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Impact of Changing Business Dynamics to Domestic Market

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... products for small home Nuclear family Channel for Sales Changing Face of Retail Modern ... youth Major chunk of Indian ... Business Dynamics World is ... – PowerPoint PPT presentation

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Title: Impact of Changing Business Dynamics to Domestic Market


1
Impact of Changing Business Dynamics to Domestic
Market
2
Basics
3
What business are we in?
  • Who is our target customer? Age group, area,
    socio-economic class etc
  • What are we selling? - product, benefit
    real/psychological, service, solution, or
    combination of the above?
  • All subsequent slides need to be analyzed
    considering above parameters.

4
Major Changes in Business Dynamics
5
World is becoming one market.
  • Political factors bilateral trade agreements,
    custom duties, exchange rate , balance of trade
    compulsions post economic crisis etc
  • Consumer awareness through media, internet,
    telecom revolution, travel etc
  • Technology competes across border.
  • Competition need not be from same product
    category but diverse universal product basket.
    Curtain should compete with all window covering
    products or Bath-mat with other floor covering
    products.

6
Commodity Boom
  • Prices fluctuating and mostly going up across
    most commodities.
  • Time for reengineering products to ensure that
    popular price points are adhered to.
  • Look at alternative technology, supplier, fiber
    and so on.
  • ASP may go up and quantity may come down
  • Composition of share of wallet may change.

7
Changing Face of India
  • Macro factors - growth rate of GDP, rise in
    Income level, housing boom, retail revolution
  • Infrastructure
  • Transport road, railway, air
  • Banking, communication
  • Legal GST making India as one country
  • Despite all the above, Unity in Diversity has not
  • Changed.

8
Consumer is changing
9
Consumer has more money.
  • Consumer was always rich and now getting richer
    at all income levels.
  • Consumer has more money to spend to upgrade
    lifestyle if marketer is willing.
  • Consumer durables have garnered big money from
    consumers. It is time for textile companies to
    create value and garner big money.

10
India is young country.
  • India is young country and young customers are
    expected to be different.
  • Brand conscious
  • Lalitaji does not work any more. Surf using Daag
    Achche Hai
  • Informed customer - Internet and social
    communities - the way consumer communicate to
    each other has changed

11
Housing Boom
  • New homes is big occasion and big reason to buy
    all new home products.
  • Smaller homes metro products for small home
  • Nuclear family

12
Channel for Sales
13
Changing Face of Retail
  • Modern trade
  • From Chandni Chowk to Select Saket Mall
  • From street shopping to air-conditioned luxury
    centers
  • Week-end family outing destination
  • Organized Retail expected to be 15 by 2013.
    Misleading as it is already higher in lifestyle
    category in big metro and mini-metro markets.

14
Changing Face of organized retailers
  • After economic crisis, consolidation, all
    retailers are back on aggressive growth path.
    Expansion also in B and C category towns.
    Retailers are achieving critical scale. Private
    labels and imports becoming more viable.
  • During retail evolution process
  • MRP going up
  • cost to MRP multiple becoming favorable.
  • Consumer willing to buy at higher prices.
  • Display will generate new demand as well as
    convert latent demand in actual demand.

15
Value Segment
  • Value retailing was cheap poor quality products
    at one time.
  • Now, Value retailers are upgrading products.
  • Many value retailers offer lifestyle experience
    and also sell same products that premium stores
    sell.
  • Premium Department store and Hyper value are
    definition of text-books. Consumer may not follow
    the same.
  • Value need to be seen by benchmark of Indian
    customers and not by Western markets.

16
Home Retail
  • Increase in space by leading players Home
    Center, Home Stop, _at_home, Home town
  • Other home retailers on block Evok, Reliance
    Living, Houseful, Home Store etc.
  • Soft furnishing one of the most profitable area
    for home retailers advantage textile -Other
    product not easy to get higher price and margin.
  • One of the large retail group Soft furnishing
    group beat apparel for 12 weeks continuously and
    they changed plans for category.

17
Unconventional Channel of Sales
  • TV Shopping
  • Product presentation luxury
  • 70 sales coming from non-metro towns. Latent
    demand and underserved.
  • Internet

18
Marketers/Retailers
  • Create new demand for product categories
  • Watch your competition and respond suitably.

19
Portico Experience
20
Targeting the youth
  • Major chunk of Indian population is young
  • Sports is big thing.
  • Foot-ball becoming extremely popular with premium
    youth customers. Foot-ball is cool.
  • The biggest sporting event - FIFA tournament in
    2010
  • Introduced product at Rs. 1999/- single bed sheet
    set

21
Product
22
Cashing on Football mania
  • Typical display

23
Display
24
Wedding Collection
25
Trousseau
  • Portico had introduced wedding collection of silk
    yarn dyed jacquard bedding of 13 piece set at MRP
    Rs.20000/-
  • Designs from exporter who sold same products to
    leading brands of Italy
  • Did not do well and difficult to sell at even Rs.
    10000/-

26
Marigold- The Wedding collection
  • A proper wedding gifting solution
  • A noble idea of reusable packaging
  • Huge expenditure in weddings

27
Marigold- Comforter set
28
Duvet Set and towel set
29
Marketing Initiative-Marigold collection
  • Print ads- Newspaper and Magazines
  • Ad in Matrimonial classified(Targeting the right
    customers)
  • Contest on Internet
  • Shaadi.com
  • Bharatmatrimony.com

30
Marigold-print ad
31
Contest on Shaadi.com
32
Packaging Innovation
33
Packaging
  • Plastic was becoming expensive.
  • Eco movement becoming bigger.
  • Lot of wastage of small bits at stitching plant.
  • Modern retail did not require product to be
    packed in plastic.

34
Eco-Friendly Cushion Packaging
35
Result
  • Solution to make cushion cover from waste
  • Saving of cost
  • More eco friendly
  • More value to consumer
  • Consumer can experience look and feel of product
    better and so on.
  • Got the award for Innovation in Packaging by Du
    Pont, USA and India Star award for packaging.

36
You are most welcome to give me feed-back now or
send to rajiv_at_porticoindia.com or
rajivmerchant_at_hotmail.com
37
Thank You
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