Current stage of development

To date Purple posh clothing private limited has completed the following:

  • Arrangement for PurplePosh to become a limited company.
  • Provisionally secured a place for warehousing in a SEZ (Special Economic Zone) in Kolkata, India.
  • Identified the suppliers of raw material to begin with the sampling process.
  • Identified the possible requirements to register in 'All India exporter's chambers' and 'Calcutta export promotion council'.
  • Temporary website has already been launched and further development is in process.
  • Already apportioned the appropriate cost involved in tying up with various search engines and social networking sites for promotion. (E.g. Google Ads, Yahoo, Face book)
  • Contacted HSBC Bank and Lloyds TSB bank for setting up a business account.
  • Currently discussing the terms, conditions and prices with the 'Indenting Agents' (Distributors/ Agents of readymade garments in UK market).
  • E. g. Promiage Plc (Manchester) and Richard Sylvester (Chesterfield).

  • Already secured interest from 4 to 5 fashion boutiques in Sheffield (E. g. )

SWOT analysis of Purpleposh

The SWOT analysis will be providing us with an overview of the whole business of PPC. The points described will be discussed in a much more detailed way throughout the document.

By looking at the potential growth in the export of readymade garments in India followed by the setting up of US $ 6 billion (3.86£ billion) technology up-gradation fund for modernizing the entire value chain, new liberalized labour laws, tax benefits for exporters setting factories in the SEZ, progressive reduction of import duty on garment machinery and products and finally with the independence of setting up fully owned sourcing offices has led us to a decision to set up our base in India.

Rationale for selecting UK market

  • Premium segment will be the new focus in the UK market
  • There is a new trend in the UK population which favour trading up
  • Increase in clothing sales from £291 million (2007) to £303 million (2010)
  • There will be significant rise in the customers of age group of 50 and above by 13% by 2014
  • Understanding the 50+ sector is the key to growth (Market worth £2.83 billion tend to grow with an increase in per head spending of 760£)
  • 25 - 34 years segment will tend to increase by 12% by 2014

Country profile and industry profile

The market value of the UK clothing sector is estimated to be 71$ billion (45.64£ billion) and one third of this is imported. UK has a women swear sector of 53%. In UK at present large retailers are hiking their share of market by cannibalizing small independents. Multiple shops constitute approximately 25% of retail clothing market while departmental store, discounters, sports shop, home shopping's, market stalls and supermarkets constitute approximately 31% of UK market. Now a day's departmental stores, large retailers and large chain stores are the major players in the market who are mostly involved in direct importing.

Segment profile

The apparel market is one of the most promising, fragmented and competitive retail sectors of UK, with a lot of retailers and big operators practically battling for their share in an environment which relatively has low growth. Since 2008 there has been a development of some influential, steady but relatively smaller fashion retail brands (women) who are not only successful in exploring the retailers response and dynamicism of the market but are also successful in excavating the trends and drivers which drives the present UK market. Purpleposh's main focus will be on those growing small retail brands as well as the retailers own brands for business development.

Rationale for targeting premium segment

For decades the UK market was prevailed by the value clothing segment, till the time inflation hit the market leading to not only slow growth and diminishing volume but also to a gradual shift in the market trends.

This shift has let the premium clothing segment to be the new ground for battle among the UK retailers. With the return of the inflation in the UK market, there has been a consolidation of the value segment only in the hands of largest and biggest operators which leaves only the premium segment as an opportunity for the retailers to capitalize on.

Perceptual map of different exporters and distributors with clear positioning of PurplrPosh

The perceptual map below shows where the purpleposh's competitors would stand based on the quality of material and price. Purpleposh is not going to compete with the large exporters from India because Purpleposh will be targeting the niche premium market with less competition from exporters (Although it's also true to the fact that the big exporters will offer a wide range of samples too which can't be ignored). Most small exporters supply mainly to the 1st and the 2nd quadrant of the map rather than the 3rd and 4th quadrant. The exporters mainly gain through volume of contracts from the discounters. Many retailers in the 3rd and 4th quadrant may charge larger mark-up for the garments but will pay little to the exporters.

Potential new entrants

Purpleposh very well realize that the existing exporters both big and small are not the only threat to the business, but as purpleposh will grow there may be new entrants in the export market. Even though the government policies are favourable at this moment along with the presence of INCOTERMS (International term for export responsibilities) to smoothen the functioning of export import business, but in spite of this there can be possible changes in government policies. So the company understands the necessity of delivering of highest quality not only in products but also in services to both retailers and distributors (importers), with a view to diversify the business to European markets in future to sustain any competitive advantage.

The bargaining power of retailers and distributors

In the B2B business Purpleposh has 3 types of customers. Therefore it is really important for the company to listen and satisfy all of them up to a threshold point as they ultimately hold the business growth power. Although the distributors require specialist design but they will only be paying the amount what they feel profitable for them, whereas on the other hand the direct retailers and fashion boutiques craves for highest quality with an excellent supply chain and services but with a bargained margin better than provided by the distributors / agents.

Purpleposh's market research

Purpleposh has conducted a market research with 50 women in the age range of 20 - 50 years, around 20 fashion boutiques and 5 retailers. The main focus of the research was to specifically identify the key customer needs, their fashion trends, buying behaviour and also to know about the specific requirement of the fashion boutiques and retailers with approx knowledge of the marginal price.

Other areas of investigation

Purplrposh is also in discussion with 'All India Exporters Chamber' and 'Calcutta Export Promotion Council' to assess that whether Purpleposh clothing is eligible for any subsidy or grants. At this stage there has only been conversation going on and nothing has been agreed.

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