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STRATEGY ANALYSIS OF MADURA FASHION & LIFESTYLE

Madura Fashion & Lifestyle a subsidy of Birla Nuvo Ltd, is one of lhe
fashion retailers In India. Indian apparel industry valued around 200000 crore in 2012
and It Is expected lo increaseover 400000crore. Apparel and clothing contributes
around 4% of lhe Indian households consumption every month. Due to increase of
base in middle class Income group factors such as Increase In purchasing power,
spending mental[y, craze towards foreign brands showed limelight on apparel retailing
industry. The retail sector In India accounts for 22 per cent of U1e 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 filth mosl favorable destination for international
retailers, outpacing lhe 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 fl of
retail space, and is present in more than 1,300 premium mulll-brand stores and
300+ departmental stores. The company's brard portfolio includes product lines
that range from affordable and mass-market

10

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 Fa.shion, 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

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l'- Madura Fashion & Lifestyle marked Its foray Into the luxury
business

In India by launching

mono brand

the quintessential British men's luxury clothing

and accessories brand Hackett London through a joint venture w~h the UK firm.

l'- Recently, the company launched Trendln.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 or brands

which serves customers of all brackets. Exhibit 1 clearly

shows the positioning

of

different brands.
Exhibit 1: Posttlonfngof dffferentbrands

Brand Name

Demographics

Positioning

Louis PhiHppe

Male 25-45 years

It is a melange of comfort,
pertection and elegance.

Van Heusan

Male 25-45 years

Position Itself as a lifestyle

cum corporate wear.

Allen Solly

MalefFemaJe 22-40 years

It broadens !he meaning of

Fridays.

Peter England

Male 2<M'l2 years

Beginning of good things Is

tha tagllne and pictured as
an honest brand lmagl!'.

The collective

Age 25.34 accounts 62%

f>osltloned

as

an

brand

tor

35-44 acoounts 20%

aspirational

45-50 accounts 18%

diS!)erning Indian.

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PORTERS FIVE FORCES ANALYSIS:

Today, fashion retail In India
avalanche

Is highly competitive and there has been an

of global lashion brands making an entry into the Indian marketplace.

The margins on a private label are higher

lor retailers,

as they are able to control

the sourcing and manulacturing costs of these apparels at the back-end, and
marketing through their department stores on the front-end.
Exhibit 2: Five force analysis

Factors
Power or suppliers

Key elements
I. Very few

suppliers

who

have

economies or scale.

ii.

Substanllai decrease In suppliers ol

merchandise.

P.ower of buyers

1.

Product d~terentlatlon.

IL

Retalle~s service.

HI.

Growing value consciousness.

I.

Rivalry

ii.

Differential pricing.
or

Acceptance

Information

technology.

New entrant

HI.

Improved supply chain.

Iv.

Brand building through values.

I.

ii.
Substitutes

I.

FDI entry In multi branding retailing.

Proliferation or private labels.
Alternative

retail

landscape

llke

direct seHing. E-tailing.

ii.

ShWt towards other tormats such as

cash & carry, hypermarket, dli;count
stores.

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Exhlbll 3: Firm's Dlwrsllication

Aditya Birla groups owns Grasim lndu stries 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.

Established In 1988 by Madura coats limited, Madura Fashion &

Lifestyle has its origin in the erstwhile coats Viyelle Pie, Europe's largest
clothing supplier. In December 1999 Aditya Birla Nuvo acquired Madura
Fashion & Lifestyle to beccome au ndisputed leader in readymade
men.swear.

Madura Fashion & Ufestyl e has a nationwide reach through .a

large controlled presence of 1670 stores spanning around 4.11
million sq.ft. sesldes reaching customers through more than 4750
MBOs and departmental stores.

Exhibit 4: Market Share

Madura

F&L

Raymond Ltd

Arvindltd
a others

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Exhlbll 5: References
1. Aditya Blrla Nuvo "corporate presentation' December 2013.
2. Madura Fashion & Lifestyle Lid hlloi/www.maduralnl.con\lindex.html.
3. 'The future of fashion apparel in India" - Texcon'12
hllp:t/www.slideshare.net1WazirAdvisorshhe-future-oflashion-aooarel-in-india.
4. "Fashion Retail: A State of Grace" by Images Business of Fashion.
hllp'l/www.indiaretaillng.com,qashlonlarticledetall.aspx?mcatid~ 1 &catideS& aid-9678.
5. "Innovation 10 Shape the Future of the Fashion World" by Images Business or
Fashion. hllp:/lwww.lndiaretailing.con\lfashionfarticledetall.aspx?mcatid1 &ca:tids&aid9614.
6. "Indian apparel Market: Current status and Future outlook by Wazir Ma.nagement
consullants at Indian Textile Summit, Mumbai- 27" September 2012.
7. "A research report on a.ssement ol competition In apparel retail industry in India"
by Amity University. Nolda to Compet~ion Commission of India.
8. h!lp:l/www.maduralnl.con\lindex.html.
9. hllp://www.adityabirla.com/home
t 0. http:l/www.indiaretailing.com/I ashionldelault. aspx

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