05-02-2013, 12:19 PM
PANTALOON :REVOLUTIONIZING THE INDIAN RETAILING INDUSTRY
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INTRODUCTION
India’s leading retailer operating in value and
lifestyle segment of the indian consumer market.
From a small single format store in 1993.PRIL had
grown to become the largest multi-format store
by 2004,comprising pantaloons(department
store),big bazaar(hyper market),food
bazaar(grocery store),gold bazaar(gold retail
store) and central(malls).It was one of the largest
players in discounting retail.
A flagship company of Future Group.
FUTURE GROUP
VISION:-”to deliever everything,every
where,every time to every indian consumer
in the most profitable manner”
MISSION:-”Indianess as a core value”
CORPORATE CREDO:-”rewrite rules,retain
value”
RETAIL INDUSTRY IN INDIA
In 2003 India had over 10 million retail outlets selling worth
$200 billion.Unorganized sector accounted for over 98% of
the retail stores,the small individual proprietor store called
“kirana” shops dominating the scene.
The organized retail sector in India was characterized by high
attrition rates,lack of trained manpower and low salaries.
Food & Groceries,which accounted for nearly 50% of the
consumer’s total expenditure,had a miniscule share of 0.3%
in organized retailing.
Apparel retailing was the second largest opportunity for the
organized retailers.Branded apparel accounted for 20% of
the total apparel market,of which men’s clothing accounted
for 70%,children’s wear 20% and women’s wear 8%.
PANTALOON MODEL
Pantaloon adopted a pan-indian model that captured
the value chain and allowed it to evolve with the
customer prefrences.
Biyani believed that growth lays in.”setting up new
stores,getting new customers,by introducing new
retail formats,by introducing new products and by
making no mistakes”.
He repositioned Pantaloons from a family to a lifestyle
store as the market involved.
He emphasized on cheaper sourcing,efficient supply
chain,affordable price,private labels,location and floor
space of the store.
POSITIONING
With a tag line “0-80”(age group),first pantaloon was
positioned as a family store targeting the middle and upper
class customers.
In 2003 they focused more on youth segment and try to
establish itself high on style graph.
The company had partnered with Gibam, an Italian firm
known for its stylish stores, to create a unique image for its
stores.
Garments was displaced on hangers, rather than stacked in
shelves.
In april 2004 pantaloons in partnership with Mattel india ltd.
Opened a ‘Barbie Concept Store’ named as a Magical world of
Barbie which targeted at young girls,in age group of 3-10.
DISTRIBUTION
Pantaloons located at up market accessible & high
footfall locations.
Initially,property was purchased & developed by
Biyani but after 2002 he decided to buy properties on
lease.
In beginning the stores had a floor space of 4,500 sq
ft but later it grew bigger and occupied between
30,000-90,000 sq ft.
It takes 20,000-25,000 sq ft in high traffic areas like
entertainment complexes and shopping malls.
Pantaloon entered into a strategic alliance with Inox
leisure to take up spaces in multiplexes.
One level distribution.
PRICING
Pantaloons sold branded garments at affordable prices.
More than 70% of apparel sales at pantaloons consisted of
private labels like Bare, HNY,John Millers,AFL etc while rest were
brands such as Levis,Arrow,reebok etc.
The price of private labels was 20%-25% lower as compared to
the branded once.
In men’s wear retailers earned margin between 55%-60% on
private labels while in women’s wear it was between 48%-50%.
Special event pricing
Promotional pricing