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STRATEGY ANALYSIS OF MADURA FASHION & LIFESTYLE
Madura Fashion & Lifestyle a subsidy of Birla Nuvo Ltd, is one of the fashion
retailers in India. Indian apparel industry valued around 200000 crore in 2012 and it is
expected to increase over 400000 crore. Apparel and clothing contributes around 4% of
the indian households consumption every month. Due to increase of base in middle
class income group factors such as increase in purchasing power, spending mentality,
craze towards foreign brands showed limelight on apparel retailing industry. The retail
sector in India accounts for 22 per cent of the country's gross domestic product (GDP)
and contributes about 8 per cent to the total employment. India continues to be among
the most attractive investment propositions for global retailers. India has emerged as
the fifth most favorable destination for international retailers, outpacing the UAE,
Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail
Development Index (GRDI) 2012.
Madura Fashion & Lifestyle reaches its discerning customers through an
exclusive network comprising more than 1,500 stores, covering 1.9 million sq ft of retail
space, and is present in more than 1,300 premium multi-brand stores and 300+
departmental stores. The company’s brand portfolio includes product lines that range
from affordable and mass-market to luxurious, high-end style and cater to every age
group, from children and youth to men and women.
FORMATS OF OPERATION:
 The company's lifestyle store, The Collective, offers a unique blend of global
fashions, international trends and innovative customer services, to customers in
major metros in India.
 Planet Fashion, the multi-brand, apparel-retailing arm of Madura Fashion &
Lifestyle, housing the company's in-house and other brands, is the largest chain
of stores of its kind in India.
Page 2
 Madura Fashion & Lifestyle marked its foray into the luxury mono brand
business in India by launching the quintessential British men's luxury clothing
and accessories brand Hackett London through a joint venture with the UK firm.
 Recently, the company launched Trendin.com, a one-stop shopping destination
for the style conscious. As the official online store showcasing the widest range
of its brand.
POSITIONING:
Madura Fashion & Lifestyle has a very large base of customers because of their
presence in different customer segmentation. They have a wide variety of brands which
serves customers of all brackets. Exhibit 1 clearly shows the positioning of different
brands.
Exhibit 1: Positioning of different brands
Brand Name Demographics Positioning
Louis Philippe Male 25-45 years It is a mélange of comfort,
perfection and elegance.
Van Heusan Male 25-45 years Position itself as a lifestyle
cum corporate wear.
Allen Solly Male/Female 22-40 years It broadens the meaning of
Fridays.
Peter England Male 20-32 years Beginning of good things is
the tagline and pictured as
an honest brand image.
The collective Age 25-34 accounts 62%
35-44 accounts 20%
45-50 accounts 18%
Positioned as an
aspirational brand for
discerning Indian.
Page 3
PORTERS FIVE FORCES ANALYSIS:
Today, fashion retail in India is highly competitive and there has been an
avalanche of global fashion brands making an entry into the Indian marketplace. The
margins on a private label are higher for retailers, as they are able to control the
sourcing and manufacturing costs of these apparels at the back-end, and marketing
through their department stores on the front-end.
Exhibit 2: Five force analysis
Factors Key elements
Power of suppliers i. Very few suppliers who have
economies of scale.
ii. Substantial decrease in suppliers of
merchandise.
Power of buyers i. Product differentiation.
ii. Retailer’s service.
iii. Growing value consciousness.
Rivalry i. Differential pricing.
ii. Acceptance of Information
technology.
iii. Improved supply chain.
iv. Brand building through values.
New entrant i. FDI entry in multi branding retailing.
ii. Proliferation of private labels.
Substitutes i. Alternative retail landscape like
direct selling, E-tailing.
ii. Shift towards other formats such as
cash & carry, hypermarket, discount
stores.
Page 4
Exhibit 3: Firm’s Diversification
Exhibit 4: Market Share
Fabrics
• Aditya Birla groups owns Grasim Industries Ltd. Grasim Industries Limited
is a global leader in viscose staple fibre and ranks among India's largest
private sector companies. Grasim has a presence in fabrics and synthetic
yarn.
Textile
• Established in 1988 by Madura coats limited, Madura Fashion & Lifestyle
has its origin in the erstwhile coats Viyelle Plc, Europe's largest clothing
supplier. In December 1999 Aditya Birla Nuvo acquired Madura Fashion &
Lifestyle to beccome a undisputed leader in readymade menswear.
Retailing
• Madura Fashion & LIfestyle has a nationwide reach through a large
controlled presence of 1670 stores spanning around 4.11 million sq.ft.
Besides reaching customers through more than 4750 MBOs and
departmental stores.
Madura F&L
Raymond Ltd
Arvind Ltd
others
55%
20%
15%
10%
Page 5
Exhibit 5: References
1. Aditya Birla Nuvo “corporate presentation” December 2013.
2. Madura Fashion & Lifestyle Ltd http://www.madurafnl.com/index.html.
3. “The future of fashion apparel in India” – Texcon’12
http://www.slideshare.net/WazirAdvisors/the-future-of-fashion-apparel-in-india.
4. “Fashion Retail: A State of Grace” by Images Business of Fashion.
http://www.indiaretailing.com/fashion/article-
detail.aspx?mcatid=1&catid=8&aid=9678.
5. “Innovation to Shape the Future of the Fashion World” by Images Business of
Fashion. http://www.indiaretailing.com/fashion/article-
detail.aspx?mcatid=1&catid=6&aid=9614.
6. “Indian apparel Market: Current status and Future outlook by Wazir Management
consultants at Indian Textile Summit, Mumbai- 27th
September 2012.
7. “A research report on assement of competition in apparel retail industry in India”
by Amity University, Noida to Competition Commission of India.
8. http://www.madurafnl.com/index.html.
9. http://www.adityabirla.com/home
10.http://www.indiaretailing.com/fashion/default.aspx

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Strategy analysis of madura f&l

  • 1. Page 1 STRATEGY ANALYSIS OF MADURA FASHION & LIFESTYLE Madura Fashion & Lifestyle a subsidy of Birla Nuvo Ltd, is one of the fashion retailers in India. Indian apparel industry valued around 200000 crore in 2012 and it is expected to increase over 400000 crore. Apparel and clothing contributes around 4% of the indian households consumption every month. Due to increase of base in middle class income group factors such as increase in purchasing power, spending mentality, craze towards foreign brands showed limelight on apparel retailing industry. The retail sector in India accounts for 22 per cent of the country's gross domestic product (GDP) and contributes about 8 per cent to the total employment. India continues to be among the most attractive investment propositions for global retailers. India has emerged as the fifth most favorable destination for international retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia, according to A T Kearney's Global Retail Development Index (GRDI) 2012. Madura Fashion & Lifestyle reaches its discerning customers through an exclusive network comprising more than 1,500 stores, covering 1.9 million sq ft of retail space, and is present in more than 1,300 premium multi-brand stores and 300+ departmental stores. The company’s brand portfolio includes product lines that range from affordable and mass-market to luxurious, high-end style and cater to every age group, from children and youth to men and women. FORMATS OF OPERATION:  The company's lifestyle store, The Collective, offers a unique blend of global fashions, international trends and innovative customer services, to customers in major metros in India.  Planet Fashion, the multi-brand, apparel-retailing arm of Madura Fashion & Lifestyle, housing the company's in-house and other brands, is the largest chain of stores of its kind in India.
  • 2. Page 2  Madura Fashion & Lifestyle marked its foray into the luxury mono brand business in India by launching the quintessential British men's luxury clothing and accessories brand Hackett London through a joint venture with the UK firm.  Recently, the company launched Trendin.com, a one-stop shopping destination for the style conscious. As the official online store showcasing the widest range of its brand. POSITIONING: Madura Fashion & Lifestyle has a very large base of customers because of their presence in different customer segmentation. They have a wide variety of brands which serves customers of all brackets. Exhibit 1 clearly shows the positioning of different brands. Exhibit 1: Positioning of different brands Brand Name Demographics Positioning Louis Philippe Male 25-45 years It is a mélange of comfort, perfection and elegance. Van Heusan Male 25-45 years Position itself as a lifestyle cum corporate wear. Allen Solly Male/Female 22-40 years It broadens the meaning of Fridays. Peter England Male 20-32 years Beginning of good things is the tagline and pictured as an honest brand image. The collective Age 25-34 accounts 62% 35-44 accounts 20% 45-50 accounts 18% Positioned as an aspirational brand for discerning Indian.
  • 3. Page 3 PORTERS FIVE FORCES ANALYSIS: Today, fashion retail in India is highly competitive and there has been an avalanche of global fashion brands making an entry into the Indian marketplace. The margins on a private label are higher for retailers, as they are able to control the sourcing and manufacturing costs of these apparels at the back-end, and marketing through their department stores on the front-end. Exhibit 2: Five force analysis Factors Key elements Power of suppliers i. Very few suppliers who have economies of scale. ii. Substantial decrease in suppliers of merchandise. Power of buyers i. Product differentiation. ii. Retailer’s service. iii. Growing value consciousness. Rivalry i. Differential pricing. ii. Acceptance of Information technology. iii. Improved supply chain. iv. Brand building through values. New entrant i. FDI entry in multi branding retailing. ii. Proliferation of private labels. Substitutes i. Alternative retail landscape like direct selling, E-tailing. ii. Shift towards other formats such as cash & carry, hypermarket, discount stores.
  • 4. Page 4 Exhibit 3: Firm’s Diversification Exhibit 4: Market Share Fabrics • Aditya Birla groups owns Grasim Industries Ltd. Grasim Industries Limited is a global leader in viscose staple fibre and ranks among India's largest private sector companies. Grasim has a presence in fabrics and synthetic yarn. Textile • Established in 1988 by Madura coats limited, Madura Fashion & Lifestyle has its origin in the erstwhile coats Viyelle Plc, Europe's largest clothing supplier. In December 1999 Aditya Birla Nuvo acquired Madura Fashion & Lifestyle to beccome a undisputed leader in readymade menswear. Retailing • Madura Fashion & LIfestyle has a nationwide reach through a large controlled presence of 1670 stores spanning around 4.11 million sq.ft. Besides reaching customers through more than 4750 MBOs and departmental stores. Madura F&L Raymond Ltd Arvind Ltd others 55% 20% 15% 10%
  • 5. Page 5 Exhibit 5: References 1. Aditya Birla Nuvo “corporate presentation” December 2013. 2. Madura Fashion & Lifestyle Ltd http://www.madurafnl.com/index.html. 3. “The future of fashion apparel in India” – Texcon’12 http://www.slideshare.net/WazirAdvisors/the-future-of-fashion-apparel-in-india. 4. “Fashion Retail: A State of Grace” by Images Business of Fashion. http://www.indiaretailing.com/fashion/article- detail.aspx?mcatid=1&catid=8&aid=9678. 5. “Innovation to Shape the Future of the Fashion World” by Images Business of Fashion. http://www.indiaretailing.com/fashion/article- detail.aspx?mcatid=1&catid=6&aid=9614. 6. “Indian apparel Market: Current status and Future outlook by Wazir Management consultants at Indian Textile Summit, Mumbai- 27th September 2012. 7. “A research report on assement of competition in apparel retail industry in India” by Amity University, Noida to Competition Commission of India. 8. http://www.madurafnl.com/index.html. 9. http://www.adityabirla.com/home 10.http://www.indiaretailing.com/fashion/default.aspx