Pantaloons Case Study

Threat of new entrants: Retail industry has a higher barrier to entry. First, it is difficult to work out a good value chain as it involves a complex process. Second, it is difficult for new entrants to gain competitive advantage and earn above-average returns in such a highly competitive market. Besides,

In this paper, we have analyzed the business models of a top performing multi-brand outlet (MBO), Shoppers Stop with that of niche apparel retail brand, Fabindia. For the purpose of this study, we have limited the scope to apparels for both the players. We have done primary research on both Shoppers Stop and Fabindia through interviewing store managers. We are thankful to Prof. J. Ramachandran, IIMB for providing inputs on evolution of Fabindia business model. This helped compare the two extremes of apparel retailers where Fabindia is creating value by a community-oriented model, and working with artisans at bottom-of-pyramid while Shoppers Stop creates value through distribution and branding. Through its innovative business

The retail division has accepted an awesome part all through the world in extending productivity of customer items and endeavors. It is similarly the second greatest industry in US to the extent amounts of agents and establishments. There is no denying the way that most of the made economies are particularly relying upon their retail territory as a prepare of advancement. The India Retail Industry is the greatest among each one of the organizations, speaking to more than 10 percent of the countries GDP and around 8 for every penny of the work. The Retail Industry in India has drawn nearer as a champion among the most dynamic and snappy paced organizations with a couple of players entering the market. Regardless, every one of them have not yet tasted accomplishment in perspective of the generous beginning hypotheses that are required to measure up to the underlying speculation with various

This definition clearly indicates that mall is associated with wealthy, developed and industrialized societies. But two of the largest shopping malls in South Asia, namely- Bashundhara City and Jamuna Future Park are situated at Bangladesh; which is, according to Global (MPI) 2014, is the third poorest country in South Asia (Global Multidimensional Poverty Index, June,

▪ New Stores opportunities are limited due to not many new secondary malls been build in growing urban sectors

Today's shopping options are nearly limitless. There is always a new website or storefront pushing premium priced goods of questionable quality. A consignment shop on the other hand, carries only items whose quality is carefully checked. A well curated shop does not offer worn or poorly made goods. An indulgence at such a place guarantees fine fashion at an affordable

Barneys is planning to extend the target market by embracing budget fashionistas as well as current target customers who are fashion connoisseurs with a high disposable income and cutting-edge taste. It is because, according to Spending Pulse, Sales of luxury goods fell 27.6% in December 2009 compared with December 2008 including credit cards and cash. The pullback in luxury spending due to the deteriorating economy brought about a sharp slowdown and a torrent of extraordinary markdowns last year. The competitors including Bergdorf Goodman, Saks Fifth Avenue, and Neiman Marcus have been saddled with excess inventories and double-digit sales decrease. In order to do extend target market, Barneys

Refurbishment & redevelopment (Renovation of the shopping centre or optimise the building structure to better suit customers’ need )

Due to diversify into new products and services, they attracts 400,000 new customers, also they opened three new shops in 2014/15 with eight in the pipeline. It must also be noted that it has an increased tendency about 10.4% in operating profit across shops and online shops. Although it may be true that market performance is successful, however, to some extent, significant investment needed to support shops and online growth. 4.0

2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.

As a clothing store which is focusing on local designed and European designed clothes, our products are going to be high-end, fashionable, green and unique.

Threat of new entrants: The threat of new competitors is medium. The local market (Spain) is not saturated. There is no barrier for distribution entrance, as it needs low initial cost to start up a shop; however, the entry barrier for production is high.

It’s also time consuming for building establishment takes months or even year to finish. They need also to identify the best place for their retail stores.

The overall apparels industry in India has shown an almost 14 percent growth. Kids apparels is growing at a fast rate in India today.

Before the entry of organized retail sector in India, in unorganized retail sector, millions of people are forced to get their livelihood in the informal way as this was the sector where easy entry was possible with low capital and infrastructure needs and it acted as shelter for many unemployed. Traditional forms of low cost retail trade, from the owner operated local shops and general stores to the handcart and pavement vendors together form the bulk of this sector. But the growth of the supermarkets and the malls has reduced the business of these retailers nowadays. The report of BIMTECH (Birla Institute of Management Technology) says that the consumers may be benefited from the entry of such retail companies but the sufferers will be the unorganized retailers at large. They have clearly stated that such kind of sudden flow of the foreign retailers in the market may create huge unemployment and the social unrest. In the suggestion they state that the retailers of the unorganized sector should be trained properly before made face such type of competition. The scope of strong regulating mechanism is there for such a reform. It is fine to say that the training should be given to the unorganized retailers but is it really feasible? Can millions be trained and motivated in the direction? It is difficult in reality. Today almost every customer is used to of foreign brands when the goods consumed of Electronics, automobiles, mobiles etc. Even majority have not been