Executive Summary
Opportunity Assessment
• India’s fashion market size was $53 billion in 2017, the industry is poised
to cross $85 billion by the end of 2022
• The fashion market is growing at a steady pace, to foster this growth
companies need to increase willingness among consumers through
awareness programs and focus marketing campaigns which will also help
them convert existing potential consumers into actual users of the
products
Sustainable Operations
• The company will focus on relevant ESG practices
in supply chain logistics
• Reduction in emissions from supplier factories
• Use of biodegradable packing or recycled paper
packaging
• Using sustainable fabrics for manufacturing of
products
Target Strategy
• Initially we will target only upper and middle class
consumers in Tier-1 cities as they have higher
disposable income as well as higher awareness
• In 2nd year, the company will start operating in
Tier-2 cities
• In order to convert potential customers and retain
existing ones the company will communicate the
story behind the product via online channel and
offline experience stores to explain the impact of
sustainability and its effect on rural artisans
Technology
• The company will use RFID technology and digital
alert systems for inventory tracking and assessing
inventory requirements on time
• Smart packaging machines will be utilised to
reduced time requirement and packaging wide
array of products quickly
• Predictive data analytics will help company assess
the demand for particular products and
synchronize the manufacturing & inventory
management process as per the demand
requirements
 Industry Overview and Company’s Objectives, Vision, Goals

Industry Overview Company’s profile

 India, with its cultural diversity presents a challenge and an opportunity for the
fashion retail industry
 Valued at about $53 billion in 2017, the industry is poised to cross $85 billion
by the end of 2022
 India is expected to grow at about 7.5-8%, with steep rise in per capita income
 Increasing income levels and the young population provides a vast opportunity
for the fashion industry, especially in the domain of sustainable fashion
 Sustainable fashion is a carbon-neutral fashion sector founded on equity,
social justice, animal welfare, and ecological integrity
 The fashion retail industry is expected to grow at 18.83% CAGR from 2022-
2026
 One of the largest fashion retail giants operating in US
 Domain: Sustainable fashion
 Objective: Entry in the Indian market
 Goal: Sustainability throughout their ecosystem(operations,
products/services, customer experience) and overcome customer
resistance and become profitable within 3 years.
 Vision: Become the symbol of sustainable fashion in India

Trends for past 10 years

Fashion category split into branded and unbranded Fashion category split into men, women, and kids Fashion category split into retail type
Branded Unbranded Men Women Kids Traditional Modern E-Commerce
2012 25% 75% 2012 44% 37% 19% 2012 80% 20% <1%
2017 37% 63% 2017 42% 38% 20% 2017 70% 24% 6%
2022 50% 50% 2022 39% 39% 22% 2022 52% 33% 15%
 Opportunity Assessment
Total Addressable Market

Population of
India=140
million
Assumption for calculating TAM
 The target customer segment is the upper and middle class
population living in Tier 1 cities.
 The average price of Apparels for Men, Women and Children are Tier 1(40%)=56 Tier 2(10%)=14 Tier 3(10%)=14 Other(40%)=56
million million million million
₹2500, ₹2000 and ₹1500 respectively.

Lower Middle Higher

Income(20%)= Income(50%)= Income(30%)=
11.2 million 28 million 16.8 million
Market Growth
 The eco-friendly clothing market is growing at a steady pace, even
though the industry is at a nascent stage.
 Two-third of buyers are willing to spend more on eco-friendly clothes. Annual
 About 83% of people consider sustainability while buying fashion expected demand in units of production
products. Men(35%) Women(35%) Children(30%)

Sub-Categories
 About 66% people want to pay more for sustainable fashion
accessories. Apparels 5 8 10
 In present time, material fit, price and design takes a precedence
over a choice of sustainable manufacturing. Accessories 2 6 0
 Thus, to foster growth in this segment, willingness among people to
shift to sustainable fashion must be increased through awareness
programs and focused marketing campaigns. TAM=
35% of 44.8m x (5 x ₹2500+ 2 x ₹600)+ 35% of 44.8m x (8 x ₹2000+ 6 x ₹800) +
30% of 44.8m x (10 x ₹1500)= ₹742560 million= ₹742.5 billion ($ 9.65 billion)
 Opportunity Assessment
Bottle & Co. One Less
They create clothing for both men and women using One Less makes clothing for men and women using
fibers that are taken from recycled goods (like plastic organic cotton and bamboo fabric. The Pune-based
bottles). The clothing line from the Delhi-based company’s product line includes t-shirts, cropped t-shirts,
company includes, among other things, T-shirts shorts, sweatshirts, sweatpants, and other fashion
manufactured from 12 recycled plastic bottles, accessories. One Less is also part of a growing list of
Joggers from 20 bottles, and Hoppers from both Indian brands that plant a tree for every purchase they
recycled plastic and cotton. make

PECKD
One of the few companies in India producing
entirely biodegradable clothing is PECKD. The
Gurgaon-based business employs fabrics infused
with fruit and vegetable extracts, nuts for the
buttons, and even compostable yarn for the
thread.
Competitive Landscape
Ecentric
• The current competitive landscape depicts that Manufacturing apparel using Hemp, which is a
there are very less competitors for the company cannabis plant and has 4 times lesser environmental
in India. impact than cotton. Since India has a limited supply
of hemp, they export hemp from Turkey and weave
• Competitors operate in a very niche segment and
and spin the fabric yarn in India itself.
none is a very well recognized among masses.
• The main advantage of StyleX over its competitors
is its ability to scale up its production for masses.
• Thus it is a positive sign for the company to enter
in the Indian market

Risks & Challenges

• Customers may be reluctant to support our entry into the Indian market for at least the first six months while we build our brand.
• Challenges in tackling issues like waste accumulation and management, carbon emissions, and effect on ocean ecosystems.
• Increasing cost of raw materials which are environment friendly
• Sustainable products are generally priced a bit higher than normal products which reduce the consumer base
• concept development for goods making use of eco-friendly materials is severely limited by dimensions, types, colors, and shapes of available material stock
• Lack of consumer awareness can impact the overall sales
• integrating logistics and information systems, setting up rules for exchanging knowledge, and establishing collaborative marketing strategies in different regional contexts can be a
tedious job
 Go-to-Market Strategy
Target Market
• For initial 1 year, target market would be Upper and middle class population in the Tier 1 cities.
st
• 2nd year onwards, company must gradually start operating in Tier 2 cities
Defining Sustainability
• Sustainability in manufacturing: StyleX already has an experience in manufacturing sustainable
products in US. It has already arranged for the raw materials and selected the location for
manufacturing facilities.
• Sustainability in operations: StyleX needs to focus on supply chain and logistics which reduces
carbon emission. It should also employ labours from under-privileged backgrounds helping them
to elevate in the society.
• Sustainability in customer experience: Consumer engagement, whether online or offline should
help the company to communicate their core vision.
Acquisition Strategy
• For first 6 months, the company must focus on aggressive marketing and develop a
communication idea with which consumers could relate to and get motivated to shift to
sustainable fashion.
• Company can offer lucrative offers and lower prices to skim the market in first 6 months.
• Company must ideate on innovative engagement with customers so as to position themselves as
the ambassador of the sustainable fashion industry.
Retention
• Making consumer feel morally obligated towards environment and making them habitual of the
sustainable clothing through differentiated products with designs catering to the vast diversity of
the population.
Sustainable Operations
• StyleX will be focusing on the ESGs relevant in the Supply
chain logistics
• Reducing Packaging- Using recycled paper packaging with use
of honeycomb sheets to secure fragile items
• End Consumer Recycling- All the packaging will be bio-
degradable
• Changing sourcing standards- Procurement of raw material
will be done by leveraging the local industries who will be
delivering the raw material at a cheaper price and that will
also boost the local economy
• Reducing emission in the Supply Chain- Factories will be setup
in the close proximity with the suppliers and using D2C
channel will help in preventing unnecessary movement of raw
materials as well as the finished goods
• Diversity and inclusiveness- StyleX will be working with the
artisans of different states and designing and procuring raw
material with these artisans
Sustainability in Customer Experience
Company will have two major modes of engagement with
customers:
1) Offline: Company will setup experience stores in
metropolitan cities where customers can visit and learn the
journey of “thread to dress”, and have a glimpse of the
sustainable operations of the company.
2) Online: Customers can buy the products online and then
learn the story behind the making of that product, thus
enticing in him/her the motivation to comeback and buy
more
 Go-to-Market Strategy
Infusion of technology in Operations
• RFID tech will be used to track the products from the factories to
warehouses
• Digital alerting systems to track potential inventory requirement and
maintaining adequate supplies for the same in accordance to the
demand, measured using the Predictive Data Analytics
• Supply chain would be dynamic with the use of analytics in terms of
calculating the demand and maintaining the production and inventory
levels with the evolving trends
• Use of automated smart packaging machines can help in optimising the
time required for packaging and will also be able to handle wider array
of products
• Style-x will have to train the workers with the different technologies in
order to utilise them in different verticals of the operations domain
In A Nutshell
The company should assess it’s financial requirement i.e. the working capital in
order to maintain the required reserves to meet the demand for the products. It
should also create a strong data security protocol to efficiently utilize its tracking
of orders and raw materials through RFID and also predict the demand based on
the current production
Company should also keep in mind the climate difference between the US and
India which can hamper the time required in production
Company will have to restructure with respect to the Indian laws and regulations
Mode of selling(first year)
• Setting up offline stores where customers could shop as well as have
the experience of the product in making i.e. the sustainable operations
• Partnership with existing e-commerce sites for launching products so
that customers could shop online
Marketing Strategy
• Objective of the campaign: To position the company as the face of the
sustainable fashion industry in India
• Developing a communication idea:
 The idea should bring the nostalgic reaction in the minds of the consumer
which would help them relate to the old times when people used to live in a
sustainable way.
 The company should employ rural women, giving them support and also
helping them to elevate in the society. The message must communicate the
idea of “help community by buying our product”.
 Communication Idea: Customer would be able to learn about the impact of
sustainability and its effect on the lives of the Rural Artisans.
 Communication Channel: The idea must be communicated through
experience stores where customers could be a part of the process and
understand how their buying will support the workers as well as the
environment at large. Same communication must be done on online platforms
where people could learn the story of behind the making of the product, thus
motivating them to become a regular customers.
 Appendix

• https://www.brand-experts.com/brand-expansion/india-fashion-retail/
• https://www.freedoniafocusreports.com/Content/Blog/2019/10/01/How-Do-Men--
Women-Shop-for-Clothes-Differently
• https://timesofindia.indiatimes.com/business/india-business/men-buy-more-clothe
s-online-than-women/articleshow/72894773.cms
• https://economictimes.indiatimes.com/spotlight/grow-your-business-the-mamaeart
h-story
• https://www.womenentrepreneurindia.com/editors-insights/when-will-we-bridge-t
he-eco-gender-gap-nwid-1803.html
• https://timesofindia.indiatimes.com/blogs/voices/indian-apparel-and-fashion-mark
et-in-next-five-years-industry-growth-challenges-and-opportunities/