Thursday, April 16, 2015

Fashion & Retail Parity Between Hout Coture and Daily Wear

Retail / Mall Boom:

In India, retail is an emerging market having immense potential in terms of opportunities Facility management refers to the integration of people, place, process and technology in a building Given the high future supply of malls and increasing competitiveness within the Indian retail market, developers must correctly address these gaps to ensure success. In the current market scenario, both consumers and retailers have limited choice in terms of mall shopping experience. India is still in a transition phase as regards the buying habits of the people, even in Metro cities. One is not sure of the success of the retail infrastructure that is developed for the envisioned retail boom. Rentals are the biggest cause of worries as they take away a substantial part of the profits. Looking at all this, a promoter needs to be cautious about the viability of launching an apparel brand.

Government Policies:

The ready-made and western outfits are growing at 40-45% annually as the market teams up with international brands and new entrants entering this segment creating an Rs 5billion market for premium grooming segment. The fast few years has seen the sector aligning itself with global trends with retailing companies. However, it is estimated that this segment would grow to Rs.3 billion in the next three years. The government is believed to be giving final touches to the proposal for allowing foreign direct investment ( FDI ) in Malty-Band retail in a calibrated manner. However, DIPP is still fine-tuning the proposal. The department has zeroed on some preconditions that would be made mandatory for the foreign retailers to follow. This includes a minimum investment of $100 million, of which $50 million would be kept aside for supporting back-end infrastructure such as warehouse, cold-storage and transportation, among others. Retailers would not be allowed to set up shops in cities with a population of less than a million.

Manpower:

Organized retailing is highly manpower intensive and is second largest employer in India with around 22 million people and depicts that there will further be a very high demand for manpower to match the scope of roll out plans of various players in the near future. With growing consumerism, unprecedented awareness, and a youth-hefty customer base, India is perceived as 'Most Promising Land' for the Global and domestic retailers.

Effective Discount Policy:

The normal quoted price to the end users or retail customers is known as the list price. This price is usually discounted for distribution channel member. The discount policy on the list price is one of the important strategy which drives customers and also balances the inventories and fresh stock flow. However, India the pricing policy is governed by various differential factors which are largely - quantity discount, cumulative discount, seasonal discount, cash discount, trade discounts and promotional discount. To get the max out of this you must use the most effective marketing mix.