Forever New Case Study Essay

Indian sell SectorIndia is ace of the some privilege qualified sell destinations in the knowledge domain. Indias twin maturation engines of economic growth and demographic profile set it apart from some other nations and present a compelling business case for global sellers looking to enter the market p wind. PwC explore indicates that Indias retail sector is worth(predicate) US$ 350 billion and has a deal(p) organised retail penetration of 5 to 8%. innovative-fangled trade emerged during the 90s, primarily in the aliment and grocery sector, and is now maturement at a heighten Annual emersion Rate (CAGR) of 15 to 20%. A large market potential for a arrange of categories is indicated by low ORP, change magnitude urbanisation, growing incomes, increasing consumer confidence, etc. Indias retail sector comp encour get alongments organised and unorganised partici boxers.Given the size of the atomic number 18as retail market, PwC research and other reports suggest that the 12 zillion mom-and-pop monetary funds comprising Indias unorganised market can co-exist with redbrick trade players. Recognising the semipermanent growth potential of Indias retail market, some of the countrys largest conglomerates nurse completely(prenominal)ocated billions of dollars to launch large scale retail initiatives that span cash-and carry, food and grocery, books, music and leisure, gems and jewellery, footwear, app atomic number 18l, accessories, etc. India-based retail incumbents argon expanding their presence crosswise a range of categories, experimenting with st yearss, launching private labels, strengthening supply cosmic string systems and more. globose retailers are worrywise assessing the Indian market with keen interest. They take a crap prize that the nigh wave of growth in terms of generating revenues, reaching smart customers (including the large number of affection- partition consumers) and harnessing research and development (R&D) a nd innovative skills. An shoot for middle-class of 300 million consumers, a large demand-driven creation of ergocalciferol million untried consumers and a relatively untapped rural population of 700 million masses constitute the growth story. Besides, a strong gross domestic product growth, rising consumer confidence, consumption-based behaviour, increasing incomes and a large pool of consumers have do India one of the beings most attractive retail destinations. study demographic groups are driving purchases across categoriesSources PwC analysis Capgemini, Merrill Lynch wealth ManagementIndias sell Fundamentals foodstuff sizing Compound Annual Growth Rate Unorganised Sector Organised retail Penetration retail Density Contri onlyion to GDP US$ 350 trillion 15-20% 12 million mom and pop hold ons 5-8% 6% 14%Indian economy displays resilience in the midst of global crisis.Source primitive Ministers Economic Advisory Council, G all overnment of IndiaDemand driversDemanding consu mers Indian consumers are demanding access to products and military services that delight and excite them, are of nigh quality, and provide value for money. Increasing incomes Strong GDP performance, capital market growth and the emergence of fresh industries are creating new millionaires and boosting income levels. This acts as an bonus for consumers to spend more on products. They are also experimenting with shuffles, trying new products, etc. Evolving consumption patterns Tradition e genuinelyy, the focus of Indian consumers was on saving. However, positive macro-economic fundamentals, an evolving retail market, life vogue influencers, etc. are ensuring that consumers spend more across categories. a nonher(prenominal) aspects, bid the emergence of double-income stomachholds, easier access to credit and societys sufferance of self-indulgence, are changing purchasing habits.Supply driversExpansion The growth of moderne trade and intricacy plans are enabling consumers to ea sily access retail products and services across urban, Tier II and Tier III cities and towns. Growth opportunities around high growth categories in the retail sector accept childrens wear, accessories, consumer durables, leisure, apparel and footwear. cutting entrants around of the worlds largest and most prestigious grunges and retailers have a presence in India. Those who have non yet entered India are assessing the market with interest. The central government youthfully took a decision to concede up to 51 percent foreign forecast investing (FDI) in multi- soft touch retail and raise the limit for overseas investment in single- bulls eye retail to 100 percent.Benefits of FDIConsumers plethora of options with better quality. Government exchequer Payment of indirect taxes by means of the supply chain by the modern trade players, primarily service tax. Farmers/Producers Establishes efficient supply chains that colligate farmers and s inwardness manufacturers directly with retailers which maximises value for stakeholders. Together with back-end infrastructure, this will minimise wastage (especially of clean-living foods and vegetables), increase farmers realisations, encourage best practices in crop management and change food safety and hygiene.Unorganised Trade Mom-and-pop strains can exist on board modern trade players and can explore partnership models (e.g., sourcing, franchise partners) in a rapidly changing retail environment . Indias retail sector is an evolving market. The sector will grow and develop over the next four to six decades, since consumers will earn more, those below the poverty neckc rushh will cross over, the gains from economic growth will be tangle more inclusively, etc.Pune Retail ScenarioThe retail sector in Pune was before confined to a few markets which were unorganised, chaotic and crowded. In the last 2 years, however, the rise in modern retail outlets can be seen across the city. Koregaon common place, Inorbit , Phoenix Market City, Pulse, Kumar Pacific Mall and Amanora townsfolk core are the new ones that have joined the already existing malls give care S.G.S Mall, Mariplex and Central to name a few.Source CBRE India Retail Market trance 2011Source CBRE India Retail Market ViewSource CBRE India Retail Market ViewPune has come a long way in recent times. The IT market, automobile boom, student community, thriving service sector, robust real commonwealth market and increase in the number of professionals have led to an expansion of the city. This rapid urbanisation, and the new demands of Punes global citizens, has led to a rise in the number of malls, offering high-end brands.Introduction forever and a day new- formed is a way clothing and accessories brand founded in Melbourne, Australia. It was started by Dipendra Goenka and Amanda Goenka, an Indian-South African tally in 2006. The brand celebrates the distaff beauty of women, a signature style flowing through e precise creativ e element. Collections are inspired by global trends in art, film, music and theatre as well as haute couture data track shows in Paris, London, Milan and modernistic York. It was started as Dipendra Goenka saw an obvious snap which was not only restricted to the Australian market but all over the world. With perpetually untested, the Goenkas targeted daughters who are willing to let on with their mothers, a group that flies well at a lower place the cultural radar. Normally it gets very difficult for a woman who is on her far side of 40s to pare with hot pants and play suits of her daughters choice, and hence always tonic is a one of a kind bloodline which makes women of all age groups comfortable and creates an environment for all ages groups who prefer ethereal to tense range. constantly fresh has created a fashion empire based nearly the frilly and womanly It is one of the fastest growing Australian brands, incessantly newly emerged in late 2006 as a start up re tailer and now trades over 250 stores in 11 countries globally. The company was restructured in 2010 to support its growth which values it at about $108 million, although the self-command remained unchanged. While ceaseless(prenominal)ly novel is best known as an Australian retailer, the 250-store chain already includes outlets in China, India, sunrise(prenominal) Zealand, Singapore, South Africa and Turkey. While incessantly News restructure meant that it was impossible to say how much the chain made in 2011. Accounts filed with the Australian Securities and Investments Commission showed that between June 25 and July 31 in 2011 it cleared $480,000 profit on about $1.9 million worth of sales. It had assets of just about $50 million and employed about 700 heap. evermore New in IndiaForever New was launched in India soon by and by it was launched in Australia. It has its head office in Noida, Uttar Pradesh. It also has its branches in Delhi, Mumbai, Bengaluru, Pune, Hyderabad and Kolkata.Segmentation, Targeting and Positioning In the Indian scenario the segment for Forever New will be women of almost all age groups starting from 15 years. They can be teenagers or college going students, fashion conscious girls, celebrities, elite class of women or house wives involved many in social activities etc. The target consultation for frilly, ultra feminine products of forever new ranges from 15 to 60 years as the visualises are on the classics edge. Along with that it does make armys inspired from the runway for the fashion conscious women.For the teenagers it has edgy, cute and girly designs. It has distinguishable price ranges for women of the elite class and celebrities and provides them with luxurious fabrics and designs. For the women aged 40-60 it has frilly, elegant clothes with a soft delicate palate so that it suits their age and style and doesnt look flashy. abroad it positions itself as a middle range brand which caters exclusively to women of a ll age groups primarily from 15 to 60, but in India generally after the age of 30-35 women do not prefer it. Hence in India it has positioned itself as a very chic, feminine, high fashion expensive brand which caters to women of age group from 15 to 35.The Marketing MixProductThe products of Forever New are exclusively for women and have a wide variety under them. Under the clothing section they have dresses, tops, pants, skirts, denims, shorts, knitwear, coats and jackets. They widen their range with a beautiful collection of bags, sunglasses, shoes, jewellery, hats, belts, scarves and gloves. The products are very feminine, frilly, and classy and generally have soft colours. The quality of the products is very good especially the choice of fabrics or materials for each piece. radiation diagram-wise the products are according to the a la mode(p) fashion forecasts or they are just plain simple classics.PriceDifferent products have diametrical price ranges, starting from Rs 800 to Rs 15,000.PromotionsForever New in India promotes itself through hoardings in malls. It also gives out its products for shoots in fashion magazines for which it gets due credit, hence displaying its a la mode(p) collection through print media. Exhibitions are put up in Mumbai to create brand cognisantness. They also do mobile marketing by sending an SMS to every customer informing them about their new offers and sales. It gives away broad catalogues to state who enter their stores to increase its brand awareness. It has an online shop website which displays and sells the latest collections.PlaceIt sells through 2 different channels. Stores and Online. In India Forever New doesnt have stand alone stores. They are located in malls. The head office is in Noida but the inventory is shipped from Australia to each store in India separately, even though the products are manufactured in China.Forever New, PuneForever New is located in 2 different malls in Pune Town magnetic core Amano ra, HadapsarTown Centre Amanora in Pune is a life style retail centre, spread across 20 lac sq. ft. It is set according to world class standards, it is articled to be the retail and cultural epicentre of Pune, ply to both Western and Indian sensibilities, it has everything from aid to mass retail, cinemas, quick service restaurants, cafes and fine dining options. Town centre is destined to get a steady stream of customers, keeping them engaged throughout the day and create a profitable equation for retail partners. The localization principle is an advantage for Forever New as it has almost all kinds of batch coming to the mall out of which a absolute majority are young women from the age group of 15-35 be pretend the mall is situated right at the entrance of Amanora Township spread across 450 acres and is near the Magarpatta area, the hub of IT professionals. Koregaon Park PlazaKoregaon Park Plaza built on atomic number 63an theory, launched on second March 2012 is a world class attraction with a premium retail mix and the epitome of shop entertainment where scrutinizeors will run into a host of wonderful, engaging activities. The retail positioning of the mall is reflect by its location in the heart of Pune, at Koregaon Park. This combination of centralized location and the malls world class architectural features positions Koregaon Park Plaza as an appealing destination for tourists & shopaholics of Pune. The location shouldve been an advantage for Forever New had the mall been as successful as promised but unfortunately Koregaon Park Plaza is not doing so well, but loyal and uniform customers of Forever New do visit often and shop from there. Since the mall is isnt doing well, it is very difficult to form new customer relationships leading to less brand awareness.Forever New in Town Centre Amanora, HadapsarIt is a small store in a rectangular format. Size 375 sq ft. Approximately. The customers that come to this store are mostly young girls (teenagers), IT professionals or housewives of the velocity middle or high class. Store LayoutThe store in Town Centre Amanora is a small, congested store. It has very less put to endure around. The focus does not go on the primary groyne. The nesting table at the entrance takes up too much space. The trial rooms are big and well accommodating. There is no right-hand(a) defined space for accessories. There is no defined path for the customerForever New in Koregaon Park PlazaThis store is in rectangular format with a fairly good size. Size 400Sqft Approximately. The customers that visit this store are mostly loyal customers and are located far away from the Magarpatta area. It also has college going girls coming in to store. Women/girls from upper middle class or high class also come here to shop. Store LayoutThe store in Koregaon Park Plaza is comparatively bigger and spacious. The store provides a well defined path for the customer. It has been put up in much(prenominal) a wa y that the focus goes on the right places. The store is very spacious and welcoming. It attracts attention.Common FeaturesAlmost all the multinational stores have a Visual Merchandising guideline from their country head office that they have to follow. Some of them are The collection stories and their display criteria. For instance, the way the story for is be spring it collection has toTropical Fantasy and the displayed on the primary wall is already decided and The sent window by the display Australian head office. design too comes from the Australian head office. The basic store characteristics, like the humungous beautiful mirror behind the cash counter, the chandeliers, the white walls, the fixtures, nesting tables, draw rooms with maroon curtains, the chic and fun soundtracks, the comment book, the catalogues etc. whatsoever things do not get sold off after a particular period of time are sent back to Australia. The collection is up involutiond every month. Everything eac h store. Sales happen twice a year. This brand wants to ensure that the customer have a first class project season visiting their store. So that when they walk out they form an double of the brand in their head and position it as a classy, feminine and delicate place. comes from theAustralian head office directly toBrand Portfolio wish well mentioned before, Forever New is an exclusive womens wear brand. It has an ultra feminine style and the designs are inspired by classics and latest runway shows of New York, Paris, Milan and London. In India it is considered as an expensive brand. It uses expensive and delicate fabrics like silk and lace for its products. It provides a good visual experience when one enters its store. groups of women. The products are like the brand itself, delicate and beautiful. It has a wide variety of products and sizes for all the ageSizesWomens Sizing ChartMeasurement Point Bust racing circuit Waist Circumference Hip Circumference 4 74 57 83 6 79 62 88 8 84 67 93 10 89 72 98 12 94 77 103 14 99 82 108 16 104 87 Clothing International Size ConversionXS S M L 4-6 8-10 12-14 16Footwear International Size ConversionAustralia US UK Europe 5 5 3 36 6 6 4 37 7 7 5 38 8 8 6 39 9 9 7 40 10 10 8 41Ring Size Guide (measurement is the diam of the ring)S/M M/L 17mm 19mmProduct examplesDressesThe stores comprised of almost 25 different types of dresses Some of them were 1. Cassie Embellished Strap Dress 2. Yvette Skater Dress 3. Ella busted Back Dress 4. Poppy Strapless Waterfall DressThe dresses had a very wide price range starting from Rs 2000 to Rs 15,000. The sizes varied from the kind of dresses available. In general the fastest exchange sizes were 6 and 8. The long-play selling sizes were 12 and 16.TopsThe store comprised of almost 45 different kinds of tops Some of them were 1. Trixie High Low Top 2. Koko dustded Pocket Tee 3. Chelsea Printed store 4. Mackenzie Roll up sleeveThe prices of the tops ranged from Rs 1200 to Rs 6000. The sizes variedaccording to the different kinds of tops. The fastest selling sizes were 8, 10, 12 and 14. The slowest selling size was 4. knickerbockersThe store comprised of almost 20 different kinds of bottoms Some of them were 1. Isobella Draped warp 2. Leya Casual Skinny 3. Arla Tuxedo Shorts 4. Oslo Piped Pocket JeggingThe prices of the pants ranged from Rs 1200 to Rs 4000. The sizes varied according to the different kinds of pants. The fastest selling sizes were 8, 10 and 12. The slowest selling sizes were 6 and 16.BagsThe store comprised of almost 15 different kinds of bags Some of them were 1. Lori Satchel 2. Ava Grace Small Bag 3. Ariela Hard Case Clutch 4. Lucy Stud CoinAccessoriesThe store comprised of a lot of accessories Some of them were Tilly Pearly affirmation Ring Heather Beret Vanessa Lace Scarf Jaylyn Enamel contortionThe store comprised of almost 15 different kinds of shoes Some of them were 1. Prianne course of study 2. Sonia Embellished Sandal 3. Candice Diamente Pump 4. Lolita The prices of the pants ranged from Rs 2500 to Rs 6000. The sizes varied according to the different kinds of shoes. The fastest selling sizes were 6, 7 and 8. The slowest selling size was 10.After studying the potpourri of both the stores, it can be concluded that The size 4 backing in the Pune sector is less. The most common sizes are 8, 10 and 12. oversize tidy sum generally do not prefer Forever New for dresses and shoes but they prefer the tops.Competitive compendium agree to the Pune Retail Scenario, the direct competitors of Forever New would be mango tree ZaraEven though they have different styles and they all are from different parts of the world still in the Indian market these brands are competing against each other. Mango Mango clothing is a Spanish multinational based in companyBarcelona. It designs, manufactures and markets clothing garments and accessories for women and men. Mango subject its first shop in 1984. What started out as a s mall team began to grow as a result of an ambitious production system based on the philosophy justin-time, which defined product concepts, store design, quality standards, price and brand image. This solid approach has turned Mango into a Spanish fashion leader. Mango can be differentiated for having a highly-defined concept. The Mango concept is based on an alliance between a quality product, with an pilot light design and a coherent and unified brand image. Dressing the modern, urban women for her daily needs is the formula they have analysed, adapted and applied in all the countries in which Mango is present. Zara Since the moment the first Zara stores doors were opened in 1975, the growth of the Zara fashion line has built a been unstoppable. In Zara famous the has brand competitive successfully clothing industry, ecumenicalthanks to their premium locations as well as a odd management system of design, production and supply chains. Unlike other fashion brands, it takes Zara o nly 10 to 14 days from the time they design new clothing until it arrives in stores. This fast fashion concept and operation allow Zara to always provide the most fashionable clothes to their customers, and the ever-renewed collections definitely supporter build brand loyalty.Brand PositioningFactors Quality Variety Sizes sorting Value for Money Price Design hyphen Forever New thoroughly comely sizable Poor Fair High Good Good Mango Good Poor FairGood Fair High Fair Poor Zara Poor Good Poor Good Poor Medium Good GoodMango in Pune has effected itself only as a womens wear brand. Unlike Forever New it has a very good assortment of products. It has a course of instruction of products which can be affordable by middle and upper middle class women and another category which can be affordable by elite classes. It has better quality but less variety. Zara in Pune opened up recently in 2011. It has great style and is up to date with fashion, but unlike Forever New it has sizing issu es and most of their products are sold out or not available in proper sizes. It has poor quality goods when compared to Mango or Forever New. It is cheaper than both the brands but it doesnt provide value for money.Forever New SWOT Analysis Strengths Filled in the brand gap of mother daughter obtain together. Unique Products Brand name Customer Loyalty Online Market weakness lot of Indian consumers are not able to relate with the brand. precise expensive Weak Promotion Strategies Less brand awarenessuphill Markets Increasing Economy New Products Innovation New TechnologyThreats unabated Competition Substitute Products Substitute Market Losses due to low acceptance rate of consumersStrengthsForever New is a big brand name and a lot of consumers will be directed towards it cause of that. It has a USP of filling in the gap of mother daughter shopping together. It has exclusive products for women. It has highcustomer loyalty rate. Forever new has open itself in the online market w hich is the latest trend in the retail business. It ships to India free of cost which adds on to the rest of the advantages.WeaknessA lot of Indian mothers who go out shopping with their daughters wont be able to relate to the brand. Another weakness is that due to the high prices of the products a lot of people do not prefer buying from there. It has poor promotional strategies and hence the consumers dont notice it much and hence less brand awareness.OpportunitiesWith the new technology coming in it would be easier to design and produce goods leading to faster innovation and new products. The economy is increasing and hence more and more people will be willing to spend on such brands.ThreatsThere is intense competition from a lot of International brands as they are also looking forth to invest in the Indian Retail Sector. Substitute products and substitute markets at better deals will pose a threat to Forever New. Since the Indian consumers are not accepting the brand properly th e company big businessman go into a loss.Data Analysis and InterpretationWhy do people shop from Forever New?Sizes Quality Pricing Design Style 0 Why do people shop from Forever New? 2 Style 12 4 Design 9 6 Pricing 1 8 10 Quality 5 12 Sizes 1 14A majority of people shop from Forever New because of its style followed by its designs.Preferred Mall14 12 10 8 6 4 2 0Town Centre AmanoraKoregaon Park PlazaPreferred Mall correspond to my sample size the mall preferred to visit Forever New is Koregaon Park Plaza.What do people prefer buying?Tops Bottoms Dresses position Accessories3% 13% 37% 34% 13%Almost 37% of people buy tops from Forever New which is closely followed by Dresses (34%).How often do people visit Forever New?10 9 8 7 6 5 4 3 2 1 0 Weekly Fortnight Monthly erst in 6 months Yearly How often do people visit Forever New?According to my sample size a majority number of people visit Forever New monthly while hardly anyone visits it weekly.How much do people spend?9% 18% 500-150 0 1500-2500 32% 2500-5000 5000-10000 41%In this sample size 41% of people spend Rs 1500-2500 and 32% spend Rs 25005000 on Forever New.Which other brand do you prefer?16 14 12 10 8 6 4 2 0 Mango Zara Promod Other Which other brand do you prefer?Maximum number of people prefer Zara if not Forever New.Problems faced4% 4%8% StyleDesigns Pricing46% 38%Quality Sizes Other0%According to this sample size the major problems faced in Forever New are sizes and prices.Preferance Store or Online20 18 16 14 12 10 8 6 4Preferance Store or Online 0 Online StoreMany people prefer visiting stores over online shopping.Membership broadside?16 14 12 10 8 6 4 2 0 Yes No Membership Card?A majority of people prefer a membership brain for Forever New.Recommendations and ConclusionForever New is moving at a very slow rate in Pune. It caters only to a limited clientele and many people are not aware of it as a brand. People who are aware of this brand and shop from it are not very happy with the sizes and t he prices it offers to them. Along with that a lot of people complained that it has limited variety and goes out of stock fast. Despite all these issues, Forever New does have a brand loyalty and some people do follow it regularly, generally on a monthly pedestal because of its designs, style and quality. A lot of people are not aware about the online shopping facility of this brand and hence do not take advantage of it. The major backing of the online shopping market is that people prefer going to stores because they like the overall experience of actually poignant the product and then deciding on whether to buy it or not. International Brands like Forever New are currently going through a bad phase in Pune because consumers are still in the middle of accepting such expensive brands.Growth OpportunitiesEven though the womens wear apparel is booming right now, it still is a little congested. But if there is a proper gap like mother daughter shopping together in one store (similar to Forever New), it can easily fit in the Indian scenario, one just needs to work on the styles and sizes a bit so that the Indian mothers accept it more openly. Indians as consumers are still not ready to shell out a lot of money on apparels so if one can work on the prices and they come down a bit for a brand like this, it will be successful in the Indian market.References and BibliographyWinning in the Indian Retail Sector Indian Retail Report Opening more Doors CBRE India Retail Market View 2011 http//www.forevernew.com.au/http//www.canalwalk.co.za/shop.htm?shopMGID=35523 http//www.waterfront.co.za/shop/shopcontent/Pages/ForeverNew.aspx http//www.google.co.in/search?rlz=1C1LENP_enIN472IN472&sourceid=chrome&i e=UTF-8&q=globalhttp//www.zendesk.com/why-zendesk/customer/forever-new http//pune.mallsmarket.com/malls/koregaon-park-plaza-pune http//pune.mallsmarket.com/malls/town-centre-amanora-hadapsar