Arvind Brands’

Competitive Position in
the Indian Branded
Apparel Market
 Arvind Brands’
Competitive Position in
the Indian Branded
Apparel Market
 Introduction
• Arvind Mills established in 1931 by the Lalbhai brothers of Ahmedabad.

• The year 1993 saw the birth of three new units- textile, telecom and
garments division.

• The garments division Arvind Brands Ltd was a Rs. 3.50 million
subsidiary of the parent brand Arvind Mills

• ICICI Ventures picked up a majority stake in Arvind in May 2004.

• Arvind Mills reacquired ICICI’s stake by raising US$ 37.19 million

through GDR’s.

• Arvind Brands became 100% subsidiary of Arvind Mills in 2005.

 Introduction
• All the brands under the Arvind name were growing at a healthy rate in
2004.

• Plans to sustain growth by increasing retail presence.

• Saif Ali Khan appointed brand ambassador for the Newport brand in
2005.

• Strategy was increasing distribution and penetration.

 THE BRANDED APPAREL
INDUSTRY
 Characteristics of the industry.

 Growth of the industry.

 Important segments.

 Important trends in the industry.

 Major players.
 Basket of Arvind brand
Fabrics sourced from Arvind Mills.
Came with strategy to verticalize its operation
By setting up world class garmenting facilities
One stop shop service
Garment packages to domestic and international
customers
International licences of Lee, Wrangler, Arrow &
Tommy Hilfiger.
Segmentation of Home brand
Flying Newport Ruf n Tuf Excalibur
Machine
Launched 1980 1993 1997 1995

Age group 15-30 18-28 15-30 18 & Above

Price range 500-1000 300-500 299-699 500-1000

Difficulties Hike in exise Hike in exise Distribution ----

faced to 8% to 8% hurdle

Retailer own outlet own outlet Big Bazaar

Brand Abhishek Saif Ali Khan Akshay kumar ----

ambassador Bachchan
Tag Line Who Needs The Measure ---- ----
Phoren? of Success
 Entry into new market
After the success of Excallibur and lull in denim
market, Arvind launched
Rugger
Made of gabardine (type of smooth fabric)
Launched Bay Island in 2002
Relaxed formal wear which includes shirt, trousers,
pullover, etc.
 International Brand
Arrow
Premium Brand
Licenced from Cluett, peabody & co., USA
Four sub brand
 Classic
 Premium

 Urban

 Sports

Company was exploring possibilities of introducing

footwear, fragrance, watches, undergarments, etc.
Lee
Launched in 1995
Licenced from VF corporation
Premium segment
Adjudged the images fashion award “most admired
jeanswear” brand
Price range 999 & above
Lee kids
Lee neon (party wear)
69 stores as 2006.
Wrangler
Positioned as rugged, confident and extreme fashion
brand.
Targeted 2 types of customer
 17-25 year old
 Fashion consious

 25-40 year old

 Love wearing denim on weekend

Retail ambience was given importance

Tommy Hilfiger
Launched by arvind together with New York based
Murjani group through 50:50 joint venture.
Introduced men’s sportswear, men’s Jeanswear, junior
Jeanswear.
COMPETITION
MADHURA GARMENTS
It’s was the garment division of
Indian Rayon and Industries Ltd. A
flagship company of the A V Birla
Group Company.
Owns perpetual license for
premier brands like – Louis
Philippe, Van Heusen, Allen Solly,
Peter England, Byford, Elements
and SF (San Frisco).
Preferred global supplier of
international brands like- Marks and
Spencer’s, Tommy Hilfiger, Polo,
Ralph Lauren, and several others.
It distributes its brands through its
own retail chains namely Planet
Fashion and Trouser Town.
LOUIS PHILIPPE
First brand launched by MG
1st genuinely Int. label to arrive in India
Evening wears, Silks, Trousers, Blazers, Ties, T-
shirts
Symbolizes elegance, class & status, addressing
style conscious contemporary Indian man
Leading Indian Premium menswear brand with
market share of 20%
Recognized as a superbrand
Its world rights was acquired by MG in December
2000
VAN HEUSEN
Premium executive wear segment
Positioned as balanced, sophisticated with
high quality finish
Caters to premium segment of formal
corporate wear
Pioneer of intelligent clothing in India (i.e
Oxyrich shirts), trousers, knits, suits and
now also in the inner wear range
ALLEN SOLLY
With this brand MG pioneered the
concept of Friday dressing
Formal wear with a more relaxed attitude
Its women's wear caters to the modern
working woman by launching
international quality garments that are
affordable
MG acquired its world rights (except
N.America ) in December 2000
PETER ENGLAND
1st international brand to be launched in the
country’s mid-price shirt segment (year
1997)
It offers value for money to its customers
One of the most popular brands in its
category
Its sub-brand Elements offers a range of
work casuals and evening wear and recently
jeans also
MG acquired its world rights (except UK &
Ireland) in December 2000
RAYMOND APPAREL
LTD.
 A 100% subsidiary of Raymond Limited,
Raymond Apparel Ltd. (RAL) ranks amongst
India's largest and most respected apparel
companies
 They provide the best of fabric and style through
some of the country’s most prestigious brands –
Raymond Finely Crafted Garments, Manzoni,
Park Avenue, ColorPlus, Parx, Notting Hill and
Zapp!
 All of Raymond’s brands are available at
exclusive brand stores, ‘The Raymond Shop’
retail outlets and multi-brand outlets across India
and the Middle East.
RAYMOND ‘S BRAND
PORTFOLIO
RAL entered into the ready-to-wear business with

the introduction of Park Avenue in 1986 catering
to the men's formal wear market. Parx was
launched in 1998 to address the growing trend of
smart casuals. In 2000, Manzoni, a luxury
lifestyle brand was launched offering a super-
premium formal range of men's shirts, suits,
trousers, jackets, ties and leather accessories.
Raymond identified the vacuum for a high end,
casual wear brand and hence decided to acquire
ColorPlus as a part of strategic expansion plan for
their ready-to-wear business. Notting Hill was
launched in 2007 to cater to the popular price
segment. In addition to this, Raymond Apparel has
also ventured into the kids wear segment with its
exclusive brand Zapp!
INDUS LEAGUE CLOTHING
LTD.

 Indus-League Clothing Ltd., was founded on 14th April 1999

by a team of eight top-flight management professionals from
the clothing industry. These professionals have established a
reputation for creating and building some of the most
successful fashion brands in South Asia and the Middle East.
 Within an year Indus League had transformed itself from a
new entrant into a company that has launched two fashion
brands namely Indigo Nation and Scullers
 Indus-League has a portfolio of Three proprietary brands -
Indigo Nation , Scullers and Jealous covering different
segments of the fashion market.
INDIGO NATION
Positioned as clothing for the new age
global citizen, Indigo Nation adopts a
lifestyle and optimistic attitude combined
with a strong value-proposition
Product Range:

Shirts, T-shirts, Trousers, Formal &

Casual Jackets, Knits, Ties & other
Accessories like Bermudas and Socks
SCULLERS
 Scullers comprises a range of sporty clothes, that stop short of
being sportswear; a cool, preppy and un-fussy attitude-great
clothes for work and just as good to relax in afterwards.
 The Scullers product range includes the Henley collection of
Relaxed Wear and the Evergreen range of Classics, teamed
with a Crush-Free range of Chinos and Khakis. A youthful
collection of Italian silk ties completes the look.
 Product Range:
Shirts, Trousers, Ties, Blazers & Under-Tees.
Ties: Italian, Polyester & Silk ties.
Blazers: Classy blazers in fine Polywool.
Under-Tees: A range of Round-neck and classic T-Shirts
LEVI STRAUSS & CO.

 Founded in 1853 by Bavarian immigrant Levi Strauss,

Levi Strauss & Co. is one of the world's largest brand-
name apparel marketers with sales in more than 110
countries
 In 2009 it completed 15 years in India
 It expanded its portfolio from being a jeans only brand
to emerge as the complete casual wear brand
 4 sub-brands Sykes, 501, Red Tab and Red Loop
Levi Strauss brand portfolio
 Invented in 1873, Levi's® jeans are the
original, authentic jeans. They are the most
successful, widely recognized, and often
imitated clothing products in the history of
apparel
 The Dockers® brand is the leader in providing
stylish and comfortable casual wear. The
brand continues to expand its offerings to
provide men and women with clothes that
offer versatility for an on-the-go lifestyle
 The Signature by Levi Strauss & Co.™ brand
was launched in 2003 exclusively for value-
conscious consumers. The brand provides
these consumers with high-quality, affordable,
fashionable jeanswear and casualwear from a
company and name they trust.
 The Company was incorporated on November 11, 1997 as
Acme Clothing Private Limited.
 Provogue stands for fashion and not pure apparel. Its designs
are contemporary and cutting edge.
 Provogue’s brand statement “ Redefining fashion” and its
innovative merchandise have created a niche in the minds of
its consumers.
 The brand is retailed through selective stores in the country
and leading National Chain Stores like Shopper's Stop,
Lifestyle, Globus, Westside etc.
 More importantly, Provogue is also retailed through a chain of
exclusive brand outlets called "Provogue Studio"
 PROVOGUE’S PRODUCT RANGE INCLUDE:
INNERWEAR , T-SHIRT , BOTTOMS , JACKETS &
BLAZERS , DENIM , FORMAL SHIRTS , LINEN SHIRTS ,
CASUAL SHIRTS, FOOTWEAR , SUNGLASSES ,
FRAGRANCE , CAPS, BAGS , BELTS
 GROWTH STRATEGY
 Birth of “RENOVISION” – a new way of looking at
issues & seeing more than obvious.

 Global expansion – “high quality premium niches”

 Decentralized set up – A CLUSTER approach.

 Mergers & Acquisitions to strengthen the brand

positioning.
- REDS, Diesel etc.
GOING GLOBAL
 GROWTH STRATEGY
 Birth of “RENOVISION” – a new way of looking at
issues & seeing more than obvious.

 Global expansion – “high quality premium niches”

 Decentralized set up – A cluster approach.

 Mergers & Acquisitions to strengthen the brand

positioning.
- REDS, Diesel etc.
 GROWTH STRATEGY
 Birth of “RENOVISION” – a new way of looking at
issues & seeing more than obvious.

 Global expansion – “high quality premium niches”

 Decentralized set up – A cluster approach.

 Mergers & Acquisitions to strengthen the brand

positioning.
- REDS, Diesel etc.
 GROWTH STRATEGY
 Birth of “RENOVISION” – a new way of looking at
issues & seeing more than obvious.

 Global expansion – “high quality premium niches”

 Decentralized set up – A cluster approach.

 Mergers & Acquisitions to strengthen the brand

positioning.
- REDS, Diesel etc.
 GROWTH STRATEGY cont.
 Name changed from Arvind Mills to Arvind Ltd.

 Focus on retail.

 Three pronged strategy for growth.

 Concentrating on tier II and Tier III cities.
 Inclusion of protective and performance fibres
 Establishing large format stores

 OUTLET CENTRE concept to promote value pricing.

 GARMENTING is the way to go.

 GROWTH STRATEGY cont.
 Demerger of branded apparel & retail business.
 branded apparel changed to arvind lifestyle brand ltd.
 retail business was changed to arvind retail ltd.

 focus on value addition & differentiation.


 Outlook….
Ready-to-Wear as an augmentation of fabric
business.

Unable to keep up with market trends.

Misjudged distributions.

Small brands were quick to adapt to trends.

Price points played a major role.

 Retail initiative ‘05
Presence in Sec B & C Cities.

Tie-up with Big Bazaar.

Factors inhibiting the growth of Arvind :-

Intense competition,
Falling margins,
Not doing enough to build brand equity.

“Premium” category to “Value” category.

 Post ‘05 Challenges for Arvind

Buildingthe brand & achieving global

competencies.

Responding to changing needs.

Desiging & executing future strategies.

Brand-Equity erosion of home grown brands.

 Approach towards Challenges

To expand licensed brand portfolio:

Nautica: Designer wear brand.

Jansport: sporting, hiking, traveling gear brand.

Kipling: Leather fashion accessories brand.

 OU
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