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Bhawna Upadhyay
Overview of the company
Lilliput is a known kids wear manufacturer in India started in 1991 by Mr. Sanjeev

135 brand outlets in 18 states 35 cities

Tie-ups with shopper’s stop , pantaloon, lifestyle ,reliance etc

Stores outside the country Bahrain, China, Egypt, Saudi Arabia etc

It has 8 manufacturer units in Delhi (NCR)

More than 4000 employees

Brand of the year 2007 award (kids wear category)- by CMAI

Annual turnover- Rs 182 crores in FY 06-0

Lilliput is currently growing @ 88.5% YOY

It has drawn an ambitious plan to open 400 stores - 2010-2011


“Analysis of the Kids wear industry in India and

effect of recession on sales of Lilliput”


•Analysis of the Kids wears industry in India.

• Factors responsible for attracting the customers to the Lilliput

stores, that are helpful in increasing the brand awareness and
contribute to the purchase decision of the customers.

• Effect of recession on the sales of the Lilliput stores and what

measures the company has taken to minimize the effect.
Sampling Plan:

Consumers of different localities in Delhi, Noida, and Ghaziabad were interviewed.

Lilliput Stores at different locations were visited to collect primary data.

Store managers of various Lilliput stores were interviewed.

Sample Size:

In order to collect a fair amount of primary data, 28 Lilliput stores across different
locations were visited.

In order to collect primary data for final consumers, from each of the above mentioned
stores were interviewed.


DURATION: The estimated time to meet the objectives of the project was
2 months.
AREA COVERED: Delhi, Noida, and Ghaziabad



OCT '08' NOV '08' DEC '08'

STORE 1 933 620 464

STORE 2 910 506 413

STORE 3 1100 1000 900

STORE 4 1124 930 708

STORE 5 880 780 765

STORE 6 847 764 632

STORE 7 970 776 457

STORE 8 829 890 880

STORE 9 936 910 832

STORE 10 880 550 569

It can be concluded that store 8 has performed well in terms
of footfalls as the other stores are far behind. The footfalls of
all the stores declined from October 2008 to December 2008
From the above graph it is clearly visible that majority out of the 28 store
managers we interviewed believes that Designs and colors of the clothes
were the main factor which are responsible for attracting the customers
to the store. while some of the other important factors are location of the
store, brand name and because of the ease of purchase.
Above analysis clearly depicts that Fabric is the most
important factor which helps the customers in making a
purchase decision its simply because young's infants like
soft, comfortable material. apart from fabric designs and
variety are of one the factors because nowadays parents want
their kids to wear most fashionable clothes.

•Visual merchandising of certain stores was not appropriate.

•Location disadvantages were there at many stores in Ghaziabad and Delhi

•Lack of ethnic wear garments at the stores till date

•Company’s per shop revenue is less than expenses on per shop.

• Company also went for the cost cutting

•Ambience of certain stores was very good

•Nothing entertaining could be found for the kids while their parent’s were at shopping for
their kids.

•Lilliput loyal customers contributed 12% of total sales during the time of recession that is
after November.

•During the past years it could be seen that company has not provided any promotional offers
to their customers which is very important source for building a long lasting relationship with
Impact of recession on Lilliput kid’s wear

•As per the findings during the month of October, November, December the
footfalls have declined

•Till last year Lilliput provided 50% discount to their customer but as they were
aware with the situation they increased their discount by 20%.

•The company went for the cost cutting that is they removed the guards from the

• The company also stopped the production of their certain garments which were
The kids’ wear market, which has been assessed at Rs13,000 crore with Rs 3,000
crore being branded, can easily be described as the next growth industry with a
large young working population and increasing number of double income families
with high disposable surplus.

Additionally, kids are highly self conscious and can be easily affected by peer
pressure, at a very young age, and thus can be very demanding, often at the cost of
the parent’s peace of mind if not their pockets.

The analysis also shows that price of the clothes is a major deciding factor in the
purchase of the apparel along with the design and the fabric used. Thus, it is
important for the company to focus on these areas to increase their sales. The order
of the day is quality and smart clothing at reasonable prices.

In the kid’s apparel market, the large variety, segmented customer profile and
changing tastes plays a big role. Also, the children’s buying behavior, influence of
parents and media makes a huge difference in the purchase decision.

One needs to watch one’s every step while entering a crowded and competitive
market. Market research and consumer insight led branding is the need of the