30-05-2013, 02:46 PM
Consumer Buying behavior towards Branded Apparels in Kanpur City
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Executive summary
India continues to be among the most attractive countries for global retailers. Some numbers will stand as credible proof to the aforementioned statement. Globally, the Indian retail market is the fifth largest in the world. The future expansion of the Indian market is elucidated in a McKinsey report named 'The rise of Indian Consumer Market' which estimates that the Indian consumer market is likely to grow four times by 2025. Sectors like Banks, capital goods, engineering, fast moving consumer goods (FMCG), software services, oil marketing, power, two-wheelers and telecom companies were leading the sales and profit growth of India Inc in the fourth quarter of 2008-09.(Global).
Apparel manufacturing is the least capital intensive section of the textile value chain and is therefore characterized by low entry barriers. At the same time, it is highly labour intensive and requires skilled, unskilled and semi-skilled labourers. Indian apparel industry is highly fragmented in nature. Due to the low entry barriers, numerous players have entered the industry.
There was a time in not too distant a past when consumer buying behavior was mostly limited by budgetary constraints and when buying seemed to have a small impact on the daily life and one’s lifestyle. The consumers had a smaller level of influence on the availability of products and for the most part had to contend with what was on offer. The increased disposable income, access to information, and competition has empowered consumers to demand more and to have higher expectations. They are no longer driven by their needs for a product but are instead driven by their wants which is quite characteristic of the fashion market.
Introduction
About the industry:
Overview of Indian apparels Industry:
The textile industry is one of the oldest industries in India. It has played an important role in generating foreign exchange reserves and creating employment opportunities. The concept of readymade garments is relatively new for the Indians. Traditionally, Indians preferred dresses stitched by local tailors, who had tailoring units in townships or cities and catered exclusively to local demand. The growing fashion consciousness during the 1980s and the convenience offered by ready-to-wear garments were largely responsible for the development of the branded apparel industry in India. Other factors which contributed to its growth were: greater purchasing power in the hands of the youth, access to fashion trends outside the country, and the superior quality of fabrics.
Competitive Position of Apparel Industry :
India’s share of global exports of textiles and apparel increased from 1.8 percent in 1980 to 3.3 percent in 1998. However, India’s export growth was lower than that of most Asian countries during that period. The study identifies a number of competitive strengths of the Indian textile and apparel industry:
o India has a large fiber base, and ranks as the world’s third-leading producer of cotton, accounting for 15 percent of the world’s cotton crop. India produces a wide variety of cotton, providing operational flexibility for domestic textile producers. In the manmade fiber sector, India is the world’s fifth-largest producer of polyester fibers and filament yarns and the third-largest producer of cellulosic fibers and filament yarns.
o India is the world’s second-largest textile producer (after China), and is diversified and capable of producing a wide variety of textiles. The spinning segment is fairly modernized and competitive, accounting for about 20 percent of world cotton yarn exports.
o India’s textile and apparel industry benefits from a large pool of skilled workers and competent technical and managerial personnel. India’s labor is inexpensive; hourly labor costs in the textile and apparel industry average less than 5 percent of those in the U.S. textile and apparel industry.
Domestic Consumption:
The total Indian consumption of textiles and apparel is estimated at ~US$ 57 billion, out of which apparel retail contributes to ~ US$ 40 billion, technical textiles contributes ~ US$ 13 billion and home textiles contributes ~ US$ 4 billion. The market has grown at a yearly growth rate of 13% over last 5 years.
The domestic consumption has been fueled by several factors like growing consumer prosperity and awareness, increasing availability of product variations, catching up with international trends, growth of organized retail, etc. On the basis of these factors, it is estimated that the Indian domestic consumption will become ~US $ 100 billion by 2016 growing at an overall annual rate of 12%.
External Trade: Indian textile and clothing exports have come a long way in last decade or so, tripling the exports value in this duration. Indian textile & apparel as an export category has outperformed several large textile producers of past including Germany, Italy, USA, Turkey, etc.
APPERAL FASHION IN INDIA:
Modern consumption patterns have changed and evolved where consumers are keenly aware of fashion trends and information is easily accessible to consumers for all segment through different information channels. This has altered consumers motivation behind their fashion consumption as well, some use fashion as a means of presenting themselves to the society at large.
Fashion is a dynamic phenomenon and has always changed evolved with time; irrespective of whether it is a garment, cosmetics or jewelry, but to define how fashion has changed, with respect to time is rather complicated. Every year a bewildering array of styles are developed all over the world and replaced the year after with new ones. Fashion clothing industry is completely driven by constant ideas and new inspirations. Sometimes some designs get repeated for many years with minor changes and this is more common in men’s wear, however female clothing is more complex, here things are more convoluted due to many designs and demands.
The apparel fashion plays a paramount role in shaping apparel consumerism. As lifestyles change, fashion in India is becoming more diversified, as in the Western countries. Technology, ideas and lifestyles are moving concurrently and quickly. Companies and brands that offered monotonous and mundane products for years, have now multiplied their product ranges and new appealing styles, shapes and forms are being launched each season by them.
BRANDED APPERALS:
There are numerous studies on the links between consumer’s personality traits and their buying behaviors for over 40 years. Gender issue also an upgrading aspect of such kind of research recently, as males and females are having their own perceptions and attitudes towards each aspect of life and is inadequately research area. Branding was introduced to differentiate homogenous products such as clothing. Brand names or branding create trust, identify products and services, and are more of a psychological assurance than a tangible item. It builds an image of the product which is a sort of message devoted to potential customer.
The psychological behavior of customer defines conscious and unconscious elements that create relationship between brand and user consumers seem to be associated with a products, promises and brands through their own perception about their needs, aspiration and self. Hence, a marketer has to correctly read the buyer’s behavior to a particular response. Every person has his/her separate standards of judgments which reflect in decisions. This study will consider the personal factors, like age, income, education, occupation, lifestyle, personality and self concept, influencing the buying decision of consumers with respect of gender discrimination.
Problem Definition
Recently, India is increasingly being looked upon as a major supplier of high quality fashion apparels. Although the apparel industry seems to be in the maturity stage and growth is slow, fashion trend cycles are accelerating – it is generally observed that nowadays the average successful clothing trend lasts only six to twelve weeks. The presence of more and more brands has created a competitive environment unheard of in the past.
While the fastest growth and development of retailing environment, understanding the psyche of customer is critical for today‘s business and environment. Aggregate or macro level information may mislead, so understanding at individual customer level is desirable. It is generally observed that customers have a wide range of choices for purchasing apparels and they have no clear vision to what they buy. Today‘s consumption in young Indian consumer has no limits - they work hard and spend money for more non-essential products and it is been a driving factor and evolution in the Indian Apparel Retail sector.
Analyzing and understanding the consumer and his behavior is the cornerstone of success in marketing. It includes all the physical, mental and emotional processes and concerned behavior which are observable before, during and after each and every purchase of goods and services. This make us compelling to understand, observe, record and react to such behavior in case we want to have win-win strategy that matter for marketer and the customer both.
NEED AND SIGNIFICANCE
As in this competition era you must be aware about the customer needs & wants &what a consumer expects from the company. You must have this information or a customer data base if u wants to stay in the market to competitive edge in the market. After conducting this study we must be able to understand what customer’s wants from a brand, why he switches to other brand, what are the factors which force him to purchase branded apparels. By which company can formulate the strategies as per the customer needs & deliver them the products which consumer want from the company which will be profitable for the company.
SCOPE OF THE STUDY
If we talk about the scope of this study in future then the scope of such study is very wider. Scope of the study is that after gathering the information about the youth who like to purchase the branded apparels & after studying the factors which influence them to go with that specific brand, it includes demographic factors, cultural influences, & social class .This study will be helpful for the companies who are in this business segment of apparels. They will be able to know the taste & need of the consumer & what will be the products & services which will help them to change the non user into user of their brand & retain their existing customer by providing them the products which they want from the company. This study will help them to formulate & implementing the marketing strategies.
Conclusion
Analyzing and understanding the consumer and his behavior is the cornerstone of success in marketing. It includes all the physical, mental and emotional processes and concerned behavior which are observable before, during and after each and every purchase of goods and services. This make us compelling to understand, observe, record and react to such behavior in case we want to have win-win strategy that matter for marketer and the customer both. The research report presented is based on the “Consumer behavior towards Branded Garments”. Through this study an attempt has been made to practically understand those emotional or rational appeals, which drive the purchase decision toward the branded garments.