report on tailoring services

8/13/2019 Report on Tailoring Services

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Group Members:

Harsh Dev (311)

Neha Gupta (317)

Ankur Kalani (326)

Priyan Perera (344)

Chinmay Pradhan (345)


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2Tailoring Services – Market Research

Market Research:

It is the process of collecting, analyzing and reporting of data

which helps in defining marketing opportunities and problems,

and coming up with proper solutions for it.

Market Research can be used to start a new business, analyze the

position of product in industry, data from research can be used

to support company decisions, help maintain competiveness

over competitors.

Overview of Tailoring Industry:

Tailoring is a business that makes, repairs and alters clothing

professionally. There are types of tailoring like local tailoring,

distance tailoring or Traveling tailor.

Tailoring as an industry started in the twelfth century. Today

this industry is valued in millions of dollars.


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SWOT Analysis

STRENGTHS

Clothes are customized as per the needs of theconsumers:

The fitting, design, pattern given is all as per the customer’s

needs and requirements unlike in retail outlets where the

design and pattern are same.

Specialized skills and expertise of tailors:Every tailoring shop is specialized in something or other.

Some shops are exclusively for ladies salwar suit some are

for gents shirtings and suiting’s some for gents sherwanis.

Low pricing:Tailors stitch clothes for as low as Rs 250/- per salwar suit.

This gives them a benefit over readymade garments which

are costly.

WEAKNESS

Deliveries are not made on time:A shirt and pant given for stitching may take around 2

months for getting stitched. People now a days have no

patience to wait for 2 months to get their clothes. Instead


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they prefer going for readymade garments where they get

their clothes in an hours time.

Fixed cost are high:Cost of buying a shop or taking a shop on rent, buying

machines is very high in a city like Mumbai. With the low

pricing of tailors it becomes difficult for them to recover

their fixed costs early.

Limited marketing budget to develop brand awareness:Local tailors have very low budget to develop their brand

image. Their branding is done by mouth to mouth publicity.

Low margins:Tailors have to pay the workers they have employed and

other costs like electricity, refreshments, etc. Thus they

face problem of low margins.

OPPORTUNITIES:

Bulk orders from schools, colleges, corporate offices,etc:

Tailors receive bulk orders from schools for school

uniforms from colleges and corporate offices for common

uniforms for their students or employees.


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Retailers like Reliance trends and future bazaar arerecruiting tailors to offer the perfect fit and customised

style to their customers.

Seasonal events:Tailors receive huge orders during festive seasons like

diwali, marriage season. During these seasons the demand

for unique and customized clothes is high and people prefer

tailoring services.

THREATS:

Preference of consumers:The preference of consumers for readymade garments has

fast changed due to the quality and comfort they deliver.

Quick services provided by readymade garment shops: Nowadays the readymade cloth providers give fast and freeservices like altering service across all outlets. Thus the

customer does not have to worry about the fitting while

buying readymade garments.

Competition:There is a high level of competition in Tailoring service

industry. Thus there is also a high risk of imitation. Any

new design or pattern developed by one tailor can be easily

copied by other tailors.


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Porter’s 5 force analysis for the tailoring service industry as

a whole:

Bargaining power of Buyer: High

The Buyers Bargaining power is Very High in this particular

segment, since this segment provides large variety of options to

the buyers. There is a variety for the Buyers to choose from, and

thus involves a lot of Competition with respect to quality and

price. The tailors compete amongst themselves with regards to

customer base, prices, and delivery timings. There is also a

presence of large number of Tailors spread across different

locations.

Bargaining power of Seller: Moderate

The Sellers Bargaining power is Moderate in this particular

segment. The purchaser i.e. the Tailor has a say, since he has got

a large pool of sellers to purchase the goods, also the current

advancement in E-Commerce, has made it easier to contact new

sellers. However there can be slight change in the risk, with

respect to a high demand for a particular quality/type of cloth by

customers.

Threat of New Entrants: High

There has been a considerable increase in the numbers of Tailors

in the Market, as well as due to E-commerce, it has become easy

to contact new Tailors and thus, the Competition has increased


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considerably. In such a scenario, a new Entrant posses a great

Threat to the Existing Tailors in the market.

Threat of Substitutes: High

The substitute for this sector is the ready-made garments

industry, which is highly matured. Thus the Threat of

Substitutes is High for the Tailors. The Existing Tailors need to

continuously look out for new customers, in-order to maintain

the profit margins. Also, the research has shown that the

consumers today prefer ready-made garments, over and above

the stitched clothes. Also the Ready-made Garment sector is

providing customization and post sale alteration services to the

customers.

Intensity of Competition: High

This sector has competition not only from the peer tailors, but

also from the Ready-made Garments Segment. Each player triesto occupy a larger share in the market and wants to earn larger

profits. With more and more Ready-made garment companies

entering into this market, there has been a considerable increase

in the competition and rivalry in the market. For any Tailor to

succeed now, they have to deliver the best service, within

reasonable time, with competitive pricing strategy


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Topic: Market research on Tailoring Services.

Problem statement: People prefer readymade garments over

stitched clothes.

Research plan: After defining the problem statement we

developed a research plan to gather the required information.

We collected a sample of 100 users and customers using an

Online Questionnaire Research Instrument (The Questionnaire is

attached herewith) and analyzed the sample. The reason for

using an online questionnaire is that it’s the cheapest and easiest

research instrument to gather the required primary data. We

extracted the required data from all survey forms and analyzed

it. We also did a research of secondary data of surveys

conducted earlier by other people which were available online.

Analysis:

We got responses of 100 people from the online survey which

we conducted. After gathering this data we have analyzed this

data and made comparisons using it. This analysis has helped us

in building some conclusions.


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1. Gender wise Distribution of the Sample

2. Age group wise distribution of the Sample.

Male

Female

42%58%

15-25

26-40

41-60

60 and above

60%22%

12% 6%


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2. Preferences:

As we see here more than half of our sample size prefers

readymade clothes over stitched clothes.

3. Female Preference

Ready Made

Stitched

clothes

66%34%

Readymade

Stitched

38%62%


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4. Male Preference:

We have observed that females prefer more stitched clothes

more than male. Although the percentage of male

preferring stitched clothes is bit more than females. But we

have come to this conclusion due to sample size of female

being less than that of male.

Readymade

Stitched

Clothes

31%

69%


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5. A tailor which people prefer. (Recommended or Unknown)

This result shows that people prefer to go to a

recommended tailor rather than going to a unknown tailor.

Which means unlike some other services or products a

tailoring service needs to be well established and famous to

attract more customers.

Recommended

Unknown96%

4%


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6. Satisfaction of people with their tailoring services.

This result shows an inconsistent result. The reason had

been that when we asked people whether they prefer

readymade clothes or stitched clothes more than 70%

people preferred readymade clothes over stitched clothes.

We analyzed this situation with help of other graph so as to

understand this inconsistency.

Satisfied

with tailor

Not

Satisfied

with tailor

72%

28%


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7. Tailor preference.

Brand’s tailor means a tailor who works with a particular

company like Raymond, Van Heusen etc.

More than 60% people prefer to stitch their clothes from a brand’s tailor due to the brand’s authenticity.

Brand's

tailor

Local

tailor

62%

38%


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8. Some major reasons due to which people prefer readymadeclothes over stitched clothes.

This particular graph shows that Delivery time is the biggest

problem for a tailoring service. People prefer stitched clothes

due to their exclusive fitting, but as the majority of tailors

have semi skilled labors, tailors fail to live upto the

expectation of people. This graph also justifies why there is

an inconsistency amongst our previous results. People are

satisfied with their tailoring services but they still don’t prefer

stitched clothes because of these reasons.

0

5

1015

20

25

30

DeliveryTime

DesignSuggestions

Fitting Pricing

Delivery

time: 56%

DesignSuggestions

:26%

Fitting :

44%

Pricing:10%


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9. Important attributes which people look when they opt for atailoring service.

Here 1,2,3,4 are the ranks given to various attributes for theirsignificance. We asked people to rank each attribute as per their

significance in tailoring service. Specialty of a tailor was ranked

as the most significant attribute which people look into a tailor.

Specialty includes various factors like fitting, customization,

designing etc… While popularity was ranked 2nd most important

attribute followed by price and location.

0

10

20

30

40

50

60

Popularity Price Speciality Location

4

3

2

1


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Key Findings: After doing the research on tailoring services we

found the following:

There are no major players who dominate the market intailoring service industry.

Tailoring service industry has a good scope but people prefer readymade garments more than stitched clothes due

its simplicity.

In current market people are majorly dissatisfied about thetailoring services due to two main reasons; one is delivery

time and second is fitting and customizations.

Exclusive finishing is the major reason why tailoringservices in today’s market face the difficulties in competing

with readymade clothing industry.


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References:

"The dressing style has changed dramatically in last five years,"

said Bundu Khan Ansari, director of B K Textile, a 20-year-old

company is based out of Ahmednagar area in Meerut. "Focus,

nowadays, is on readymade garments especially among males.

Tailor-made garments are losing its charm with competition

from branded clothes."

Satish Kumar Singhal, owner of Global Fabrics believes, "The

tailors cannot stitch the way youngsters want. And, there are sale

and discounts on different brands throughout the year. People do

not mind buying stuff when they need it. There are more choices

in terms of colour and style that readymade garments offer."

Gaurav Singhal, owner of 40-year old Gaurav Textiles, echoed

similar sentiments. "People need instant gratification. They find

a readymade garment more convenient. Also, the number of

branded stores is more than cloth stores in every area.

Customers do not have the patience to wait for 3-4 days for the

dress to be stitched."

Source: The Economic Times Dec 1, 2012.

report on tailoring services

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