CUSTOMER BUYING BEHAVIOUR AT PANTALOONS

1. 1. ~ 1 ~ CHAPTER-1: INDUSTRY PROFILE 1.1 Introduction Accounting for around 14-

15 per cent of the gross domestic product (GDP), the Indian retail industry is estimated to
be worth around US$ 500 billion currently. Home to one of the top five retail markets in
the world, India offers immense scope of growth and opportunities in this area. As of
now, almost 90 per cent of the Indian retail sector is controlled by tiny family-run shops
i.e. the unorganized segment. Thus, organized retailers have a lot of room for further
penetration in this flourishing economy. In 2010, larger format convenience stores and
supermarkets accounted for about 4 per cent of the industry, and these were present
only in large urban centers. Now the trend is changing, and such concepts are
mushrooming in smaller cities and towns as well. Organized retail segment is expanding
at 20 per cent a year, driven by the emergence of shopping centers and malls and
growing middle class. India allowed overseas investment in its supermarket sector in
September 2012. Since then, the retail landscape is witnessing a flurry of foreign
investments. Some of the facts, recent statistics and developments related to the same
are discussed hereafter. RETAIL MEANING Retail comes from the French word retailer
which refers to "cutting off, clip and divide" in terms of tailoring (1365). It first was
recorded as a noun with the meaning of a "sale in small quantities" in 1433 (French). Its
literal meaning for retail was to "cut off, shred, paring". Business of selling products and
services to the public as the ultimate consumer. Retailing involves selling many different
products and services, either from a store location or in direct selling through vending
machines and
2. 2. ~ 2 ~ in-home presentations. First retailers in India include BATA, Pantaloons, Bombay
Dyeing, Spencer’s The case highlights the emergence and evolution of PRIL from a small
garment manufacturer to the retailer in India by the early 21st century. It examines the
evolution and growth of PRIL until the mid- 1990s, and then traces the rationale behind
the launch of its first retail format Pantaloons, a family departmental store. It discusses in
detail the marketing and promotional efforts undertaken by PRIL for Pantaloons, which
made the store one of the most successful lifestyle stores in India in the early 2000s. The
case then examines the reasons for PRIL's entry into discount store and food store
businesses through Big Bazaars and Food Bazaars and discusses in detail the strategies
and marketing efforts put in place by PRIL to promote these formats. Recent trends in the
Indian retailing industry, changing requirements and preferences of consumers,
Understanding changing consumer lifestyles. 1.2 Background 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. 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. Is
Kishor Biyani a retailer or a fund manager? That question might well be asked of him in
the
3. 3. ~ 3 ~ not too distant future. Over the last few months, Future Capital Holdings (FCH),
led by CEO Sameer Sain, has stitched together a fully integrated financial services
business model. Management business in India with almost $830 million in assets. Now,
it has big plans in insurance, retail lending and forex services. “Whether we have a
consumer who wants to leverage future income to realise his aspirations today, or wants
to save and invest, or buy protection for his family, we want to be a part of it,” says Sain.
He believes that in 5-7 years, FCH’s bottom line will be bigger than the retail business! In
the insurance business, the Future Group has managed to wrest a 74 per cent stake in a
joint venture by investing just Rs 100 crore (its JV partner invested the same amount for
 a 26 per cent stake). “Italian Assicurazioni Generali, ranked 21 on the Fortune 500 list, is
a good fit for us because they derive almost 17 per cent of their sales from mall
assurance. They have also partnered another retailer in the Philippines,” says Sain.
Biyani estimates that with just a 1 per cent footfall conversion rate, the insurance
business would have over 2 million customers. That would earn him huge fees on
distribution and catapult the company to amongst the largest private insurance players by
way of number of policies sold. Despite the global economic recession and a consequent
slowdown in the Indian economy, organized retail continued to make headway although
at a slower pace in 2009. Nonetheless, if the current retail landscape is compared with
that of 2004, it has undeniably become a much larger environment. Retail stalwarts such
as Wal-Mart, Tesco and Marks & Spencer have already made inroads into the Indian
retail industry and with multi-billion dollar investments. 1.3 Retail Scene in India Million
sq.fts in available mall space by the end of 2007.Food and Grocery retail holds the most
potential, as almost 99% of it is unorganized. The Omnibus edition of Pantaloons retail
papers spans this very happening sector, which not only brings so much joy to the
inveterate shoppers in terms of retail therapy, but also employment and livelihood to tens
of thousands of Indians. India’s GDP growth rate is a healthy 9% for 2005-06 – and this
has had its
4. 4. ~ 4 ~ ripple effect on all industries – more so the Retail sector, of which only 3%
organized until now. The Indian retail industry accounts for 10% of GDP and 8% of
employment. India is being touted as the next big retail destination with an average three
year Compounded annual growth rate of 46.64%.The Indian economy is poised to take
the third position in the world in terms of Purchasing Power Parity by the year 2010.The
Indian Retail Market is a Rs. 1,200,000 million market as per the Images India Retail
Report 2007.Organized Retail market is zooming ahead with an annual growth rate of
30%.The Retail sector is vibrant with growth happening in all related areas – be they
malls, hypermarkets or single brand luxury stores, they have dotted the commercial
landscape of the metros, and have even percolated to the Tier II and Tier III cities. Malls
are fast becoming sought-after entertainment hotspots. From a situation where There
were no malls about a decade ago, the country will have over 300 malls translating to
over 100 Number of big players is entering the field of organized food retail like Reliance,
AdityaBirla Group and the Bharti Group, which has tied up with the world’s largest retailer
–Wal-Mart. All these major players are expected to show an annual growth rate of 25 –
30%. The Retail boom has also led to the opening of a large number of single brand
outlets across the country. With big brands and bigger outlets across all segments, from
Apparel and Footwear, Watches, Books and Stationary to Jewelry and Consumer
Durables, the sweep is indeed broad. In to sample the depth and breadth of this amazing
sector. Types of Retail verticals operating in India are: Food and Beverage Health and
Beauty Clothing and Footwear Home Furniture and Household Goods Consumer
Durable Goods
5. 5. ~ 5 ~ Leisure and Personal Good Economic slowdown serves as reality check for
retailers The global economic crisis and its impact on India resulted in a slowdown of the
Indian economy in 2009. This caused consumers to tighten their purses, and the
availability of financial support for retail expansion dried up. This put a halt to the
unprecedented expansion seen over the review period. Lower consumer confidence
resulting from the recession, as well as job losses, resulted in fewer visits to retail stores,
and consequently sales plummeted for major retailers. With consumers becoming highly
discretionary, spending on non-essential items such as lifestyle goods was highly
impacted, making it one of the worst performing categories. Retailers with financial
backing weather the storm Credit from banks and other lenders has been difficult to
obtain in the current environment, and retailers have suffered severely as a result. Some
retailers are unable to pay rental fees because all lines of credit have dried up. In such a
tough operating environment, retailers under the umbrella of a diversified holding
company with access to internal funds are faring better than other players. For example,
Reliance Retail and Aditya Birla Retail emerged relatively unscathed compared with
smaller players such as Subhiksha and Vishal Retail. Internet retailing grows at
phenomenal pace Due to the increased penetration of credit cards and availability of
 computing facilities to a wider population, Internet retailing is witnessing stellar growth.
Internet retailers offer products at discounted prices to consumers compared with store-
based retailers and bargain-hunting consumers are latching on to this fact. This has
become even more pronounced in light of the economic downturn as consumers have
become increasingly sensitive to price.
6. 6. ~ 6 ~ India’s attractiveness stands over long term India’s burgeoning middle class
offers considerable promise for organized retailing, which is expected to remain attractive
to organized retailers over the long term. Liberalization and financial reforms would
remain a key factor in the expansion of the organized retail environment. Currently,
foreign direct investment is not allowed in single brand retail, and it proved a major hurdle
in IDEA’s billion-dollar plans in mid-2009 to enter the organized retail environment.
Impact Of Recession On The Indian Retail Market The retail market in India is facing
slowdown with the ongoing financial crisis happening across the world markets. Since the
markets always have internally linked with each other, the impact of the crisis is generally
shared among all. The following circumstances are creating unwelcome interruptions to
the Indian retail industry. The industry hopes for the best alternations to overcome the
acrimonious situations. Markets in recession worldwide and India too: The current
meltdown in the world markets is shaking the globe today. Not even a single country
seems to be off the hook. The high level of inflation has been a wet blanket for the global
markets. The roots of the world markets are nearly pulled away with the heavy downfall
of the American financial giants. Amongst many countries, India too not exempted from
the impact of world financial crisis. All this is leading to a temporary recess for the
markets from a regular busy schedule. However, These fluctuations are not new for
global market. For the decades long, markets, across the world, have been witnessing
such ups and downs. But the ultimately fact is that the market growth rate is always
constantly high when comparing to such downfalls Economic slowdown The Financial
crisis is adding to the pressure on global economies. The International Monetary Fund
(IMF) now sees the world entering a major slowdown.
7. 7. The Indian retail industry has expanded by 10.6 per cent between 2010 and 2012 and
is expected to increase~ 7 ~ Market Size The foreign direct investment (FDI) inflows in
single-brand retail trading during April 2000 to June 2013 stood at US$ 96.96 million, as
per the data released by Department of Industrial Policy and Promotion (DIPP). 1.4
Online Retail Indian consumers are demonstrating an increasing interest in online
shopping, thanks to the surging number of online users. The growing online retail market
has become a very lucrative business for international majors as well. For instance,
internet giant Amazon, which was dedicated to the biggest markets until now, has
commenced an India-centric website in June 2013. India has surpassed Japan to
become the world’s third largest Internet user after China and the United States with
almost 74 million Internet users, stated global digital measurement and analytics firm
comScore. In addition to that, online retail web sites have witnessed a 65 per cent rise in
the traffic from the previous year, according to a survey by the Associated Chambers of
Commerce and Industry of India (Assocham). The survey indicated that the market for
online shopping in India, estimated to be around Rs 52, 000 crore (US$ 8.19 billion), is
expanding at a very fast pace. The trend is not only catching up in metros, but in smaller
towns and cities as well.to US$ 750-850 billion by 2015, according to a report by
Deloitte. Food and Grocery is the largest category within the retail sector with 60 per cent
share followed by Apparel and Mobile segment.
8. 8. On the similar lines, Meanwhile, Villeroy Italian luxury goods firm Bulgari is awaiting
Foreign Investment Promotion Board (FIPB)’s nod to set up exclusive retail stores in
India that will sell high-end jewellery, watches and accessories under its 'Bvlgari' brand.
Part of the French luxury major LVMH Group, Rome- headquartered Bulgai has made its
application under the single-brand route.  Significant value to ultra-luxury developments
- be in residential, hotel, commercial, retail or golf. International luxury products major are
also very bullish on Indian retail market.  American real estate firm Trump Organization
is very positive on the Indian real estate sector. The company has bog growth plans for
the Indian market and is scouting for a local partner to achieve its goals. Trump reveals
that India has always been an important growth market for them and they want to
 harness the growing demand for luxury products in the sub-continent. It believes that the
brand will add  Sahara Q Shop has recently initiated its operations with 100 exclusive
convenience stores in Delhi/ NCR. The company is planning to open 400 such stores by
March 2014 in the region. Currently, Sahara Q operates 901 stores in 12 states and by
the end by FY14; the company intends to have 10,000 such stores across India. About
2,000 of these will be opened in metros. ~ 8 ~ Retail Industry: Key Developments and
Investments & Boch AG, the Germany- based bath, wellness and tableware firm, has
partnered with Genesis Luxury Fashion to commence its operations in single-brand retail
trade in India. Villeroy & Boch’s application, seeking 50 per cent equity in the joint
venture (JV) Company for single-brand retail trade, has recently got a nod from the FIPB.
The FDI infusion in the JV would be to the
9. 9. Genesis Luxury Fashion, that has brands such as Paul Smith, Bottega Veneta, shoe
brand Jimmy Choo, Italian label Etro and Armani and home and personal care products
from Crabtree and Evelyn under its business in India, will exclusively manage the
distribution of Villeroy~ 9 ~ tune of Rs 1.12 crore (US$ 176, 949.21). & Boch tableware
products in the country. The alliance ensures the establishment of a distribution network
through the opening of Villeroy & In a bid to tap the branded footwear market in India,
which is estimated to be about Rs 30,000 crore (US$ 4.74 billion), Aero Group (known for
its flagship Woodland brand) is planning to revive one of its old brands, Woods. The
company is contemplating to open around 30 new, revamped Woods stores in 2013. The
eight-year-old brand would now lay its focus on the fashion quotient, rather than the
typical outdoor, rough and tough image of Woodland, and will have more of the range for
women. Government Initiatives In order to attract more of foreign funds and woo global
majors such as Wal- Mart ad Carrefour, the Government has further liberalized rules for
international investment in multi-brand retail formats. Foreign retailers will now be
allowed to open stores in cities that have a population of less than one million. Earlier,
supermarkets could only commence their operations in 53 cities; the ones with more than
a million of population. A relaxation was permitted only in case of states that did not have
a single city with a population of one million. The initiative will now facilitate opening of
stores in cities such as Gurgaon and Aurangabad. Meanwhile, the Government of India
has recently approved 18 FDI foreign direct investment (FDI) proposals worth US$ 173
million in the single brand retail segment during April 2010 and May 2013. Out of these,
five proposalsBoch’s exclusive retail stores in India.
10. 10. ~ 10 ~ worth US$ 137.68 million were approved during the first two months of 2013-
14.Fashion brand Promod, France-based crockery maker Le Creuset, accessories firm
Fossil Inc and French sports giant Decathlon are some of the firms which have received
approvals to open retail stores under the single- brand retail policy. The Government had
raised the FDI cap in single-brand retail to 100 per cent from 51 per cent in January
2012. Road Ahead The domestic retail market is projected to be worth US$ 1.3 trillion by
2020, stated Mr KV Thomas, the Consumer Affairs Minister. Future prospects pose a
tremendous growth opportunity for retail players- domestic as well as foreign. He further
mentioned that the consumer behavior is also experiencing a transition due to upcoming
western concepts like online shopping and direct selling. Another report by Booz & Co
and RAI expects that the overall Indian retail sector would grow 9 per cent in 2012-16,
with organized retail growing at 24 per cent or three times the pace of traditional retail
(which is expected to expand at 8 per cent). Deloitte also seconds this forecast and
expects that organized retail, which constitutes 8 per cent of the total retail market, will
gain a higher share in the growing pie of the retail market in India. Various estimates put
the share of organized retail as 20 per cent by 2020. Exchange Rate Used: INR 1 = US$
0.0163488 as on April 25, 2014
11. 11. ~ 11 ~ CHAPTER 2: COMPANY PROFILE 2.1 Introduction to Pantaloons Pantaloons
is India's fastest growing premium lifestyle apparel company. With innovative designs,
concepts and products, the company brings the latest trends in fashion and clothing
styles to the apparel market. The company offers an incredible and complete one-stop
shopping experience to its buyers through its vast collection of more than 100 prestigious
brands for the discerning fascinates. The 81 aesthetically designed stores spread across
the country display a range of classy and trendy merchandise that truly lives up to
 Pantaloons’ maxim of ‘fresh fashion’. A typical Pantaloons store is spread across a
sprawling retail space of about 28,000 sq. ft., comprising a brand portfolio that runs
across a wide gamut of styles that spell class. The collection includes ready-to-wear
western and ethnic apparel for men, women and kids, complemented by an exhaustive
range of accessories. The women’s section houses the private labels — Bare Denim,
Bare Leisure, Rig, Annabelle, Honey, and Ajile — in western wear, as well as the
choicest ethnic wear from RangManch, Trishaa and Akkriti. Popular brands like Lee
Cooper, Biba and Wrangler are also available. The private labels for men in western
wear include Lombard, Rig, Bare Denim, Bare Leisure and JM Sport apart from trendy
brands like Urbana, Scullers, John Miller, and Indigo Nation. Akkriti provides a wide
selection of ethnic wear. Kids can choose from private labels like Bare Denim, Bare
Leisure, Rig, or indulge in exclusive brands like Lee Cooper Juniors, Chalk, Pink & Blue,
and Sach in addition to international brands like Barbie and Disney. For the ethnic look,
they can opt for traditional wear from Akkriti.
12. 12. ~ 12 ~ Pantaloons offers much more than just apparel. Customers can shop from an
assortment of watches from renowned international brands like Tommy Hilfiger, Esprit,
Kenneth Cole, Citizen, Timex, and Titan, among other brands. Trendy sunglasses from
Polaroid, Guess, Police, Scott, I Dee and Allen Solly are also available. The accessories
and beauty segments display an attractive collection of lady’s handbags from Lavie,
Caprese, Fiorelli and Fastrack. Also available are products from color cosmetic brands
such as Bourjois, Chambor, Deborah, Faces, Revlon, Maybelline, and Lakmé, as well as
a wide collection of exotic fragrances. With its overwhelming repertoire of lifestyle apparel
brands, Pantaloons is focused on growth while continuing to create fresh fashion.
Pantaloons is recognised by its warm personalised service that completes the core
proposition of this trendy chain. 2.2 Introduction to Aditya Birla Aditya Birla Nuvo Aditya
Birla Nuvo Ltd. (ABNL) is a US$ 4.75 billion conglomerate by revenue size. It is part of
the Aditya Birla Group, a US$ 40 billion Indian multinational. Having a market cap of
~US$ 2.5 billion (Rs. 14,000 Crore) as on 23 July 2013, ABNL is present across Financial
Services, Telecom, Fashion & Lifestyle, IT-ITeS and manufacturing businesses.
Anchored by over 69,000 employees, ABNL touches lives of more than 125 million
Indians.
13. 13. ~ 13 ~ ABNL is also a prominent player in Private Equity, Wealth Management, and
Broking & General Insurance Advisory space. Besides its successful presence across a
wide gamut of sectors and verticals, Aditya Birla Nuvo Limited ['ABNL'] now holds a
controlling stake in Pantaloons format stores which was previously controlled by the
Future Group. With this strategic development, both ABNL and Future Group will now
work closely for deriving operational synergies in terms of back-end and supply chain,
apart from several other mission-critical value drivers of the business. Moreover, the
leadership teams of both groups have also committed to oversee a fashion council, which
has been set up to explore contemporary trends in new-age fashion wear, thereby driving
further value-creation for Pantaloons' stakeholders by keeping it at the leading-edge of
the fashion industry. A US $40 billion corporation, the Aditya Birla Group is in the League
of Fortune 500. It is anchored by an extraordinary force of over 136,000 employees,
belonging to 42 different nationalities. The Group has been ranked Number 4 in the
Global 'Top Companies for Leaders' survey and ranked Number 1 in Asia Pacific for
2011. Over 50 per cent of its revenues flow from the overseas operations. The Group
operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt,
France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,
Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa,
Spain, Sri Lanka,
14. 14. ~ 14 ~ Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and
Vietnam. 2.3 Aditya Birla took over Pantaloons Retail chain Aditya Birla Nuvo Ltd
(ABNL), a unit of the $28 billion (Rs.1.5 trillion) Aditya Birla Group, will acquire a majority
stake in the Pantaloons retail chain of debt-laden Pantaloons Retail (India) Ltd (PRIL),
India’s largest listed retail company by revenue. The proposed transaction, which will
help the Future Group’s PRIL pare debt, is likely to be completed within 8-10 months,
subject to the scheme of arrangement being finalized, due diligence, and statutory and
 other approvals, ABNL said in a statement. Future Group founder Kishore Biyani has
been looking to reduce debt that’s been accumulated by rapid expansion as PRIL has
sought to build scale rapidly. Meanwhile, the intense political opposition to foreign direct
investment in multi-brand retail has meant that any plans of selling stakes to overseas
retail companies had to be shelved. The new, separated unit will eventually become a
subsidiary of ABNL, the other units of which include Madura Fashion and Lifestyle, and
Jaya Shree Textiles. The separation will help PRIL, which had debt of Rs.5,800 crore as
of December 2011, reduce this amount by Rs.1,600 crore, according to a PRIL
statement. “This deal is being done to reduce debt as non-core business transactions like
Future Capital are taking some time to finalize,” said Abhishek Ranganathan of MF
Global Sify Securities India Pvt. Ltd.
15. 15. ~ 15 ~ On Monday, ABNL, which owns apparel brands such as Louis Philippe and
Allen Solly, said it will infuse Rs.1,600 crore in the Pantaloons department retail chain
business by issuing debentures worth Rs.800 crore at mutually agreed terms and taking
on debt of Rs.800 crore. An investment banker, who did not want to named, said it
wouldn’t be possible to compute the value of the deal till the “mutually agreeable” terms
are made public. After the separation, the debentures will be converted into equity shares
of the resulting entity, ABNL said in the release. PRIL will hive off the Pantaloons chain.
ABNL will make an open offer for a minimum 26% to the shareholders of the resulting
unit. After its listing and on conversion of the debentures into equity, ABNL’s holding will
be a minimum 50.01%. The resulting unit will become a subsidiary, ABNL said in the
statement. Rakesh Biyani, managing director at PRIL, and Kailash Bhatia, an executive
director at the firm, will continue to manage the Pantaloons chain. A Fashion Council will
be set up, comprising the objective of fully leveraging the strengths of Madura Garments
and Pantaloons.JM Financial Ltd acted as the sole financial adviser to the transaction,
PRIL said in the statement. Future Group, which has retail businesses under PRIL in
food, fashion, home and consumer electronics, besides other segments such as financial
services, has been looking to reduce debt. “This announcement is just the first in a series
of announcements that will happen over the next couple of months by June which will
see the debt reduce,” a company spokesperson said. Pantaloons is present in 35 cities
with 65 stores and 21 factory outlets covering a total retail space of more than 2 million
sq. ft. It is expected to post
16. 16. ~ 16 ~ sales of around Rs.1,700 crore by the end of the fiscal year in June 2012,
PRIL said in the release. Shoppers Stop Ltd, which runs the Shoppers Stop department
store chain, crossed revenue of Rs.2,000 crore in fiscal 2012 with a footprint of 50
outlets. The origin of PRIL can be traced back to 1987, when Kishore Biyani founded
Manz Wear Pvt. Ltd to manufacture trousers bearing the brand name Pantaloon. It went
public in 1991 and changed its name to Pantaloon Fashions in the same year, and to
Pantaloon Retail in 1999. Over the last one year, the market capitalization of PRIL has
eroded by Rs 1,598.72 crore, from Rs 5,793.06 crore to Rs 4,194.34 crore. PRIL shares
jumped 9.25% to close at Rs 187.75 each, while ABNL shares rose 0.26% to end at Rs
933 apiece on BSE. The benchmark Sensex gained 0.76% to close at 17,318.81 points.
In the last one year, PRIL has lost 31.69% and ABNL has gained 6.99%. Earlier this
year, the Aditya Birla Group undertook a management recast at food and groceries
business Aditya Birla Retail Ltd, as it looked to cut losses by shutting down more than
10% of its unviable supermarket stores run under the brand name More. The revamp
saw Madura Fashion chief executive officer (CEO) Pranab Barua replacing Thomas
Varghese as CEO of Aditya Birla Retail in early March. Varghese has taken over as head
of Jaya Shree Textiles. “This marks a unique coming together of brands and enterprise
that will create significant value for customers, suppliers and all stakeholders,” said
Kishore Biyani, who is also group CEO of Future Group, the parent of Pantaloons. “The
proposed acquisition is in line with our strategic intent to be on the top of the league and
to create the largest integrated branded fashion player in the country through an
extension into the value segment. This acquisition will catapult ABNL to the pole position
in the branded fashion space in all the
17. 17. ~ 17 ~ segments with a pan-India presence,” said Kumar Mangalam Birla, chairman
of ABNL. 2.4 Pantaloons Launches “Woman’s Wednesday” Pantaloons, the newly
 acquired business by the Aditya Birla Group, one of India’s leading international
conglomerates, is a powerhouse of fresh fashion and innovation. Pantaloons cater to the
discerning and trendy Indian consumer. Pantaloons apparels spell comfort and elegance,
combined with a ‘freshness’ that is unparalleled. The styles cover a gamut of ready-to-
wear western and Indian apparel for men, women and kids, in addition to accessories
and exotic fragrances. With a strong national presence in 77 exclusive stores across 38
locations in the country, Pantaloons houses over 100 prestigious brands that have
something fresh for everyone. The brand has announced the launch of their new property
‘Woman’s Wednesday’ at Phoenix Mills, Lower Parel. This indigenous concept was
created in order to celebrate young fashionistas and to give them an opportunity to have
fun while the mid week woes bear on them. “Revel, indulge, pamper…” sums up what
Woman’s Wednesday has to offer. The weeks to come will see select Pantaloons stores
come alive to Woman’s Wednesday celebrations every first Wednesday of the month.
Right from professional advice from style advisors, to do-it-yourself makeup and styling
workshops, Woman’s Wednesday will be an action packed stylish affair. Women can also
turn up with their gang of girls and have an evening of fun and games at Pantaloons. The
thought behind ‘Woman’s Wednesday’ was to give women more reason to indulge
themselves at a Pantaloons store near them. The property saw a grand launch by ex-
Miss India and Bollywood actress, Gul Panag. Pantaloons is also creating a 12 page
calendar in association
18. 18. ~ 18 ~ with Cosmopolitan that will feature stylish, quirky, expressive young girls
attired in Pantaloons apparel from different walks of life. Entries have been invited from
Pantaloons stores across the country. Entries will be shortlisted and 12 lucky girls will get
a once in a lifetime opportunity to feature in this calendar. Commenting on the occasion
of the launch, Shital Mehta, CEO, Pantaloons Fashion & Retail said, “Pantaloons focuses
on customer delight and nurturing fashion sensibilities. ‘Woman’s Wednesday’ is one
more fashion step in that direction. This marketing initiative is aimed at engaging with
every young woman customer and thereby encourages her to express herself through
the way she styles herself and fashionably looks at her wardrobe. We aim to strengthen
our dedication towards our consumers by providing the best of what Pantaloons has to
offer.” 2.5 Pantaloons Brands:- The company has 24 domestic and foreign brands that
were developed independently of the retail presence of the group. These brands are
present in every segment within the fashion space including, menswear, activewear,
partywear, women’s ethnic and formal wear, kidswear, footwear and accessories and are
present across various price points. While many of the brands have been developed by
the company over a decade, the company also has exclusive licensees and joint
ventures of global brands. While all the company’s brands are sold through the
company’s retail chains, these brands also distributed through independent distribution
channels,
19. 19. ~ 19 ~ exclusive brand outlets and other modern retail chains like Lifestyle, Shoppers’
Stop, Reliance Trends, Prateek and Mega Mart. Celio is an iconic French brand that is
operating with the company as a joint venture since June 2008. The brand offers a wide
selection of casual wear and denim-wear and also has a chain of 30 exclusive brand
outlets in key cities across the country. UMM is an Italian brand born out of a music label
– Underground Music Movement – that has over the years evolved into a fashion brand.
The Company owns the exclusive rights to the brand in India and is among the most
popular casual wear brands in the country. Lee Cooper is a heritage global denim brand
dedicated to style since 1908. Future Group owns the exclusive license to manufacture
and market the brand in categories like denims, trousers, jackets, shirts and footwear.
20. 20. ~ 20 ~ Holii brand was launched in 2009 as part of a joint venture partnership
between Hidesign and Future Group. Aimed at bringing in a distinct Indian design
aesthetic to bags and accessories along with the high production standards of Hidesign,
the company shares the vision to be a distinct everyday affordable luxury accessories
brand. The brand is sold from over 70 locations across India through multi brand
departmental stores, airports and exclusive boutiques. Bare is the company’s largest
brand with presence in casual wear, denim- wear and kids-wear. Positioned with the
tagline, “Keeping it Real,” Bare Denim range includes casual tops, t-shirts, denims and
 winter-wear for men and women, Bare Casual range includes cotton and linen shirts,
khakis, corduroys and cotton trousers for men and Bare Kids offers a wide range of
clothing options for kids. Scullers is positioned for those who celebrate life offering stylish
sporty casual wear. The brand is best known for its legendary chinos. The brand is
distributed through EBOs as well as MBOs.
21. 21. ~ 21 ~ Indigo Nation brand focuses on the "Rockstar of Youngistan" who believes in
the mantra of “CHANGEISM”. Converse was established in 1908, the Converse brand
has built a reputation as “America’s Original Sports Company”. Spalding has long been a
leader of innovation and quality in the sporting goods category. Urban Yoga brand offers
yoga apparel and accessories with a collection of casual wear that compliments active
lifestyle co-created thoughtfully with yoga practitioners.
22. 22. ~ 22 ~ RIG is positioned as utility clothing for the ‘brave new world,’ and has products
for men, women and kids and is now looking at foraying into accessories as well.
Manchester United is a premium lifestyle sportswear launched in India in December 2011
through an exclusive licensing arrangement with Manchester United Football Club.
Jealous 21 is India's leading exclusive women's wear brand, revolutionized the jeans
market for women by launching jeans that fits every body type of Indian women. The
brand offers an elaborate range of Hip-fit Jeans is an equally stunning range of tops &
tees. Oozing with oomph, this brand is designed to infatuate today's young women.
23. 23. ~ 23 ~ Clarks offers contemporary looks inspired by the catwalk to ‘Everyday
footwear’. Operating in North America, Europe, and China; launched in India in 2011
through a joint venture with Future Group. The brand offers range of branded boots,
sandals and shoes for men and women. The brand already has 24 exclusive brand
outlets across the country. 2.6 Mission and Vision:- Mission To deliver superior value to
our customers, shareholders, employees and society at large. Vision To be a premium
global conglomerate with a clear focus on each on each of the business. 2.7 Board of
Directors:-
24. 24. ~ 24 ~ Dr. Rakesh Jain Mr. Pranab Barua (Managing Director) Mr. Sushil Agarwal Mr.
P.Murari Mr. Bharat Patel Managing Team:- Mr. Shital Mehta Mr. Chandrashakhar
Chavan Mr. Manot Kedia
25. 25. ~ 25 ~ CHAPTER 3: RESEARCH METHODOLOGY General Introduction: This study
about “customer buying behavior” is conducted to know about the buying behavior of the
customers in shopping with pantaloons. This study is limited to Pantaloons which is
located in Bannerghatta main road. Customer buying behavior Customer Buying
Behavior is the study of individuals and the processes they use to select, secure, use,
and dispose of products, services, experiences, or ideas to satisfy needs and the impacts
that these processes have on the consumer and society. Customer behavior is
increasingly a part of strategic planning for the future investment and growth of any
industry. Retail industry or precisely to say apparel industry is no exception. Customer
can either be subjective or objective, testing the persuasiveness of brand names. Retail
stores selling the products also play an important role in swaying the decisions of
customer. The whole package or visual appeal of the retail outlet can determine sales, or
the service of the sales ladies or the clerks. Furthermore, customer may choose
particular products/brands not only because these products provide the functional or
performance benefits expected, but also because products can be used to express
customers’ personality, social status or affiliation or to fulfil their internal psychological
needs, such as the need for change or newness. Customer behavior refers to the mental
and emotional process and the observable behavior of customers during searching,
purchasing and post consumption of a product or service. Consumer behavior involves
study of how people buy, what they buy, when they buy and why they buy. It blends the
elements from Psychology, Sociology, Social psychology, Anthropology and Economics.
26. 26. ~ 26 ~ Factors affecting Customer buying behavior:- Customer buying behavior is
influenced by the major three factors: 1. Social Factors 2. Psychological Factors 3.
Personal Factors. 1). Social Factors Social factors refer to forces that other people exert
and which affect customers’ purchase behavior. These social factors can include culture
and subculture, roles and family, social class and reference groups. 2). Psychological
Factors These are internal to an individual and generate forces within that influence
 her/his purchase behavior. The major forces include motives, perception, learning,
attitude and personality. 3). Personal Factors These include those aspects that are
unique to a person and influence purchase behavior. These factors include demographic
factors, lifestyle, and situational factors. 3.1 Introduction to the study:- Pantaloons want to
study the buying behavior of the customers so that they can analyze the buying patterns
of the customers and improve their efficiency of product offers and services. This study
also helps them in improving the conversion ratio and customer traffic.
27. 27. Research is done among the people who interact with Customer service desk (CSD)
after their purchase. 3.5 Research Methodology: The research methodologies are using
primary data collection and secondary data collection. Here primary data collection is
performing through questionnaire. A sample size of 100 customers is taken randomly.
The sample is limited to the visitors of Pantaloons at B.G Main road. Research is done
among the people who interact with floor staff before buying merchandise.  Research is
done among the people who frequently shop at Pantaloons.  Research is done among
the group of people shopping at Pantaloons located in Bannargatta main road.  To know
the impact of the marketing and channels of communication on the customers buying
behavior. 3.4 Scope of the study:-  To study the quality of service provided at
Pantaloons to support buying behavior.  To study the factors effecting the phases of
buying behavior.  To know about the buying behavior and satisfaction level of the
customers. ~ 27 ~ 3.2 Statement of the problem:- To study the customer buying
behavior at Pantaloons, through accessing the effectiveness of service delivered. 3.3
Objectives of the study:-
28. 28. Sample frame As we have selected simple random sampling the researcher had the
freedom to select the sample randomly where there is equal chance for every sample to
be taken and includes only the shoppers at Pantaloons at B.G. Main road. Sampling
Method The sampling method used to conduct the research is Simple Random Sampling
which helps all units from the sampling frame have an equal chance to be drawn and to
occur in the sample.  Sample size Sample size taken to conduct the research is 100 
The research design chosen for this research is Descriptive Research design as there is
plenty of data available as secondary data and a lot of researches are done before.
Sampling Design: ~ 28 ~ The sample is collected by approaching respondents
personally and the people who bought something from the store. The sampling chosen is
a random sampling so that every respondent has equal chance to respond. The collected
data in the form of questionnaires is then processed and the analysis is done so that we
can suggest improvements based on findings. Research Design:
29. 29. Sample size of the study is limited to 100. As the analysis is based on the
responses given by the individuals, the study may not always be reliable.  The study is
limited only to the visitors of Pantaloons located in B.G. Main road.  The questionnaire
consists of questions which are based on nominal scale Likert scale. Questionnaire
Design The questionnaire is prepared by researcher using open ended, closed ended,
dichotomous and multi-dichotomous questions. 3.7 Limitations of the study: 
Quantitative, Quantitative data Scaling Design  Primary data is collected using a random
sampling technique and with the help of questioner. The data is collected personally by
approaching the sample. Secondary Data  Sample unit The sample unit considered here
are the people who visit pantaloons and other retail formats to purchase merchandise in
pantaloons fresh factions. 3.6 Data Collection Design:- Primary Data ~ 29 ~
30. 30. ~ 30 ~ CHAPTER 4: DATA ANALYSIS Gender Table No:1 Table showing distribution
of Gender Options No. of respondents % of respondents Male 48 42% Female 52 58%
Total 100 100% Graph No 1: Graph showing distribution of Gender Inference: The above
graph indicates that the respondents are mostly women. 1. Is the store conveniently
located? 42% 58% Persentage Male Female
31. 31. ~ 31 ~ Table no 2: Table showing distribution of respondent’s opinion about the
convenience of location. Options No of Respondents % of Respondents Strongly agree
21 21% Agree 45 45% Neutral 27 27% Disagree 5 5% Strongly disagree 2 2% Total 100
100% Graph No 2: Graph showing distribution of respondent’s opinion about the
convenience of location. Inference: 0 5 10 15 20 25 30 35 40 45 Strongly agree Agree
 Neutral Disagree Strongly disagree 21 45 27 5 221% 45% 27% 5% 2% No of
Respondents % of Respondents
32. 32. ~ 32 ~ The above graph indicates distribution of respondent’s opinion about the
convenience of location.45% of the respondents Agree that the store is conveniently
located. 2. What factors will you consider while buying merchandise? Table no 3: Table
showing distribution of respondent’s on what factors they consider while buying
merchandise. Options No of Respondents % Percentage Availability 10 10% Quality 58
58% Trends 20 20% Price 12 12% Total 100 100% Graph no 3: Graph showing
distribution of respondent’s on what factors they consider while buying merchandise.
33. 33. ~ 33 ~ Inference: The above graph indicates that most of the respondents are
consider the quality while buying merchandise. 3. Which other stores do you consider
while buying merchandise? Table no 4: Table showing distribution of respondent’s
opinion that which other stores do they consider while buying merchandise. Options No
of Respondents % Percentage Reliance trends 13 13% Central 34 34% Brand Factory
35 35% Shoppers Stop 18 18% Total 100 100% 0 10 20 30 40 50 60 Availability Quality
Trends Price 10 58 20 12 10% 58% 20% 12% No of Respondents %Percentage
34. 34. ~ 34 ~ Graph No 4: Graph showing distribution of respondent’s opinion that which
other stores do they consider while buying merchandise. Inference: The above graph
indicates that apart from this store most of the customers prefer to go to Brand factory
and Central. 0 5 10 15 20 25 30 35 Reliance trends Central Brand Factory Shoppers
Stop 13 34 35 18 13% 34% 35% 18% No of Respondents % Percentage
35. 35. ~ 35 ~ 4. How did you come to know about the offers at pantaloons? Table No 5:
Table showing distribution of respondent’s opinion about the offers at pantaloons.
Options No of Respondents % Percentage News Papers 32 32% SMS 10 10% E-Mail 3
3% Others 55 55% Total 100 100% Graph No 5: Graph showing distribution of
respondent’s opinion about the offers at pantaloons. 0 10 20 30 40 50 60 News Papers
SMS E-Mail Others 32 10 3 55 32% 10% 3% 55% No of Respondents % Percentage
36. 36. ~ 36 ~ Inference: The above graph indicates that there is a lot of scope in
communicating the offers at pantaloons through SMS and E-mailers with the increase in
technology. 5. Rate the promotional offers at Pantaloons? [5 being the highest] Table No
6: Table showing distribution of respondent’s rating about the promotional offers at
Pantaloons. Option No of Respondents % Percentage 5 15 15% 4 60 60% 3 15 15% 2 7
7% 1 3 3% Total 100 100% Graph No 6: Graph showing distribution of respondent’s
rating about the promotional offers at Pantaloons.
37. 37. ~ 37 ~ Inference: The graph indicates that most of the respondents gave a rating of 3
or 4 this shows that an improvement in offers can be made to retain customers. 6. Do the
store have a wide range of products? Table No 7: Table showing distribution of
respondent’s opinion about the range of products in the store. Option No of Respondents
% Percentage Strongly agree 12 12% Agree 45 45% Neutral 29 29% Disagree 14 14%
Strongly disagree 0 0% Total 100 100% 0 10 20 30 40 50 60 1 2 3 4 5 15 60 15 7 315%
60% 15% 7% 3% No of Respondents % Percentage
38. 38. ~ 38 ~ Graph No 7: Graph shows distribution of respondent’s opinion about the range
of products in the store. Inference: The graph indicates that the store needs to provide a
very wide range of products and merchandise. 0 5 10 15 20 25 30 35 40 45 Strongly
agree Agree Neutral Disagree Strongly disagree 12 45 29 14 012% 45% 29% 14% 0%
No of Respondents % Percentage
39. 39. ~ 39 ~ 7. Do the staff provide proper information regarding the merchandise? Table
No 8: Table showing distribution of respondent’s opinion about the staff response
regarding the merchandise in the store. Option No of Respondents % Percentage
Strongly agree 40 40% Agree 45 45% Neutral 13 13% Disagree 2 2% Strongly disagree
0 0% Total 100 100% Graph No 8: Graph showing distribution of respondent’s opinion
about the staff response regarding the merchandise in the store. 0 5 10 15 20 25 30 35
40 45 Strongly agree Agree Neutral Disagree Strongly disagree 40 45 13 2 040% 45%
13% 2% 0% No of Respondents % Percentage
40. 40. ~ 40 ~ Inference: Graph indicates that the sales representatives of the respective
brands are well aware of the merchandise. 8. What is your satisfaction level with the
shopping? Table No 9: Table showing distribution of respondent’s opinion about the
 satisfaction level of their shopping. Option No of Respondents % Percentage Highly
satisfied 14 14% Satisfied 58 58% Neutral 23 23% Dissatisfied 3 3% Highly dissatisfied 2
2% Total 100 100%
41. 41. ~ 41 ~ Graph No 9:Graph showing distribution of respondent’s opinion about the
satisfaction level of their shopping. Inference: Graph indicates the satisfaction level of the
customers in extremely well and are satisfied. 0 10 20 30 40 50 60 Highly satisfied
Satisfied Neutral Dissatisfied Highly dissatisfied 14 58 23 3 214% 58% 23% 3% 2% No of
Respondents % Percentage
42. 42. ~ 42 ~ 9. How friendly do you find the employees of this store? Table No 10: Table
showing distribution of respondent’s opinion about employee’s friendliness towards
customers. Options No of respondents % Percentage Very Friendly 33 33% Somewhat
Friendly 36 36% Friendly 27 27% Not at all Friendly 4 4% Total 100 100% Graph No 10:
Graph showing distribution of respondent’s opinion about employee’s friendliness
towards customers. 0 5 10 15 20 25 30 35 40 Very Friendly Somewhat Friendly Friendly
Not at all Friendly 33 36 27 4 33% 36% 27% 4% No of respondents % Percentage
43. 43. ~ 43 ~ Inference: Graph indicates that maximum of the respondents are feel that
employees in the store are very friendly towards the customers. 10. How competitive do
you find the prices at store? Table No 11: Table showing distribution of respondent’s
opinion about price competitive at the store. Options No of respondents % Percentage
Very Competitive 15 15% Somewhat competitive 32 32% Competitive 40 40% Not
Competitive 13 13% Total 100 100%
44. 44. ~ 44 ~ Graph11: Graph showing distribution of respondent’s opinion about the price
competitive at the store. Inference: Graph indicates that maximum of the respondents are
feel that the price of the store is competitive when compare with the other stores. 11.
How is the customer care response when you approach them? Table 12: Table showing
distribution of respondent’s opinion about the customer care response. Options No of
respondents Percentage good 25 25% Best 48 48% Average 20 20% None 7 7% Total
100 100% 0 5 10 15 20 25 30 35 40 Very Competitive Somewhat competitive
Competitive Not Competitive 15 32 40 13 15% 32% 40% 13% No of respondents %
Percentage
45. 45. ~ 45 ~ Graph12: graph showing distribution of respondent’s opinion about the
customer care response. Inference: Graph indicates that maximum of the respondents
are satisfied with the responses of customer care division at the pantaloons whenever
there is an issue. 12. Will you purchase again? Table No 13: Table showing distribution
of respondent’s opinion about repurchase in pantaloons. Options No of Respondents
Percentage Definitely will 65 65% Probably will not 10 10% Not sure 25 25% Total 100
100% 0 5 10 15 20 25 30 35 40 45 50 good Best Average None 25 48 20 7 25% 48%
20% 7% No of respondents % Percentage
46. 46. ~ 46 ~ Graph No 13: Graph showing distribution of respondent’s opinion about
repurchase in pantaloons. Inference: Graph shows that the respondents are brand loyal
towards center and are willing to purchase again at pantaloons. 0 10 20 30 40 50 60 70
Definitely will Probably will not Not sure 65 10 25 65% 10% 25% No of Respondents %
Percentage
47. 47. ~ 47 ~ CHAPTER 5: FINDINGS 5.1Findings: A. From the questionnaires: 1. From the
location of the shoppers it is clear that many people are brand loyal to pantaloons and
come over from almost all parts of Bangalore to shop at central. 2. Visual merchandising
of the store is good and all the staffs are well aware of the products (apparel and non-
apparel) and are good in communicating about the merchandise to the shoppers. 3. The
store is well decorated and the ambiance of the store is nice and it offers the shoppers a
wide range of products that so that they can shop well. 4. There is no proper
communication of the offers available at pantaloons through electronic media like e-mail
and SMS. Most of the respondents come to know about offers at pantaloons through
newspapers and other means (friends, relatives etc.,). 5. The satisfaction level and
experience of the customers with respect to their shopping is good and they want to
purchase again which shows pantaloons is good in customer retention.
48. 48. ~ 48 ~ B. From the interaction with customers: 1. Most of the customers who comes
from far places feel that the parking is a problem and this happens when the customer
 traffic is more. 2. Some of the customers are not informed about the offers that are
happening in pantaloons mall and there has been a miscommunication by some staff. 3.
Some customers felt that the employees of the sore are very friendly all the time to help
in selections of merchandises. 4. Most of the customers feel that the VM at pantaloons is
very good and they have a updated collection all the time. 5. Some customers feel that
the merchandise is placed closely and which gives a clumsy look which makes decision
sometimes difficult.
49. 49. ~ 49 ~ Chapter 6 : Conclusions and Recommendations 6.1Suggestions: 1. E-mail
and SMS can be used as an effective channel of communicating the offers to the
customers. 2. Proper communication is to be provided to the customers through sales
people so that there will be no confusion in understanding the offers. 3. Aditya Birla group
has a tie-up with payback which is a loyalty program so the advertisements and
promotions should be communicated through mails and SMS to the respective
customers. 4. Better offers can be provided to loyal customers based on the frequency of
purchases and the type of purchases they make. 5. A play area for kids can be made so
that it can attract more customers.
50. 50. ~ 50 ~ 6.2Conclusion: The study helped me in understanding the retail sector and the
format of organized retail sector. It also helped in understanding the customer behavior
while purchasing the merchandise in the store and also about the factors that they
consider while making the purchases. Based in the study and the customer’s responses,
we can be able to fill the gap between the customer and their purchases. The study
helped in understanding the customer behavior and to identify their considerations during
the purchases. This study helps in finding the customers responses and to make the
services offered by pantaloons more efficient. The study helped in finding about the store
atmosphere, location, the merchandise offered at pantaloons, knowledge of the sales
force, customer care response and the offers provided by pantaloons.
51. 51. ~ 51 ~ ANNEXURE: Questionnaire: Name…………………………………………………
Age………………………………………………….. Gender: Male Female Location of
residence………………………….............................................. Phone
number………………………………………………………………. E-
mail………………………………………………………………………… 1. Is the store
conveniently located? A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly
disagree 2. What factors will you consider while buying merchandise? A. Availability B.
Quality C. Trends D. Price 3. Which other store do you consider while buying
merchandise? A. Reliance trends B. Central C. Brand factory D. Shoppers stop
52. 52. ~ 52 ~ 4. How did you come to know about the offers at pantaloons? A. Newspapers
B. SMS C. E-mail D. other 5. Rate the promotional offers at Pantaloons? [5 being
highest] 6. Do the store have a wide range of products? A. Strongly agree B. Agree C.
Neutral D. disagree E. Strongly disagree 7. Do the staff provide proper information
regarding the merchandise? A. Strongly agree B. Agree C. Neutral D. Disagree E.
Strongly disagree 8. What is your satisfaction level with the shopping? A. Highly satisfied
B. Satisfied C. Neutral D. Dissatisfied E. Highly dissatisfied 5 4 123
53. 53. ~ 53 ~ 9. How friendly do you find the employees of this store? A. Very Friendly B.
Somewhat friendly C. Friendly D. Not at all friendly 10. How competitive do you find the
prices at store? A. Very Competitive B. Somewhat Competitive C. Competitive D. Not
Competitive 11. How is the customer care response when you approach them? A. Good
B. Best C. Average D. None 12. Will you purchase again? A. Definitely will B. Probably
will not purchase C. Not sure 13. Any
suggestion…….......................................................................................
…………………………………………………………………………………..
…………………………………………………………………………………..
54. 54. ~ 54 ~ BIBLIOGRAPHY: http://www.futuregroup.in http://pantaloons.in/business.html
http://en.wikipedia.org/wiki/PRIL_Group
http://en.wikipedia.org/wiki/Customer_buying_behavoiur
http://adityabirla_pantaloons.co.in