Allen Solly - Entering the Indian Women's Western Wear Market

            
 
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Case Details:

Case Code : MKTG042
Case Length : 11 Pages
Period : 2002
Pub Date : 2002
Teaching Note :Not Available
Organization : Madura Garments
Industry : Readymade Garments
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"Women have too many different kinds of clothing. They want exclusive outfits and would not buy mass produced garments. They just want the look and do not care about the label. It is too risky. It is a headache. It just would not work."

- Excerpt from a news article on www.BharatTextile.com, January 11, 2002.

"We feel there is a definite potential to expand the market by offering a range of western women's wear, properly styled and cut according to body types, under the Allen Solly brand name. That will complete the whole lifestyle package - we will have both Allen Solly Men's and Women's wear, and have a strong retail line-up for both."

- Vikram Rao, Director, Indian Rayon, in October 2002.

Wooing Indian Women

In September 2002, leading Indian apparel company, Madura Garments (Madura, Refer Exhibit I for a brief profile of the company) launched a line of readymade women's western wear under the brand name 'Allen Solly Women's Wear.' The launch was backed by advertisements in the national print and outdoor media.

The move attracted attention for two reasons. First, this was the first-ever nationwide exercise by any company to offer readymade Western wear for women in India on this large a scale.

Second, Madura seemed to have taken a risk by trying to extend its hitherto 'exclusively for men' brand, Allen Solly, to the women's segment.

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The nationwide launch was undertaken following the brand's impressive performance during the test-marketing phase in the city of Bangalore (Karnataka) in December 2001. Through Allen Solly Women's Wear, Madura formally extended the concept of Friday Dressing1 to women all over the country.

The scope of operations and marketing support was what set Allen Solly apart from the earlier entrants in the branded women's wear segment, Indus League2 and Raymond's.3

Indus League had launched women's wear under the 'Scullers' range, while Raymond's had entered the segment with its designer range 'Be.' By late-2002, many other brands, such as Benetton, Mango, Wills Sports and Blackberrys, had either launched (or were planning to launch) exclusive women's wear in the country. This rush to enter the segment was not difficult to understand, considering the fact that the market was almost completely in the hands of the unorganized sector and had very few branded players.

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1] A concept that originated in the US, Friday Dressing refers to the trend of allowing employees to dress in casuals instead of formal wear on Fridays.

2] A Bangalore-based company set up with venture funding from Draper International, USA, Dalmia Cements, India and ICICI Ventures, India. Formed by the former employees of Madura Garments, it owned popular brands such as Indigo Nation, Scullers and Ironwood.

3] Raymond's is a leading textile company in India that produces and markets a wide range of pure wool and wool-blended fabric, blankets, shawls and apparel accessories. Major Raymond textile and apparel brands include The Lineage Collection, Teral, Park Avenues, Parx and Manzoni.

 

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