Arvind lifestyle brands limited: From concept to shelf.

Abstract

This report introduces the readers to the activities and operations in the retail industry through the example of Arvind Brands Ltd. The apparel industry encompasses design, manufacture, marketing, sales and distribution and Retailing of clothing and accessories like footwear. Market Size of apparel and footwear is USD 1659 billion (Exhibit of individual components). Apparel industry comprises of a wide range of products at a broad range of prices, ranging from basic garments to fashion, to super premium luxury dressing catering to a broad range of consumers, right from cost-conscious to trendy and quality-conscious. Technology is not far-behind in getting a foothold in the apparel industry with innovative products like biometric smart shirts by Ralph Lauren, to phone-charging pants formed by collaboration of designer Adrien Sauvage and Tech-company Microsoft, to reactive and anti-injury clothing for sports.1 As such most of the well-known companies in the industry have a variety of product lines. Therefore, competition in the apparel industry is intense and from a variety of competitors, like brands like Nike dominating sportswear category while Zara leading in fashion. Even the major players have single digit market share. Distribution capability, other than design, becomes a major factor contributing to success. Therefore, the industry has also seen a flux of mass retailers like Walmart globally, and Big Bazar in India, entering this category through basic essential garments segment which enjoy a cost advantage owing to their large size. Even though apparel is a functional product with a stable demand, supply chain needs to be responsive to cater to uncertainty owing to seasonality and fashion. As a result, the operational strategies in apparel industry are influenced by a myriad of factors including nature of product, seasonality, fashion, cost of manufacturing, brand premium commanded by the company, while taking care of manufacturing cost and time, and replenishment lead times. There are fully vertically integrated brands like Benetton, Zara to fully outsourced like Levis. It’s a highly fragmented market owing to the scale of the industry. It is defined, shaped and localized by the geography.