Ritu Wears

Ritu wears is a well known Retail brand present in North India. In 1965 Ritu Wears entered the Indian fashion Industry with a 200sq.ft children’s wear store owned by the enterprising Mrs J.D Sahni. It started offering fashion and lifestyle to consumer since its inception.

Ritu Wear has emerged as one of the favorite brands. It success can be measured by its popularity amongst consumer. From single outlet of 200 sq.ft, now Ritu wears has 10 stores which are present in Delhi NCR Region and parts of Punjab. By opening new stores Ritu Wears is reaching close to customers who were far away from the store.

Ritu wears is a customer centric company. Every decision of the company revolves around customer insight. From opening of new stores to expanding their range for clothes. It’s a brand for passionate. Ritu Wears has always believed that without passion there cannot be fashion.

Be it is any festival, or any occasion, Ritu Wears is always there for its customers with collection for that offers. Ritu Wears specialty lies in being a fashion store for the entire family. Ritu Wears want when customer think of family, fun or fashion, they should think of them. The reason why RW is a complete family store is that not only cater exquisite fashion products to the tastes and preferences of every age group but also provide lots of shopping extravaganza and fun for the entire family

Ritu wears has achieved so much popularity amongst its customers due to the efforts being put by lot of people at its back end operation team. Director of company Mr Sahni and their entire family pays lot of personal attention to every feedback from customer and they themselves do product testing before it reaches to final customers. This helps in minimizing customer complaints. Distribution chain of Retail house follows proper coordination from head office and store level which ensures that product reaches customers on time.

Demand and supply gap is reducing to minimal by the constant efforts of the management team. The team follows the strategy of 3 B’s i.e Belief-----Behaviour --------Business.

For eg; if you believe that you want to give best service to your customer then it will be reflected in your behavior (actions) and which result into good business for the organization.

For this organization structure is framed in such a way that there is proper communication and coordination within all levels where best solution/variety can be given to customer.

Once customers are in store him / she finds something for everyone. Visual Merchandising of stores is taken care by management to provide pleasant atmosphere for shopping. Signages and Branding make accessibility easy for customer.

Marketing team of store is very strong, they come up with innovative ideas every time to attract customers to store. Sometimes with footwear Carnival, sometime it’s with Mother’s Day special offers etc.

Ritu Wears is amongst the few fashion houses in India that has successfully initiated and redefined not just sense of dressing with its brand new collections but also the shopping experience itself along with establishing new avenues. The products in its portfolio include apparels for men and women in segments including formalwear, casual wear, ethnic wear, party wear; kids wear, accessories, footwear and a wide range of national and international brands in lifestyle category

Point of Purchase

Point of purchase can be understood as a place where sales are made, that place can be a mall, market or city. But we try to understand POP from retailer’s point of view it is an area surrounding the counter where customers pay.

Marketers have recognized the importance of identifying the value-added produce section as a destination point within the grocery store to stimulate consumer interest, impact purchase behavior and result in increase sales .

For marketers it POP is important because consumers tend to make purchasing decisions on very high-margin products or services at these strategic locations. Points of purchase may be real, as in the case of a "brick and mortar" store, or virtual, as in the case of an electronic retailer that sells goods and services over the internet.

There are various types of point-of-purchase displays, including window displays, counter displays; floor stands display bins, banners of any kind, and all types of open and closed display cases. Generally, these displays are created and prepared by the manufacturer for distribution to wholesalers or retailers who sell the manufacturer's merchandise. Often, a manufacturer will discount the cost of merchandise or in some other way compensate the retailer for using a point-of-purchase display.

Especially in case of value formats like Big Bazaar and Vishal mega mart. Gondolas and Bins are placed near cash counter so as to increase impulse purchase ,in these display bins projects range from grocery , toys, apparels , general merchandise like utensils , door mats etc are been placed. While waiting in queue people tend to purchase such stuffs.

ZARA

ZARA

Zara, a successful name in fashion industry, was established in 1975 in Spain. Amancio Ortega owner of Inditex group headquartered in Spain started now world famous retail apparel stores. Zara is known to develop a new product and set to its stores in just two weeks.

Zara has changed the way clothing industry works where deigning, production and delivery to the retailers requires period of six months. The design and distribution cycle of the company takes just 10 to 15 days in the whole process. The company prefers to invest their revenues in opening new stores instead of in advertising which is unusual strategy adopted by a company in fashion industry. The company has its own team of designers who design clothes on the emerging trends. They also customize clothes for some of their customers and design clothes on their demands. The other source of design comes from the informer, which moves around in crowd, listen to the customers’ requirement, and pass on the messages to headquarters.

Business model of ZARA is very ruthless, in case any design fails to perform well within a week, it is withdrawn and new orders of the same are cancelled. No design last for more than four weeks in the store, fast fashion seekers get encourage and they visits Zara stores more often approx 17 times than average in high street store in Spain which is three times in a year.

Zara customers are aware that a particular design will not be available for a long period so they prefer to purchase quickly. Zara success encouraged Inditex group to move outside Spain so company opened its store in Oporto, Portugal in 1988.Since than today company has presence in more than 70 countries across globe. As a result, it is now one of the biggest global retailers. Zara stores are often found crowded and out of stock during the festive season and vacation period.


Primarily there are two product lines in Zara stores men and women section. Most of the production for Zara clothing takes places in Spain, some in other parts of Europe and very less in Asian countries. Since most of the production is in Spain and other European countries, company is able to maintain efficient supply chain and distribution channel. It is advisable for company to decentralize its production for countries outside Europe; by this company can perform better in other parts also.

It is less likely for company in clothing industry to adopt vertical integration but Zara has successfully implemented it. Zara designs, produces and distributes through self-owned channels. Communication and coordination are other factors that can be termed as success mantra for ZARA.

Zara main competitors are H&M and Gap. H&M is Sweden based retailer that spent heavily in advertising and is a close competitor of Zara. H&M opens its distribution center in the country of its operations so as to cut down on lead time and transportation cost.
It would not be surprising that in a time to come Zara focuses on region based deigns. It might adopt the strategy of mass customization to offer differentiated products across the geographically separated locations. Depending on the county culture and environment, company can take its marketing and promotion decisions like in America Company could concentrate more on internet selling as American users do most of the e-commerce.
One risk that that Inditex group takes by re investing all its profits in opening new stores might work for all its stakeholders. But at the end of day ZARA is one of the successful global retailers and in near terms there is no threat to the business model adopted by ZARA.