Arvind Brands' Competitive Position in the Indian Branded Apparel Market

            
 
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Case Details:

Case Code : MKTG109
Case Length : 16 Pages
Period : -
Pub Date : 2005
Teaching Note :Not Available
Organization : Arvind Mills
Industry : Branded Apparel Industry
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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"Indian brands including the current (premium) power brands such as Raymond, Louis Philippe, Arrow and others will come under closer scrutiny from the Indian consumers since the comparison would be with the global brands such as Calvin Klein, Hugo Boss, Diesel, and others. In light of the above, Indian companies both in the clothing manufacturing & marketing business, as well as retailers engaged in marketing of branded clothing and other fashion & lifestyle products need to have a re-look at their branding strategies."1

- Arvind Singhal, Chairman, KSA-Technopak India (P)2 Ltd, in 2004.

"The growth in retail credit has increased the aspirations of customers, and more people are trying the international brand Tommy Hilfiger."3

- Darshan Mehta, Managing Director, Arvind Brands, in 2005.

Introduction

In the year 1931, three brothers Kasturbhai, Narottambhai and Chimanbhai, started a company called Arvind Mills. The company, with state-of-the-art machinery imported from England, was to produce high quality fabric. In 1993, Arvind Mills's operations were split into 3 units viz., textile division, telecom division and garments division. The garments division, Arvind Brands Ltd. (Arvind) was a Rs.3.50 billion subsidiary of Arvind Mills. ICICI Ventures picked up a majority stake in Arvind in May 2004. In 2005, Arvind Mills reacquired ICICI Venture's stake in Arvind by raising $37.19 million through the issue of 13.5 million Global Depositary Receipts (GDRs). As of 2005, Arvind had again become a 100% subsidiary of Arvind Mills.

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

In 2005, Arvind launched a major retail initiative for all its brands. Arvind's licensed brands (Arrow, Lee and Wrangler) had grown at a healthy 35 per cent rate in 2004 and the company planned to sustain the growth by increasing their retail presence.

Arvind also widened the geographical presence of its home-grown brands such as Newport and Ruf n Tuf, targeting small towns across India. Arvind planned to increase the number of outlets where its domestic brands would be available and draw in new customers for ready-mades.

To improve its presence in the high-end market, Arvind started negotiating with an international brand in May 2005, and was likely to launch the brand around the end of 2005. In April 2005, Arvind appointed Saif Ali Khan4 as the brand ambassador for its Newport brand. "Indian Youth are more fashion conscious than they have ever been", said Darshan Mehta (Mehta), Managing Director, Arvind.

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1] "Fashion Vision Series," Images Fashion Forum'05, www.imagesfashion.com

2] KSA-Technopak is the Indian subsidiary of Kurt Salmon Associates (KSA). KSA, founded in 1935, is a global solutions provider focused exclusively on consumer products, suppliers, retailers, and health care organizations.

3] Nirmal D.Menon, "Arvind Brands plans retail push," Business Line, May 03, 2005.

4] Saif Ali Khan, a national award-winning actor of Hindi films.

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