Rationale For Setting Up Export Base In India Marketing Essay

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Contacted HSBC Bank and Lloyds TSB bank for puting up a concern history.

Presently discoursing the footings, conditions and monetary values with the ‘Indenting Agents ‘ ( Distributors/ Agents of readymade garments in UK market ) .

E. g. Promiage Plc ( Manchester ) and Richard Sylvester ( Chesterfield ) .

Already secured involvement from 4 to 5 manner dress shops in Sheffield ( E. g. )

SWOT analysis of Purpleposh

The SWOT analysis will be supplying us with an overview of the whole concern of PPC. The points described will be discussed in a much more elaborate manner throughout the papers.

The export industry and the rivals

Rationale for puting up export base in India:

A SWOT analysis has been performed on the Indian garment market to demo the possible growing in the market.

By looking at the possible growing in the export of readymade garments in India followed by the puting up of US $ 6 billion ( 3.86? billion ) engineering up-gradation fund for overhauling the full value concatenation, new liberalized labor Torahs, revenue enhancement benefits for exporters puting mills in the SEZ, progressive decrease of import responsibility on garment machinery and merchandises and eventually with the independency of puting up to the full owned sourcing offices has led us to a determination to put up our base in India.

The other factor that proves to be really of import for adding value to our merchandises is by the low cost labor force handiness in India which will truly convey down our production cost compared to puting up a company in developed states like UK. It is further defined by the aid of the pay comparing chart.

( Note: The payout provided by Purpleposh is above the mean labour category wage in India )




Standard pay for labor: 0.38?/hr

Our pay: 0.68?/hr

Standard pay: 5.81?/hour

Wage of low degree director: 0.80?/hr

Daily working hours: 10hrs/day

Daily working hr: 8hrs/day

Daily working hours: 8hrs/day

Ease of acquiring labor: Easy

Ease of acquiring labor: Easy

Ease of acquiring labor: Difficult

Handiness of skilled labor: Abundant

Handiness of skilled labor: Abundant

Handiness of skilled labor: Scarce

India and UK Wage Comparison Chart

Diagram to demo that export in India is chiefly dominated by readymade garment sector

Rationale for choosing UK market

Premium section will be the new focal point in the UK market

There is a new tendency in the UK population which favour trading up

Addition in dressing gross revenues from ?291 million ( 2007 ) to ?303 million ( 2010 )

There will be important rise in the clients of age group of 50 and above by 13 % by 2014

Understanding the 50+ sector is the key to growing ( Market worth ?2.83 billion tend to turn with an addition in per caput disbursement of 760? )

25 – 34 old ages section will be given to increase by 12 % by 2014

Country profile and industry profile

The market value of the UK vesture sector is estimated to be 71 $ billion ( 45.64? billion ) and one tierce of this is imported. UK has a adult females swear sector of 53 % . In UK at present big retail merchants are boosting their portion of market by cannibalising little mugwumps. Multiple stores constitute about 25 % of retail vesture market while departmental shop, discount houses, athleticss store, place shopping ‘s, market stables and supermarkets constitute about 31 % of UK market. Now a twenty-four hours ‘s departmental shops, big retail merchants and big concatenation shops are the major participants in the market who are largely involved in direct importation.

The RMG sector in UK is highly competitory but there have been adequate chances that exist for high quality advanced cloths, advanced design, high terminal merchandises and interior decorator wear and all these non merely forms the chance but besides forms the USP for the company.





Average Monetary value

( IN ? )





Womans suits


4.38? *




Other knitted garments




India ‘s place in planetary imports and the mean monetary value in 2007

* ( Note: The mean monetary value that has been taken for retail merchants is 5.95? by taking into consideration the 11.9 % addition in monetary value per twelvemonth since 2007 )

Section profile

The dress market is one of the most promising, disconnected and competitory retail sectors of UK, with a batch of retail merchants and large operators practically combating for their portion in an environment which comparatively has low growing. Since 2008 there has been a development of some influential, steady but comparatively smaller manner retail trade names ( adult females ) who are non merely successful in researching the retail merchants response and dynamicism of the market but are besides successful in unearthing the tendencies and drivers which drives the present UK market. Purpleposh ‘s chief focal point will be on those turning little retail trade names every bit good as the retail merchants own trade names for concern development.

Rationale for aiming premium section

For decennaries the UK market was prevailed by the value vesture section, till the clip rising prices hit the market taking to non merely slow growing and diminishing volume but besides to a gradual displacement in the market tendencies.

This displacement has let the premium vesture section to be the new land for conflict among the UK retail merchants. With the return of the rising prices in the UK market, there has been a consolidation of the value section merely in the custodies of largest and biggest operators which leaves merely the premium section as an chance for the retail merchants to capitalise on.


Market cleavage

Competition within export market in India and other states for readymade garments is extended. Most export houses appears to offer vesture discrepancies that covers largely all types of dresss for adult female but none offers a specialisation in the field of premium customised embroided dresss which are in great demand in the present UK market.



High End Buyers

It ‘s deserving paying more for manner and quality

25 %

38 %

I like to maintain up with the latest manner

17 %

44 %

I like to purchase interior decorator labels

8 %

27 %

I truly bask apparels shopping

26 %

39 %

*Based on 2000 users aged 16 – 55 old ages

Consumer ‘s attitude towards high terminal manner

Based on the research on Mintel there is grounds that there is a great demand for shopping for the high terminal embroided interior decorator apparels and is 39 % compared to the mean 26 % .







Tier 1

( Normal or Discounters )

20 – 50

Jackets, blouse, skirts, tops, tubings etc.

Not present

Average market monetary value

Aldi, Primark, Tesco, TK Maxx, Sainsbury, Asda etc

Tier 2

( Midrange )

20 – 50

Jackets, blouse, skirts, tops, tubings etc.

Very less

Slightly more than mean market monetary value

M & A ; S, Next, New Look, Dorothy, Oasis, Karen Miller, Waitrose, Bhs, Fashion Boutiques etc

Tier 3

( Premium )

20 – 50

Embroided tops, jackets, blouse, skirts, accoutrements

Large figure

Premium monetary value for premium vesture

Laura & A ; Ashley, Moonson, House of Frazer, Premium Fashion Boutiques etc

The mark consumer market is chiefly segmented into 3 based on quality of apparels

Purpleposh will chiefly concentrate on constructing its concern taking tier 2 and 3 into consideration. The grade 3 had a niche market which is turning really fast and has outstripped the value sector in 2007. The trade names considered under tier 2 and 3 require a big proviso for providers in future that will non merely supply the needed quality but besides at an effectual monetary value. Tier 2 and 3 mentioned in the tabular array purpose provide a batch of contracts for premium garments in future.

Perceptual map of UK dress market

Perceptual map of different trade names in UK

Perceptual map of different exporters and distributers with clear placement of PurplrPosh

The perceptual map below shows where the purpleposh ‘s rivals would stand based on the quality of stuff and monetary value. Purpleposh is non traveling to vie with the big exporters from India because Purpleposh will be aiming the niche premium market with less competition from exporters ( Although it ‘s besides true to the fact that the large exporters will offer a broad scope of samples excessively which ca n’t be ignored ) . Most little exporters supply chiefly to the 1st and the 2nd quarter-circle of the map instead than the 3rd and 4th quarter-circle. The exporters chiefly gain through volume of contracts from the discount houses. Many retail merchants in the 3rd and 4th quarter-circle may bear down larger mark-up for the garments but will pay small to the exporters.

Potential new entrants

Purpleposh really good recognize that the bing exporters both large and little are non the merely menace to the concern, but as purpleposh will turn there may be new entrants in the export market. Even though the authorities policies are favorable at this minute along with the presence of INCOTERMS ( International term for export duties ) to smoothen the operation of export import concern, but in malice of this there can be possible alterations in authorities policies. So the company understands the necessity of delivering of highest quality non merely in merchandises but besides in services to both retail merchants and distributers ( importers ) , with a position to diversify the concern to European markets in future to prolong any competitory advantage.

The bargaining power of retail merchants and distributers

In the B2B concern Purpleposh has 3 types of clients. Therefore it is truly of import for the company to listen and fulfill all of them up to a threshold point as they finally hold the concern growing power. Although the distributers require specialist design but they will merely be paying the sum what they feel profitable for them, whereas on the other manus the direct retail merchants and manner dress shops craves for highest quality with an first-class supply concatenation and services but with a bargained border better than provided by the distributers / agents.

Average market monetary value

Quoted monetary value ( 20 % excess for dialogue )

Bargained monetary value ( non less than )





Manner dress shops




Distributors/ agents




* Monetary values are taken from primary and secondary informations collected

Apparel import pricing statistics

Purpleposh ‘s market research

Purpleposh has conducted a market research with 50 adult females in the age scope of 20 – 50 old ages, around 20 manner dress shops and 5 retail merchants. The chief focal point of the research was to specifically place the cardinal client demands, their manner tendencies, purchasing behavior and besides to cognize about the specific demand of the manner dress shops and retail merchants with approx cognition of the fringy monetary value.

( Note: transcript of the questionnaire are attached in the appendix )

Basic concern development theoretical account of Purple posh

The one-year planning rhythm for concern development


Other countries of probe

Purplrposh is besides in treatment with ‘All India Exporters Chamber ‘ and ‘Calcutta Export Promotion Council ‘ to measure that whether Purpleposh vesture is eligible for any subsidy or grants. At this phase at that place has merely been conversation traveling on and nil has been agreed.


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