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CHAPTER – 1
INTRODUCTION

1.1 - Rationale

1.2 - Objective of study

1.3 - Scope of the study

1.4 - Limitation

1.5 - Research overview

1.1 - RATIONALE

Rationale is a set of reasons or logical basis for a course of action or a particular belief. This chapter outlines the rationale behind launching maternity wear collection MNG Motherhood by Mango. MANGO is a Spanish brand of women wear and accessories that are in vogue. The first store of Mango was opened in 1984 in Barcelona. Mango entered India in 2001 with Major Brand’s franchise and has now appointed DLF as a franchisee partner after seeing the growth rate and opportunities in the country. It has 17 stores in India today. We have decided to the line extension in the brand MANGO by launching maternity wear collection MNG Motherhood. The following aspects help us to justify the reason behind launching MNG Motherhood by Mango:

GROWTH OF APPAREL INDUSTRY
Fig 1.1.1 – growth of apparel industry
(Source: Tejas article,IIMB)

The graph above shows the growth in the Indian clothing apparel industry. Despite the economic downturn, Indian clothing apparel industry registered a 9.9 % value growth reaching a staggering Rs. 28.10 billion. Growth in the apparel industry is one of the reasons to justify the launch of maternity wear by Mango which will help the brand to expand their product portfolio and their market share in the industry.

GROWTH IN THE MATERNITY MARKET
Maternity wear market has made steady inroads in India over the last few years; the market is becoming more sophisticated. According to K Venkateraman, MD of Mahindra retail, the market for women’s wear is pegged to be around Rs.80, 000 crore. And maternity wear could easily account for 3% of that in next five years. The annual maternity wear market in India is estimated at Rs.1000 + crore and is growing at rate of 25% annually, according to Technopack Advisors Pvt Ltd, a retail consulting firm. Mothercare and Mom and Me are the only two brands dominating the growing maternity wear market. Hence, there is a need gap in the market which justifies the reason to launch MNG Motherhood by Mango.

DECLINING BIRTH RATE
Fig.1.1.2 – birth rate demographics
(Source: Tejas article,IIMB)

BIRTH RATE - DEMOGRAPHICS
Country | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | India | 24.79 | 24.28 | 23.79 | 23.28 | 22.8 | 22.32 | 22.01 | 22.69 | 22.22 | 21.76 | 21.34 | 20.97 |

Birth rate is child births per 1000 people per year. The above table depicts decline in the birth rate by almost 4 % from 2000 to 2011. The decline in the current birth rate which implies young couples are opting for fewer kids these days and therefore the idea of pampering oneself during the period is quite strong. Since the idea of pampering oneself during the gestation period is more, it implies their high willingness to spend on the maternity clothing. Only Mothercare and Mom and Me are dominating the maternity wear market with the rising demand of maternity clothing, hence this is one of the more reasons to justify the launch of MNG Motherhood by Mango.

GROWTH IN PLUZ SIZE WOMEN POPULATION
Fig. 1.1.3 – growth in plus-size women
(Source: Technopack, Perspective Vol. 4)

As we can see in the graph above there is a growth in the plus size women population. 8% of the women are plus sized. This has lead to the growth in the plus size market. Retailers have opened a full new store to cater to this niche market. The concept of plus-size clothing is picking...
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