incoming years.

The multi-brand outlets and modern retailing will drivesales of branded mens outwear in India during thisperiod.

This will offer more brands under a single roof forconsumers and will help branded shirts outerwear togrow.


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THANK YOU

market structure of branded shirts

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