MYE: Max Your Earnings

MYE your earnings

MAX YOUR EARNINGS (MYE) INCENTIVES PLAN FY20 PROMISES ATTRACTIVE bENEFITS TO ALL ACROSS THE bOARD – FROM STAFF MEMbERS TO STORE HEADS - wHO ARE wILLING TO PUT IN EFFORTS

For charting performance and achievements, and keeping track of yearly incentive payouts, all MAX stores are categorised as one of three: Wannabe, Spotlight, or T60 stores. Under this umbrella, all Max store employees are identified as belonging to one of the following ranks: Staff, DM, ASM, SM and Store Head. The MAX FY20 incentive plan is organised around these groupings. Simply choose your store and identify your employee rank to know all the incentives. Here’s a look at the monthly potential earning for employees across all stores.

Wannabe: In a month, the staff of Wannabe stores can earn a minimum of `1,000 and a maximum of `3,400. The minimum monthly earnings for DMs is `1,800 and the maximum is `5,800. Store Heads stand to earn a minimum of `2,500; their earnings can go up to `7,700 per month. monthly earning potential is `1,000 and the maximum is `3,400. DMs stand to earn a minimum of `1,800 and a maximum of `5,800. For the ASMs, the minimum is `2,500 while the maximum is `7,700. ASMs can earn up to `9,400 per month, while their minimum is earning is `3,000.

T60: All staff members of T60 stores can earn a minimum of `1,200 while their maximum earning potential goes up to `4,400 per month. For DMs, the minimum earning is `2,000 while the maximum limit is `6,800. ASMs stand to earn a minimum of `3,000 and a maximum of `8,400 in a month. SMs can earn a minimum of `3,500 and a maximum of `11,100 every month.

All employee incentive payout slabs are linked to their store achievement and store category.

we have reached Top half-year ly apparel indus ‘w ear’

we have reached Top half-year ly apparel indus T ry T rends ear’ ry rends Ind I ans spent a whopp I ng ` 5,408 bI ll I on on apparel I n 2018. by 2022, the I ndustry I s set to be worth $59.3 bI ll I on - the s I xth largest globally. Constant I nnovat I on, global standards, leverag I ng te C hnology & C ustomer-f I rst approa C h are beh I nd the su CC ess. take some C ues here!

self-disruption New technologies, social media and the number of young consumers demanding novelty have driven established brands to undergo a process of ‘self-disruption’ – disrupting their earlier ways of thinking and re-inventing themselves. Challenger brands using social media and e-commerce distribution models have taken up a major portion of the market share, forcing established brands to change rapidly. Creative officers of some brands have undertaken brand makeovers, while others have revamped the existing business models. Louis Vuitton, for example, has introduced a more playful ‘streetwear” style to their range to appeal to the younger Gen Z buyers.

digital presence With spreading internet access (there were 460 million internet users in 2018, set to double by 2021 to more than 900 million), branding and IT teams of apparel companies have worked rapidly to establish a digital presence for their company. Many have set up individual digital platforms for their companies, while others have linked up with multi-brand websites to enable online

More and more buyers are using plastic money – a massive ` 38,133 billion in 2018 – driving impulse buying in the apparel sector.

advertising and selling. Many are also leveraging social media platforms such as Facebook to connect instantly with consumers and compete effectively against online-only sellers like Amazon. As the online sales for fashion, particularly for apparel and footwear, continue to increase rapidly, branding officers will continue to upscale and develop expansive digital plans to make their brands the consumer’s preferred choice online.

‘Gold collar’ worker Disposable income in India has grown from `0.7 lakh in 2012 to `1.4 lakh in 2019 (GNDI), creating a new kind of consumer. As Sanjay Kapoor, founder of Genesis Luxury (an Indian luxury retail conglomerate) says, “We are moving on towards the ‘gold collar’ worker.

It’s a term that defines the highly paid professionals who are happy to look good, happy to feel good, and are expanding the consumption of today.”

The changes in lifestyle, rising aspirations and awareness of global trends of this new class are driving them to demand personalisation of apparel, making

production consumer-centric rather than brand-centric. The ‘gold class’ worker is no longer satisfied with a ‘one size fits all’ solution. This new class of consumers will continue to demand more of the product development officers, both in terms of apparel categories as well as how well they can cater to personal needs.

social media influencing buying decisions Picture this scenario: you are scrolling through your Facebook or Instagram account and you come across your friend’s selfie wearing a trendy jumpsuit. Or you look at the Facebook post of your distant relative’s wedding and start comparing what you wore with what everyone else was wearing. Instagram, Twitter, Facebook, Snapchat, Pinterest and other trending social media platforms have become key influencers in shaping the buying decisions of young girls and boys. In fact, as per a McKinsey report, a whopping 74% of online customers make purchasing decisions influenced by social media. Social media officers and data analytics teams are already analyzing this data to understand what products to launch when, and this trend is likely to increase further as this year progresses.

Growing women’s wear segment While the market share of the men’s wear segment was still the largest at 41% in FY2018, women’s wear is on the rise at 38%. The number of new-age working women with high incomes has grown, as has the number of college-going females – all key drivers of this change. Women are no longer satisfied with regular patterns and colours. Product development officers have introduced different styles and categories of readyto-wear apparel in various colours, sizes and patterns to meet this demand.

Interestingly, even though many women – especially those in metro cities – are experimenting with different styles and categories of western wear, women’s ethnic wear constitutes the major share of the market and is expected to account for 65% market share even by 2023, as per a McKinsey report. Product development officers will do well to continue to introduce new styles in Indian ethnic and Indo-western fusion wear if they want to continue to dominate the women’s wear market.

Kidswear on the rise The kids apparel segment has grown tremendously, at a CAGR of around

Tween fashion 9-15-year-olds are the newest generation of consumers. Far from the Mickeys and Donalds, they want to look like adults! How are brand officers meeting this demand? • A new “Tween” category exclusively for this age group • New kids fashion wear that imitates adult fashion • A smaller size “S” within the adult range US Polo, Flying Machine, Titan and Lifestyle are some of the brands targeting tweens.

11% during 2013-2018. CARE Ratings has touted it as the smallest, yet fastest-growing segment. Product development officers of more and more Indian and foreign brands that previously only catered to adults are stretching their product lines to include kidswear. With rise in the number of nuclear family setups in metros and growing disposable incomes, working parents are spending more on the comfort and convenience of their children.

The close-to-375 million young population in the country under 15 years of age, many of whom are avid internet users, are now themselves choosing what they want to wear. Capitalising on this, advertising and marketing officers are using focused advertising, right product selection and visual merchandising to attract both parents and children to their new, or existing, kidswear brands.

new retail stores Retail outlets are on the rise – organised retail has risen from $18 billion in 2012 to $1,245 billion in 2018. As more malls open up, footprints increase and more ready-to-wear options and more private labels come up, this number is expected to increase even further.

retail outlets at airports... the middle class section that can now afford both domestic and international air travel, as well as fancy vacations, and the new Gen Z work travellers, are target customers for apparel stores here. But as more and more of the young, tech-savvy Gen Z become the new big spenders in 2019 and Gen X and Y become more aware of fashion trends, the marketing and branding teams of apparel companies will have to re-invent their retail stores and create what are called ‘experience stores’.

Digital marketing displays, improved checkout experience and the use of augmented reality for displaying outfits on consumers will be some of the key hallmarks of this change.

digitalization This is the age of digitalization. Innovation and IT teams of apparel companies are actively understanding and leveraging technology to provide a better experience to consumers. Many have used technology to make the post-purchase experience smoother and happier by providing accurate, real-time tracking of products out for delivery. Others are using Artificial Intelligence (AI) to introduce customer service chatbots on their websites. Data and analytics experts are using these tools to understand the tastes of individual customers so that companies can appeal directly to individual tastes. As technology further advances, AI may be able to predict fashion trends and help fashion officers decide what and when to sell.

They may also be able to leverage technology and data to reduce the time to market by shortening development timelines and producing in small runs. That may be the best way forward to earn customer loyalty and ensure repeat purchases.

sustainability New gen consumers – millennials and Gen Z – look at not only the products but also the company’s ethos and values before they make a purchase, making companies more conscious of social and environmental issues. CSR teams of nuMero uno One of the few brands that design, manufacture and market their own denim, Numero Uno has expanded its product range to include cool, stylish patterns; shades and designs of shirts, tees, jackets; and accessories that are best for the growing young consumers. Wrangler An American clothing company established in 1947, Wrangler sells clothes for tough, outdoor jobs as well casual wear for both men and women. Best known for its rugged and stylish jeans, Wrangler continues to appeal to the youth of today.

forwardlooking industry players are looking at building a ‘Circular Fashion Industry’ globally. This will involve using resources efficiently, gradually phasing out substances of concern, utilising clothing effectively and improving recycling. Many innovation officers are doing this by either shifting to alternate materials or using innovative retail PePe Jeans Pepe Jeans is the go-to brand for denims and casual wear among the youth. It continues to appeal to Gen Z with its high-quality clothing that includes T-shirts, jeans, regular fit shirts, polo shirts, capris etc. for men, women and juniors.

MonTe Carlo Launched in 1984 by Oswal Woollen Mills, the brand is one of the first fashion apparel brands in India. Alongside knitwear, it offers a wide range of clothing for men, women and tweens. It has also been a clothing partner for hit Bollywood movies such as Barfi and Mary Kom.

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MufTi Launched in 1998 by Mr. Kamal Khushlani, it’s an exclusive menswear brand offering an alternative dressing solution for men who don’t conform to mainstream fashion. It has expanded its collection beyond shirts and denims to cater to the new demands of millennials.

allen solly One of India’s largest and fastest growing brands, it is known for its high-end clothing and style. With both massmarket and high-end options in its product range, it caters to every age group, having recently launched Allen Solly Junior to tap into the rising kidswear market.

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Park avenue Having earned the title of the leading “Ready Made Garment” for men in the country, this trendy brand launched its women’s wear collection in 2007 to tap into the rising demand, particularly in the northern part of the country.

models. For instance, Wills Lifestyle has stated that it will utilise only natural fabrics. Chennai-based startup

Trustrace is using blockchain technology to improve transparency and traceability in the supply chain, while others such as Flyrobe are looking at new retail models of rental and second-hand clothing. levi’s It is the go-to brand for Gen Z consumers who love the comfort of the jeans and casual wear – the main focus areas of Levi’s.

Provogue Launched in 1998 as a menswear fashion brand, it now also offers women’s fashion apparel and accessories. With its own garment manufacturing facility in India, Provogue continues to meet fast-to-market demand and evolve garment designs, introduce new categories and enhance its retail environment.

Sustainability may soon become the only way forward for apparel companies. van Heusen Known for its gorgeous textiles and tailored fitting, the brand is best at creating niche formal clothing. It is now expanding its collection to include new categories such as athleisure, and also offers party wear and ceremonial wear for both the new-age man and woman.

strong urban apparel market

As per a CARE Ratings report, 20% of apparel is still bought in the top metro cities of the country, making the cities of Delhi, Mumbai, Bengaluru Chennai etc. the largest consumers of apparel in India. “Considering that less than 20% of India’s population lives in these cities indicates the higher purchasing power in urban areas and frequency of purchases,” the report noted. These markets also sell more women’s western wear as compared to Tier-II or Tier-III cities. Increased migration to urban cities, easy access to malls and other organised retail chains and increase in disposable income for migrants continues to drive growth in urban areas, making it a lucrative ground for product officers to continue introducing new products and styles in both the Indian and western wear categories.

Tier -ii & Tier-iii markets on the rise Yes, urban cities control the major share of the apparel market, but apparel spends are rising in Tier-II and III cities with rise in disposable income, proliferation of e-commerce and the popularity of the mall culture in Tier-II cities such as Indore, Surat and Kochi.

Brands opening stores in non-metro locations has only facilitated this. Further, shoppers in Tier-II and Tier-III cities are also net-savvy now with ample exposure to social media platforms, making them more conscious and aware of global fashion trends. But this segment of the population continues to remain value conscious, making the medium and economy-price apparel the preferred purchase options.

But as development officers of more and more brands continue to explore Tier-II and III cities as viable markets, the economy-price category may soon vanish, and brands may need to introduce luxury goods even in these markets.