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Tailoring Services Market Research

Market Research: It is the process of collecting, analyzing and reporting of data which helps in defining marketing opportunities and problems, and coming up with proper solutions for it. Market Research can be used to start a new business, analyze the position of product in industry, data from research can be used to support company decisions, help maintain competiveness over competitors. Overview of Tailoring Industry: Tailoring is a business that makes, repairs and alters clothing professionally. There are types of tailoring like local tailoring, distance tailoring or Traveling tailor. Tailoring as an industry started in the twelfth century. Today this industry is valued in millions of dollars.

Tailoring Services Market Research

SWOT Analysis

STRENGTHS

Clothes are customized as per the needs of the consumers: The fitting, design, pattern given is all as per the customers needs and requirements unlike in retail outlets where the design and pattern are same. Specialized skills and expertise of tailors: Every tailoring shop is specialized in something or other. Some shops are exclusively for ladies salwar suit some are for gents shirtings and suitings some for gents sherwanis. Low pricing: Tailors stitch clothes for as low as Rs 250/- per salwar suit. This gives them a benefit over readymade garments which are costly.

WEAKNESS Deliveries are not made on time: A shirt and pant given for stitching may take around 2 months for getting stitched. People now a days have no patience to wait for 2 months to get their clothes. Instead

Tailoring Services Market Research

they prefer going for readymade garments where they get their clothes in an hours time. Fixed cost are high: Cost of buying a shop or taking a shop on rent, buying machines is very high in a city like Mumbai. With the low pricing of tailors it becomes difficult for them to recover their fixed costs early. Limited marketing budget to develop brand awareness: Local tailors have very low budget to develop their brand image. Their branding is done by mouth to mouth publicity. Low margins: Tailors have to pay the workers they have employed and other costs like electricity, refreshments, etc. Thus they face problem of low margins. OPPORTUNITIES: Bulk orders from schools, colleges, corporate offices, etc: Tailors receive bulk orders from schools for school uniforms from colleges and corporate offices for common uniforms for their students or employees.

Tailoring Services Market Research

Retailers like Reliance trends and future bazaar are recruiting tailors to offer the perfect fit and customised style to their customers. Seasonal events: Tailors receive huge orders during festive seasons like diwali, marriage season. During these seasons the demand for unique and customized clothes is high and people prefer tailoring services. THREATS:

Preference of consumers: The preference of consumers for readymade garments has fast changed due to the quality and comfort they deliver. Quick services provided by readymade garment shops: Nowadays the readymade cloth providers give fast and free services like altering service across all outlets. Thus the customer does not have to worry about the fitting while buying readymade garments. Competition: There is a high level of competition in Tailoring service industry. Thus there is also a high risk of imitation. Any new design or pattern developed by one tailor can be easily copied by other tailors.

Tailoring Services Market Research

Porters 5 force analysis for the tailoring service industry as a whole: Bargaining power of Buyer: High The Buyers Bargaining power is Very High in this particular segment, since this segment provides large variety of options to the buyers. There is a variety for the Buyers to choose from, and thus involves a lot of Competition with respect to quality and price. The tailors compete amongst themselves with regards to customer base, prices, and delivery timings. There is also a presence of large number of Tailors spread across different locations.

Bargaining power of Seller: Moderate The Sellers Bargaining power is Moderate in this particular segment. The purchaser i.e. the Tailor has a say, since he has got a large pool of sellers to purchase the goods, also the current advancement in E-Commerce, has made it easier to contact new sellers. However there can be slight change in the risk, with respect to a high demand for a particular quality/type of cloth by customers. Threat of New Entrants: High There has been a considerable increase in the numbers of Tailors in the Market, as well as due to E-commerce, it has become easy to contact new Tailors and thus, the Competition has increased

Tailoring Services Market Research

considerably. In such a scenario, a new Entrant posses a great Threat to the Existing Tailors in the market. Threat of Substitutes: High The substitute for this sector is the ready-made garments industry, which is highly matured. Thus the Threat of Substitutes is High for the Tailors. The Existing Tailors need to continuously look out for new customers, in-order to maintain the profit margins. Also, the research has shown that the consumers today prefer ready-made garments, over and above the stitched clothes. Also the Ready-made Garment sector is providing customization and post sale alteration services to the customers. Intensity of Competition: High This sector has competition not only from the peer tailors, but also from the Ready-made Garments Segment. Each player tries to occupy a larger share in the market and wants to earn larger profits. With more and more Ready-made garment companies entering into this market, there has been a considerable increase in the competition and rivalry in the market. For any Tailor to succeed now, they have to deliver the best service, within reasonable time, with competitive pricing strategy

Tailoring Services Market Research

Topic: Market research on Tailoring Services. Problem statement: People prefer readymade garments over stitched clothes. Research plan: After defining the problem statement we developed a research plan to gather the required information. We collected a sample of 100 users and customers using an Online Questionnaire Research Instrument (The Questionnaire is attached herewith) and analyzed the sample. The reason for using an online questionnaire is that its the cheapest and easiest research instrument to gather the required primary data. We extracted the required data from all survey forms and analyzed it. We also did a research of secondary data of surveys conducted earlier by other people which were available online.

Analysis: We got responses of 100 people from the online survey which we conducted. After gathering this data we have analyzed this data and made comparisons using it. This analysis has helped us in building some conclusions.

Tailoring Services Market Research

1. Gender wise Distribution of the Sample

Male
42% 58%

Female

2. Age group wise distribution of the Sample.

12% 22%

6%
15-25

60%

26-40 41-60 60 and above

Tailoring Services Market Research

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2. Preferences:

34%

66%

Ready Made

Stitched clothes

As we see here more than half of our sample size prefers readymade clothes over stitched clothes.

3. Female Preference

38%

62%

Readymade Stitched

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4. Male Preference:

31%
69%

Readymade

Stitched Clothes

We have observed that females prefer more stitched clothes more than male. Although the percentage of male preferring stitched clothes is bit more than females. But we have come to this conclusion due to sample size of female being less than that of male.

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5. A tailor which people prefer. (Recommended or Unknown)

4 %

Recommen ded

96%

Unknown

This result shows that people prefer to go to a recommended tailor rather than going to a unknown tailor. Which means unlike some other services or products a tailoring service needs to be well established and famous to attract more customers.

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6. Satisfaction of people with their tailoring services.

28% 72%

Satisfied with tailor Not Satisfied with tailor

This result shows an inconsistent result. The reason had been that when we asked people whether they prefer readymade clothes or stitched clothes more than 70% people preferred readymade clothes over stitched clothes. We analyzed this situation with help of other graph so as to understand this inconsistency.

Tailoring Services Market Research

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7. Tailor preference.

38% 62%

Brand's tailor

Local tailor

Brands tailor means a tailor who works with a particular company like Raymond, Van Heusen etc. More than 60% people prefer to stitch their clothes from a brands tailor due to the brands authenticity.

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8. Some major reasons due to which people prefer readymade clothes over stitched clothes.

30 25 20 15 10 5 0
Delivery Design Time Suggestions Fitting Pricing

Delivery time: 56% Design Suggestions :26% Fitting : 44% Pricing: 10%

This particular graph shows that Delivery time is the biggest problem for a tailoring service. People prefer stitched clothes due to their exclusive fitting, but as the majority of tailors have semi skilled labors, tailors fail to live upto the expectation of people. This graph also justifies why there is an inconsistency amongst our previous results. People are satisfied with their tailoring services but they still dont prefer stitched clothes because of these reasons.

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9. Important attributes which people look when they opt for a tailoring service.

60 50 40 30 20 10 0
Popularity Price Speciality Location Here 1,2,3,4 are the ranks given to various attributes for their significance. We asked people to rank each attribute as per their significance in tailoring service. Specialty of a tailor was ranked as the most significant attribute which people look into a tailor. Specialty includes various factors like fitting, customization, designing etc While popularity was ranked 2nd most important attribute followed by price and location.

4 3 2 1

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Key Findings: After doing the research on tailoring services we found the following: There are no major players who dominate the market in tailoring service industry. Tailoring service industry has a good scope but people prefer readymade garments more than stitched clothes due its simplicity. In current market people are majorly dissatisfied about the tailoring services due to two main reasons; one is delivery time and second is fitting and customizations. Exclusive finishing is the major reason why tailoring services in todays market face the difficulties in competing with readymade clothing industry.

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References: "The dressing style has changed dramatically in last five years," said Bundu Khan Ansari, director of B K Textile, a 20-year-old company is based out of Ahmednagar area in Meerut. "Focus, nowadays, is on readymade garments especially among males. Tailor-made garments are losing its charm with competition from branded clothes." Satish Kumar Singhal, owner of Global Fabrics believes, "The tailors cannot stitch the way youngsters want. And, there are sale and discounts on different brands throughout the year. People do not mind buying stuff when they need it. There are more choices in terms of colour and style that readymade garments offer." Gaurav Singhal, owner of 40-year old Gaurav Textiles, echoed similar sentiments. "People need instant gratification. They find a readymade garment more convenient. Also, the number of branded stores is more than cloth stores in every area. Customers do not have the patience to wait for 3-4 days for the dress to be stitched."

Source: The Economic Times Dec 1, 2012.

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