National Institute of Fashion Technology Hyderabad

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National Institute of Fashion Technology Hyderabad NATIONAL INSTITUTE OF FASHION TECHNOLOGY HYDERABAD FASHION INDUSTRY INTERNSHIP & TRAINING (FIIT) Lifestyle International Private Limited Hyderabad OPERATION AND MERCHANDISING IN FASHION APPARELS Submitted by Abhishek Sambhav (Batch of 2006 – 08) The Department of Masters of Fashion Technology (M.F.Tech) 1 2 3 ACKNOWLEDGMENT This project has been exclusively undertaken keeping in view of the general understanding of fashion management studies. I would like to thank Prof. Mr. G.H.S.Prasad, Course Coordinator, mine other faculty members, Department of fashion management studies (FMS); NIFT, for giving me such an opportunity to work on. I would like to thank faculty members who guided me in the process. This project has been exclusively undertaken keeping in view of the general understanding of store policies .I would like to thank Mr. Sandeep Narayan, Business Manager, Lifestyle, Hyderabad and Mr. Mohan Kumar, HR Head for allowing me to intern at Lifestyle, Hyderabad I express my sincere gratitude to my guide Mr. Madhav Rao, concept manager “Splash” who guided me at every instance and supported me throughout the report and its compilation. I would also like to express my gratitude to all members of the Lifestyle who extended their full cooperation in course of my report and studies. Without the help of these people my report would not have been effective and completed. I am also thankful to those retail outlets of Hyderabad where I carried out my studies in relation to mine Fashion Industry Internship & Training (FIIT). 4 CONTENT 1 EXECUTIVE SUMMARY 003 2 INTRODUCTION TO RETAILS 004 3 INTRODUCTION TO LANDMARK 008 LANDMARK GROUP – LIFE STYLE 4 009 5 LIFESTYLE HYDERABAD 011 Concepts at Lifestyle: 5.1 012 The concept “splash” 5.2 014 6 PRODUCT KNOWLEDGE Ladies department 6.1 017 Men’s department 6.2 048 7 MARKETING 073 7.1 Loyalty programme 074 7.2 Loyalty programme at other stores 075 8 ORGANISATIONAL STRUCTURE 076 9 WAREHOUSE 077 10 SWOT ANALYSIS 086 10.1 Location analysis 087 10.2 Women’s wears swot 090 10.3 Menswear swot 094 10.4 Marketing swot 098 10.5 Visual merchandising swot 099 10.6 CRM swot 099 5 11 OBSERVATION AND SUGGESTION 100 12 LEARNING 102 12.1 Visual merchandising 102 12.2 Buying 103 12.3 Replenishment 104 12.4 Types of stock 104 12.5 Discount 104 6 EXECUTIVE SUMMARY Lifestyle stores are a part of the Landmark Group, Dubai. The group began with a single children’s store in Bahrain. Since then it has expanded exponentially throughout the Gulf, Sub continent, Middle East and is still growing. The store was established in Hyderabad in the year 2000. The shop-within-a-shop concept is what Lifestyle is aiming at. Hence Lifestyle has divided its outlet between five lifestyle concepts – Baby shop, Shoe mart, Splash, Home center and Lifestyle. It has positioned itself as a trendy, youthful and a vibrant brand. And it targets the upper and above upper class segment. This report gives a closer look at the concepts, products, buying, replenishment, functioning, strategies and maintenance of the store. It also provides an insight of the functioning and operation of fashion merchandising especially about “Splash” concept and also of the warehouse. The observations made during the market surveys and the suggestions made on visual merchandising of the store have also been recorded. This report helps in better understanding of the art and science of retailing as implemented at Lifestyle, Hyderabad. 7 AN INTRODUCTION TO RETAILS The Indian Retail Sector is at an inflexion point, with changing demographics driving growth of organized retailing and driving growth in consumption. With changing demographic and economic profile of the Indian population, India is expected to experience an accelerated consumption over the next few years. Further, the increase in consumer spending would be driven by nuclearisation of families, increasing population of working women and new job opportunities in emerging service sectors such as IT Enabled Services. With declining interest rates an average Indian is not averse to taking loans. Not only are the demographic factors becoming more favorable but also the growing media penetration is leading to a convergence of aspirations of various classes of consumers. In sharp contrast to the global retail sector, retailing in India – though large in terms of size – is highly fragmented and unorganized. With close to 12 million retail outlets India has the largest retail density in the world. (Source: CII Mc Kinsey Report titled ‘Retailing in India, the Emerging Revolution’) However, most of these retail outlets belong to the unorganized sector. The inability of the unorganized sector to offer a wide range of products along with artificially inflated costs due to various factors have presented opportunities for growth in the organized retail sector . Migration from unorganized to organized retail has been visible with economic development in most economies. Organized retail derives its advantages in generating operational efficiencies while simultaneously catering to rising consumer aspirations. Size drives economies on procurement, and lowers logistics and marketing costs while delivering better value to customers in terms of lower price, better quality, greater selection, improved service and in-store ambience. 8 9 Evolution of Indian retail Modern Formats/ Historic/Rural Traditional/Pervasiv Government Reach e Reach Supported International Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and 10 Pop/Kiranas Weekly Markets Village Fairs Melas Source of Neighborhood Availability/ Low Shopping Entertainment Stores/Convenience Costs / Experience/Efficiency Distribution 11 12 INTRODUCTION In sociology, a LIFESTYLE is the way a person (or a group) lives. This includes patterns of social relations, consumption, entertainment, and dress. A lifestyle typically also reflects an individual's attitudes, values or worldview. Having a specific "lifestyle" implies a conscious or unconscious choice between one set of behaviours and some other sets of behaviours. In business, lifestyles provide a means of targeting consumers as advertisers and marketers endeavor to match consumer aspirations with products. The word "lifestyle" apparently first appeared in 1939. ABOUT THE COMPANY Since it’s foundation in 1973, The Landmark Group turn over has rapidly grown into a retailing giant in the Middle East and India. Focusing on providing customers with good service and value for money, the group now has over 400 outlets across eight countries. Head quartered in Dubai at the Oasis mall.Life style is a part of the Landmark Group, Dubai. The group began 34 years ago, with single children’s store in Bahrain. Since then it has expanded exponentially and today it has 400 outlets throughout the Gulf, Sub continent, Middle East and is still growing. Lifestyle began its operations in India in the year 1998. Currently it has 12 stores throughout the country. The first store was established in Chennai in the year 1999. The next stores were Hyderabad (2000), Bangalore (2001), Delhi, Gurgaon (2002), Ahemedabad, Mulund and pheonix malls, Lower Parel (2003), Malad (2004).Recently a new store has been brought in Jaipur after Pune. Since its conception landmark group has seen consistent and steady growth. However, in the past decades it has shown substantial growth in sales. Significant investment in business, manpower, and information technology has contributed to the growth in stores by almost 300% from 1997 to 2000. The project is to discuss mainly about the store policies in apparels section basically “Splash” followed by lifestyle, its price offerings, assortments and brands availability. The internee will also try to correlate the theory and practical observations. 13 THE MANAGEMENT TEAM CEO – Mr. Micky Jagtiani (Landmark group, Dubai) E.D. (India) – Mr. Kabir Lumba (Lifestyle International Pvt Ltd, India) Splash concept – Mr. G. Kalyan (Menswear, Lifestyle, India) Mr.Junaise Rehman (Womenwears, Lifestyle, India) LANDMARK GROUP – LIFE STYLE VISION Growing customer by customer, concept by concept, country by country. The world will call it success. We call it a sound foundation, for bigger things to come. MISSION To become the foremost retailer in the Middle East, by providing it’s customers with a large variety of high quality at exceptional value under one roof. GROUP PHILOSOPHY • Complete customer satisfaction • To aspire to be the no:1 in each field of operation • International standards • Research and development • Manpower development and training • Total quality approach • Cost control • Speed and simplicity • Transparency PRODUCT POLICY Creating an environment where every member of the organization strives towards excellence in retailing to offer complete customer satisfaction. QUALITY POLICY • Providing consistent quality in all our products and services by adopting the highest standard of quality. • Providing and unparallel shopping experience • Creating an environment where every member of the organization strives towards excellence in retailing to offer complete customer satisfaction. 14 LIFESTYLE AS DEPARTMENT STORES The last half of the nineteenth century witnessed the emergence of the department store. This form of retailing was totally different from the general store. Instead of the hodge-podge arrangement of stock, the department store offered carefully selected merchandise in specific departments. As result, customers could make quick
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