Strategy analysis of madura f&l

STRATEGY ANALYSIS OF MADURA FASHION & LIFESTYLE

Madura Fashion & Lifestyle a subsidy of Birla Nuvo Ltd, is one of the fashion

retailers in India. Indian apparel industry valued around 200000 crore in 2012 and it is

expected to increase over 400000 crore. Apparel and clothing contributes around 4% of

the indian households consumption every month. Due to increase of base in middle

class income group factors such as increase in purchasing power, spending mentality,

craze towards foreign brands showed limelight on apparel retailing industry. The retail

sector in India accounts for 22 per cent of the country's gross domestic product (GDP)

and contributes about 8 per cent to the total employment. India continues to be among

the most attractive investment propositions for global retailers. India has emerged as

the fifth most favorable destination for international retailers, outpacing the UAE,

Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail

Development Index (GRDI) 2012.

Madura Fashion & Lifestyle reaches its discerning customers through an

exclusive network comprising more than 1,500 stores, covering 1.9 million sq ft of retail

space, and is present in more than 1,300 premium multi-brand stores and 300+

departmental stores. The company’s brand portfolio includes product lines that range

from affordable and mass-market to luxurious, high-end style and cater to every age

group, from children and youth to men and women.

FORMATS OF OPERATION:

The company's lifestyle store, The Collective, offers a unique blend of global

fashions, international trends and innovative customer services, to customers in

major metros in India.

Planet Fashion, the multi-brand, apparel-retailing arm of Madura Fashion &

Lifestyle, housing the company's in-house and other brands, is the largest chain

of stores of its kind in India.

Madura Fashion & Lifestyle marked its foray into the luxury mono brand

business in India by launching the quintessential British men's luxury clothing

and accessories brand Hackett London through a joint venture with the UK firm.

Recently, the company launched Trendin.com, a one-stop shopping destination

for the style conscious. As the official online store showcasing the widest range

of its brand.

POSITIONING:

Madura Fashion & Lifestyle has a very large base of customers because of their

presence in different customer segmentation. They have a wide variety of brands which

serves customers of all brackets. Exhibit 1 clearly shows the positioning of different

brands.

Exhibit 1: Positioning of different brands

Brand Name Demographics Positioning

Louis Philippe Male 25-45 years It is a mélange of comfort,

perfection and elegance.

Van Heusan Male 25-45 years Position itself as a lifestyle

cum corporate wear.

Allen Solly Male/Female 22-40 years It broadens the meaning of

Fridays.

Peter England Male 20-32 years Beginning of good things is

the tagline and pictured as

an honest brand image.

The collective Age 25-34 accounts 62%

35-44 accounts 20%

45-50 accounts 18%

Positioned as an

aspirational brand for

discerning Indian.

PORTERS FIVE FORCES ANALYSIS:

Today, fashion retail in India is highly competitive and there has been an

avalanche of global fashion brands making an entry into the Indian marketplace. The

margins on a private label are higher for retailers, as they are able to control the

sourcing and manufacturing costs of these apparels at the back-end, and marketing

through their department stores on the front-end.

Exhibit 2: Five force analysis

Factors Key elements

Power of suppliers i. Very few suppliers who have

economies of scale.

ii. Substantial decrease in suppliers of

merchandise.

Power of buyers i. Product differentiation.

ii. Retailer’s service.

iii. Growing value consciousness.

Rivalry i. Differential pricing.

ii. Acceptance of Information

technology.

iii. Improved supply chain.

iv. Brand building through values.

New entrant i. FDI entry in multi branding retailing.

ii. Proliferation of private labels.

Substitutes i. Alternative retail landscape like

direct selling, E-tailing.

ii. Shift towards other formats such as

cash & carry, hypermarket, discount

stores.

Exhibit 3: Firm’s Diversification

Exhibit 4: Market Share

Fabrics

• Aditya Birla groups owns Grasim Industries Ltd. Grasim Industries Limited is a global leader in viscose staple fibre and ranks among India's largest private sector companies. Grasim has a presence in fabrics and synthetic yarn.

Textile

• Established in 1988 by Madura coats limited, Madura Fashion & Lifestyle has its origin in the erstwhile coats Viyelle Plc, Europe's largest clothing supplier. In December 1999 Aditya Birla Nuvo acquired Madura Fashion & Lifestyle to beccome a undisputed leader in readymade menswear.

Retailing

• Madura Fashion & LIfestyle has a nationwide reach through a large controlled presence of 1670 stores spanning around 4.11 million sq.ft. Besides reaching customers through more than 4750 MBOs and departmental stores.

Madura F&L

Raymond Ltd

Arvind Ltd

others

55% 20%

15%

10%

Exhibit 5: References

1. Aditya Birla Nuvo “corporate presentation” December 2013.

2. Madura Fashion & Lifestyle Ltd http://www.madurafnl.com/index.html.

3. “The future of fashion apparel in India” – Texcon’12

http://www.slideshare.net/WazirAdvisors/the-future-of-fashion-apparel-in-india.

4. “Fashion Retail: A State of Grace” by Images Business of Fashion.

http://www.indiaretailing.com/fashion/article-

detail.aspx?mcatid=1&catid=8&aid=9678.

5. “Innovation to Shape the Future of the Fashion World” by Images Business of

Fashion. http://www.indiaretailing.com/fashion/article-

detail.aspx?mcatid=1&catid=6&aid=9614.

6. “Indian apparel Market: Current status and Future outlook by Wazir Management

consultants at Indian Textile Summit, Mumbai- 27th September 2012.

7. “A research report on assement of competition in apparel retail industry in India”

by Amity University, Noida to Competition Commission of India.

8. http://www.madurafnl.com/index.html.

9. http://www.adityabirla.com/home

10. http://www.indiaretailing.com/fashion/default.aspx

http://www.madurafnl.com/index.html

http://www.slideshare.net/WazirAdvisors/the-future-of-fashion-apparel-in-india

http://www.indiaretailing.com/fashion/article-detail.aspx?mcatid=1&catid=8&aid=9678




http://www.madurafnl.com/index.html

http://www.adityabirla.com/home

http://www.indiaretailing.com/fashion/default.aspx

Strategy analysis of madura f&l

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