A PROJECT ON

RDS FASHIONS INDIA

FOR PROFESSOR
RA1ESH VYAS
INTERNATIONAL MARKETING


SUBMITTED BY

TAHAA LOKHANDWALA - 105
VARUN PATIL - 109

Rizvi Institute of Management Studies and Research

MMS
MARKETING
2010-2012




OVERVIEW OF GARNMENT EXPORT INDISTRY
Ready-made garments account Ior approximately 45 oI India's total textile exports. They
represent value added and less import sub sector. India's thrust into readymade garment
production started in the early 80s in the wake oI the liberalization, received a big impetus during
economic reIorms in the early 90's and during the last two decades, has moved to the Tenth
position, in the World's export oI readymade garments.
Readymade garments are India`s leading export products and achieved rapid growth in the late
1980s and the Iirst halI oI the 1990s. However, India`s share oI world readymade garments
exports has not risen since 1994. The immediate cause is apparently the slowdown in the import
growth oI India`s major markets, namely, the United States and the EU.
The export oI readymade garments, which was to the tune oI 253.6 million pieces, valued at US$
826.5 million during January-February 2002 has increase in quantitative terms to 306.1 million
pieces, valued at US$ 1137.9 million, up by 20.07 in quantity and by 37.68 in value terms,
during January-February 2003, when compared with the same period last year.
The USA, EU Member States, U.A.E., Japan, Saudi Arabia, Canada, Hong Kong, Switzerland
and Australia have been the major importing countries oI our Indian ready-made garments. In
India, Ludhiana, Tripura, Delhi, Bangalore, Mumbai and Chennai are all remarkably unique and
dynamic centers oI production.
India is at present a niche player in the low-value market segment based on cotton Iabrics and Ior
seasonal and Iashion garments. This reIlects India's comparative advantage in cotton cloth and its
Ilexibility advantage in meeting small orders. With the targets oI enhancing quality, establishing
new market niches, and moving up the value chain, the strategy should be concentrated on the
restructuring oI the production base.


RDS FASHIONS INDIA
R. S. D. Fashions is one oI the leading manuIacturer and exporter oI 100 Cotton Knitted
Hosiery Readymade Garments in various types oI colors, prints & embroideries. R. S. D.
Fashions` main products are Night Wears, Outer Wears, Shirts, Blouses, Pants, Tops, Shorts and
so on in men's, ladies` and children`s in all group only in knits. Since its inception in 1992, it has
been endeavouring to get undisputed position in its sphere oI operation. As one oI the leading
ManuIacturers, Exporters and Wholesale Suppliers, it has carved a niche Ior itselI in its sphere oI
operation in the global market. Its products possess high quality standards Ior international
acceptance.
Nature oI company partnership
Production capacity 20,00,000 Pieces / Month
Year Estd 1992
No. OI Employees 850
Export Market Europe
Brand Name In Extenso, First Price
Main Business Area garment manuIacturer

Business model
1. Email product/price portIolios it wholesale buyers in Europe 2 m prior to a season
2. Order RM according to past records and projections
3. ConIorm orders Irom buyers
4. Produce the orders
5. Packaging and transportation to JNPT Mumbai
BUSINESS MODEL OF RDS FASHIONS INDIA
Design / Sketch:
In the garment manuIacturing the Iirst step is designing the sketch Ior the dresses that have to be
prepared. For this purpose the designer Iirst draw several rough sketches in the sketch book. The
designer does not go Ior details at this moment but he rather let his creativity Ilow on the paper
and he draws many sketches. Later these sketches are analyzed by a panel oI designers. They
Iinally select Iew out oI them. These Iew sketches are rendered in detail separately or in the Iorm
oI a single collection. The designer also draws working drawings along with the sketch. Working
drawings are Ilat drawing oI the sketch and it help pattern maker in understanding the patterns
involved in the construction.
Pattern Design:
The pattern maker now develop Iirst pattern Ior the designsin any one standard size. This is made
by pattern draIting method and the purpose oI making this pattern is to create the sample garment
Ior test Iit.
Sample Making:
The Iirst patterns are sent to the sewing unit Ior assembling them into garment. This is usually
stitched on calico or muslin which is an inIerior quality oI Iabric and it reduces cost. This sample
is constructed to analyze the pattern Iit and design too. AIter the sample garment is stitched it is
reviewed by a panel oI designers, pattern makers and sewing specialists. II any changes have to
be made they are made at this time.
Production Pattern:
The pattern design is now taken Ior creating the production patterns. The production pattern is
one which will be used Ior huge production oI garments. The pattern maker makes the patterns
on standard pattern making paper. These papers are made-up oI various grades. The most
important component, the tissue paper pattern, is made Irom the lightest and thinnest paper
commercially available (it is not made at the pattern companies). It is called 7.5 lb (3.4 kg) basis
paper, meaning that a ream oI it (500 sheets) only weighs 7.5 lb (3.4 kg).
Garment patterns can be constructed by two means: manual method, CAD/CAM method. Today
many companies have developed CAD/CAM because oI the ease oI designing patterns, Iluency
and precision involved which cannot be guaranteed with the manual method. Investing once into
the CAD/CAM unit is worth in itselI. Many buyers around the world preIer manuIacturers who
are using CAD/CAM methods. The production patterns created in CAD/CAM can be stored
easily and they can be modiIied at any point oI time.
A garment sewing pattern or garment Iabric & patterns draIt is developed by calculating, taking
account oI the Iollowing measurements: -
1. Direct Sample.
2. SpeciIication Sheet/ Measurement Chart.
3. Actual body size measurements.
4. Ease Allowances.
5. Sewing Allowance.
These allowances are diIIerent Ior diIIerent type oI Iabrics and patterns.
Grading
The purpose oI grading is to create patterns in diIIerent standard sizes. Grading a pattern is really
scaling a pattern up or down in order to adjust it Ior multiple sizes. Pattern sizes can be large,
medium and small or else there are standard patterns oI size 10, 12, 14, 16 and so on Ior diIIerent
Iigure and statures sizes. This is generally how we get S M L XL XXL sizing. Pattern grading by
manual method is a cumbersome task because the grader has to alter the pattern on each and
every point Irom armhole, to neckline, sleeve cap and wrist etc. by using CAD it is much easier
and Iaster.
Marker Making:
The measuring department determines the Iabric yardage needed Ior each style and size oI
garment. Computer soItware helps the technicians create the optimum Iabric layout to suggest so
Iabric can be used eIIiciently. Markers, made in accordance to the patterns are attached to the
Iabric with the help oI adhesive stripping or staples. Markers are laid in such a way so that
minimum possible Iabric gets wasted during cutting operation. AIter marking the garment
manuIacturer will get the idea oI how much Iabric he has to order in advance Ior the construction
oI garments. ThereIore careIul execution is important in this step.
Computer marking is done on speciallized soItwares. In computerized marking there is no need
oI large paper sheets Ior calculating the yardage, in Iact, mathematical calculations are made
instead to know how much Iabric is required.
Spreading:
With the help oI spreading machines, Iabric is stacked on one another in reaches or lays that may
go over 100 It (30.5 m) long and hundreds oI plies (Iabric pieces) thick.
Cutting:
The Iabric is then cut with the help oI cloth cutting machines suitable Ior the type oI the cloth.
These can be band cutters having similar work method like that oI band saws; cutters having
rotary blades; machines having reciprocal blades which saw up and down; die clickers similar to
die or punch press; or computerized machines that use either blades or laser beams to cut the
Iabric in desired shapes.
Sorting/Bundling:
The sorter sorts the patterns according to size and design and makes bundles oI them. This step
requires much precision because making bundles oI mismatched patterns can create severe
problems. On each bundle there are speciIications oI the style size and the marker too is attached
with it.
Sewing/Assembling:
The sorted bundles oI Iabrics are now ready to be stitched. Large garment manuIacturers have
their own sewing units other use to give the Iabrics on contract to other contractors. Stitching in-
house is preIerable because one can maintain quality control during the processing. On the other
hand iI contractors are hired keeping eye on quality is diIIicult unless the contactor is one who
precisely controls the process.
There are what is called sewing stations Ior sewing diIIerent parts oI the cut pieces. In this
workplace, there are many operators who perIorm a single operation. One operator may make
only straight seams, while another may make sleeve insets. Yet another two operators can sew
the waist seams, and make buttonholes. Various industrial sewing machines too have diIIerent
types oI stitches that they can make. These machines also have diIIerent conIiguration oI the
Irame. Some machines work sequentially and Ieed their Iinished step directly into the next
machine, while the gang machines have multiple machines perIorming the same operation
supervised by a single operator. All these Iactors decide what parts oI a garment can be sewn at
that station. Finally, the sewn parts oI the garment, such as sleeves or pant legs, are assembled
together to give the Iinal Iorm to the clothing.
Inspection:
Open seams, wrong stitching techniques, non- matching threads, and missing stitches, improper
creasing oI the garment, erroneous thread tension and raw edges are some oI the sewing deIects
which can aIIect the garment quality adversely. During processing the quality control section
needs to check each prepared article against these deIects.
Pressing/ Finishing:
The next operations are those oI Iinishing and/or decorating. Molding may be done to change the
Iinished surIace oI the garment by applying pressure, heat, moisture, or certain other
combination. Pressing, pleating and creasing are the basic molding processes. Creasing is mostly
done beIore other Iinishing processes like that oI stitching a cuII. Creasing is also done beIore
decorating the garment with something like a pocket, appliques, embroidered emblems etc.
Vertical and Iorm presses is automated machines. PerIorm simple pressing operations, such as
touching up wrinkles in knit shirts, around embroidery and snaps, and at diIIicult-to-reach places
on garments.
Final Inspection:
For the textile and apparel industry, product quality is calculated in terms oI quality and standard
oI Iibers, yarns, Iabric construction, color Iastness, designs and the Iinal Iinished garments.
Quality control in terms oI garment manuIacturing, pre-sales and posts sales service, delivery,
pricing, etc are essential Ior any garment manuIacturer, trader or exporter. Certain quality related
problems, oIten seen in garment manuIacturing like sewing, color, sizing, or garment deIects
should never be over looked.
Sewing defects
Open seams, wrong stitching techniques, non- matching threads, missing stitches, improper
creasing oI the garment, erroneous thread tension and raw edges are some oI the sewing deIects
which can aIIect the garment quality adversely.
Color defects
Variation oI color between the sample and the Iinal garment, wrong color combinations and
mismatching dyes should always be avoided.
Sizing defects
Wrong gradation oI sizes, diIIerence in measurement oI various parts oI a garment like sleeves oI
XL size Ior body oI L size garment can deteriorate the garments beyond repair.
Garment defects
Broken or deIective buttons, snaps, stitches, diIIerent shades within the same garment, dropped
stitches, exposed notches and raw edges, Iabric deIects, holes, Iaulty zippers, loose or hanging
sewing threads, misaligned buttons and holes, missing buttons, needle cuts or chews, pulled or
loose yarn, stains, unIinished buttonhole, short zippers, inappropriate trimmings etc. all can lead
to the end oI a brand name even beIore its establishment.
Packing:
The Iinished garments are Iinally sorted on the basis oI design and size and packed to send Ior
distribution to the retail outlets.
CAD/CAM:
CAD and CAM are two technologies that have made prominent changes in the way garment
manuIacturing was done in previous eras. Today all large garment manuIacturing companies
have developed CAD/CAM system to do the process oI garment manuIacturing. CAD is an
abbreviation Ior computer-aided design and CAM Ior computer-aided machine. CAD/CAM is
computer soItware that controls the production oI garments. In CAD the designer designs the
garments by using any suitable soItware like Adobe Photoshop, Adobe Illustrator, Corel Draw
etc and in CAM the cutters, sewers, graders and markers control the process oI development.
The designer creates 2-D or 3-D model oI design in CAD and CAM as a soItware numerically
controls the machines that generates the production.
There are several advantages oI CAD/CAM over manual method oI designing and production oI
garments:
O The expense and time is reduced in a considerable manner when compared to the laborious
manual work oI designing.
O Designing can be done Irom anywhere as the designers are able to control the process Irom
remote locations as well.
O The data can be easily stored, transmitted, and transported through computer Iiles.
O Digital swatches can be saved on Iloppy disks, zip disks, CD-ROM or hard drive thus
saving space. Moreover they can be easily organized Ior Iast and easy retrieval.
O The designs can be easily customized and personalized as corrections and editing can be
done at any time without signiIicant delays or cost increases.
O The designers don't need to produce swatches all the time as they can now see how a
particular Iabric or garment looks in diIIerent colors and shapes on computer.

MANUFACTURING

PACKAGING




Potters Iive Iorce on the readymade garments industry



The potters Iive Iorce model is in important tool to understanding the industry dynamics

Industry rivalry
In the readymade garment export industry there is t tough competition .This competition is
manly in the export trade in the export to the western regions such as USA and the European
union countries .there are hundreds oI manuIactures in the country who export readymade
garments to the developed world these manuIactures ranges Irom small scale to large scale
manuIacture .the large scale manuIacture have an advantage over the smaller manuIacture as
they export huge volumes and have economies oI scale in both manuIacturing and in exporting .
More over the importers preIer to place orders with the large manuIactures as they are perceived
to be more reliable and have better quality oI product.
The manuIactures not only Iace treat Irom within the country but also Irom outside the country
Irom manuIactures Irom country such as Bangladesh, and countries Irom the Asia paciIic region.
these country have low cost oI production and low labour cost this gives them a competitive
advantage in the international market as the garment import market is a price sensitive market
and the imputers are on the lookout Ior cheap imports to keep the Iinal selling cost low and
proIits high.


Potential entrants
The readymade garment industry is growing at an average growth rate oI 25 to 30 . The export
sector the export oI garments is the Iastest growing sub sector this has made a lucrucative
business to be in. the structure oI the industry in India is such that most oI the manuIacturing is
done in the non organised sector .there are limited barriers to the entries and exist, hence there
are more and more players entering in the market .This has resulted in a cluttered market with
intense competition.
The government has in recent times relaxed the norms Ior the export oI Iinished products which
has encouraged the entry oI new manuIactures in this business. In the international sinario there
are new countries such as Bangladesh whose governments are encouraging the exports to the
developed world.

Supplier`s power-
The suppliers play a very important role in the manuIacturing oI any Iinished product. In the
readymade garments the Iabric is the main raw material which is used in the manuIacturing
process. In the industry the cloth Iorms around 75 oI the manuIacturing cost oI the Iinished
product. This makes the producers oI the Iinished garments largely dependent on the suppliers
oI cloth Ior the production. The production oI yarn requires a lot oI investment this makes it
diIIicult Ior backward integration and only the major producers and exporters can produce their
own cloth. The smaller manuIacture generally relies on the supply Irom outside their company.
In the export business, especially export to the European Union and to the USA quality plays a
very important role .while exporting to these countries the exporter has to maintain certain
standards oI quality. This puts a lot oI pressure on the exporter to keep and stay with a single
supplier as regular switching oI suppliers will aIIect the quality oI the Iinished product.
Treats oI substitutes-
These days there is a shiIt in the trend and people in the west are moving to products which are
indigenously produced. The people in the European Union are also demanding garments which
are organic in nature which are Iree Irom chemical dyes. In the Iuture this trend is only going to
increase as people are becoming more envirmental oriented. As India is a developing country it
is expensive Ior the manuIactures to adapt and develop such technology which will enable them
to produce organic garments.
Due to the economy`s slowdown in the western countries there has been a Iall in the demand Ior
imported goods in these countries. The government in the developed countries are promoting the
production oI Iinished goods in their country as it will help generate jobs in the importing
country. This has put pressure in the manuIactures in India as they Iace competition Irom
manuIactures in the importing country. These manuIactures tend to now the market well and
they also have the support oI the governments oI the importing countries who give them priority
over the exporters.
Buyer`s power-
The buyer has the upper hand in any Iorm oI business. In the garments export business the
importers have the last word in the business transaction. This is mainly because oI two reasons
the Iirst one is the reason that the importers have a lot oI options in a lot oI countries. They have
an option oI importing Irom countries which produce better quality oI product at a competitive
price. The second region is that the importers who are wholesalers buy in bulk ask Ior a huge
discount Irom the exporters this compiles the manuIactures to work on a tight margins. The
importers also ask Ior longer credit periods Irom the manuIactures.
The buyers are the king in such highly competitive market and he is the opinion maker. The
seller on the other hand is the opinion taker .The importer is also protested in the importing
country by the laws oI that land. The importer also reserves the right to return the goods to the
exporter without payment iI the goods do not meet the standards oI the importer.

EXPORT MARKETING MIX FOR RDS FASHIONS INDIA


Product-
RDS Iashion manuIactures readymade garments in the Iollowing category such as men`s
women`s and children`s category. The company has the advantage oI having varity on its side
.the products at RDS Iashion are made oI the Iinest materials this gives the company a edge over
its competitors in the country. As the Iinished product is sold in the European market the
company has a competitive advantage in the international market over its rivals. The company
comes up new designs and range oI products in every season. These product designs are made
with the Iinal consumers in the mind who are European. The major product categories which are
exported are the winter wear in the entire product category.
As the garments that are produced are readymade in nature the sizes are in the European Iorms.
The company makes garments which are region speciIic in nature.
Place