WOMEN S WEAR COMPETITION IN DENIM JEANS AND CONSUMER ANALYSIS GRADUATION RESEARCH PROJECT REPORT PEPE JEANS LONDON SUBMITTED BY SNEHIL VERMA BATCH 2013-17 BACHELOR OF FASHION TECHNOLOGY NATIONAL INSTITUTE OF FASHION TECHNOLOGY MUMBAI 1
ABSTRACT The report is about the graduation project as a part of the academic curriculum. The internship was conducted at PEPE JEANS LONDON MUMBAI The project concentrated on Women s Wear Competition In Denim Jeans And Consumer Analysis majorly. Other than that a study on the major product categories and day to day activities were also focused upon. For this report it was necessary to observe jeans category of PEPE JEANS LONDON, focusing on the Ladies wear jeans, problems of the concerned category, consumer expectation study in the same segment and whether They are able to deliver the same or needs to improvise. All the product categories were studied, but the ladies-wear jeans in depth. The styling project helped to develop different looks for the brand so that the customer should be enthusiastic to shop from the store and the project on PEPE JEANS LONDON ladies wear was carried out in order to help the company improve on its position for the particular product segment. Key words Women s Wear Competition, Consumer Analysis, Pepe Jeans London, Store Wise Competition 2
CERTIFICATE OF OWNERSHIP AND ORIGINALITY All the information is based on the data received or drawn while working for Pepe Jeans India Private Limited and after personal research and understanding. All the information in the report is verified to the best of author s ability but does not accept responsibility for the loss arising from decisions based on them. This report has been prepared for the exclusive academic use of National Institute of Fashion Technology, Mumbai. All rights reserved. No part of the report may be reproduced or transmitted in any form or by any means without the prior permission of the author. SNEHIL VERMA 3
CERTIFICATE FROM COMPANY REGARDING COMPLETION OF WORK 4
ACKNOWLEDGEMENT I Snehil Verma would like to acknowledge that the experience I gained and the value addition to my course content has been chiefly due to opportunity and exposure provided by Pepe Jeans India Private Limited. My special thanks to Mr. Manish Joshi and Shruti Kartha who in spite of their busy schedules took time to guide, coach and mentor me in all disciplines related to Buying Process (PJL). My special thanks to my NIFT Mumbai mentor, Prof. Jomichan S.P for preparing me with sound fundamentals to undertake this project. Your Sincerely SNEHIL VERMA MUM13AP29 5
INDEX S. No Topic Page. No 1.0,1.1 Introduction, Company Overview 7 To13 1.3 Competitors 14 2.0 Review Of Literature 15 To 18 3.0 About The Project 19 3.1 Objectives Of Project 19 3.1.2 Methodology 19 4.0 Store Study 20 To 21 5.0 Market Research 22 To 27 5.1 Key Finding From The Survey 28 6.0 Competition Analysis 29 To 42 7.0 Store Wise Competition 42 8.0 Perceptual Mapping 43 9.0 Swot Analysis 44,45 10.0 Suggestion 45 11.0 Conclusion 46 12.0 Bibliography 47 13.0 Annexures 48,49 6
1.0 INTRODUCTION 1.1 COMPANY OVERVIEW fig.1.1.1 Pepe Jeans London was established in the chic Portobello Road area of London in 1973. From its origins as a tiny market stall to more than half a US $ billion dollar denim and casual wear brand, Pepe has transformed itself to one of the fastest growing jeans-wear labels in Europe. The brand today has presence in more than 80 countries across the world. The brand is currently the leading player in the premium jeans and casual wear segment, enjoying a market share of more than 25 percent. Pepe Jeans is a well-known jeans brand. It has sales in over 60 places around the world. Pepe Jeans was originally just a small market on the Portobello road located in West London. The brand was named Pepe, because it was a short word that could be written without much trouble. The supermodel Kate Moss s first advertising campaign was for Pepe Jeans. The brand was setup by three brothers in 1973.. Pepe Jeans are known for their diverse apparel collections. They have the Utilitarian collection which comprises of fashion apparel with military attire elements imbibed in it. They vary in colours from green, khakis, grays, tans and olives and have other features like multiple pockets and loose fashion silhouettes. Pepe Jeans contribute to both man and women s wardrobe by their wide collection of trendy T-shirts, shorts, pants, Jerseys and skirts. The shirts have coloured checks and highlighted stripes. The Pepe clothing sports tones of red, yellow, pink, lime and green and some have hand embroidered details. Pepe Jeans host many fashion shows and advertising campaigns and sign many famous models and sports personalities. Pepe Jeans introduced art exhibitions in their birth place- Portobello Road, London. They exhibit the work of local artists as well as international ones. 7
fig.1.1.2 Pepe Jeans London recognized premium fashion brand, offering customers a range of highquality product lines including men s, women s and children s casual apparel, denim, accessories and a range of licensed product. Pepe Jeans London uses a variety of direct and indirect distribution channels. Its business model is based on indirect selling through wholesale and direct selling through retail and e-commerce. Pepe Jeans London distributes to over 80 countries worldwide. They design clothing and accessories that aim to appeal to a diverse range of customers with their "modern casual classic cool" and "preppy with a twist" lifestyle looks. With this look they try to define their lifestyle brand. The Pepe Jeans London brand possesses strong world-wide brand awareness. Retail Retail accounts for over 70% of Pepe Jeans London Europe sales. This consists principally of sales generated from approximately 230 stores in the Europe. Our store base includes flagships, which are our largest stores carrying the full range of Pepe Jeans London apparel and accessories, and are situated in high-profile locations in major cities that enhance the positioning and exposure of the brand; anchor stores, which are located on high-traffic retail streets; and company stores, which are primarily located in premium outlet centers and carry specially designed merchandise at a lower price point than our other stores. 8
Wholesale wholesale business represents approximately 30% of Pepe Jeans London sales. They are continually expanding the brand s presence in top doors at both department stores, maximizing sales of key items and upgrading the in-store experience by creating clear and impactful store presentations. Also licensed certain lifestyle product categories including eyewear and accessories, which are also sold at many MBO, as well as through other retailers. International fig.1.1.3 Europe Pepe Jeans London has well-established operations in Europe that accounted for approximately 50% of Pepe Jeans London reported revenues in 2014. The largest operations are in Northern and Central Europe, which represent over 70% of Pepe Jeans London reported revenues in the region. Across Europe, Pepe Jeans London products are primarily sold through the wholesale channel, which represents over 60% of sales with customers ranging from large department stores to small independent stores. There are also over 600 retail stores (of which approximately 45% are company-operated, while the remainder is franchisee and distributor stores) and approximately 150 concession locations. Company-operated store base in Europe consists of full price and outlet stores. Pepe Jeans London s e-commerce operations are welldeveloped in Europe. In 2014, our directly operated European e-commerce sites generated over $70 million in revenues and they have the potential to ship to over 30 countries. Looking 9
ahead, we see the largest potential to open additional retail locations in the Middle East and Africa (which is included within our European operations). Asia With the exception of Japanese operations, licensed Pepe Jeans London to third parties or joint ventures throughout Asia. We have entered various joint venture agreements in highgrowth markets including China, India (September 1989) and Australia and New Zealand 1.2 Pepe Jeans India In India, Pepe Jeans London is in top of the international denim brand and has the market share of more than 20%. The product is about not only the perfect fit but also the brand value and the aspirations attached to it that draws the attention of the consumers. Although, this is true to the word for the men s wear and kid s wear collection, The attitude of the brand lacks to reflect on the women s wear collection with limited options available for the same. A competitor analysis in terms of the product width and depth for women, a complete option plan of all categories of Pepe jeans and consumer s perspective of the brand will help them comprehend how and where it lacks to recognize the need of its female consumers. The first section of the report deals with analysis of brand overview and detailed analysis of competitors. The second section of the report deals with primary research done by the researcher. It includes data that was collected, analysed and interpreted with the help of statistical tools like frequency distribution (bar and pie chart). On the analysis, conclusions were drawn and requisite recommendations were provided. The third section of the report deals with detailed analysis of the competitors based on price range and product offering of each brand, followed by SWOT analysis. The final section of this report consists of additional information that is related to the main content of the report. Annexure includes questionnaire based on which the primary data was collected and research study was conducted. Pepe Jeans London was first launched in India in 1989. Pepe Jeans London Apparel, accessories and Footwear collections are marketed by Pepe Jeans India Pvt. Ltd. Today, the brand is available in over 1000 select points of sale covering over 98 cities across the country and, is known as the leading international lifestyle brand present in the country. Pepe Jeans London has been a pioneer in India, bringing international concepts into the country ahead of its competitors. The brand s persona is all about Classic, European and cool! 10
Pepe Jeans London Apparels India came to the country 28 years ago and with its British heritage and appeal it connected very well with customers in the super premium segment. The product range is varied across menswear and women s wear categories of top wear and bottom wear. The line is further divided into casual and denim. While Casual wear caters to the urban, peppy, matured customer the denim line with its street and sexy edgy styling is more targeted at teens and youngsters who are in their early 20s. Some key categories include men s shirts, women and men s knits, denims, pants and dresses. ORGANIZATION STRUCTURE Fig 1.2.1 11
Products Pepe Jeans London has, aimed at the 25 to 45 year old consumer; its apparel is aimed at Men, Women and Children. Men s wear The MENSWEAR collection was launched in the USA in 1985 and is positioned as inspirational, but accessible designer wear. The men s wear line strives to offer unique, innovative designs to classic men s apparel. The target group is: 25-45 years old (bull s eye 30) Higher level education Young professionals Living in urban/residential areas Fashion aware but no fashion victims Interested in global travel, literature, new technologies. fig 1.2.2 12
Women s wear Pepe Jeans London is one of the few menswear designers to have become a successful Women s wear designer. The target group is: Higher level education Young professionals Living in urban/residential areas Fashion aware but no fashion victims fig 1.2.3 Children s wear Pepe Jeans London is one of the leading children swear designer. Its fresh design and sensibility is a perfect answer to the demand by kids and parents alike, for high quality, modern European classics. 13
The target group is: For boys/girls is 4-16 years old fig 1.2.4 Denim Denim designs are inspired by American classics, finished with a modern edge and fresh spirit. The target group is: 18-28 yrs. old Higher level education Students and young professional Living in urban/residential areas Spend money on clothing bit no fashion victims Interest in music, fashion and nightlife Innovative but Commercial Brand heritage with a European design twist 14
1.3 Competitors Product Category:- SHIRTS 1. UCB 2. US POLO 3. TOMMY HILFIGER TEES\TOPS 1. UCB 2. JACK & JONES & VERA MODA 3. LEVIS POLOS 1. US POLO 2. TOMMY HILFIGER 3. LP DENIUM 1. LEVIS 2. LEE 3. JACK & JONES, VERA MODA CHINOS 1. US POLO 2. TOMMY HILFIGER 3. UCB SHORTS/Hot Pants 1. UCB 2. JACK & JONES & VERA MODA 3. TOMMY HILFIGER 15
2.0 Review of Literature 2.1 Industry Overview The Indian retail market is expected to demonstrate a promising year-on-year growth of 6% to reach USD 865 billion, by 2023, from the current USD 490 billion. The share of apparel in India s retail market is 8%, corresponding to a value of USD 40 billion. In addition to fashion apparel, the growing demand for fashion accessories makes the Indian fashion market both interesting and lucrative. The Indian fashion retail market has witnessed several fascinating changes and challenges in recent years, which are indicators of the country s evolving fashion retail market. The challenges associated with these changes need to be addressed in the most efficient and prudent manner in order to harness the concomitant benefits. fig 2.1.1 fig 2.1.2 16
Women s apparel market pegged at INR 93,080 Cr in 2014, and is expected to reach INR 2,49,710 Cr by 2024 as it will grow at a CAGR of 10.4% during this period. Denim, innerwear and T-shirts represent the three fastest growing categories growing at a CAGR of 18%, 17% and 15% respectively. A women s casual wear collection largely comprises of fashionable skirts, tops made out of chiffon, silk, velvet, cargo, cropped or utility pants, capris and shirts made out of denim, silk and chambray, different washes of denim, leather or denim jackets etc. Because comfort and fig 2.1.3 casual shirt, trousers, tops, skirts in women Due to comfort factor, a large number of choices for fabric, designs, fits - this category of casuals has been quite popular from many years with youth in both urban as well as rural areas. The market size for women s casual shirts and trousers was INR 2214Cr in 2014 and is estimated to grow at CAGR of 12 % to reach INR 4064Cr in 2019. fig 2.1.4 17
Indian denim market for women The Indian denim market is exhibiting continual growth trends over the years. With newer technologies and trends, territories the market is only going to see some exciting moments ahead. Not only men, even teenage girls in rural areas are opting for denim wear. Denim is a high growth casual wear category as the consumers find it to be fashionable and comfortable, and gave it the necessary style quotient. A lot of choices are available to the consumer for finishes looks, colours, washes. Nowadays the blue denim are being replaced by the colourful, printed denims or jeggings. Due to high demand new synthetic fabrics are now used extensively. The trend is not restricted to women. Due to the high popularity of denims, many brands are coming up with innovative products like breathable jeans made up of new fabric & new styles. The market size of women s denim was INR 1460Cr in 2014 and is estimated to grow at CAGR of 18% to reach INR 3340Cr in 2019. T-shirt fig 2.1.5 T-shirts is considered as one of the most comfortable and dynamic categories of casual wear. Due to its soft knit fabric, the fits, and the versatile use t-shirts comprises of highly demanded product segment and is acceptable to a huge consumer range. The market size for women, t- shirts was INR 680 in 2014 and is estimated to grow at CAGR of 15% to reach INR 1490Cr in 2019. fig 2.1.6 18
Key Trends Casual wear as life style product Most apparel brand are extending their formal wear brand and repositioning them into other wardrobe sections like casual wear so as to turn the brand into a lifestyle label. In the process, the brand acquires size. The availability and accessibility of international brands has contributed largely to the trend of increasing favourability to the casual wear. Casual apparel suits the changing lifestyles and fast paced youth of this century and it meets the demand of comfort and hectic life style other than making them & feel good. E-tailing Casual wear market has witnessed a rapid growth in e-commerce due to rising penetration of internet across India. Owing to its convenience, speed, competitive expected to aid the growth of apparel market through online retailing channel in the coming years. Growth driver One of the main keys for success of Casual wear brands is constantly innovating new product range which includes wide range of styles in terms of prints, designs and fabrics, so as to match the changing preferences of the customers, they are being more creative. With the general standard of living rising, leaving people with increased disposable incomes, the Indian consumers today are looking out for more options. Also, India essentially being a young nation, most of the growth in this segment is driven by the youth and its preferences. The youth of today are exhibiting more and more mobility, openness and desire to experiment and are opting for cool, smart casual wear. The changing tasted invigorates growth and is a major reason for a renewed boost for this segment. Rapidly growing urban population; more people frequently wearing casual outfits to work; and manufacturing picking up pace with larger and improved units are also substantive contributors. Consumer behaviour Due to plethora of existing options, changing styles and exposure to world fashion, the average Indian apparel consumer has become much more capricious. Increasing comfort with growing aspirations and new trends is rendering the consumers to be more open-minded and experimentative. This, coupled with increasing urbanization, higher discretionary spending and evolving lifestyle is leading to casualization of both men and women s wardrobes. Smart casuals with a few dos and don ts are becoming more and more acceptable on a daily basis and are not strictly restricted to a Friday dressing format anymore. The way ahead of casual wear The Indian casual wear market is poised for promising growth. Factors including a booming middle class population, a paradigm shift in consumers choices and disposable income ensure promising future for casual wear segment.. There is a high scope for innovative products in this segment. 19
3.0 ABOUT THE PROJECT There is high competition in western women wear category. A product gap is seen in terms of what competitive brands provide to customers, which gives them an edge. The product gap - also called the segment or positioning gap is that part of the market that the brand is excluded from because of product characteristics. It is also essential to know the brand s price competency for product matrix, to sell confidently and with the right facts. Therefore, the need for better devised marketing and promotional strategies of competitive brands arises. Hence, the following project will try and benchmark the PEPE jeans London brand in western-wear jeans category against the top brands via different factors like: design, fit, length, material, waist rise etc. to analyse where the brand is trailing. 3.1 THE OBJECTIVES OF PROJECT The primary objective of this study is to analyse the reasons for diminishing sales of PEPE jeans in India. This study is limited to the comparative study on the basis of products only. 3.1.1Sub objectives: Comparison of offerings by brands in Design Fit Length Material Waist rise Finding relation between preference and offerings. Finding gaps and develop strategies to fill them. 3.1.2Methodology Brand study Competitors study Store study Survey Data analysis 20
4.0 Store study Store study is done on the basis of the new arrival of the jeans of the spring summer 2017 4.1 Pepe jeans fig.4.1.1 Pepe jeans offers more solid colour option and less of other design option. Material wise also they offer more in stretchable material. In length wise they provide more in full length. In waist rise they provide more in medium rise. In fit option pepe provide more of average option in each category. 4.2 Levis fig.4.2.1 Levis offers more in solid, ripped & distressed design. Material wise they offers more in stretchable material which is also preferred by the respondent. Medium rise is more offered by the levis and in fits levis provide more in slim fit and in straight fit. 21
4.3 Vero Moda fig.4.3.1 Vero Moda is more of classic brand so they provide more in solid colour and rugged as they cater women of every age. In material wise they also provide more stretchable material options. In length wise they provide more in full length and in waist rise they provide more in medium rise. In fits they provide more in regular fit, skinny fit and in slim fit. 4.4 Tommy Hilfiger fig.4.4.1 Tommy Hilfiger is more in to the men wear market which is approximate of around 70% so whatever they offers in women- wear is very less so design wise they offer very less of in each category design option. Material wise they offer more in stretchable material. In length they provide more in full length. In Waist rise they provide more in medium rise. In fits they provide more in regular fit. 5.0 MARKET RESEARCH 22
The market research has been conducted to understand the pulse and inclination of the target consumer group. The sample size of the Consumer Survey that is conducted is around 100.The sample size was intentionally kept smaller so that one could interact with these consumers and understand their pulse instead of just carrying out a quantitative survey. The focus was on quality rather than quantity. Research Findings: 1. Age Group 2. Household income 3. Different medium to know about new brands/offers collection 23
4. brand preference for a jeans 5. factors which influence buying decision 6. Preference in Style 24
7. Preference in Material 8. Preference in Waist rise 9. Preference in Fits 25
10. Any quality related problems in jeans 11. The brand in which you have faced the quality issue marked in above question 12. Overall experience rate the following brand 26
13. Which colour jeans you prefer to buy more 14. Shop from Pepe jeans store 27
15. medium you prefer more shopping jeans Suggestion For Pepe Jeans by the respondent Do more advertising Can't say. Advertise more Have more choices Have more designees Improve marketing Increase online presence Improve Fit. No women exclusive fashion store and small collection It's difficult to find Pepe store near me No Pepe jeans store near me In Indore I thought Pepe jeans is more targeted to men. Make mix shade of black n indigo None I don't know much about Pepe jeans Better price and better design Store layout should be worked upon Have female sales person also. Increase options 28
Boring designs Have a dedicated women s wear store Improve Post Sales Customer Service a women exclusive store may be would help Pepe Jeans store are so few and have so less to offer i hardly visit one. Too much of Denim NO I personally don't find the brand attractive enough More Aggressive Marketing might help and good designs should also be introduced Brand should feel like more directed. You can't put everything in one small store. Good no Make your fabric a more stretchable Pls bring new collection of jeans 5.1 Key finding from the survey Levis is the most preferred brand for the jeans where as pepe jeans comes third preferred brand for the jeans. People get to know about new brands, brands new collection and offers through social media more followed by the TV commercials so pepe jeans need to invest more in social media and in TV commercial. Comfort and fit is considered most important factor while buying so pepe jeans need to focus more on comfort and fit of the jeans than on any other option. Solid colour option most preferred by the respondent which is mostly offered by the pepe jeans but the problem is with the brand pepe jeans is that they offer mostly blue coloured jeans and they offer very less of the other colour like black, grey, while in women s wear jeans so there is need to add more colour option by the brand so that the brand can increase its sale. Stretchable material in jeans is most preferred by the respondent. Medium rise is most preferred by the respondent in the waist rise. Slim fit and skinny fit is most preferred by the respondent. Respondent feels quality related problem is colour bleeding & wear & tear in jeans. Mostly respondent feels that levis jeans has most quality related problem. Respondent feels overall experience of levis store is very good. Respondent choose black colour jeans mostly than any other colour jeans while pepe jeans offer most of blue colour jeans. 66.4% respondent said that they have shopped from the pepe jeans. Around 80% respondent said they shop jeans offline. 29
6.0 COMPETITON ANALYSIS In order to better understand the scope for a brand like PEPE JEANS LONDON in the Indian women s wear market, a close study of the competing brands, on the basis of the following factors-: Design Fit Length Material Waist rise Hence, I tried studying on all these point of the competing brands closely so that I could gauge the current position of PEPE JEANS in jeans and the future prospects that the brand can venture into in this category. In order to facilitate the study, I, first, identified the competing brands in jeans category. 6.1 Design(style) In style various brands provide many options in jeans to the customers what can be done is to analyse the what are customers demands and how much percentage the brands are offering. 6.1.1 Vero Moda Style VEROMODA OFFERED CUSTOMER PREFERED 33% 33% 30% 11% 15% 0% 7% 0% 4% 0% 7% 4% 0% 3% 8% 0% 22% 22% fig.6.1.1.1 30
6.1.2 Only Style ONLY OFFERED CUSTOMER PREFERED 24% 30% 12% 16% 15% 20% 7% 4% 4% 7% 0% 4% 4% 3% 8% 8% 22% 12% fig.6.1.2.1 6.1.3 Levis LEVI'S OFFERED 25% Style 7% 0% 4% 5% 7% 5% 4% 5% 3% CUSTOMER PREFERED 20% 15% 10% 8% 30% 20% 22% 10% Distressed Embroidery Knee Cut Patch Printed Ripped Rugged Solid (One Shade) fig.6.1.3 Washed 6.1.4 TOMMY HILFIGER style TOMMY HILFIGER OFFERED 0% 7% 0% 4% 0% 7% 0% 4% 0% 3% CUSTOMER PREFERED 10% 15% 10% 8% 40% 40% 30% 22% Distressed Embroidery Knee Cut Patch Printed Ripped Rugged Solid (One Shade) Washed fig.6.1.4 31
6.1.5 Pepe jeans PEPE OFFERED Style CUSTOMER PREFERED 25% 7% 4% 7% 0% 0% 13% 4% 0% 3% 19% 15% 6% 8% 30% 25% 22% 13% fig.6.1.5 keys findings In distressed jeans pepe jeans is providing more options but the customer demand is less which is around 7 % and company is providing around 25% In embroidery jeans there is demand from the customer but pepe jeans is not giving any options where as brands like only & Levis are giving options. In knee cut also there is demand but pepe jeans is not giving any options In path design there is less demand of around 4 % is there but company is giving option of around 13%. Brand Only and levis only full-fill customer demand. There is demand of around 3% printed jeans but pepe jeans is not giving any option in that also. In ripped jeans pepe jeans is close to the customer demands which is around 15% and pepe jeans has around 19 % of options. In rugged also pepe jeans is close to customer demands. In solid colour jeans pepe jeans is close to the customer demand but still lacks in options and demand is still higher than offering. There option are less in heavy washed jeans but demand is higher than the offering so they need to increase more option in heavy washed jeans. 32
6.2 Fit Fit is one of the most important part while customers buy as only if fitting is proper than only wearing jeans is comfortable. Below we will analyse various fits provided by the various brand and where Pepe jeans stand in that. 6.2.1 Vero Moda Fit CUSTOMER PREFERED VEROMODA OFFERED 25% 22% 20% 22% 22% 16% 15% 6% 6% 0% 9% 11% 9% 6% 6% 6% Boot Leg Boyfriend Fit Regular Fit Skinny Fit Slim Fit Straight Fit Tapered Fit Ultra Skinny Fit fig.6.2.1 6.2.2 Only Fit CUSTOMER PREFERED ONLY OFFERED 48% 16% 15% 0% 4% 8% 8% 20% 16% 25% 9% 8% 9% 4% 6% 4% Boot Leg Boyfriend Fit Regular Fit Skinny Fit Slim Fit Straight Fit Tapered Fit Ultra Skinny Fit fig.6.2.2 33
6.2.3 Levis Fit 5% 0% CUSTOMER PREFERED LEVI'S OFFERED 25% 20% 20% 20% 16% 15% 15% 10% 10% 9% 9% 10% 10% 6% Boot Leg Boyfriend Fit Regular Fit Skinny Fit Slim Fit Straight Fit Tapered Fit Ultra Skinny Fit fig.6.2.3 6.2.4 Tommy Hilfiger Fit CUSTOMER PREFERED 60% TOMMY HILFIGER OFFERED 0% 16% 15% 20% 25% 20% 10% 0% 0% 9% 10% 9% 0% 6% 0% Boot Leg Boyfriend Fit Regular Fit Skinny Fit Slim Fit Straight Fit Tapered Fit Ultra Skinny Fit fig.6.2.4 6.2.5 Pepe jeans fit CUSTOMER PREFERED PEPE OFFERED 0% 0% 16% 19% 13% 15% 25% 25% 25% 20% 9% 13% 9% 0% 6% 6% Boot Leg Boyfriend Fit Regular Fit Skinny Fit Slim Fit Straight Fit Tapered Fit Ultra Skinny Fit fig.6.2.5 34
Key finding- Pepe jeans provide maximum fit types of jeans. Like there demand for the tapered fit but still pepe jeans is not offering. There is more demand in straight fit but still they offer less style. In regular fit & skinny fit demand is less but still pepe jeans provide more fit wise offering. In slim fit only they full fill all the demands for the customers. 6.3 Length length wise comparison is done among competitor brands with ¾ length, angle length, calf length and full length. 6.3.1 Vero Moda Length CUSTOMER PREFERED VEROMODA OFFERED 41% 36% 50% 7% 17% 22% 16% 11% 3/4th Length Ankle Length Calf Length Full Length fig.6.3.1 35
6.3.2 Only Length CUSTOMER PREFERED ONLY OFFERED 72% 41% 36% 7% 16% 8% 8% 12% 3/4th Length Ankle Length Calf Length Full Length fig.6.3.2 6.3.3 Levis Length CUSTOMER PREFERED LEVI'S OFFERED 70% 41% 36% 7% 15% 15% 16% 0% 3/4th Length Ankle Length Calf Length Full Length fig.6.3.3 36
6.3.4 TOMMY HILFIGER Length CUSTOMER PREFERED TOMMY HILFIGER OFFERED 70% 7% 0% 41% 10% 16% 20% 36% 3/4th Length Ankle Length Calf Length Full Length fig.6.3.4 6.3.5 Pepe jeans Length CUSTOMER PREFERED PEPE OFFERED 100% 7% 41% 16% 0% 0% 0% 36% key finding 3/4th Length Ankle Length Calf Length Full Length fig.6.3.5 In length customer demand is more in angle length, calf length, 3/4 th length but there is no offering from the pepe jeans in all of these. There is offering from all the others brands in each length options so pepe also need to increase some offering in each length category. 37
6.4 WAIST Waist wise comparison is done among competitor brands with low rise, high rise and medium rise option. 6.4.1Vero Moda waist CUSTOMER PREFERED VEROMODA OFFERED 70% 31% 10% 25% 20% 44% High rise Low rise medium rise fig.6.4.1 6.4.2Only waist CUSTOMER PREFERED ONLY OFFERED 44% 48% 31% 20% 25% 32% High rise Low rise medium rise fig.6.4.2 38
6.4.3 Levis waist CUSTOMER PREFERED LEVI'S OFFERED 65% 31% 20% 25% 15% 44% 6.4.4 Tommy Hilfiger High rise Low rise medium rise fig.6.4.3 waist CUSTOMER PREFERED TOMMY HILFIGER OFFERED 90% 31% 10% 25% 0% 44% High rise Low rise medium rise fig.6.4.4 6.4.5Pepe jeans waist for pepe CUSTOMER PREFERED 31% 25% 25% 25% PEPE OFFERED 44% 50% High rise Low rise medium rise fig.6.4.5 39
Key finding In high rise customer demand is more whereas pepe jeans offer less. In low rise pepe jeans offering are meet by the customer demands. In medium rise pepe jeans offer more but customer demand is less. 6.5 Material material wise comparison is done among competitor brands with stretchable and non-stretchable option 6.5.1 Vero Moda material CUSTOMER PREFERED VEROMODA OFFERED 73% 78% 27% 22% Non - Stretchable fig.6.5.1 Stretchable 6.5.2 Only material CUSTOMER PREFERED ONLY OFFERED 73% 72% 27% 28% Non - Stretchable Stretchable fig.6.5.2 40
6.5.3 Levis material CUSTOMER PREFERED LEVI'S OFFERED 73% 80% 27% 20% Non - Stretchable 6.5.4 Tommy Hilfiger fig.6.5.3 material Stretchable CUSTOMER PREFERED TOMMY HILFIGER OFFERED 73% 60% 27% 40% Non - Stretchable fig.6.5.4 Stretchable 6.5.5 Pepe Jeans material 27% CUSTOMER PREFERED 31% PEPE OFFERED 73% 69% Non - Stretchable fig.6.5.5 Stretchable 41
Key finding Demand for the stretchable material is more but pepe jeans provide less of stretchable material as compared to other brands. Demand for the non stretchable material is less but still pepe jeans provide more of non stretchable material to the customer. 7.0 Store wise competition Brands Stores exclusive stores Pepe jeans 180 70 Levis 1500 400 Only 160 10 Vero Moda 450 6 tommy hilfiger 80 10 ucb 791 200 Wrangler 253 6 Table.7.0 Pepe jeans need to add more stores in India to compete with other leading brands like Vero Moda, Only, UCB & LEVIS. Levis is leader in bottom wear specially in bottom wear as because one of the reason is that they have around 2000 stores in India they even present tier ii & tier iii cities so Pepe jean need to focus on to open stores more in tier ii cities by this way they can come more close customers. Pepe jeans don t have exclusive stores for women while other brands like UCB, Tommy Hilfiger have so Pepe jeans need to open exclusive stores specially for women so to boost up the sales for women wear. Pepe jeans also needs to add more accessories like bags, belts & footwear many more other accessories to attract more female customers to showrooms. 42
8.0 Perceptual mapping fig.8.0 Key Finding Pepe jeans is only present in high price range with only limited styles for jeans in women s wear jeans Pepe jeans need to add some styles of jeans in women wear category with low price range to compete with brands like Vero Moda, Only Pepe jeans also need to add more range in high price so that customer can have more options to choose. 43
9.0 SWOT ANALYSIS: Strengths: Over 300 stores in 5 continents around the world. International Brand legacy. Part of the top four denim Jeans brands in India which include Levi s, Wrangler and Diesel The brand has always been constantly producing unique denims jeans, which the brand is very famous. Introduction of Pepe Jeans custom studio which allows the customers to customize their denims International celebrity brand ambassadors gave recognition among its consumers. Demands for rugged & ripped is full-filled by the pepe jeans offering. Pepe jeans is very strong in solid colour jeans. Weaknesses: Limited collection available for women s wear jeans Very high market competition of jeans with globally recognized denim brands like Vero moda, levis etc. High probabilities of brand substitution specially in jeans Low social media presence and less brand visibility while other brands like levis, Vero Moda and Only have good presence in social media. Limited Store Locations. More Focused on already saturated and highly competitive Tier 1 cities market in India. Limited or no control over mark downs and discounts being offered by the E-retail partners can seriously effect the brands image as Discounted brand among customer which will lead into volume sales overturning the value market for the company. Opportunities: The brand can also start its own website for India, for selling its merchandise specially for jeans as it has emerged as an effective medium for selling. Expanding the product range and give, more trendy options for jeans wear. YOY growth rate of 7% and booming middle class is splurging out more then ever on luxury apparel. Largest share of growing Youth population will ensure continuous growth of the market in the years to Come. Brand Conscious customer are preferring to buy from International Brands over home 44
grown labels. Jeans are becoming a go to product among Indian growing working class women because of the comfort and ready to wear options that it offers. Threats: Competitor brands having better options in jeans for women. Women only brands are aggressive roadblock to growth in the category. Highly competitive price points in the denim jeans market. With the growth in industry, new entrants seen in the market specially for the jeans. Increase in the number of online stores and brands selling similar products. Local Competitors with in-house labels like Aditya Birla Fashion and consolidated Retail network pose a direct thereat to the Pepe positioning to the customer. Jeans Exclusive nature of the brand limited its market to niche of Customer looking for jeans and as Omni channel Retail becomes more prevalent its becoming progressively difficult to compete when you re selling only once category of product in such a diverse market as India. 10. 0 SUGGESTION 1. Pepe jeans needs to increase the the styles of every product in every price range so to compete with other leading brands like Vero Moda, Only, Levis & UCB. 2. There are many problems (deviations in measurement) in fitting of the women wear products which lead to the lesser product appreciation and acceptance by the customers. 3. There is need to balance out the ratio between top wear & bottom wear in women wear categories in Pepe jeans so to evenly distribute the product according to the demands & needs of the customers. 4. Pepe jeans also need to open more stores so to compete with other brands like Levis which has more than 1500 stores in India, & Vero Moda which has more than 300 stores. 5. Pepe jeans also needs to introduce new styles in low range to compete with brands like Vero Moda & Only these brands have many styles in low price range & they also needs to increase the styles in premium price range to compete with brands like tommy Hilfiger. 6. Pepe jeans needs to work on their promotional strategies and increase their visibility like other competitive brand. They should be active on social media, which is the biggest source of communication today. 45
11.0 Conclusion It was observed that there is growing market and Customer demand in Distressed, Printed & Patch jeans categories and absence of the Styles and limited exploitation of this market is hindering sales figures and brand s ability to appease its customers. Tapered fit is emerging as the product of choice among women customer and stands at almost 9% in Customer Demand, Pepe Jeans Had chose not to offer any product is this category which is accounting of loosing sales and obsolete designs and fits adding to unsold dead stock at the store end Customer of today going out to buy the jeans are now looking for a diverse variety of the lengths among product and too much focus on regular length product and lesser or no offering in certain leg lengths imposes a limit to what a customer is exposed to at the store and with competitor aggressively pushing into the styles lengths segmented into: 3/4 th lengths, Calf lengths and ankle length. In high rise customer demand is more whereas pepe jeans offers very less and In medium rise pepe jeans offer more but customer demand is less. Demand for the stretchable material is more but pepe jeans provide less of stretchable material as compared to other brands. Demand for the non stretchable material is less but still pepe jeans provide more of non stretchable material to the customer. Pepe Jeans also needs to work on their promotional strategies to increase the brand visibility. Apart from the discrepancies, the quality of Pepe Jeans products is accepted and liked by consumers. 46
12.0 Bibliography: Anon, (2017). [online] Available at: http://agoa.info/news/article/5537-the-globalmarket-for-denim-challenges-andopportunities.html (accessed on 2/3/16) [Accessed 30 Apr. 2017]. Anon, (2017). [online] Available at: http://archive.financialexpr ess.com/news/indian-denim-industry-it-s-all-in-thejeans/1249449 [Accessed 30 Apr. 2017]. Anon, (2017). [online] Available at: http://www.makeinindia.com/sector/textilesand-garments [Accessed 30 Mar. 2017]. Anon, (2017). [online] Available at: http://www.researchandmarkets.com/research/5lwr8x/indian_denim [Accessed 30 Jan. 2017]. Anon, (2017). [online] Available at: http://retail.economictimes.indiatimes.com/news/apparel- fashion/apparel/studyfinds- factors-that-have-changed- consumer-buying-behaviour-in- india/29976787 [Accessed 30 Apr. 2017]. 47
13.0 Annexures Questionnaire answer sheet 48
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