Pantaloons Case Study

Topics: Retailing, Shopping mall, Sales Pages: 5 (1552 words) Published: April 13, 2011
Case Study2: Pantaloons Retail India Limited
This case talks about Pantaloons Retail India Limited, a growing company in the still nascent apparel retail sector in India. The case has brief description of the Indian Retail industry and the changes happening in the industry with the development of smaller cities and towns and also about the customers changing behavior. The case then discusses about how Pantaloons have are capturing this market and the evolution of the Pantaloons store brands. About the Indian Retail Industry:

The Indian apparel retail industry is amidst a revolutionary phase and is booming. The change in the apparel retail industry is not only in the urban areas but also in the rural areas of the country. It is expected that the Indian Textile and Apparel industry which is now worth US$ 70 billion would go up to US$ 220 billion by 2020.(Supriya Pal, 2010) With the Indian economy growing at 8% a year and people having more disposable income, this could very much happen. Interestingly in India the organized retail sector occupies only 5% market share in the retail sector, whereas the rest of the market share is with the unorganized smaller retailers. With the highly changing consumer behavior, increasing number of malls, increased buying behavior of consumers, brand awareness among consumers, realization of the advantages of shopping with organized retailers such as convenience and availability of wider assortments, the market share of organized retail is expected to go up by over 80% in the next five years. (Namitha Bhairaviya, 2010) Also, the increased demand for luxury products amongst the middle class and the growing ‘mall culture’ which is driving more youth to shop in the malls have been a driving force for the organized retail sector. Except for a few companies, the industry has not upgraded itself to the latest available technologies that help to make retailing and the supply chain more efficient. With the high percentage growth expected in the organized retail industry, companies that are able to understand consumer buying behavior and adapt to the best technologies to make their supply chain quick and efficient could see a major growth. About Pantaloons Retail India Limited: (PRIL)

Pantaloons a chain of fashion outlets under PRIL group of companies are one of the bigger fashion outlets in India. PRIL also runs a chain of hypermarkets under the name ‘Big Bazaar’. While pantaloons attract more of the fashion forward and brand conscious customers, Big Bazaar attracts customers looking for less expensive clothing. Currently PRIL has retail space in over 71 cities and 65 rural locations in India and had a net sales value of US$ 217 million in 2010.( Pantaloon Retail was awarded the ‘International Retailer of the Year – 2007’, by the US-based National Retail Federation.( Pantaloons stand out as a fashion trendsetter, on the lines of how fashion is followed internationally; this has been attracting more and more youngsters to its stores. With the disposable income increasing amongst IT industry employers who are mostly young, fashion outlets such as pantaloons have been able to attract more customers. The company’s belief in developing strong insights on Indian consumers and building businesses based on Indian ideas, has helped the company create an image of ‘Indianness’ amongst its customers. (Dinakaran Sundaram, 2011). The major competitors to Pantaloons are Westside (TATA retail), Shopper stop, Globus, Reliance retail and Wills lifestyle. Pantaloons not only have to compete with these organized retailers but also with the large number of traditional retailers.

* Focus on the use of technology in order to make retailing and the supply chain more efficient. (Use of SAP retail solutions, also in the process of implementing WMS using RFID) * Vast range of lifestyle and retail products,...
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