National Institute of Fashion Technology Masters in Fashion Management 2013 – 2015

GRADUATION RESEARCH PROJECT

SPATIAL ANALYSIS TO IDENTIFY SUITABLE OFFLINE RETAIL PARTNER – A

CASE OF INDIAN ARTIZANSPROJECT UNDERTAKEN FOR PARTIAL FULFILLMENT OF GRADUATION RESEARCH

PROJECT AT INCRAFT FASHION VENTURES LTD.

PRESENTED BY:AVANI CHHAJLANI

HYD13MM11

Contents

• About the Company• Objective & Methodology• Data Analysis• Demographic Analysis• Spatial Analysis

• Findings & Suggestions• Conclusion• References

About The Company

InCraft Fashion Ventures

• Private Company incorporated on 18 October 2013 , at Pune• Engaged in distribution of

art and craft works

Ekam

Indian Artizans

Style Katha

• Hand crafted products• Dedicated artisans• Two pronged strategy

Indian ArtizansMaheshwaris

Chanderi

Gujarat Bandhani

Paithani

East silks

South silks

Chikankari

Indian Artizans

Ludhiana

Pune

Kolhapur

Nagpur

Guwahati

Raipur

RanchiMaheshwar

Chanderi

Kanchipuram

Hyderabad

Uppada

Rajkot

Patan

Bhuj

Sambalpur

Lucknow Benaras

Srinagar

Jaipur Kota

Kolkata

Places of Show

Places of Creation

Objective & Methodology

Objective and Methodology

Type of Research: Descriptive Ethnographic Research (Case and Field Research Design)Data Collection: Questionnaire & ObservationSampling: Convenience + Snowball sampling & sample size 408Data Analysis: Excel functions and tabulations. For spatial analysis ESRI software ArcMaps as well as eSpatial

To find the most feasible stores to tie up for stocking handcrafted ethnic apparel in the Mumbai City

Data Analysis

Demographic Analysis

Goregaon - Borivali11%

Andheri - Santacruz24%

Khar & Bandra18%

Dadar - Worli13%

Nepean Sea - Walkeshwar22%

Others13%

Area - wise distribution

10,000 - 25,00018%

25,000 - 40,00013%

40,000 - 55,00014%

55,000 - 70,00015%

70,000+38%

Prefer not to answer2%

Income bracket of the respondents

Spatial Analysis

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Consumer Clusters

High Income Clusters

Spatial Analysis

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Spatial AnalysisStores in Andheri - Santacruz • Dvar• Paaneri• Vyoum

Stores in Bandra – Khar• Atosa• Fuel: The store• Dhoop• Ogaan

Stores in South Mumbai• Benzer• Shray

Spatial Analysis

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Map customer presence

Filter customer concentrations

Scout for stores in areas

of concentration

Apply Huff’s Model on stores in vicinity

Huff’s Model - DvarDvar India

Dvar - 10th Road - Juhu, Mumbai (Opp HSBC Bank-HILLCREST

Building), Mumbai, Maharashtra, India 400049

Store Area: 4000 sftTime to travel : 15 minutes

Stores in vicinity: Vyoum and Paaneri

Huff’s Probability: 0.312

10 minutes

15 minutes

10 minutes

15 minutes

Huff’s Model - VyoumVyoum

Vyoum - A Wing, 2nd Floor, Ganga Niwas, V L Mehta Road,

Vile Parle West, Mumbai – 400056

Store Area: 2200 sftTime to travel : 20 minutesStores in vicinity: Dvar and

Paaneri

Huff’s Probability: 0.213

15 minutes

18 minutes

Huff’s Model - DhoopDhoop

Shop no 2, Mangal Kunj Bldg, B Wing, Junction of 32 and 36

Road, National College Lane, Off Linking Road, Bandra West, Mumbai, Maharashtra, India

400050

Store Area: 2000 sftTime to travel : 21 minutes

Stores in vicinity: Fuel, Ogaan and Atosa

Huff’s Probability: 0.131

10 minutes

18 minutes

15 minutes

Findings & Suggestions

FindingsIndian Artizans is a brand that caters to a niche market

and expansion into the city will work only through stores that work with the same target audience as the brand

There are pockets within the city that are frequent buyers of the category of merchandise that Indian

Artizans caters to, the model would work if the brand is successful in tapping and tying up with stores that are

located in those pockets

The travel time factor plays an important role in the attractiveness of the store since most of the stores are

not very well known and higher travel times play as deterrent to shoppers traveling to a location

Suggestions• Store tie – ups• Dvar India

• Multiple designers showcasing their first collections• Good traction for the brand and thus improve the visibility and

credibility• Vyoum

• Has exclusive collections from designers who excel in bridal wear• Also the major audience flocks for wedding season shopping

• Dhoop• Store at this point does not house apparel but has accessories• Get good traction starting out with apparel with a clientele of Dhoop

which is in line with the brands target audience

Cost Benefit AnalysisCost Benefit Analysis: Dvar - The multi designer store

Details Month 1 Month 2 Month 3 Month 4 Month 5

Rent 45000 45000 45000 45000 45000

Inventory Costs 540000 720000 630000 630000 720000

Other Costs 60000 60000 60000 60000 60000Total Cost 645000 825000 735000 735000 825000

Benefit 1275000 1700000 1500000 1500000 1700000

TRUE TRUE TRUE TRUE TRUEBenefit:Cost 1.98 2.06 2.04 2.04 2.06

Rent: Rs.300/sft Store space: 150 sft

Average production cost: Rs.9,000/piece

No. of pieces being supplied: 60 pieces/month

Miscellaneous costs: Rs. 60,000Total Cost: Rs. 6,45,000/month

Average selling price: Rs. 25,000Sell through percentage: 85

Conclusion & References

ConclusionFuture Scope Of Further Research• Studying the influence on consumer behaviour with geo coded

data

• A Factor Analytic Study of Consumers' Location Specific Values

• The effect of accessibility on retail rents

ReferencesBOOKS • Berman Evans, J. R. (2012). Retail Management: A Strategic Approach (12th

ed.) Prentice Hall. Retrieved May 5, 2015 JOURNAL REFERENCE • Bravo, R, Iversen, N, & Pina, J 2011, 'Expansion strategies for online brands

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• Larsson, J, & Öner, Ö 2014, 'Location and co-location in retail: a probabilistic approach using geo-coded data for metropolitan retail markets', Annals Of Regional Science, 52, 2, pp. 385-408, Business Source Complete, EBSCOhost, viewed 18 May 2015.

• Pope, J. A., Lane, W. R., & Stein, J. (2012). A Multiple-Attribute Decision Model forRetail Store Location. Southern Business Review, 37(2), 15-25.

References• Chow Hou, W., & Pearce, M. R. (1985). PATRONAGE BEHAVIOUR TOWARD

SHOPPING AREAS: A PROPOSED MODEL BASED ON HUFF'S MODEL OF RETAIL GRAVITATION. Advances In Consumer Research, 12(1), 592-597.

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• A. CAGRI TOLGA, F. T. (2013). A FUZZY MULTI-CRITERIA DECISION ANALYSIS. International Journal of Information Technology & Decision Making, 12(4), 729 - 755. Retrieved from http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=3e02d475-44df-4fd4-82abd32caa9eb7f0%40sessionmgr114&vid=0&hid=104t

ReferencesWEB • Cooan, H. (n.d.). What Makes a Good Retargeting Ad? Retrieved February 25,

2015, from www.advancedwebranking.com: http://www.advancedwebranking.com/blog/what-makes-a-good-retargetingad/

• Dramowicz, E. (n.d.). Retail Trade Area Analysis Using the Huff Model. Retrieved January 28, 2015, from http://www.directionsmag.com/: http://www.directionsmag.com/entry/retail-trade-area-analysis-using-the-huffmodel/123411

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SOFTWARE • ArcMap, E. (2013). ESRI 2013. ArcGIS Desktop. Redlands, CA. • eSpatial - Mapping Software. (2014). #265715.