Fashion

The following is an analysis of Coach Inc. The company designs and markets both men and women bags, apparel, and accessories. Coach was founded in 1941 by Miles Cahn and was sold to food and consumer goods producer, Sara Lee, 44 years later. Today, Coach is among the best-known luxury brand that focuses on matching key luxury rivals in quality and styling while beating them on price (Thompson A., Peteraf, Gamble, & Strickland, 2014). Within this analysis, five questions will be answered regarding Coach’s characteristics, competitive forces, strategies, strengths and weaknesses, and a recommendation on how the company should improve their competitive position.

Although Coach’s performance has been commendable, the company is faced with many threats and prestigious competition that offers similar brands at indistinguishable price points (Thompson A., Peteraf, Gamble, & Strickland, 2014). To sustain the growth of their evolving company, Coach must consider new strategic options for the future. Coach Inc. faces challenges not only within their business, but outside of the company as well. Due to the unstable economy, profit margin levels have been below average and share price has experienced a sharp decline.

Coach is also challenged by the launch of new accessible luxury brands such as Michael Kors, Salvatore Ferragamo, Prada Giorgio Armani, Dolce & Gabbana, and Versace (Thompson A., Peteraf, Gamble, & Strickland, 2014). These businesses are both aggressive and successful; providing strong competition for Coach to overcome. Although the company must keep these emerging markets in mind, there are also the threats of counterfeiting, changing fashion trends, and consumer preference that Coach must take into consideration.

Recommendations for Coach include new marketing strategies, opening up to new markets, bringing in new customers while maintaining the old, and business expansion. Each of these recommendations is looking to the future to achieve the company’s five key initiatives: to build market share in North America and Japan, raise brand awareness in underpenetrated markets, raise awareness through coach.com, and increase sales of men products.

Question 1: Defining Characteristics of Luxury Goods Industry The luxury goods industry relies on creative designs, high quality, and brand reputation to attract customers and build brand loyalty. When looking at Maslow’s hierarchy of needs (Appendix A), Coach and other luxury goods fall under the esteem level. Many people feel the need to purchase these products to boast self-esteem, provide confidence for themselves, or to gain respect from others. Although price-sensitivity for luxury goods is driven by brand exclusivity and customer-centric marketing, a large extent goes towards the emotional sense of status and value (Thompson A., Peteraf, Gamble, & Strickland, 2014).

The luxury goods market can be divided into three categories: haute-couture, tradition luxury, and accessible luxury. Haute-couture is considered to be very high-end market that targets the extremely wealthy. The traditional luxury market includes brands such as Prada, Gucci, and Calvin Klein. Some of these companies cross over into the accessible luxury market to compete with Coach and lesser luxury brands. These brands are typically sold for about 50 percent less than similar-looking, haute-couture items. Although the global luxury goods retail market was significantly affected by the economic slowdown and financial crisis in 2007-2009, more than $224 billion was spend on luxury goods in 2010 (Thompson A., Peteraf, Gamble, & Strickland, 2014).

There has been a growing desire for luxury goods by middle-class consumers who aspire to own higher-quality products. Whether it’s the effective advertising or television promotions, middle-income consumers feel the need to reward themselves with luxuries. An increase in luxury goods could also be a result of the “trade up, trade down” strategy. Many families are spending money on lower-priced necessities from Walmart and Target, and therefore able to splurge on high-end products when rewarding themselves. Two threats that Coach and other luxury goods industries face are counterfeiting and the growing demand for luxury goods in emerging markets.

An estimated amount of $300-$600 billion worth of counterfeit goods has been sold throughout the world (Thompson A., Peteraf, Gamble, & Strickland, 2014). Fake and knockoff brands have been an ongoing threat for the luxury goods industry since the mid-2000s. Many companies have been teaming up to develop practices for measuring and implementing piracy enforcement. Because counterfeiting has become so prevalent, many luxury brands have found this strategy to be financially and operationally beneficial. Another threat to the industry is emerging markets.

Both China and India have provided a major boost to the market because of their increasing wealth levels. Luxury goods have been highly demanded by China’s middle class and spending is expected to overtake Japan and the United States. Along with the rapid economic and social developments occurring in China, a group of luxury brands such as Chanel, Prada, and Dolce & Gabbana have entered the market (Thompson A., Peteraf, Gamble, & Strickland, 2014). With its booming economy, India is another rapidly growing market for luxury goods. Emerging markets in these areas bring intense competition to the luxury goods industry.

Question 2: Competitive Forces There is strong competition within the luxury goods industry. Not only are accessible luxury items competing against haute-couture to sell similar products at half the price, but the market is also competing with traditional luxury brands that are broadening their appeal in the accessible market. As consumers started to develop a stronger preference for stylish French and Italian designer brands, market research became an important aspect of the luxury goods industry. More recently, the growing demand for luxury items in emerging markets has increased the competition significantly.

Competitive Forces The strength of competitive forces in competing industries are never similar. Forces vary from one industry to another. Competitive pressures on companies come from five sources: rival sellers, potential new entrants, substitute power, supplier bargaining power, and customers bargaining power (Thompson A., Peteraf, Gamble, & Strickland, 2014). A five forces analysis for Coach Inc. is shown in Appendix B. When it comes to luxury goods, these competitive forces affect the industry in various ways. Forces that have the greatest affect on the luxury goods industry are competition from rival sellers, the potential of new entrants, and bargaining power of customers.

Rival Sellers

Competition from rival sellers has a strong effect on the luxury goods industry. As stated earlier, there are several luxury brands competing amongst one another. Although Coach once held a commendable spot in the accessible luxury goods market, many of these competing brands are starting to target the middle income class.

New Entrants

A growing demand for luxury goods has recently developed in countries such as China and India. Several new entrants joined the market, such as Chanel, Prada, and Dolce & Gabbana, and almost 1,000 store locations began to operate within the Chinese market. Many new entrants have also entered India’s rapidly growing market. Nearly 60 global luxury fashion and accessories brands have begun selling their products there (Thompson A., Peteraf, Gamble, & Strickland, 2014). However, due to strong brand preference and customer loyalty, new entrants have only a moderate affect on the luxury goods industry.

Power of Consumers

Changing fashion trends and consumer preferences are a threat to the luxury goods industry. Coach had a strong reputation until performance began to decline because consumers developed a stronger preference for other brands. Industries have had to implement marketing strategies to confide in consumers about styling, comfort, and functionality of their products. Without these strategies, consumers would have control. Industries have also needed to take into consideration the growing desire for luxury goods amongst middle-income consumers. Although primary traditional luxury consumers in the U.S. comprised the top one percent of wage earners with household incomes of $300,000 or better, those consumers that earned substantially less also aspired to own products with higher levels of quality and styling (Thompson A., Peteraf, Gamble, & Strickland, 2014).

Competitive Weapons Since competition is strong within the luxury goods industry, rivals have to outmaneuver one another to survive within the marketplace. As stated earlier, many companies have diffused the line of their luxury goods brand. Companies that once were considered to be traditional luxury have combined with accessible luxury to compete at a different level. Many industries in the United States have become more dependent on the success of diffusion lines in the accessible luxury category (Thompson A., Peteraf, Gamble, & Strickland, 2014).

Companies have also begun to expand their brands globally. According to Coach’s global sales in Appendix D, global markets have played a large part in company sales. Although sales declined during the financial crisis from 2007-2009, emerging markets had luxury goods sales increase by 7.8 percent (Thompson A., Peteraf, Gamble, & Strickland, 2014). Because these global areas are a key growth driver for the luxury goods market, companies have begun strategically expanding their markets accordingly.

The pace of rivalry is quickening and becoming more intense because the global market of luxury goods was significantly affected by the economic slowdown. Companies are desperately searching for strategic ways to promote and sell their brands without lowering their prices or decreasing their profits. The goal is not only to have a profitable strategy, but one that is long-term sustainable. Because luxury goods are an “esteem need”, there is a low threat of substitute products. People are willing to pay for the luxury goods items they want. This increases the competition for existing market brands. Although bargaining power of customers and new entrants have a moderate effect on the luxury goods industry, competitive rivalry within the industry is the strongest competitive force.

Question 3: Coach’s Strategy In 2011, Coach’s handbags accounted for 63 percent of their $4.2 billion sales (Thompson A., Peteraf, Gamble, & Strickland, 2014). Coach implemented a few strong strategies to maintain their industry position as best-known “accessible” luxury brand. First, Coach positioned its brand in the lower part of the accessible/affordable luxury pyramid. Not only did this provide a large opportunity for Coach, but the company took it one step further and targeted the top 20 percent of Americans by household income. It also targeted China, Japan, and the U.S. because they were the three countries that led in global luxury goods spending (Thompson A., Peteraf, Gamble, & Strickland, 2014).

Coach also uses a differentiation strategy. Through market research, the company can define product trends, selections, and consumer desires on a quarterly basis. This not only helps the company maintain a high quality and value brand, but ensures that they are designing products that consumers are looking to purchase. Monthly product launches enhance the research and put it into action. The product launch goal is to increase the frequency of consumer visits and for women to use bags to complement their wardrobes in the same way they used to use shoes (Thompson A., Peteraf, Gamble, & Strickland, 2014).

Coach’s positioning strategy to target Japan, China, and U.S. markets has been a sustainable competitive advantage for the company. Looking at Appendix E, Coach’s retail stores in these areas have had been increasing since 2007. Although there has been an increase in competition in these areas due to new emerging markets, Coach has been able to maintain a strong position and take advantage of the growing demand for luxury goods. This competitive advantage has also served the company well financially. The company’s sales in Japan had increased from $144 million in 2002 to $748 million in 2011, and its market share in the U.S. had nearly doubled since 2002 (Thompson A., Peteraf, Gamble, & Strickland, 2014).

Question 4: Strengths and Weaknesses Strengths Strong Brand Coach has a strong product brand that provides consumers with quality luxury goods at an attractive price. Their brand has not only attracted middle-income consumers desiring a taste of luxury, but also affluent and wealthy consumers with the means to spend considerably more on a handbag (Thompson A., Peteraf, Gamble, & Strickland, 2014). Although handbags make up a large portion of Coach’s sales, the company also offers an array of other products. These products are extremely well-made and easily recognizable as luxury products. Coach’s strong brand has played as strong role not only in the company’s success, but maintaining customer loyalty as well. Channels of Distribution

Coach Inc. has strong distribution capabilities. The company uses a multichannel distribution model as its strategy. Not only does it include direct wholesale sales to third-party retailers, but focuses on direct-to-consumer sales. The direct-to-consumer segment accounted for 87 percent of the company’s net sales in 2011 and the wholesaler segment served about 970 department store locations (Thompson A., Peteraf, Gamble, & Strickland, 2014). As shown in Appendix D, Coach’s focused locations have also been expanding immensely. Both factory stores and retail stores in North America have increased over the five-year p. Coach has also been able to maintain a strong position in other global markets.

Creative Marketing

Through market research and a specific design process, Coach has been able to differentiate their products from competitors. Under creative director Reed Krakoff, the company has been successful in developing extensive consumer surveys and focus groups to determine consumer preferences. The company found that by testing prototype designs and launching new collections every month, customers were more likely to visit a Coach store once every two months and made a purchase every seven months (Thompson A., Peteraf, Gamble, & Strickland, 2014). Part of their successful creative strategy was the redesigning of company’s stores. Not only were the store’s brighter and friendlier, but they started to carry different models and special product lines.

Weaknesses Brand Recognition Although Coach has a strong brand, it’s recognition in foreign countries can sometimes be a challenge. Within India, tradition and culture put a set-back on luxury fashion products. Garments of choice for formal occasions differ than what people wear in other geographic locations. Also, brand recognition is sometimes found amongst local designers in these types of locations. It may be hard for an outside source to market their brand if local consumers are already familiar with certain local designer brands.

Another issue Coach is facing is the dilution of the foundation of their brand. Coach’s factory stores target value-oriented customers, and although they have been a major success, many worry that they will dilute the company’s image someday. The destiny of the company lies in Coach’s ability to grow full-priced stores (Thompson A., Peteraf, Gamble, & Strickland, 2014). Rapid growth of factory stores could overtake the companies brand and image.

Opportunities Online Sales Coach has a strong position in global markets and has the opportunity to look for increased sales and market share through their website. It is not specific on Coach’s current website operations, but there is potential for the company to grow through this channel. There are many ways to connect with consumers not just through online sales, but through social media as well. Online sales are more convenient for customers who are not within range of stores. Although it takes away for customer interaction within stores, there are many ways to interact with consumers through media sites. Coach would be able to further their marketing strategies through online discussion communities.

Threats Competitors As mentioned earlier, the luxury goods industry has a strong competitor base. The pace of rivalry is quickening and becoming more intense. Several companies are moving towards diffusion and accessible luxury products. Similar products are beginning to be exposed to the same target groups. Companies are also on the look-out for counterfeit goods being sold.

Changing Trends

Unless you have strong customer loyalty, the constant change of fashion trends is a threat to many luxury goods companies. Continuous market research must be developed and analyzed to provide consumers with the products they want. If a company cannot keep up with the constant change of style, comfort, and functionality, customers will switch to other luxury brands.

Global Economy

The unstable financial situation of the economy is a threat to the luxury goods industry. Poor economic conditions can create a decline in consumer spending and therefore a decline in company sales. Although it’s good that there is a growing desire for luxury goods amongst middle-income consumers, this affects Coach negatively because many other competitors are now trying to target this market segment. Different income levels of consumers require different marketing strategies as well.

Question 5: Recommendations New Markets Coach should continue to move forward with its strategy to raise awareness and build share in new markets. The company should look to penetrate Asian markets because it plays a decent role in the company’s market share already. Instead of opening several new stores, Coach should focus on different forms of distribution and strengthen their multichannel distribution model. Opening too many stores and trying to handle several locations at once can put the company at risk. By focusing on a set amount of markets, Coach has been able to maintain a strong position in the chosen geographic locations.

Men’s Product Focus

Coach has a strong brand and position within the luxury goods market. It is a good opportunity for the company to target their products toward men and try to grow that market segment of their company. Because North America and Japan are the leading countries in sales and market share, opening new stores and testing marketing strategies within these two geographic locations would be a good start. Based on how successful the focus towards men’s products is, the company can look to expand their strategy into China markets as well.

Social Networking

Coach should work towards improving their online site and connecting with people through social media outlets. Online sales are more convenient for customers, and can allow Coach to connect with customers in an interactive way. There are many different marketing strategies to engage consumers online, and by creating discussion groups, consumers will be able to discuss the company and its brand. It is uncertain how much Coach pays for their current market research, but online discussion groups allows a company to see what consumers like and dislike about a business or brand. This could help save Coach on marketing costs. However, Coach’s current marketing strategy has been very successful.

Costa Rican clothes are similar to most Central and South American countries. There clothes were developed by the Climate of Costa Rica. Costa Rica Clothing today is separated into two groups traditional cultural clothes and modern clothing. Costa Rican traditional dress is used for traditional practices. Most of the cultural dress has layers. This is because of the climate of Costa Rica. You never know when it is going to rain because of its varied climate.

Traditional dress is only worn on special occasion such as when they dance. Both women and men have different style of traditional clothing. Usually the clothes are the colors of the Costa Rican flag which are red, blue , and white. Mens dress is very simple but elegant. Mens traditional costume usually have a few different things. The pants are a solid color which usually is blue or tan. They usually wear a white button down shirt. Then around the waist they wear a red cummerbund which is like a sash.

Around the neck of the man they would wear a kerchief tied around it. Then on their head they would wear a “chonete” which is a traditional type of Costa Rican hat. A Chonete is like a straw cowboy hat. Usually men in Costa Rica will not really wear shorts on a day to day basis but only to the beach despite the tropical weather of Costa Rica. Today in the fields Men still wear the traditional dress. Women’s traditional dress has a few important characteristics. The dresses are usually tailored in a special style.

All traditional dresses have thick ruffles that start at the shoulders and go out all the way down the dress. The dresses have no sleeves to cover the arms. They are usually the colors red,blue,and yellow. Another type of Costa Rica dress has a long ruffled skirt. This is usually made in shinny colored fabric. A white shirt is usually worn and a red cummerbund connects the dress at the waist. To top off all these wonderful dresses a flower is usually placed in the ear of the women.

Questionnaire for Clothes consumption NAME: CONTACT NO. OCCUPATION: e-mail: PLACE: DATE: Questions: 1) Approximately, how many times do you buy your clothes? a) Once a week b) Once every 2 weeks c) Once a month d) At the beginning of season e) During the sales period f) During the Christmas Festivities g) As the need arises h) Occasionally i) Rarely 2) From where do you usually buy clothes? a) Factory Outlets ) Retail Shops (unbranded) c) Brand’s Showrooms d) Malls e) Online Shopping 3) With whom do you usually buy your clothes? a) Friends b) Mother c) Father d) Brother/Sister e) Grandparents f) Alone 4) When buying clothes, you: a) Go directly in a particular shop. b) Go round in various shops. 5) Please indicate how much importance do you give to each of the following factors before you buy your clothes.   |Almost Always |Sometimes |Rarely |Never | | Fabric |[pic] |[pic] |[pic] |[pic] | | Design |[pic] |[pic] |[pic] |[pic] | | Colour |[pic] |[pic] |[pic] |[pic] | | Brand |[pic] |[pic] |[pic] |[pic] | | Comfort |[pic] |[pic] |[pic] |[pic] | | Fashion |[pic] |[pic] |[pic] |[pic] | | Price |[pic] |[pic] |[pic] |[pic] | 6) How would you rate the following statements?   |Strongly Agree |Agree |Disagree |Strongly | | | | | |Disagree | |I wear only well known brands |[pic] |[pic] |[pic] |[pic] | |I buy clothes depending on their colours |[pic] |[pic] |[pic] |[pic] | |I buy styles that suit me rather than what is fashionable |[pic] |[pic] |[pic] |[pic] | |I only buy the style that my riends wear |[pic] |[pic] |[pic] |[pic] | |I only buy the latest fashion as long as they suit me |[pic] |[pic] |[pic] |[pic] | |I create my own fashion rather than follow it |[pic] |[pic] |[pic] |[pic] | |I tend to stick to classic styles that won’t date |[pic] |[pic] |[pic] |[pic] | |I wear only clothes that are widely available |[pic] |[pic] |[pic] |[pic] | |I hate going round for clothes and I let others buy my clothes |[pic] |[pic] |[pic] |[pic] | |I search for sales and low prices |[pic] |[pic] |[pic] |[pic] | |  | | | | | 7) How important would you rate the following factors in influencing the choice of clothes purchased?   |Almost Always |Sometimes |Rarely |Never | |Fashion Magazines |[pic] |[pic] |[pic] |[pic] | |Beauty Magazines |[pic] |[pic] |[pic] |[pic] | |Television |[pic] |[pic] |[pic] |[pic] | |Radio |[pic] |[pic] |[pic] |[pic] | |Newspapers |[pic] |[pic] |[pic] |[pic] | |Billboards |[pic] |[pic] |[pic] |[pic] | |Cinema |[pic] |[pic] |[pic] |[pic] | |Promotional Leaflets |[pic] |[pic] |[pic] |[pic] | |Internet |[pic] |[pic] |[pic] |[pic] | 8) Do you think that wearing branded clothes would reflect:   |Strongly Agree |Agree |Disagree |Strongly Disagree | |Confidence |[pic] |[pic] |[pic] |[pic] | |Superior Image |[pic] |[pic] |[pic] |[pic] | |Exclusivity |[pic] |[pic] |[pic] |[pic] | |Snob Appeal |[pic] |[pic] |[pic] |[pic] |

Brand History Founded by: Yves Saint Laurent and his partner Pierre Berge Chief Designer: 1. Yves Saint Laurent 1962-2002 The Day of Birth: August 1, 1936 The Day of death: June 1, 2008 Reputation: He is considered by many of the world’s best- dressed people to be the inventor of modern fashion. Besides that, he is seen as the last of a generation of clothes designers that made the Rive Gauche (French for “Left Bank” of the Seine River in Paris) home to the most talented fashion designers in the world.

These designers include Christian Dior, Coco Chanel, and Hubert de Givenchy — all people who helped make Paris the international capital of fashion. CAREER: 1. Saint Laurent got his big break when he was only 17 years old. The shy young designer began to work for fashion legend, Christian Dior. 2. By the time he was 21 years old, Saint Laurent was in charge of Dior’s empire. He immediately started to develop a unique style that combined Dior’s elegance and tradition with a more wearable, realistic style. . Saint Laurent struck out on his own in 1961, opening his own fashion house where he created haute couture for socialites and celebrities. MAIN ACHIEVEMENTS: 1. Saint Laurent’s trendsetting clothes not only changed the look of high fashion but also the life of the average woman. 2. Aside from his haute couture clothing, he offered another clothing line for women available in department stores. The designs from this line often turned heads and changed the lives of the women who wore them. 3.

In the 1960s and 1970s, when women were joining the workforce in millions for the first time, Saint Laurent designed more gender-neutral looks based on pants and jackets. No longer did women feel like they needed to wear only skirts and blouses. The change met with resistance, but women those who wearing Yves Saint Laurent’s pantsuits would simply take off their pants to dictate what they were allowed to wear on more than one occasion. 4. Another clothing item of his that became popular was a jacket called “le smoking,” which is a square-shouldered tuxedo for women.

When the jacket first appeared in his 1966 fall-winter collection, it immediately became a groundbreaking landmark in fashion history because it blurred the lines between traditional male and female style. 5. Saint Laurent also changed fashion by using other types of pop culture in his clothes. For example, he created the Mondrian dress in 1965. These colorful dresses were patterned with the Dutch artist Piet Mondrian’s abstract and geometric designs. 6. Saint Laurent also aided the women’s liberation movement by challenging other socially accepted norms. . In 1971, Saint Laurent posed nude for his own perfume ads. This was shocking to many people. He did it to raise this question: Why is it more socially acceptable when a woman poses nude for an advertisement than when a man does? 8. He is credited with having introduced the tuxedo suit for women. 9. He became the first designer to use ethnic models in his runway shows, and referenced other non-European cultures in his work. 2. Alber Elbaz 1998-1999 3. Tom Ford 1999-2004 4. Stefano Pilati 2004- Logo Designed by: A. M. Cassandre Brand Main History:

During the 1960s and 1970s, the firm popularized fashion trends such as the beatnik look, safari jackets for men and women, tight pants and tall, thigh-high boots, including the creation of arguably the most famous classic tuxedo suit for women in 1966, Le Smoking suit. Some of his most memorable collections include the Pop Art, Ballet Russes, Picasso and Chinese ones. He also started mainstreaming the idea of wearing silhouettes from the 1920s, ’30s and ’40s. He was the first, in 1966, to popularize ready-to-wear in an attempt to democratize fashion, with Rive Gauche a |name.

He was also the first designer to use black models in his catwalk shows. Among St. Laurent’s muses were Loulou de La Falaise, the daughter of a French marquis and an Anglo-Irish fashion model, Betty Catroux, the half-Brazilian daughter of an American diplomat and wife of a French decorator, Talitha Pol-Getty, who died of drug overdose in 1971, and Catherine Deneuve, the iconic French actress. Ambassador to the couturier during the late 1970s and early 80s was London socialite millionairess Diane Boulting-Casserley Vandelli, making the brand ever more popular amongst the -European jet-set and upper classes.

In 1993, the Saint-Laurent fashion house was sold to the pharmaceuticals company Sanofi for approximately $600,000,000. In the 1998-1999 seasons, Alber Elbaz, currently of Lanvin, designed 3 ready-to-wear collections. Pierre Berge appointed Hedi Slimane as Collections and art Director in 1997, and they relaunched YSL Rive Gauche Homme. Hedi Slimane decided to leave the house 2 years later. In 1999, Gucci bought the YSL brand and asked Tom Ford to design the ready-to-wear collection while Saint-Laurent would design the haute couture collection.

In 2002, dogged by years of poor health, drug abuse, depression, alcoholism, criticisms of YSL designs, Saint-Laurent closed the illustrious couture house of YSL. While the house no longer exists, the brand still survives through its parent company Gucci Group. The pret-a-porter line is still being produced under the direction of Stefano Pilati after Tom Ford left in 2004. His style is decidedly more French than the overtly sexy image that Tom Ford perpetuated. Brand Communication For advertising his companions, the Yves Saint Laurent uses familiar faces from the general public.

In the beginning, Scroll Elela great names in fashion as Katoucha Niane, Betty Catroux, Loulou de la Falaise, Talitha Pol-actress Getty or Catherine Deneuve. Then, Kate Moss, Claudia Schiffer. The former supermodel Naomi Campbell is used for the campaign of the Autumn-Winter 09 collection. For the men’s fragrance “Night of the Man” is Vincent Cassel who embodies the new face of the brand. The house YSL applies to make his shows an event for which the jetset people jostling to sit in the front ranks. The venues are just as prestigious as the models occupying the podium.

The women’s collection Autumn-Winter 07-08 and was held at the Centre Pompidou in Paris on 1 March 2007, while the men’s collection for the same season was held in the workshops Berthier. Campaign Spring-Summer 2008 women has, in turn, held on the premises of the Foundation Yves Saint Laurent-Pierre Berge. The Creative Director Stefano Pilati is then, photographers Ines Van Lamsweerde and Vinoodh Matadin and the model is none other than Kate Moss. The Fall-Winter 2009-2010 collection create the event: it is first opened on the website of the brand, before being presented on the catwalk.

Since 2007, Stefano Pilati created the event each year to the streets with his “Manifesto”: a photo catalog of luxury brand Distibution to passersby on the street. In 2008 he was with the image of supermodel Naomi Campbell, photographed by the duo Inez van Lamsweerde and Vinoodh Matadin-distributed simultaneously in Paris, New York, London, Milan, Tokyo and Hong Kong. A cotton bag flanked YSL logo was also provided for the occasion. In 2009 he was with the image of Claudia Schiffer and accompanied by a bag with the initials of the brand, designed by Stefano Pilati himself, and a small USB key.

The brand dominates the world market with more than 30 % of the market share in the world and 80 % in the United Kingdom. Generally, Duress is seen as a trusted brand that provides wellness and pleasure to its users. Indeed, it has recently expanded its range of products for the prevention against Suds to a line of product intended to lawful users.

The history dates back to 191 5 DURESS with the birth of the London Rubber Company. With a little less than a century of experience, the brand is nowadays one of the most famous in the world. The term DURESS includes three essential qualities that are Durability (durability), Reliability (reliability) and Excellence (excellence). This level of quality Justify Duress’s reputation. Marked by technical progress that Justifies its reputation. This analysis will show how did Duress became the specialist of sexual well being and operates a change in the meaning of the product.

From a constraint to source of orgasm, Duress’s condoms have won the proximity of their customers. The first step will be to analyze the environment in which duress operates how it does influence the Brand. Secondly, we will analyze Duress in itself, showing the marketing mix. Student number 1226399 3 Figure 1 : Duress has a leading position in 16 countries 1-) The Marketing Macro environment of Duress: A) Demographical and cultural environment: The discovery of AIDS in the early ass’s had a strong influence on the sale of condoms because it is the only way to protect from getting infected.

This is mostly why the sale f condoms has increased a lot in the early ass’s. (Slack,2010) According to the world AIDS organization in 2013, 20% of the youth in Europe are not scared by AIDS and 13% of them think AIDS can be cured. This data demonstrates that HIVE is not really a factor that can still influence the increase in condoms sale. The real factor that motivates the purchase of condoms for the youth is the fear of unwanted pregnancy. And in this field, condoms are not the only effective way. Hence, Duress must find other way to attract customers. Waller, 2007) Many young informed of the risks. The main reason is that Student number : 1226399 they do not know anyone who is infected because of the lack of social visibility of the disease. (Hatchet, Trusses, Nelson, 2007) Condoms do not only protect from HIVE but also from other viruses such as Hepatitis B. Brand need to be very creative to find new strategy to target the new generation. – The Sexual Revolution: The sexual revolution is a movement that has been started in the ass’s and which continues its evolution even today.

It is essentially marked by the sexual emancipation of women, the affirmation of equality and the acceptance of sex outside of marriage and of traditional heterosexual relationships. Scoffer ,2012) The sexual revolution has partly occurred thanks to progress in medical research. This has strongly reduced mortality due to the fight against diseases affecting children and adults. Now, in the Western countries, most of the children have become adults. This is why couples started to voluntarily reduce fertility as a result of female empowerment as well.

Women are not only dedicated to their children and family anymore but they also have a career and can no longer afford to raise a big number of children, because of the change in their priorities. (Baboon, 2011) The entrance in the modern demographic regime, characterized by low mortality and low fertility has resulted in a voluntary choice for couples to adopt a contraceptive attitude. This change has disrupted the concept of sexuality in western countries and has allowed a rehabilitation of the pursuit of pleasure. Hence, sexuality can no longer be considered exclusively turned towards procreation. Collier ,2007) More and more people are turning to a moral that promotes fulfillment in life and they seek for orgasm, regardless of any desire to have children. 5 Also as the renewal of generations seems to have taken place, forms of non- productive sexuality (homosexuality, masturbation, sodomy’s), no longer appear as a threat to the future of human society. (Garlicky, 2011) This sexual revolution has a condoms. Nobody is now ashamed to be supplied with condoms, which allows its sale in mass distribution networks. It would have been unimaginable a few years ago to see vibrators and cook rings on the shelf of Boots or Tests.

There is a changing trends in society due to sex that has given Duress the opportunity to sell condoms massively through all the mass distribution channels. (Slack, 2010) Therefore, duress is now thriving in an environment where sex, far from being a taboo, as become an asset seller. Behaviors have changed, but we can also see that the institutions have also change their rules. The sexual revolution has significant impact on cultural behavior: In fact traditional movies are increasingly demonstrative of scenes that relates to sexual acts.

Such scenes are no longer prohibited. Watching Pornography is still not fully socially accepted, but there is an increasing awareness. (Garlicky, 2011) The TV show Sex and the City proved this assumption. The show follows the lives of four forty year old women. There are all very independent and they freely talks about heir sexual lives. They are not married and they live a very modern life. In this TV show the concept of homosexuality is fully accepted and naked scene take a big part. Celebrities behavior such as Mille Cyrus demonstrates this assumption.

She uses sex to attract attention on her. She appears naked in her last music video,’Wrecking Balls”, that reached 361 millions views on Youth in 3 months. (Youth. Com) Media are using sex all the time to advertise any type of product; as a result of the sexual revolution : sex is everywhere. 6 The brand is very aware of the latest trends and desires of its customers thanks to he “Sexual well being survey’: Duress has interviewed 26 000 individuals over 26 countries on their cultural and sexual behaviors to study its marketing environment in a global way.

This strategy had allowed the brand a very good understanding of the different markets’ environment they are targeting. As a result, Duress has managed to increase customers’ sexual experience. (Duress. Com) B) Political Factor : The degree of intervention of the UK governments in the political environment of Duress is quite important. Duress contributes to the government’s provision of free condoms through the I-J National Health Service. Also the government has not restricted any of Duress’s activities or operations even though the brand has a monopolistic position in the UK market because the company provides a public good. NUN. UK) Also, gay wedding is now part of the law as any other types of marriage, which shows an acceptance of the minorities. Surprisingly, the current global recession has not badly influenced the consumption of condoms. Actually, the recession might have helped improve the sales. This increase might be due to the fact that people are spending more time with their families rather than at work. Martin Lindquist for Fast company attests that the uncertainty of the time lead people to feel a need for protection at any level.

Also, the uncertain environmental context we’ve been experiencing has led people to feel a need for more basic and primitive needs such as safety but also sex. (Lindquist, 2012) D) Social Factors : the “Sexual well being survey’ : Duress has interviewed 26 000 individuals over 26 the Student number 1226399 7 different market’s environment they are targeting. As a result, duress has managed to increase customer’s sexual experience. (Dawn, 2008) However, the United Kingdom is country with a strong ageing of its population, which means that its sexually active target will slowly decrease.

In fact, there are 10 millions people in the united Kingdom that are 65 years old or more and this number would have doubled by 2050. (Uk parliament) II-) The Marketing Micro environment of Duress : 5 porter forces: this analysis is going to help understand and give clear clue of what has been driving the competitive industry and the profitability of this company. 1) Threat of substitute products Condoms are used to prevent users from unwanted pregnancies and Stud’s. Many people do not use condoms (Castes, Steiner, 2002).

People in long- term relationships, married couples, individuals who are willing to conceive babies, people who are too old and can no longer conceive, and finally those who are using other types of contraception. Some of them will have sex without protection and the other will use alternative products. (Castes, Steiner, 2002) Duress must face all those inconveniences in the market but the brand has managed to successfully solve this problem. They have introduced a sub brand: Duress Play, which focuses on providing couples with a new experience of sex. Duress play has eternally changed the meaning of the product in itself.

From a constraint, the condoms have now become a cause of sexual wellbeing and a source of fun. (Coked, 2012) In the European market, within the condoms industry, Duress has bigger share than any of its competitors. 8 In the US where Duress does not have such a good competitive advantage, the brand finishes second in the ranking, after its biggest competitor Trojan (75% of the condoms purchased in America). There are no big differences between Duress and Trojan except that Duress has a more varied range of flavored condoms. There are also no big differences in the prices.

However in the United Kingdom, Duress is the big winner of the competition. By spending growing large amount in Research and Development, the brand had secured a very strong position in the market when it comes to its rivals. Also it has plenty of exit opportunities. (Trusses, 2007) 3) The bargaining power on Customers The nature of the product in itself has enabled duress’s customers to have a great bargaining power because there is no cost to switch from one type of condoms to another. (Waller, 2007) 4) Bargaining power of Supplier : Duress owns lots of power station in strategic places around the world.

Thus the brand is protected from threats from suppliers, because duress has built itself a very strong network. (Collier, 2007) 5) Threat of new entrants : In the condom industry it is very hard to make a successful entry and the current market the threat of new entrants is very small. Brands such as Duress already have a good supply network as well as mass distribution channels. More importantly, they have a long-term know-how. There are very powerful and can afford very big investments to conduct research and to develop innovative new products. The Duress Atlanta range has cost 20 million dollars ND it tool 10 years to develop it.

This product is extremely complex and reflects the very high quality of Duress’s products. Hence, it is very unlikely to see new entrants entering the market successfully. 9 In deed, the condom is a health product that requires a high level of quality, new entrants will not have the mean to obtain a relevant quality, to build a brand image. A) The communication strategy Amongst the manufacturers of condoms, Duress does not conceive better or worse products than its competitor’s. In fact I am convinced that their success comes from their marketing campaigns.

Communication is the driving force that put Duress in their leading seat. The marketing and communication strategy targets 3 groups of customers 1) The young and experimented consumers (17-24). They are at the beginning of their sexual life and use condoms primarily to prevent unwanted pregnancy and Stud’s. They are looking for safe and quality product. 2) The older consumers (25-35), who already have a certain degree of experience. They take into account the comfort and the natural feelings. 10 3) Finally, the third group is all the couples of all ages in long-term relationships.

They are looking for new sensations to spice up their sexual lives in order to avoid monotony. This group is particularly interested by the brand Duress play. (Hatchet, Trusses, Nelson, 2007) Humor is a vital part of the advertising campaigns of duress and its brand identity. Simplicity and humor allows it to use metaphors to implicitly refer to sex and pleasure without offending anyone. It enables the brand to make the act of watching commercials fun. Advertisement is not perceived as a constraint but as an amusement for the viewer which makes him more conductive to purchase. (Richardson, 2001)

Since duress cannot show customers using the product, any kind of product’s performance or user’s experiences, they need to be imaginative. Advertisers must of the brand. This strategy engages the customer’s imagination and has lead to good profit. It prevents from censor and enables the brand to use the mass communication network such as TV spots. The credibility of the brand stems from the culture it conveys and its values. DURESS is a brand that can afford to use humor without risk, because it embodies quality in the industry for almost a century. Also the confidence and experience it inspires is fleeted as soon the name Duress is mentioned. Dawn, 2008) (See Figure 4,5,6,7 in the appendix) 11 To communicate, Duress also uses social networks. The firm is present on Backbone, it has almost 700 000 “likes”. The brand also have a twitter account. For the occasion of the “World AIDS day’ every 1st December, Duress has been established a very large operation on social network. The brand offers to donate a condom to charity for every person who shares a prevention message on twitter or Backbone with the following hash tag : #lecherousness. Such an operation allows the brand to advertise on a ere large basis and to build itself a charitable image.

Figure 2 : Large operation for World AIDS Day The brand also participates to several events such as the gay pride in lots of cities in the world to show its support to the gay community. (Aspired. UK) This enables the brand to target this community, which represents approximately 5% of the population of the United Kingdom. For the occasion they put a huge condoms on a char and give away thousands of condoms as shown below ( see Figure below) 12 Figure 3 : Aspired in London Moreover, in 2007 Duress has undergone a discrete but effective redesign of the logo ND the packaging.

To conquer the market of sexual fulfillment, this change was necessary; it enables the brand to look less masculine and closer to its customers. Used by the person who wears it but by both of the sexual partners. (Lindquist, 2012) Figure 4 : Change of the Design of the Logo and package 13 B) Products and Prices Different attributes enable Duress’s products to stand out from its competitors. The quality of its products is one of those attributes. It is conform to the international standard (ISO 4074:2002). Therefore it ensures the reliability to users. Sell quality products allows DURESS to be trusted.

Product’s design also plays a big part in Duress’s business performance. The firm has literally won the competition on shelf. The boxes are very colorful and visually attractive which enables the brand to differentiate from competition. Also the wide variety of product’s design makes it stand out on shelf. In such a competitive environment, this differentiation is a key asset of success. (Hatchet, Trusses, Nelson, 2007) In terms of innovation, the firm uses new materials such as the nitrite. Moreover and in order to answer the demand, Duress has created new types of condoms such as the fluorescent, the small or the XSL.

The diversification goes beyond the condom market; the brand also offers lubricants, vibrators and the new “Funereal”. The Funereal is an underwear for both men and women that enables long distant lovers to have sex via an APP. Figure 5 : “The Funereal” 14 Because the firm has a certain image of quality and reliability Duress offers prices above the market average. The way Duress understands the product allows them to practice very high price because it is a health product and an innovative one. However they still have a large range of price to fit with all the budgets: From E for he basic 3 condoms box to the Pleasure Max at EYE. Slack, 2010) C)Distribution strategy: are sold in 22 000 chemistries, 5 % are sold via the Duress’s online shop and finally 5 % are given away for Charity. Often the purchase is regulated by the brand awareness and the communication of the manufacturers; the arrival of Internet has permanently altered the way to distribute products. The concept of online shopping is quite innovative for shy customers. It represents an alternative way to purchase that breaks the barriers and enables to freely access information and knowledge of Duress products.

The website, facilitates communication with young adults around the I-J by providing accurate information on their sexuality. It creates an intimate relationship with the customers. (Crack, 1981) Also, Duress uses retailers to reach their targets customers in pharmacies and grocery stores. The brand owns a good network of wholesalers of health products. They resell the goods to smalls and mid sizes companies such as sex shop, convenience stores and vending machines companies. Those intermediates come to conquer smaller market share that are inaccessible for Duress. The transport and storage of these products is directly managed by Duress.

The longevity of the product as well as its ease handling enables a quick distribution and storage of goods without incurring losses. (Slack, 2010) 15 Duress creates specific design of the display to enable products to stand out on shelf. The goal is to solicit customers to consider the purchase and to make them keep the name of the brand in consciousness. V-) Critics : Today, Duress has a role of specialist of sexual happiness for a much more attentive audience. However, the targeting of the young audience can not be done without enquiring the market of smartness.

The Brand does not have any version of the web site for mobile phone. It could be a great way to ensure the brand is in the pocket of customer’s constantly. Also, sextons can be used with condoms, as a orgasm specialist, Duress should expand itself more on the sexton industry. To improve the communication strategy, Duress can do some partnerships with brands that uses sex to attract customers. For example playboy perfume or Axe. The Brand should also develop an “app” that enables to visualize all the closest Duress’s selling points.

The term ‘pop or popular culture’ refers to things that a large number of people say, do, or are familiar with at a certain place, in a certain time. It can be anything from games to fashion, technology, music, T. V. shows, toys, sports and even the way people speak. It is mainly based in urban areas, in large groups of people. It is also a job of the producers to keep up with these popular cultures. Even though it is constantly changing through decades, only the most popular trends and icons remain unchanged. Among these trends in the last 50 years, the three most important ones are mini-skirts, internet and the ‘Simpsons’.

These three have not only affected and changed the mankind; it has also changed the way people think. The miniskirt was invented in 1965. During the 1960’s, the women in Europe and America were going through many changes. It was the first decade in which all young women received full-time secondary education up to the age of 15 and this produced a huge boost to the numbers of now rapidly expanding universities. This not only meant a huge increase of working women, it also meant that women were now completely free and there was no need to depend on men.

There were legal changes afoot too. The 1967 Abortion Act legalized abortion and in 1969 the divorce law was reformed. The contraceptive pill was also widely available in 1961. These all lead to a huge movement and revolution in women’s liberation act. The miniskirt was both a symbol of women’s liberation and a tool of it. Although lots of designers have claimed to have invented it, the most popular one is Mary Quant. In 1960’s, Mary Quant ran a popular clothes boutique in London or ‘Swinging London’ as it was called in those days.

She felt the young females were ready for something daring, something new and exciting to support this sudden new feeling of freeness. She made this miniskirt with a hemline well above knees (generally 20 cm- about 8 inches or more above knee level). It was an emblem of rebellion for the young generation against the old. They were rejecting the beliefs and standards of their parents, as well as their fashion. It was a huge female revolution. Unfortunately, in the 1970’s the fashion industry largely returned to longer skirts such as midi or maxi.

This was mainly because the miniskirts could go no higher and the women wanted to be taken seriously by men for their brains, not for their looks or sexuality. But, these miniskirts had such an impact on women that it re-emerged in the 1980’s. Women realized that they could be both smart and sexy, and many began to incorporate the miniskirt into their business attire. However, it was more commonly worn by cheerleaders at sporting and other events. Therefore, it was also labelled the ‘puff ball’ skirt in the 1980’s.

They were also featured in many T. V. hows and films like ‘Sex and the City’. Miniskirts also aroused many controversies. Many countries like Madagascar, banned miniskirts as the government felts the women more vulnerable and exposed, especially in public. Miniskirts are also regarded as ‘sexy’ items of clothing. The fashion gives the impression that the wearers are sexually ‘up for it’ or in other words ‘asking for it’. Although these negative issues have caused lots of controversies in many countries, this trend or rather this icon has always left a huge impact in the female’s revolution.

In the past 30 years or so, there have been immense changes that have come about through technology. People today take for granted the great impact the computer has on our lives, making things easier, faster, and more convenient for them. Computers helped the world a lot and helped us take a large step to the future. Today, computers have been modified so significantly that they can do functions that may not have been perceived years ago. But, the most significant change in computer technology was the internet. The internet is a new revolution to mankind.

The first internet was introduced in 1969, during the Cold War. It was called the ARPA net and was invented to protect the flow of information to and from the military installations by creating a network of geographically separated computers that could exchange information via the NCP (Network Control Protocol). But, who built this network? ARPA stands for the Advanced Research Projects Agency, a branch of military that developed top secret systems and weapons during the Cold War. Four computers were the first connected in the original ARPA net.

But, as the network expanded different models of computers were connected, creating compatibility problems. But, to solve this problem, a better set of protocols called the TCP/IP was invented. However, this was just the start of the worldwide internet. The e-mail or electronic mail introduced the ability to send simple messages to other person in the network in 1971, followed by the file transfer protocol (FTP), which allowed information to be sent from one computer to another in bulk in 1973. However, as non-military uses of the network increased, more and more people had access.

Internet protocol software was soon being placed in every computer, many universities and research groups began using in-house networks known as Local Area Networks or LAN’s. Although, the ARPA net created the backbone of today’s internet, the internet we see today was only fully introduced in the 1990’s. Nevertheless, what impact did this internet have on our society? The internet took only four years to reach well over 50 million users. It has become the most important tool to humans today. Everyone has a use for it from the very young to the very old.

Not only do they allow us to send messages or files to any other person in the world, it also provides us with search engines that allow us to be able to find information on any topic imagined. Online banking and online shopping are also few of the other uses of the internet. Therefore, 30 years ago, the military introduced such a useful network of communication that today’s world would not be the same without it. In fact, it is one of the major contributors of ‘globalization’. There have been several animated T. V. shows introduced in the past 50 years.

But, these like the Disney were mainly aimed at children and generally had a typical cartoonish storyline. However, with the Simpsons it was a different story. The Simpsons was created by Mark Groening as shorts for the ‘Tracey Ulman Show’ and was bought by the Fox Network which began screening it as half-hour shows in 1989. Initially, its success was also restricted to the 9-16 years old age group. However, as new episodes started dealing with a lot of political issues, it drew many adults towards it. In fact, it was one of the first animated shows that were focused on issues dealt in the adult world, but, through an amusing, humorous way.

The Simpsons stereotypes and satirizes the typical lower middle class American family. As a matter of fact, one of the reasons it had such a major impact on society was mainly because it was the family that people dreaded to have. The level of humour used in it makes it like no other cartoon made before. It can be seen as both a remarkable piece of global culture and hugely successful piece of global television. It has also been translated into many languages around the world. The Simpsons, themselves are a simple family in a small town . All the characters in Simpsons are far more complex than in traditional animation.

Homer, the loyal but stupid father, Marge, the stereotypical housewife/mother, Bart, the rebellious son, Lisa, the unappreciated genius daughter and Maggie, the silent baby. They all play a huge role in making the Simpsons such a hilarious TV show. However, making it a stereotypical family show and dealing with lots of issues in the adult world has not only made it famous, the humour used and the way it is used from the dialogues to the on-screen action and even making it as cartoon figures has made it the show that is one of the most popular animated series, especially in America.

In conclusion, we can say the pop culture have made a huge impact in our lives. Miniskirts, internet and the ‘Simpsons’ is only few of the things that have significantly changed our view of different things in life. Fashion, technology, media and other pop culture will continue changing and who knows what significant trend and icon it will bring next to the world.

Indian Apparel Market Research Report By MD. FAISAL BBA (Studying) Major in International Business University of Dhaka Bangladesh E-mail: faisal. ib15@gmail. om The Indian apparel industry has a vast existence in the economic life of the country. It plays a critical role in the economic development of the country with its contribution to industrial output, export earnings of the country and the generation of employment. The Indian apparel industry has seen remarkable changes in the past few years and it is also one of the India’s largest foreign exchange earners. Embroidery being the traditional art form of the country has contributed hugely for apparel industry.

Indian embroidery market stands out as being extraordinary in the international markets. The Indian Market The Indian consumer is evolving and driving retail growth in India and companies in the fashion industry are reacting to this evolution through myriad options. The fashion market in India is witnessing strong growth owing to a young population, an increase in disposable incomes, which is leading to increase in consumption and thus the rapid growth in organized retail.

Private consumption growth contributes to more than half of the GDP growth and is growing in double digit figures. Several businesses are reacting to this evolution positively, both through pull and push phenomenon. Apparel today has the largest share of the modern organised retail in India i. e. 20% of the current market of Rs. 56,000 crore and this is expected to grow at a constant rate of 20% over the next 4 years. Bilateral Co-operation in this sector shows great synergies.

An Indo Italia Task Force on Fashion Design and life Style products has been created following an agreement between the Indian Ministry of Commerce and Italian Ministry of International Trade. On the Indian side members include FICCI – Federation of Indian Chambers of Commerce & Industry , NID – National Institure of Design while on the Italian side there is Confindustria, Altagamma, Universita’ Bocconi, ICE. With India being the second fastest growing major economy in the world, fashion industry is pushing itself to keep pace with the retail evolution witnessed in India.

Facts and Figures The global textiles and apparel trade estimated at US$ 450 billion and expected to touch US$ 700 billion by 2010 with demand for textiles and apparels expected to grow to 25 per cent from current figures where Asia will contribute 85 per cent. Clothing, textile and fashion accessories form 39 per cent of the Rs 55,000 crore organized retailing in India. The Italian designer Giorgio Armani’s company has signed a joint venture with India’s most valuable real estate firm, DLF.

Giorgio Armani Holding, a wholly-owned subsidiary of the Italian company, will take 51 percent in the venture, the maximum allowed for a single-brand foreign retailer in India. Armani will bring 10 million rupees ($250,000) to the venture, which would also act as a wholesaling firm supplying Armani-branded products to other independent retailers. The first Armani stores would be set up in New Delhi. Reliance Brands, a subsidiary of Reliance Retail, has entered into a 49:51 joint venture with Italian fashion house, Sixty Group, to retail its brands in India.

DLF has tied up with Armani ,Dolce & Gabbana Raymond, the Gautam Singhania owned ‘house of complete men,’ has joined hands, in a Rs. 50 crore, 50:50 joint venture, with the Italian fashion major Grotto Spa bringing in premium “GAS” brand apparel in India. Other Italian Brands in India are Gruppo Cadini, Gucci, Ermenegildo Zegna, Corneliani,Canali, Brioni, and Pal Zileri India’s asset base for this sector – Numerous qualified and semi-qualified manpower which is skilled and low on cost of Long drawn tradition of having produced high quality textiles for decades.

Apparel Market Consumer spending on apparel in India has grown over the last five years, touching the global benchmark of 5 per cent of the total income During the three years 2004-05 to 2006-07, investments in the textile sector has increased from US$ 2. 94 billion to US$ 7. 85 billion. In 2007, men’s apparel industry was mainly dominated by shirts (in value terms) accounting for 36. 5% of total men’s segment. India’s textiles and apparels industry is estimated to be worth US$49 billion where 39 per cent is accounted by the exports market. Currently India has a 3. -4 per cent share in world export of textiles and 3 per cent in clothing exports. Europe continues to be India’s major export market with 22 per cent share in textiles and 43 per cent in apparel; the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32. 6 per cent share respectively. Readymade garments (RMG) are the largest export segment, accounting for 45 per cent of total textile exports and 8. 2 per cent of India’s total exports. Future The demand for ready-made garments in rural India will surge at an annual rate of 16. 50% to reach Rs. 42,918 Crore or US$10. 1 billion by 2010. Men’s apparel industry will increase at a CAGR of 14. 86% during the two-year period from 2008 to 2010. Women apparel market (in value terms) is anticipated to grow at an annual averaged growth rate of 17. 79% till 2010. The organized apparel retailing in India is projected to surge at an annual averaged growth rate of 30% from 2008 to reach Rs. 52,289 Crore in 2010. Increasing at a CAGR of 24%, branded apparel industry for men will cross Rs. 25,000 Crore by 2010. n Increasing at an annual averaged growth rate of 25%, branded apparel industry for women is expected to hit Rs. 8,351 Crore by 2010. Readymade garments exports from India are expected to touch US$ 14. 5 billion by 2009-10 with a cumulative annual growth of 18 to 20 per cent, according to Apparel Export Promotion Council. Versace pret-e-porte is another Italian fashion house at the lower end of the fashion pyramid that is in the final stages of tying up with Reliance Brands to bring its products to India. Gas eyes US$49. 82m sales by 2011. The company will invest Rs500m till 2010 on its retail expansion, marketing and brand building in India. Gas may do local production outsourcing for sub-Rs1,000 range.

Shoppers’ Stop is planning to enter the luxury retail segment with large format retail stores which will house products from many of well-known luxury brands, including Louis Vuitton, Gucci, Zegna, Hugo Boss, YSL, Mont Blanc and Christian Dior. The company plans to invest Rs. 100 crore in this model in the first year itself. The organized lingerie retail market in India is expected to touch Rs 4,000 Crore mark by 2009. IT revenue from the retail segment is forecasted to grow at an annual averaged growth rate of 43. 41% by 2010. The Indian fashion industry is expected to rise at a stupendous pace of 22. 7% through 2012. Government Initiatives 100 per cent FDI allowed through the automatic route. Currently, 100 per cent foreign direct investment is allowed in wholesale trade, but only 51 per cent in single brand outlets. De-reservation of readymade garments, hosiery and knitwear from the SSI sector. Technology Mission on Cotton has been launched to make available quality raw material at competitive prices. Technology Up gradation Fund Scheme (TUFS) has been launched to facilitate the modernisation and up gradation of the textiles industry.

Scheme for Integrated Textile Park (SITP) has been started to provide world class infrastructure facilities for setting up their textile units through the Public Private Partnership model. The Apparel International Mart, in Gurgaon, will provide world class facility to apparel exporters to showcase their products and to serve as a one-stop-shop for reputed international buyers. The Indian Textile Plaza is being built, in Ahmedabad, to encourage exports to overseas markets. 50 textile parks are being established to enhance manufacturing capacity and ncrease the industry’s cost competitiveness. The Government plans to set up a technology mission on technical textiles with an aim to attract investment into the sector. The Government has increased the plan allocation for textiles by 66. 27 per cent in 2007-08 over that of 2006-07, making it one of the only two ministries that have seen such a high level of increase in budgetary support. The Indian consumer desires to possess international luxury brands as an inspirational product. Additionally, no Indian retail brand actually qualifies to be categorised as a luxury brand.

This readiness for luxury as an organised market, has been recognised throughout the world and international luxury brands are exploring possible avenues and tie-ups to enter the Indian retail market. Indian apparel companies have realised the huge potential of partnering with these global luxury brands wishing to enter India. This helps them not only to extend their portfolio into the luxury, super premium, premium segments, but also makes them probable sourcing partners for these brands in India as well as internationally. Vice versa, luxury brands gain access to well established distribution channels and customer base.