Internship project ReportMarket Research for Buying and Merchandising – Fashion Category

Merchandise Development Plan- Accessory category

HyperCITY Retail India Ltd. By: Anagha Tambe

HyperCITY Big store. Big savings

• India’s 1st retail store where everything is under one roof. • An international shopping experience, where customers can

shop in comfort in a large, modern & exciting environment. • widest range of products sourced from around the world• Location- Mumbai, Bangalore, Hydrabad, Jaipur , Amritsar

and Pune

Vision and Mission

“To be an integral part of customer lives, by offering them high quality shopping experience through great products at ever better prices.”

Categories

Food & Grocery

Health & BeautyFashion Electroni

cs Sports

Home & FurnishingToys

Shops in ShopsServices provided by Hypercity

Spa & saloon- Orchid Thai spa and

EnrichTravelex-

foreign exchange and money transfer

Restaurants & café-

Subway, Bistro, Café Coffee Day, Swirls, Gelato, Fisheteria,

Living Liquidz & Fresh Basket bakery

Crossword Mahindra & Mahindra

Vodafone gallery

ATM Pressto Kodak Picture studio

Travelguru Furtados

Project IMarket Research Report

Buying and MerchandisingFashion Category

Mind mappingA net loss of Rs 88 crore

in FY12

scaling down low-margin categories- electronics

focus on high-margin ones – apparel

Growth of Non-food category

double the apparel penetration

Increase apparel contribution

Research- Fashion,

ToysSports

Stationery

Objective• Provide inputs to enable managers to take decision

about penetration of new brands or private labels in the market.

• Finding out the areas where HyperCITY is not doing well (Reason and solutions)• Study of brand image

• Study of competitor’s offerings in terms of merchandise, services, store experience, display

• Study of consumer behaviour

Research MethodologySAMPLING METHOD Sample selection Method- Probability- random Sample Size- 100 customers

DATA COLLECTION METHOD Secondary Data Collection• Internet• Observation Primary Data Collection• Survey Questionnaire• General Conversation

65% of the total sample is working population

47% of population who prefer other stores for shopping, prefer shopping malls, brand’s outlet or departmental stores

17%

29%48%

6%Occupation

BusinessHWService67%

33%

Gender

Female Male

53%47%

Shopping preference

HypercityOther

DEMOGRAPHICS AND PREFERENCE

59%15%

22%

4%

Frequency of visit

Once in a weekOnce in a monthOnce in 3 months2-3 times a monthRarely

Maximum population visit store once in a month

No customer visit store weekly because the store is not located near their residence

TYPES OF CLOTHES CUSTOMERS PREFER BUYING

Casuals40%

Formals52%

Party-wear8%

Shopping Pref-erence

Customers prefer shopping formal wear

52% customers prefer shopping Formal wear

40% customers prefer Casuals andOnly 8% prefer Party wear

As per the graph, women prefer Casuals and Formals.

Men prefer buying Formals

As customers visit store at leastOnce in a month, they preferBuying Casuals and formals.

As per the graph, launching Women’s formal wear will be beneficial

There is good scope for Men’s formal wear also.

Party wear has less demand

PREFERENCE OF BUYING DIFFERENT TYPES OF APPARELS

46%42%

12%Women

CasualsFormalsParty-wear

27%

73%

Men

CasualsFormalsParty-wear

46%

38%

16%

Are you satisfied with the variety of apparels offered by

us?

Satisfied Quite satisfiedNot satisfied

57%

43%

Are you satisfied with the brands available in Hy-

percity?

Satisfied Not satisfied

Brand and variety satisfaction

Price13%

Quality3%

Product range47%

Other37%

13% customers think price can be the reason for not buying apparels from HyperCITY.

3% say its quality

47% people say Product range can be the reason for people not buying apparels from HyperCITY.

As people are satisfied with HyperCITYThey don’t find any reason for not buying from HyperCITY. These people come under others category

Some people have problem with size in some brands (other category)

REASON FOR NOT BUYING APPARELS FROM HYPERCITY

Ranks given for HyperCITY Fashion category

Quality Pri

ceBra

nds

Store

envt

Offers

Servi

ce

shopp

ing ex

pTre

nd0

20

40

60

80

100

120

76 75

42

92 97

74

95

64

24 25

58

8 3

26

5

36

Good Poor

Hypercity74%

Max23%

More3%

Quality

Hypercity38%

Reliance Trend18%

Star Bazar

6%

FBB6%

Max29%

More3%

Price

Comparative Analysis

HyperCITY is better than others in case of Quality

In pricing also it got highest ranking as there is 365 days sale

Hypercity31%

Reliance Trend34%

Max34%

Brands

Hypercity67%

Re-liance Trend15%

Star Bazar

5%

Max10%

More3%

Store environment

Comparative Analysis

Customers are satisfied with the brands offered by Reliance Trend followed by MaxHyperCITY provide international shopping experience

Hypercity100%

OffersHy-

percity

42%

Reliance Trend25%

Star Bazar

6%

Max28%

Service

Comparative Analysis

•No other store gives such offers•Customer Service Desk staff is approachable and always solve queries and problems of customers.

Hypercity52%

Reliance Trend17%

Star Bazar3%

FBB3%

Max22%

More2%

Shopping experience

Hypercity48%

Reliance Trend18%

Max30%

More3%

Trend

Comparative Analysis

PRACTICES FOLLOWED IN

INTERNATIONAL SUPERMARKETTesco Case study

TESCO NON-FOOD CASE

• For the fiscal year ended February 2007, Tesco UK announced non-food sales of £7.6 billion, an increase of 11.6% on the previous year, growth which was significantly faster than its core food sales.

• Non-food sales, excluding petrol, accounted for 25% of Tesco’s sales and was growing as a proportion of total sales yearly.

• According to Verdict Research, Tesco’s market share in clothing has increased from 1.1% in 1999, to 2.3% in 2005.

• For the fiscal year ended February 2007, the company achieved 16% sales growth through its clothing, and according to Verdict Research, clothing now accounts for 3% of Tesco’s sales.

Source: Tesco annual reports; various press articles; Coriolis analysis

PRIVATE LABEL ARCHITECTURE

Super Premium category

National brand level

Low-Value added

Suggestions related to Product Range

• Including brand like Park avenue

• People can be an option under Rs. 1000• Another option can be offering variety of styles in existing brands.• E.g., wide variety of checks, lines, color options

• Wide range in polo-t-shirts

• Good but limited collection of traditional wear

• Cotton kurtas for festival season

Men’s Wear

People Collection

Women’s wear

Introducing brands like Woffice wear kurtis and tunics/blouses

Introducing private label for formal wear with limited collection

Product range- shirts, blouses, tunics, trousersPrice range- 700- 1500Promoting women’s formal wear brand to aware customersAttractive display and VM (entire look)

Pantaloons- AnnabelOffice wear Apparels & footwear

CONSOLIDATED SUGGESTIONS

• Introducing brands and variety in value clothing as well as premium clothing.

• Launching private label of women’s formal wear brand

• Better lighting condition to create better ambience.

Forever 21 store

Project IIMerchandise Development Plan

Accessory category

Problems in Jewellery category• Poor quality• High price range• Color fades away• Silver gets dark in 2 days of display• Not enough fixtures for display• No hard or soft tag on products• Poor lighting condition• It is necessary to keep assistant to avoid shop lifting• No display guidance• Less space and more stock

Merchandise offered by other stores in the market

COMPARISON OF QUALITY AND PRICE

Forever 21 HyperCITY

SUGGESTIONS FOR PRODUCT RANGE

Price range for junk jewelleryStuds- 200-500Necklace- 500-900Bracelets- 400-700Finger ring- 200-500

SUGGESTIONS FOR DISPLAYFree standing pegboard

Maximum Merchandise on display

Consumes less space

Well planned assortment

Wall-mounted display

Display of bags or jewellery on wall fixtures

Visible from distance

Best for structured bagsNeeds proper lighting conditionWhite background

Perfect if same types of bags are avilableMaximum space utilization

SUGGESTIONS FOR DISPLAY

Price range- 200- 1200

•Embellishments used•Quality of metal•Finishing•Colors•Spacious

HANDBAGS

•Though totes are in trend, it is offered by Luxury and premium brands•Other brands offer bags with closed tops

SUGGESTION OF LAYOUT PLAN

Layout of Wallmart

SUGGESTION ABOUT DISPLAY PLANOutsourcing Retail

Solution• Small area designed

based on theme• Theme based fixtures,

colors• Hiring a designer-

Implementing better plan

Modification in existing display

• Modification keeping in mind customer’s flow in the store

• New fixtures with lighting

• Cost effective

Cosmetics

Jewellery

Hand

bags

CSD

Cash

Cou

nter

s MALAD STORE LAYOUT-EXISTINGJe

welle

ry

Cosmetics

CSD

Cash

Cou

nter

s

Jewellery

Jewellery

MALAD STORE LAYOUT- PROPOSED

High traffic area

Disp

lay

wal

l for

jew

elle

ryD

isplay wall for handbags

Rotating Display

Rotating Display

Rotating Display

Rotating Display

Rotating Display

Rotating Display

Rotating Display

Hot products

display desk

Display desk for jewellery

MALAD STORE LAYOUT- ACCESSORY SECTION

View From Customer Service Desk

View From Apparel category

VIVIANA MALL STORE LAYOUT

Jewellery section

Entrance

SUGGESTIONS• Price range for jewellery should be 200 Rs. To

1000 Rs.• As per the survey, Party wear doesn’t have

demand so party wear jewelley might have less demand, unless offered at affordable price point

• Regular wear jewellery has demand• improve quality and style• Better incentives for sales executives• Guidance for display and stock replenishment

Strategic Implementation of suggestions

• Planning to remove Gitanjali brand• Display tips are implemented• Working on the quality of jewellery• Removing existing stock of handbags and launching

private label• Making changes in pricing strategy

Conclusion• Customers are not brand conscious while purchasing

handbags.• Though handbags and jewellery are located in high

traffic area it is not selling good.• Highlighted display and store design can attract more

customers.• Selling high priced jewellery is challenge as customers

prefer buying imitation jewellery at lower price rather than pure silver, brass jewellery.

• Launching private labels for jewellery and handbags can be a good option for selling merchandise at lower price.

Thank You