Professional Documents
Culture Documents
August 2014
Table of Contents
Particulars
1. Executive Summary
Page Nos.
4
3. Business Dynamics
3.1. Business Model
12
14
17
4. Competitive Mapping
4.1. Market Segments
19
20
22
24
5. Select Interviews
27
6. Consumer Survey
6.1. Overall
35
40
45
53
7. Equity transaction
7.1. Hidesign
60
Particulars
Page Nos.
61
65
8.3. Alessia 74
74
8.4. Baggit
77
82
8.6. Caprese
87
8.7. Da Milano
90
8.8. Esbeda
94
8.9. Fiorelli
98
8.10. Gucci
101
8.11. Hidesign
106
8.12. Holii
112
8.13. Lavie
117
122
127
8.16. Peperone
132
8.17. Rhysetta
135
9. International Players
9.1. Brief Overview of International Players
140
145
10. Annexure
149
1. Executive Summary
Market Opportunity
The market opportunity for Ladies Handbag as derived in this report extends to urban consumers from Tier 1,
Tier 2 and Tier 3 cities. Below is the tabulation of the market size across urban Tier 1, 2 and 3 cities:
No.
1
Urban Conglomeration
No of Cities
Tier 1 Cities
NCR
MMR
Bangalore
Pune
Kolkata
Ahmadabad
Hyderabad
Chennai
Tier 2 Cities
Tier 3 Cities
Grand Total
Source : Reevolv Consumer Survey, Reevolv Research, Mckinsey Global Institute - Indias urban awakening report
Tier 1: Delhi-NCR,MMR (Mumbai Metropolitan Region Mumbai, Navi Mumbai, Thane) Kolkata, Bangalore, Chennai, Hyderabad, Pune,
Ahmadabad (cities with population of more than 5 million).
Tier 2: Agra, Allahabad, Amritsar, Aurangabad, Bhopal, Coimbatore, Chandigarh, Dhanbad, Durg-Bhilainagar, Vishakhapatnam, Gwalior,
Indore, Jabalpur, Jaipur, Jamshedpur, Jodhpur, Kannur, Kochi, Kanpur, Kollam, Kota, Kozhikode, Ludhiana, Madurai, Malappuram,
Lucknow, Meerut, Nashik, Patna, Nagpur, Raipur, Rajkot, Ranchi, Srinagar, Surat, Thiruvananthapuram, Thrissur, Tiruchirappali,
Vadodara, Varanasi and Vijaywada. (Cities with population of 1 to 5 million).
Tier 3: Ajmer, Aligarh, Amravati, Asansol ,Bareilly, Belgaum, Bhavnagar, Bhubaneswar, Bikaner, Bokaro, Cuttack, Dehradun, Durgapur,
Erode, Firozabad, Gorakhpur, Gulbarga, Guntur, Guwahati, Hubli-Dharwad, Jalandhar, Jammu, Jamnagar, Jhansi, Kolhapur, Malegaon,
Mangalore, Moradabad, Mysore, Nanded, Nellore, Puducherry, Rourkela, Saharanpur, Salem, Sangli, Siliguri, Solapur, Tiruppur, Ujjain,
Warangal (cities with population of 0.5 to 1 million).
2.2.
Growth Drivers
3. Business Dynamics
3.1.
Business Model
The graphical representation of the prevalent business model in Ladies Handbag industry is depicted below:
Diagram
3.2.
Buying Criteria
3.3.
3.4.
Key Challenges
4. Competitive Mapping
4.1.
Market Segments
Diagram
4.2.
Leather Handbags:
The leading leather handbag brands as populated in the table below with the products across market
segments.
Mass
Brand
(<Rs 2500)
Adamis
Blue and Blues
Da Milano
Gucci
Hi-design
Holii
Louis Vuitton
Semi Premium
Premium
(Rs 2501 Rs
4500)
(Rs 4501 Rs
7000)
Luxury
(>Rs 7000)
Brand
Aldo
Alessia74
Baggit
Caprese
Charles&Keith
Esbeda
Fiorelli
Guess
Lavie
LinoPerros
Peperone
Rhysetta
Mass
SemiPremium
Premium
Luxury
(<Rs1500)
(Rs1501Rs3000)
(Rs3001Rs4500)
(>Rs4500)
4.3.
Leather Handbags:
The SKU concentration of respective brands across market segments can shed further light on the target
segments of the brands. The graphical representation of SKUs across brands and market segments is shown
below:
Diagram
Non-Leather Handbags:
Diagram
4.4.
Leather Handbags:
The table below populates the various brands with their brand position, target customers and distribution
mechanisms, along with the segments their respective products cater to.
Brand
Positioning
Target Customer
Significant
Presence
Distribution
SP
Adamis
Blue & Blues
Da Milano
Hi-design
Holii
M - Mass Segment (<Rs 2500), SP - Semi Premium (Rs 2501 Rs 4500), P - Premium (Rs 4501 Rs 7000), L - Luxury (>Rs 7000), EBO Exclusive Brand
Outlet, MBO Multi Brand Outlet, CECP Company owned E-com Portal ,OEC - Other E-Com Portals, TC Traditional Channels of retailers and
wholesalers, NS Not Specific, NA Not available
10
Positioning
Target Customer
Significant
Presence
Distribution
SP
Aldo
Alessia 74
Baggit
Caprese
Charles & Keith
Esbeda
Fiorelli
Guess
Lavie
Lino Perros
Peperone
Rhysetta
M Mass(<Rs 1500), SP - Semi Premium(Rs 1501 Rs 3000), P Premium(Rs 3001 Rs 4500), L Luxury(>Rs 4500) EBO Exclusive Brand
Outlet, MBO Multi Brand Outlet, CECP Company owned E-com Portal ,OEC - Other E-Com Portals, TC Traditional channels of retailers and
wholesalers, NS Not Specific, NA Not available
Key Takeaways:
11
5. Select Interviews
Store Manager , Luxury Brand
Questions
Answers
12
Answers
Answers
13
Answers
14
Answers
15
Answers
6. Consumer Survey
Below are the results of the primary survey of women customersacross age groups.The respondents are
from tier 1, 2, 3 and other cities across India. The sample size is xxx. The results of this survey are in four
parts as under:
6.1.
Overall
2.
3. At what price does she buy handbags and how long does she use it?
Casual vs. Formal vs. Party / Evening / Special Occasion Handbag
6. In handbags which are the top brands does she buy? And Why?
Brands
Awareness
Usage
Pricing
Variety
Quality
Baggit
Caprese
Hidesign
Lavie
Esbeda
7. Does she struggle to find a handbag? What according to her are the gaps in the handbag
industry?
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
16
6.2.
Market Segment
The handbag market can be mainly be categorized into three broad segments Students, Housewife and
Working woman.
1. How many handbags does she buy?
2. From where does she prefer to buy handbags?
Branded
shops
Malls/ Dept.
stores
Local
shops
Hawkers
Exhibitions
Hotels
Online
Housewife
Student
Working Woman
3. At what price does she buy handbags and how long does she use it?
Housewife
Casual
Price (INR)
Duration of Usage(Year)
Formal
Price (INR)
Duration of Usage(Year)
Party/ Evening / Special Occasion
Price (INR)
Duration of Usage(Year)
17
Student
Working Woman
6. In handbags which are the top brands does she buy? And Why?
Usage
Awareness
Price
Variety
Quality
Baggit
Housewife
Student
Working Woman
Caprese
Housewife
Student
Working Woman
Hidesign
Housewife
Student
Working Woman
Lavie
Housewife
Student
Working Woman
Esbeda
Housewife
Student
Working Woman
7. Does she struggle to find a handbag? What according to her are the gaps in the handbag
industry?
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
Housewife
Students
Working Women
18
6.3.
Region Wise
East
West
South
Overall
Housewife
Student
Working Woman
East
Branded shops
Local shops
Exhibitions
Hawkers
Online
3.
South
At what price does she buy handbags and how long does she use it?
Price
Causal Handbag
Formal Handbag
North
East
West
South
19
Duration
West
6. In handbags which are the top brands does she buy? And Why?
Rank as
per Usage
Brands
North
Baggit
Caprese
Hidesign
Lavie
Esbeda
South
Baggit
Caprese
Hidesign
Lavie
Esbeda
West
Baggit
Caprese
Hidesign
Lavie
Esbeda
East
Baggit
Caprese
Hidesign
Lavie
Esbeda
20
Usage
Awareness
Price
Variety
Quality
7. Does she struggle to find a handbag? What according to her are the gaps in the handbag
industry?
Sometimes
Never
Always
Sometimes or Always
North
East
West
South
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
North
East
West
South
21
6.4.
Tier I Cities
Tier I Cities
(per annum)
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Comments
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
22
Branded
shops
Malls/ Dept.
stores
Local
shops
Hawkers
Exhibitions
Hotels
Online
3. At what price does she buy handbags and how long does she use it?
Casual handbag
Price
(INR)
Party/Evening/Special
Occasion Handbag
Formal Handbag
Duration
(Years)
Price
(INR)
Duration
(Years)
Price
(INR)
Duration
(Years)
Style/ Design
Comments
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
Casual handbag Formal handbag Party/Evening/Special Occasion Handbag -
Price
Brand
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
23
Sale /
Discount
New designs/
Patterns/
Colour
Want to match
with current
trends
Impulse
purchase
Whenever you
need them
Comments
24
Comments
7. Does she struggle to find handbags? What according to her are the gaps in the handbag
industry?
Struggle to find handbag
Gaps in handbags
Tier I Cities
Sometimes
Never
Always
Variety
Design/
Colours
Price
Quality
Availability
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
8. Does she buy handbags online and from where? If No, is she willing to buy in the future?
Tier I Cities
Mumbai
Delhi
Pune
Hyderabad
Bengaluru
Kolkata
Chennai
Ahmadabad
25
Percentage of women
who have bought online
Top Websites
None
Revenues
EBITDA
PAT
ROCE %
ROE %
Enterprise Value has been calculated based on Pre-money valuation as we have assumed that the funds invested will take
at least a year to yield profitability
*** - Enterprise Value has been calculated based on Gross Debt assuming that funds raised have not been fully deployed
26
8.1
xxx
8.1.1. Overview
Description
Company Name
Founder
Year of Inception/
Inception
Incorporation
Incorporation
About Company /
Brand
Brand(s)
Total no. of Outlets
Production Facilities
Raw Material
Types of Handbag
Distribution
Online Sales
Future Plans
Source Company Website and Reevolv Research
27
8.1.2. Location
Tier I Cities
Tier II Cities
28
No. of SKU's
8.1.4. Financials
Profit & Loss Account for the year ended 31st March (Rs. Mn)
FY2009
FY2010
FY2011
FY2012
FY2013
Other Income
Total Revenues
Employee Expenses
Other Expenses
Total Expenditure
EBITDA
Depreciation
EBIT
Interest
PBT
PAT
29
FY2010
FY2011
FY2012
FY2013
Share Capital
Share Application Money
Reserves & Surplus
Shareholders Funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital work in progress
Investments
Inventories
Sundry Debtors
Other Current Assets
Total Current Assets & Advances excl. Cash & Bank
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source: Company Filings, Totals may not tally due to rounding off errors
30
Key Ratios
Expenditure Ratios
Cost of material consumed as a % of Total Revenues
Rent, Rates and Taxes as a % of Total Revenues
Administrative & Other Expenses as a % of Total Revenues
Employee Expenses as a % of Total Revenues
Selling and Distribution Expenses as a % of Total Revenues
Profitability Ratios
EBITDA %
EBIT%
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Total Debt / Net Worth
Secured Debt / Net Worth
Total Debt / EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
Source: Company Filings and Reevolv Research
31
FY2009
FY2010
FY2011
FY2012
FY2013
9. International Players
9.1.1 Coach
Description
Company Name
Brand(s)
About Company/Brand
Popular Products
Target Market
Market Strategy
Geographical presence
Source : Company Website and Reevolv Research
32
9.2
XXXX
The Origin/Start
Management Transition
No.
Challenge
Current status
Future plan:
33
Prada Strategy
10 Annexure
10.1 Ratios
Key Ratios
Cost of Material Consumed
Cost of Material Consumed %
X 100
Total Revenues
Employee Expenses
Employee Expenses %
X 100
Total Revenues
Selling & Distribution Expenses
X 100
Total Revenues
Administrative Expenses
Administrative Expenses %
X 100
Total Revenues
EBITDA
EBITDA %
X 100
Total Revenues
EBIT
EBIT %
X 100
Total Revenues
PBT
PBT %
X 100
Total Revenues
PAT
PAT %
X 100
Total Revenues
EBIT
ROCE %
X 100
Capital Employed
PAT
ROE %
X 100
Net Worth
Capital Employed
Total Revenues
Working Capital Turnover Ratio
Net Current Assets excl Cash Bank
Total Revenues
Net Fixed Assets Turnover Ratio
(Net Fixed Assets excl Capital Work in Progress)
Inventory
Inventory Days
X 365
(Cost of Material Consumed)
Debtors
Debtors Days
X 365
Total Revenues
34
10.2
Abbreviations
Description
Bn
Billon
CAGR
CCD
CCPS
CECO
CY
Calendar Year
EBIT
EBITDA
EBO
EV
Enterprise value
FY
Financial year
Luxury
LFR
Mass segment
MBO
MMR
Mn
Million
NA
Not available
NCR
NM
Not meaningful
NR
Not relevant
NS
Not specific
OEC
Premium
P/E
Price to earnings
PAT
PBT
ROCE
ROE
Return on equity
SP
Semi premium
TC
Traditional channel
35
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36