GROUP 1

GAP

INTRODUCTION

The Indian Apparel Industry has an overwhelming presence in the economic life of the country. It is one of the earliest industries to come into existence in the country. The sector has a unique position as a self-reliant industry, from the production of raw materials to the delivery of end products, with considerable value-addition at every stage of processing Apart from providing one of the basic necessities of life, the apparel industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. Currently, it contributes about 14 percent to industrial production, 4 percent to the GDP, and 17 percent to the country’s export earnings. It provides direct employment to over 35 million people.

Market Share

The Indian apparel industry is estimated to be worth Rs. 3,270 billion in 2011-12 and is expected to grow at a compounded annual growth rate of 8.7 per cent till 2016 and 11% till 2020. The growth would primarily be driven by the surge in demand for readymade apparels in semi-urban areas, rising income levels and youth population and increasing preference for branded apparel. The above figure includes export and domestic use both.Export is around: 33%Domestic usage: 67%• Domestic Apparel retail market was worth Rs 220000 cr in 2012 in which modern retail contribute around 33%. The CAGR was 12.3% over the last 5 years. And the growth in domestic apparel will be around 10-12% for next 3 years.Taking average of 10 and 12% we are assuming the domestic apparel will grow around 11% for the next 3 years.

Market Structure

Projections for next 3 yearsThe growth in the apparel segment will be primarily driven by the growth in Modern retail. Currently comprising 33% of the total market, the modern retail share is poised to grow sharply over the next 5years. The increased presence of retail formats across hypermarkets, specialty retail formats, cash & carry as well as e-commerce shall drive growth of modern retail An increasing number of international brands across formats shall foray into India to leverage the potential. Keen competition is driving international brands to adopt ‘made for India’ models leading to higher acceptance and thus increased share can be expected over the next five years The Indian apparel market has demonstrated resilience and growth in an environment characterized by slow economic growth. The domestic apparel market, which was worth INR 220,000 crore as of 2012, is expected to grow at a compound average growth rate (CAGR) of 11% over the next decade. Further, the recent omission of excise duty on branded apparel has provided an impetus to retailers in terms of the overall market sentiment

Mens and Womens wearWith a market size of INR 88,000 crore (USD 16 billion) in 2012, menswear is the largest segment in India’s apparel market, accounting for 40% of the overall market. In comparison, women’s wear makes up 35%, while kids wear comprises 25%, of the market.The menswear market is expected to grow at a CAGR of 9% over the next five years to reach INR 135,398 crore (USD 24 billion) by 2017

The INR 77,700 crore (USD 14.4 billion) worth women’s wear markets contribute 35% of the total apparel market of India. The growth of this market is more rapid than the menswear market. With the relatively lower penetration of brands, and the growing disposable income of modern women, this segment has become the focus of many Indian and international brands, growing at 11% annually and reaching 129748 cr INR

The INR 55,000 crore (USD 14.4 billion) worth kid’s wear markets contribute 25% of the total apparel market of India. growing at 13.5% annually and reaching 103595 cr INR.

Customer servicesCustomer ServicesGAP should enter the market an offering which could be differentiated from the current players to meet the latent needs of the consumers in order to be really successful in this market.

Most of the current stores also lack trained staff which could give good feedback and properly demonstrate the merchandise to their customers.

GAP should concentrate on creating a unique experience in apparel retailing by providing well dressed and well trained staff.

Uniqueness in Format and Products

GAP should focus on providing a unique experience to its consumers. Customers should get the latest designs, widest range and all accessories when they go to the store for their need.

The store should provide wide display of items, allow the “Try and buy” experience for customers and ensure that trained staff is always there to help customers to make their right choice. Since Gap is catering to different segments, each segment staff should be trained separately.

The ambience of the store will play a key role in attracting the target customers

Uniqueness through:-

· Trained staff

· Good and distinct ambiance

· Latest designs and fashion

Uniqueness in Service

GAP should come in with a strong intent to help consumers to offer latest and wide variety of products. Gap should also work on having skilled and trained staff for each category. This would let the customers to move in GAP stores to purchase highly priced products with assurance that they will be helped in the best way in order to try them and return if they not liked it. This could help GAP to be the highest average selling price retailer for most high-end apparel. This philosophy of helping the customers in making their purchases attracts and creates the comfort for buyers to choose high end apparel.

· Different personal for different segment.· Well trained and dressed employees.· Having return policy for clothes.· Kids apparel section unlike Zara.· Loyalty cards for availing exclusive discounts.· Free parking for any buyer, reducing the amount from the bill.

Store Design

The store should be in sync with the company’s image and should be consistent. It would lead to positive image on customer satisfaction and loyalty which will in turn help the company to build a favourable image among the customers. Also the store should be located in an area with ample space to park the cars to increase customer convenience.

The store should be divided in Section of type of apparel, like different section for jeans, handled by different personal.The section for men, women and kids should be little away, if possible on different floors, like UCB does.Staircase should have merchandising displays. Lift would be preferred if the store is multi-storey.

Customer care centre

Customer should also get information about the release date of some new fashion line up and discounts online or through messages.

Feedbacks can be given to these CCC, and strict against action will be taken against any complaint.All the merchandising details should be present on official website, so people can visit new trends and designs

Introduction of promotional offers:

GAP should continue providing best deals on different categories to attract more and more of customers by introducing offers like seasonal sale and discounts for frequent buyers. This will help in bringing consumers to the shop and hence increase the overall footfalls.

Emphasis on after sales services for its private labels:

· Free altering of clothes bought from the stores.· Return of clothes (size or colour change).

Store AtmosphericsStore Atmospherics GAP ExperienceGAP offers customers a unique, no-pressure shopping experience with a variety displays and a broad selection of branded clothes and accessories.Offering a ‘try and buy’ atmosphere, GAP stores are open with wide aisles, making it fun and easy for customers to see, touch and try out what they want before heading to the checkout. Should they want a little advice, GAP's sales person are readily available and focused on helping customers find the products and services that best fit their needs and style. The stores offer customers a unique consumer shopping ambience that focuses on fun, elegance, style and no-pressure browsing.GAP believes in both company and franchise stores model, but it should focus on company owned because of maintaining same standard across stores.

Recommendations for the inside of the store:

Interiors● Different area for different category should be preferred, if possible different floor for each category like men’s floor, women’s floor and

kid’s floor.● Interiors should be elegant and classy matching the class of people which they want to target.● For kids section the interiors should be colourful and should have a small playing area guided by some employee. Bright colours should

be used. Place some toys in that area.● For women section colours like purple or yellow should be used.● For men section colours like white and grey should be used.● Sitting area should be there in each floor

Placements

● Perfumes should be placed on the ground floor, because of high range products.● Each category Accessories should also be placed according to the place allotted for apparel.

Signage

● Interior signage should be clear with arrows directing customers to find their choice of products easily.● Signage’s of size and sections should also be mentioned.● Also, signs need to be simple and quickly comprehensible.

Lighting

● Lighting can play a major role in furnishing and appliances as it adds to attraction, different shades gives shines to colours of apparels.● White lights should be preferred; they can be placed in each section so the original colour of the apparel is visible.● Good white lighting should also be there in trial rooms.

Music

● Music should be according to the pace of the customer; generally the customer stops and sees clothes, so a soft instrumental music will do. The music will put them in active mood.

● Music near kids section should be fun.Exteriors

● Parking space should be available nearby store.Glass walls would be preferred, for display of clothes and showing new styles and trends, which will attract target audience

Thank you