You are on page 1of 26

INTRODUCTION

1
1.1 COMPANY PROFILE

Arrow is one of the leading premium readymade brands in India. This international brand has a rich
history dating back to 1851. Globally Arrow brand belonged to Cluett Peabody & Company, Inc, but
in 2004 it was acquired by Phillips-Van Heusen Corporation in a $70 million deal. In India, the brand
is manufactured and marketed by Arvind Brands. At Arrow, the roots are firmly established as a
fashion leader in mens apparel. However, today Arrow has been transformed into Gentleman
lifestyle brand with a broad assortment of mens, womens, and childrens apparel and apparel
related products available in over 90countries worldwide. At Arrow, through research and
development, everyone is constantly addressing the changing needs and desires of the consumer,
resulting in brand awareness and consumer loyalty. The success of Arrow can be attributed to the
brands rich heritage and theophanys attention to detail over the years. Arrow, a Gentleman icon, for
over 150 years. Arrow, predominantly a shirt brand, came to India in 1993. The brand which was
known for its American heritage was an instant success in India too. This premium brand thrives on
the international image and Arvind nurtured this brand by making the brand exclusive. The brands
expensive and has excellent quality and finish. Arrow is famous for its ultra- formal shirts.
Consumers like to show-off the brand and the famous Arrow brand mark near the cuff. The brand
promotes itself using print media. Arrow currently runs 62 stores (Exclusive Brand Outlets
& Exclusive Store on Purchase) in India and is geared up to expand its stores by opening 45
more stores pan-India. These outlets will be a combination of both franchised and company-
owned outlets.

2
1.2 HISTORY & OVERVIEW ABOUT THE INDUSTRY

BANGALORE OCT. 11. Ten years ago, Arvind Clothing Ltd., a subsidiary of Arvind Brands
Ltd., a member of the Ahmedabad-based Lalbhai Group, signed up with the 150-year old Arrow
Company, a division of Cluett Peabody & Co. Inc., U.S., for licensed manufacture of Arrow
shirts in India. What this brought to India was not just another premium dress shirt brand but a
new manufacturing philosophy to its garment industry which combined high productivity,
stringent in-line quality control and a conducive factory ambience.

Arrow's first plant, with a 55,000-sq. ft. area and capacity to make 3,000 to 4,000 shirts a day,
was established at Bangalore in 1993 with an investment of Rs. 18 crores. The conditions inside
with good lighting on the workbenches, high ceilings, ample elbow room for each worker and
plenty of ventilation, were a decided contrast to the poky, crowded and confined sweatshops
characterizing the usual Indian apparel factory in those days. It employed a computer system for
translating the designed shirt's dimensions to automatically mark the master pattern for initial
cutting of the fabric layers. This was installed, not to save labour but to ensure cutting accuracy
and low wastage of cloth.

The over two-dozen quality check points during the conversion of fabric to finished shirt was
unique to the industry. It is among the very few plants in the world that makes shirts with 2 ply
140s and 3 ply 100s cotton fabrics using 16 to 18 stitches per inch. In March this year, the
Bangalore plant could produce stain-repellant shirts based on nanotechnology.

The reputation of this plant has spread far and wide and now it is loaded mostly with export
orders from renowned global brands such as GAP, Next, Espiri and the like. Recently the plant
was identified by Tommy Hilfiger to make its brand of shirts for the Indian market. As a result,
Arvind Brands has had to take over four other factories in Bangalore on wet lease to make the
Arrow brand of garments for the domestic market.

In fact, the demand pressure from global brands which want to outsource from Arvind Clothing
Ltd. is so great that the company has had to set up another large factory for export jobs on the

3
outskirts of Bangalore. The new unit of 75,000 sq. ft. has cost Rs. 16 crores and can turn out
8,000 to 9,000 shirts per day and is expected to commence operations this month. The technical
collaborators are the renowned C & F Italia of Italy.

Among the cutting-edge technologies deployed here are a Gerber make CNC fabric cutting
machine, automatic collar and cuff stitching machines, pneumatic holding for tasks like shoulder
joining, thread trimming and bottom hemming, a special machine to attach and edge stitch the
back yoke, foam finishers which use air and steam to remove creases in the finished garment and
many others. The stitching machines in this plant can deliver up to 25 stitches per inch. A
continuous monitoring of the production process in the entire factory is done through a
computerized apparel production management system, which is hooked to every machine.
Because of the use of such technology, this plant will need only 800 persons for a capacity which
is three times that of the first plant which employs 580 persons.

Exports of garments made for global brands fetched Arvind Clothing over Rs. 60 crores last year
and this can double in the next two years, when the new factory goes on full stream. In fact, with
the lifting of the country-wise quota regime in 2005, there will be a surge in demand for high
quality garments from India and Arvind is already considering setting up two more such high-
tech export oriented factories.

It is not just in the area of manufacture but also retailing that the Arrow brand brought a wind of
change on the Indian scene. Prior to its coming, the usual Indian shirt shop used to be a clutter of
racks with little by way of display. What Arvind Clothing did was to set up exclusive showrooms
for Arrow shirts in which the functional was combined with the aesthetic. Stuffed racks and
clutter were eschewed. The products were displayed in such a manner that the customer could
spot their qualities from a distance. Of course, today this has become standard practice with
many other brands in the country, but Arrow showed the way. Arrow today has the largest
network of exclusive outlets of 64 across India. It is also present in 30 retail chains. It branched
into multi-brand outlets in 2001 is present in over 200 select outlets.

From just formal dress shirts in the beginning, the product range of Arvind Clothing has expanded in
the last ten years to include casual shirts, T-shirts and trousers. In the pipeline are light jackets and
jeans engineered for the middle-aged paunch. Recently, Arrow tied up with the renowned Italian
designer, Renato Grande, who has worked with names like Versace and Marlboro, to design

4
its Spring/Summer Collection 2003. he company has also announced its intention to license the
Arrow brand for other lifestyle accessories like footwear, watches, undergarments, fragrances
and leather goods. According to Darshan Mehta, President, Arvind Brands Ltd., the current
turnover at retail prices of the Arrow brand in India is about Rs. 85 crores. He expects the
turnover to cross Rs. 100 crores in the next two years, of which about 15 per cent will be from
the licensed non-clothing products.

1.3 SWOT ANALYSIS

SWOT analysis is most commonly used by business entities, but it is also used by nonprofit
organizations and, to a lesser degree, individuals for personal assessment. Additionally, it can be
used to assess initiatives, products or projects. The framework is credited to Albert Humphrey,
who tested the approach in the 1960s and 1970s at the Stanford Research Institute. Developed for
business and based on data from Fortune 500 companies, the SWOT analysis has been adopted
by organizations of all types as an aid to making decisions.

WHEN AND WHY YOU SHOULD DO A SWOT ANALYSIS

A SWOT analysis is often used at the start of or as part of a strategic planning exercise. The
framework is considered a powerful support for decision-making because it enables an entity to
uncover opportunities for success that were previously unarticulated or to highlight threats before
they become overly burdensome. For example, this exercise can identify a market niche in which
a business has a competitive advantage or help individuals plot career success by pinpointing a
path that maximizes their strengths while alerting them to threats that can thwart achievement.

5
SWOT ANALYSIS OF ARROW

Arrow is a brand which targets formal wear and is known as a premium shirts brand. Shirts by
Arrow are loved in the corporate circle and it is the trademark of corporate wear. Arrow
originates from the PVH corporation which is more commonly known as the Phillips Van
Heusen corporation.

STRENGTHS

1. Best in class Quality: Arrow shirts are renowned for their quality. This gives them a
competitive advantage over the competitors since the brand image in the minds of the
consumer is high.

6
2. Premium Brand Image: Arrow has a string brand image in the minds of the consumer
because of the quality of products, the popularity of the brand; also, high ranked
corporates choose Arrow which makes it a desirable brand for many.

3. Brand equity and awareness: Because of Arrows strong brand image, the brand equity is
really high which also helps in increasing awareness about the brand. This also enhances
the market reach of Arrow.

4. Global Presence: Arrow is present in over 55 countries and is renowned shirt brand for
the professionals. Thus, increases the reach, widens the customer base and rules out the
disadvantage of being over-dependent on a single market.

5. Good Branding: Arrow has done good branding and advertising with TVC and print ads.
This ensures that Arrow remains a popular brand.

WEAKNESS

1. Limited market share: There is intense competition in the apparel industry from Indian as
well as Multinational companies. This restricts Arrow to a limited market share.

2. Low Brand Loyalty: Due to the emergence of e-commerce and modern retail, there are
multiple options for the customer today. This reduces the brand loyalty for a particular
brand.

7
3. Low customer engagement and loyalty programs: Arrow does not indulge in customer
engagement or loyalty programs. This also reduces the brand loyalty since other brand
resort to such options.

OPPORTUNITY

1. Growing Indian Market: Arrow should try to encapsulate the opportunities created by the
growing Indian market, especially the young professionals.

2. Tie-ups with offices and corporates: Arrow should also look forward to tie-up with
offices and corporates in order to increase its popularity amongst the young professionals
as well as increase its revenues.
3. Improving standard of living: Customers are upgrading themselves, they have become
brand conscious. Also, the standard of living has improved as more people prefer
premium brands.

4. Increase global penetration: Arrow should also look forward to increasing its global
penetration especially in the emerging market where the standard of living is rising.

THREAT

1. Increasing competition: E-commerce and mobile shopping has allowed various new
brands to enter the market easily, increasing the already intense competition.

2. Price War: Comparing prices have become easy these days and hence companies are
fighting each other over price. This is not a good sign for the industry as a whole.

8
3. Decreasing Switching Cost: Due to price wars and lack of product differentiation,
switching cost for the customer has decreased a lot.

1.4 COMPETITORS OF ARROW

1) Van Heusen

www.vanheusenindia.com an initiative of Madura Fashion & Lifestyle, a division of Aditya


Birla Fashion and Lifestyle is Indias largest and fastest growing branded apparel companies and
a premium lifestyle player in the retail sector. After consolidating its market leadership with its
own brands, it introduced premier international labels, enabling Indian consumers to buy the
most prestigious global fashionwear and accessories within the country.

The companys brand portfolio includes product lines that range from affordable and mass-
market to luxurious, high-end style and cater to every age group, from children and youth to men
and women. Madura Fashion & Lifestyle is defined by its brands Louis Philippe, Van
Heusen, Allen Solly, Peter England that personify style, attitude, luxury and comfort.

It also includes India's first fast-fashion youth brand, People; Indias largest fully integrated fashion
multi-brand outlet chain, Planet Fashion; India's largest premium international brand retailer, The
Collective and the British fashion icon, Hackett London's mono-brand retail in India.

9
2) Park Avenue

Launched in 1986, Park Avenue provides stylish and innovative wardrobe solutions to well-
dressed gentlemen. As India's premium lifestyle brand, its designs embody the latest in
international fabric, styling, color and fashion trends. We cater to customer needs with formal
clothing for varied occasions; be it for a day at office, high-powered corporate meetings, social
gatherings or celebrations.

10
Park Avenue evolved into an innovation brand offering leading new styles to the corporate world
and won the 'Best Design Concept' of the year Award for Innovative AUTOFIT Concept at
Images Fashion Awards 2015.

BRAND PHILOSOPHY

The corporate world has changed. The stiff upper lip has been replaced by a warm smile. The
table at the nearby cafe is now booked for meetings, while the conference room remains usually
unused. Most of all, there is an increasing realization that great business deals are not necessarily
cracked between 9 to 5.

The new age working professional is part of this change and so, deserves to dress in a whole new
way. Park Avenue finally gives corporate dressing a new language, totally in sync with the
changing times. As part of the fresh chapter, Park Avenue has also introduced a new logo - a
signature and visual identity of the brand, the new mnemonic "Eagle". It imbibes the strong
vision and the ability to focus. It stands for new challenges and will be known for its passion and
commitment to succeed.

11
3) Louis Philippe

Defining class, elegance and status, Louis Philippe is a purveyor of fine clothing for the
discerning gentleman. In pursuit of excellence, Louis Philippe stands for precision in
craftsmanship that translates into clothing that are classic and contemporary, and perfect for the
quintessential man. An international super brand for menswear clothing, Louis Philippe offers a
range of formals, semi-formals, custom-made clothing and accessories. Addressing the needs of
the style-conscious man, the brands clothing range boasts of a collection of suits, shirts,
trousers, T-shirts and accessories that can be bought in-store and online.

Keeping in mind the globe-trotting businessman, Louis Philippes sub brand LP caters to men
with panache and attitude. With a collection of shirts, suits, jackets, formal trousers, casual pants,
T-shirts and accessories, LP by Louis Philippe combines a nonchalant look with trend-led
fashion that defines todays man. Available on Louisphilippe.com, you can buy Louis Philippe
shirts and suits online while youre on-the-go. With smart denims being the new chinos, you can
also browse through the range of Louis Philippe jeans online and pick one that defines a quasi-
formal look. With promise of comfort and perfection, you can look through the wide range of
Louis Philippe trousers online that are ideal for days when you mix business with pleasure. And
for a dapper finishing touch to your ensembles, you can buy Louis Philippe shoes that beautifully
marry function and style. You can also revel in comfort with their range of innerwear which is
crafted from the softest of cotton that is perfect for all day wear. Indulging to the needs of the
discerning gentleman, Louis Philippe delivers nothing short of sharp style and finesse.

12
13
SUPPLY CHAIN OF ARROW

14
2.1 SUPPLY CHAIN OF ARROW

15
MANUFACTURE

Arrows supply chain starts with the manufacture which is in hongkong, the manufacture supplies
the arrow product all over the Asian markets where as the origin plant which is in USA provides
the supply to the rest of the world. The manufacturing is owned by the Arrow itself, Basically
Arrow believes in the outsourcing and it has choose the best outsourcing company which has
already worked for the brand like Tommy Hilfiger the outsourcing company is known for the
excellence in the formal clothing where the brand is all about it. Manufacture send the products
to the supplier through the ships.

The details of the manufacturer are given below

Company: Eastern Industries

Address: Rm 1116-17 Beverley Comm. Ctr., 87-105 Chatham Road, T.S.T.

Country: Hong Kong SAR

Phone Number: (852) 31840841

Fax Number: (852) 31840891

SUPPLIER

In India Arrows has the supplier named Arvind fashion limited which imports its product from
Hong Kong to the India and market them in the Indian market and they also handle the after sales
services of Arrow the firm is situated in Bengaluru and supply the arrow product all over the
India. The company is also working for the brands like Van Heusen and the company has its own
brand in the clothing sector also which comes with the name Arvind but due to the big players
the brand is not able to reach at the highest position in the market but since Arvind has the good
reach in the market Arrow prefers to supply its product from it as it is also working for many big
brands. They use trucks to send the stocks to Wholesalers

16
The details of the supplier are given below

Arvind Lifestyle Brands Limited

8th Floor, Duparc Trinity, 17, M.G. Road, 8th Floor, Duparc Trinity, FM Cariappa Colony,
Shivaji Nagar, Craig Park Layout, Ashok Nagar, Bengaluru, Karnataka 560001

WHOLESALER

According to the Arrow policy every state has its own wholesaler but if we talk about Delhi then
we have the wholesaler in the Gurugram which supplies not only in the Delhi but also in the
Punjab, Haryana and UPs Arrow outlet. Warehousing infra of every wholesaler is partially
funded by the company due to its policies apart from this every warehouse should always contain
the stock of atleast 1 month. They use trucks to send the stocks to retailers

RETAIL STORES

17
Arrow has its own outlets in the various cities and the places where customers can interact with the
product and brand apart from this it is also being featured in the Shoppers stop and Reliancetrendz
apart from this the rumors says that soon it is going to be a part of FBB which is Fashion at Big
Bazaar. The pic of the Arrow retail store which is situated in the Pacific Mall which is being taken at
the time of outlet visit which was for the purpose of the research for the project.

18
STRATERGY OF SCM

19
3.1 STRATERGY OF SUPPLY CHAIN OF ARROW

Arrow the brand which is a premium clothing brand provides the excellence in everything where
as if you Supply chain strategy then it comes up with the strategy of Outsourcing

As we got to know that Arrow is a brand which is one the best brand if you talk about expansion
even in the beginning it showed that, Arrow outsource its business where as its strategy is to
provide the excellence in the less time and less money.

Strategy says that if you cant reach to tour target market then choose the person who is near to
that market and can do your work with the best or the benchmarks you have made for your own
self, Whereas Arrow has chosen the manufacture in Hong Kong which is serving to entire Asia
with all its bench marks which states that arrow has done its work quite naturally.

Strategy says if you cant play the game then choose the best player who is best in the game to
play for you and Arrow has chosen the Arvind lifestyles for it, the company known for the
excellence marketing and the supplying for the clothing is one of the best option to chose for the
companys supply and marketing. Arrow chose the Arvind also for its past worked which it has
done for the many brands like Van Heusen.

Arrow provides warehousing but partially and partially is done by the investors who wants to
invest in it which means that in the case loss company will not suffer the entire cost, half of the
cost is being funded by the investor which is one of the smart move of the company and since the
company has the policy that there should be atleast one warehouse in the state so there is no
point of lack of supply rather it leads to a healthy supply of the stock.

The target group of the brand is higher class whereas their all stores is being situated in the mall
or the location where higher income groups are existing the brand is very concern about it that is
why it make sure for the area before giving any franchise to anyone in the area.

20
CONCLUSION &
RECOMMENDATION

21
4.1 CONCLUSION

The brand is running on the most optimized manner of the supply chain.
The Supply chain of the Arrow is effective and efficient.
The excellence which is being said was there in the supply chain
Warehousing for every state is a smart move
Funding strategy is a great move in terms of Loss period and for expansion periods too
Brand is able to reach to its target market in very well mannered
Policy of keeping 1-month stock in the warehouse is also a good point which helps to
avoid the lack of supply
Company has chosen the best Firms to provide the manufacturing importing and supplying

4.2 RECOMMENDATIONS

If brand will open its own manufacturing unit in the India then it might be going to help it
a lot since everyone is now opening its manufacturing in India due to the government
policy of the India and the low-cost economy so its a good time to invest her because
here because theyll be getting the legal hassle free economy as well as the low cost
economy , we agree that china provides more cheap labour than India but since its a
premium brand then it might not think of it and make its production units so that it can
serves the entire Asia by its own.
Arrow is premium brand and the luxurious always provide the best on their door so if the
brand comes up with the hassle-free exchange of the cloths then it would be very good.
Because usually when we buy product from their out lets then various issues comes at the
time of exchange and since its an expensive brand then everyone will think of it befor
purchasing.

22
ANNEXURE

23
SAMPLE QUESTIONARE

All the questions are being answered by the store manger of the Arrow Store which is in the
Pacific Mall, Subhash Nagar, Delhi.

1) How many hours it takes to send the product to the retail store from the manufacture? In

the entire chain which element takes the most time?

2) Where is your manufacturing plant? Reasons why the manufacturing plant situated in that

location?

3) What is entire process / stages of product distribution from manufacture?

4) Is there any substitute available for your supply chain stages?

5) Where is your warehouse situated? How many warehouses are available?

6) Is there one warehouse for all the stores? Or every store has its own warehouse?

7) Do you think that the supply chain of arrow is worth for money? Explain

8) Do you outsource your work? And if yes, they why and provide the name of company

which provides you outsourcing services?

9) Who is material suppliers? And which fabric you use the most?

10) Do you think that the supply chain could be more optimized?

24
BIBLOGRAPHY

25
Websites

http://delhi-ncr.mallsmarket.com/malls/city-centre-mall-rohini/stores/arrow

https://www.arrowlifestores.com/?originalReferer=http%3A%2F%2Fwww.arrowlife.com%2F&
all=true

https://arvindbrands.com/contact-us

http://www.globalsources.com/si/FL/Eastern-Industries/6008827810808/ContactUs.htm

https://www.tradeindia.com/Seller-10957439-Eastern-Industries/

https://www.google.co.in/search?q=ship+png&rlz=1C1CHBF_enIN761IN761&source=lnms&tb
m=isch&sa=X&ved=0ahUKEwil5ZLlnsPXAhVIfrwKHeplB3IQ_AUICigB&biw=1600&bih=79
4#imgrc=v4mgP3HdVOc7jM:

http://www.mbaskool.com/brandguide/lifestyle-and-retail/2407-park-avenue.html

https://www.louisphilippe.com/content/about-us-4?source=footer

http://www.mbaskool.com/brandguide/lifestyle-and-retail/2458-louis-

philippe.html https://en.wikipedia.org/wiki/Park_Avenue

Others

Meeting with the store manager


Templates and the brochures

26

You might also like