1 / 37

Impact of Changing Business Dynamics to Domestic Market

This presentation delves into the evolving business landscape, analyzing factors influencing domestic markets and consumer behaviors. Explore the impacts of political dynamics, commodity fluctuations, consumer awareness, and changing face of retail on businesses. Understand the significance of unity in diversity, consumer trends, housing boom, and organized retail evolution. Gain insights into innovative sales channels, value segmentation, and the rise of home retailing. Learn about unconventional sales channels, digital marketing strategies, and targeting the young demographic. Discover how Portico capitalized on football fever with unique product offerings. Unravel the challenges and opportunities in adapting to shifting business dynamics and consumer preferences.

tmckee
Download Presentation

Impact of Changing Business Dynamics to Domestic Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Impact of Changing Business Dynamics to Domestic Market

  2. Basics

  3. What business are we in? • Who is our target customer? – Age group, area, socio-economic class etc • What are we selling? - product, benefit –real/psychological, service, solution, or combination of the above? • All subsequent slides need to be analyzed considering above parameters.

  4. Major Changes in Business Dynamics

  5. World is becoming one market. • Political factors – bilateral trade agreements, custom duties, exchange rate , balance of trade compulsions post economic crisis etc • Consumer awareness through media, internet, telecom revolution, travel etc • Technology competes across border. • Competition need not be from same product category but diverse universal product basket. Curtain should compete with all window covering products or Bath-mat with other floor covering products.

  6. Commodity Boom • Prices fluctuating and mostly going up across most commodities. • Time for reengineering products to ensure that popular price points are adhered to. • Look at alternative technology, supplier, fiber and so on. • ASP may go up and quantity may come down • Composition of share of wallet may change.

  7. Changing Face of India • Macro factors - growth rate of GDP, rise in Income level, housing boom, retail revolution • Infrastructure – • Transport – road, railway, air • Banking, communication • Legal – GST – making India as one country Despite all the above, Unity in Diversity has not Changed.

  8. Consumer is changing

  9. Consumer has more money. • Consumer was always rich and now getting richer at all income levels. • Consumer has more money to spend to upgrade lifestyle if marketer is willing. • Consumer durables have garnered big money from consumers. It is time for textile companies to create value and garner big money.

  10. India is young country. • India is young country and young customers are expected to be different. • Brand conscious • Lalitaji does not work any more. Surf using “Daag Achche Hai” • Informed customer - Internet and social communities - the way consumer communicate to each other has changed

  11. Housing Boom • New homes is big occasion and big reason to buy all new home products. • Smaller homes metro – products for small home • Nuclear family

  12. Channel for Sales

  13. Changing Face of Retail • Modern trade: • From Chandni Chowk to Select Saket Mall • From street shopping to air-conditioned luxury centers • Week-end family outing destination • Organized Retail expected to be 15% by 2013. Misleading as it is already higher in lifestyle category in big metro and mini-metro markets.

  14. Changing Face of organized retailers • After economic crisis, consolidation, all retailers are back on aggressive growth path. Expansion also in B and C category towns. Retailers are achieving critical scale. Private labels and imports becoming more viable. • During retail evolution process– • MRP going up • cost to MRP multiple becoming favorable. • Consumer willing to buy at higher prices. • Display will generate new demand as well as convert latent demand in actual demand.

  15. Value Segment • Value retailing was cheap poor quality products at one time. • Now, Value retailers are upgrading products. • Many value retailers offer lifestyle experience and also sell same products that premium stores sell. • Premium – Department store and Hyper – value are definition of text-books. Consumer may not follow the same. • Value need to be seen by benchmark of Indian customers and not by Western markets.

  16. Home Retail • Increase in space by leading players – Home Center, Home Stop, @home, Home town • Other home retailers on block – Evok, Reliance Living, Houseful, Home Store etc. • Soft furnishing – one of the most profitable area for home retailers – advantage – textile -Other product not easy to get higher price and margin. • One of the large retail group – Soft furnishing group beat apparel for 12 weeks continuously and they changed plans for category.

  17. Unconventional Channel of Sales • TV Shopping – • Product presentation luxury • 70% sales coming from non-metro towns. Latent demand and underserved. • Internet

  18. Marketers/Retailers • Create new demand for product categories • Watch your competition and respond suitably.

  19. Portico Experience

  20. Targeting the youth • Major chunk of Indian population is young • Sports is big thing. • Foot-ball becoming extremely popular with premium youth customers. Foot-ball is cool. • The biggest sporting event - FIFA tournament in 2010 • Introduced product at Rs. 1999/- single bed sheet set

  21. Product

  22. Cashing on Football mania • Typical display

  23. Display

  24. Wedding Collection

  25. Trousseau • Portico had introduced wedding collection of silk yarn dyed jacquard bedding of 13 piece set at MRP Rs.20000/- • Designs from exporter who sold same products to leading brands of Italy • Did not do well and difficult to sell at even Rs. 10000/-

  26. Marigold- The Wedding collection • A proper wedding gifting solution • A noble idea of reusable packaging • Huge expenditure in weddings

  27. Marigold- Comforter set

  28. Duvet Set and towel set

  29. Marketing Initiative-Marigold collection • Print ads- Newspaper and Magazines • Ad in Matrimonial classified(Targeting the right customers) • Contest on Internet • Shaadi.com • Bharatmatrimony.com

  30. Marigold-print ad

  31. Contest on Shaadi.com

  32. Packaging Innovation

  33. Packaging • Plastic was becoming expensive. • Eco movement becoming bigger. • Lot of wastage of small bits at stitching plant. • Modern retail did not require product to be packed in plastic.

  34. Creative Portico (India) Pvt. Ltd. Eco-Friendly Cushion Packaging

  35. Result • Solution to make cushion cover from waste – • Saving of cost • More eco friendly • More value to consumer • Consumer can experience look and feel of product better and so on. • Got the award for “Innovation in Packaging” by Du Pont, USA and “India Star award” for packaging.

  36. You are most welcome to give me feed-back now or send to rajiv@porticoindia.com or rajivmerchant@hotmail.com

  37. Thank You

More Related