ASHIKA GROUP OF COMPANIES
ASHIKA GROUP PROFILE
⇒ One of the best known names in ladies ethnic wear market. ⇒ Strong foundation in the business since 1975. ⇒ One of the leading manufacturers and traders in the segment. ⇒ Suppliers to pan India retail chain stores. ⇒ World class manufacturing facilities at Dahisar & Surat. ⇒ Branches spread in key cities like Surat, Kolkata & Varanasi. ⇒ Aggressive expansion plans in retail & e-commerce sector.
GROUP COMPANIES & DIVISIONS
⇒ Ashika Sarees Ltd. ⇒ Binod Kumar & Co. Pvt Ltd. ⇒ Ashika Textile India Pvt. Ltd. ⇒ Ashika Fashionwear. ⇒ New Hind Silk House. ⇒ Ashoka Selection. ⇒ Saurabh Prints.
CHANNELS OF PRODUCT OFFERING
⇒ Direct Retailing ⇒ Franchisee Stores ⇒ Sales & Distribution ⇒ Wholesale throughout India through excellent network of dealers & retailers ⇒ Export to countries like United Kingdom, Unites States of America, Sweden, Australia, Mauritius, Malaysia, South Africa, Kuwait and many others. ⇒ Retailing across the internet worldwide, through more than 20 websites.
⇒ www.ashika.com ⇒ www.ashikamall.com ⇒ www.ashikafashionwear.com
MARKET PRESENCE – C.O.C.O & FRANCHISE STORES
Belgaum, Rewari, Latur, Jabalpur, Mumbai, Cuttack, Bhubaneshwar, Indore, Junagad, Malegaon, Sangli.
ABOUT ASHIKA FASHIONWEAR
⇒ Innovative retail format, selling ladies ethnic wear and accessories. ⇒ Product mix consists of sarees, salwar suits, kurtis and accessories like handbags & stoles ⇒ Strong advertising and sales promotion activities in various mass media like newspapers, radio, mobile advertising, internet marketing and press releases. ⇒ Trained and experienced salespersons and store managers managing the current stores. ⇒ Strong 40 year old brand among masses, mainly in Tier II and Tier III cities and towns. ⇒ Excellent value offering in terms of stock. ⇒ Human Resource training offered.
OPPORTUNITY INDIA The total consumer spend in the country in 2007-08 was Rs. 22540 billion at current prices, and a large part of this was accounted by the 300 million middle class, the ‘real’ consumers. Reports indicate that these numbers could swell past 600 million by 2010 – considered sufficient to establish India as one of the largest consumer markets of the world. RETAILING IN INDIA ⇒ Retail sales stands at Rs. 10200 billion, and is growing by 5 percent annually. ⇒ Organized retail – Rs. 350 billion – constitutes about 3.4 percent of retail sales, but is growing at 30 percent each year. ⇒ Organized retail is projected to cross Rs. 1000 billion mark by 2010. ⇒ Rs. 200 billion investment in the pipeline. ⇒ Overwhelming acceptance of modern retail formats.
CHANGING CONSUMER LIFESTYLE AND PREFERENCES ⇒ Increased brand consciousness ⇒ Design and quality acquiring significance ⇒ Increase in number of working women ⇒ Lifestyle branding ⇒ Market for niche segments ⇒ Increased credit friendliness ⇒ Increased effort to feel and look good ⇒ Influence of international travel and media has helped in propagating fashion consciousness ⇒ Willingness to experiment ⇒ Increased disposable income ⇒ Easier and uninhibited acceptance of luxury
THE APPAREL MARKET SCENARIO Product segment wise, menswear has maximum share of the overall apparel market (36.9 percent) in value terms, followed by women’s wear (32.1 percent), kids wear, uniforms and unisex apparel in that order.
share of m ajor categories in India's A pparel M arket
men's shirts 22% 16% 9% 9% 14% 7% 15% men's trousers w en's ethnic w om ear sarees 8% innerw ear kids w ear uniforms other categories
Sarees, with 15 percent of the overall market share in value terms, is the second largest category followed by kids wear and uniforms. WOMENSWEAR There are clear signs of revolutionary changes taking place in this category. Ethnic wear still controls three-fourths of women’s apparel market especially for party and other occasions. SAREES There has been excellent value appreciation in this garment category with as high as 46 percent growth in the super premium range where volumes also increased 24 percent, over 2006. The low end witnessed 10 percent value appreciation. Growth prospects therefore are higher. and contrary to initial indications, the craze for designer sarees is being reinforced as a fashion statement,
KAMEEZSALWAR KAMEEZ-DUPATTA The women’s ethnic wear category which mainly comprises salwar kameez, is clearly moving up the value chain with the economy to super premium ranges experiencing high appreciation in value around 18 percent in the economy and mid ranges, and 2333 percent in the premium and super premium ranges.
ASHIKA FASHIONWEAR FRANCHISE DOCUMENT FOR EXCLUSIVE BRAND OUTLET
The company offers franchises to potential applicants based on the following guidelines. These are common to all formats offered for franchise LOCATION, DESIGN & INTERIORS ⇒ The store’s carpet area has to be a minimum of 450 sq ft., preferably on a high street. ⇒ The showroom design will be provided by the company, on the basis of which the franchisee will undergo the furniture and civil work expenditure. ⇒ The net cost of store interiors and furniture will range from 900-1400/- per sqft, which will cover flooring, ceiling, air conditioning, electrical fittings & wiring, POP work, painting, carpentry. ⇒ The company officials shall assess the location through a personal visit, on several parameters. STOCK & SECURITY DEPOSIT ⇒ The company will supply the stock on consignment basis, and will fix the MRP before dispatching the goods to the store. ⇒ The franchise will get the stock against an interest free security deposit. ⇒ The company will replenish stock based on sale reports and internal discussions. ⇒ The company will take back unsold stock, as it may be required at other store locations. Though the company’s decision on this depends on the situation at that point of time, and is in congruence with the franchisee. ⇒ The stock supplied to the franchisee will bear MRP fixed by the company.
MINIMUM GUARANTEE & OPERATIONS ⇒ The agreement between both parties will be on a 3yrs+3yrs basis, on mutual agreement, with a lock-in period of 1 year. ⇒ The franchise will deposit sales proceeds on a daily basis to the company bank account. ⇒ The company will provide a Minimum Guarantee to the franchisee, based upon the store carpet area. Franchisee gets MG or commission, whichever is higher. ⇒ The company will bear insurance expenditure only on the stock. The insurance expenditure of the store will be borne by the franchisee. ⇒ Tailoring facility for the customers will be provided by the franchisee. ⇒ The company will offer 31% as franchisee margin. ⇒ In times of discount sale or such schemes, the discount offered will be shared by both sides equally. ADVERTISING & PROMOTION ⇒ The company shall undertake marketing, sales promotions and advertising activities from time to time. ⇒ The franchisee is entitled to spend 1% of the sales turnover on sales promotion locally, at his end. ⇒ The company will provide the design for the main signage for the store, the cost of which will be borne by the company. ⇒ The company will provide plastic packing material and shopping bags to the franchisee, depending on the sale. The franchisee will have to bear 50% cost of the same. (*) ⇒ Discounts offered by the franchisee in non-scheme cases are to be borne by him. STAFF & SOFTWARE/HARDWARE ⇒ The Point Of Sale software license cost will be borne by the company, but the hardware will be provided by and the cost borne by the franchisee. The hardware will be as per the configuration provided by the software developer. ⇒ Franchisee will appoint expert salesperson and store manager. The company will provide full training and support to the store owner and his employees.
(*) – For eg: We have 3 sizes of shopping bags: • • • Small size: Meant for blouse pieces – Rs. 1 Medium size: Meant for 1-2 items – Rs. 2 Large size: Meant for more than 3 items – Rs. 3
The above mentioned cost is 50% of the actual cost i.e. Rs.2, Rs. 4 and Rs. 6 respectively. Boxes for gift packing can be made available if requested. The same will come at a cost of Rs. 7 per box, the actual cost for which is Rs. 14 Jute bags, bearing Ashika Fashionwear logo can be made available if requested. The same will come at a cost of Rs. 10 per bag, the actual cost for which is Rs. 20
FRANCHISE APPLICANT ASSESSMENT FORM
To help us evaluate your proposal in a fair manner, it is requested that you furnish all these details. The information provided by you will be kept strictly confidential. Name: Address:
Age: Marital status: Phone: Office: Residential: Mobile:
Email: Qualification: Educational Qualification Graduate: _______________ Post graduate: __________________ (please specify the stream of education; eg – Bcom, HSC etc) Current Business/Occupation:
Previous work experience (in years): If you have worked as an employee, please let us know the following: NAME OF EMPLOYER DURATION DURATION REASON FOR LEAVING
Have you taken a franchise before?
If yes, which brand and industry?
Are you handling any franchise at present?
If yes, which brand and industry?
business? Do you have existing ground floor retail space to conduct business?
If yes, specify the shop address and carpet area in sq.ft. ______________________________________ __________________________________________________________________________________________
Will the franchise be owned and operated by yourself or a group or another person appointed group by you?
Preliminary Financial Disclosure What is your source of investment for this business? ⇒ Owned ⇒ Financed / Loan
For whom do you want to start this business? ____________________________________________
How long will you take to start the business? ⇒ 1 month ⇒ 3 months ⇒ 6 months
Investment capacity in our franchise model
An estimate calculation of yearly profit - 450-650 sq.ft. SALES
20000 per day on average * 365 days (working days are 365) franchisee margin @ 31% on MRP sales less: fixed expenses @ 13% Net return initial investment required 2263000 972000 1291000 1550000 7300000
return on investment is 83%
TOTAL SALES 20000 * 30 days Rent Electicity staff ( 1 cashier/store manager, 2 Sr. salesmen, 1 Jr. salesmen, 1 helpers) tele phone Miscellaneous approx 13% 600000 40000 7000 30000 1000 3000 81000
Security Deposit Computer hardware with peripherals Shop Interiors (1000 per sq.ft.) TOTAL 1000000 50000 500000 1550000
The company provides a Minimum Guarantee of 50000/- monthly The company requires a minimum sale of 10000/- per day or 300000/- per month
An estimate calculation of yearly profit - 700-1000 sq.ft. SALES
30000 per day on average * 365 days (working days are 365) franchisee margin @ 31% on MRP sales less: fixed expenses @ 14% net return initial investment required 3394500 1560000 1834500 2270000 10950000
return on investment is 80%
TOTAL SALES 30000 * 30 days Rent Electicity staff ( 1 cashier/store manager, 2 Sr. salesmen, 3 Jr. salesmen, 2 helpers) tele phone Miscellaneous approx 14% of sales 900000 75000 10000 40000 1000 4000 130000
Security Deposit Computer hardware with peripherals Shop Interiors (900 per sq.ft.) 1500000 50000 720000 2270000
The company provides a Minimum Guarantee of 75000/- monthly The company requires a minimum sale of 15000/- per day or 450000/- per month