Industry Overview

The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry.

In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favourable and the emerging technologies facilitating operations.

A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. Visual merchandising today forms a critical element of retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walk-ins, there is also in-store decor that is designed to enhance the customers comfort and convenience while shopping and overall, offer a superior shopping experience. Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. Shops may be on residential streets, shopping streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers
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from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of nonshop retailing. Shopping generally refers to the act of buying products. Sometimes this is done to obtain necessities such as food and clothing; sometimes it is done as a recreational activity. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. One of Indias major retailers with presence in following two segments: Lifestyle Retailing - Pantaloons, Central, Fashion Station, aLL, MeLa. Value Retailing - Big Bazaar, Food Bazaar. Retailing is the worlds largest private industry Retail is the worlds largest private industry with global retail sales of roughly USD 8 trillion. Retailing is also one of the biggest contributors to the Gross Domestic Product (GDP) of most countries and also one of the biggest employers. (Source CII McKinsey Report titled Retailing in India, the Emerging Revolution) In India, however, the retail sector has seen a high level of fragmentation with a large share held by unorganized players. Indian Retail Industry India has a large number of retail enterprises. With close to 12 million retail outlets India has one of the highest retail densities in the world. In terms of the structure, the industry is fragmented and predominantly consists of independent, owner-managed shops. The retail businesses include a variety
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of traditional retail formats, such as "kirana" stores which stock basic household necessities (including food products), street markets-regular markets held at fixed centres retailing food and general merchandise items, street vendors-mobile retailers essentially selling perishable food itemsfruits, vegetables etc. and small non specialized retailers. Growth of Organized Retail in India According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, India retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010. According to a report by Northbride Capita, the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. It can be mentioned here that, the share of organized sector in 2007 was 7.5% of the total retail market. Drivers of Growth in Organized Retailing We believe that India is experiencing certain socio-demographic changes which are furthering the growth in organized retail while enablers such as availability of quality real estate are hastening the pace of this transformation.

Rising income levels We believe increasing household income has led to a substantial change in the profile of the Indian consumer. A larger number of households are
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getting added to the consuming class with growth in income levels. In the chart provided below the profile of the Climbers, Consuming and Very Rich consumers class is biased towards self indulgent consumption patterns. Rich (Above Rs. 215,000) Climbers (Rs. 22,000-45,000) Destitute (Less than Rs.16, 000) The consuming class and the climbers are expected to increase from 120.8 million households in 2001-02 to 157.2 million households in 200607 (source: The Marketing White book 2003-04, brought out by Business world) this large base of households with growing disposable income is expected to drive demand for organized retail. Of this, 56% (44.8 million households) is expected to be concentrated in urban India. Young population with high disposable income India has the lowest median age of 24, for its over 1,000 million strong population, among the other highly populous countries Thus India has the largest young population in terms of sheer size and we believe this young segment is the major driver of consumption as they have the ability (disposable income) and willingness (consumer confidence) to spend. Most of such upwardly mobile consumers have little personal time and they seek greater variety and availability of items under a single roof and give highest preference to convenience, which is the basic proposition of modern retailing formats. The brand-conscious young population forms the largest segment of demand
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Consuming (Rs 45,000-215,000) Aspirants (Rs. 16,000-22,000)

for the majority of retailers.

Changing age demographics in India (1)Availability of brands and merchandise Consumerism and brand proliferation has been another enabler for organized retailing in India. Most of the worlds leading brands are now present in India. Brands like LOreal, E spirit, Louis Vienton, Marks & Spencer, Tommy Hilfiger, Louis Philippe, Levis, Pepe, Lee, Arrow, Dockers, Red Tape, Clarence, Hugo Boss, Tiffany, Bulgari, Ecco,

Chambor, Revlon, Philips, Corel, Magpie, Nike, Reebok, Parker, Ray Ban, Lego, Mattel are now present in India. (2)Media Proliferation Another factor that accelerated the concept of organized retail is media proliferation. The resultant exposure to advertisements and brand promotions across product categories has led to a growing consumer spending across a wide range of product categories.

(3)Availability of quality real estate Availability of quality real estate has been one of the main constraints for development of organized retail in India. In the past, negative yield on leased property, lack of bank funding and the unorganized property market resulted in dearth of quality retail space in the country. The spread between yield on property and the financing cost has turned positive with the fall in interest rates. Attractive yields on investments have resulted in sharp increase in property development. In addition, the various States governments have taken proactive steps to release large tracts of land for commercial development. Growth of property funds and permission for Real Estate Investment Trusts (REITs) to be set up will further help create a secondary market for real estate in the country. (4)Enhanced Funding Options Supply side changes such as consumer finance help in shaping a markets buying power. Consumer credit, especially through credit cards, has been growing healthily year on year. Financial card usage in India has witnessed tremendous growth with volume transactions experiencing greatest growth. (5)Implementation of VAT to reduce cost and complexity Differential sales tax rates across states and the incidence of multi point local levies added to costs and complexity, and have hampered aggregation of sourcing. The implementation of Value Added Tax (VAT) is also expected to narrow down the cost advantage that unorganized retailers enjoy over the organized ones. (6)Inbound tourists, shopping
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There is a large NRI population. Given that international lifestyle brands are readily available in their country of migration, this population shops for similar quality merchandise at lower prices in India on their visits here. Additionally, inbound tourists visiting India and shopping here seek similar products at lower costs in a similar environment. (7)Impact of Globalization Globalization has removed trade barriers and promoted consumerism. Over the last decade, there has been an increase in branded goods both domestic and international in the Indian market across product categories. Both width and depth of product offering to the Indian consumers is increasing.

Types of Retail Outlets:A marketplace is a location where goods and services are exchanged. The traditional market square is a city square where traders set up stalls and buyers browse the merchandise. This kind of market is very old, and countless such markets are still in operation around the whole world. In some parts of the world, the retail business is still dominated by small family-run stores, but this market is increasingly being taken over by large retail chains.

Company Overview
Pantaloon Retail (Pantaloon), a part of the Future Group, is a leading Indian operator of multiple retail formats. The company's leading formats include Pantaloon, a chain of fashion outlets; Big Bazaar, a hypermarket chain; Food Bazaar, a supermarket chain; and Central, a chain of malls. Pantaloon has operations across 73 cities in India. It is headquartered in Mumbai, India and employs about 33,500 people. The company recorded revenues of INR63, 477 million ($1,328.6 million) during the financial year ended June 2009 (FY2009), an increase of 25.6% over 2008. The operating profit of the company was INR63, 497.5 million ($1,329 million) in FY2009, an increase of 25.9% over 2008. The net profit was INR1, 405.8 million ($29.4 million) in FY2009, an increase of 11.6% over 2008.

KEY FACTS

Head Office

Pantaloon Retail (India) Ltd. Knowledge House Shyam Nagar Off Jogeshwari Vikhroli Link Road Jogeshwari East Mumbai 400 060 IND

Phone Fax Web Address Revenue / turnover (INR Mn) Financial Year End

91 22 3084 1300 91 22 6644 2222 http://www.pantaloon.com 63,477.0

June
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Employees

33,500

Pantaloon was incorporated as Manz Wear Private Limited in 1987. In the same year, the company launched Pantaloons trouser, India's first formal trouser brand. In 1991, Pantaloon launched BARE, the jeans brand. The company made its initial public offer in the following year. It also started Pantaloon Shoppe, a franchised menswear store across India in 1994. In the same year, Pantaloon initiated distribution of branded garments through multi-branded retail outlets throughout India. In 1995, it launched John Miller, the formal shirt brand. In 1997, Pantaloon launched a family store, Pantaloons, in Kolkata, India. In 2001, India's first hypermarket chain 'Big Bazaar' was launched. In the same year, 'Food Bazaar' was also launched. The company launched the 'Central' mall in Bangalore in 2004. In the following year, Pantaloon announced its plans of investing INR10 million ($0.2 million) in revamping IT infrastructure in the following three years. It entered into an alliance with SAP, a business software solutions provider, to implement its my SAP Business suite, SAP Advanced Planning Tool for Merchandise Planning and SAP Apparel and Footwear Solutions across the organization. In the same year, Pantaloon also launched aLL, a store that caters to plus-size market. The company's financial arm, Future Capital Holdings, launched the real estate funds Kshitij and Horizon, and the private equity fund In division in 2006. In the same year, Pantaloon launched multiple retail formats including Collection i, Furniture Bazaar, Shoe Factory, EZone and Depot. It entered a joint venture agreement with ETAM Group, a French retailer of women innerwear, to market ETAM products through a network of 40 outlets in 20 cities in India. The company also entered a joint venture with generally, an Italian insurance company, in 2006, to foray into the Indian insurance market. Pantaloon entered an agreement with Ruchi Soya Industries, a producer and supplier of edible oils,
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to expand its refined edible oil business in the same year. The company launched futurebazaar.com, its online retail store in 2007. Future Office, a subsidiary of the company, acquired the operations and management of Officedge, an online business to business office products company, and entered the office products market. Staples, a US based office products company, entered a joint venture with Future Office to establish 'Staples Future Office' for offering office products in India during 2007. In 2008, the company decided to make four of its business divisions, including Big Bazaar, Food Bazaar, Specialty Retail Business Activities and Property and Mall Management Division, into independent subsidiaries. In the same month, Pantaloon planned to invest INR3,000 million ($76.37 million) in a retail joint venture with National Textile Corporation (NTC). It also entered into a joint venture with United Arab Emirates-based Axiom Telecom to establish 750 new mobile phones stores in India. Pantaloon outsourced its IT operations across all its outlets to Wipro InfoTech, an IT and business transformation service provider. Also, the company's flagship format opened its first store in Guwahati. EZone, Pantaloons electronics specialty store, launched a unique EZone Concept Store, which would feature dedicated displays by numerous brands, instead of the conventional multi-brand, category wise displays. In Mumbai, the company opened its destination mall, Central, in Mumbai. Hometown, the company's retail store tied up with AQUA life, Italy's leading supplier of luxury bath products in 2008. Under the agreement AQUA lifes products would be available at all Home Town Stores. Hometown also entered an agreement with ARAN Cucine, Italy's modular kitchen maker, for the DENOVO range of Exclusive Italian kitchens in Hometown stores. The company's flagship format, Pantaloons, opened its first store in Nagpur and Big Bazaar was opened in Gwalior during the year. Also in 2008, Pantaloons subsidiary, Future Capital Holdings made an Initial Public Offering. Further, the company's
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hypermarket format, Big Bazaar crossed the 100-store mark and total operational retail space of the company crossed 10 million square feet mark in 2008. Pantaloon acquired the rural retail chain, Aadhar which was present in 65 rural locations. The company divested its holding in Alpha Future Airport Retail, a 50:50 joint venture company between Pantaloon and Alpha Group by the end of 2008. Due to the uncertain external economic environment, Pantaloon initiated various cost control measures and conducted scenario planning exercises in FY2008. These initiatives enhanced the efficiency and productivity of the company. In January 2009, the company's hypermarket format, Big Bazaar was launched in Zirakpur, a town of Mohali district and Tinsukhia, the business capital of Assam. Celio, the hi-fashion French mens apparel brand marketed by Pantaloon in India launched its exclusive store in Mumbai in March 2009. A range of intimate wear designed for the Indian woman was launched in Pantaloons and Central Stores in October 2009. Winner Sports, a wholly-owned subsidiary of Pantaloon entered an agreement with SKECHERS, a global leader in the lifestyle footwear industry to license and distribute SKECHERS footwear and apparel in India. In February 2010, Tata Teleservices in strategic partnership with Future Group launched new telecom Brand -T24- on GSM Platform.The alliance between the companies brings unique marketing concept of Retailer-Telco Partnership to Indiafor the first time. T24 services rollout is expected to begin in 2010. Pantaloon in association with Sachin Tendulkar co-created a brand, Sach and launched of Sach toothpaste in March 2010.

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BUSINESS DESCRIPTION Pantaloon Retail (Pantaloon or the company) operates multiple retail formats in both the value and lifestyle segments in India. It operates over 1000 stores across 73 cities in India, and occupies retail space of about 12 million square-feet. The company offers its products in various lines of businesses such as food, fashion, home and electronics, telecom and IT, general merchandise, leisure and entertainment, wellness and beauty, books and music. The company also offers products through its Internet retailing store futurebazaar.com. Pantaloon offers food products through retail formats such as Brew Bar, Cafe Bollywood, Food Bazaar, and Sports Bar. Brew Bar offers over 15 brands of domestic and imported beer. Brew Bar also offers snacks and set meals. Cafe Bollywood (Bollywood refers to the Indian film industry) is a fast food retail chain offering eateries in a Bollywood ambience. It offers Indian street food, burgers, pizzas, and juices. Food Bazaar is a chain of supermarkets which offers pre-packed commodities. Sports Bar is a concept bar that focuses on the world of sports. Sports Bar offers domestic and imported spirits, beers and wines. Pantaloon offers fashion related products under banners such as aLL, Big Bazaar, Blue Sky, Brand Factory, Celio, Central, Ethnicity, fashion@Big Bazaar, Lee Cooper Navaras, Pantaloons and Planet Sports. aLL is a fashion store for plus size men and women. It offers ready-to-wear fashionable clothes and accessories in western wear, Indo-western or ethnic wear in both formal and casual categories. Big Bazaar is a fashion and general merchandise hypermarket. It offers fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. Blue Sky stores offer branded and private label sunglasses and watches. Some of the private label watch brands which Blue Sky offers are Cube, Koenig, RIG, Lombard and UMM. Brand Factory operates a chain of discount stores that offer branded apparel for men, women, and infants along with accessories, cosmetics, footwear, sportswear,
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luggage, and home linen at discounted prices. These discount stores stock fashion brands such as Levis, Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor, Gini and Jony, amongst others. Celio, a market leader in men's ready to wear clothing in France, is retailed through selected stores of Pantaloons and Central in India. Central, the mall concept of Pantaloon, offer over 300 brands across categories such as apparel, footwear and accessories for women, men, children and infants, and the product ranges such as, music, books, coffee shops, food courts, super markets (food bazaar), fine dining restaurants, pubs and discotheques. Central also offers services such as travel, finance, investment, insurance, concert/cinema ticket booking and bill payments. Ethnicity is a concept store in India to offer everything Indian under one roof. Ethnicity stores sell merchandise for kids, fashion, costume and semi-precious jewelry, Indian ethnic homewares, and ethnic accessories. Fahion@Big Bazaar offers fashion apparel and accessories men, ladies, kids and infants at reasonable prices. Lee Cooper is a reputed international brand which is distributed through exclusive brand stores and large format stores such as Central and Pantaloons. Navaras is a jewelry store that offers branded jewelry in a hypermarket set-up. Pantaloons stores offers fashion products such as casual, ethnic, formal, party and sports wear for men, women and kids. Planet Sports is a sports and lifestyle specialty retail chain with extensive offerings for sportswear and equipment across all categories including running, tennis, training, golf, fitness, basketball, motor sports as well as other lifestyle products. In the general merchandise category, Pantaloons operates retail formats such as Big Bazaar, Big Bazaar Wholesale Club, Blue Sky, Brand Factory, Central, Navaras, Pantaloon and Shoe Factory. Big Bazaar is a retail store chain in a hypermarket format that offer fashion products, home furnishings, utensils, crockery, cutlery, and sports goods. Shoe Factory, a footwear retail store chain offers branded footwear
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and accessories to men, women and kids. Pantaloon has presence in the leisure and entertainment space through an affiliated company, Galaxy Entertainment. Pantaloon's F 123, a gaming and entertainment zone, offers a range of gaming options ranging from bowling, pool, interactive video games, bumper cars along with fun foods and services for junior and adult banqueting. The company also operates Bowling Co., a family entertainment centre, in Mumbai. In a joint venture with Blue Foods, Pantaloon operates food courts, fine dine specialty restaurants, thali restaurants, banquets and multiple kiosks with brands such as Copper Chimney, Bombay Blue, Noodle Bar, Spaghetti Kitchen and The Spoon. The company operates specialty stores in the wellness and health retailing. It operates Star & Sitara and Fit & Healthy. Star & Sitara provides skin and hair related beauty services for men and women. Fit & Healthy section housed within Big Bazaars and Food Bazaars provides health products and health related tips, information and advice. Pantaloon has presence in the books and music category through 'Depot' which offers books, music CDs and cassettes, home videos, multimedia (CD-ROMs) products and gift items. In the home and electronics retailing, the company offers the furniture, furnishings, home accents and electronic products through Collection I, Furniture Bazaar, Electronics Bazaar, e-zone, Home Bazaar and Home Town retail formats. In the telecom and IT category, the company offers products such as gadgets, mobile phones, accessories, download kiosks, airtime recharges, landline

instruments, blue tooth accessories, and mobile trinkets. The retail store brands that offer these products are Gen M, One Mobile, and M Port.

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Number of Outlets
Pantaloon Retail (Pantaloon or the company) operates multiple retail formats in both the value and lifestyle segments in India. It operates over 1000 stores across 73 cities in India, and occupies retail space of about 12 million square-feet. In Pune Pantaloon have 2 stores.

Market Share & Business Strength

Market Share Competitive Business Strength of Pantaloons It is believed that the following are Pantaloon principal competitive strengths which have Contributed to Pantaloon current position in the retail sector in India: Strong understanding of the value retail segment: Pantaloon business plan involves implementation of the concept of the value retailing, targeting the middle and lower middle income groups, which constitute majority of the population in India. Group/Company intends to provide quality products at competitive prices. Group/Company sells a vast range of merchandise across apparels and accessories, FMCG products, food products and consumer durables with over 63,000 SKUs. Pantaloon emphasis has been to maximize the value that the customers derive in spending on goods bought in Pantaloon stores. Group/Company endeavour to continuously reduce Pantaloon costs through variety of measures, such as, in-house production of apparels, procurement of goods directly from the small and medium size vendors and manufacturers, efficient logistics and distribution
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systems along with customized product mix at Pantaloon stores depending on the regional customer behavior and preferences. Central to Pantaloon value retail strategy is to pass on the benefits of cost reduction measures to Pantaloon customers. Strong and efficient supply chain

management: Pantaloon supply chain management involves planning, merchandizing sourcing, standardization, vendor management, production, logistics, quality control, pilferage control replacement and replenishment. Pantaloon supply chain management provides us flexibility to adapt to changing patterns in consumer behavior and Pantaloon ability. Manufactured by us such as Zapping, Paranoia, Chlorine, Kitten Studio, Famenne, Flourier Women and Roseau. In fiscal 2006, Pantaloon income from Pantaloon private labels was Rs.483.50 million, which accounts for 16.76% of Pantaloon total sales for fiscal 2006. Group/Company believes that Pantaloon focus on Pantaloon private labels and their recognition in Pantaloon customer segment enables us to differentiate ourselves from Pantaloon competitors. Group/Company effectively uses information technology systems:

Group/Company believe that efficient information technology systems, processes and business applications are essential to handle retail chain of Pantaloon magnitude. Pantaloon office processes are computerized which support procurement, supply chain logistics, distribution centers

management and store operations including inventory management and billing. Group/Company is in the process of implementing SAP. All Pantaloon stores and distribution centers are connected through a companywide. Group/Company has a highly experienced and competent management Team: Group/Company has an experienced management team which is committed workforce. Pantaloon management team comprises of talented professionals who are highly experience in the retail sector.
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SWOT Analysis

SWOT Analysis

1.It is Indias largest retailer having 1000 stores across 70 cities in India 2.It is countrys largest retailer by market capitalization and revenue 3. It manages high number of purchase orders 4.It is always updated with changing consumer preferences Strength 5. Popular brand with a high presence across India

1.It serves mass consumer base, still skilled labor force is not adequate when compared with global standards 2.Consumers from premium target group perceives it as low quality Weakness brand

1.Increase in footfalls by increasing ATL TV commercial promotions 2.India is fast emerging as retail hub for top brands as government allowed FDI in single brand and multi brand retail Opportunity 3.Organized retail is only 4.5 % of total Indian retail industry

1. Strong competition from unorganized retail sector in India. 2. Government policies are not well defined in emerging markets 3. Threats Online shopping is emerging trend in consumers due to

convenience

Competition

1.Shoppers Stop 2.Vishal Mega mart 3.Westside Competitors 4.Wills lifestyle

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Research Methodology

It is necessary to adopt a particular method to complete a project successfully. The steps that have been taken to complete this project are as follows: 1.) Research Approach: The Approach adopted to complete this project was that of CUSTOMER SERVICES AND SATISFACTION. And the study secondary data is collected from various news papers, internet, and books. The survey was done in pantaloons retail India store Gurgaon.

2.)

Research Design: Depending upon the objectives of the research the most suitable marketing research design is Exploratory research. The purpose is to find out the experience of customers while shopping in pantaloons.

3.)

Data Collection: The information used in this project was through primary sources i.e. personally interacting the customers in the outlet and getting the first hand information and secondary Sources i.e. Personal interview and observation.

4.)

Research instrument: The instrument that was chosen to conduct the market research was that of structured questionnaire. This has been done because data obtained in structured studies are easier to tabulated and interpret then data gathered in other ways. A list of
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questionnaire was prepared which could give relevant information when answered by the respondents.

5.)

Target Segment: customer

6.)

Sample area: Pantaloons retail India ltd outlet S.B Road, Pune.

7.)

Analyzing the collected data and reporting the findings: Finally the data has been collected was thoroughly analyzed and processed to obtain the required information. The data has been summarized in the form of graphs.

8.)

Sample size: 50 customers

Research methodology and analytical tools For doing any kind of research, it is very essential for us to determine in advance as to what is going to be the sample size for us. Because of the simple reason that one cannot simply do the research on the whole population due to the constraints like time, money & energy . Therefore when the field of inquiry is large, this method difficult to adopt because of the resources involved. It is possible to obtain sufficiently accurate results by studying only a part of total population. First step in the research process is to single out the problem we want to study. One kind of research problem, those which relate to states of nature. The formulation of a general topic into a specific research problem, thus, constitutes the first step in a specific enquiry. In my topic the main problems
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is to study the customer experience of the services provided by Pantaloons retail India ltd., are they satisfied with services, what are there expectations of services from retailers, is there anything new that the customer is looking for, what Indian retailer are doing about it. In this project I have decided to use both the primary and secondary data. Because I believe that lot articles and research paper have been done on this topic and these could provide us with a lot of information on various service parameters. These articles will give us a totally different view of the service standards and what all require to be done. It becomes very much essential for us to develop a working hypothesis because it has to be tested. I also need some kind of primary data through questionnaire filling. I have decided to use deliberates and simple random sampling because to know the reaction of customers for different services we need to target the people who regularly goes for shopping in organized formats and then we have decided to pick 100 people randomly. I have also decided to use other data collection techniques like observation and personal interviews. I have decided to use structured close ended questionnaire so that the response could be properly coded and analyzed. It would become easier for us to understand the customer experience and what are the areas of improvement he is looking for.

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Customer Segment
It is targeting the Tier-2 and 3 cities which have a huge unleashed potential and youth of todays.Before pantaloons only in men wear so the biryanis notice that the other member of the family went away empty handed then Pantaloons segment the whole family (men, women and children)

Types of Display Available

Pantaloons stores have very attractive display areas, in which they put the dummies, accessories & all. They have a broad walkway & doorways.

SKUs
Today Pantaloon Retail has stocks about 8,000 to 12,000 SKUs per location.

Categories Managed

LADIES WEAR Honey Akkriti Annabelle Mix & Match

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 Ajile Rig MENS WEAR John Miller JM Sports Bare Denim Rig Ajile Lombard T-2000 Bare Leisure

KIDS WEAR Chalk Bare 7214 ACCESSORIES Cosmetics Stationary for kids Books & Magazines

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. Plantoon Brands
Mens
Formals Casuals Ethnic

Non Plantoon Brands

Womens
Formals Casuals

Mens
Formals Casuals

Womens
Formals Casuals Ethnic

Signages Used in Pantaloons

Signage is any kind of visual graphics created to display information to a particular audience. This is typically manifested in the form of way finding information in places such as streets or inside/outside of buildings. The main purpose of signage is communication, to convey information such that its receiver can make cognitive decisions based on the information provided. In general, signage can be classified into the following functions: (a) Information: signs giving information about services and facilities, e.g., maps, directories, instructions for use, etc. (b) Direction: signs leading to services, facilities, functional spaces and key areas, e.g., sign posts, directional arrows, etc.

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(c) Identification: signs indicating services and facilities, e.g., room names & numbers, toilet signs, number of floors, etc. (d) Safety and Regulatory: signs giving warning or safety instructions, e.g., warning signs, traffic signs, exit signs, rules & regulations, etc.

Signage Manual All the Signage should be in Right format, no spelling mistakes Right fonts should be used (Helvetica 35, Aparajita, Helvetica Neue, Rupee Foradian) Apart from Brand signage guidelines No extra signage should be there in any Brand As per brand signage guidelines all the signage should be there on the floor Any promo or offer signage will be placed with new acrylic stand, it will not hide any brand signage No Old Fashion Friday signage should be there on the floor All the signage paper & acrylics should be in proper condition On one fixture only one signage will be kept

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 Always ensure that Signages are never one sided, it has to be two sided.

Visual Merchandising

Visual Merchandising is the art of displaying merchandise in a manner that is appealing to the eyes of the customer. It sets the context of the merchandise in an aesthetically pleasing fashion, presenting them in a way that would convert the window shoppers into prospects and ultimately buyers of the product. A creative and talented retailer can use this upcoming art to breathe in new life into his store products. Passion for design and creativity are essential to be a good visual merchandiser. A perfect design process and the ability to create ideas that are different are required. Awareness of happenings in fashion world is needed so as to keep up-to-date with the dynamics of the market constantly.

Visual merchandising includes window displays, signs, interior displays, cosmetic promotions and any other special sales promotions taking place. Components of Visual Merchandising:

There are certain things which a retailer needs to take care while proceeding with the process of displaying his products. These components when
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combined together in a proper ratio will make a successful outcome.

Make merchandise the focal point:

The main goal of display is to showcase the products within the overall display area. Customers

give three to five seconds of their attention display. to The

window

retailers visual message should be conveyed to the customer in that short

period of time. It should not be like an unsuccessful TV advertisement, where the product is forgotten altogether and only the concept of the commercial remains in the mind of the viewer. The arrangement of window display should go with the product and should not suppress them to make it discernable to the eye.

Right choice of colours is vital:

Colour is one of the most powerful tools in the Visual Merchandising segment. It is a visual perceptual property. Colours can be associated with emotions, special occasions and gender. It attracts attention and pulls more customers into the store. A retailer has to focus on the right choice of colour that would match with the theme of display. It is not possible to satisfy everyone all the time, but it is possible to cultivate the taste of customers gradually and purposefully. A right choice of colours in the display items can turn walkers into stoppers and significantly convert them into customers. It is therefore mandatory to choose the right colour for the right theme of
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display. A Halloween display would require black colour in the display theme. Valentines theme should be ruled by red colour supplemented with pink and white. A display of babies accessories should reflect light shades of pink and blue colours. A Christmas display should contain colours of red, green, gold and silver.

Display themes to appropriately support product: the

A theme is a display of sale items of

similar e.g. a

categories display of

kitchen accessories. Its essential to have themes for all retail displays. They can be romantic, wild, or capricious, and capture peoples imaginations.

A good theme will lure the customer with a shopping mood into the store. Themes mainly depend upon the retailers imagination and creativity. Focusing on the right theme rather than creating a display with expensive raw materials is the key to successful window display. A shoe store theme can be a group of elves buying shoes. A theme for display of casual wears can be a group of mannequins sitting casually at a get together in different poses. Related themes will tug the heartstring of the customers and will pay off. Display should complement the retailers other strategies:

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The content of the display should complement the in store environment and other marketing strategies of the retailer. If the retailer has a specific logo, the colours of the display can reflect the same colour of the logo. For e.g. Mac Donalds display, the clown is of the same colour, red and yellow as in their logo.

Cleanliness:

Neat and clean arrangement is the foundation of an inviting a successful visual display. A beautiful display can be ruined by a cracked sign holder or an unclean display environment. Effective cleaning schedule of showcases and display fixtures is required.

Change the display settings in frequent intervals:

Changing the arrangement of the displays in regular intervals will initiate new interest about the products in the minds of the customer. By designing a plan-o-gram and activating changes frequently one can thus be a proactive retailer.

With globalization and the retail boom, visual merchandising is growing in leaps and bounds. It is not simply concerned about decorating a store beautifully; but must also symbolise the brand keeping the target audience in mind.

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The importance of VM:

Visual merchandising today forms a critical element of retailing. Besides the facade and windows, which are clearly done up with an objective to attract passer-bys and induce walk-ins, there is also in-store decor that is designed to enhance the customers comfort and convenience while shopping and overall, offer a superior shopping experience. Consumer behaviour studies have confirmed that the lure of a beautifully done up show window and a tastefully decorated facade, more often than not, prove irresistible as they walk in to check out what is on offer. It also ensures exclusivity since no two stores should look alike. Besides, when the mood and theme of such displays change at regular intervals, it makes certain that the store remains top of mind. Loyal customers have often been known to anxiously wait for the next display. Stickiness in retail formats is also ensured by the imaginative use of colours, lighting, space, furniture and visual elements with regard to in-store displays. Once customers walk in, it is but imperative to ensure that they enjoy their first encounter with the store. After all, repeat visits will only happen if a customers first visit is a memorable one. The logical arrangement of counters, with clear passageways allows for easy access to merchandise. Rather than getting lost in the mazo that most large stores are, the customer feels more in control. Space is allocated to various product categories taking into account the number of SKUs stocked and shelv-es/counter space requirements are worked out accordingly. Clear passages are provided for products, which require touch and feel. All impulse purchase driven products are also clearly displayed so that the customers can reach them without any hindrance. Also, it has been observed that when a person enters a room, the human eye moves in a Z pattern, i.e. from rear left of the room to right rear, followed by front left of the room to
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front right. Care should be taken to do up the rear left end of the room in an appealing manner so as to guide the direction of vision and keep a shopper visually interested. A great deal of research has been undertaken on the impact of lighting on a customers purchase behaviour. Results clearly indicate that in general, stores that are brightly lit, with the lights cleverly blending with the interiors lead to higher customer comfort, and as such, more sales. Different types of lighting and interiors are used on different floors, the change reflecting the various products that are on display on a particular floor, the proposed target audience and the time of the year. The ladies floor, for instance, is most often subtly lit with soft lights or then again, in summers, cool bluish lights are used to impact an impression of coolness and comfort. The careful use of spotlights helps add to the appeal of products such as crystal and jewellery. Signages related to various product sections are put up clearly to demarcate areas, allowing customers a clear understanding of what is stocked where. With various brands having their own pull, brand signages are also put up within the product sections so that customers can find their favourite brands easily. Additionally, within the product sections, signages help to publicise the various promotional schemes that might be running in the store. Stores also make use of signages to indicate the facilities/services available at the store, such as washrooms, cafe etc. Most stores have an in-house team of visual merchandisers who coordinate with the marketing team as well as the in-house merchandisers and suppliers. Each time any major changes in decor are contemplated, they present the visual display concepts to the group for analysis and selection. Subsequently, the same is executed. The visual merchandising team also makes projections vis-a-vis returns per sq. ft. for each section and each brand stocked. On promotions related visual merchandising, the inputs of the advertising agency are also sought so that the in-shop communication is in line with the
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tactical promotions advertising. With cost of visual merchandising generally amounting to 1% of sales, this is one communication tool that clearly has an edge over others in terms of drawing in shoppers, increasing flow of traffic and increasing sales.

Product Display

Guidelines for Gondola Display: Can have hanging or stacking Packed products like formal Shirts that dont need details of shape, fit & fall should be stacked. Ethnic kurtis, Party wear and Fashion merchandise should be hung A4 signage and shelf talkers Guidelines for Gondola display Important note: In every formal wear brand The Last Shirt should be shoulder out & top five shirts should be front facing As shown in the picture

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Guidelines for Wall Displays: Merchandise on shoot visuals or bust display should always Kept next to the branding or bust from in the absence of same product try to keep same colour story or similar style.

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Table Display Docket: As the brand Pantaloons moves towards fashion the need to make the customers aware that what they are buying is not just another shirt but the latest fashion makes us strive towards a more fashionable approach in our displays. Tables play an important role in creating that fashion atmosphere in the store. Easy shopping experience of customer (easy to find the complete look together) Suggestive selling through coordinated display, Show complete product feature through open display, There are two types of table displays: Power pricing tables Fashion Tables

Power Pricing Display: Display large volume of power pricing & EPP. Large volume: - Maximum of 18 pc in normal fold, 10 pc in paper fold per option.

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Fashion Table Display: Open display of merchandise with full size set for selling purpose. At least 4 options with full size set for top wear & at least 2 options with full size set of bottom wear. Tables should not have single piece for display. If table is divided in two parts one part will have top wear display & another part will have bottom wear display (as shown). For fashion display table, whenever we highlighted bust forms should displayed the same merchandise on the table & should also have full size set. Any merchandise highlighted on The bust form, if it runs out of sizes or sold out, it needs to be changed with the one that is in stock on the table.
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In fashion display we have two types of display: Product specific: Highlighting product with all the options in an open display. Co-ordinate look: Suggestive co-ordinates displayed to form a look. Product specific: Highlighting product with all the options in an open display

Co-ordinate Look: Suggestive co-ordinates displayed to highlight looks.

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The Fashion Table I made:

Brand Presentation Brand Presentation will be change in every season All the new shoot branding should be placed & no old season visual should be there on the floor Season wise Plano gram should be implemented in every brand Signage & communication should be change as per new season guidelines Sectional looks & props should be placed properly Lighting should be proper in the store All the display area (like-Window, Cluster , Focal Point, wall & Tables & all mannequin & bust form) should have proper lighting No crumpled or torn print should be there on the floor
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 All the fixture should be in proper condition , All broken or damage fixture should be repaired

Buying Methods

In 1999, Pantaloon Fashions changed its name to Pantaloon Retail (India) Limited. In the same year, Pantaloon merged its entire garment business with PIL(which was manufacturing and marketing blended yarns). By 2004, Pantaloon had trousers manufacturing plant at Tarapur, near Mumbai, a denim plant in Goregaon, Mumbai, a shirt manufacturing plant in Bangalore and a knits manufacturing plant in Gurgaon, Haryana. Pantaloon also had 23 factory outlets across the country, where unsold garments from

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its stores were sold at a discount. The company had also formed strategic alliances with some of the largest textile mills in India for sourcing Fabric. From a small beginning as an apparel retailer, Pantaloon had multiple store formats in 2004. By 2004, Pantaloon had evolved from a manufacturing company into a vertically integrated player controlling the entire value chain in apparels fabric manufacturing to apparel manufacturing and did their branding, distribution and retailing Biyani was highly sensitized to the consumers requirements and business environment, and whenever he found new opportunities he launched a new retail store. He repositioned Pantaloons from a family to a lifestyle store as the market evolved. He targeted his stores at particular customer segments. He emphasized on cheaper sourcing, efficient supply chain, affordable price, private labels, location and floor space of the stores. The corporate credo of Pantaloon was Rewrite rules, retain values. Initially, Biyani ran Pantaloon single-handedly, from strategic thinking to selecting store locations. When Pantaloon expanded, Biyani divested himself from micromanaging the company. He recruited experienced people from its competitors and gave them a free hand. Biyani decentralized operations with zonal heads given the responsibility to take decisions. Pantaloon followed inverse pyramid structure of organization where Board of Directors was at the bottom and customer service executives on the top.

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Customer Service

Customer service is the provision of service to customers before, during and after a purchase. According to Turban et al. (2002) Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation." Its importance varies by product, industry and customer; defective or broken merchandise can be exchanged, often only with a receipt and within a specified time frame. Retail stores will often have a desk or

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counter devoted to dealing with returns, exchanges and complaints, or will perform related functions at the point of sale. Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Examples of self service are Internet sites. The experience a customer has of a product also affect the total service experience, but this is more of a product direct feature than what is included in the definition of customer service. Customer service is normally an integral part of a

companys customer value proposition. From the point of view of an overall engineering effort, customer service plays an important role in an organization's ability to generate income and revenue . From that perspective, customer service should be included as part of an overall approach to systematic improvement.

Some have argued that the quality and level of customer service has decreased in recent years, and that this can be attributed to a

lack of support or understanding at the executive and middle management levels of a corporation and/or a customer service policy. Customer service is an organization's ability to supply their customers' wants and needs. Excellent customer service (is) the ability of an organization to constantly and consistently exceed the customer's expectations." It consists of all those activities by the retailer that influence. 1. The ease with which a potential customer can shop or learn about the stores offering.
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2. The ease with which a transaction can be completed once the customer attempts to make a purchase. 3. The customers satisfaction with the transaction. Activities undertaken by a retailer in conjunction with the basic goods and services it sells. Store hours Parking Shopper-friendliness Credit acceptance Salespeople In store announcement Gift Wrapping and packaging Personal Selling Merchandise Availability Complaint handling Merchandise returns Servicing and repair Deliveries Alteration

Gap Model For Improving Retail Customer Service: Knowledge Gap -- knowing what the customer wants Standards Gap -- setting service goals Delivery Gap -- meeting and exceeding service goals Communications Gap -- communicating the service promise

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Closing the Knowledge GAP Customer research More interactions between managers and customers Better communications between managers and service providers

Closing the Standards GAP High quality service commitment Define the role of service providers Innovative solutions Set service goals Measure service performance

Closing the Delivery GAP Information and training Instrument and emotional support Internal communications Reduce conflicts Empower employees Providing incentives

Closing the Communications GAP Realistic commitments Managing customer expectations

What is customer satisfaction?

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We are in the midst of a revolution in business. Some call it a customer revolution, others a quality revolution, others a service revolution. Organizations are attempting to obtain increased customer satisfaction by focusing on the quality of their products and the service provided. This movement toward quality has produced significant benefits but just like other business fads, joining and adopting the religion does not insure that the real objective of producing customer satisfaction will be obtained. What exactly customer Satisfaction is ?? Customer satisfaction is a key ingredient to the success of any business. It is the most important factor that creates repeated customers. Some people know it but do not realize its importance. If a customer of yours is satisfied with one of your products or services, chances are this customer will purchase more of your products or services, which will increase your revenue. Therefore, in order to have your new or existing customers buy more from you, you will have to follow techniques that work. Customer satisfaction takes a very important place in Marketing. As much as you think that your marketing strategies should help you generate sales, think about how the same marketing strategies could help you achieve Customer satisfaction. There are a lot of elements involved with Customer satisfaction.

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Levels of Customer Satisfaction

Much Better than expected Delighted * Loyal Perceived Service As expected

Customer Satisfaction
Expected Service

Satisfied Vulnerable

Worse/Different than expected

Dissatisfied Walk & Talk

Know the problems of your customers and what they are looking for, and then offer them the right products. Products that the customers receive are also an area that was assessed because of a high value that is placed on satisfaction in the product. Satisfaction of the product is evaluated by content, display and delivery of the product. Customers purchasing habits would include such issues as: who do they usually go shopping with, how often, how long do they spend in a shop, etc. Psychographic portraits of many customers allow customer segmentation in terms of purchase frequency, respondents experience of various shopping centres or service organisations, as well as benchmarking against competitors.

IMPORTANT FACTORS: The Store covers various aspects to fulfil the need of customer as well to
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Making the shopping a great experience for them. From the First factor where in customer enters into the store till he or she Purchases and moves out of the parking for his or her way should be remember able one and a great experience for the customers. Even from security staff to Housekeeping everyone should be well groomed. As we all know that First impression is the last impression so its important for every retailer to package its staff, The better we groom ourselves, the more we are pleasing to our customers. 1. Judgement is made about people based on the performance image they display. 2. Physical appearance plays a vital role in determining how others perceive us.

Then is the customer interaction which is very demanding and plays a very crucial role in any retail store. Every customer interaction is an opportunity for us to contribute to customer satisfaction. The customer may look in for something specific or have a question about a product, our store or our policies customer may be looking around. Sometimes customer could have dissatisfaction against our system. Effective and courteous interactions about all our customers go a long way in ensuring success of our store. If we are able to handle solution to them we win a loyal customer to life. Also Customer Service desk which is specially mend for the judgement of customer behaviour. Where in customer come along with their complaints, Exchange, Wrong billing, other staff complaints. This is the place where the customer service executives have to be very polite, patient, and understand

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the problem of customer and try to resolve them so that we dont loose that customer. And retain them and convert them into our loyal customer. It has been observed in the training period that the percentage of customer complaint in PANTALOONS is 4%. As dissatisfied will tell to other 10 more customers. Which is not good for the company as we have risk of losing those 10 other customers also? The customer retention leads to Loyalty Profit Repurchases So for Excellent customer service its important to have following things: Help Respect & Recognition Comfort, Competition Friendly Smile Understanding Fulfilling the requirement

A good Customer service leads to: Boost repeat business Creates new demand from new customers Cut Customers

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There are various ways to delight the customers a customers demand or basic needs are fulfilled above their expectation but it becomes important to know what exactly delight means? When and the courtesy they get in return then comes the DELIGHT. To ensure the customer by setting up the Customer help lines. Making a one point contact with the customers. Bridging the gap in between Communication gap between the customers & stores. Telephones services that include promptness, courtesy and accuracy. Customer Service executives should be selected by C.S.D Manager.

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Loyalty Programs
Green Card is passport to a whole new world of exclusive benefits and privileges.

Benefits

7 Star

5 Star

3 Star

1 Star

Discounts on purchases Upgrade Enrolment Add-on Card to Family Members End of Season Sale Preview Green Channel all

10%

7.5%

5%

Gift

Voucher on

of new

Rs.200/enrolment Upgrade Kit 2 2 Upgrade Kit Upgrade Kit 1 1

Welcome Kit

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Green Drop

Yes

Yes

No

No

Green Exchange Green Desk Green offers & Promotions Service

90 days

60 days

60 days

60 days

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

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Payback Loyalty Program At Future Group, we believe in building long-lasting relationships with customers. We encourage repeat customer visits through our unique offers and special sale days.

Future Group has taken the whole concept of customer loyalty to the next level by joining hands with PAYBACK. PAYBACK is Indias largest and one of Europes most successful multi-partner loyalty programs. With PAYBACK, customers can shop, save and get rewarded. This program enables consumers to collect millions of points across online and offline partners with just a single card. Customers can accumulate points across Future Group formats, thereby making shopping rewarding. What Is PAYBACK? PAYBACK is Europe's leading customer loyalty program, headquartered in Germany, with a total of 25.5 million active cardholders in Germany and Poland. In India, PAYBACK consolidated its position after taking a major stake in I-Mint. Today, with more than 30 partners with 1,500 outlets and 10 million card members, its the only program which works with market leading pan-India players from the banking, travel, petroleum and online sectors such as ICICI Bank, HPCL, Universal, BookMyShow and MakeMyTrip. Now that Future Group has become a part of this bandwagon, customers are bound to earn points at every step from formats like Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, EZone, Brand Factory and Future Bazaar.

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These points can then be redeemed for air miles, movie tickets, air tickets and vice versa. With Future Group and PAYBACK Shopping is Rewarding. Benefits of PAYBACK Our formats Big Bazaar, Food Bazaar, Pantaloons, Central, Home Town, EZone, Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program.

T24 Program T24 will provide customers with a dual advantage all 24 hours of the day Shop More, Talk More and Talk More, Shop More. Shopping and talking on our mobile phones are among the two favourite activities for all of us in India. With T24, we have been able to develop a unique customer value proposition that combines these interests of the aspirational Indian. Customers will get shopping benefits for talking and talk-time benefits each time they shop. We believe that with our partners, Tata Teleservices Limited, we have been able to develop a differentiated offering in the crowded telecom space and also increase the loyalty we enjoy among the millions of customers who patronize our stores. T24 (Talk 24) tariff plans reflect the competitive per-second rates being offered for pre-paid customers on Tata Teleservices Limiteds GSM network. In addition, customers will be rewarded with free talk-time for every purchase above Rs 500 made at Future Group shopping outlets. For
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example, a T24 customer buying products worth Rs 2,501 at Pantaloons or EZone will stand to gain 50 minutes of free talk-time. Also, a customer spending Rs 1,501 in Big Bazaar will gain 90 minutes of free talk-time for every purchase. Plans will keep evolving to offer ever-more attractive options to the customer.

Promotion Used by Pantaloons

Major tools used in Promotion Free Samples. Premium or Bonus Offer. Exchange Schemes Price-off offer Coupons Fairs and Exhibitions Trading Stamps Scratch and win offer Money Back Offer.

Objectives of Sales Promotion

1) 2)

To compare usage across exclusive and multi brand outlets. To explore rationale behind such activities by examining consumer behavior.

3)

To pose challenges ahead.

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4)

To attract new customers and retain the existing ones.

Methodology used by Pantaloons Tie-ups with major Hotels, Restaurants and Pubs (e.g. Sayaji Grand, etc.) Promoting sale activity through tie up with major organizations like- AirTel, Satyam Multiplex, Gitanjali Jewels, Talwalkers Gym, Barista, Baskin and Robbins, US pizza, Ziva, E-Zone, INOX Multiplex, Tanishq, and etc. Promoting through distribution of discount vouchers of hotels and redeemable vouchers for Gitanjali Jewels of Rs. 500, 1000 and 2000 while shopping with pantaloons. Pantaloons also attract customers through organizing event management like Femina MISS INDIA contest in the store. Promoting Through Mall Branding. Promoting through courier packets on the pasting of Pantaloons sandwiches label of offer and Pantaloons T-shirts distribution to staff members on road show. Promoting Sales through Hording at Pause areas and Road poll Kiosk sandwiches in highly posh areas of the city. Providing corporate discount voucher to all major corporate. Promoting through SMS blast to more than 10 lakhs Customer database. Promoting in major societies of the through No Parking sandwiches and Leaflets and Posters. Promoting Sale through organizing contests like-

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 SMS dikhao and Inaam pao for AirTel customers and also get a chance to win Videocon DVD player. Special shopping with pantaloons and get chance to win Gitanjali Jewels Pearl set. Get shopping with pantaloons and get an AirTel SIM Card connection free.

Future Expansions of Pantaloons

Fresh from a change in ownership, Pantaloons Fashion & Retail Ltd will be investing up to Rs 175 crore in the next 12 months on store expansion across India, mainly in smaller towns. The company, which became a part of Kumar Mangalam Birla-led Aditya Birla Nuvo Ltd (ABNL) effective from April this year, is targeting to open at least one store per month in the next 12 months at an investment of up to Rs 15 crore per outlet.

"For a format like Pantaloons, which is end-to-end from design to delivery, there is a tremendous potential. The focus in the next 12 months of transition is to scale up the store network," Pantaloons Fashion & Retail Ltd CEO Shital Mehta told PTI.

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He said further said: "Our target in the short term is to open at least one store a month, although we have a line of sight for 15 stores." On the investments for the network expansion, he said: "Per store, including the real estate and capex, it should be around Rs 15 crore on an average." Mehta said while metros would continue to be part of the strategy, the company is targeting smaller cities and towns. "We are targeting young customers in 'Bharat', who are entering the consumption brigade. Our ability to offer affordable fashionable ethnic wear is our strength to attract them. About 60-70 per cent of the new stores will be in smaller places," he said. The firm opened its first flagship store in Chandigarh last week and is targeting other places, including Dehradun, Pune, and Kalyan. Pantaloons have 71 stores across 35 cities. When asked if the change in ownership from Future Group would signal changes in the way Pantaloons operate, Mehta, who held top positions in Aditya Birla group's Madura Garments, replied in the negative. "What we bring is not only the financial muscle but also the experience of building brands. What we are looking is to build on the inherent quality of Pantaloons, which is costing and affordability, the ability of offer affordable fashionable items in a modern store format," he said. Mehta also said Pantaloons has about 20-25 "power house brands" which could be developed into standalone labels in future and even open independent outlets for them.

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Last year, Aditya Birla Nuvo Ltd had entered into an agreement with the Future Group to infuse Rs 1,600 crore into 'Pantaloon' and acquire a majority stake in the store chain and later demerge it to be listed as a separate entity.

Innovations

Pantaloons Retail has implemented SAP with an investment of $10 Million in keeping pace with the technology and it is currently in the process of setting up SAP consultancy software. SAP will be helpful in building robust transaction management system and Consumer Survey of Product Innovation 2013

Sach Handwash voted product of the year by Consumer Survey of Product Innovation 2013

Images Fashion Awards 2013

The Most Admired Fashion Retail Personality of the Year Mr. Kailash Bhatia

The Global Innovation Award

International Home + Housewares Retail Excellence /Global Innovation' for the year 2012-2013 HomeTown

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Retailer Technology Awards 2013

Future Group's IT team was felicitated with the following awards: Retail Application of the year IT Team of the year Supply Chain Software Solution

Rural Marketing Association of India's (RMAI) Corporate Awards 2012

Best marketing communication towards women, youth and children Future Learning

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