SUMMER TRAINING PROJECT REPORT

On

“A Study On Customer Buying Behaviour At Pantaloons ”

Toward partial fulfilment of

Master of business administration (MBA)

(Affiliated To DR.A.P.J. Abdul Kalam Technical University,Lucknow)

Company Guide Faculty Guide:

MR RAM SANKAR Ms. PRIYANKA SINGH

Submitted by:

LALIT KUMAR SHARMA

Roll no. 1705470054

Session 2017-2019

Department Of Management

Babu Banarasi Das

National Institute Of Technology And Management

Sectori, Dr. Akhilesh Das Nagar ,Faizabad Road, Lucknow(U.P) India

 PREFACE
This project report throws light on the reasons behind customer’s decision of

choosing Pantaloon for purchase of Apparels and various other products from

Pantaloon. Pantaloon is one of the emerging players in the Indian retail industry and

offers a deep insight into the industry.

For completion of this report at Pantaloons store i.e. in Exhibition Road Patna for

conducting survey and fulfillment of questionnaires. A sample size of 50 was selected

due to limitation of time.

Among those who were interviewed consist of housewives, professionals, and even

college going students. Though the sample size considered was small but it was so

varied in order to overcome all the odds. Random stratified sampling method was

considered to be best suited to fulfill the project hypothesis. A structured

questionnaire was constructed in order to measure the responses of respondents.

Primary data collection was done through questionnaire and interviews and Secondary

data collection through company websites and various previous research reports.

Through survey effect of various factors like ambience of store, low prices and

convenience came in light and the reason of people choosing Pantaloon over other

retail outlets became clear. Respondents gave many suggestions for Pantaloon like

they should have more Staff especially during Sales, more Sitting area, more variety,

etc
 ACKNOWLEDGEMENT

I would like to place on record my deep sense of gratitude to Ms. PRIYANKA

SINGH Dept. OF MASTER OF BUSINESS ADMINISTRATION of BABU

BANARASI DAS NATIONAL INSTITUTE OF TECHNOLOGY AND

MANAGEMENT, LUCKNOW for her generous guidance, help and useful

suggestions.

I express my sincere gratitude to DR GAURAV PANDEY, HOD in Department of

management, BABU BANARASI DAS NATIONAL INSTITUTE OF

TECHNOLOGY AND MANAGEMENT, LUCKNOW, for his stimulating guidance,

continuous encouragement and supervision throughout the course of present work.

I also wish to extend my thanks to DR GAURAV PANDEY for their insightful

comments and constructive suggestion to improve the quality of this research work.

I am extremely thankful to Director BABU BANARASI DAS NATIONAL

INSTITUTE OF TECHNOLOGY AND MANAGEMENT,LUCKNOW for providing

me infrastructural facilities to work in, without which this work not have been

possible.

LALIT KUMAR SHARMA (1705470035)

 DECLARATION

I hereby declare that the work which is being presented in research report entitled “A

Study On Customer Buying Behaviour At Pantaloons” by LALIT KUMAR

SHARMA , in partial fulfilment of requirement for the award of degree of MASTER

OF BUSINESS ADMINISTRATION from BABU BANARASI DAS NATIONAL

INSTITUTE OF TECHNOLOGY AND MANAGEMENT affiliated to DR.A.P.J.

ABDUL KALAM TECHNICAL UNIVERSITY LUCKNOW, INDIA is an authentic

record of my own work carried out under the guidance of Ms.PRIYANKA SINGH.

Signature of the student

This is to certify that the above statement made by the candidate is correct to the best

of my knowledge

Signature of faculty guide

Signature of External Examiner

Signature of H.O.D
TABLE OF CONTENT

CERTIFICATE FROM GUIDE

CERTIFIATE FROM THE DEPARTMENT

PREFACE

ACKNOWLEDGEMENT

DECLARATION

TABLE OF CONTENT

LIST OF FIGURES

REVIEW PAGE NO

CHAPTER 1

1.1 INTRODUCTION…………………………………………………….11-12

1.2 BACKGROUND……………………………………………………..12-13

1.3 RETAIL SCENE IN INDIA………………………………………….13-18

1.4 ONLINE RETAAIL…………………………………………………..18-26

CHAPTER 2

2.1 INTRODUCTION TO PANTALOON……………………………….28-29

2.2 INTRODUCTION TO ADHITYA BIRKA………………………….29-35

2.3 ADHITRA BIRLA FAISION AND RETAIL LIMITED……………35-39

2.4 PANTALOON GREEN CARD…….……………………………….40-42

2.5 PANTALOON BRAND……………………………………………..42-48

2.6 MISSION AND VISION…………………………………………….49

2.7 BOARD OF DIRECTORS…………………………………………..49

CHAPTER 3

3.1 SWOT ANALYSIS………………………………………………..….51-53

CHAPTER 4

4.1 SCOPE OF STUDY……………………………………….…………….55

4.2 NEED OF STUDY.......................................................................55

4.3 OBJECTIVE …………………………………………………………….56

CHAPTER 5

5.1INTRODUCTION TO RESEARCH METHODOLOGY………………..58-60

5.2 RESEARCH METHODOLOGY…………………………………………60-62

5.3 LIMITATION………………………………………………………….....62

CHAPTER 6
6.1 DATA ANALYSIS AND NTERPRETATION……………………………64-72

CHAPTER 7

7.1 FINDING………………………………………………………………..…74-75

7.2 SUGGESTION…………………………………………………………….76

7.3 CONCLUSION……………………………………………………………77

CHAPTER 8

8.1 APPENDIX………………………………………………………………..79-81

8.2 BIBLIOGRAPHY………………………………………………………….82
CHAPTER 1
1.1 INTRODUCTION

Accounting for around 14-15 percent of Gross Domestic Product (GDP), the Indian

retail industry is estimated to be worth around US$ 500 Billion currently. Home to

one of the top five retail markets in the world, India offers immense scope of growth

and opportunities in this area. As of now, almost 90 percent of the Indian retail sector

is controlled by tiny family-run shops i.e., the unorganized segment. Thus, organized

retailers have a lot of room for further penetration in this flourishing economy. In

2010, larger format convenience stores and supermarkets accounted for about 4

percent of the industry, and these were present only in large urban centres. Now the

trend is changing, and such concepts are mushrooming in smaller cities and towns as

well. Organized retail segment is expanding at 20 percent a year, driven by the

emergence of shopping centres and malls and growing middle class.

RETAIL MEANING

Retail comes from the French word retailer which refers to “cutting off, clip and

divide” in terms of tailoring (1365). It was first recorded as a noun with the meaning

of a “sale in small quantities” in 1433 (French). Its literal meaning for retail was to

“cut off, shred, pairing”.

Business of selling products and services to the public as the ultimate consumer.

Retailing involves selling many different products and services, either from a store

location or in direct selling through vending machines and in-home presentations.

First retailers in India include BATA, Pantaloons, Bombay dyeing, Spencer’s The

case highlights the emergence and evolution of PRIL from a small garment

manufacturer to the retailer in India by the early 21st century. It examines the

evolution and growth of PRIL until the mid 1990s, and then traces the rationale
behind the launch of its first retail format Pantaloons, a family departmental store. It

discusses in detail the marketing and promotional efforts undertaken by PRIL for

Pantaloons, which made the store one of the most successful lifestyle stores in India

in the early 2000s. The case then examines the reasons for PRIL’s entry into discount

store and food store businesses through Big Bazaars and Food Bazaars and discusses

in detail the strategies and marketing efforts put in place by PRIL to promote these

formats. Recent trends in the Indian retailing industry, changing requirements and

preferences of consumers, understanding changing consumer lifestyles.

1.2 BACKGROUND

The organized retail industry in India did not evolve till the early 1990s. Until then,

the industry was dominated by the unorganized sector. It was a sellers’ market, with a

limited number of brands, and little choice available to customers. Lack of trained

manpower, tax laws and government regulations all discouraged the growth of

organized retailing in India during that period. Lack of consumer awareness and

restrictions over entry of foreign players into the sector also contributed to the delay

in the growth of organized retailing. This allowed the unorganized sector to rule the

Indian retailing industry. It was during this time that the foundation of PRIL was laid

by Biyani. Biyani was a commerce graduate with a past-graduate diploma in

marketing. After spending five years in managing his family business of trading

textile and yarn, he started with apparel manufacturing in the mid-1980s. Is Kishor

Biyani a retailer or a fund manager? That question might well be asked of him in the

not too distant future. Over the last few months, Future Capital Holdings (FCH), led

by CEO Sameer Sain, has stitched together a fully integrated financial services

business model.
Management business in India with almost $830 million in assets. Now, it has big

plans in insurance, retail lending and forex services. “ Whether we have a consumer

who wants to leverage future income to realize his aspirations today or wants to save

and invest or buy protection for his family, we want to be a part of it “ , says Sain.

He believes that in 5-7 years, FCH’s bottom line will be bigger than the retail

business. In the Insurance business, the Future group has managed to wrest a 74

percent stake in a joint venture by investing just rupees 100 crore. “ Italian

Assicurazioni Generali, ranked 21 on the Fortune 500 list, is a good fit for us because

they derive almost 17 percent of their sales from mall assurance. They have also

partnered another retailer in the Phillipines “ , says Saini. Biyani estimates that with

just a 1 percent footfall conversion rate, the insurance business would have over 2

million customers. That would earn him huge fees on distribution and catapult the

company to amongst the largest private insurance players by way of number of

policies sold. Despite the global economic recession and a consequent slowdown in

the Indian economy, organized retail continued to make headway although at a slower

pace in 2009. Nonetheless, if the current retail landscape is compared with that of

2004, it has undeniably become a much larger environment. Retail stalwarts such as

Wal-Mart, Tesco and Marks & Spencer have already made inroads into the Indian

retail industry and with multi billion dollar investments.

1.3 RETAIL SCENE IN INDIA

Million sq. fts in available mall space by the end of 2007. Food and Grocery retail

holds the most potential, as almost 99% of it is unorganized. The omnibus edition of

pantaloons retail papers spans this very happening sector, which not only brings so

much joy to the inveterate shoppers in terms of retail therapy, but also employment
and livelihood to tens of thousands of Indians. India’s GDP growth rate is a healthy

9% for 2005-06 – and this had its ripple effect on all industries – more so the retail

sector, of which only 3% organized now. The Indian retail industry accounts for 10%

of GDP and 8% of employment. India is being touted as the next big retail destination

with an average three year compounded annual growth rate of 46.64%. The Indian

economy is poised to take the third position in the world in terms of Purchasing

Power Parity by the year 2010. The Indian retail market is a rupees 1,200,000 million

market as per the Images India Retail Report 2007. Organized retail market is

zooming ahead with an annual growth rate of 30%. The retail sector is vibrant with

growth happening in all related areas – be they malls, hypermarkets or single brand

luxury stores, they have dotted the commercial landscape of the metros and have been

percolated to the Tier II and Tier III cities. Malls are fast becoming sought-after

entertainment hotspots. From a situation where there were no malls about a decade

ago, the country will have over 300 malls translating to over 100 number of big

players is entering the field of organized food retail like Reliance, Aditya Birla Group

and the Bharti Group, which has tied up with the world’s largest retailer- Wal-Mart.

All these major players are expected to show aan annual growth rate of 25-30%.

The retail boom has also led to the opening of a large number of single brand outlets

across the country. With big brands and bigger outlets across all segments, from

Apparel and Footwear, Watches, Books and Stationary to Jewellery and Consumer

durables, the sweep is indeed broad in to sample the depth and breadth of this

amazing sector.
Types of Retail verticals operating in India are :

 Food and Beverage

 Health and Beauty

 Clothing and Footwear

 Home Furniture and Household Goods

 Consumer Durable Goods

 Leisure and Personal Goods

 Economic slowdown serves as reality check for retailers

The global economic crisis and its impact on India resulted in a slowdown of the

Indian economy in 2009. This caused consumers to tighten their purses, and the

availability of financial support for retail expansion ddried up. This put a halt to the

unprecedented expansion seen over the review period. Lower consumer confidence

resulting from the recession, as well as job losses, resulted in fewer visits to retail

stores, and consequently sales plummeted for major retailers. With consumers

becoming highly discretionary, spending on non-essential items such as lifestyle

goods was highly impacted, making it one of the worst performing categories.

Retailers with financial backing weather the storm

Credit from banks and other lenders has been difficult to obtain in the current

environment, and retailers have suffered severely as a result. Some retailers are unable

to pay rental fees because all lines of credit have dried up. In such a tough operating

environment, retailers under the umbrella of a diversified holding company wwith

access to internal funds are faring better than other players. For example, Reliance

Retail and Aditya Birla Retail emerged relatively unscathed compared with smaller

players such as Subhiksha and Vishal Retail.

Internet retailing grows at phenomenal pace

Due to the increased penetration of the credit cards and availability of computing

facilities to a wider population, internet retailing is witnessing stellar growth. Internet

retailers offer products at discounted prices to consumers compared with store-based

retailers and bargain-hunting consumers are latching on to this fact. This has become

even more pronounced in light of the economic downturn as consumers have become

increasingly sensitive to price.

India’s attractiveness stands over long term

India’s burgeoning middle class offers considerable promise for organized retailing,

which is expected to remain attractive to organized retailers over the long term.

Liberalization and financial reforms would remain a key factor in the expansion of the

organized retail environment. The Government of India has introduced reforms to

attract Foreign Direct Investment (FDI) in retail industry. The government has

approved 51 per cent FDI in multi-brand retail and increased FDI limit to 100 per cent

(from 51 per cent) in single brand retail, and plans to allow 100 per cent FDI in e-

commerce, under the arrangement that the products sold must be manufactured in

India to gain from the liberalised regime.

Impact of Recession on the Indian Retail Market

The retail market in India is facing slowdown with the ongoing financial crisis

happening across the world markets. Since the markets always have internally linked

with each other, the impact of the crisis is generally shared among all. The following

circumstances are creating unwelcome interruptions to the Indian retail industry. The

industry hopes for the best alternations to overcome the acrimonious situations.

Markets in recession worldwide and India too: The meltdown in the world markets
has shaken the globe. Not even a single country seems to be off the hook. The high

level of inflation has been a wet blanket for the global markets. The roots of the world

markets are nearly pulled away with the heavy downfall of the American financial

giants. Amongst many countries, India too not exempted from the impact of world

financial crisis. All this is leading to a temporary recess for the markets from a regular

busy schedule.

However these fluctuations are not new for global market. For the decades long,

markets across the world, have been witnessing such ups and downs. But the

ultimately fact is that the market growth rate is always constantly high when

comparing to such downfalls economic slowdown. The financial crisis is adding to

the pressure on global economies. The International Monetary Fund (IMF) now sees

the world entering a major slowdown.

Market Size

 The Indian retail industry has expanded by 10.6 per cent between 2010 and

2012. The Indian retail industry is one of the fastest growing in the world.

Retail industry in India is expected to grow to US$ 1.3 trillion by 2020,

registering a Compound Annual Growth Rate (CAGR) of 16.7 per cent over

2015-20.

 India is the fifth largest preferred retail destination globally. The country is

among the highest in the world in terms of per capita retail store availability.

India’s retail sector is experiencing exponential growth, with retail

development taking place not just in major cities and metros, but also in Tier-

II and Tier-III cities. Healthy economic growth, changing demographic

profile, increasing disposable incomes, urbanisation, changing consumer tastes

 and preferences are the other factors driving growth in the organised retail

market in India.

 India’s population is taking to online retail in a big way. The online retail

market is expected to grow from US$ 6 billion to US$ 70 billion during FY15-

FY20. Increasing participation from foreign and private players has given a

boost to Indian retail industry. India’s price competitiveness attracts large

retail players to use it as a sourcing base. Global retailers such as Walmart,

GAP, Tesco and JC Penney are increasing their sourcing from India and are

moving from third-party buying offices to establishing their own wholly-

owned/wholly-managed sourcing and buying offices.

 The Government of India has introduced reforms to attract Foreign Direct

Investment (FDI) in retail industry. The government has approved 51 per cent

FDI in multi-brand retail and increased FDI limit to 100 per cent (from 51 per

cent) in single brand retail, and plans to allow 100 per cent FDI in e-

commerce, under the arrangement that the products sold must be

manufactured in India to gain from the liberalised regime.

1.4 ONLINE RETAIL

Indian consumers are demonstrating an increasing interest in online shopping, thanks

to the surging number of online users. The growing online retail market has become a

very lucrative business for international majors as well.

For instance, internet giant amazon, which has dedicated to the biggest markets until

now, has commenced an India-Centric website in June 2013. The number of Internet

users in India is expected to reach 450-465 million by June, up 4-8% from 432 million

in December 2016, a report from the Internet and Mobile Association of India and
market research firm IMRB International said. The report added its forecast does not

factor in the impact of demonetisation, which gave a boost to digital and mobile

transactions.

The report said overall Internet penetration in India is currently around 31%. “Urban

India with an estimated population of 444 million already has 269 million (60%)

using the Internet. Rural India, with an estimated population of 906 million as per

2011 census, has only 163 million (17%) Internet users. Thus, there are potential

approximately 750 million users still in rural India who are yet to become Internet

users; if only they can be reached out properly.”

The report points out that 77% of urban users and 92% of rural users consider mobile

as the primary device for accessing the Internet, largely driven by availability and

affordability of smartphones. In urban India, the Internet user base grew by 7% to 263

million for year-on-year period ended October 2016, which is expected to be 275-285

million by June 2017. For the same annual period ending October 2016, rural India’s

Internet user base grew by 22% between to 157 million and is forecast to reach 170-

180 million by June 2017.

The number of consumers who purchase online is expected to cross 100 million by

2017 end with e-retail market likely jumping 65% on year in 2018, an

ASSOCHAMResurgent India study said. "The year 2017 will see large scale growth

in the Indian ecommerce sector with increased participation from people across the

country. This industry will continue to drive more employment opportunities and

contribute towards creating more entrepreneurs through the e-commerce marketplace

model,” the report said. The B2C e-commerce market in India has exhibited rapid

growth and has attracted large investments from the PE/VC community. With positive
fillips from the demand and supply side, this market is likely to reach $60Bn by 2017.

Online retail is the fastest growing channel globally, as confirmed by the Planet

Retail’s retail panel data. The online channel is expected to grow at a much faster rate

vis-a-vis more established channels as is expected to account for 10.1% of overall

retail sales in 2018, up from 6.5% in 2013, and 3.5% in 2008.

The Indian online retail market has had a dream run in recent years when it comes to

transaction value, however significant challenges still remain. These challenges are

expected to drive consolidation in the market. If provided with the right regulatory

enablers and economic conditions playing out favorably, the online market

opportunity could be substantially higher. It remains to be seen as to how the current

establishment views the online retail market opportunity which could be a potential

market discontinuity in the India consumption story.

Retail Industry: Key Developments and Investments

Indian retail sector has high potential to attract foreign investment, with FDI policies

opening up more and more retailers are exploring Indian market which consists of

more than billion people. Even the existing ones are looking to spread their reach.

Foreign investments are important to India as well, as per leading media report India

needs around $1 trillion investment to overhaul its infrastructure such as ports,

airports and highways to boost growth. With the rising need for consumer goods in

different sectors including consumer electronics and home appliances, many

companies have invested in the Indian retail space in the past few months .As per the

India brand equity foundation following are major international retail investment in

India:
 Iconic British toy shop chain Hamleys plans to open six more stores in India,

taking its total store count in the country to 32 by the end of March 2017.

 High-end home-furniture chain Roche Bobois Group has aggressive plans to

solidify its exiting footprint. As per the strategy, the retailer plans to open new

stores in cities like Hyderabad, Chennai, Pune, Kolkata and Ahmedabad, in

order to make India one of its top five markets by 2022.

 Retail stalwart Future Consumer Ltd has signed a joint venture (JV) with

UK’s largest wholesaler, Booker Group, with an investment of Rs 50 crore

(US$ 7.5 million), to set up 60-70 cash-and-carry stores in India in the next 3-

4 years. With this JV Biyani aims to reach Rs 20,000 crore in sales from in-

house brands by 2021 and push these higher margins products outside its own

800-odd stores.

 Adidas India Private Limited plans to open around 30-40 big flagship stores

across metro cities including Delhi, Mumbai and Bengaluru, by 2020.

 Switzerland’s luxury retail brand Bally mulling over to re-enter Indian market

via a joint venture with Reliance Brands Ltd, by opening its first store in New

Delhi in March 2017, and thereafter aiming to expand to four stores in Delhi,

Mumbai, Kolkata and Chennai over the next 3 to 4 years.

 Swedish home furnishing brand Ikea has drawn up a long-term plan for

Indian market. The retailer plans to invest Rs 10,500 crore (US$ 1.56 billion)

to set up 25 stores across India over next few years.

 New York-based designer brand Kate Spade will be marking India entry this

year with Reliance brands. In initial phase of expansion, the retailer will open

two stores in the capital city New Delhi.

  Walmart India plans to add 50 more cash-and-carry stores in India over the

next four to five years.

Government Initiatives Retail sector in India is emerging as one of the largest sectors

in the Indian economy. The total market size was estimated to be around USD 600

billion in 2015, thereby registering a CAGR of 7.45 % since 2000. It is expected to

grow to USD 1.3 trillion by 2020. Historically, retail companies used to focus on

increasing their store footprint for growth. However, in the recent past, they have

moved to a consumer-centric operating model wherein they are focused on

satisfaction of various customer needs and hence, have adopted strategies such as

offering deep discounts, competitive pricing, easy sales return policies, usage of data

analytics, offering value added services, strong supply chain,etc. In order to take the

retail sector forward, the Government has taken several initiatives / steps such as

liberalization of Foreign Direct Investment (‘FDI’) norms [including permitting

Single Brand Retail Trading (‘SBRT’) under e-commerce route, upto 49% FDI in

SBRT under the automatic route, etc.], the ‘Digital India’ movement, etc. The recent

demonetization measures are also likely to help in the retail sector becoming more

organised.

In this backdrop, some of the key budget expectations for the retail sector, from a tax

stand-point, are as follows:

One of the most important factors for the growth of the Indian retail sector is

purchasing power of the consumer. Therefore, the 2017 budget provides the

Government with a perfect platform to widen the tax slabs of individuals, which

would in-turn lead to increased disposable income in the hands of the consumer.
There have been multiple rounds of tax litigation in relation to the computation of

arm’s length price with respect to annual marketing, franchisee fees, advertising and

sales promotion spend, etc. With large MNCs setting up stores in India, these

expenses are only set to increase in the future. Hence, the 2017 budget provides the

Government with an opportunity to lay down appropriate guidelines / provide

clarifications to the taxpayer, so as to dispel uncertainty and reduce litigation.

This sector is expected to generate a large amount of employment opportunities in the

near future. In this regard, the Government, vide the Finance Act, 2016, had taken a

positive step, by extending the scope of deduction under section 80JJAA (ie

additional deduction for new employee salaries), to all companies and not restricting

it to only manufacturing entities, subject to the satisfaction of prescribed conditions.

The Government, vide the 2017 budget, could consider enhancing such tax benefits/

weighted deduction, specifically for the retail sector. From an indirect tax stand-

point, Goods and Service Tax (‘GST’) is a long awaited reform, as it would play an

important role in removing the various artificial trade barriers and would also be a

huge boost to trade in the country. It would also help retailers to enjoy the benefits of

a simplified indirect tax structure and reduce the cascading effect of taxes. Currently,

retailers pay a significant amount of service tax on various expense items such as rent,

maintenance charges, etc, as well as other Central duties like Excise duty on direct

procurement of goods from manufacturers, Additional Customs duties on imports, etc,

which cannot be adjusted with output tax charged on the sale of goods in most cases.
Hence, the input tax credit could be lost. It is expected that under the GST scenario,

there would be seamless flow of credit and thereby, the cost would reduce.

Rationalisation/ reduction in the import duty on identified products could help in

increasing the net margins, thereby providing a boost to traders. In line with the recent

demonetization measures and ‘Digital India’ initiatives, the Government could

consider granting certain tax incentives / benefits, to encourage cashless transactions.

This would also facilitate the shift to organized/ formal retail.

The aforesaid reforms/ incentives, especially GST (which is now expected on 1 July

2017), could provide a real boost to the retail sector. While the past few years have

not seen too many benefits doled out to the retail sector, we can only hope that this

year will see a change in the approach of the Government and that it would take more

cognizance of the potential of this sector.

Road Ahead With Modi’s Government there is a growing mood of expectation as he

dates with many a world leaders to woo foreign investors to our shores. And although

more work is yet to be done, the Government is taking steps to ease the flow of

foreign investment and ownership, which will increase the flow of money into the

retail market and see more foreign brands in India. This will help new retail centres

offer more choice for the avid shopper. India seems to be absorbed by Americas love

for statistics, and yet more growth values continue to flood in, as we are to understand

by 2020 its retail market worth is to double to one trillion USD. It will achieve a

growth of 20 per cent per year and have a GDP of 10 per cent. Yet with all these
statistics the “proof of the pudding” is how we can create sustainable retail

developments that stand the test of time for whatever the financial model of the

developer.

The e-commerce industry is also set to rise from $35 million to $100 million in the

next two years. We see this beginning to happen already as the so called “brick-and-

mortar” companies such as Croma and the Future Group, align with online retailers

such as Amazon and Snapdeal. Exciting times for not only new retail growth but a

change in our shopping experience. The “physical” retail model certainly for the long

term still seems the more popular option, but the future holds a new realm of

experiences and possibilities as we move to a more “virtual” online mode of

consumerism.

The greatest of India’s challenges is in the provision of adequate infrastructure to

cater for such large scale developments. In particular concern are the most densely

populated tier 1 cities such as Mumbai. The city desperately lacks visionary leaders to

“master plan” the city’s hunger for development and demand.

Currently Mumbai’s population sits at 18,000,000 already a burden to its present

infrastructure. By 2025 we will see this number grow close to 27,000,000 inhabitants.

How we deal with this magnanimous implication on both environment and

infrastructure is an issue that can’t wait and needs to be addressed immediately.

The only way we can create sustainable livable environments that ultimately improve

the human condition is to provide “our people,” basic needs for cleanliness, mobility

of travel and opportunity. So be it retail development or any other offer, these

challenges remain issues fundamental to the heart of a prosperous India. Of course the

demands for mixed use retail models will increase and with this the need for adequate
Infrastructure. With these demands, we are continuing to expand our sector work

(asset classes) and are beginning to venture into larger master planning developments;

particularly where there is a large retail driven mixed use component.

Retail developments in India are certain to change in the next 10 years. We will see a

growing demand for virtual stores, a more interactive and digital experience evolving

and with this a change in the nature of the traditional centre. Much has also been

talked about open retail offers as part of mixed use offers where the focus will be

concentrated on the creation of open streets and the creation of great public space.

Indeed we can certainly see some such centres already becoming popular in Gurgaon.

The challenges ahead are many, from the need for better infrastructure, tighter profit

margins in the organised sector (gross margins 7-8 per cent lower compared to

international centres), and an increasingly uncertain global economy. India however

continues to mature and understand the long term needs of effectively managing any

retail centre, with this vision we will see the “organised” retail model change and be a

growing part of our lives and landscape.

CHAPTER 2
2.1 INTRODUCTION TO PANTALOONS

Pantaloons is India’s fastest growing premium lifestyle apparel company. With

innovative designs, concepts and products, the company brings the latest trends in

fashion and clothing styles to the apparel market.

The company offers an incredible and complete one-stop shopping experience to its

buyers through its vast collection of more than 100 prestigious brands for the

discerning fascinates. The 81 aesthetically designed stores spread across the country

display a range of classy and trendy merchandise that truly lives upto pantaloons

maxim of ‘fresh fashion’.

A typical pantaloons store is spread across a sprawling retail space of about 28,000 sq.

ft., comprising a brand portfolio that runs across a wide gamut of styles that spell

class. The collection includes ready-to-wear western and ethnic apparel for men,

women and kids, complemented by an exhaustive range of accessories.

The women’s section houses the private labels- Bare Denim, Bare Leisure, Rig,

Annabelle, Honey and Ajile – in western wear, as well as the choicest ethnic wear

from RangManch, Trishaa and Akkriti. Popular brands like Biba, Aurelia, W(W for

Women), Ira Soleil, Global Desi and Fusion Beats are also available.

The private labels for men in western wear include Rig, Bare Denim, Bare Leisure,

Urban Eagle, SF(San Francisco), Byford, Ajile, Spiritus, Indus Route, Richard Parker,

Alto Moda and JM Sport apart from trendy brands like Turtle, Pepe Jeans London,

Levis, Spykar, UCB(United Colors of Benetton), John Player Jeans, Black Berry,

Theme, Peter England, Van Heusen, Indigo Nation and John Miller. Akkriti provides

a wide selection of ethnic wear.

Kids can choose from private labels like Bare Denim, Bare Leisure, or indulge in

exclusive brands like Chalk, Chirpie pie and Poppers. For the ethnic look, they can

opt for traditional wear from Akkriti.

Pantaloons offer much more than just apparel. Customers can shop from an

assortment of watches from renowned international brands like Tommy Hilfiger,

Espirit, Kenneth Cole, Citizen, Timex and Titan, among other brands.

Trendy sunglasses from Polaroid, Guess, Police, Scott, I Dee and Allen Solly are also

available. The accessories and beauty segments display an attractive collection of

ladies handbags from Lavie, Capresse and Fast Track. Also available are products

from color cosmetic brands such as Bourjois, Chambor, Deborah, Faces, Revlon,

Maybelline and Lakme as well as a wide collection of exotic fragnances.

With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is focused on

growth wwhile continuing to create fresh fashion. Pantaloons is recognized by its

warm personalized service that completes the core proposition of this trendy chain.

2.2 INTRODUCTION TO ADITYA BIRLA

Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4.75 billion conglomerate by revenue size.

It is part of the Aditya Birla Group, a US$ 41 billion Indian multinational. Having a

market cap of US$ 3.5 billion (Rs. 24579 Crore) as on 11th July 2017, ABNL is

present across Financial services, Telecom, Fashion & Lifestyle, IT-ITeS and

manufacturing businesses. Anchored by over 53,750 employees, ABNL touches lives

of more than 125 million Indians. ABNL is also a prominent player in Private Equity,

Wealth Management and Broking & General Insurance Advisory space. Besides its
successful presence across a wide gamut of sectors and verticals, Aditya Birla Nuvo

Ltd (ABNL) now holds a controlling stake in Pantaloons format stores which was

previously controlled by the Future Group.

With this strategic development, both ABNL and Future Group will now work closely

for deriving operational synergies in terms of back-end and supply chain, apart from

several other mission-critical value drivers of the business. Moreover, the leadership

teams of both groups have also committed to oversee a fashion council, which has

been setup to explore contemporary trends in new-age fashion wear, thereby driving

further value-creation for Pantaloons stakeholders by keeping it at the leading edge of

the fashion industry.

2.2.1 THE ADITYA BIRLA GROUP: A PREMIUM GLOBAL

CORPORATION

A US $41 billion (Rs. 2,50,000 crore) corporation, the Aditya Birla Group is in the

League of Fortune 500. Anchored by an extraordinary force of over 120,000

employees, belonging to 42 nationalities. Over 50 per cent of its revenues flow from

its overseas operations spanning 36 countries.

The Aditya Birla Group has been ranked fourth in the world and first in Asia Pacific

in the ‘Top Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune

Magazine and RBL (a strategic HR and leadership Advisory firm). The Group has

topped the Nielsen's Corporate Image Monitor 2014-15 and emerged as the Number

one corporate, the 'Best in Class', for the third consecutive year.

Globally, the Aditya Birla Group is:

  A metals powerhouse, among the world's most cost-efficient aluminium and

copper producers. Hindalco-Novelis is the largest aluminium rolling company.

It is one of the three biggest producers of primary aluminium in Asia, with the

largest single location copper smelter

 No.1 in viscose staple fibre

 No.1 in carbon black

 The fourth-largest producer of insulators

 The fifth-largest producer of acrylic fibre

 Among the top 5 cement producers globally

 Among the best energy-efficient fertiliser plants

 The largest Indian MNC with manufacturing operations in the USA, wherein

95 per cent of the workforce comprises of Americans

Aditya Birla Group – The Indian Scenario

 A top fashion (branded apparel) and lifestyle player

 The second-largest player in viscose filament yarn

 The largest producer in the chlor-alkali sector

 Among the top three mobile telephony companies

 A leading player in life insurance and asset management

 Among the top two supermarket chains in the retail business

Aditya Birla Group – Beyond Business

 Reaches out annually to 7.5 million people through the Aditya Birla Centre for

Community Initiatives and Rural Development, spearheaded by Mrs.

Rajashree Birla. Works in 5,000 villages globally.

 Focuses on: health-care, education, the girl child, sustainable livelihood,

women empowerment projects, infrastructure and espousing social reform.

 Runs 42 schools which provide quality education to 45,000 children. Of these

18,000 students belong to the underprivileged segment. Merit Scholarships are

given to 24,000 children from the interiors.

 Its 18 hospitals tend to more than a million villagers.

 Ongoing education, healthcare and sustainable livelihood projects in

Philippines, Thailand, Indonesia, Egypt, Korea and Brazil, lift thousands of

people out of poverty.

 Set up the Aditya Birla India Centre at the London Business School. The

Aditya Birla Group transcends conventional barriers of business because we

care. We believe it is our duty to facilitate inclusive growth as well.

Over 50 per cent of its revenues flow from the overseas operations. The group

operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China,

Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea,

Laos, Luxembourg, Malaysia, Myanmar, Phillippines, Poland, Russia, Singapore,

South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey,

UAE, UK, USA and Vietnam.

2.2.2 ADITYA BIRLA TOOK OVER PANTALOONS RETAIL CHAIN

Aditya Birla Nuvo Ltd (ABNL), a unit of the $28 billion (Rs 1.5 trillion) Aditya Birla

Group, will acquire a majority stake in the Pantaloons retail chain of debt-laden

Pantaloons Retail India Ltd (PRIL), India’s largest listed retail company by revenue.

The proposed transaction, which will help the Future Group’s PRIL pare debt, is

likely to be completed within 8-10 months, subject to the scheme of arrangement

being finalized, due diligence, and statutory and other approvals, ABNL said in a

statement.

Future Group founder Kishore Biyani has been looking to reduce debt that’s been

accumulated by rapid expansion as PRIL has sought to build scale rapidly.

Meanwhile, the intense political opposition to foreign direct investment in multi-

brand retail has meant that any plans of selling stakes to overseas retail companies had

to be shelved.

The new, separated unit will eventually become a subsidiary of ABNL, the other units

of which include Madura Fashion & Lifestyle and Jaya Shree Textiles.

The separation will help PRIL, which had debt of Rs 5,800 crore as of December

2011, reduce this amount by Rs 1,600 crore, according to a PRIL statement. “This

deal is being done to reduce debt as non-core business transactions like Future Capital

are taking some time to finalize”, said Abhishek Ranganathan of MF Global Sify

Securities India Pvt Ltd.

ABNL, which owns apparel brands such as Louis Philippe and Allen Solly, said it

will infuse Rs. 1,600 crore in the pantaloons department retail chain business by
issuing debentures worth rupees 800 crore at mutually agreed terms and taking on

debt of Rs. 800 crore.

An investment banker, who did not want to be named, said it wouldn’t be possible to

compute the value of the deal till the “mutually agreeable” terms are made public.

After the separation, the debentures will be converted into equity shares of the

resulting entity, ABNL said in the release. PRIL will hive off the Pantaloons chain.

ABNL will make an open offer for a minimum 26% to the shareholders of the

resulting unit. After its listing and on conversion of the debentures into equity,

ABNL’s holding will be a minimum 50.01%. The resulting unit will become a

subsidiary, ABNL said in the statement.

Rakesh Biyani, managing director at PRIL, and Kailash Bhatia, an executive director

at the firm, will continue to manage the Pantaloons chain. A Fashion Council will be

setup, comprising the objective of fully leveraging the strengths of Madura garments

and pantaloons. JM Financial Ltd acted as the sole financial adviser to the transaction,

PRIL said in the statement.

Future Group, which has retail businesses under PRIL in food, fashion, home and

consumer electronics, besides other segments such as financial services, has been

looking to reduce debt. “This announcement is just the first in a series of

announcements that will happen over the next couple of months which will see the

debt reduce”, a company spokesperson said. The origin of PRIL can be traced back to

1987, when Kishore Biyani founded Manz Wear Pvt Ltd to manufacture trousers

bearing the brand name Pantaloon. It went public in 1991 and changed its name

Pantaloon Fashions in the same year, and to Pantaloon Retail in 1999. Over the last
one year, the market capitalization of PRIL has eroded by Rs 1,598.72 crore from Rs

5,793.06 crore to Rs 4,194.34 crore.

PRIL shares jumped 9.25% to close at Rs 187.75 each, while ABNL shares rose

0.26% to end at Rs 933 a piece on BSE. The benchmark Sensex gained 0.76% to

close at 17,318.81 points. In the last one year, PRIL has lost 31.69% and ABNL has

gained 6.99%.

Earlier this year, the Aditya Birla Group undertook a management recast at food and

groceries business Aditya Birla Retail Ltd, as it looked to cut losses by shutting down

more than 10% of its unviable supermarket stores run under the brand name More.

The revamp saw Madura Fashion Chief Executive Officer (CEO) Pranab Barua

replacing Thomas Varghese as CEO of Aditya Birla Retail. Varghese then took over

as head of Jaya Shree Textiles.

“This marks a unique coming together of brands and enterprise that will create

significant value for customers, suppliers and all stakeholders”, said Kishore Biyani,

who is also group CEO of Future Group, the parent of Pantaloons.

“The proposed acquisition is in line with our strategic intent to be on the top of the

league and to create the largest integrated branded fashion player in the country

through an extension into the value segment. This acquisition will catapult ABNL to

the pole position in the branded fashion space in all the segments with a pan-India

presence”, said Kumar Mangalam Birla, Chairman of ABNL.

2.3 ADITYA BIRLA FASHION AND RETAIL LIMITED

Aditya Birla Fashion and Retail Limited (ABFRL) emerged after the consolidation of

the branded apparel businesses of Aditya Birla Group comprising ABNL's Madura

Fashion division and ABNL's subsidiaries Pantaloons Fashion and Retail (PFRL) and
Madura Fashion & Lifestyle (MF&L) in May 2015. Post the consolidation, PFRL was

renamed Aditya Birla Fashion and Retail Limited.

ABFRL brings together the learnings and businesses of two renowned Indian fashion

icons, Madura Fashion & Lifestyle and Pantaloons Fashion and Retail. ABFRL is

India's No 1. Fashion Lifestyle entity with a combined revenue of Rs.6,633 crore for

FY17, growing at a rate of 10 per cent and EBITDA of INR 476 crore for FY'17 that

has grown at 18 per cent over the last year.

The ABFRL umbrella includes:

Madura Fashion & Lifestyle Madura Fashion & Lifestyle, a division of ABFRL, was

the first player operating on a national scale, dedicated to the core business of fashion

retail in India. Originally known as Madura Garments, MF&L was born in 1988 at the

cusp of the unshackling of the Indian economy. Fashion in those days was not what

the consumer's aspirations merited. MF&L has a vast retail network comprising

exclusive outlets, premium multibrand and department stores. Four of its brands are

among India's top fashion names, with MRP sales in excess of Rs. 1,000 crore each.

Brands Louis Philippe led the aspiration for fashion excellence, giving its customers

access to the finest in global fashion. Van Heusen focused on empowering the fashion

ambitious professional partnering his career ambitions with power dressing. Allen

Solly was for those looking for a smart fashion alternative. It came out with the

concept of Friday Dressing. Peter England with its promise of honest-to-goodness

prices emerged the favourite for a large mass of first jobbers. Brand extensions to new

categories – including sportswear, footwear, bags and accessories – have been at the

core of MFL's leadership in its segments. MF&L brands have also established strong

roots in womenswear and are getting popular in kidswear as well. The company also
houses a range of other fashion formats – Planet Fashion, The Collective, Hackett

London, and Trendin. Planet Fashion is a multi-brand, apparel-retailing format that

houses MF&L's in-house brands and some significant others. The company's premium

lifestyle store, The Collective, offers a unique blend of global fashion, international

trends and luxury customer services to customers.

Madura F&L has entered into the luxury mono brand business in India and through a

joint venture introduced the quintessential British men's luxury brand Hackett London

into India. The journey of MF&L has been a journey of pro-actively partnering the

everevolving Indian fashion consumer.

ABFRL has acquired exclusive online and offline rights to market the global brand –

‘Forever 21’ and its existing store network, in the fast-fashion segment in India. To

expand its international portfolio, ABFRL entered into exclusive partnerships with

two of UK’s most successful fashion brands, ‘Simon Carter’ and `Ted Baker’.

Pantaloons Voted as 'India's Most Trusted Apparel Retail Brand' (Brand Equity

Survey 201415), Pantaloons, a division of ABFRL, is one of the most loved large

format fashion retailers in India. Post-acquisition by Aditya Birla Nuvo Limited in

2013, Pantaloons is today the fastest growing large format retailer in the country. The

rate of new store openings has increased from one every two months to one every two

weeks. The brand is now present in 78 Indian cities/towns.

Pantaloons posted revenues of Rs.2,164 crore in FY15-16, up 17 per cent from the

previous year. Pantaloons offers a wide range of brand offerings across apparel and

non-apparel categories and across varied price points. It operates across categories of

casual wear, ethnic wear, formal wear, party wear and active wear for men, women
and kids. Womenswear is the lead category contributing to half of total apparel sales.

Nonapparel products include footwear, handbags, cosmetics, perfumes, fashion

jewellery and watches. Pantaloons began in 1997 as a Future Group company in the

quest to equip the emerging Indian middle-class with an indigenous fashion retail

format. Consistent with the times, the model was of a discount fashion retailer.

Brands Pantaloons today retails over 200 licensed and international brands, including

24 exclusive brands. The Pantaloons exclusive brand bouquet includes Ajile, Akkriti,

Alto Moda, Annabelle, Bare Denim, Byford, Candie’s New York, Chalk, Chirpie Pie,

Honey, Izabel London, Poppers, Rangmanch, Richard Parker SF Jeans, Trishaa,

Urban Eagle; besides, it also features brands licensed on a long- term basis: Bare, Rig,

SF Jeans, Byford, JM Sports, Lombard and Candie’s New York. It also hosts Madura

F&L's brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and

People in menswear; Van Heusen and Allen Solly in womenswear, and Allen Solly

Junior. It retails partner brands such as John Miller, Celio, Spykar, Levis and Lee

Cooper in menswear; Jealous 21, 109*F, AND, Chemistry and KRAUS in women's

western wear; BIBA, Global Desi, and W in women's ethnic wear; Barbie and Ginny

& Jony in kidswear.

ABFRL altogether hosts India's largest fashion network with over 7000 points of sale

across over 375 cities and towns, which include more than 2,000 exclusive ABFRL

brand outlets. With ~16 million Loyalty Members as of FY’17, ABFRL has a strong

bouquet of loyalty programmes in India. ABFRL boasts of creating more than 20,000

new designs every year.

2.4 PANTALOONS GREEN CARD

THE PERKS OF BEING IN LOVE WITH FASHION

1 Star --

 2 points per Rs.100

 No questions asked Exchange Policy, valid for 90 days, bill not required

 Instant Redemption on next bill at cash counter

 Convenient Mobile based program

 Sale Preview

 Complimentary Home-Drop of altered apparel

3 Star –

 % discount as points

 No questions asked Exchange Policy, valid for 90 days, bill not required

 Instant Redemption on next bill at cash counter

 Convenient Mobile based program

 Sale Preview

 Complimentary Home-Drop of altered apparel

 Exclusive Billing Counters

5 Star –

 5% discount as points

 No questions asked Exchange Policy, valid for 90 days, bill not required

 Instant Redemption on next bill at cash counter

 Convenient Mobile based program

 Sale Preview

 Complimentary Home-Drop of altered apparel

  Exclusive Billing Counters

 Reimbursement of paper carry bags (as reward points)

7 Star –

 7% discount as points

 No questions asked Exchange Policy, valid for 90 days, bill not required

 Instant Redemption on next bill at cash counter

 Convenient Mobile based program

 Sale Preview

 Complimentary Home-Drop of altered apparel

 Exclusive Billing Counters

 Reimbursement of paper carry bags (as reward points)

(Note: The value of 1 point is 25 paise)

2.4.1 PROCESS TO UPGRADE PANTALOONS GREENCARD

MEMBERSHIP--

The preceding 12 months shopping is taken into account to upgrade. The Table below

illustrates the same.

2.4.2 PROCESS TO MAINTAIN PANTALOONS GREENCARD TIER--

From the day of tier assignment one needs to maintain a minimum shopping account

for the next 12 months. This account varies from tier to tier and is as follows:

If this minimum criteria is not met, one is assigned the preceding tier. 1 Star members

need to shop at least once in the preceding 24 months to retain their membership.
2.5 PANTALOONS BRANDS

The company has 24 domestic and foreign brands that were developed independently

of the retail presence of the group.

These brands are present in every segment within the fashion space including

menswear, activewear, partywear, women’s ethnic and formal wear, kidswear,

footwear and accessories and are present across various price points. While many of

the brands have been developed by the company over a decade, the company also has

exclusive licensees and joint ventures of global brands.

While all the company’s brands are sold through the company’s retail chains, these

brands are also distributed through independent distribution channels, exclusive brand

outlets and other modern retail chains like Lifestyle, Shoppers’ Stop, Reliance Trends,

Mega Mart.

In Pantaloons Store, there are two types of brands available there. These are —

2.5.1 Pantaloons Home Brands –

It consists of brands which are of Pantaloons. These brands are –

Bare Denim, Bare Leisure, Byford, Ajile, Alto Moda, SF (San Francisco), Honey,

Indus Route, JM Sport, Rig, Annabelle, Izabel London, Candie, Akkriti, Rang Manch,

Trishaa.

2.5.2 NON-PANTALOONS BRANDS –

It consists of brands which are not of Pantaloons. These brands are –

Indigo Nation, John Miller, Celio, UCB, Turtle, Spykar, Levis, Pepe Jeans London,

Black Berry, Theme, Peter England, Van Heusen, AND, Kraus, Jealous 21, etc.
Bare Denim offers a range of denim wear that compliments everyday life. Choose

from a wide variety of checkered shirts, graphic t-shirts, printed tops, denims, dresses

and shorts to keep your wardrobe always updated with daily trends.

Transform your look from work to weekend seamlessly with smart casuals from Bare

Leisure. The collection offers khakis, smart checkered shirts, colored chinos and

graphic tees suitable for work and leisure.

Ajile is a sports lifestyle brand that imbibes a distinctively vibrant and casual look.

The collection offers a wide range of athletic apparels and sports casuals, sweatshirts,

dry fit T-shirts, shorts, three fourths, track pants and more to make your sporty life

exciting.

Alto Moda - the plus size fashion collection for men and women allows you to

explore an effortlessly stylish yet comfortable look. The collection offers formal

shirts, trousers, denims, striped and graphic printed t-shirts for men available

exclusively at Pantaloons.

Edgy , rock star inspired and tough, San Frisco Jeans Co is all about going bold this

season. It’s grunge inspired fashion for men and women. The collection offers

distressed fashion denims, leather jackets, lace dresses, racer backs, crop tops, graphic

prints inspired by hard rock and more to add edgy glamour to your wardrobe.

Honey offers fun and peppy casual wear for the young girls who are free spirited,

impulsive yet a romantic at heart. The range encompasses stylish day wear - floral,

feminine & vibrant.

Trace back to your glorious heritage with contemporary ethnic wear for men from

Indus Route. With a wide array of kurtas, Nehru jackets, pathanis, waist coats, salwars

and fusion tees, the brand weaves a contemporary tale into classic Indian cuts to make

a statement like no other.

JM Sport offers classic casuals with an aristrocatic lineage that is visible in the

diversity of stripes and shades in each of its t-shirts. Striped polos t-shirts available in

a wide range of colors make for a perfect day wear.

Outdoor, Utility and Casual lifestyle, that’s the heart of this brand. Specially designed

for the free-spirited individuals. Those who love to take the uncharted off the beaten

track. Always ready to travel, always ready to explore.

Annabelle is a 9 to 9 western fashion wear for the ladies. The collection blends

femininity with formal wear. Understated elegance in contemporary and classic styles

is the key offering to every fashionista's wardrobe.

Stay effortlessly elegant with Izabel London's sophisticated and feminine fashion that

let you carve your unique style. Choose from a wide array of dresses, tops, trousers

and tunics to create a casual wardrobe that will carry you from brunch outings to art

gallery openings with equal panache.

Fun and flirty - flaunt your style with the all new collection by Candies exclusively

available at Pantaloons. Dainty floral dresses, delicate lace tops, frilly skirts, printed

leggings and bodycons make for the wardrobe essentials of every 'it' girl.

Akkriti is a fusion ethnic wear brand for the uber cool Indian girl who loves to explore

& experiment. This contemporary collection offers indo-western silhouettes. The

eclectic vibe of colours, fabrics, and designs make it a great option for those who

want to have fun with their style.

Rangmanch offers mix-n-match Indian wear for that simple yet stylish woman. Every

ensemble is a mélange of contemporary styles with an Indian vibe translated into

kurtas and churidars exuding charm and simplicity.

Indian tradition elegantly embodied in Trishaa. A plethora of designs ranging from

opulent paisley to intricate chikan work to beautiful embroidery, it’s a combination of

salwar-kameez-duppata sets perfect for every traditional occasion.

Indigo Nation has always been the cult brand for the young and the restless,

delivering fast fashion to the young Indian dude who forever aspires to be IN. The

Indigo Nation dude’s stance is always “Subject to Change”.

John Miller presents a range of everyday corporate wear and accessories that

unfailingly makes you look confident and fluent. It includes formal shirts, trousers,

blazers, ties and accessories like belts and wallets. In line with the more relaxed work

culture seen now a day, John Miller has also introduced a range of relaxed office wear

- John Miller Hangout. The range includes printed shirts, polos, khakis, chinos &

denims.

Celio is an iconic French brand that is operating with the company as a joint venture

since June 2008. The brand offers a wide selection of casual wear and denim wear and

also has a chain of 30 exclusive brand outlets in key cities across the country.
Benetton Group is a global fashion brand, based in Ponzano Veneto, Italy. The name

comes from the Benetton family who founded the company in 1965. Benetton has a

network of about 5,000 stores in the main international markets.

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 colored 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.

Spykar, the unisex Jeanswear brand has come a long way in establishing itself as

India’s most trusted denim brand amongst the youth and recently has been voted as

the ‘most exciting Indian brand’ by Economic Times (Brand Equity Survey). Right

from denims, shirts, t-shirts, non-denim bottoms, and tops to accessories like belt,

socks, perfumes, deodorants and bags, Spykar continues to set trends while it

promises 100% comfort and styling.

Before AND was launched, there weren’t many designers catering to the needs of

the Indian woman. Our country is unique in terms of its culture, which made it

even more important to understand what she was looking for, her psyche, her body

and her comfort levels. AND offers a chic collection of western wear that

comfortably combines formal and evening wear. It has evolved to keep pace with its

clients’ changing lifestyles. AND takes them to higher levels of comfort and

confidence by making them look, feel, work and play better.

Kraus is a casual wear lifestyle brand, fit for the fashion conscious woman of today.

What makes us different from other denim manufacturers is the fact that we’ve paid

careful attention to the body structure of Indian women while designing our jeans. All

our denims are tailored with the unique body structure of Indian women. There’s

absolutely no compromise when it comes to fabric and colour, and the different styles

ensure that they get pair of denims that they feel comfortable and confident to wear.

At Kraus, quality is a part of our fabric, and is woven deep into our principles.

Jealous 21 is India’s leading exclusive women’s wear brand, revolutionized the jeans

market for women by launching jeans that fits every body type of Indian women. The

brand offers an elaborate range of hip-fit jeans is an equally stunning range of tops &

tees. Oozing with oomph, this brand is designed to infatuate today’s young women.
2.6 MISSION AND VISION

MISSION

To deliver superior value to our customers, shareholders, employees and society at

large.

VISION

To be a premium global conglomerate with a clear focus on each of the business.

2.7 BOARD OF DIRECTORS

Chairman Mr. Kumar Mangalam Birla

Managing Director Pranab Barua

Company Secretary Geetika Anand

Non Executive Director Sushil Agarwal

Non Executive Independent Director Sukanya Kripalu

Bharat Patel Arun Thiagarajan

Business Head (Madura Fashion & Lifestyle) Mr. Ashish Dikshit

Business Review Council Mr. Shailendra Jain

Group Talent Mentor Mr. Ratan Shah

CHAPTER 3
3.1 SWOT ANALYSIS
The retailing industry has been developing on daily basis. India is one of the largest

hosts of widely acknowledged retailing companies in the world. One of the

recognized retail companies in the country is Pantaloon. It is an exceptional retail

company that engages together with its subsidiaries in multi-format retail businesses

that include food, fashion, home improvement, furnishing solutions, electronics and

merchandise. From its SWOT analysis, it is clear that Pantaloon stands out above

many other retailing companies. These are factors that affect operations of a company

give it a greater edge than its competitors.

The SWOT analysis of Pantaloon is one of the essential tools that the company has

used to ensure that there is a clear goal for the venture and to ensure that it is clear on

the factors affecting is environment of operation. To accomplish a SWOT analysis,

the process entails looking at the strengths, weaknesses, opportunities and threats. All

in all, here is an easy to comprehend SWOT analysis of Pantaloon;

STRENGTHS –

1. Pantaloons is one of India’s largest retailer having 100+ stores across 40+ cities in

India.

2. Pantaloons is one of the largest retailer by market capitalization and revenue in

India.

3. It manages high number of purchase orders.

4. It is always updated with changing consumer preferences.

5. Pantaloons is a popular brand with a high presence across India.

6. Strong online presence of the brand helps to tap the internet market.

7. Pantaloons offers a wide variety of clothes for men, women and children.

8. Advertising, branding and discounts have enabled the brand to capture the youth.

WEAKNESSES –

1.Intense competition from retail stores and online shopping brands means limited

market share growth for Pantaloons.

2.Too many options for customers hence high brand switching and low brand loyalty.

OPPORTUNITIES –

1.Pantaloons can increase the footfalls by increasing ATL – TV commercial

promotions

2.India is fast emerging as retail hub for top brands as government allowed FDI in

single brand and multi brand retail

3.Organized retail is only small percentage of total Indian retail industry

4. Tie-ups with fashion institutes and even online brands can help increase sales for

Pantaloons.

THREATS –

1. Strong competition from unorganized retail sector in India affects business of

Pantaloons

2. Government policies are not well defined in emerging markets.

3. Online shopping is emerging trend in consumers due to convenience which is

taking away market share of retailers like Pantaloons.

The chief purpose of the SWOT analysis of Pantaloon as a tactical planning tool is to

easily conform to a list of relevant factors affecting the activities of the company. In

addition the SWOT analysis also offer solutions to any essential questions raised on

the company by consumers. Any threats that may hinder success of Pantaloon are also

well addressed to evade future complications in its operations

CHAPTER 4
4.1 SCOPE OF THE STUDY

1. Research is done among the group of people shopping at Pantaloons located in

Exhibition Road Patna.

2. Research is done among the people who frequently shop at Pantaloons.

3. Research is done among the people who interact with floor staff before buying

merchandise.

4. Research is done among the people who interact with Customer Service Desk

(CSD) after their purchase.

4.2 NEED FOR STUDY

1. Customer service is an unavoidable part of a company’s customer value

proposition. These are the parameters that indicates the level of focus of

any retailer to provide services to the customers.

2. It is very important to make a point that unless a retailer is not aware of the

customer expectations a service, it becomes quite difficult to set his own

service standards for the store.

3. Customer service may be employed to create such competitive advantage

as a service proposition would be harder to copy for competitors. A

company may try to differentiate itself from the competition through better

customer service.

4. The consistent delivery of superior service requires careful design and

execution of a whole system of activities that includes people, technology,

and processes.
 5. Technology has provided a wide range of customer service tools. They

range from support websites and the ability to have live chats with

technical staff to databases tracking individual customers' preferences,

payment methods, pattern of buying etc., and providing products and

service responses based on this advanced data. Specialist software that is

designed for the tracking of service levels and for helping recognize areas

for improvement are often integrated into other enterprise operational

software tools such as ERP software.

4.3 OBJECTIVES OF THE STUDY

1. To know about the buying behavior and satisfaction level of the customers.

2. To study the factors affecting the phases of buying behavior.

3. To study the quality of service provided at Pantaloons to support buying

behavior.

4. To know the impact of the marketing and channels of communication on the

customers buying behavior

CHAPTER 5
5.1 INTRODUCTION TO RESEARCH METHODOLOGY
5.1.1 General Introduction

This study about “Customer Buying Behavior” is conducted to know about the buying

behavior of the customers in shopping with Pantaloons. This study is limited to

Pantaloons which is located in Exhibition Road, Patna.

5.1.2 Customer Buying Behaviour

Customer Buying Behaviour is the study of individuals and the processes they use to

select, secure, use and dispose of products, services, experiences or ideas to satisfy

needs and the impacts that these processes have on the consumer and society.

Customer behavior is increasingly a part of strategic planning for the future

investment

and growth of any industry. Retail industry or precisely to say Apparel industry is no

exception.

Customer can either be subjective or objective, testing the persuasiveness of brand

names. Retail stores selling the products also play an important role in swaying the

decisions of customer. The whole package or visual appeal of the retail outlet can

determine sales or the service of the sales ladies or the clerks. Furthermore, customer

may choose particular products/brands not only because these products provide the

functional or performance benefits expected, but also because products can be used to

express customers personality, social status or affiliation or to fulfill their internal

psychological needs, such as the need for change or newness. Customer behavior

refers to the mental and emotional process and the observable behavior of customers

during searching, purchasing and post consumption of a product or service. Consumer

behavior involves study of how people buy, what they buy, when they buy and why
they buy. It blends the elements from Psychology, Sociology, Social Psychology,

Anthropology and Economics.

5.1.3 Factors affecting Customer buying behavior

Customer buying behavior is influenced by the major three factors :

1. Social Factors

2. Psychological Factors

3. Personal Factors

1. Social Factors :

Social factors refer to forces that other people exert and which affect customers’

purchase behavior. These social factors can include culture and subculture, roles and

family, social class and reference groups.

2. Psychological Factors :

These are internal to an individual and generate forces within that influence his/her

purchase behavior. The major forces include motives, perception, learning, attitude

and personality.

3. Personal Factors :

These include those aspects that are unique to a person and influence purchase

behavior. These includes demographic factors, lifestyle and situational factors.

5.2 RESEARCH METHODOLOGY

Pantaloons want to study the buying behavior of the customers so that they can

analyse the buying patterns of the customers and improve their efficiency of product

offers and services. This study also helps them in improving the conversion ratio and

customer traffic.

5.2.1 Research Methodology

The research methodologies are using primary data collection and secondary data

collection. Here primary data collection is performed through Questionnaire. A

sample size of 50 customers is taken randomly. The sample is limited to the visitors of

Pantaloons at Exhibition Road Patna.

The sample is collected by approaching respondents personally and the people who

bought something from the store. The sampling chosen is a random sampling so that

every respondent has equal chance to respond.

The collected data in the form of questionnaires is then processed and the analysis is

done so that we can suggest improvements based on findings.

5.2.2 Research Design

The research design chosen for this research is Descriptive Research design as there is

plenty of data available as secondary data and a lot of researches are done before.
5.2.3 Sampling Design

Sample Size-

Sample Size taken to conduct the research 50.

Sampling Method-

The sampling method used to conduct the research is Simple Random Sampling

which helps all units from the sampling frame have an equal chance to be drawn and

to occur in the sample.

Sample Frame-

As we have selected simple random sampling the researcher had the freedom to select

the sample randomly where there is equal chance for every sample to be taken and

includes only the shoppers at Pantaloons at Exhibition Road, Patna.

Sample Unit-

The sample unit considered here are the people who visit pantaloons and other retail

formats to purchase merchandise in Pantaloons.

5.2.4 Data Collection Design

Primary Data

Primary data is collected using a random sampling technique and with the help of

questionnaire. The data is collected personally by approaching the sample.

Secondary Data

Quantitative data.

Scaling Design

The questionnaire consists of questions which are based on nominal scale Likert

Scale.
Questionnaire Design

The questionnaire is prepared by researcher using open-ended, close-ended,

dichotomous and multi-dichotomous questions.

5.3 LIMITATIONS

This project report suffers from following limitations:

1. Questionnaires were filled in evenings, when most of the people are in hurry and

they might not have responded truly to all the questions.

2. Our research is limited to only one store of Pantaloon at Exhibition Road Patna and

Sample Size is of 50 respondents so errors may crop in while generalizing the results.

3. Those who came out of Pantaloon Store after shopping were chosen for getting the

questionnaires filled but they held bulky polyethylene bags due to which they found it

difficult to stand for long and answer the questions.

4. Most of the retail outlets mentioned in our questionnaire may or may not be visited

by respondents; this affected their response to various questions.

CHAPTER 6
6.1 DATA ANALYSIS & INTERPRETATION
CHAPTER 7
7.1 FINDING
7.1.1 From the Questionnaires :

1. From the location of the shoppers it is clear that many people are brand loyal to

pantaloons and come over from almost all parts of Patna to shop at Pantaloons.

2. Visual Merchandising of the store is good and all the staffs are well aware of the

products (Apparel and Non-Apparel) and are good in communicating about the

merchandise to the shoppers.

3. The store is well decorated and the ambiance of the store is nice and it offers the

shoppers a wide range of products so that they can shop well.

4. There is no proper communication of the offers available at Pantaloons through

electronic media like e-mail and SMS. Most of the respondents come to know about

offers at Pantaloons through Newspapers and other means (Friends, Relatives. etc).

5. The satisfaction level and experience of the customers with respect to their

shopping is good and they want purchase again which shows Pantaloons is good in

customer retention.

7.1.2 From the interaction with Customers :

1. Most of the customers who comes from far places feel that the transportation is a

major problem and at Exhibition Road there is no route for public transport available

and due to which most persons (Specially Female) finds it difficult to come at

Pantaloons for shopping.

2. Some of the customers are not informed about the offers that are happening in

Pantaloons Store and there has been a miscommunication by same staff.

3. Most of the customers felt that the employees of the store are very friendly all the

time to help in selections of merchandises.

4. Most of the customers felt that the VM at Pantaloons is very good and they have a

updated collection all the time.

7.2 SUGGESTIONS

1. E-mail and SMS can be used as an effective channel of communicating the offers to

the customers.

2. Proper communication is to be provided to the customers through sales people so

that there will be no confusion in understanding the offers.

3. Aditya Birla has a tie-up with payback which is a loyalty program so the

advertisements and promotions should be communicated through mails and SMS to

the respective customers.

4. Better offers can be provided to loyal customers based on the frequency of

purchases and the type of purchases they make.

5. A play area for kids can be made so that it can attract more customers.
7.3 CONCLUSION

The study helped me in understanding the retail sector and the format of organized

retail sector. It also helped in understanding the customer behavior while purchasing

the merchandise in the store and also about the factors that they consider while

making the purchases.

Based on the study and customer’s responses, we can be able to fill the gap between

the customers and their purchases.

The study helped in understanding the customer behavior and to identify their

considerations during the purchases. This study helps in finding the customers

responses and to make the services offered by pantaloons more efficient.

The study helped in finding about the store atmosphere, location, the merchandise

offered at pantaloons, knowledge of the sales force, customer care response and the

offers provided by pantaloons.

CHAPTER 8
8.1 APPENDIX

NAME:

GENDER:

Male

Female

AGE GROUP:

10-20

20-30

30-40

40-above

OCCUPATION:

Service

Business

Others

1) What influenced you to shop in Pantaloons ?

Product quality

Store appearance and atmosphere

Promotions and offers

Price & Terms of Payment

2) How frequently do you shop at Pantaloons ?

Every Week

Once in Two Week

Once in Three Week

Once in a Month
3) Which company you think is Competitor of Pantaloons ?

Central

Max

Reliance Trends

Big Bazaar

4) Brands and Products availability in Pantaloons is ?

Excellent

Good

Average

Bad

5) Through which Promotional Source you come to know about Pantaloons ?

Newspaper

E-Mail

SMS

Other

6) Do the Staff provide right Information regarding the Merchandise ?

Strongly Agree

Agree

Disagree

Strongly Disagree

7) How is the Customer Care response when you approach them ?

Good

Best

Average

None
8) Do the Store have a wide range of Products ?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

9) Is the Store located at a Right and Convenient Place ?

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

10) Will you Purchase again at Pantaloons ?

Definitely will

Probably not

Not sure

11) FEEDBACK
8.2 BIBLIOGRAPHY

 http://www.pantaloons.com

 Principles of marketing By PHILIP KOTLER.

 http://www.adityabirla.com

 http://www.google.co.in

 http://www.abfrl.com

 http://www.slideshare.net

 https://en.wikipedia.org/wiki/Consumer_behaviour