It is highly recommended that Disney utilize local and domestic vendors and an India local warehouse to support inventory requirements. In the data flow below, upon placing an online order, customers will be prompted to create a profile. Regardless to this request all order and customer information will be gathered in a data warehouse for further analytics. Orders that are placed will run through an Inventory management system which determines if SKUs that are ordered are coming from our domestic or foreign warehouse. This process is run for each individual item. In the event that products are split between both warehouses, two shipments may be required.
In addition to standard Disney apparel and merchandise, Disney would benefit in the introduction of specific lines of clothing representative of the India culture and lifestyle. While there is a trend for Western clothing, there is a very large demand for more traditional attire such as the following. As per an article on IndiaFolks.com, fashion trends in Indian include the following:
- Sari – A national attire worn by women
- Salwar Kameez – A two piece dress with a veil.
- Lehenga and Choli – A long skirt of ankle length and a blouse.
- Dhoti and Kurta – Dhoti is a cloth that gets wrapped around the waste of a man
Examples of these fashions are depicted below (as listed above from left to right):
Leveraging the power of the Disney brand and its films, the path to cultural Indian wear by Disney is clear. In fact, many of the Disney films have already entered this realm. The image below shows several of the Disney princesses in traditional Indian attire.
IndiaFolks. (2009) How do people Dress in India? Retrieved September 4, 2015, from http://www.indiafolks.com/history-and-culture/how-do-people-dress-in-india/
India is a rapidly growing economy with strong technical talent. In an article on livemint.com, Sapna Agarwal stated that, “By 2020, average household income will increase three times to $18,448 from $6,393 in 2010. This scenario is excellent for future consumer spending levels in India. With this alone, expanding operations to India is highly recommended. The question is raised as to what is brought to India? This decision is based on the risks of doing business there. Store fronts for retail locations are very Source : (thehindu.com) difficult and expensive to implement successfully. In these regards, Agarwal states in the same article,
“Brick and mortar retail challenges remain. For instance, the sales per square foot at Indian retail stores at 1,500 (22 dollars) to 2,000 (37 dollars) Rupee per square foot. Even the gross margins are lower in India by 7-8% than the International standards and the rentals are higher by 1.5-3% on an average.”
The retail market may not be ready for storefronts but online retail is already apparent and gaining momentum. The market strength of India appears to be favorable to e-commerce. There are currently over 35 million people buying online and with the expectation of more flexibility for consumer spending, that number is expected to be closer to 100 million by 2018. In addition, in an article by Amit Misra on dazeinfo.com, it is stated that “Indian consumers’ confidence in online shopping recorded 128% growth compared to 40% in the prior year period. With the online shopping explosion in India, the question is what is being purchased?
Source : (Dazeinfo.com)
As can be seen in the above chart, apparel and accessories are doing well in the India marketplace. With the current trend and favorable ecommerce landscape, the opening of an e-commerce store for clothing is likely to grow into a very prosperous business. India’s apparel market is growing at a rapid rate. According to Ireena Vital in an article from McKinsey,
“Rapid growth and rising urbanization have spawned a new class of consumers with more money to spend, and a growing passion for fashion. In India’s high-growth, fast-changing retail clothing market, we see significant new growth opportunities for foreign and domestic players” (Vittal, 2010).
The above graph shows the projected growth of India online sales through the DisneyStore.com if implemented. It gives an 18 month projection with the introduction of new more regional fashion at the 6 month mark. In addition, it shows the increase in India regional orders through local vendors and merchandise vs orders through the domestic supply chain. Within two years it can be expected that the India retail apparel segment can increase 30%.
Current Disney branded apparel and accessories would be a fair starting point but eventually the offerings will need to change to match the cultural differences and preferences in India.
Agrawal, Sapna. India’s Retail market expected to double in next 5 years: report. Retrieved September 4, 2015, from http://www.livemint.com/Industry/5Xu8P8GltZk8XEsz7Xk74O/Indian-retail-market-to-double-in-next-5-years-report.html
Brown, Mayer. India: Thinking Outside The BPO: Knowledge Process Outsourcing to India. Retrieved September 3, 2015, from http://www.mondaq.com/india/x/51196/Outsourcing/Thinking+Outside+The+BPO+Knowledge+Process+Outsourcing+To+India
Misra, Amit (2012). E-commerce in India: Consumer Interest went up by 128%. Retrieved September 4, 2015, from http://dazeinfo.com/2013/01/29/e-commerce-in-india-consumers-interest-went-up-by-128-in-2012-report/
Vital, Ireena. (2010). India’s fast-growing apparel market. Retrieved September 4, 2015, from http://www.mckinseyonmarketingandsales.com/indias-fast-growing-apparel-market
To all who come to this happy place: Welcome. Disneyland is your land. Here, age relives fond memories of the past, and here youth may savor the challenge and promise of the future. Disneyland is dedicated to the ideals, the dreams, and the hard facts that have created America, with the hope that it will be a source of joy and inspiration to all the world. (Walt Disney, July 17, 1955)”
With those telling words, the storied history of The Walt Disney Company truly began. The growth and success of an icon in the last sixty years has been remarkable. From the meager beginnings as a cartoon studio in the 1920s to the global media / entertainment and retail giant of today. Sixty years since the opening of Disneyland in California Disney now owns and operates four additional theme parks located across the globe in Tokyo, Paris, Hong Kong and the iconic Walt Disney World in Florida. In addition, acquisitions of ABC, Pixar, Marvel Entertainment and Lucas Film has created a new level of depth, agility and possibilities for continued corporate growth. The Disney conglomerate is made up of 5 separate business segments. They are:
- Media Networks – Representing broadcast, radio, cable and digital publishing. Consisting of Disney/ABC and ESPN
- Parks and Resorts – a well know leader for high level guest experience leisure and travel provider. Made up of several parks and resorts, Disney has an iconic reputation in this segment
- Studio Entertainment – One of Disney’s oldest businesses, has brought movies, movies and live entertainment to guests for nearly 90 years Source: Disneyland Report
- Disney Consumer Products – This business segment of the Walt Disney Company is responsible to bring guests innovative and enjoyable quality merchandise from books and clothing to toys and fine art
- Disney Interactive – covering platforms including mobile, social, console and web based offerings, Disney creates highly interactive and creative quality entertainment. Dinsey.com is the #1 ranked website in the world
Disney has several strong competitors in each of their business segments. Without surprise, Disney is strongest in Parks and Resorts and is highly dependent on domestic revenue for its continued success. The visual below displays the Disney market share for each segment in comparison to two of the strongest competitors in each segment.
Disney History. Retrieved September 3, 2015, from https://thewaltdisneycompany.com/about-disney/disney-history
CSIMarket. DIS’s Competition by Segment and it’s Market Share. Retrieved September 3, 2015, from http://csimarket.com/stocks/competitionSEG2.php?code=DIS