Entry strategy for a retail brand which forays into the Indian Saree Market

1. Brand X- Entry Strategy
Presented by- Shayantani Deb Roy

2. Scope
One of India’s leading Fashion accessories company is now planning to foray into Sarees. They
are clear that they are quite likely to steer away from the ‘mass segment’, and come up with a
retail brand for the upper middle class and affluent consumers, operating in the mid to high price
range, but catering to all occasions – regular or special. They seek inputs on constructing their
entry strategy, particularly from a point of view of:
Estimate the market size of Sarees, and Understand the market construct?
Inputs on constructing the retail brand – store & brand level expectations?
Inputs into merchandizing? How many sarees to stock for shoppers to perceive that we have a
good range / depth and width of selection?

3. Market Size and Construct

4. Market Construct
Fragmented Market
Dominated by unorganized
Players
Emergence of brands is
new
Complicated supply chain
Large number of SKUs
(stock keeping units)
Lacks quality assurance and
pricing is perception based
Does not offer opportunity
of consolidation
Scaling up is difficult
Not profitable to focus on
only one segment
Transitions
Store based retailing to
Omni-channel retailing
Unbranded to branded
Utility based purchase to
occasion based purchase

5. Market Size
35,594 37,241 39,018 40,941 43,038 45,418
4.34%
4.63% 4.77% 4.93%
5.12%
5.53%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0
10,000
20,000
30,000
40,000
50,000
2015 2016 2017 2018 2019 2020
Indian Saree Market (2016-2020) (INR Crore)
Market Size Growth Rate
60%
40%
Indian Saree Market 2016
Mass market Mid Priced to Premium
Target Market
CAGR- 5.09%
Target Customer profile – 25-50 years, fashion and trend conscious, working professionals, preference for comfort and
convenience, brand conscious, preference for designer wear, sarees for wedding trousseau and occasion wear.

6. Market Forces and Opportunities

7. Market Forces
Competitive Rivalry: High
Intense with large number of
unorganized players, small stores as
well as prominent brands
Supplier Power : High
Suppliers exercise considerable power
because some raw materials or fabrics
are available only in a particular region
or state
Threat of substitutes: Medium
The threat from other traditional
apparels and western wear exists but
yet the prominence of saree as on
occasion wear is high
Threat of New Entrants: High
New entrants keep emerging in this
market since entry cost is low. However
product differentiation is a challenge in
this market
Buyer Power: Medium
Traditional fabrics such as different
kinds of silk such as Kanchipuram silk,
pochampally etc. are specialities of the
particular state and buyers cannot
exercise much power in getting the
saree at their desired prices.

8. Consumer profile
 The target customer group in the age bracket
of 25-45 years mostly perceive saree as a
occasion wear apparel for festive occasions,
wedding etc.
 It is not much preferred as daily wear in metros
and Tier 1 cities
 Working women do not generally prefer
wearing a saree to office. They prefer other
functional wear which offer greater comfort and
convenience
 Younger women generally prefer light weight
sarees for convenience and this market is
untapped to a large extent
 To tap into the daily wear segment a revival is
required by making it more pliable. Variants
such as saree gown, sari skirts and pre-stitched
saree segment are a lucrative segment that
should be tapped
 Designer saree and corporate saree segment
holds lot of promise
Market Opportunities
Favourable Demographics, Psychographics and
Socio-economic factors
 Saree comprises 50% of women ethnic wear market
 Increased propensity to spend due to rapid
urbanization and rising disposable income
 Increase in number of working women
 Film Industry contributes to revival of popularity of
sarees
 Rising brand consciousness and fashion consciousness
among women
 Revival of sarees as a corporate wear, daily wear
 Shift from price sensitive to brand conscious customer
profile
 Saree is an integral part of Indian wedding trousseau
 Preference for wearing saree is very high in Southern,
Eastern India

9. Competitive Landscape and Brand Positioning
Satya Paul
Manish
Malhotra
Sabyasachi
Mukherjee
Ritu Kumar
Nalli Silk
Sarees
Deepam
Tarun Tahiliani
Kalamandir Silk Sarees
Fab
India
Gaurang
Kalanjali
Sarees
Designer brands
Traditional/festive/Occasion
wear
Meena
Bazaar
Neeta
Lulla
Brand X

10. Retail brand Inputs

11. “Think Trendy, think fashionable, think
designer- think Brand X”
• Create a brand with an excellent recall value
• Entering into the space of brands like Nalli,
Kalamandir as well as designer brands such as
Satya Paul, Manish Malhotra
• Creating an ‘omnipresent brand’ , presence
across all styles such as office wear, occasion/
festive wear, daily wear and so on
Store and Brand Level Expectation
“Global store for your local needs” – maintain
local flavour with a global touch
• The store should include the local specialities but at the
same time should also have a diversified categories of
sarees.
• Pay in store 1 in City A and pick up in store 2 in City B
based on product code
• Customization of sarees based on your need (corporate
wear or occasion wear) by providing inputs to the designs
available on catalogue
• Pan- Indian presence- Metros, Tier 1, Tier 2 cities and
wide display range
• Shorter shelf life for products by taking into
consideration changing fashion trends, seasonal trends
etc.
• Maintain optimum stock for about 3-6 months to avoid
having ‘out of fashion’ stock
• Categorize display based on age demographics( 25-35
years, 35-50 years) and purpose (wedding trousseau,
corporate wear, festive/occasion wear)

12. Last Words
Making one’s presence felt in a dynamic , highly competitive and fragmented market is
difficult. The Indian Saree Market is characterized by intense competition from branded
as well as unorganized players. Brand X should work on building a strong brand image
as an upmarket brand with a good recall value. It is difficult to ensure profitability by
focussing on a single category and thus Brand X should position itself as a designer
brand, daily wear brand as well as occasion wear brand