Case Study

Chandni Chowk Kinaari Bazaar

Submitted by: Namrita Surtani, MAFMG11549 in partial fulfilment of the requirements for the Masters in Fashion Marketing 2011- 2013

Submitted to: Ms.Nandita Abrahim (Business and Technology)

Pearl Academy of Fashion New Delhi

ABSTRACT
The purpose of this paper is to study Kinaari Bazaar as a market, enviornment and consumer perspective about the market. Kinaari Bazaar is a lane in the market of Chandni Chowk, one of the oldest markets of India. The paper further focuses on the strong history of Chandni Chowk, its location and people. Chandni Chowk is a busy street, a complete contrast to open spaces and quiet environments. The bustling market area of the streets is full of people hurriedly moving place to place, either buying and selling goods or offerings services to people who come there to buy and sell. The 350 year old Chandni Chowk in old Delhi is not just a bustling bazaar it is Delhis most vibrant commercial centre for export, wholesale and retail trade. The annual revenue generated in this less than 1 sq mile stretch may well exceed the GDP of many a small country. Chandni Chowk has different lanes catering different products. One of the by lanes is Kinaari Bazaar famous as a wedding market. Weddings in India are considered most auspicious occasions, the wedding market in India is flourishing with 25% growth rate per annum. The paper further discusses the market enviornment of Kinaari Bazaar using Porters five forces model. Consumer profile of Kinaari Bazaar and the attractions of the market are further discussed in the paper. The paper will be of interest to those studying Indian wedding markets, designers, researchers.

Research methods:

Primary Research Observations, interviews customers and shop keepers

Secondary research Internet, newspapers

Introduction
There are a thousand things that are required in an Indian wedding from turbans to veils and what not. To prepare a bridal trousseau one needs to start collecting all sorts of things for decorations etc. India is a country where marriages are considered one of the most auspicious occasions in ones life. People put savings of their life time to deliver a good wedding with all available options for food and all possible arrangements.

Subsequently, other preparation like buying wedding dress, wedding jewellery and other accessories are also to be done adequate time prior to wedding. Hiring catering, decorator, florist, wedding band, DJ are other important decisions to take. Wedding feast is the most important among the invitees. Decoration defines the style of the wedding which appeals the attention of the guest. Perfection in every aspect of wedding preparation ensures to host a perfect wedding. People spend a lot of money on their attires itself. Indian bridalwear go up to 3 - 4 lakhs in an average wedding. Delhi is a hub of designers where most of the designers work on Indian wear. Indian traditional bridal wears are full of embellishment beads, stones, gotas and thousand other different types of trims. The market of such accessories and trims is huge. People from different cities around Delhi come to source trims and laces come to Delhi. Delhi in itself is a huge potential market, different markets of Delhi cater to different types of people and products. Delhi gives a glimpse of India's art & craft, a feel of the culture of the country within the purview of the city then Delhi is the place to be in. Delhi with it is innumerable shopping complexes is able to cater to every individuals desire to acquire items that have the essence, the originality of a particular region in India. Although there are shopping complexes in almost every locality in Delhi, Connaught Place, Karol Bagh and Chandni Chowk are the principle shopping areas. . The Hauz Khas Village is a designer hub where you find many Indian designers outlets Chandni Chowk is famous for jewellery and saris, so for those who wish to get a feel of the tradition of India, Chandni Chowk is the place to visit. Chandni Chowk. While in that area, Dariba Kalan, a narrow street, may be visited for gold and Silver. Karol Bagh is yet another famous shopping complex in Delhi of similar nature. You can find a variety of Indian clothes, shoes and accessories out here as well as precious jewelry and bridal wear. What's more, this place sells automobiles and related accessories too. For casuals, Janpath with its rows of shops, Sarojini Nagar and Lajpat Nagar are the places one would like to visit. These places offer variety of novelties, gifts and handicraft items at bargain prices. Sarojini Nagar also has this rather big market of export surplus clothes. Dilli Haat, near INA market, developed by Delhi Tourism has on display almost everything that would be very typical to a particular region in India. It has been designed to be an upscale version of a haat (generally a weekly traditional market). Delhi also has a very popular underground shopping centre called Palika Bazar. This shopping center like most shopping complexes in Delhi has variety of goods on display and at a reasonable cost. A recent phenomenon in Delhi has been the steady rise of foreign collaborations in consumer goods areas. With extremely steep prices abroad, foreigners visiting India can pick up items of international brands like Benetton, Ray-Ban, Adidas, and Pierre Cardin at a comparatively lower price. A common sight in South Delhi, rather in Greater Kailash and South Extension is the presence of multi storeyed departmental stores. These stores are complete in themselves in as much that they have on display items of all kinds ranging from cosmetics to clothes to

shoes to books to household items. If one wish to buy quality products and do not mind spending a little bit more, then these stores are worth visiting. However If one wants a break a bit out of the ordinary, one might want to spend a little time in the Chandni Chowk area. As mentioned earlier, Chandni Chowk is a big market for silver, and for lot else. Fabrics, woollens go cheap here. Take a diversion to one of the by lanes into Chawri Bazaar and Nai Sarak to see Delhi's big stationary and books market. Take another by lane to get into Parathewaali Gali. This by lane houses the most number of parathawallahs on one street. And no visit to this area is complete without sampling a Jalebi (. Walk forth a little more one will reach a plethora of colours in Fathepuri's spice market. This market is situated almost at the end of road which leads to Chandni Chowk. All in all, this area represents to some extent Delhi's old worldly charm. (Sharan,J.2011)

Chandni Chowk then and nowChandni Chowk is the oldest market in New Delhi and India as well. The market of Chandni Chowk is very old. The origin of Chandni Chowk dates back to the Mughal era in Indian history. According to legend, Chandni Chowk market was established during the reign of the Mughal Emperor Shahjahan. The legend also says that Chandni Chowk market was designed by Jahanara-Emperor Shahjahan's favorite daughter. A large 'Chowk' or square with a centrally located pool was incorporated in the initial design.(see exhibit 1)

Chandni Chowk as a Business Centre

During Shahjahan's time itself, an arcade of shops had been built in a half-moon shape. Round this nucleus, in no time, grew a fabulous and prosperous trading centre which spread along the wide road and branched into a number of by lanes in all directions. Originally only this stretch was known as Chandni Chowk. But as the trading centre grew in magnificence and prosperity, the whole area from the Fort to Fatehpur grew famous as Chandni Chowk. . The market of Chandni Chowk prospered and grew through the ages. The present Chandni Chowk market symbolizes the development through three centuries.see exhibit 1 Places of worship at Chandni Chowk Chandni Chowk has the distinction of being perhaps the only trade market that also houses an equally amazing number of places of worship of all the prominent Indian religions. Hinduism, Islam, Sikhism, Christianity and Jainism exist side by side in the 2 km. stretch between Fatehpur Masjid to Red Fort alone. Here one can find more than seven Hindu and Jain temples, two Churches, three Mosques and two Gurudwaras. This is excluding the numerous smaller shrines that exist in the remote parts of Chandni Chowk. (see exhibit 2) Sri Digambar Jain lal Mandir Jama Masjid Gurudwara Shish Ganj Gauri Shankar Temple Sunehri Masjid.

Eating joints at Chandni Chowk

The eating joints in Chandni Chowk are famous not only in Delhi, but all over India. Most of these date from the last century, some even earlier than that. Mute witnesses to time-induced changes in Chandni Chowk, they have managed to retain their essence and yet move ahead with the times. Here, with every bite one samples not only a delicacy but also a piece of history. Handed down from father to son, many of these businesses are now being managed by the 4th or 5th generations. They include halwais (confectioners), namkeen (spicy savouries) shops, chaatwalahs and many others to the very famous nonvegetarian food. The famous businesses are: (see exhibit 2) The Ghantewala Halwai Natrajs Dahi Bhalle Karims opposite to Jama Masjid The kachori wala

The area of Chandni Chowk has a number of markets. The notable markets in Chandni Chowk are:

Nai Sarak for books, stationery items and musical instruments Cloth Markets at Fatehpuri and the various Katras for textiles Dariba Kalan and Kinari Bazaar for jewelry Dariba Kalan for silver items Bhaghirath Palace for medical equipments and Allopathic medicines Chawri Bazaar for paper, stationary items and musical instruments Ballimaran for shoes and opticians Kinari Bazaar for Zardozi items and laces Flea market (daily at Jama Masjid) for antiques and all kinds of bargains Old Lajpat Rai Market for electrical goods. Cycle Market for bicycles and photography Moti Bazar for shawls and pearls. Khari Baoli for dry fruits, pulses, food grains, spices and saffron Tilak Bazar for chemicals.

Contemporary Chandni Chowk is very much different from the Chandni Chowk of yore. But the indomitable spirit of Indian entrepreneurship remains burning through the ages. The market has become crowded, but people from every walk of life can be seen here.

Accessibility

Chandni Chowk is very close to Inter State Bus Terminal. Old Delhi Railway Station is the nearest railway station. Chandni Chowk metro station is nearest to the market. Chawari Bazaar metro station for Jama Masjid

Focusing on bridal market Chandni Chowk is divided into several lanes. The Kinari lane so called as the Kinari Bazaar located in the street, a very narrow lane yet glittering with all sorts of shimmering objects, from laces, trims to wedding trousseau the bazaar is a hub for wholesale wedding market. (see exhibit 3)

Before the malls arrived on the scene, and even now, Kinari Bazar at Chandni Chowk remains one of the best places to go for trousseau shopping for your wedding. The famous Bazaar has everything required for weddings right from the sehra (groom's turban), to beautiful garlands made from gold, silver and crisp currency notes to bridal jewellery and other accessories required during a wedding ceremony. The shops cater to the needs of people belonging to mostly all religions so whether it is a Hindu wedding or a Christian wedding, the necessary items are all available here. In fact one could even hire wedding clothes from here like the bridal veil, attractively designed lehenga, gold brocade Sherwanis, etc. Another good time to visit the Bazaar is during festivals like Dussehra and Holi when the whole bazaar takes a completely different look and character with shops selling all kinds of items needed to perform Ram Lila like Ravana masks, bows and arrows to shops selling colorful packets of gulal and pichkaris for holi. During the time of rakshabandhan one will witness rachis all over Kinari bazaar. Whether it be rakshbandhan or navratras, the market changes according to the need. (see exhibit 3)

Review of literature:
Traditional markets hold a very special place in the hearts of Indian people, fulfilling their day to day needs. Foreign supermarkets are set to launch their retail operations very soon in India and are promising their shoppers a world-class experience that centres on quality, excellent customer services, cleanliness, and better bargains. This is a far cry from the shopping experience at New Delhis markets like Chandni Chowk and Karol Bagh where shoppers argue with shopkeepers as part of the bargaining, wade through sewage and garbage strewn narrow streets, wary of pickpockets and walk distances due to lack of parking spaces. Despite its disadvantages, Indias traditional markets form bulk of the retail sector that is worth around $450, a staggering figure that has lured global retailers just like the European colonial powers in 16th century. Supermarkets are keen to contrast their shopping experience with tiny shops where tempers flare over a slew of issues product quality, pricing, discount, return or warrantees. Incessant power cuts make matters worse and push tolerance threshold of shoppers. Western-style luxury malls and hyper markets are presented as exactly the opposite of bazaar experience where shopping is more like an airy breeze. According to Mckinsey, a global management consultancy, India has an estimated 12 million retail outlets and boasts the highest shop-customers density in the world. While rapid modernisation has swept almost all the aspects of consumer life, from 3G mobile connectivity to foreign branded cars to modern airports, Indian traditional markets and shops remain largely untouched in what is part of a $1.6 trillion economy. Despite their spacious and convenient shopping experience, supermarkets in India have failed to take off due to several reasons. While consumer groups insist people prefer buying from their neighbourhood shopkeeper who theyve known for years

The trend of shopping from a traditional market is not only for day to day daily needs but for other purposes too. One of the major reason and occasions Indians shop with open hearts is for marriages. It might be a seasonal industry, thriving only during the auspicious months of the year but with an estimated worth of Rs 1,25,000 crore (Rs 1,250 billion) the Indian wedding industry is getting bigger and fatter. With the industry growing at an average rate of 25 per cent per annum, the lavishness doled out by Indians on weddings is just getting larger every season as exhibitors and even designers from Pakistan entering the market to target the customers who have begun shopping for the marriage season.

Market enviornment Kinari Bazaar

According to the observations there is no place left for a new entrant. The shops are 100s of years old and are mostly owned by the shopkeepers it self. The shops on rent are also decades old family businesses. When asked to Purane Gotewala shop owner, running the same shop from last 65 years about possibility of entering into the market he said You cannot enter this market, there is no place left and the competition is very high. For every single product customers have at least ten choices. You need to have large variety to run the business. Moreover the rentals are high, for a small shop it is about INR 70,000 with an advance payment of a year, so if you fail to make profits you cannot leave the shop before a year. See exhibit 3 Another retailer dealing with clothes for gods and goddesses said There are seasons we can do business in, otherwise we do not have any businesses. 5000 is the maximum business we earn on a day of good sales. Whereas the big market players like Fancy laces and trims can do a business of minimum of INR 2 3 lakhs/ day because they have huge variety.

Kinaari bazaar can be defined using porters five forces model: Barriers to entry: HIGH
Absolutely no space for a new entrant Shops are decades old and mostly run by owners Mostly wholesale, high competition amongst firms Entry for at least one year, as the owners rent the firms only on advance payment of one year Minimum rent for a shop is INR 70,000, so the capital requirements for the shop itself starts with INR 8,40,000. Kinaari bazaar is a brand in itself, even after the chaos it holds it has become a tourist attraction. Designers, exporters, wedding planners from all over Delhi and around Delhi come to Kinaari Bazaar for the sourcing purpose as observed.

Bargaining power of buyers: LOW

Very high footfalls. In spite of being a narrow lane Kinaari Bazaar witnesses thousands of people in a day making it a strong market but still the bargain power for the buyer is low as it is a wholesale market, the products are not highly priced.Designers, boutique owners, jewellery designers, students of designing, wedding planners, garment/jewellery exporters from Delhi and cities around Delhi. Threat of backward integration is very low as the product range is high, the customer profile is such that the product is the raw material for them. Although there are number of shops providing similar products there are few market players which provide large variety hence making huge profits by gaining more and more customers. Fancy laces is one of them makes INR 2-3 lakhs/day sales.

Threat of substitutes: LOW

Substitutes could be the manufacturers/suppliers themselves but the barriers to entry are high so the threat for substitute is low. As there are large number of exporters who source their accessories from wholesalers in Kinaari Bazaar, the sourcing can be done directly through the manufacturers excluding the middle man. The other substitute is one of the by lanes in Chandni Chowk itself Nai Sadak , which provides similar products. In terms of products substitutes are high because of the variety available. For example a sari can be made by using a lace over it or in place lace surface ornamentation can be done using different other beads and stones. In this case beads are the substitutes for laces.

Bargaining power of suppliers: LOW

Supplier concentration is high as there is large number of firms. Threat of forward integration is low as there are high barriers to entry. The inputs are more or less same as there is not much differentiation in products of similar category. Suppliers are high in number and so it is easy to switch from one supplier to other without involving any cost. The bargain power of supplier is medium as Kinaari Bazaar is mostly a whole sale market. The products are bought in large quantity and variations.

Intensity of rivalry: HIGH

For each product a customer at least tries ten different shops said Mr. Ramdayal one of the retailers at Kinari Bazaar. Hence making the competition high. As their id no space left into the market, entry cost is higher and so the switching costs. The demand is high for any retail space the rental even for a very small shop starts with INR 70,000 and crosses INR 1,00,000 the owners are inherits of the firms and provide the space with advance payment for an year. So any new player cannot leave the market until an year which at minimum involves INR 8,40,000 only the rentals, as told by a retailer at Kinari bazaar.

Customer profilies: 8

The street is the miniature India in every essence, the chaos that define India are there to be seen making a gurgling sound and emitting something incomprehensible, people everywhere, sleek modern cars and ancient rickshaws going side by side on the street. And within all this is some unseen order which ensures that everything somehow keeps working. It is easy to get carried away with the pandemonium of Chandni Chowk but never understand how the system manages to work and stay afloat. But the country survives this way, moving forward, keeping crisis and achievements side by side. Kinaari Bazaar is a street where one can find all the things needed for an Indian wedding from fabrics to accessories to different things needed for wedding decorations. People from all over delhi come here for different purposes. The major customers are as follows: Garment and jwellery exporters: for accessories and trims, beads of different types, laces , stones etc. Designers and students: as Delhi is the fashion capital of India and a hub for designers there are lot of designers who come here to buy different types of trims and gotas for surface ornamentation. Wedding planners: Kinaari Bazaar is a wedding market and so wedding planners get different products used for decorations during a wedding. Tourists: Chandni Chowk is a major tourists attraction, and Kinaari Bazaar one of its bylanes attracts tourists for the products it has and also the street food.(see exhibit 2,3) As it is one of the oldest markets in India people connect with the market. The shops here are more than 90 years old. Businesses are passed over from generations to generations. An artists from delhi itself Mr. Ashish Das came here with his daughter and son in law says My son in law wanted to experience Delhi 6 after watching the movie. It reminds me of shahjahan and mughals. It reminds me of my college days. It has amazing street food that no other place in delhi provides. It has very intresting human profile. People from all walks of life can be found here from a big exporter to a beggar eating on mercy. It has heritage, memories and extravaganza. It has everything , a complete package. The market has changed in last 50 years a lot. It has become chaotic, there is no parking space but people still come here. It is one of the highest trading markets in India. When asked a 21 years old jwellery designing student Priya Desai about her experience of shopping she said you get whatever you need here, have been here just twice for my college projects and got everything I needed. The market has huge variety though I felt it is costlybut I have not been to any other markets of delhi for the same products, so I do not know about pricing otherwise the market is an experirnce in itself A designer from delhi Lavisha Arora said I come here twice a month and everytime I come here I see different, new stuff, you can never explore the market to the whole A lady of 26 year Yashika Malhotra old came here for her wedding preparations said I came here for the first time, I always used to avoid coming here because of the chaos but now I am in love with Kinaari Bazaar. I like everything here, from laces, stones to the food. It was hard shopping here because of the choices available. For every single thing you I need, I get 10 15 different options. Just love this place.

Talking to some of the shopekeepers about how the market is and how Kinarri has changed with time one of the chatwallas PADAM CHAND CHAATWALA, who is running his shop from last 45 years said market has changed a lot, earlier it used to be very less crowded, and now the crowd is increasing year after year. Now a lot of exporters come here for bulk shopping Another very famous a 90 year old shop KHURCHANWALE told us about the market this market changes every season. Market has changed, earlier it was more about GOTA now beads are more popular and handicrafts also.During Rakhshabandhan you will only see rakhis all over the place, and when dussehra comes, the place is filled with garments and accessories used in Ramlila. It is like that, it is never same. The place is always crowded, metro has made a lot of change, it has facilitated the way for customers. Buyers perception: A place you can get whatever you need at right price No bargaining but the prices are not that high Whenever you visit you find new stuff, one cannot explore the market to the whole. Products include everything needed in an Indian wedding Veils, turbans , envelopes, decorative products, gotas, stones Laces and trims of all kind- each piece is different from the other in one way or other colour or design.see exhibit 3 The observations and customer perception about Kinaari Bazaar is shown in the Kapeferers prism below: Adapted from Kapferers(1997,p.100)

Physique: Chaos, Street food, Paranthewali gali, Wedding market, Essence of India Kinaari bazaar

Personality: Old, Rooted to culture, Extravagant, strong and firm

Relationship: Good old memories, Caring like a Grandmother, Equal to all

Culture: Rooted, traditional, no Discrimination.

Reflection: Old and chaotic, true India, For everyone from a beggar to a business man

Self image: Indian heritage, extra ordinary, marvellous

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Conclusion
From the above study conducted on Kinaari Bazaar, the scene of the market can be drawn clearly. Kinaari Bazaar has its own identity, in spite of being over crowded, chaotic at all times of a day, with electric wires hanging just above the ground it is working from last three centuries. It is flourishing with the wedding market of India. The footfalls remain high with all kinds of customers and tourists, giving huge amount of business to the retailers and wholesalers sitting there. Making it one of the largest market of India in terms of growth. But according to the porters five forces model the market has no opportunities for a new entrant. The biggest question is how to enter in such a market with keeping the risk low. The market is already packed and as per the observations. The place was built during Mughal Era and is growing since then. The firms are running from decades and are passed from generation to generation which makes it even difficult for a new entrant to start a new firm without any goodwill maintained in such an old market where everybody knows everyone.

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Exhibit 1 Old Chandni Chowk

Chandni Chowk during Mughal Era

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Exhibit 2

Jama Masjid Karims Restaurant

Paranthewala aa

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Exhibit 3

Laces

Stones

Ramleela Costumes

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Fancy Laces

A tourist enjoying kachori

A shop dealing with Wedding decorations

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References

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