Post on 05-Apr-2018
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HI Fashions Co
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OfferingsPRODUCT DESIGN
T-SHIRTS
VESTS
BREIFS(GENTS)
BREIFS(LADIES)
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HI FASHIONS
T-shirts
MALE Sizes- XXL, XL, L, M
FEMALE Sizes- XL, L, M, S, XS
Vests
COMFI
Sizes-80,90,100,110
Briefs
MACHO
Sizes-XL,L,M,S
GENTS
NAUGHTY
Sizes-XL,L,M,S
LADIES
Product Mix and Product Line
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Channel Design
End user focus
Geography
Age
Sex
Rural/Urban
Shopping behaviour
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It all starts with consumer
Target Segment
Behavior
Geography
Demography
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Channel Function
Product Information
Product return and exchange
Availability of complementary products
Credit terms
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Hybrid Grid for multi channel
approach
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Benchmarking against
competitor
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Product flow
Mfg.Cost
PriceIntermediary Consumer
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Pricing Structure of T-Shirts
Factory price = P Excise duty = 0.05P
Avg. Sales Tax = 0.084 P Invoice price = 1.134P
Town Price = 1.2P MRP = 1.6P
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Pricing Structure of other
Products
Factory price = P Excise duty = NA
Avg. Sales Tax = 0.08 P Invoice price = 1.08P
Town Price = 1.14P MRP = 1.42P
Estimated Size
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Product StateEstimated Size
(10-11) Millionunits
Percentage Growth Rate 2011-2012 2012-2013
T Shirts
Delhi 7.8 39 6.90% 8.06 8.62Haryana 4.2 21 4.50% 4.29 4.49Punjab 6 30 6.20% 6.18 6.57
Rajastan
2
10
4.50%
2-04 2.14Total 20 5.95% 20.57 21.82
Vests
Delhi 20.4 18.25 2.50% 20.63 21.15Haryana 28.3 25.26 2.00% 28.58 29.15Punjab 30.6 27.29 2.20% 30.94 31.62
Rajastan 32.7 29.2 2.10% 33.04 33.74
Total 112 2.17% 113.19 115.66Briefs (M)
Delhi 26.9 30.61 2.30% 27.21 27.84Haryana 19.8 22.45 1.80% 17.82 21.03Punjab 21.6 24.49 2.10% 21.83 22.28
Rajastan 19.8 22.45 1.70% 16.83 17.12Total 88.1 2.00% 83.69 88.27
Briefs (F)
Delhi 15 36.59 1.90% 14.25 14.52Haryana 7 17.07 1.20% 4.20 5.04Punjab 12 29.27 1.70% 10.20 11.93
Rajastan 7 17.07 1.40% 4.90 5.59Total 41 1.64% 33.55 37.08
Total for all products251
262.832% 6% 15.77
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Intermediary Stays or Goes?
Elimination of intermediary
Reducing MRP by 10% increases
profit by 23%
But
Web is not an effective channel due to
its inaccessibility
New entrant doesnt have contacts
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Recommendation
Mix of distribution channel and onlinesales and own retail outlets
Hub and spoke architecture
Use t-shirt as the major component inthe product mix due to its high
profitability
Replenish high selling centres withmuch greater frequency than that of
low selling centres
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Recommendations
Assortment of products with localvendors to capture market share in rural
and semi-urban areas
National level mass media advertising
to enhance customers knowledge
about the product
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ASSUMPTIONS
Growth rate is uniform all through theyear
Quality is highly correlated with price
All our competitors enjoy almost equalshares in market
No vertical or horizontal channel
conflict due to efficient channel design No brand dilution and cannibalization
of other products
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THANK YOU