Topic Branded Shirts

By: Arghya Das 14PGP004

Garima 14PGP020
Pranav Aggarwal 14PGP030
Somal kant 14PGP043
Yash Dubey 14PGP055
Number of buyers
By Volume 2007 2008 2009 2010 2011 2012
Branded Shirts(in mn units) 284.5 290.4 296.8 307.2 319.5 335.5
By Value 2007 2008 2009 2010 2011 2012
Branded Shirts(in Rs bn) 169.2 184.5 201.3 220.2 240 268.8
% Volume Growth 2011-12 2007-12(CAGR) 2007/12 Total
Branded Shirts(in %) 5 3.4 17.9
As can be seen from the sales volume data, there are many number of buyers for the Branded shirt markets.
The increasing branded players across the major cities of India has helped to gain more value share than volume
share.
The category is mainly dominated by domestic companies including Aditya Birla Nuvo Ltd, Arvind Ltd, Raymond
Ltd, and Zodiac Clothing Co. International brands including Benetton, Levis, Lee and Wrangler continued to
penetrate the market during 2012. However, the wider variety of choice and competitive pricing from domestic
players makes them a better choice.
The increase in raw material costs and central government of India planning the implementation of excise duty
tax in the future, are potential threats to category development over the forecast period. The increase in excise
duty will lead to an increase in unit prices and consumers may shift to local and regional brands.

The table shows the total sales volume of the
branded shirts market
The table shows the total sales by value of the
branded shirts market
The table shows the total sales percentage
growth of the branded shirts market
Number of Sellers
Company(% retail value) 2008 2009 2010 2011 2012
Aditya Birla Nuvo Limited 2.3 2.3 2.6 3 3.4
Arvind Limited 1.4 1.6 1.9 2.1 2.4
Raymond Limited 1.3 1.5 1.7 1.7 1.8
Pantaloon Retail India limited 0.8 0.9 1 1.1 1.1
Kewal Kiran Clothing Limited 0.5 0.6 0.7 0.8 1
Provogue India Limited 0.6 0.7 0.8 0.8 0.7
Others 93.1 92.4 91.3 90.5 89.6
The number of sellers in this segment is high. As can be seen from the table, branded shirt market is cluttered, with
the market leader(Aditya Birla Nuvo Limited) holding the 3.4% of the retail value.
Aditya Birla Nuvo Ltd is the leader in mens branded shirts market with around 3.4% value share in this fragmented
market area. The company brands are widely accepted across India. Its brands like Allen Solly, Peter England, Louis
Philippe and Van Heusen have stronger acceptance across India, making the company the category leader.
The multi-brand outlets and modern retailing will drive sales of branded mens outwear in India. The multi-brand
and modern retailing will offer more brands under a single roof for consumers and this will help mens outerwear to
grow.

Nature of Product(Degree of
homogenity)
Segment Size Sleeves collar design price
Brand
Peter England
Business
casual/casual/formal
shirts 38-46 full/half
Spread, semi cut, cut
away, stand collar
check, gingham, solid,
stripe, and printed
patterns 800-1900
John Players
Business
casual/casual/formal
shirts 39-44 full/half
Mandarin or spread
collar
Check, solid and stripe
pattern 700-1399
Raymonds
Business
casual/casual/formal
shirts 38-46 full/half
Cut away and spread
collar
Check, patterned, solid
and stripe 1499-1999
Allensolly
Business
casual/casual/formal
shirts 38-46 full/half
Button down, cut
away and regular
collar
Check, patterned, solid,
stripe and textured
patterns 979-2299
By looking at the data collected of top brands of branded shirts we came
to know that almost all brands have same designs of shirt falling in same segments
Of all different sizes and most importantly having mostly same price range and having
some fabric differentiation which makes them close substitutes of each other.
Brand Name
A brand name is valuable to a firm; it makes the demand less elastic
and can enable the firm to earn higher profits.

Once a consumer has had a positive experience with a good, the
price elasticity of demand for that good typically decreasesthe
consumer becomes loyal to the product.
The increasing branded players across the major cities of India has
helped to gain more value share than volume share.
Aditya Birla Nuvo Ltd was the leader in mens outerwear with
around 4% value share
Its brands like Allen Solly, Peter England, Louis Philippe and Van
Heusen have stronger acceptance across India, making the
company the category leader.


Flow of Information
Buyers do not know everything, but they have
relatively complete information about alternative
prices
Also have relatively complete information about
product differences, brand names etc
Seller also has relatively complete information
about production techniques and the prices
charged by their competitors
Van Heusen launched Vdot and Van Heusen
Sports to compete with Zodiac and Indian Terrain


Entry & Exit Barriers
There is freedom of entry
No quantitative restrictions or differences in market
conditions
Qualitative differences may create some barriers in the
short run
In long run no such barriers may exist.
Dress code is maintained in most offices from Monday-
Thursday, Friday is considered casual wear day.
Companies have identified this cultural trend and launched
brands semi casual clothes that fit the bill.
Brands such as Allen Solly, Park Avenue and Peter England
are leading such practices

Entry & Exit Barriers(Contd.)
Central government of Indias has authorized 100% FDI
in single brand retailing & 51% FDI in multi-brand
retailing
This will lead to more foreign brands to enter India like
H&M, Uniqlo, GAP, Pull and Bear and many more, in
coming years.
The multi-brand outlets and modern retailing will drive
sales of branded mens outwear in India during this
period.
This will offer more brands under a single roof for
consumers and will help branded shirts outerwear to
grow.

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