Aditya Birla Fashion and Retail

About ABFRL

• Aditya Birla Fashion Retail Segment is in the fashion industry

• Emerged out of the consolidation of the branded apparel business of Madura
Fashion and Pantaloons Fashion and Retail
• It has 18000 multi brand outlets with 5000+ point of sales in department
stores across India
 Consumer Profile

• Urban – Casual, Laid back, Urban Outfitters

• Femme – Sweet, Floral

• Young Contemporary – Modern, Contemporary, Fashionable

• Trendy – Based on trends and seasonality

 Economic Situation and impact on Industry

• Fashion Industry will continue to grow at 3 to 4% in 2020 according to McKinsey Global fashion index
before corona impact
• With the onset of corona, the average market capitalization of apparel, fashion and luxury players
dropped almost 40% till March 2020
• The industry could regain positive growth of 2 to 4% in 2021
• The corona virus also presents a chance for the fashion industry to reshape its value chain
• Digital acceleration, discounting, industry consolidation and corporate innovation will be prioritized once
the crisis subsides
• The five main themes would be survival, discounting, innovation, digital escalation and Darwinian
shakeout after the crisis
 Porter’s Five Forces

Bargaining Power of Bargaining Power of Threat from New Threat of Substitutes

Suppliers Buyers or Customers Entrants Product Competitive Rivalry

LOW HIGH Low HIGH HIGH

• High Number of • High Competition • High investment • From Industry itself • Cut Throat
suppliers • Discounts required • Immense Competition
• Suppliers from 3RD • Technology • Brand Clutter Competition • Similar Product
World countries • Increased customer • High cost of Offering
• Financial power of knowledge distribution • Brand Loyalty
Brands • Significant • Brand Image
Differentiation • Discounts
Required
SWOT analysis of Forever 21 1
Strengths
1. Staying in Trend
2. Something new everyday
3. Customer Savvy
4. Affordable
Weaknesses
2

1. Low International Penetration

2. Similarity of Products
3. Centralized decision making
4. Excessive focus on Teens Opportunities
3 1. Increasing Disposable Income of
Consumers
2. Personalized Clothing
3. Fashion changes very soon and
customers are ready to adopt new trend
Threats
4
1. Coronavirus Crisis has closed stores
2. Economic Crisis
3. External competition and price wars
decrease the switching cost for customer
THANK YOU