BUSINESS IDEA ON STARTING BOUTIQUE FOR ETHNIC WEAR IN KOCHI
1. EXECUTIVE SUMMARY Kochi with its virgin market is referred to as the gateway of Kerala. It is believed that Kochi will soon grow to be the largest retail destination in the state. All these factors make Kochi the ideal venue for E ‘tinco – a boutique for both men and women. E’tinco is Spanish name for Ethnic. Idea of starting a boutique for both men and women in Ethnic wear under this name is something different as this kind of boutique has not been heard or seen anywhere in Kochi. E ‘tinco provides customers ethnic wear with a twist; we are providing twist in saree and sherwani that customers have not seen in ashion industry.
E ‘tinco offers for working men, women, college going students, home makers between age 25 to 35 with an average income of 25000 and above. E ‘tinco will be set up in the hearts of Panampilly Nagar, Kochi. The place is turning to a favored sport for office, restaurants and business houses. E ‘tinco mainly focuses on both socialites and conservatives area where people are both upper class and middle class. E ‘tinco is targeting concentric – selective strategy where ethnic wear is the main product and under this variation are provided to customers. E ‘tinco’s USP is Ethnic Wear with a Twist.
E ‘tinco provides a wide range of products to our customers, in men’s section we are offering products in sherwani and pants and in women’s section we are offering products in Kasavu saree, Kanchipuram saree, madras checks saree, twist in border and denim saree. The price range starts from 699 to 19099 and we follow intermediary pricing as we have understood the market area of Koch’. E ‘tinco sell directly to the customers and in a well establishes area like Panampilly Nagar. We reach our customer in different medias like print media, social media and sales promotion.
Time taken to start and end our project E ‘tinco is span of 6 months and with a square feet of 1000. E ‘tinco has a unique process of designing the garment till the end process of displaying the merchandise in the store and in store we have well trained staffs. The initial investment brought into for this is business is 200 lakhs and the net profit for the first years is 3. 77 lakhs and balance sheet has been tallied henceforth. 2. INTRODUCTION products with nearly nine million people of its population between the ages 15 and 35. Hence Kerala offers a huge potential for consumer research especially on the outh segment.
The media penetration is also high. Kochi with its virgin market is referred to as the gateway of Kerala. It is believed that Kochi will soon grow to be the largest retail destination in the state. The transformation of Kochi to an urbanized city has brought about a number of changes in the lifestyle of the people here, with western style highly influencing their dressing sense. The city is no exception from other metros in India when it comes to the escalating demand for branded apparel. Most people are opting for branded wears as it assures quality products.
All these actors make Kochi the ideal venue for E ‘tinco – a boutique for both men and women. 2. 1 BRAND NAME E ‘tinco Etinco is Spanish name for Ethnic. Idea of starting a boutique for both men and women in Ethnic wear under this name is something different as this kind of boutique has not been heard or seen anywhere in Koch’. Usually people would have seen boutique for women focusing on designer saree, party wear, ethnic wear or mix of all in other case they must have seen boutiques for men but there is no boutique meant for both men and women.
Setting up a store and bringing a new creating idea s what Etinco has in store. E ‘tinco provides customers ethnic wear with a twist; we are providing twist in saree and sherwani that customers have not seen in fashion industry. E ‘tinco is going to start functioning for customer on August 8th 2014. 2. 2 BRAND LOGO 2. 3 COMPETITORS Some of the competitors that fall under the same line of ethnic wear in Kochi are Pranaah, Aakriti and Mantra. Pranaah is specialized in designer wear ethnic wear like also offers designer sarees and salwar materials.
Mantra offers materials of salwar and churidar and designer saree. 3. MARKET CHARACTERISTICS According to the study done by Ace Global Pvt Lt, India’s textile clothing and apparel sector has opened up significantly with the dismantling of quotas. Global apparel market is gradually shifting from western countries to Asia based on competitiveness. India has also added advantage of low labor cost along with other countries like Bangladesh, Indonesia and China. 3. 1 MARKET SIZE Apparel is the second largest retail category in India.
There are number of factors that have contributed to a definite volume in the apparel market size. India’s domestic market for clothing is currently worth Euro 20219 million in 2008. Volume wise apparel market has grown from 4. 8 billion units to 5. 9 billion units in 2008 at 5. 3%. INDIA’S MARKET APPAREL SIZE TABLE refer to Annexes 3. 2 ASSESSMENT OF DEMAND & MARKET POTENTIAL (IN INDIA) Indian textile clothing and apparel industry has been one of the worst affected under the impact of financial meltdown that has impacted the economies of US and ELI.
As a fall out, India’s domestic textile and apparels market suffered some set back. However, India’s economy during the past 2/3 months has shown signs of recovery. Government of India has projected GDP growth rate of 6. % for 2009-10. 3. 3 KEY MARKET DRIVERS – DOMESTIC MARKET Changing demographic profile works as a major stimulus to market development. India has a young consumer profile with over 65% of the population below 35% years of age. The composition of the Indian population is shifting more towards the age group 20-29, viz, the working population with purchasing power.
This indicates that the lifestyles of people are changing faster. Rising income level A large number of households are getting added to the consuming class with growing income levels. This has been a significant rise in high income group ouseholds from 5. 5 million in 1995 to 18 million households in 2005 and from 18 million households to 31 million households for high middle income group. Retail Space Quality retail space has been one of the key hurdles for the development of organized retail. In 2007 there were 375 shopping centres / malls covering 90 million sq. t quality retail spaces. Even though this still constitutes a small fraction of total retail in India, this growth in quality retail space is expected to impact the growth in the apparel market as there will be considerable change in the shopping habits. Impulse shopping is expected to go up to of total mall shopping. Mall Culture The emergence of mall culture and rapid development of malls would act as a catalyst in this retail growth. Indian apparel market is vast and fragmented and yet growing, characterized by presence of large number of players, widely dispersed across the country.
The market is segmented in three different ways: Segmentation by user category Segmentation by use Segmentation by price The market was classified under three broad categories: The low end market: Lower and economy, solely volume driven, products are mostly unbranded and ominated by large number of manufactures. The manufactures operating in these segments are beset with problems of high competition, limited capacities, inadequate logistics and paucity of funds. Mid-Range Market: This segment features medium range of products, through primarily volume driven, caters to diverse sections of Indian consumers across all regions.
High End Market: MNCs and large Indian players operate in the premium and super premium product categories. Exclusively in product features such as high quality raw materials, embellishments, design development and above all branding of products on emand. 3. 5 INDIAN MARKET FOR ETHNIC WEAR Indian women’s wear has gone through a transformational phase during the past decade. Increasing number of working women, independence in deciding financial matters, media exposure and awareness of current trends give a new dimension to the segment. Women’s wear includes both intimate wear and outwear.
Main categories are suits and coats, T-shirts, Jumpers, tops, Jackets, skirts, blouse, sweaters and sweatshirts. Ethnic Indian wears like salwar suits also to add to it. As the number of working women increase, market for fusion wear and western wear are likely to row simultaneously. In 2009, Indian women’s wear generated revenue of 10. 2 billion with a CAGR of 11. 6%. 3. 5. 1 COMPETITIVE ANALYSIS OF THE WOMEN’S WEAR MARKET An RNCOS research states that ethnic women’s wear comprising of sarees, salwar kameez and Kurtis are fast growing segment in the Indian arena.
During 2011, market for women ethnic wear was 363 billion and is further predicted by industry experts to grow by 10% by 2015. Additionally, western influence among the young segment has motivated manufactures to combine traditional patterns with modern style. Table 2: Apparel market size Women’s wear is more complicated comparatively over men’s wear, its trends capricious and keep changing swiftly whereas men’s fashion trends to transform slowly with predictable changes. Ethnic salwar kameez is the wardrobe staple for Indian women, with the fashion designers having a major chunk of their collections.
Market for women’s clothing in the age group of 35+ is fast developing into a lucrative segment. Retailers, especially those who are vertically integrated are cashing in on the new phenomenon, and are working hard to cater to the market for this segment of high profitability. Emergence of casual dressing as an official lifestyle trend is picking up at a phenomenal rate. More companies are accepting the trend of casual dressing at workplace increasing the sale of casual shirts. The trend of Friday dressing has increased the market for T shirts.
Though tailored suits comprise a larger share of this segment, retailers are now offering standardized sizes in an attempt to widen their market. 3. 5. 2 TRENDS – THE SHOPPING WOMEN’S PSYCHOLOGY It is only natural for every woman to prefer looking beautiful without losing the essence of what makes her uniquely attractive. Price is not a major concern for omen these days, especially of the working class. Most of them are financially independent, and what they expect is clothing that would boost their confidence. Women prefer quality clothing and are willing to pay higher prices for apparel that meets their expectations.
Presence of natural fibres acts as a key identifier of quality apparel. There is an increasing trend in the number of women who enjoy wearing denim apparels, specially the younger population love to say they own denim apparel. Denim apparels enjoy more popularity in metropolitan cities such as Delhi, and Bangalore where consumers own two times more Jeans apparels han consumers from other regions. Though much demand would be for traditional clothing, there will be a small portion of the female population, the working class who would go for formal attires.
They prefer western outfits, and will contribute a major share in the consumption of the same. Todays women try to create their own ensemble. They test mixing and matching their attires, and create new looks. They would also prefer a favourable environment to shop in privacy. As the working class of women would involve in Jobs requiring long-haul travel, much requirement and demand would be for western wears. . 5. 3 MARKET FORECAST BY REVENUE Global apparel market for women’s wear grew by 2. 6% during 2011 and reached $600,491 million.
It is predicted by industry analysts to exceed $621 billion by 2014, a Table 3: Projected growth for Women’s wear A Technopak study states that Indian market for women’s wear was ‘72,040 crore in 2011. It further predicts the market to grow and reach ‘1, 11,450 by 2016, and ‘1, 75,300 by 2021. Exposure to international trends, awareness created by media, internet, and availability of foreign brands in the Indian market has created an evolution in the segment. Global brands with deep pockets have been entering into the country since then.
Inception of a cosmopolitan culture has led the Indian women to go for global silhouettes. Indian women’s wear market which is estimated to be around Rs. 540 billion will grow drastically with a CAGR of more than 11% during the period 2012-15. Indian women’swear market has been experiencing a remarkable growth. Industry veterans assert that more 20% of the women force will be Joining the working population in the coming years. Organized retail stores are gaining importance, and new malls are coming up, fuelling the existing market for women’swear.
With more and more women coming out of their shell, and participating in a challenging work environment, Indian market for women’swear is likely to experience robust growth in the coming years, with every retailer striving to have their slice of the pie. 4. MARKET STRATEGY 4. 1 SEGMENTATION 4. 1. 1 DEMOGRAPHIC AGE: 25 – 35 INCOME: 25000 & above OCCUPATION: Working Men & Women, College students, Home makers 4. 1. 2 GEOGRAPHIC E ‘tinco is going to set up its store in the hearts of Koch’, Panampilly Nagar.
Panampilly Nagar in Kochi is a busy & posh residential area Just 1 km east of M. G. oad, the epicenter of Ernakulam city. From M. G. road, Pallimukku Junction, one could go over the south bridge take a deviation to the right to reach Panampilly Nagar. The place is turning to be a favored sport for office, restaurants and business houses. Besides Panampilly Nagar Shopping complex, a number of boutiques, lifestyle stores and restaurants serving India as well as such as Chinese and Italian cuisine have come up among them.
E’TINCO ADDRESS: E ‘tinco, 14th Cross Road Panampilly Nagar, Kochi Kerala-682020 4. 1. 3 PSYCHOGRAPHIC Indian consumers come under two main segments, Socialites and Conservatives. Socialites belong to the upper class and they prefer to shop in specialty store, go to clubs on weekends and spend a good amount on luxury goods. People under this segment always look for something different and they go for high value and exclusive products. Conservatives belong to the middle class and they outlook is traditional and is cautions in purchasing.
They are slow in decision making and seek a lot of information before making any purchase and they also look for durability and functionality but at the same time is also image conscious. Our consumers come we are targeting for the consumers and even under Conservatives as people under his segment’s outlook is traditional and people who wants to look traditional but yet stylized are having the opportunity of getting merchandise in our boutique. E ‘tinco is offering products to customers who wants to walk in a stylized, polished, fashionable and still in traditional manner.
As Kochilites nowadays are more into western style people will be more interested in trying something different and E ‘tinco is bringing out something different to Kochilites. 4. 2 TARGETING TARGETING SEGMENT: CONCENTRIC- SELECTIVE STRATEGY E ‘tinco is targeting concentric segment where ethnic wear is the main product and nder this different variation are provided for the customers. The targeting strategy that comes is selective strategy. Sherwani Pants Kasavu Kanchipuram Madras Miniature Denim Working – Men & Women Students Home-makers 4. POSITIONING PRODUCT POSITIONING E ‘tinco is positioned as a premium boutique as we offer different products for our customers. Different unique materials are used in our merchandise and creative techniques and twists are brought for the customers. E ‘tinco is also doing services for their customers, any customers who wants their old saree and sherwani to be customize then we are there to do for them. We will be doing according to the customers color, style and if they have any difficulty in selection of color or fabric then the designer will help them in choosing the correct color and fabric. . 3. 1 USP OF E ‘TINCO Ethnic wear has a wide range of clothing like for women saree, lehanga, salwar, churidar, kurtha and for men it will be kurtha pajama, Nehru collared shirts, angarakha style, churidar achkans, bandgalas. Twist giving a change to the clothing that people has not seen or has not expected in fashion field. 5. MARKETING MIX 5. 1 PRODUCT E ‘tinco always wants to surprise their customers with something different and we re providing products that would give a smile to every customers face as they see our products.
In Men’s wear we are bringing out sherwani and pants and the twist is given to the neckline of the sherwani. Usually sherwani that is seen normally is having Stand collar, Nehru collar, V neck, U neck and many more but no one has thought of cowl neck, shawl neck and attaching the shawl to the sherwani and bringing it into one whole piece. For the bottom it would be something simple and plain, printed and embroidery, there will be straight cut pant and dhoti style. WOMEN’S In women’s section we are bringing out saree of different states and some are combined together and some are given a twist.
TWIST WITH KASAVU SAREE In Kerala saree or also known as Kasavu saree is worn by Kerala people during festive season like Onam and Vishu, what people normally see nowadays is mural painting, golden thread work, block printing done on the saree but we are bringing out a change or a twist to this material. Bringing net material with golden thread works in pallu and fleets of the saree and along the golden border of the saree giving velvet of green and red and on the remaining part of the saree doing screen printing f floral designs.
Second idea of bringing twist to Kasavu saree is having brocade material to the fleets. Third idea is doing Warli painting which a tribal painting is found mainly in northern parts of India. Another idea is having madras check material which was famous and old in Chennai. FUSION WITH KANCHIPURAM SAREE Next saree that’s brought twist is Kanchipuram saree which is famous mainly in Tamil Nadu and it is distinguished mainly by its wide contrasting borders. First idea bringing silk chiffon material on pallu and fleets with mural painting done on it. Second creative idea is having Jacquard silk on fleets.
Another idea is mixing other silk saree like Mysore silk, Banaras silk to Kanchipuram saree. TWIST WITH MADRAS CHECKS Next saree in our wardrobe is Madras check saree and here we are bringing out styles using materials like Brasso fabric, Brocade fabric, and net materials. TWIST IN BORDERS Next are something different and unique, doing miniature paintings on borders and then attaching on different materials of saree. Miniature paintings are texts in religious manuscripts, illustration of mythological epics. Mainly of the Rajput, Mughals and many more.
Here we are printing the mythological epics in a plain cloth nd attaching it to different unthinkable materials along with embellishments of stones and zan work. TWIST WITH DENIM Denim, when people see denim material they think of Jeans, skirts, shorts or jumpsuits but no one has thought of saree made out of denim. We are bringing out saree made of denim material and also including some twist to it, like adding lace net to the fleets and pallu, doing embroidery work and cut work to the saree. 5. 2 PRICE INTERMEDIARY PRICING TATICS: PRODUCT LINE PRICING E ‘tinco would offer products to their customers according to the price customers wants.
E ‘tinco follows intermediary pricing as we want to present our products to our customers according to customers preference, most of the designer boutique affordable price. Men’s Wear Price Women’s Wear Sherwani Plain FIS 11099 Kasavu Saree 9599 Sherwani Plain 314th sleeve 9499 Kanchipuram Saree 9899 Sherwani Printed sleeve FIS 1 1300 Madras Checks Saree 8499 Sherwani Printed 314th sleeve 7599 Twist Border ( Miniature Painting) 10599 Sherwani Embroidery FIS 19099 Denim Saree 10999 Sherwani Embroidery 314th 12999 Straight cut Pant Plain 699 Straight cut Pant Printed 1099 Dhoti Style Plain 959 Dhoti Style Printed 889