Defining an Entry Strategy for an International Lingerie Brand in India
The client, a master franchisee for an international lingerie brand in the Middle East wanted to bring its brand and the concept of retail shopping of lingerie in India. The business concept of the international lingerie brand was unique to the Indians, with a different shopping experience. It included having a complete range of lingerie from daily wear to dressy in various colours as well as lounge and night wear in an exclusive store format, located in stores. The client engaged UC to provide them with a complete market assessment and a business plan for its entry in India.
To develop an entry strategy for the client, UC adopted the following approach:
- Conducted extensive primary research across Mumbai and Delhi to understand the following:
1) Customers preferences and acceptance of the brand and concept
2) The amount perceived and the willingness to pay for the client’s product (including the quantum and frequency of purchase)
3) Preference for the retail format
4) Retailers were also interviewed to understand their margins and trends, demand, pricing and unmet needs of the customer
5) Market assessment and sizing including the grey markets of these products
- A study of competitors with regards to its future plans and willingness to tie-up
- Government regulations for FDI in retail, applicability of import duties and sales tax were studied and analysed
- Thus, UC developed the business plan detailing the following recommendations:
1) Form of entry
2) Product range, sizes and pricing
3) Target market
4) Positioning and marketing plan
5) Retail formats
6) Indicative financials for a five year period for three probable scenarios (pessimistic, realistic and optimistic)for each form of entry
7) Roll out plan across 20 cities
8) An identification of potential partners for possible alliances.
The client received a clearly articulated entry strategy along with a complete business plan.