P w C Case Study Challenge

Team Cynergy
IIM Kozhikode

Akhilesh Pendkande Harish Rathod Kshitija Polge Niharika Kumar

 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Recommendations: 4 Big Tech

Problem Statement Analysis Market Analysis
Ideas

1. Industry $85 bn in 2022 to 1.CIRCULAR ECONOMY via QR CODE

2. Market TAM $190 bn in 2026
a. Primary Survey
b. Secondary Research
$54 bn in 2022 to 2. Print ON-DEMAND for T-shirts
SAM $122 bn in 2026
Go-To-Market Strategy
$11 mn in 2022 to
3. Sustainable STYLING
1. Customer Profiling SOM $43 mn in 2026

2. Product Portfolio
3. Channel Strategy 4. Integrating BLOCKCHAIN with ERP system
Go-To-Market Strategy

CUSTOMER PROFILES PRODUCT PORTFOLIO

Recommendations Breakeven Analysis
EXPERIMENTER T-shirts
PAT(Present Value, In Cr) ROI = 43.02% (Highly
125
4 BIG Tech LOYALIST Formal wear Profitable)
driven IDEAS 100
DEFECTOR Indian casual
Payback Period = 2.5
75

CAPTIVE Athleisure 50
years (In line with vision
Break-Even Analysis of achieving profitability
25
CHANNEL STRATEGY within 3 years of
0
operations)
ONLINE OFFLINE -25

1. Augmented Try-ons 1. Plantable Packaging -50

2. Old Cloth Return Policy 2022 2023 2024 2025 2026
2. Metaverse access
3. Virtual Try-ons
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Sustainable Fashion Retail Industry Analysis : A Global and Indian Perspective

Indian Fashion Retail Industry Drivers Sustainability and Fashion Retail

Acquisition of many small brands/retailers Main source of e-commerce GHG emissions Sustainability Solutions
USD USD
by big retail giants PACKAGING
85 bn
190 bn Adopting new technologies Raw material
Use of organic cotton fiber,
10,000 items of clothing into landfill every 5 hemp fiber, natural dyes
2022 Building marketing teams, Social media minutes
marketing, influencer marketing Compostable,
3rd largest apparel 2026* £140 million value per year Packaging biodegradable,
retail market globally In-store immersive experience like self-
manufacturing partners
checkout, same-day order fulfillment
Sales share of sustainable clothing in Reuse/ Donation, reprocessing
Digital retail as a complementary asset to
global apparel market Recycling textile material, buying used
in-store experience to check availability
Channel mix of apparel retail in clothing
India Growing e-commerce demand in Tier 2,3,4
cities Supply chain/ Internal processes,
Sales share
Traditional retail
8% Logistics sustainable partnerships
Organized brick and mortar retail Sustainability, consumer awareness
Online retail towards it
100
Ethical, Eco, Lasting
fashion; Quality over
6% Quantity; minimalist and
75
Slow fashion
long-lasting clothing,
Challenges
accessories
4%
50
Fast-paced changes in consumer
Green supply chain practices
behavior and consumption
25 2%
Demand forecasting to optimize
production and inventory levels
0
2015 2018 2020 2026* Supply chain bottlenecks and 0%
infrastructure 2015 2017 2020 2022 2024 2026
*is projected values
Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Brands Offerings Brand Awareness Sustainability Rating Channel of sales Competitive Landscape

Key findings

India does not have sustainable-focused brands.

Myntra ranks high on sustainability but does not
differentiates itself based on sustainability.

Most of the fashion retail is dominated by

traditional brick-and-mortar stores and online
channels are yet to penetrate tier 3,4 and below
cities. However, demand is rising substantially in
these areas for e-commerce

Raymond, which deals mainly in menswear, ranks

high on sustainability, but such formal wear options
for women is not present or are limited.

The Indian brands based on sustainability like

Doodlage, B-Label, Mio Borsa primarily focus on
women, such options for men are not present.
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Porter's Diamond - Market Attractiveness Test Primary Research Findings

No of respondents: 76
Established sustainable fashion firm in the U.S. Male: 41
High growth rate of the industry
Less competition in purely sustainable fashion
Female: 30
space Transgender: 2
Firm strategy,
structure and
Prefer not to say: 3
rivalry
Comfort and Fit ranks the highest in customer
100% FDI allowed in textiles
preference while choosing any apparel.
Availability of skilled and
cheap labour
Sustainability currently ranks the lowest as
Factor conditions Demand conditions compared to other parameters.
Third largest apparel market globally
Increasing disposable income
No
Rising awareness and willingness on
17%
sustainable consumption
83% respondents were willing to purchase >10%
Related & 36.5%
0%
supporting sustainable clothes over fast fashion 42.9%
Availability of supply-chain industries
infrastructure and raw material
Textile industry support by the 43% respondents were not willing to pay
government any extra amount for sustainable clothes
Yes
>40% >25%
83%
6.4% 14.3%

Our Primary research suggests that although consumers are willing to shift to sustainable fashion,
they don't want the cost of purchase to rise exorbitantly. Also, when compared with other parameters
Porter's Diamond Theory of National Advantage helps a firm that consumers keep in mind while making purchases, sustainability takes a back seat, with other
entering a new market to analyze the competitive landscape. factors dominating the decision making process. This suggests that parameters like Comfort, Fit, and
It emphasizes the competitive advantage an industry or business
Value must be prioritized while designing sustainable clothes in order to reach the maximum
has over competitors.
consumers and generate maximum value.
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Servicable Obtainable Market to grow at a CAGR of 40.61%

TAM: Total Addressable Market

Refers to total possible demand for the TAM EXPERIMENTER LOYALIST
market
Behavior: Satisfied but switch Behavior: Brand loyal, hesitant to
The fashion retail industry

Satisfaction
$85 bn in 2022 to between brands, Price sensitive switch product, Stay and Support
$190 bn in 2026 Insights: Insights:
SAM: Serviceable Addressable Market •Can be retained by •Small improvement in customer
Refers to specific audience for your SAM

High
communicating brand offers service will improve loyalty highly
product/offering •May not be valuable to • Positive WOM
Customers willing to purchase spend time and efforts • Can become advocates at
sustainable fashion products on low cost
$54 bn in 2022 to • Difficult to please • Reward their loyalty
$122 bn in 2026
SOM: Serviceable Obtainable Market
Refers to the proportion of SAM that the
High Repurchase
company can obtain
SOM
The attainable market share by the Behavior: Neither Behavior: Not satisfied
company through their offerings satisfied nor loyal, but keep on repurchasing
$11 mn in 2022 to negative WOM Insights:
$43 mn in 2026 Insights: • Requires more
TAM,SAM,SOMfor StyleX & Co. in $mn •Never ignore dissatisfied efforts to improve
customer satisfaction
•Fix the issue that has led • Understand their needs
to negative emotions • If they do not like the value
• Potential Loyalist proposition they aren’t the TG

Apparel constitutes 82% of the fashion market

in India. DEFECTOR CAPTIVE
Primary surveys and secondary research show
that ~64% of customers are willing to purchase
sustainable apparel products. CUSTOMER PROFILING
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Customer Strategic Consideration

Awareness Experience Recommendations
Profile Objectives and Decision
Create Pre-release consumer buzz; Print-on-demand for
Leveraging social media
customization;
Solving Customer Pain Points at each step of the Consumer Journey

influencers and targeted

Brand promotion through this Price-sensitive, hence lure
advertisements
segment; with complementary Discounts through social
offerings media campaign engagement
Create FOMO effect for Plantable packaging to
First on target while entering a new
Experimenter consumers to latch on lure them
market
the new trend

Incremental increase in Loyalty programs

online and offline
Increase Customer Life-Time Value experience to keep them Collaborate with 3rd-party
interested Focus on Comfort, apps
Offline store promotions
Quality and Variety as
Promotion through office reflected in primary
Loyalist survey
engagements

Understand pain points and Analysis of customer

increase customer satisfaction feedback and reviews

Try to convert into LOYALIST Clear communication on

upgrades in customer
Create seamless
journey and value
Captive omnichannel experience
addition
with real time feedback Incorporate technological
incorporation of the tools like AR/VR to let
Pattern recognition from consumers at every step them experience our
Understand reasons for Increase awareness on feedback; offerings before placing
dissatisfaction enhanced technological the order
experience, differentiated Are they buying from
Minimize customers product offerings, and other sustainable brands?
falling in this segment sustainable consumption Or not buying sustainable
Defector products at all?
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Offline
Post-purchase Stage
Customer immersive experience and
THE SUSTAINABILITY MESSAGE Defined and user-friendly
return/exchange policies.
VERTICAL PLANTATION Robust customer care mechanism
VIRTUAL TRY-ONS Online
& PLANTABLE
PACKAGING Planted trees tracking mechanism for customers
1. Truly committed
to sustainability
1. Stores with dedicated by replacing the AUGMENTED TRY-ONS
walls having vertical trial rooms with
plantation 1. A life-sized image of the
virtual try-on Purchase Stage
2. Customers can selected product on individuals
2. Small store
choose a plant from to check the look and fit using
space, reduced Intention-Action gap bridging solutions
THE WALL whose their smartphones.
electricity to be implemented in different channels
seeds will be consumption
provided in the
plantable packaging
OLD CLOTH RETURN METAVERSE
post-purchase.
POLICY
Option Evaluation 1. Digital avatar created in the Metaverse for
TREE PLANTATION BY COMPANY 1. Return old used every customer to try on clothes, browse in
clothes in any the digital showroom, and meet other
1. Company will plant a tree for 100% avatars, creating a real-life experience.
StyleX & Co. store. GUARANT EE D

BE ST
Q U ALITY

customers after their purchase 2. Get discounts on StyleX & Co. differentiates its 2. Digital Wardrobes created using NFT limited
exceeds a threshold amount your next purchase Checks available options from offerings in fashion through quality, edition clothes for showcasing
2. Plantation tracker StyleX app various competitors; compares variety, and its brand identity as a
based on priority parameters sustainable U.S. fashion brand

Online
Offline
Decision making Company
Shopping malls Independent Retail Outlets Google Search Social media
Customer searches for sustainable fashion Website / App
Campaigns
solutions on various channels

NEED
Customer intends to purchase ethical,
sustainable, eco-friendly clothing
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Our proposition - The FOCUS PORTFOLIO

Apparel
Gaps identified
T-shirts Formal wear
Gaps in current sustainable fashion
product offerings in India observed from
competitor analysis: Why?
Print-on-demand t-shirts (online channel)
Our Low competition in sustainable
Currently
workwear
Available Offerings Trendy t-shirts (offline channel) Target segment falls in office going
population - high frequency use
Why? High chance of acquiring loyalists
Sustainable fashion offerings are
Widely used by both men and women through quality and variety offerings
focused on women's apparel,
Easy to use and high-frequency use product
and options for men are limited
Comfortable
Low-cost to consumers Why?
Athleisure
In trend hybrid clothing
The current sustainable type owing to high
portfolio for women's apparel customer awareness of
focuses on cotton dresses, Why? Indian casual fitness
traditional wear Cultural fit in the Indian context High emphasis on
60% female apparel market will be comfort and breathable
ethnic wear in 2025 sustainable fabric
High price products (high return
for company)
Sustainable apparel is not
perceived as fashionable and
Limited options for men Footwear and Accessories
trendy (important parameters
while apparel purchase) Why?
46% of footwear customers buy sustainably
35% of accessories customers buy sustainably
~40% of fashion customers (both men and women) in Tier 1
& 2 cities spend up to ₹ 5000 on accessories and footwear
Spending on accessories is uniform across all age groups
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Achievable CIRCULAR ECONOMY via QR CODE and Natural Raw Materials Print On-Demand for T-shirts (Online channel)
SDG Goals
Introduction of the circular economy model in the sourcing phase.
Standardization Customize designs Digital printing
Worn out products are Reusable
collected in offline stores fabric StyleX StyleX StyleX
extracted
through
reprocessing

1000+
The fabric is designs
New products with new used to spin
designs made through the into new
Sizes and colors standardized recommendations by app/website Order fulfillment by digital printing
recycled/ reprocessed fabric organic yarn

Integrating Blockchain with ERP System Why Blockchain in ERP system?

Public Goodwill
Why Circular Economy?
PO receipt generated,
Customer transaction appears
Reduces waste to landfills Order
- currently one truckload Placed
as a block
High Optimization
Cost savings in raw material of clothes every minute Notification
Delivery and Speed in process
sent

Style 1 Style 2 Style 3

Sustainable STYLING Fulfilment centers
Supplier
Why?
Order Highly secure and
Create designs that can Cost- details data records
remain trendy for a long time. effective for sent
the company. StyleX Mill
Same t-shirt can be styled in Inventory
Invest in Customization
multiple ways.
designs that Instructions sent
Provide visuals to customer Adds transparency and
can last.
to guide them. traceability within organization
 Executive Summary Industry Analysis Market Analysis GTM Strategy Innovations Financial Viability

Revenue (In Cr) Cost (In Cr) PAT(Present Value, In Cr)

400 125 Key Insights:

100 The Return on Investment that we obtain

from this project is 43.02% which makes
300 it highly profitable
75

50 The Payback Period is 2.5 years which is

200 well within the vision of making the
company profitable within 3 years
25

0
100

-25
Microsoft Excel
0 -50
2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Worksheet

Key Assumptions:
Marketing Channels to be used:
Our Revenue is calculated as per the SOM available and the Online Channels
Social Media Ads on Apps like Instagram, Facebook, etc, based
average order value according to the product portfolio we 40.1%
on Segmentation, Targeting, and Positioning as per user
possess; Growth rate is as per the market size increase in the
interactions on the Platform
growth and mature phases respectively Offline Channels
59.9%
Run Google Ads based on insights provided about the
Costs have been adjusted for inflation, assumed to be 5%, and
consumers
discount rate used to calculate present value is 17%

Run offline Marketing Campaign through key collaborations,

Assumptions for Cost level parameters have been put in the Cost Marketing - Offline vs Online Spends Split
putting up Banners at Prime locations like Airports
sheet of the excel attached
Thank You
Appendix
 References
Market value of textile and apparel across India from financial year 2006 to 2021, with estimations until 2026;
https://www.statista.com/statistics/1030346/india-market-value-of-apparel/
Channel mix of apparel retail in India from financial year 2015 to 2020, with estimates for financial year 2025;
https://www.statista.com/statistics/1253030/india-apparel-retail-acrossl-channels/
Sales share of sustainable clothing items within the global apparel market from 2013 to 2026; https://www.statista.com/forecasts/1307848/worldwide-
sales-of-sustainable-clothing-items
Sustainability in e-commerce - statistics & facts; https://www.statista.com/topics/8200/sustainability-in-e-commerce/#dossierKeyfigures
Dipanwita Ray, 2020, 5 Steps for a Sustainable Apparel Supply Chain - Green Perspective; https://www.onlineclothingstudy.com/2020/03/5-steps-
for-sustainable-apparel-supply.html
Indian apparel retail poised for ascendancy amidst economic revival; https://in.apparelresources.com/business-news/retail/indian-apparel-retail-
poised-ascendancy-amidst-economic-revival/
Sustainable Consumption in India 2021 Report; https://www.statista.com/study/89748/sustainable-consumption-in-india-report/
Compound annual growth rate of the fashion market in India from 2018 to 2023, by segment*; https://www.statista.com/statistics/1030386/india-cagr-
fashion-market-by-segment/#:~:text=The%20compound%20annual%20growth%20rate,to%202023%20across%20the%20country
The State of Fashion 2019;
https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20State%20of%20Fashion%202019%20A%20year%20of%20
awakening/The-State-of-Fashion-2019-final.ashx
More than 8 in 10 Indians are open to buying sustainable fashion items; https://in.yougov.com/en-hi/news/2019/08/06/more-8-10-indians-are-open-
buying-sustainable-fash/
 Prim ary Survey
Form Link https://forms.gle/G9PjMNU7TbPRz8HD9

Results

Gender Residence
Age
Prim ary Survey

(Online to offline)