Location of the store:

Factors considered for choosing the location of the store: -

1. Population Density
2. Presence of other businesses in that locality
3. Hotels, Cinema, Local Markets, and shopping mall within the vicinity
4. Traffic Flow Pattern
5. Number of competitors near the location
We have decided to launch our innerwear store in the following districts of Amritsar

 Chandigarh
 Ludhiana
 Amritsar
 Jalandhar
 Patiala
 Bathinda
 Mohali
 Batala
 Pathankot
 Moga
 Abohar
 Malerkotla
  Khanna
 Phagwara
 Kapurthala
 Rajpura
 Muktsar

After careful observation, we decided to select 16 cities and 1 Union Territory (Chandigarh)
in the state of Punjab for the establishment of the Retail business of our brand. We have
planned the phase-wise networking such that the cities with higher market size and lucrative
catchment areas are given priority.
The reason for choosing these locations is as follows:
• Closeness to the hotels, cinemas, malls, and local marketplaces
• Be near the competitors (to leverage their customer base)
• Be on the main road (to capture the traffic)
• Trading draw should cover the maximum possible population
Network Planning
The forecasted number of stores to be opened in the next 5 years is summarised in the table
below.

The pilot cities will be Amritsar, Chandigarh, Ludhiana, and Jalandhar.

The population of the cities, along with the affluence of the population played a role in the
selection of the cities.
 Evaluation of Franchising Option
How franchising will help us:

• Scale up operation and expand

• Cost sharing-expenditures required to expand
• Cultural Adeptness-Franchising it to local people will help them understand both, customer
and market, better. They’ll have a better idea of store locations
• Brand recognition through established customer bases built

We’ll roll out franchising contracts from the 2nd Year.

Store Formats (Planned):

S.No Model Category Class Store Size Number of
Stores

1 COCO Multi Brand MBO (Multi 1200 Sq. Ft - 125

Retail Brand Outlet) 1500Sq Ft

2 COFO Factory MBO (Multi 4000 Sq. Ft 25

Outlet Brand Outlet)

Multi Brand Retail-based small-medium format will be Company Owned Company operated as
these store formats will require huge investments. Also, these will be experience stores which
will help us give a good experience to our customers and further establish the brand image for
increasing interest in buying franchises.
Large Retail based format (based on Factory Outlets) will require much larger investments but
can be given to Franchises to operate it after 2 years. Being established brands already, a lot of
franchises will invest such large amounts. This will be in COFO format.

Minimum fee/Royalties:
A minimum fee of INR 30000 per month will be charged, or 60% of revenue will be charged for
renting our brand name and operation strategies (Whichever is maximum)

Geography:
The location of the business will be determined by both the franchisor and the franchisee.
Under no circumstances does a franchisee have the right to utilize the brand identification in any
other store or business, or in any other location (other than mentioned in the contract)

Validity:
The franchise agreement will be valid for ten years from the date of the store's opening. Based on
both franchisor and franchisee agreements, the duration validity of this contract may change.

Nullification of Contract:
If a franchisee is determined to have violated any of the contract's terms and conditions, the
Costs:

Identifying the categories to be stocked – Competitor

analysis to understand the movement of products and
SKUs in a given area:

Traditionally, innerwear was an unorganized market in India. It still is, to a certain extent,
dominated by a large number of small-scale players making ~60-65 percent of the market
fragmented and unorganized. However, the market segment is evolving gradually and
moving towards organized retail. “The innerwear industry is highly fragmented, with too
many players in every price segment. The category is still largely unorganized, with
organized players just forming one-third of the market. There is an influx of new entrants
with international brands and online labels, which has helped increase the share of the
organized business, and this will grow at a faster pace than before,” says Smita Murarka,
Head – Of Marketing, amanté.
But the market as well as the consumer is changing at a rapid pace. Today, Indian consumers
are fast gravitating towards innerwear that is not just functional but has a style quotient that
reflects their individuality. Initially, it was a damp market marred by a lack of both products
and product awareness. But new age customer’s exhibit evolved characteristics that have led
to bolstered consumption patterns. With modern trends and product innovations, innerwear
has turned out to be an essential fashion need. “One of the main reasons for the growth of the
Indian innerwear market is because of the increasing size of the organized market and the
declining share of the unorganized market. This factor has also been instrumental in paving
way for the various independent brands that are emerging as the key players in the market,”
says Saket Todi, Senior Vice President, Lux Industries.

Competitor Analysis

The innerwear industry in India is a highly competitive industry, it consists of major brands
like Van Heusen, Jockey, Calvin Klein, etc. as well as several local brands. Local brands like
Rupa, Lux, and Dollar also own a large market share in the market. The competition among
these brands is very intense as all of them enjoy a large market share.
The innerwear market in India is a lucrative segment poised for high growth. It is also
untapped as compared to other fashion segments.
“We have a beautiful future when it comes to this segment. The market was unorganized
traditionally but is fast getting structured. Once the share of modern retail increases, we
believe we have a bright future ahead,” says Richa Kalra.
Moreover, with the change in consumption patterns and the youth’s readiness to spend more
in this category, lifestyle retailers are showing more interest. Today, reputed large format
stores like Central, Shopper’s Stop, et all., all have dedicated spaces for this category.
Given the promise that this segment holds, the competition is rife not only with the global
brands but also among all Indian brands, all for the better. With so many brands around, there
is constant pressure to perform better as customers will pick only the best product in the
market. “Introduction of new products with unique designs and cuts from various brands are
increasing the competition in the market. With so many new entries in the market, it is
definite that the future of innerwear seems quite prosperous and thriving,” says Saket Todi.
Having said this, brands and retailers who are going to spend a larger share of revenue in
making their backend strong to understand customer convenience, needs, and the current
fashion and market trends, will champion the growth story in the years to come.