UK Brands Study:

Brand Strategy H&M Zara Top Shop River Island

◦Core: 16-30 year old women
◦Fashion savvy and seeks value at acceptable quality
◦Predominently shopping for themselves
Target Group
◦Core : 18-40 yrs
◦Fashion savvy and seeks value at acceptable quality
but has the legroom to impulse buy
◦Could be mature & shop across the breadth for
partner/ children
◦Core: 16-30 year old
◦Fashion savvy and seeks great quality
◦Predominently shopping for themselves
◦Core: 18 to 28 yrs
◦Low income, works part time & student loan /
recently graduated & works full time
◦Affordable clothes which carry latest fashion trends
◦Seek individuality
◦Look for depth & breadth of apparel options

◦Offer a breadth of basics and fashioable products ◦Closely imitate runway designs ◦Individualized styles that are in trend & are edgy and ◦A fashion forward, inspired by runways with
◦Tie up with celebs to launch premium ranges ◦Low turnaround time to make runways styles avaible experimental glamourous RI adoptions
Product rapidly in the stores ◦Jeans is a popular category ◦High on quality and offer relative exclusivity

◦ASP: £25 ◦ASP: £35 ◦ASP: £35 ◦Affordably priced, ASP: £27
◦Range:£2.5 to £270 ◦Range:£5 to £185 ◦Healthy mix across price categories, ~33% product ◦Popular for their 1/2 price sales, lso correct prices
Pricing ◦~50% of prodcuts below £15 ◦~50% of prodcuts b/w £15 to £30 below £15 & ~33% b/w £15 to £30 based on sales data
◦Average pricing relative to FF retailers ◦Premium pricing relative to FF retailers ◦Premium pricing rel. to FF retailers

◦Acceptable quality for a 2-3 season wear ◦Acceptable quality for a 2-3 season wear ◦Acceptable quality for a 2-3 season wear ◦Acceptable quality for a 2-3 season wear
Quality ◦Average quality of product ◦Average quality of product ◦Average quality of product ◦Average quality of product

Fashion Above Average High High High

Quotient
Loyalty ◦~55% women shoppers shop at least once a month ◦~45% women shoppers shop at least once a month ◦~47% women shoppers shop at least once a month ◦~37% women shoppers shop at least once a month

Brand Strategy Primark Boohoo ASOS New Look

◦Core: Gen Y, 16 to 24 yrs ◦Core: 20-29 yrs ◦Core: 20-29 yrs ◦Core: 16-35 yrs
◦Low disposable income/ financially dependent & money ◦Low disposable income & money savvy ◦Low disposable income & money savvy ◦Low disposable income & money savvy
savvy ◦Affordable, rapid fashion retailer ◦Affordable clothes & value high level of newness ◦Low disposable income & money savvy
◦Affordable clothes which are trendy/ up to date
Target Group
◦Not concerned over disposable fashion/ buy for instant
consumption
◦want Large array of products availability at one place,
value ease of discovery
◦Large assortment of products across categories in most ◦Key trends at affordable prices ◦Broad and expansive range of designers at a higher ◦Key trends at affordable prices
stores(Apparel, Beauty/ Grooming, Footwear, Home ◦Focus in on introducing newness price
Product Décor)

◦Cost leaders, compete aggressively on price, ASP £17 ◦ASP: £22 ◦ASP: £25 ◦ASP: £22
◦ "oh my god I can buy all this and be still left with ◦98% products below £25 ◦Healthy mix across price categories, ~33% product ◦Affordable pricing
Pricing money" experience ◦Affordable pricing below £15 & ~33% b/w £15 to £30
◦Affordable pricing

◦Acceptable quality for a season wear ◦Acceptable quality for a season wear ◦Acceptable quality for a 2-3 season wear ◦Acceptable quality for a 2-3 season wear
Quality ◦Fast turnover of product ◦Fast turnover of product ◦Average quality of product ◦Average quality of product
◦Relatively low on quality ◦Relatively low on quality
Fashion Above Average High High High
Quotient
Loyalty ◦~65% women shoppers shop at least once a month ◦~48% women shoppers shop at least once a month ◦~55% women shoppers shop at least once a month ◦~53% women shoppers shop at least once a month

Price architecture:
Newness:

 From Jan to mid-Oct’18, Boohoo released new products daily with an avg. of 150 new products per launch
o The peak was in April, almost double the amount in March – likely due to the Summer season
 Zara vs Boohoo had on avg. lower no. of launches throughout the whole year.
o This may be by design, to create demand – a combination of newness and scarcity
o Constantly replenishing new items, but in lower quantities creates a sense of exclusivity.
o Zara also needs a seamless online-to-offline strategy must be in place, as both platforms must be well-stocked, together

*Asos & Boohoo are online players

Indian Women’s Wear (Ethnic & Western Wear)

Women’s Western Wear in India

 Women’s apparel in India is an Rs. 1 trillion market

o Growing faster than men’s
o Significant shift towards branded apparel

 Women’s apparel is emerging as the dominant segment

o Mature markets (USA, UK), where the ratio of women’s wear to
men’s wear is approximately 2:1

 Women’s apparel currently constitutes a low 37% share of the overall apparel market, valued at $19B
o However, it is expected to outpace men’s wear and occupy a majority 41% market share by 2025, growing at a faster rate
than the overall apparel market at a CAGR of 10%.

 A shift from Ready-To-Stitch clothing to Ready-To-Wear along with the entry of national & global players
o The branded women’s apparel is set to grow to ~6x in the next decade (reference 2015)

 There is a significant shift away from traditional sarees towards ethnic wear and western wear.
o Ethnic wear market has been growing at 11%
o Western wear is set to grow at 17%, with some key players likely to grow >50% CAGR
o Western wear & Inner wear are the fastest growing subsegments
 Tier 1 & Tier 2 cities catching up in terms of market share
o Currently ~70% of the market is typically concentrated in the top 10 cities
o Increasing presence of the digital channel along with an increasing penetration of brands and stores in Tier 1/ 2 cities
o Tier1 /2 cities typically have more value conscious buyers & significant headroom exists as pace of rural migration increases

 Shift in women’s buying behavior

o Increasing number of occasions:
 Size of women’s wardrobe has expanded ~2x in volume terms in the last 5-6 years with more occasions adding to
increasing volume of clothes being purchased
o Artificial obsolescence:
 Increase in fashion consciousness is leading to a faster reduction in the “utility value” of clothes and an increasing
artificial obsolescence
o Aspirational buying:
 Women today are empowered with the ability of higher discretionary spends and a fast-changing society leading
to aspirational buying
o Impulsive buying:
 Increasing attractiveness from the rising concept of Visual Merchandising coupled with tempting discounts and
loyalty awards is contributing towards this change in behavior
o Increasing acceptance of digital channel:
 The paucity of time and a lower penetration of modern retail outside top tier cities is also resulting into the
growing of the digital channel
o Influence of social media:
 Rising influence of western media and a digital peer pressure created from the social media savvy generation is
influencing fashion consciousness

Rise in demand for brands with higher fashion content

 Women have become more fashion aware &conscious and hence the rise in demand more variety and designs.
 There has been a surge in Brand loyalty, where style and design are among the top three considerations for
consumers along with Quality & Fit