Arvind Brands’ Competitive

Position in the Indian Branded Apparel Market

Arvind Brands’ Competitive

Position in the Indian Branded Apparel Market

Introduction• Arvind Mills established in 1931 by the Lalbhai brothers of Ahmedabad.

• The year 1993 saw the birth of three new units- textile, telecom and garments division.

• The garments division Arvind Brands Ltd was a Rs. 3.50 million subsidiary of the parent brand Arvind Mills

• ICICI Ventures picked up a majority stake in Arvind in May 2004.

• Arvind Mills reacquired ICICI’s stake by raising US$ 37.19 million through GDR’s.

• Arvind Brands became 100% subsidiary of Arvind Mills in 2005.

Introduction• All the brands under the Arvind name were growing at a healthy rate in

2004.

• Plans to sustain growth by increasing retail presence.

• Saif Ali Khan appointed brand ambassador for the Newport brand in 2005.

• Strategy was increasing distribution and penetration.

THE BRANDED APPAREL INDUSTRY

Characteristics of the industry.

Growth of the industry.

Important segments.

Important trends in the industry.

Major players.

Basket of Arvind brand

Fabrics sourced from Arvind Mills.Came with strategy to verticalize its

operationBy setting up world class garmenting facilitiesOne stop shop serviceGarment packages to domestic and

international customersInternational licences of Lee, Wrangler,

Arrow & Tommy Hilfiger.

Segmentation of Home brandFlying Machine

Newport Ruf n Tuf Excalibur

Launched 1980 1993 1997 1995

Age group 15-30 18-28 15-30 18 & Above

Price range 500-1000 300-500 299-699 500-1000

Difficulties faced

Hike in exise to 8%

Hike in exise to 8%

Distribution hurdle

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Retailer own outlet own outlet Big Bazaar

Brand ambassador

Abhishek Bachchan

Saif Ali Khan

Akshay kumar

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Tag Line Who Needs Phoren?

The Measure of Success

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Entry into new market

After the success of Excallibur and lull in denim market, Arvind launchedRuggerMade of gabardine (type of smooth fabric)Launched Bay Island in 2002Relaxed formal wear which includes shirt,

trousers, pullover, etc.

International Brand

ArrowPremium BrandLicenced from Cluett, peabody & co., USAFour sub brand

Classic Premium Urban Sports

Company was exploring possibilities of introducing footwear, fragrance, watches, undergarments, etc.

LeeLaunched in 1995Licenced from VF corporationPremium segmentAdjudged the images fashion award “most

admired jeanswear” brandPrice range 999 & aboveLee kidsLee neon (party wear)69 stores as 2006.

WranglerPositioned as rugged, confident and extreme

fashion brand.Targeted 2 types of customer

17-25 year old Fashion consious 25-40 year old Love wearing denim on weekend

Retail ambience was given importance

Tommy HilfigerLaunched by arvind together with New York

based Murjani group through 50:50 joint venture.

Introduced men’s sportswear, men’s Jeanswear, junior Jeanswear.

COMPETITIONCOMPETITION

MADHURA GARMENTSMADHURA GARMENTSIt’s was the garment division of Indian Rayon and Industries Ltd. A flagship company of the A V Birla Group Company.Owns perpetual license for premier brands like – Louis Philippe, Van Heusen, Allen Solly, Peter England, Byford, Elements and SF (San Frisco).Preferred global supplier of international brands like- Marks and Spencer’s, Tommy Hilfiger, Polo, Ralph Lauren, and several others.It distributes its brands through its own retail chains namely Planet Fashion and Trouser Town.

LOUIS PHILIPPELOUIS PHILIPPEFirst brand launched by MG1st genuinely Int. label to arrive in IndiaEvening wears, Silks, Trousers,

Blazers, Ties, T-shirtsSymbolizes elegance, class & status,

addressing style conscious contemporary Indian man

Leading Indian Premium menswear brand with market share of 20%

Recognized as a superbrandIts world rights was acquired by MG in

December 2000

VAN HEUSENVAN HEUSENPremium executive wear segmentPositioned as balanced,

sophisticated with high quality finish

Caters to premium segment of formal corporate wear

Pioneer of intelligent clothing in India (i.e Oxyrich shirts), trousers, knits, suits and now also in the inner wear range

ALLEN SOLLYALLEN SOLLYWith this brand MG pioneered the

concept of Friday dressingFormal wear with a more relaxed

attitudeIts women's wear caters to the

modern working woman by launching international quality garments that are affordable

MG acquired its world rights (except N.America ) in December 2000

PETER ENGLANDPETER ENGLAND1st international brand to be

launched in the country’s mid-price shirt segment (year 1997)

It offers value for money to its customers

One of the most popular brands in its category

Its sub-brand Elements offers a range of work casuals and evening wear and recently jeans also

MG acquired its world rights (except UK & Ireland) in December 2000

RAYMOND APPAREL RAYMOND APPAREL LTD.LTD.A 100% subsidiary of Raymond Limited,

Raymond Apparel Ltd. (RAL) ranks amongst India's largest and most respected apparel companies

They provide the best of fabric and style through some of the country’s most prestigious brands – Raymond Finely Crafted Garments, Manzoni, Park Avenue, ColorPlus, Parx, Notting Hill and Zapp!

All of Raymond’s brands are available at exclusive brand stores, ‘The Raymond Shop’ retail outlets and multi-brand outlets across India and the Middle East.

RAYMOND ‘S BRAND RAYMOND ‘S BRAND PORTFOLIOPORTFOLIO

RAL entered into the ready-to-wear business with the introduction of Park Avenue in 1986 catering to the men's formal wear market. Parx was launched in 1998 to address the growing trend of smart casuals. In 2000, Manzoni, a luxury lifestyle brand was launched offering a super-premium formal range of men's shirts, suits, trousers, jackets, ties and leather accessories. Raymond identified the vacuum for a high end, casual wear brand and hence decided to acquire ColorPlus as a part of strategic expansion plan for their ready-to-wear business. Notting Hill was launched in 2007 to cater to the popular price segment. In addition to this, Raymond Apparel has also ventured into the kids wear segment with its exclusive brand Zapp!

INDUS LEAGUE CLOTHING INDUS LEAGUE CLOTHING LTD.LTD.

Indus-League Clothing Ltd., was founded on 14th April 1999 by a team of eight top-flight management professionals from the clothing industry. These professionals have established a reputation for creating and building some of the most successful fashion brands in South Asia and the Middle East.

Within an year Indus League had transformed itself from a new entrant into a company that has launched two fashion brands namely Indigo Nation and Scullers

Indus-League has a portfolio of Three proprietary brands - Indigo Nation , Scullers and Jealous covering different segments of the fashion market.

INDIGO NATIONINDIGO NATIONPositioned as clothing for the new

age global citizen, Indigo Nation adopts a lifestyle and optimistic attitude combined with a strong value-proposition

Product Range: Shirts, T-shirts, Trousers, Formal &

Casual Jackets, Knits, Ties & other Accessories like Bermudas and Socks

SCULLERSSCULLERS Scullers comprises a range of sporty clothes, that

stop short of being sportswear; a cool, preppy and un-fussy attitude-great clothes for work and just as good to relax in afterwards.

The Scullers product range includes the Henley collection of Relaxed Wear and the Evergreen range of Classics, teamed with a Crush-Free range of Chinos and Khakis. A youthful collection of Italian silk ties completes the look.

Product Range: Shirts, Trousers, Ties, Blazers & Under-Tees.

Ties: Italian, Polyester & Silk ties. Blazers: Classy blazers in fine Polywool. Under-Tees: A range of Round-neck and classic T-Shirts

LEVI STRAUSS & CO.LEVI STRAUSS & CO.

Founded in 1853 by Bavarian immigrant Levi Strauss, Levi Strauss & Co. is one of the world's largest brand-name apparel marketers with sales in more than 110 countries

In 2009 it completed 15 years in India It expanded its portfolio from being a jeans

only brand to emerge as the complete casual wear brand

4 sub-brands Sykes, 501, Red Tab and Red Loop

Levi Strauss brand Levi Strauss brand portfolioportfolio Invented in 1873, Levi's® jeans are

the original, authentic jeans. They are the most successful, widely recognized, and often imitated clothing products in the history of apparel

The Dockers® brand is the leader in providing stylish and comfortable casual wear. The brand continues to expand its offerings to provide men and women with clothes that offer versatility for an on-the-go lifestyle

The Signature by Levi Strauss & Co.™ brand was launched in 2003 exclusively for value-conscious consumers. The brand provides these consumers with high-quality, affordable, fashionable jeanswear and casualwear from a company and name they trust.

The Company was incorporated on November 11, 1997 as Acme Clothing Private Limited.

Provogue stands for fashion and not pure apparel. Its designs are contemporary and cutting edge.

Provogue’s brand statement “ Redefining fashion” and its innovative merchandise have created a niche in the minds of its consumers.

The brand is retailed through selective stores in the country and leading National Chain Stores like Shopper's Stop, Lifestyle, Globus, Westside etc.

More importantly, Provogue is also retailed through a chain of exclusive brand outlets called "Provogue Studio"

PROVOGUE’S PRODUCT RANGE INCLUDE:INNERWEAR , T-SHIRT , BOTTOMS , JACKETS & BLAZERS , DENIM , FORMAL SHIRTS , LINEN SHIRTS , CASUAL SHIRTS, FOOTWEAR , SUNGLASSES , FRAGRANCE , CAPS, BAGS , BELTS

GROWTH STRATEGYGROWTH STRATEGY Birth of “RENOVISION” – a new way of looking at issues & seeing more than obvious.

Global expansion – “high quality premium niches”

Decentralized set up – A CLUSTER approach.

Mergers & Acquisitions to strengthen the brand positioning. - REDS, Diesel etc.

GOING GLOBALGOING GLOBAL

GROWTH STRATEGYGROWTH STRATEGY Birth of “RENOVISION” – a new way of looking at issues & seeing more than obvious.

Global expansion – “high quality premium niches”

Decentralized set up – A cluster approach.

Mergers & Acquisitions to strengthen the brand positioning. - REDS, Diesel etc.

GROWTH STRATEGYGROWTH STRATEGY Birth of “RENOVISION” – a new way of looking at issues & seeing more than obvious.

Global expansion – “high quality premium niches”

Decentralized set up – A cluster approach.

Mergers & Acquisitions to strengthen the brand positioning. - REDS, Diesel etc.

GROWTH STRATEGYGROWTH STRATEGY Birth of “RENOVISION” – a new way of looking at issues & seeing more than obvious.

Global expansion – “high quality premium niches”

Decentralized set up – A cluster approach.

Mergers & Acquisitions to strengthen the brand positioning. - REDS, Diesel etc.

GROWTH STRATEGY GROWTH STRATEGY cont.cont.

Name changed from Arvind Mills to Arvind Ltd.

Focus on retail.

Three pronged strategy for growth. Concentrating on tier II and Tier III cities. Inclusion of protective and performance fibres Establishing large format stores

OUTLET CENTRE concept to promote value pricing.

GARMENTING is the way to go.

GROWTH STRATEGY GROWTH STRATEGY cont.cont.

Demerger of branded apparel & retail business. branded apparel changed to arvind lifestyle brand ltd. retail business was changed to arvind retail ltd.

focus on value addition & differentiation.

Outlook….Outlook….Ready-to-Wear as an augmentation of

fabric business.

Unable to keep up with market trends.

Misjudged distributions.

Small brands were quick to adapt to trends.

Price points played a major role.

Retail initiative ‘05Retail initiative ‘05Presence in Sec B & C Cities.

Tie-up with Big Bazaar.

Factors inhibiting the growth of Arvind :-

Intense competition,

Falling margins,

Not doing enough to build brand equity.

“Premium” category to “Value” category.

Post ‘05 Challenges for Post ‘05 Challenges for ArvindArvind

Building the brand & achieving global competencies.

Responding to changing needs.

Desiging & executing future strategies.

Brand-Equity erosion of home grown brands.

Approach towards Approach towards ChallengesChallenges

To expand licensed brand portfolio: Nautica: Designer wear brand.

Jansport: sporting, hiking, traveling gear brand.

Kipling: Leather fashion accessories brand.

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