HyperCITY internship Project June 2015
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Transcript of HyperCITY internship Project June 2015
Internship project ReportMarket Research for Buying and Merchandising – Fashion Category
Merchandise Development Plan- Accessory category
HyperCITY Retail India Ltd. By: Anagha Tambe
HyperCITY Big store. Big savings
• India’s 1st retail store where everything is under one roof. • An international shopping experience, where customers can
shop in comfort in a large, modern & exciting environment. • widest range of products sourced from around the world• Location- Mumbai, Bangalore, Hydrabad, Jaipur , Amritsar
and Pune
Vision and Mission
“To be an integral part of customer lives, by offering them high quality shopping experience through great products at ever better prices.”
Categories
Food & Grocery
Health & BeautyFashion Electroni
cs Sports
Home & FurnishingToys
Shops in ShopsServices provided by Hypercity
Spa & saloon- Orchid Thai spa and
EnrichTravelex-
foreign exchange and money transfer
Restaurants & café-
Subway, Bistro, Café Coffee Day, Swirls, Gelato, Fisheteria,
Living Liquidz & Fresh Basket bakery
Crossword Mahindra & Mahindra
Vodafone gallery
ATM Pressto Kodak Picture studio
Travelguru Furtados
Project IMarket Research Report
Buying and MerchandisingFashion Category
Mind mappingA net loss of Rs 88 crore
in FY12
scaling down low-margin categories- electronics
focus on high-margin ones – apparel
Growth of Non-food category
double the apparel penetration
Increase apparel contribution
Research- Fashion,
ToysSports
Stationery
Objective• Provide inputs to enable managers to take decision
about penetration of new brands or private labels in the market.
• Finding out the areas where HyperCITY is not doing well (Reason and solutions)• Study of brand image
• Study of competitor’s offerings in terms of merchandise, services, store experience, display
• Study of consumer behaviour
Research MethodologySAMPLING METHOD Sample selection Method- Probability- random Sample Size- 100 customers
DATA COLLECTION METHOD Secondary Data Collection• Internet• Observation Primary Data Collection• Survey Questionnaire• General Conversation
65% of the total sample is working population
47% of population who prefer other stores for shopping, prefer shopping malls, brand’s outlet or departmental stores
17%
29%48%
6%Occupation
BusinessHWService67%
33%
Gender
Female Male
53%47%
Shopping preference
HypercityOther
DEMOGRAPHICS AND PREFERENCE
59%15%
22%
4%
Frequency of visit
Once in a weekOnce in a monthOnce in 3 months2-3 times a monthRarely
Maximum population visit store once in a month
No customer visit store weekly because the store is not located near their residence
TYPES OF CLOTHES CUSTOMERS PREFER BUYING
Casuals40%
Formals52%
Party-wear8%
Shopping Pref-erence
Customers prefer shopping formal wear
52% customers prefer shopping Formal wear
40% customers prefer Casuals andOnly 8% prefer Party wear
As per the graph, women prefer Casuals and Formals.
Men prefer buying Formals
As customers visit store at leastOnce in a month, they preferBuying Casuals and formals.
As per the graph, launching Women’s formal wear will be beneficial
There is good scope for Men’s formal wear also.
Party wear has less demand
PREFERENCE OF BUYING DIFFERENT TYPES OF APPARELS
46%42%
12%Women
CasualsFormalsParty-wear
27%
73%
Men
CasualsFormalsParty-wear
46%
38%
16%
Are you satisfied with the variety of apparels offered by
us?
Satisfied Quite satisfiedNot satisfied
57%
43%
Are you satisfied with the brands available in Hy-
percity?
Satisfied Not satisfied
Brand and variety satisfaction
Price13%
Quality3%
Product range47%
Other37%
13% customers think price can be the reason for not buying apparels from HyperCITY.
3% say its quality
47% people say Product range can be the reason for people not buying apparels from HyperCITY.
As people are satisfied with HyperCITYThey don’t find any reason for not buying from HyperCITY. These people come under others category
Some people have problem with size in some brands (other category)
REASON FOR NOT BUYING APPARELS FROM HYPERCITY
Ranks given for HyperCITY Fashion category
Quality Pri
ceBra
nds
Store
envt
Offers
Servi
ce
shopp
ing ex
pTre
nd0
20
40
60
80
100
120
76 75
42
92 97
74
95
64
24 25
58
8 3
26
5
36
Good Poor
Hypercity74%
Max23%
More3%
Quality
Hypercity38%
Reliance Trend18%
Star Bazar
6%
FBB6%
Max29%
More3%
Price
Comparative Analysis
HyperCITY is better than others in case of Quality
In pricing also it got highest ranking as there is 365 days sale
Hypercity31%
Reliance Trend34%
Max34%
Brands
Hypercity67%
Re-liance Trend15%
Star Bazar
5%
Max10%
More3%
Store environment
Comparative Analysis
Customers are satisfied with the brands offered by Reliance Trend followed by MaxHyperCITY provide international shopping experience
Hypercity100%
OffersHy-
percity
42%
Reliance Trend25%
Star Bazar
6%
Max28%
Service
Comparative Analysis
•No other store gives such offers•Customer Service Desk staff is approachable and always solve queries and problems of customers.
Hypercity52%
Reliance Trend17%
Star Bazar3%
FBB3%
Max22%
More2%
Shopping experience
Hypercity48%
Reliance Trend18%
Max30%
More3%
Trend
Comparative Analysis
PRACTICES FOLLOWED IN
INTERNATIONAL SUPERMARKETTesco Case study
TESCO NON-FOOD CASE
• For the fiscal year ended February 2007, Tesco UK announced non-food sales of £7.6 billion, an increase of 11.6% on the previous year, growth which was significantly faster than its core food sales.
• Non-food sales, excluding petrol, accounted for 25% of Tesco’s sales and was growing as a proportion of total sales yearly.
• According to Verdict Research, Tesco’s market share in clothing has increased from 1.1% in 1999, to 2.3% in 2005.
• For the fiscal year ended February 2007, the company achieved 16% sales growth through its clothing, and according to Verdict Research, clothing now accounts for 3% of Tesco’s sales.
Source: Tesco annual reports; various press articles; Coriolis analysis
PRIVATE LABEL ARCHITECTURE
Super Premium category
National brand level
Low-Value added
Suggestions related to Product Range
• Including brand like Park avenue
• People can be an option under Rs. 1000• Another option can be offering variety of styles in existing brands.• E.g., wide variety of checks, lines, color options
• Wide range in polo-t-shirts
• Good but limited collection of traditional wear
• Cotton kurtas for festival season
Men’s Wear
People Collection
Women’s wear
Introducing brands like Woffice wear kurtis and tunics/blouses
Introducing private label for formal wear with limited collection
Product range- shirts, blouses, tunics, trousersPrice range- 700- 1500Promoting women’s formal wear brand to aware customersAttractive display and VM (entire look)
Pantaloons- AnnabelOffice wear Apparels & footwear
CONSOLIDATED SUGGESTIONS
• Introducing brands and variety in value clothing as well as premium clothing.
• Launching private label of women’s formal wear brand
• Better lighting condition to create better ambience.
Forever 21 store
Project IIMerchandise Development Plan
Accessory category
Problems in Jewellery category• Poor quality• High price range• Color fades away• Silver gets dark in 2 days of display• Not enough fixtures for display• No hard or soft tag on products• Poor lighting condition• It is necessary to keep assistant to avoid shop lifting• No display guidance• Less space and more stock
Merchandise offered by other stores in the market
COMPARISON OF QUALITY AND PRICE
Forever 21 HyperCITY
SUGGESTIONS FOR PRODUCT RANGE
Price range for junk jewelleryStuds- 200-500Necklace- 500-900Bracelets- 400-700Finger ring- 200-500
SUGGESTIONS FOR DISPLAYFree standing pegboard
Maximum Merchandise on display
Consumes less space
Well planned assortment
Wall-mounted display
Display of bags or jewellery on wall fixtures
Visible from distance
Best for structured bagsNeeds proper lighting conditionWhite background
Perfect if same types of bags are avilableMaximum space utilization
SUGGESTIONS FOR DISPLAY
Price range- 200- 1200
•Embellishments used•Quality of metal•Finishing•Colors•Spacious
HANDBAGS
•Though totes are in trend, it is offered by Luxury and premium brands•Other brands offer bags with closed tops
SUGGESTION OF LAYOUT PLAN
Layout of Wallmart
SUGGESTION ABOUT DISPLAY PLANOutsourcing Retail
Solution• Small area designed
based on theme• Theme based fixtures,
colors• Hiring a designer-
Implementing better plan
Modification in existing display
• Modification keeping in mind customer’s flow in the store
• New fixtures with lighting
• Cost effective
Cosmetics
Jewellery
Hand
bags
CSD
Cash
Cou
nter
s MALAD STORE LAYOUT-EXISTINGJe
welle
ry
Cosmetics
CSD
Cash
Cou
nter
s
Jewellery
Jewellery
MALAD STORE LAYOUT- PROPOSED
High traffic area
Disp
lay
wal
l for
jew
elle
ryD
isplay wall for handbags
Rotating Display
Rotating Display
Rotating Display
Rotating Display
Rotating Display
Rotating Display
Rotating Display
Hot products
display desk
Display desk for jewellery
MALAD STORE LAYOUT- ACCESSORY SECTION
View From Customer Service Desk
View From Apparel category
VIVIANA MALL STORE LAYOUT
Jewellery section
Entrance
SUGGESTIONS• Price range for jewellery should be 200 Rs. To
1000 Rs.• As per the survey, Party wear doesn’t have
demand so party wear jewelley might have less demand, unless offered at affordable price point
• Regular wear jewellery has demand• improve quality and style• Better incentives for sales executives• Guidance for display and stock replenishment
Strategic Implementation of suggestions
• Planning to remove Gitanjali brand• Display tips are implemented• Working on the quality of jewellery• Removing existing stock of handbags and launching
private label• Making changes in pricing strategy
Conclusion• Customers are not brand conscious while purchasing
handbags.• Though handbags and jewellery are located in high
traffic area it is not selling good.• Highlighted display and store design can attract more
customers.• Selling high priced jewellery is challenge as customers
prefer buying imitation jewellery at lower price rather than pure silver, brass jewellery.
• Launching private labels for jewellery and handbags can be a good option for selling merchandise at lower price.
Thank You