INTERNATIONAL   

MARKET  RESEARCH

10/21/2009
SRUTI  AHIR­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­0920849
AROMAL  JOE­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­0920806
SUBHADEEP  SAHA­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­0920831
TONY  K  ROY­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­0920835
DIBYAJYOTI  PAL­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­0920814

FABINDIA 1
We Are..
              fabindia

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Headquarters:    Delhi Area, India
Industry:             Retail
Type:                   Privately Held 
Status:                 Operating 
Company Size:   1,000 employees 
Founded:            1958 
Website:             http://www.fabindia.net
Our Mission
Mission: Our Endeavour is to provide customers 
with hand crafted products  which help support 
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and encourage good craftsmanship.
GOALS AND 
OBJECTIVES

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•To capture and establish a niche market
in Germany.
•To increase sales and profits through
exporting our products to our European
partners.
•To provide products that differentiates
fashion in Europe.

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Why In Germany ??

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PRODUCTS THAT FAB 
INDIA PLANS TO EXPORT 

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POTENTIAL PARTNERS FOR 
FABINDIA IN EUROPE

Inditex Group Gap Inc Hennes & Mauritz

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COMPETITOR ANALYSIS
Inditex Group Gap Inc. H&M
1-yr sales growth 4.4% 7.8% 11.4%

1-yr net income 13.1% 16.1% 11.8%

growth
No. Of countries 73 44 34
they operate

Stores in Various Countries
Inditex Group Gap Inc. H&M
Worldwide 4430 3465 1800
Germany 73 - 346
Austria 12 - 61
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Netherlands 23 - 98
Sweden 10 - 156
 Insights…
mpany, known for its fast fashion clothing offerings for women, men

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Headquarters: Stockholm Area, Sweden
Industry: Retail
Type: Public 
CompanyStatus:Operating
Company Size: 53,430 employees
2006 Revenue: 68,400 mil [SEK] (12%)  7

Founded: 1947
 WHY H&M?
d European countries. 
apparel retailers, comprising of 4430 stores worldwide, but it has only 73 store

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 but number of stores in Germany(346), Austria(61), Netherlands(98), & Swed
ermany in the Apparel Sector.
 be 11.4%, much higher to that of Inditex(4.4%) and Gap Inc.(7.8%)
about 25%of its sales.

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Companies and their 
products export to EUROPE
Name of the Company Export Market Product Export

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Uzma international European Market Silk dresses, Silk tops, Silk skirts,
Silk kurties, Silk trousers, Silk
(China)
Ronak Weaving/ Europe, America, Bangladesh, Georgette Fabric
stoles, Silk wrap tops, Silk kaftans,
Australia, and all other capital Chiffon Fabric
Silk dusters
Garments (Surat, INDIA)
Shubhangi Overseas USA, European Countries
markets DESIGNER
Crepe FabricSALWAR KAMEEZ
LEHNGA CHOLI
Satin Fabric
LADIES KURTIS
Fashion wears, Men’s wear,
DESIGNER
women's wear,SAREES
swim wear, Beach
HOME FURNISHING
wears, Children wear, Fashion
Accessories like stoles, hand bags,
scarves Etc.

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 Fabindia S.W.O.T. Analysis

Weakness
 Differentiable products 
Strengt  No specific promotions 
 Brand recognition and loyalty strategy 

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hs  Diverse product mix   Limited channels of business 

es
 Partnering with suppliers    Sourcing strategy skewed towards supp
 In­ house manufacturing   Inconsistent quality of 
 Price Trends Setter   Products  
 Different categories of stores   Inconsistent service in 
 Customer Loyalty  stores 

Opportuniti
 In  store  merchandising  & 
Threa

 Substitute producing competitors navigation 
 Promoting e­business channel 

es
 Not  in  touch  with  Fashion
ts

Trends    
 Organic foods market 
   Customer acquisition strategies
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P.E.S.T. Analysis

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 Production Details

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e necessary production will be done in India.
are 22,000 small sources from rural areas in India.
ur states of sources in India are Andhra Pradesh, Uttar Pradesh, Gujrat, and Rajasthan
ical persons are more available in India rather than Germany for the production of ethn
n’t be setting up our manufacturing units in Germany.
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 TARGET MARKET
Ours is a niche market comprising of:
•Indians & also Asians residing in Germany
•Experimenters in Germany
•Socio-Cultural Party-Goers

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Total Ethnic Minority population 1951–2001, in millions and percentage of GB population
year 1951 1961 1971 1981 1991 2001
per cent 0.4 1.0 2.3 3.9 5.2 7.9
 Logistics
TOP FIVE LOGISTICS COMPANIES IN INDIA

TNT AFL DHL BLUE DART GATI

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Why TNT ???
 200 countries world wide. 
uch as 9:00 Express, 10:00 Express, 12:00 Express, Economy Express, and Special Priority Express
ight items are delivered safely and on time throughout the world. 
nd day definite express delivery services in 200 countries. TNT has built our reputation on a record

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 Pricing & Product
PRICING OF PRODUCTS BY COMPETETORS (uzm
Category Ranging from
Kid’s wear E9.99- E11.99

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Men SHERWANIS- E111.11 – E 6.99
KURTAS- E 5.99
Ladies SALWARS-E 9.99 – E49.99
SAREES- E5.99 – E69.99

Our Pricing Strategy: Skimming approach to cater to the needs of a niche m

PRODUCT RANGE
MENS WEAR
Long kurtha € 12 - € 19
Short kutha € 7 - € 11
Pituk silk mutka € 31 - € 47
WOMENS WEAR
Chudidar € 14 - € 21
Sarees € 24 - € 38
Top girls € 12 - € 16
ACCESORIES
Purse € 26 - € 40
jewlerry € 10 - € 80

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The per capita income of germany is $37428
The per capita income of U.S.A is $41209
And so we have used prices similar to that of U.S.A in GERMANY
Promotion
German Garment sector’s Promotion 

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Strategy

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 PLACE
Largest German and non­German ethnic groups
RHINE –RUHR (METROPOLITAN REGION)

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TROPOLITAN REGION):
 city of the Rhineland, the very Western part of Germany. 
ularly among young Germans, Cologne and Düsseldorf are known for its nightlife and op
ans and others Turks, Poles, Italians, Dutch, French, Arabs, Iranians, South Asians like
r target market because it has the heighest number of Indians and Asians.
germany:
9% (male 5,894,724/female 5,590,373)
6.3% (male 27,811,357/female 26,790,222) 
ver: 19.8% (male 6,771,972/female 9,542,348)

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Financial Aspects of Fabindia and 
H&M
Projected Profit and Loss
New Look is in the early stage of development, thus initial projections have
only been made on accounts that are believed to most drive the income

10/21/2009
statement.

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 Financial aspects of Fabindia and 
H&M
aside for further expansions. This fund is more than enough for H&M for taking the ris

10/21/2009
nt to EUR 5245.48m
305.69m.
h the companies are in a sound financial position in order to enter into a partnership
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nancial aspects of Fabindia and H&M

10/21/2009
f a garment as per the present market prices is round about 50 to 65
at the prevailing normal garment prices of 100 euros.
xtra costs of exports by a margin it gets by selling the product at a pri
gh profitability in the business proposal for both the companies as the

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KEY ISSUES

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•To convince and promote the European
consumers about Indian ethnic wear.
•

•Inflationary pressures on core areas across

Europe are hitting the consumer’s ability to
spend on discretionary areas.
•An expected downturn in consumer
confidence across Europe will intensify
competition for share of consumer spend.
•The end products, i.e, the ethnic garment
should be compatible with the European
weather and comfortable with consumers. 21
 RISKS & REWARDS

RISKS:

10/21/2009
language , business culture and legal system can increase the risk of con
delivering the goods to H&M can increase our financial burden.
s in exchange rates.

REWARDS:
•Capturing the new niche market of Germany and its neighboring countri
•Earning new and extra profits through extra sales.
•Establishing brand value through double tagging.

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 10/21/2009
THANK    YOU

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10/21/2009
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