Emerging consumer and shopper trends

Apparel & Fashion

Technopak Leadership Forum 3rd September 2010, Mumbai

Value, not just price

Value, not just price

Value emerging as a price plus proposition

Enhanced services perceived as differentiator

Family matters

Family matters
Shopping time together is defined as together family time

Time paucity & convenience need shall drive all under one roof formats Emergence of family malls, large apparel formats, hypermarkets

Big box

Big box
Attractive investment in Hypermarkets and Cash & Carry Growth opportunity for brands and private labels

Youth, unleash potential

Median age of 26 & 20 million youth (15 to 24 years) in top 100 cities Create brands around youth lifestyle, associations and usage Changing customer engagement tenets

Youth, unleash potential

Eve power, untapped

Eve power, untapped

Increasing career woman : Estimated 40 to 45 million across age of 20 to 40 years in Urban India over next 10 years

Create brands around evolving lifestyles & activities Opportunity in Work wear, active wear, leisure wear, intimate wear

Eve power, untapped

Increased self spending power & freedom Increasing spends on sub categories for women, kids & teens Opportunity to create business around sub categories : comfort work wear, smart ethnic, plus size , maternity wear, accessories

International brands

International brands
Large number of international fashion brands Redefining elements of VM, Store service, store design India centric business model Opportunities in sourcing & manufacturing

Fast & accessorized

Further segmentation of the fashion category

Youth and international brands redefining casual Fuelling fast fashion Complete Lifestyle and accessorized

Fast & accessorized

Small is big

Small is big
Not limited to top 20 to 25 cities
# Cities 102 59 325

Levis UCB Reebok Pantaloons Big Bazaar

26 58

Moment of truth

Moment of truth
Store experience shall define brand salience Merchandise management, assortment mix are hygiene elements Invest in customer insight & merchandise management tools

Summarized

 Clearly articulate the brand value proposition

Increasingly have to reckon with international brands as competition and adapt learnings from them

Exploit growth in youth, womens wear, kids wear and sub categories therein Leverage potential of growing hypermarkets and cash & carry

Indian brands

 Develop long term India centric business model Increasingly move supplier & manufacturing capabilities to India Leverage attractive growth categories and sub categories of womens wear, youth, kids, casual, accessories

International brands

Tap opportunity with growing private labels

Exploit business of large format family formats As international brands focus on long term India plans and move sourcing & capabilities to India, domestic companies shall benefit

Suppliers & manufacturers

Thank You !

Pakhie Saxena Principal Consultant Technopak Management Consultants

pakhie.saxena@technopak.com www.technopak.com