A QUESTION OF RESPONDING TO MARKET

CHANGES

The Kumbhakarna Syndrome

Why “kumbhakarna”

Ravan’s brother; famous to sleep for months; unaware of the changes in surrounding environment.

Story

In the case context sleep denotes a state of non responsiveness.

Non responsiveness to the changes as well as failing to act on them.

As a result surrendering market position to competitors

Pictures

Early 1990’s

Very few ready made premium brands in India

After liberalization, brands such as Louis Philippe, Van Heusen, Arrow entered Indian market with more aggressive marketing strategy..

Income level in the economy rises; consumers with higher income were ready to pay more for the brand of their choice.

Madura garments, now Madura Fashion and lifestyle, a division of Aditya Birla Nuvo Group acquired a significant share in Indian apparel market.

Product Lines by Madura Garments

In 1989, Madura Garments introduced Louis Philippe; first genuinely international garment label.

In 1990, Van Heusen was introduced.

Allen Solly, introduced in 1993, popularized the concept of Friday dressing in India.

Peter England; launched in 1997,largest men's wear brand in India

Espirit, established in 2005, provides fresh look and new style to its existing variety every month.

Planet Fashion, established 2001,houses brands beyond Madura Garments.

People; launched 2008; initially Peter England People.

Introduction of Western wear for women

In 2001, Madura Garments saw women buying sizes 26and 28 in men’s range.

Introduced western wear collection for women under Allen Solly brand.

Won “the most admired brand – women’s wear” by IFA in 2004,2005 and 2007

Market for kid’s apparel

In 2008 Madura Garments saw strong need for branded apparel in kid's wear segment.

Estimates

Market segment

Worth(in million Cr.)

Growth

Kid’s wear market 173000 16%

Kid’s uniform market

115000 23%

Total market 288000 18%

Environmental forces in action

Changing family system lead to rise of kid’s wear segment.

Emergence of nuclear families with both working parents results in higher disposable income.

Seeking better products for children in terms of

functionality as well as Brand

and quality.

Madura Garments in action

Adapting retail stores to the needs of the segment.

Store staff, wall colours, mannequins appeals to mothers and children.

E.g.:- Peter England People(PEP) have a play area for kids

All varieties of men’s wear, women’s wear and kid’s wear under its umbrella.

Madura’s Future Plans

Will soon start offering end to end wardrobe solutions under one roof.

Plans to achieve a turnover of 60000 million by 2013

PEP contribution is expected to be Rs.15000 million

Kid’s segment to account 15 percent of the turnover.