Apparels & Personal Care

Industry : Our view

Apparel & personal care industry is complex. Manufacturers & retailers should compliment in positive manner in order to create positive impact on customers. Industry has short product life cycles, tremendous product variety, price conscious customer & an unpredictable demand. It creates difficult situations for companies to produce a brand image that appeals to larger group.

Coupled to that is almost nonexistent switching cost. Manufacturers engagement of end customers is mostly through channels & retailers. Retailers have larger influence in sales conversions, brand & customer loyalty. This erodes manufacturer margins & face medium & long term customer attrition risks.

In order to ensure long term success, manufacturers should be able to leverage their existing customer base and be able to build relationships directly with end customers. Gaining the ability for direct customer engagement while managing customer loyalty over life would be next big opportunity. Most of apparel buying is impulsive & hence require promotion triggers different from traditional ads which have least brand recall.

Counterfeits & fakes also erode large portion of customer trusts. Particularly in premium categories, study indicate 20% of apparels sold in market are counterfeit with some products like silk, counterfeiting is crossing over 40%. Presence of large counterfeits drives many customers away from brand.

Cormorant has suite of products that help manufacturers to engage end customers directly, create individualized promotions and also help identify & deter counterfeits.