Comp Strat Slides NXPowerLite

8/9/2019 Comp Strat Slides NXPowerLite

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Key Competitors (1/4)Key Competitors (1/4)y Pantaloon Retail (India) Limited

y a Future Group venture, started operations with

Pantaloon Shoppe in 1994

y Has since emerged as a retailing major in India, with

over 12 million sq ft of retail space spread over 1,000

stores across 71 cities in India.

y The company clocked revenues worth US$ 887 million

in 200708, a 75 per cent increase over 200607

y The net profit stood at US$ 29.75 million with a hike of

87 per cent over the previous yeary Discount store formats such as Brand Factory set

benchmarks for new players entering the market

y Innovative store formats such as Hometown,

Sports Bar,Health City

y USP - dualapproach to tap both the 'value' segment

and the 'lifestyle and luxury' segment

y Big Bazaar and Fashion Station are aimed at valueretailing, while Centraland Pantaloons capture lifestyle

segment consumers.

y TataTrent

y Established in 1998

y Revenues: US$ 124 million in 200708y Retail sector activity: Apparel, books

and music

y Current store formats: Hypermarket,

supermarkets

y Future plans: New venture called Infiniti

Retail Ltd

y Manufacture private labels in apparels

y Principal fascia:Westside, Landmark,

Star India Bazaar


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Key Competitors (2/4)Key Competitors (2/4)y RPG Enterprises

y Spencers Retail Ltd was established

in 1996

y Spencer's has retail footage of over

1.1 million sq ft

y Stores: 250 stores, including 36

large format stores across 66 cities

in India

y Retail sector activity: Music, food

and grocery, beauty productsy Current store formats:

Convenience stores, supermarkets,

hypermarkets

y MusicWorld has tie ups with 350

affiliates across the country

y Principal fascia: Spencers, Music

World

y Landmark Group

y Present in India since 1999

y Retail sector activity: Apparel,home dcor and furnishing

y Current store formats:

Department stores,

hypermarkets

y Current outlets: 15 Lifestyle

stores and eight Home Centres

y Future plans: Presence in mini-metros and tier-II cities

y Principal fascia: Lifestyle,

Home Centre, Max Retail

y Madura Garments

y Established in 1988

y Part of the Aditya Birla NuvoGroup

y Current stores: 82 in India

across 50 cities and five

international stores

y Retail sector activity: Apparel

y Joint venture with international

brand: Esprit

y Current outlets: Planet Fashion -

- 50 outlets,Trouser Town

nine outlets

y Future plans: Diversify into the

womens wear segment

y Principal fascia: Louis Philippe,

Van Heusen, Allen Solly, SF Jeans,Peter England


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International CompetitorsInternational Competitorsy International retailers are fast expanding

their business in India

y Reebok has set up its largest store in the

world in Hyderabad;

y Tommy Hilfiger and Levis have over 20,000

sq ft of retail space and standalone stores

across major metros; Carrefour, French

retail major, is set to finalise its entry route

y FDI up to 100 per cent is allowed under the

automatic route for cash and carry

wholesale trading and export trading

y FDI up to 51 per cent is allowed with prior

government approval for retail trade in

single-brand products


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Strategies to Counter CompetitionStrategies to Counter Competition

(1/2)(1/2)

y Brand Positioning

y Moved from premium to bridge to luxury

positioning

y Changed the logo

y Started launching MAC, Clinique, Estee

Lauder, Esprit,Tommy Hilfiger, Calvin Klein,

French Connection

y Worked on service and ambience

upgradation and on customer connect

y Result: growth rate of over 45% on the

international brands portfolio

y Cost Reductions

y Reduction of power consumption.

y Saved more than 40 percent in the totalunit consumption of power in last threeyears

y Recalibrated the service standard asfootfalls reduced.Though attrition is still

highy Right-sized the organisation and reduced

our manpower cost by 10 percent

y Top management tooka salary cut of 15percent

y The logo change last year cost Rs. 14crore

y This year as there was no such cost, that

money straightaway went to the bottomline

y Online Retail

y launched its e-store with delivery across

major cities in India

y The site retails all products available at

Shoppers Stop stores

y

Focuses on its existing customers, especiallyits First Citizens, or loyalty members

y ExpansionMode

y Has drawn up plans to invest Rs. 200

crore for adding 18 new stores with

about 3-million square feet in three

years


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Strategies to Counter CompetitionStrategies to Counter Competition

(2/2)(2/2)

y Merchandising opportunities like the recentlylaunched Zoozoo merchandise and film

merchandise like Om ShantiOm and Love

Aaj Kal

y Sensorial experience that we create in-store,

with the Shoppers Stop Radio that plays

youthful music, CCD in most of stores, the

day and night lighting in the trial rooms and

new services like Nail Factory

y Results: significantly larger number of

younger audiences enrolling into First Citizen

program

y Brand scores on modernity/youthfulness

have seen double-digit increase and the

customer satisfaction index has also shot up

significantly

y Youth Centric Focus

y Aim: make the brand more young and modern

while retaining the previous values like trust

y Three key things to connect to the youthful

mindset:

y Adoption of communication routes

relevant to youth,

y Upping the fashion quotient through

merchandising,

y Creating an ambience that connects with

the mindset

y Brand campaign addresses environment-related

issues in a youthful, tongue-in-cheek manner.

y

Active on social marketing platforms withFacebook andTwitter

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