Pantaloons Retail (India) Limited - The Indian Retailing Giant

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Case Details:

Case Code : MKTG094
Case Length : 17 Pages
Period : 1998-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Pantaloons Retail (India) Ltd.
Retail ing
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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Charging Ahead Contd...

He was credited with being the major force behind PRIL's other major hypermarket chain formats like Pantaloons, Big Bazaars and Food Bazaars. Emphasizing the core value of 'Indianness' since its inception in 1987 and popularising the concept of a hypermarket, PRIL evolved to be a front-runner in the Indian retail arena by the early 21st century.

Background Note

The organized retail industry in India did not evolve till the early 1990s. Until then, the industry was dominated by the un-organized sector. It was a sellers market, with a limited number of brands, and little choice available to customers.

Lack of trained manpower, tax laws and government regulations all discouraged the growth of organized retailing in India during that period. Lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

This allowed the un-organized sector to rule the Indian retailing industry. It was during this time that the foundation of PRIL was laid by Biyani. Biyani was a commerce graduate with a post-graduate diploma in marketing. After spending five years in managing his family business of trading textile and yarn, he started with apparel manufacturing in the mid-1980s.

In 1987, he launched Manz Wear Pvt. Ltd. for making the country's first readymade trousers with 'Pantaloon' as the brand name. In 1989, the company launched its first jeans brand, 'Bare.'

On September 20, 1991, Manz Wear Pvt. Ltd., went public and on September 25, 1992, it changed its name to 'Pantaloon Fashions (India) Limited' (PFIL).

In 1993, PFIL launched its first formal shirt brand, 'John Miller,' and began distribution of its branded garments through multi- brand retail outlets across India. It also established a chain of franchised Pantaloon outlets, called 'Pantaloon Shoppe,' to market its readymade trousers.

The first Pantaloon Shoppe was established in 1993 and by 1997, there were 60 such "shoppes" in various parts of India. Though PFIL's readymade garments offered good quality at competitive prices, its business suffered mainly because of high distribution costs and low margins which resulted from the presence of intermediaries like multi-brand retailers and franchisees between the company and its end customers...

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