Forever New Case Study
Indian Retail Sector India is one of the most desirable retail destinations in the world.
Indian’s twin growth engines of economic growth and demographic profile set it apart from other nations and present a compelling business case for global retailers looking to enter the market. PWS research indicates that Indian’s retail sector is worth US$350 billion and has a low organized retail penetration of 5 to 8%. Modern trade emerged during the ass, primarily In the food and grocery sector, and Is now growing at a Compound Annual Growth Rate of 15 to 20%.
A large market potential for a range of disagrees is indicated by low ARP, increasing arbitration, growing incomes, increasing consumer confidence, etc. Indian’s retail sector comprises organized and unreasoned participants. Given the size of the country’s retail market, PWS research and other reports suggest that the 12 million mom-and-pop stores comprising Indian’s unreasoned market can co-exalts with modern trade players.
Recognizing the long- term growth potential of Indian’s retail market, some of the country’s largest conglomerates have allocated billions of dollars to launch large scale retail Annihilates hat span cash-and carry, food and grocery, books, music and leisure, gems and jewelry, footwear, apparel, accessories, etc. India-based retail incumbents are expanding their presence across a range of categories, experimenting with formats, launching private labels, strengthening supply chain systems and more.
Global retailers are also assessing the Indian market with keen interest. They have recognized that the next wave of growth In terms of generating revenues, reaching new customers and harnessing research and development and innovative skills.
An aspiring idle-class of 300 million consumers, a large demand-driven population of 500 million young consumers and a relatively untapped rural population of 700 million people constitute the growth story.
Besides, a strong GAP growth, rising consumer confidence, consumption-based behavior, Increasing Incomes and a large pool of consumers nave mace IANAL one AT ten world’s most attractive retail standalone. Major demographic groups are driving purchases across categories: Sources: PAW’S analysis Capering, Merrill Lynch Wealth Management Indian’s Retail Fundamentals: Market Size Compound Annual Growth Rate Unreasoned Sector Organized Retail Penetration Retail Density Contribution to GAP US$ 350 Billion 15-20% 12 million mom and pop stores 5-8% 6% 14% Indian economy displays resilience in the midst of global crisis.
Source: Prime Minister’s Economic Advisory Council, Government of India Demand drivers
Demanding consumers: Indian consumers are demanding access to products and services that delight and excite them, are of good quality, and provide value for money.
Increasing incomes: Strong GAP performance, capital market growth and the emergence of new industries are creating new millionaires and boosting income bevels. This acts as an incentive for consumers to spend more on products.
They are also experimenting with brands, trying new products, etc.
Evolving consumption patterns: Traditionally, the focus of Indian consumers was on saving. However, positive macro-economic fundamentals, an evolving retail market, lifestyle influences, etc. Are ensuring that consumers spend more across categories. Other aspects, like the emergence of double-income households, easier access to credit and society acceptance of self-indulgence, are changing purchasing habits.
Expansion: The growth of modern trade and expansion plans are enabling nonusers to easily access retail products and services across urban, Tier II and Tier Ill cities and towns.
Growth opportunities: Some high growth categories in the retail sector include children’s wear, accessories, consumer durables, leisure, apparel and footwear. New entrants: Some of the world’s largest and most prestigious brands and retailers have a presence in India. Those who have not yet entered India are assessing the market with interest. The central government recently took a decision to allow up to 51 percent foreign direct investment in multi-brand retail and ales ten Limit Tort overseas Investment In Selene-arena retail to Benefits of FED u percent.
Consumers: plethora of options with better quality.
Government Exchequer: Payment of indirect taxes through the supply chain by the modern trade players, primarily service tax.
Farmers/Producers: Establishes efficient supply chains that links farmers and small manufacturers directly with retailers which maximizes value for stakeholders. Together with back-end infrastructure, this will minimize wastage, increase farmers’ realizations, encourage est. practices in crop management and improve food safety and hygiene.
Unreasoned Trade: Mom-and-pop stores can exist alongside modern trade players and can explore partnership models in a rapidly changing retail environment .
Indian’s 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 line will cross over, the gains from economic growth will be felt more inclusively, etc.
Puns Retail Scenario: The retail sector in Puns was earlier confined to a few markets which were margarine’s, chaotic and crowded. In the last two years, however, the rise in modern retail outlets can be seen across the city. Korean Park Plaza, Minority, Phoenix Market City, Pulse, Kumar Pacific Mall and Manors Town Center are the new ones that have Joined the already existing malls like S.
G.S Mall, Maritime and Central to name a few.
Source: CABER India Retail Market View 2011
Source: CABER India Retail Market View Puns has come a long way in recent times. The IT market, automobile boom, student community, thriving service sector, robust real estate market and increase in the umber of professionals have led to an expansion of the city.
This rapid arbitration, and the new demands of Pun’s global citizens, has led to a rise in the number of malls, offering high-end brands.
Introduction Forever New is a fashion clothing and accessories brand founded in Melbourne, Australia. It was started by Depended Goanna and Amanda Goanna, an Indian-South African couple in 2006. The brand celebrates the feminine beauty of women, a signature style flowing through every creative element. Collections are inspired by global trends in art, film, music and theatre as well as haute couture runway shows in Paris, London, Milan and New York. It was started as Depended Goanna saw an obvious gap which was not only restricted to the Australian market but all over the with their mothers, a group that flies well under the cultural radar.
Normally it gets very difficult for a woman who is on her far side of ass to struggle with hot pants and play suits of her daughter’s choice, and hence Forever New is a one of a kind store which makes women of all age groups comfortable and creates an environment for all ages groups who prefer ethereal to edgy range.
Forever New has created a cushion empire based around the frilly and feminine It is one of the fastest growing Australian brands, Forever New emerged in late 2006 as a start up retailer and now trades over 250 stores in 11 countries globally. The company was restructured in 2010 to support it’s growth which values it at about $108 million, although the ownership remained unchanged. While Forever New is best known as an Australian retailer, the 250-store chain already includes outlets in China, India, New Zealand, Singapore, South Africa and Turkey.
While Forever News’s 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 almost $50 million and employed about 700 people. Forever New in India Forever New was launched in India soon after it was launched in Australia. It has its head office in Oneida, Attar Pradesh. It also has its branches in Delhi, Iambi, Bengal, Puns, Headband and Kola.
Segmentation, Targeting and Positioning In the Indian scenario the segment for Forever New will be women of almost all age roofs 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 audience for frilly, ultra feminine products of forever new ranges from 15 to 60 years as the designs are on the classics edge. Along with that it does make collections inspired from the runway for the fashion conscious women.
For the teenagers it has edgy, cute and girl designs.
It has different 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 pastel palate so that it suits their age and style and doesn’t look flashy. Overseas it positions itself as a middle range brand which caters exclusively to women of all 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 Mix Product: The 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, Jewelry, hats, belts, scarves and gloves. The products are very Timeline, Truly, Ana classy Ana generally nave sort colors.
Nine quality AT ten products is very good especially the choice of fabrics or materials for each piece. Design-wise the products are according to the latest fashion forecasts or they are Just plain simple classics. Price: Different products have different price ranges, starting from RSI 800 to RSI 15,000. Promotions: Forever New in India promotes itself through hoardings in malls.
It also gives away its products for shoots in fashion magazines for which it gets due credit, hence displaying its latest collection through print media. Exhibitions are put up in Iambi to create brand awareness.
They also do mobile marketing by sending an SMS to every customer informing them about their new offers and sales. It gives away free catalogues to people who enter their stores to increase its brand awareness. It has an online shopping website which displays and sells the latest collections.
Place: It sells through 2 different channels. Stores and Online. In India Forever New doesn’t have stand alone stores. They are located in malls. The head office is in Oneida but the inventory is shipped from Australia to each store in India separately, even though the products are manufactured in China.
Forever New, Puns Forever New is located in 2 different malls in Puns: 0 Town Centre Manors, Hydras Town Centre Manors in Puns is a lifestyle retail centre, spread across 20 lace sq.
Ft. It is set according to world class standards, it is destined to be the retail and cultural epicenter of Puns, catering to both Western and Indian sensibilities, it has everything room premium to mass retail, cinemas, quick service restaurants, cafe’s 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 location is an advantage for Forever New as it has almost all kinds of people coming to the mall out of which a majority are young women from the age group of 15-35 because the mall is situated right at the entrance of Manors Township spread across 450 acres and is near the Magistrate area, the hub of IT professionals. Korean Park Plaza Korean Park Plaza built on European concept, launched on 2nd March 2012 is a world class attraction with a premium retail mix and the epitome of “shop entertainment” where visitors will find a host of wonderful, engaging activities.
The retail positioning of the mall is mirrored by its location in the heart of Puns, at Korean Park.
This combination of centralized location and the mall’s world class architectural features positions Korean Park Plaza as an appealing destination for tourists & cannonballs AT Puns. I en location seasonal Eden an advantage Tort Forever New had the mall been as successful as promised but unfortunately Korean Park Plaza is not doing so well, but loyal and regular customers of Forever New do visit often and shop from there. Since the mall is isn’t doing well, it is very difficult to form new customer relationships leading to less brand awareness. Forever New in Town Centre Manors, Hydras It is a small store in a rectangular format.
Size: 375 sq Ft. Approximately.
The customers that come to this store are mostly young girls, IT professionals or housewives of the upper middle or high class.
Store Layout: The store in Town Centre Manors is a small, congested store. It has very less space to move around. The focus does not go on the primary wall. The nesting table at the entrance takes up too much space.
The trial rooms are big and well accommodating. There is no proper defined space for accessories. There is no defined path for the customer Forever New in Korean Park Plaza This store is in rectangular format with a fairly good size.
Size: soft Approximately. The customers that visit this store are mostly loyal customers and are located far away from the Magistrate 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 Layout: The store in Korean Park Plaza is comparatively bigger and spacious. The store provides a well defined path for the customer. It has been put up in such a way that the focus goes on the right places. The store is very spacious and welcoming.
It attracts attention.
Common Features: Almost all the International stores have a Visual Merchandising guideline from their country head office that they have to follow. Some of them are: 0 The collection stories and their display criteria. For instance, the way the story for is be spring it collection has to Tropical Fantasy and the displayed on the primary wall is already decided and The sent window by the display Australian head office. Sign too comes from the Australian head office. The basic store characteristics, like the humongous beautiful mirror behind the cash counter, the chandeliers, the white walls, the fixtures, nesting tables, trail rooms with maroon curtains, the chic and fun soundtracks, the comment book, the catalogues etc.
Whatever things do not get sold off after a particular period AT time are sent Dock to Australia. I en collection Is updated every Mont Everything each store. Sales happen twice a year. This brand wants to ensure that the customer have a first class experience while visiting their store.
So that when they walk out they form an image of the brand in their head and position it as a classy, feminine and delicate place.
Comes from the Australian head office directly to Brand Portfolio Like mentioned before, Forever New is an exclusive women’s 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 DOD visual experience when one enters its store. roofs of women.
The products are like the brand itself, delicate and beautiful. It has a wide variety of products and sizes for all the age.
The stores comprised of almost 25 different types of dresses:
Some of them were:
- Cassia Embellished Strap Dress
- Yvette Skater Dress
- Ella Low Back Dress
- Poppy Strapless Waterfall Dress
The dresses had a very wide price range starting from RSI 2000 to RSI 15,000. The sizes varied from the kind of dresses available. In general the fastest selling sizes were 6 and 8.
The slowest selling sizes were 12 and 16.
The store comprised of almost 45 different kinds of tops
Some of them were:
- Tried High Low Top
- Kook Studded Pocket Tee
- Chelsea Printed Tank
- Mackenzie Roll up sleeve
The prices of the tops ranged from RSI 1200 to RSI 6000. The sizes varied according to the different kinds of tops. The fastest selling sizes were 8, 10, 12 and 14. The slowest selling size was 4.
The store comprised of almost 20 different kinds of bottoms: Some of them were:
- Isabella Draped Pant
- Lea Casual Skinny
- Rural Tuxedo Shorts
- Oslo Piped Pocket Jigging
The prices of the pants ranged from RSI 1200 to RSI 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.
The store comprised of almost 15 different kinds of bags:
Some of them were:
- Lori Satchel
- VA Grace Small Bag
- Ariel Hard Case Clutch
- Lucy Stud Coin Purse
The store comprised of a lot of accessories:
Some of them were: Till Pearly Statement Ring Heather Beret Vanessa Lace Scarf Jelly Enamel Torque
The store comprised of almost 15 different kinds of shoes:
Some of them were:
- Perrine Platform
- Sonic Embellished Sandal
- Candace Diamanté Pump
- Elliot Slipper
The prices of the pants ranged from RSI 2500 to RSI 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 assortment of both the stores, it can be concluded that: The size 4 clientele in the Puns sector is less. The most common sizes are 8, 10 and 12. Oversized people generally do not prefer Forever New for dresses and shoes but they prefer the tops.
According to the Puns Retail Scenario, the direct competitors of Forever New would be: Mango Ezra Even 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 clothing is a Spanish multinational based in company Barcelona.
It designs, manufactures and markets clothing garments and accessories for women and men. Mango opened its first shop in 1984. What started out as a small team began to grow as a result of an ambitious production system based on the philosophy “Justine-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 n original design and a coherent and unified brand image.
Dressing the modern, urban women for her daily needs is the formula they have analyses, adapted and applied in all the countries in which Mango is present.
Since the moment the first Ezra store’s doors were opened in 1975, the growth of the Ezra fashion line has built a been unstoppable. In Ezra famous the has brand competitive successfully clothing industry, worldwide thanks to their premium locations as well as a unique management system of design, production and supply chains. Unlike other fashion brands, it takes Ezra only 10 to 14 says from the time they design new clothing until it arrives in stores. This “fast fashion” concept and operation allow Ezra to always provide the most fashionable clothes to their customers, and the ever-renewed collections definitely help build brand loyalty.
Brand Positioning: Factors Quality Variety Sizes Assortment Value for Money Price Design Style Forever Poor Fair Hell Mango Poor Yale Yale Hell Fair Poor Ezra Poor Good Poor Good Poor Medium Good Good Mango in Puns has established itself only as a women’s wear brand. Unlike Forever New it has a very good assortment of products. It has a category of products which an 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. Ezra in Puns opened up recently in 2011.
It has great style and is up to date with fashion, but unlike Forever New it has sizing issues 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 doesn’t provide value for money. Forever New SOOT Analysis Strengths Filled in the brand gap of mother daughter shopping together.
Unique Products Brand name Customer Loyalty Online Market Weakness A lot of Indian consumers are not able to relate with the brand. Very expensive Weak Promotion Strategies Less brand awareness Opportunities Emerging Markets Increasing Economy New Products Innovation New Technology Threats Intense Competition Substitute Products Substitute Market Losses due to low acceptance rate of consumers Strengths Forever New is a big brand name and a lot of consumers will be directed towards it cause of that.
It has a USPS of filling in the gap of mother daughter shopping together.
It has exclusive products for women. It has high customer loyalty rate. Forever new has established itself in the online market which is the latest trend in the retail business. It ships to India free of cost which adds on to the rest of the advantages. A lot of Indian ‘mothers’ who go out shopping with their daughters won’t 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 don’t notice it much and hence less brand awareness.