Impact of Supply Chain Management in Organized Apparel Retail Outlets on sales & pricing

382 Pages·2014·3.35 MB·English

Impact of Supply Chain Management in
Organized Apparel Retail Outlets on sales
& pricing: A study in selected cities of
India
Thesis Submitted to the
Padmashree Dr. D. Y. Patil University,
Department of Business Management,
in partial fulfillment of the requirements for the award of
the Degree of

DOCTOR OF PHILOSOPHY
In
BUSINESS MANAGEMENT

Submitted by
Anurag Shrivastava
(Enrollment No. DYP-PhD-10610017)

Research Guide
Prof.Dr.Pradip Manjrekar
DEAN

PADMASHREE DR. D.Y. PATIL UNIVERSITY,
DEPARTMENT OF BUSINESS MANAGEMENT,
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai - 400 614

March - 2014
Impact of Supply Chain Management in
Organized Apparel Retail Outlets on sales
& pricing: A study in selected cities of
India
DECLARATION

I hereby declare that the thesis entitled “Impact of Supply Chain
Management in Organized Apparel Retail Outlets on sales & pricing: A
study in selected cities of India" submitted for the Award of Doctor of
Philosophy in Business Management at the Padmashree Dr. D.Y. Patil
University, Department of Business Management is my original work and the
thesis has not formed the basis for the award of any degree, associate ship,
fellowship or any other similar titles.

The material borrowed from other sources and incorporated in the thesis has
been duly acknowledged.

The research papers published based on the research conducted out of and in the
course of the study are also based on the study and not borrowed from other
sources.

Place: Navi Mumbai Signature of the student
Date: Anurag Shrivastava
Enrollment No. DYP-PhD-10610017

i
CERTIFICATE

This is to certify that the thesis entitled “Impact of Supply Chain
Management in Organized Apparel Retail Outlets on sales & pricing: A
study in selected cities of India” submitted by Mr. Anurag Shrivastava is a
bonafide research work for the award of the Doctor of Philosophy in Business
Management at the Padmashree Dr. D. Y. Patil University Department of
Business Management in partial fulfillment of the requirements for the award
of the Degree of Doctor of Philosophy in Business Management and that the
thesis has not formed the basis for the award previously of any degree,
diploma, associate ship, fellowship or any other similar title of any University
or Institution.

Also certified that the thesis represents an independent work on the part of
the candidate.

Place: Navi Mumbai

Date:

Prof. Dr. R. Gopal Prof. Dr. Pradip Manjrekar
Director & Head of The Department Dean & Research Guide

ii
ACKNOWLEDGEMENT

In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University
Department of Business Management, which has accepted me for Doctorate program
and provided me with an excellent opportunity to carry out the present research
project.

I wish to express my deep sense of gratitude to my Guide, Dr.Pradip Manjrekar,
Dean Department of Business Management for his guidance and useful
suggestions, which helped me in completing the project.

The thesis could not have been completed, if not for the help and encouragement
from various people. I would like to take this opportunity to thank Dr. R. Gopal,
Director and Head of The Department of Padmashree Dr. D. Y. Patil University
Department of Business Management for constantly motivating me and giving
valuable suggestions during the development of this thesis.

Words are inadequate in offering my thanks to my wife Mrs.Priti & my Daughter
Ms.Ria for their encouragement during the research work.

Place: Navi Mumbai
Date: Signature of the student

iii
Table of Contents
Chapter Sub Contents Page
No. section No.
Declaration i
Certificate ii
Acknowledgement iii
Table of Contents iv
List of Tables xiii
List of Figures xv
List of Abbreviations xvi
Executive Summary xvii
1. INTRODUCTION 1
1.1 Role of Organized apparel retailing 4
in marketing channels
1.2 Organized apparel Retailing functions in Distribution 5
1.3 The Relationship of Organized apparel 5
Retailers and Suppliers
1.4 Indian Organized apparel Retail Industry: 6
1.5 The wheel of supply chain in Organized 6
apparel Retailing
1.6 Managing the supply chain as framework- 7
effective supply chain management
1.7 Supply chain management 10
1.8 Influence of supply chain management 13
1.9 Supply chain vis-a vis organized retail outlets 17
1.9.1 Cost Based Competition 17
1.9.2 Just in Time Logistics 17
1.10 Enterprise Resource Planning 19
1.10.1 Activity Map with the cost based theme 20
(Value Proposition)
1.10.2 Time-based competition 20
1.10.3 Why Time is Important 21
1.11 The Lead Time Gap 22
1.12 Product Flow Analysis 24
1.13 Purpose of Study 24
2 LITERATURE REVIEW 26
iv
2.1 Supply chain management 26
2.2 Success of Online Retailing 41
2.3 Factors to consider 41
In Internet Retailing
2.4 Items sold through 41
Internet Retailing
2.5 Present and future Internet 42
Retailing areas
2.6 Information technology in Retailing 42
2.7 Types of technology used in Retailing 42
2.8 Interactive kiosks 43
2.9 Types of Retail theft 44
2.10 STRENGTH 46
2.10.1 Raw material base 46
2.10.2 Labour 46
2.10.3 Flexibility 46
2.10.4 Rich Heritage 46
2.10.5 Domestic market 47
2.11. WEAKNESS 47
2.11.1 More dependence on cotton 47
2.11.2 Spinning Sector 47
2.11.3 Fabric Processing 47
2.11.4 Poor Infrastructure 48
2.11.5 Low Labour Productivity 48
v
2.12 OTHER WEAKNESS 48
2.13 OPPORTUNITIES 48
2.13.1 Growing Industry 48
2.13.2 Market access through bilateral negotiation 49
2.13.3 Integration of Information technology 49
2.13.4 Opportunity in High Value Items 49
2.14 THREATS 49
2.14.1 Decreasing Fashion Cycle 49
2.14.2 Formation of Trading Blocks 50
2.14.3 Phasing out of Quotas 50
2.15 Food and apparel show the way 57
2.16 Shoppers don‟t stop 60
2.17 IT essential for growth 60
2.18 At the point of sale 64
2.19 Networking and Security 66
2.20 RFID for inventory control 68
2.21 Other technologies 69
2.22 Effective SCM: 76
2.22.1 Realistic ordering lead-times: 76
2.22.2 Averting problems 76
2.22.3 Facilitating resource planning and allocation 76
2.22.4 Four R‟s of SCM 76
2.22.5 Aggressive Expansion 78
2.22.6 Food Supply Chain Management 79
vi
2.22.7 Employee training and retention 79
2.22.8 Managing working capital 80
2.22.9 Diversifying into untapped rural areas 80
2.22.10 Backward Integration 81
2.22.11 Importance of Supply Chain and 82
Logistics Management
2.22.12 Aggressive Expansion 93
2.22.13 Four Supply Chain Management 93
2.22.14 Employee training and retention 94
2.22.15 Managing working capital 94
2.22.16 Inversifying into untapped rural areas 95
2.22.17 Backward Integration 95
2.22.18 Betting on Domestic Markets: 97
2.23 The Hidden Challenges 102
2.24 Strong Supply Chain 104
2.25 Gap Analysis 111
3 OBJECTIVES AND RESEARCH ETHODOLOGY 112
3.1 Objectives 113
3.2 Hypothesis 114
3.3 Research Methodology 115
3.3.1 Secondary Study 115
3.3.2 Primary study 115
3.3.3 Data Collection & Data Analysis 116
4. GROWTH AND DEVELOPMENT OF 118
ORGANIZED APPARELS OUTLETS MALLS
vii
4.1 Introduction 118
4.2 Mall development in India 120
4.3 Characteristics of a shopping mall 121

4.4 TATA Group 133
4.5 RPG Group 133
4.6 Reliance 133
4.7 AV Birla Group 134
4.8 Retail formats in India 134
4.9 Challenges facing Indian retail industry 135
4.10 The Future 135
4.11 Drivers of Growth in Retail: 136
4.12 Dynamic spaces 138
4.13 E - Retailing in India 139
4.14 Problems with Shipping 140
4.15 Offline presence 140
4.16 Products offered at discounted rates 140
4.17 Luggage Problem 140
4.18 Some online retailing sites in India: 141
4.19 Future of E-retailing in India 142
4.20 Niche retailing opportunities in India 142
4.21 Discount Retailing in India 143
4.22 Organized Retailing Growth In Semi-urban, Rural 144
Areas
4.23 Child‟s Play: Kids Apparel Retailing 146
viii