CUSTOMER BUYING BEHAVIOUR AT PANTALOONS

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CHAPTER-1: INDUSTRY PROFILE
1.1 Introduction
Accounting for around 14-15 per cent of the gross domestic product (GDP),
the Indian retail industry is estimated to be worth around US$ 500 billion
currently. Home to one of the top five retail markets in the world, India offers
immense scope of growth and opportunities in this area. As of now, almost 90
per cent of the Indian retail sector is controlled by tiny family-run shops i.e. the
unorganized segment. Thus, organized retailers have a lot of room for further
penetration in this flourishing economy. In 2010, larger format convenience
stores and supermarkets accounted for about 4 per cent of the industry, and
these were present only in large urban centers. Now the trend is changing,
and such concepts are mushrooming in smaller cities and towns as well.
Organized retail segment is expanding at 20 per cent a year, driven by the
emergence of shopping centers and malls and growing middle class.
India allowed overseas investment in its supermarket sector in September
2012. Since then, the retail landscape is witnessing a flurry of foreign
investments. Some of the facts, recent statistics and developments related to
the same are discussed hereafter.
RETAIL MEANING
Retail comes from the French word retailer which refers to "cutting off, clip
and divide" in terms of tailoring (1365). It first was recorded as a noun with the
meaning of a "sale in small quantities" in 1433 (French). Its literal meaning for
retail was to "cut off, shred, paring".
Business of selling products and services to the public as the ultimate
consumer. Retailing involves selling many different products and services,
either from a store location or in direct selling through vending machines and

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in-home presentations. First retailers in India include BATA, Pantaloons,
Bombay Dyeing, Spencer’s The case highlights the emergence and evolution
of PRIL from a small garment manufacturer to the retailer in India by the early
21st century. It examines the evolution and growth of PRIL until the mid-
1990s, and then traces the rationale behind the launch of its first retail format
Pantaloons, a family departmental store. It discusses in detail the marketing
and promotional efforts undertaken by PRIL for Pantaloons, which made the
store one of the most successful lifestyle stores in India in the early 2000s.
The case then examines the reasons for PRIL's entry into discount store and
food store businesses through Big Bazaars and Food Bazaars and discusses
in detail the strategies and marketing efforts put in place by PRIL to promote
these formats. Recent trends in the Indian retailing industry, changing
requirements and preferences of consumers, Understanding changing
consumer lifestyles.
1.2 Background
The organized retail industry in India did not evolve till the early 1990s. Until
then, the industry was dominated by the un-organized sector. It was a sellers’
market, with a limited number of brands, and little choice available to
customers Lack of trained manpower, tax laws and government regulations all
discouraged the growth of organized retailing in India during that period. Lack
of consumer awareness and restrictions over entry of foreign players into the
sector also contributed to the delay in the growth of organized retailing. This
allowed the un-organized sector to rule the Indian retailing industry. It was
during this time that the foundation of PRIL was laid by Biyani. Biyani was a
commerce graduate with a post-graduate diploma in marketing. After
spending five years in managing his family business of trading textile and
yarn, he started with apparel manufacturing in the mid-1980s. Is Kishor Biyani
a retailer or a fund manager? That question might well be asked of him in the

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not too distant future. Over the last few months, Future Capital Holdings
(FCH), led by CEO Sameer Sain, has stitched together a fully integrated
financial services business model.
Management business in India with almost $830 million in assets. Now, it has
big plans in insurance, retail lending and forex services. “Whether we have a
consumer who wants to leverage future income to realise his aspirations
today, or wants to save and invest, or buy protection for his family, we want to
be a part of it,” says Sain. He believes that in 5-7 years, FCH’s bottom line will
be bigger than the retail business! In the insurance business, the Future
Group has managed to wrest a 74 per cent stake in a joint venture by
investing just Rs 100 crore (its JV partner invested the same amount for a 26
per cent stake). “Italian Assicurazioni Generali, ranked 21 on the Fortune 500
list, is a good fit for us because they derive almost 17 per cent of their sales
from mall assurance. They have also partnered another retailer in the
Philippines,” says Sain. Biyani estimates that with just a 1 per cent footfall
conversion rate, the insurance business would have over 2 million customers.
That would earn him huge fees on distribution and catapult the company to
amongst the largest private insurance players by way of number of policies
sold. Despite the global economic recession and a consequent slowdown in
the Indian economy, organized retail continued to make headway although at
a slower pace in 2009. Nonetheless, if the current retail landscape is
compared with that of 2004, it has undeniably become a much larger
environment. Retail stalwarts such as Wal-Mart, Tesco and Marks & Spencer
have already made inroads into the Indian retail industry and with multi-billion
dollar investments.
1.3 Retail Scene in India
Million sq.fts in available mall space by the end of 2007.Food and Grocery
retail holds the most potential, as almost 99% of it is unorganized. The
Omnibus edition of Pantaloons retail papers spans this very happening sector,
which not only brings so much joy to the inveterate shoppers in terms of retail
therapy, but also employment and livelihood to tens of thousands of Indians.
India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its

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ripple effect on all industries – more so the Retail sector, of which only 3%
organized until now. The Indian retail industry accounts for 10% of GDP and
8% of employment. India is being touted as the next big retail destination with
an average three year Compounded annual growth rate of 46.64%.The Indian
economy is poised to take the third position in the world in terms of
Purchasing Power Parity by the year 2010.The Indian Retail Market is a Rs.
1,200,000 million market as per the Images India Retail Report
2007.Organized Retail market is zooming ahead with an annual growth rate of
30%.The Retail sector is vibrant with growth happening in all related areas –
be they malls, hypermarkets or single brand luxury stores, they have dotted
the commercial landscape of the metros, and have even percolated to the Tier
II and Tier III cities. Malls are fast becoming sought-after entertainment
hotspots. From a situation where There were no malls about a decade ago,
the country will have over 300 malls translating to over 100 Number of big
players is entering the field of organized food retail like Reliance, AdityaBirla
Group and the Bharti Group, which has tied up with the world’s largest retailer
–Wal-Mart. All these major players are expected to show an annual growth
rate of 25 – 30%.
The Retail boom has also led to the opening of a large number of single brand
outlets across the country. With big brands and bigger outlets across all
segments, from Apparel and Footwear, Watches, Books and Stationary to
Jewelry and Consumer Durables, the sweep is indeed broad. In to sample the
depth and breadth of this amazing sector.
Types of Retail verticals operating in India are:
Food and Beverage
Health and Beauty
Clothing and Footwear
Home Furniture and Household Goods
Consumer Durable Goods

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Leisure and Personal Good
Economic slowdown serves as reality check for retailers
The global economic crisis and its impact on India resulted in a slowdown of
the Indian economy in 2009. This caused consumers to tighten their purses,
and the availability of financial support for retail expansion dried up. This put a
halt to the unprecedented expansion seen over the review period. Lower
consumer confidence resulting from the recession, as well as job losses,
resulted in fewer visits to retail stores, and consequently sales plummeted for
major retailers. With consumers becoming highly discretionary, spending on
non-essential items such as lifestyle goods was highly impacted, making it
one of the worst performing categories.
Retailers with financial backing weather the storm
Credit from banks and other lenders has been difficult to obtain in the current
environment, and retailers have suffered severely as a result. Some retailers
are unable to pay rental fees because all lines of credit have dried up. In such
a tough operating environment, retailers under the umbrella of a diversified
holding company with access to internal funds are faring better than other
players. For example, Reliance Retail and Aditya Birla Retail emerged
relatively unscathed compared with smaller players such as Subhiksha and
Vishal Retail.
Internet retailing grows at phenomenal pace
Due to the increased penetration of credit cards and availability of computing
facilities to a wider population, Internet retailing is witnessing stellar growth.
Internet retailers offer products at discounted prices to consumers compared
with store-based retailers and bargain-hunting consumers are latching on to
this fact. This has become even more pronounced in light of the economic
downturn as consumers have become increasingly sensitive to price.

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India’s attractiveness stands over long term
India’s burgeoning middle class offers considerable promise for organized
retailing, which is expected to remain attractive to organized retailers over the
long term. Liberalization and financial reforms would remain a key factor in the
expansion of the organized retail environment. Currently, foreign direct
investment is not allowed in single brand retail, and it proved a major hurdle in
IDEA’s billion-dollar plans in mid-2009 to enter the organized retail
environment.
Impact Of Recession On The Indian Retail Market
The retail market in India is facing slowdown with the ongoing financial crisis
happening across the world markets. Since the markets always have
internally linked with each other, the impact of the crisis is generally shared
among all. The following circumstances are creating unwelcome interruptions
to the Indian retail industry. The industry hopes for the best alternations to
overcome the acrimonious situations. Markets in recession worldwide and
India too: The current meltdown in the world markets is shaking the globe
today. Not even a single country seems to be off the hook. The high level of
inflation has been a wet blanket for the global markets. The roots of the world
markets are nearly pulled away with the heavy downfall of the American
financial giants. Amongst many countries, India too not exempted from the
impact of world financial crisis. All this is leading to a temporary recess for the
markets from a regular busy schedule.
However, These fluctuations are not new for global market. For the decades
long, markets, across the world, have been witnessing such ups and downs.
But the ultimately fact is that the market growth rate is always constantly high
when comparing to such downfalls Economic slowdown The Financial crisis is
adding to the pressure on global economies. The International Monetary Fund
(IMF) now sees the world entering a major slowdown.

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Market Size
 The Indian retail industry has expanded by 10.6 per cent between 2010
and 2012 and is expected to increase to US$ 750-850 billion by 2015,
according to a report by Deloitte. Food and Grocery is the largest
category within the retail sector with 60 per cent share followed by
Apparel and Mobile segment.
 The foreign direct investment (FDI) inflows in single-brand retail trading
during April 2000 to June 2013 stood at US$ 96.96 million, as per the
data released by Department of Industrial Policy and Promotion
(DIPP).
1.4 Online Retail
Indian consumers are demonstrating an increasing interest in online
shopping, thanks to the surging number of online users. The growing online
retail market has become a very lucrative business for international majors as
well.
For instance, internet giant Amazon, which was dedicated to the biggest
markets until now, has commenced an India-centric website in June 2013.
India has surpassed Japan to become the world’s third largest Internet user
after China and the United States with almost 74 million Internet users, stated
global digital measurement and analytics firm comScore.
In addition to that, online retail web sites have witnessed a 65 per cent rise in
the traffic from the previous year, according to a survey by the Associated
Chambers of Commerce and Industry of India (Assocham).
The survey indicated that the market for online shopping in India, estimated to
be around Rs 52, 000 crore (US$ 8.19 billion), is expanding at a very fast
pace. The trend is not only catching up in metros, but in smaller towns and
cities as well.

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Retail Industry: Key Developments and Investments
 Sahara Q Shop has recently initiated its operations with 100 exclusive
convenience stores in Delhi/ NCR. The company is planning to open
400 such stores by March 2014 in the region. Currently, Sahara Q
operates 901 stores in 12 states and by the end by FY14; the company
intends to have 10,000 such stores across India. About 2,000 of these
will be opened in metros.
 American real estate firm Trump Organization is very positive on the
Indian real estate sector. The company has bog growth plans for the
Indian market and is scouting for a local partner to achieve its goals.
Trump reveals that India has always been an important growth market for
them and they want to harness the growing demand for luxury products in
the sub-continent. It believes that the brand will add
 Significant value to ultra-luxury developments - be in residential, hotel,
commercial, retail or golf.
International luxury products major are also very bullish on Indian retail
market.
 Italian luxury goods firm Bulgari is awaiting Foreign Investment
Promotion Board (FIPB)’s nod to set up exclusive retail stores in India
that will sell high-end jewellery, watches and accessories under its
'Bvlgari' brand. Part of the French luxury major LVMH Group, Rome-
headquartered Bulgai has made its application under the single-brand
route.
 On the similar lines, Meanwhile, Villeroy & Boch AG, the Germany-
based bath, wellness and tableware firm, has partnered with Genesis
Luxury Fashion to commence its operations in single-brand retail trade
in India. Villeroy & Boch’s application, seeking 50 per cent equity in the
joint venture (JV) Company for single-brand retail trade, has recently
got a nod from the FIPB. The FDI infusion in the JV would be to the

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tune of Rs 1.12 crore (US$ 176, 949.21).
 Genesis Luxury Fashion, that has brands such as Paul Smith, Bottega
Veneta, shoe brand Jimmy Choo, Italian label Etro and Armani and
home and personal care products from Crabtree and Evelyn under its
business in India, will exclusively manage the distribution of Villeroy &
Boch tableware products in the country. The alliance ensures the
establishment of a distribution network through the opening of Villeroy
& Boch’s exclusive retail stores in India.
 In a bid to tap the branded footwear market in India, which is estimated
to be about Rs 30,000 crore (US$ 4.74 billion), Aero Group (known for
its flagship Woodland brand) is planning to revive one of its old brands,
Woods. The company is contemplating to open around 30 new,
revamped Woods stores in 2013. The eight-year-old brand would now
lay its focus on the fashion quotient, rather than the typical outdoor,
rough and tough image of Woodland, and will have more of the range
for women.
Government Initiatives
In order to attract more of foreign funds and woo global majors such as Wal-
Mart ad Carrefour, the Government has further liberalized rules for
international investment in multi-brand retail formats.
Foreign retailers will now be allowed to open stores in cities that have a
population of less than one million. Earlier, supermarkets could only
commence their operations in 53 cities; the ones with more than a million of
population. A relaxation was permitted only in case of states that did not have
a single city with a population of one million. The initiative will now facilitate
opening of stores in cities such as Gurgaon and Aurangabad.
Meanwhile, the Government of India has recently approved 18 FDI foreign
direct investment (FDI) proposals worth US$ 173 million in the single brand
retail segment during April 2010 and May 2013. Out of these, five proposals

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worth US$ 137.68 million were approved during the first two months of 2013-
14.Fashion brand Promod, France-based crockery maker Le Creuset,
accessories firm Fossil Inc and French sports giant Decathlon are some of the
firms which have received approvals to open retail stores under the single-
brand retail policy.
The Government had raised the FDI cap in single-brand retail to 100 per cent
from 51 per cent in January 2012.
Road Ahead
The domestic retail market is projected to be worth US$ 1.3 trillion by 2020,
stated Mr KV Thomas, the Consumer Affairs Minister. Future prospects pose
a tremendous growth opportunity for retail players- domestic as well as
foreign. He further mentioned that the consumer behavior is also experiencing
a transition due to upcoming western concepts like online shopping and direct
selling. Another report by Booz & Co and RAI expects that the overall Indian
retail sector would grow 9 per cent in 2012-16, with organized retail growing at
24 per cent or three times the pace of traditional retail (which is expected to
expand at 8 per cent).
Deloitte also seconds this forecast and expects that organized retail, which
constitutes 8 per cent of the total retail market, will gain a higher share in the
growing pie of the retail market in India. Various estimates put the share of
organized retail as 20 per cent by 2020.
Exchange Rate Used: INR 1 = US$ 0.0163488 as on April 25, 2014

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CHAPTER 2: COMPANY PROFILE
2.1 Introduction to Pantaloons
Pantaloons is India's fastest growing premium lifestyle apparel company. With
innovative designs, concepts and products, the company brings the latest
trends in fashion and clothing styles to the apparel market.
The company offers an incredible and complete one-stop shopping
experience to its buyers through its vast collection of more than 100
prestigious brands for the discerning fascinates. The 81 aesthetically
designed stores spread across the country display a range of classy and
trendy merchandise that truly lives up to Pantaloons’ maxim of ‘fresh fashion’.
A typical Pantaloons store is spread across a sprawling retail space of about
28,000 sq. ft., comprising a brand portfolio that runs across a wide gamut of
styles that spell class. The collection includes ready-to-wear western and
ethnic apparel for men, women and kids, complemented by an exhaustive
range of accessories.
The women’s section houses the private labels — Bare Denim, Bare Leisure,
Rig, Annabelle, Honey, and Ajile — in western wear, as well as the choicest
ethnic wear from RangManch, Trishaa and Akkriti. Popular brands like Lee
Cooper, Biba and Wrangler are also available.
The private labels for men in western wear include Lombard, Rig, Bare
Denim, Bare Leisure and JM Sport apart from trendy brands like Urbana,
Scullers, John Miller, and Indigo Nation. Akkriti provides a wide selection of
ethnic wear.
Kids can choose from private labels like Bare Denim, Bare Leisure, Rig, or
indulge in exclusive brands like Lee Cooper Juniors, Chalk, Pink & Blue, and
Sach in addition to international brands like Barbie and Disney. For the ethnic
look, they can opt for traditional wear from Akkriti.

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Pantaloons offers much more than just apparel. Customers can shop from an
assortment of watches from renowned international brands like Tommy
Hilfiger, Esprit, Kenneth Cole, Citizen, Timex, and Titan, among other brands.
Trendy sunglasses from Polaroid, Guess, Police, Scott, I Dee and Allen Solly
are also available. The accessories and beauty segments display an attractive
collection of lady’s handbags from Lavie, Caprese, Fiorelli and Fastrack. Also
available are products from color cosmetic brands such as Bourjois,
Chambor, Deborah, Faces, Revlon, Maybelline, and Lakmé, as well as a
wide collection of exotic fragrances.
With its overwhelming repertoire of lifestyle apparel brands, Pantaloons is
focused on growth while continuing to create fresh fashion. Pantaloons is
recognised by its warm personalised service that completes the core
proposition of this trendy chain.
2.2 Introduction to Aditya Birla
Aditya Birla Nuvo
Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4.75 billion conglomerate by revenue
size. It is part of the Aditya Birla Group, a US$ 40 billion Indian multinational.
Having a market cap of ~US$ 2.5 billion (Rs. 14,000 Crore) as on 23 July
2013, ABNL is present across Financial Services, Telecom, Fashion &
Lifestyle, IT-ITeS and manufacturing businesses. Anchored by over 69,000
employees, ABNL touches lives of more than 125 million Indians.

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ABNL is also a prominent player in Private Equity, Wealth Management, and
Broking & General Insurance Advisory space.
Besides its successful presence across a wide gamut of sectors and verticals,
Aditya Birla Nuvo Limited ['ABNL'] now holds a controlling stake in Pantaloons
format stores which was previously controlled by the Future Group.
With this strategic development, both ABNL and Future Group will now work
closely for deriving operational synergies in terms of back-end and supply
chain, apart from several other mission-critical value drivers of the business.
Moreover, the leadership teams of both groups have also committed to
oversee a fashion council, which has been set up to explore contemporary
trends in new-age fashion wear, thereby driving further value-creation for
Pantaloons' stakeholders by keeping it at the leading-edge of the fashion
industry.
A US $40 billion corporation, the Aditya Birla Group is in the League of
Fortune 500. It is anchored by an extraordinary force of over 136,000
employees, belonging to 42 different nationalities. The Group has been
ranked Number 4 in the Global 'Top Companies for Leaders' survey and
ranked Number 1 in Asia Pacific for 2011.
Over 50 per cent of its revenues flow from the overseas operations. The
Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil,
Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy,
Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar,
Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka,

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Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and
Vietnam.
2.3 Aditya Birla took over Pantaloons Retail chain
Aditya Birla Nuvo Ltd (ABNL), a unit of the $28 billion (Rs.1.5 trillion) Aditya
Birla Group, will acquire a majority stake in the Pantaloons retail chain of
debt-laden Pantaloons Retail (India) Ltd (PRIL), India’s largest listed retail
company by revenue.
The proposed transaction, which will help the Future Group’s PRIL pare debt,
is likely to be completed within 8-10 months, subject to the scheme of
arrangement being finalized, due diligence, and statutory and other approvals,
ABNL said in a statement.
Future Group founder Kishore Biyani has been looking to reduce debt that’s
been accumulated by rapid expansion as PRIL has sought to build scale
rapidly. Meanwhile, the intense political opposition to foreign direct investment
in multi-brand retail has meant that any plans of selling stakes to overseas
retail companies had to be shelved.
The new, separated unit will eventually become a subsidiary of ABNL, the
other units of which include Madura Fashion and Lifestyle, and Jaya Shree
Textiles.
The separation will help PRIL, which had debt of Rs.5,800 crore as of
December 2011, reduce this amount by Rs.1,600 crore, according to a PRIL
statement.
“This deal is being done to reduce debt as non-core business transactions like
Future Capital are taking some time to finalize,” said Abhishek Ranganathan
of MF Global Sify Securities India Pvt. Ltd.

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On Monday, ABNL, which owns apparel brands such as Louis Philippe and
Allen Solly, said it will infuse Rs.1,600 crore in the Pantaloons department
retail chain business by issuing debentures worth Rs.800 crore at mutually
agreed terms and taking on debt of Rs.800 crore.
An investment banker, who did not want to named, said it wouldn’t be
possible to compute the value of the deal till the “mutually agreeable” terms
are made public.
After the separation, the debentures will be converted into equity shares of the
resulting entity, ABNL said in the release. PRIL will hive off the Pantaloons
chain.
ABNL will make an open offer for a minimum 26% to the shareholders of the
resulting unit. After its listing and on conversion of the debentures into equity,
ABNL’s holding will be a minimum 50.01%. The resulting unit will become a
subsidiary, ABNL said in the statement.
Rakesh Biyani, managing director at PRIL, and Kailash Bhatia, an executive
director at the firm, will continue to manage the Pantaloons chain. A Fashion
Council will be set up, comprising the objective of fully leveraging the
strengths of Madura Garments and Pantaloons.JM Financial Ltd acted as the
sole financial adviser to the transaction, PRIL said in the statement.
Future Group, which has retail businesses under PRIL in food, fashion, home
and consumer electronics, besides other segments such as financial services,
has been looking to reduce debt. “This announcement is just the first in a
series of announcements that will happen over the next couple of months by
June which will see the debt reduce,” a company spokesperson said.
Pantaloons is present in 35 cities with 65 stores and 21 factory outlets
covering a total retail space of more than 2 million sq. ft. It is expected to post

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sales of around Rs.1,700 crore by the end of the fiscal year in June 2012,
PRIL said in the release. Shoppers Stop Ltd, which runs the Shoppers Stop
department store chain, crossed revenue of Rs.2,000 crore in fiscal 2012 with
a footprint of 50 outlets.
The origin of PRIL can be traced back to 1987, when Kishore Biyani founded
Manz Wear Pvt. Ltd to manufacture trousers bearing the brand name
Pantaloon. It went public in 1991 and changed its name to Pantaloon
Fashions in the same year, and to Pantaloon Retail in 1999.
Over the last one year, the market capitalization of PRIL has eroded by Rs
1,598.72 crore, from Rs 5,793.06 crore to Rs 4,194.34 crore.
PRIL shares jumped 9.25% to close at Rs 187.75 each, while ABNL shares
rose 0.26% to end at Rs 933 apiece on BSE. The benchmark Sensex gained
0.76% to close at 17,318.81 points. In the last one year, PRIL has lost 31.69%
and ABNL has gained 6.99%.
Earlier this year, the Aditya Birla Group undertook a management recast at
food and groceries business Aditya Birla Retail Ltd, as it looked to cut losses
by shutting down more than 10% of its unviable supermarket stores run under
the brand name More. The revamp saw Madura Fashion chief executive
officer (CEO) Pranab Barua replacing Thomas Varghese as CEO of Aditya
Birla Retail in early March. Varghese has taken over as head of Jaya Shree
Textiles.
“This marks a unique coming together of brands and enterprise that will create
significant value for customers, suppliers and all stakeholders,” said Kishore
Biyani, who is also group CEO of Future Group, the parent of Pantaloons.
“The proposed acquisition is in line with our strategic intent to be on the top of
the league and to create the largest integrated branded fashion player in the
country through an extension into the value segment. This acquisition will
catapult ABNL to the pole position in the branded fashion space in all the

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segments with a pan-India presence,” said Kumar Mangalam Birla, chairman
of ABNL.
2.4 Pantaloons Launches “Woman’s Wednesday”
Pantaloons, the newly acquired business by the Aditya Birla Group, one of
India’s leading international conglomerates, is a powerhouse of fresh fashion
and innovation. Pantaloons cater to the discerning and trendy Indian
consumer.
Pantaloons apparels spell comfort and elegance, combined with a ‘freshness’
that is unparalleled. The styles cover a gamut of ready-to-wear western and
Indian apparel for men, women and kids, in addition to accessories and exotic
fragrances. With a strong national presence in 77 exclusive stores across 38
locations in the country, Pantaloons houses over 100 prestigious brands that
have something fresh for everyone.
The brand has announced the launch of their new property ‘Woman’s
Wednesday’ at Phoenix Mills, Lower Parel. This indigenous concept was
created in order to celebrate young fashionistas and to give them an
opportunity to have fun while the mid week woes bear on them. “Revel,
indulge, pamper…” sums up what Woman’s Wednesday has to offer. The
weeks to come will see select Pantaloons stores come alive to Woman’s
Wednesday celebrations every first Wednesday of the month.
Right from professional advice from style advisors, to do-it-yourself makeup
and styling workshops, Woman’s Wednesday will be an action packed stylish
affair. Women can also turn up with their gang of girls and have an evening of
fun and games at Pantaloons. The thought behind ‘Woman’s Wednesday’
was to give women more reason to indulge themselves at a Pantaloons store
near them.
The property saw a grand launch by ex-Miss India and Bollywood actress, Gul
Panag. Pantaloons is also creating a 12 page calendar in association

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with Cosmopolitan that will feature stylish, quirky, expressive young girls
attired in Pantaloons apparel from different walks of life. Entries have been
invited from Pantaloons stores across the country. Entries will be shortlisted
and 12 lucky girls will get a once in a lifetime opportunity to feature in this
calendar.
Commenting on the occasion of the launch, Shital Mehta, CEO, Pantaloons
Fashion & Retail said, “Pantaloons focuses on customer delight and nurturing
fashion sensibilities. ‘Woman’s Wednesday’ is one more fashion step in that
direction. This marketing initiative is aimed at engaging with every young
woman customer and thereby encourages her to express herself through the
way she styles herself and fashionably looks at her wardrobe. We aim to
strengthen our dedication towards our consumers by providing the best of
what Pantaloons has to offer.”
2.5 Pantaloons Brands:-
The company has 24 domestic and foreign brands that were developed
independently of the retail presence of the group.
These brands are present in every segment within the fashion space
including, menswear, activewear, partywear, women’s ethnic and formal wear,
kidswear, footwear and accessories and are present across various price
points. While many of the brands have been developed by the company over
a decade, the company also has exclusive licensees and joint ventures of
global brands.
While all the company’s brands are sold through the company’s retail chains,
these brands also distributed through independent distribution channels,

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exclusive brand outlets and other modern retail chains like Lifestyle,
Shoppers’ Stop, Reliance Trends, Prateek and Mega Mart.
Celio is an iconic French brand that is operating with the company as a joint
venture since June 2008. The brand offers a wide selection of casual wear
and denim-wear and also has a chain of 30 exclusive brand outlets in key
cities across the country.
UMM is an Italian brand born out of a music label – Underground Music
Movement – that has over the years evolved into a fashion brand. The
Company owns the exclusive rights to the brand in India and is among the
most popular casual wear brands in the country.
Lee Cooper is a heritage global denim brand dedicated to style since 1908.
Future Group owns the exclusive license to manufacture and market the
brand in categories like denims, trousers, jackets, shirts and footwear.

~ 20 ~
Holii brand was launched in 2009 as part of a joint venture partnership
between Hidesign and Future Group. Aimed at bringing in a distinct Indian
design aesthetic to bags and accessories along with the high production
standards of Hidesign, the company shares the vision to be a distinct
everyday affordable luxury accessories brand. The brand is sold from over 70
locations across India through multi brand departmental stores, airports and
exclusive boutiques.
Bare is the company’s largest brand with presence in casual wear, denim-
wear and kids-wear. Positioned with the tagline, “Keeping it Real,” Bare
Denim range includes casual tops, t-shirts, denims and winter-wear for men
and women, Bare Casual range includes cotton and linen shirts, khakis,
corduroys and cotton trousers for men and Bare Kids offers a wide range of
clothing options for kids.
Scullers is positioned for those who celebrate life offering stylish sporty casual
wear. The brand is best known for its legendary chinos. The brand is
distributed through EBOs as well as MBOs.

~ 21 ~
Indigo Nation brand focuses on the "Rockstar of Youngistan" who believes in
the mantra of “CHANGEISM”.
Converse was established in 1908, the Converse brand has built a reputation
as “America’s Original Sports Company”.
Spalding has long been a leader of innovation and quality in the sporting
goods category.
Urban Yoga brand offers yoga apparel and accessories with a collection of
casual wear that compliments active lifestyle co-created thoughtfully with yoga
practitioners.

~ 22 ~
RIG is positioned as utility clothing for the ‘brave new world,’ and has products
for men, women and kids and is now looking at foraying into accessories as
well.
Manchester United is a premium lifestyle sportswear launched in India in
December 2011 through an exclusive licensing arrangement with Manchester
United Football Club.
Jealous 21 is India's leading exclusive women's wear brand, revolutionized
the jeans market for women by launching jeans that fits every body type of
Indian women. The brand offers an elaborate range of Hip-fit Jeans is an
equally stunning range of tops & tees. Oozing with oomph, this brand is
designed to infatuate today's young women.

~ 23 ~
Clarks offers contemporary looks inspired by the catwalk to ‘Everyday
footwear’. Operating in North America, Europe, and China; launched in India
in 2011 through a joint venture with Future Group. The brand offers range of
branded boots, sandals and shoes for men and women. The brand already
has 24 exclusive brand outlets across the country.
2.6 Mission and Vision:-
Mission
To deliver superior value to our customers, shareholders, employees and
society at large.
Vision
To be a premium global conglomerate with a clear focus on each on each of
the business.
2.7 Board of Directors:-

~ 24 ~
Dr. Rakesh Jain
Mr. Pranab Barua (Managing Director)
Mr. Sushil Agarwal
Mr. P.Murari
Mr. Bharat Patel
Managing Team:-
Mr. Shital Mehta
Mr. Chandrashakhar Chavan
Mr. Manot Kedia

~ 25 ~
CHAPTER 3: RESEARCH METHODOLOGY
General Introduction:
This study about “customer buying behavior” is conducted to know about the
buying behavior of the customers in shopping with pantaloons. This study is
limited to Pantaloons which is located in Bannerghatta main road.
Customer buying behavior
Customer Buying Behavior is the study of individuals and the processes they
use to select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on the
consumer and society. Customer behavior is increasingly a part of strategic
planning for the future investment and growth of any industry. Retail industry
or precisely to say apparel industry is no exception.
Customer can either be subjective or objective, testing the persuasiveness of
brand names. Retail stores selling the products also play an important role in
swaying the decisions of customer. The whole package or visual appeal of the
retail outlet can determine sales, or the service of the sales ladies or the
clerks. Furthermore, customer may choose particular products/brands not
only because these products provide the functional or performance benefits
expected, but also because products can be used to express customers’
personality, social status or affiliation or to fulfil their internal psychological
needs, such as the need for change or newness. Customer behavior refers to
the mental and emotional process and the observable behavior of customers
during searching, purchasing and post consumption of a product or service.
Consumer behavior involves study of how people buy, what they buy, when
they buy and why they buy. It blends the elements from Psychology,
Sociology, Social psychology, Anthropology and Economics.

~ 26 ~
Factors affecting Customer buying behavior:-
Customer buying behavior is influenced by the major three factors:
1. Social Factors
2. Psychological Factors
3. Personal Factors.
1). Social Factors
Social factors refer to forces that other people exert and which affect
customers’ purchase behavior. These social factors can include culture and
subculture, roles and family, social class and reference groups.
2). Psychological Factors
These are internal to an individual and generate forces within that influence
her/his purchase behavior. The major forces include motives, perception,
learning, attitude and personality.
3). Personal Factors
These include those aspects that are unique to a person and influence
purchase behavior. These factors include demographic factors, lifestyle, and
situational factors.
3.1 Introduction to the study:-
Pantaloons want to study the buying behavior of the customers so that they
can analyze the buying patterns of the customers and improve their efficiency
of product offers and services. This study also helps them in improving the
conversion ratio and customer traffic.

~ 27 ~
3.2 Statement of the problem:-
To study the customer buying behavior at Pantaloons, through accessing the
effectiveness of service delivered.
3.3 Objectives of the study:-
 To know about the buying behavior and satisfaction level of the
customers.
 To study the factors effecting the phases of buying behavior.
 To study the quality of service provided at Pantaloons to support
buying behavior.
 To know the impact of the marketing and channels of communication
on the customers buying behavior.
3.4 Scope of the study:-
 Research is done among the group of people shopping at Pantaloons
located in Bannargatta main road.
 Research is done among the people who frequently shop at
Pantaloons.
 Research is done among the people who interact with floor staff before
buying merchandise.
 Research is done among the people who interact with Customer
service desk (CSD) after their purchase.
3.5 Research Methodology:
The research methodologies are using primary data collection and
secondary data collection. Here primary data collection is performing through
questionnaire. A sample size of 100 customers is taken randomly. The
sample is limited to the visitors of Pantaloons at B.G Main road.

~ 28 ~
The sample is collected by approaching respondents personally and the
people who bought something from the store. The sampling chosen is a
random sampling so that every respondent has equal chance to respond.
The collected data in the form of questionnaires is then processed and the
analysis is done so that we can suggest improvements based on findings.
Research Design:
 The research design chosen for this research is Descriptive Research
design as there is plenty of data available as secondary data and a lot
of researches are done before.
Sampling Design:
 Sample size
Sample size taken to conduct the research is 100
 Sampling Method
The sampling method used to conduct the research is Simple
Random Sampling which helps all units from the sampling frame have
an equal chance to be drawn and to occur in the sample.
 Sample frame
As we have selected simple random sampling the researcher had the
freedom to select the sample randomly where there is equal chance for
every sample to be taken and includes only the shoppers at
Pantaloons at B.G. Main road.

~ 29 ~
 Sample unit
The sample unit considered here are the people who visit pantaloons
and other retail formats to purchase merchandise in pantaloons fresh
factions.
3.6 Data Collection Design:-
Primary Data
 Primary data is collected using a random sampling technique and with
the help of questioner. The data is collected personally by approaching
the sample.
Secondary Data
 Quantitative, Quantitative data
Scaling Design
 The questionnaire consists of questions which are based on nominal
scale Likert scale.
Questionnaire Design
The questionnaire is prepared by researcher using open ended, closed
ended, dichotomous and multi-dichotomous questions.
3.7 Limitations of the study:
 The study is limited only to the visitors of Pantaloons located in B.G.
Main road.
 As the analysis is based on the responses given by the individuals, the
study may not always be reliable.
 Sample size of the study is limited to 100.

~ 30 ~
CHAPTER 4: DATA ANALYSIS
Gender
Table No:1 Table showing distribution of Gender
Options No. of respondents % of respondents
Male 48 42%
Female 52 58%
Total 100 100%
Graph No 1: Graph showing distribution of Gender
Inference:
The above graph indicates that the respondents are mostly women.
1. Is the store conveniently located?
42%
58%
Persentage
Male
Female

~ 31 ~
Table no 2: Table showing distribution of respondent’s opinion about the
convenience of location.
Options No of Respondents % of Respondents
Strongly agree 21 21%
Agree 45 45%
Neutral 27 27%
Disagree 5 5%
Strongly disagree 2 2%
Total 100 100%
Graph No 2: Graph showing distribution of respondent’s opinion about the
convenience of location.
Inference:
0
5
10
15
20
25
30
35
40
45
Strongly
agree
Agree Neutral Disagree Strongly
disagree
21
45
27
5
221% 45% 27% 5% 2%
No of Respondents
% of Respondents

~ 32 ~
The above graph indicates distribution of respondent’s opinion about the
convenience of location.45% of the respondents Agree that the store is
conveniently located.
2. What factors will you consider while buying merchandise?
Table no 3: Table showing distribution of respondent’s on what factors they
consider while buying merchandise.
Options No of Respondents % Percentage
Availability 10 10%
Quality 58 58%
Trends 20 20%
Price 12 12%
Total 100 100%
Graph no 3: Graph showing distribution of respondent’s on what factors they
consider while buying merchandise.

~ 33 ~
Inference:
The above graph indicates that most of the respondents are consider the
quality while buying merchandise.
3. Which other stores do you consider while buying merchandise?
Table no 4: Table showing distribution of respondent’s opinion that which
other stores do they consider while buying merchandise.
Reliance trends 13 13%
Central 34 34%
Brand Factory 35 35%
Shoppers Stop 18 18%
Total 100 100%
0
10
20
30
40
50
60
Availability Quality Trends Price
10
58
20
12
10% 58% 20% 12%
No of Respondents
%Percentage

~ 34 ~
Graph No 4: Graph showing distribution of respondent’s opinion that which
other stores do they consider while buying merchandise.
Inference:
The above graph indicates that apart from this store most of the customers
prefer to go to Brand factory and Central.
0
5
10
15
20
25
30
35
Reliance
trends
Central Brand Factory Shoppers Stop
13
34
35
18
13% 34% 35% 18%
No of Respondents
% Percentage

~ 35 ~
4. How did you come to know about the offers at pantaloons?
Table No 5: Table showing distribution of respondent’s opinion about the
offers at pantaloons.
News Papers 32 32%
SMS 10 10%
E-Mail 3 3%
Others 55 55%
Total 100 100%
offers at pantaloons.
0
10
20
30
40
50
60
News Papers SMS E-Mail Others
32
10
3
55
32% 10% 3%
55%
No of Respondents
% Percentage

~ 36 ~
Inference:
The above graph indicates that there is a lot of scope in communicating the
offers at pantaloons through SMS and E-mailers with the increase in
technology.
5. Rate the promotional offers at Pantaloons? [5 being the highest]
Table No 6: Table showing distribution of respondent’s rating about the
promotional offers at Pantaloons.
Option No of Respondents % Percentage
5 15 15%
4 60 60%
3 15 15%
2 7 7%
1 3 3%
Total 100 100%
Graph No 6: Graph showing distribution of respondent’s rating about the
promotional offers at Pantaloons.

~ 37 ~
Inference: The graph indicates that most of the respondents gave a rating of 3
or 4 this shows that an improvement in offers can be made to retain
customers.
6. Do the store have a wide range of products?
range of products in the store.
Agree 45 45%
Neutral 29 29%
Disagree 14 14%
Total 100 100%
0
10
20
30
40
50
60
1 2 3 4 5
15
60
15
7
315% 60% 15% 7% 3%
No of Respondents
% Percentage

~ 38 ~
Graph No 7: Graph shows distribution of respondent’s opinion about the
range of products in the store.
Inference:
The graph indicates that the store needs to provide a very wide range of
products and merchandise.
0
5
10
15
20
25
30
35
40
45
Strongly
agree
disagree
12
45
29
14
012% 45% 29% 14% 0%
No of Respondents
% Percentage

~ 39 ~
7. Do the staff provide proper information regarding the merchandise?
Table No 8: Table showing distribution of respondent’s opinion about the staff
response regarding the merchandise in the store.
Agree 45 45%
Neutral 13 13%
Disagree 2 2%
Total 100 100%
staff response regarding the merchandise in the store.
0
5
10
15
20
25
30
35
40
45
Strongly
agree
disagree
40
45
13
2
040% 45% 13% 2% 0%
No of Respondents
% Percentage

~ 40 ~
Inference:
Graph indicates that the sales representatives of the respective brands are
well aware of the merchandise.
8. What is your satisfaction level with the shopping?
satisfaction level of their shopping.
Highly satisfied 14 14%
Satisfied 58 58%
Neutral 23 23%
Dissatisfied 3 3%
Highly dissatisfied 2 2%
Total 100 100%

~ 41 ~
Graph No 9:Graph showing distribution of respondent’s opinion about the
satisfaction level of their shopping.
Inference:
Graph indicates the satisfaction level of the customers in extremely well and
are satisfied.
0
10
20
30
40
50
60
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
dissatisfied
14
58
23
3 214% 58% 23% 3% 2%
No of Respondents
% Percentage

~ 42 ~
9. How friendly do you find the employees of this store?
Table No 10: Table showing distribution of respondent’s opinion about
employee’s friendliness towards customers.
Options No of respondents % Percentage
Very Friendly 33 33%
Somewhat Friendly 36 36%
Friendly 27 27%
Not at all Friendly 4 4%
Total 100 100%
Graph No 10: Graph showing distribution of respondent’s opinion about
employee’s friendliness towards customers.
0
5
10
15
20
25
30
35
40
Very Friendly Somewhat
Friendly
Friendly Not at all
Friendly
33
36
27
4
33% 36% 27% 4%
No of respondents
% Percentage

~ 43 ~
Inference:
Graph indicates that maximum of the respondents are feel that employees in
the store are very friendly towards the customers.
10. How competitive do you find the prices at store?
Table No 11: Table showing distribution of respondent’s opinion about price
competitive at the store.
Options No of respondents % Percentage
Very Competitive 15 15%
Somewhat competitive 32 32%
Competitive 40 40%
Not Competitive 13 13%
Total 100 100%

~ 44 ~
Graph11: Graph showing distribution of respondent’s opinion about the price
competitive at the store.
Inference:
Graph indicates that maximum of the respondents are feel that the price of the
store is competitive when compare with the other stores.
11. How is the customer care response when you approach them?
Table 12: Table showing distribution of respondent’s opinion about the
customer care response.
Options No of respondents Percentage
good 25 25%
Best 48 48%
Average 20 20%
None 7 7%
Total 100 100%
0
5
10
15
20
25
30
35
40
Very
Competitive
Somewhat
competitive
Competitive Not
Competitive
15
32
40
13
15% 32% 40% 13%
No of respondents
% Percentage

~ 45 ~
Graph12: graph showing distribution of respondent’s opinion about the
customer care response.
Inference:
Graph indicates that maximum of the respondents are satisfied with the
responses of customer care division at the pantaloons whenever there is an
issue.
12. Will you purchase again?
Table No 13: Table showing distribution of respondent’s opinion about
repurchase in pantaloons.
Options No of Respondents Percentage
Definitely will 65 65%
Probably will not 10 10%
Not sure 25 25%
Total 100 100%
0
5
10
15
20
25
30
35
40
45
50
good Best Average None
25
48
20
7
25% 48% 20% 7%
No of respondents
% Percentage

~ 46 ~
Graph No 13: Graph showing distribution of respondent’s opinion about
repurchase in pantaloons.
Inference:
Graph shows that the respondents are brand loyal towards center and are
willing to purchase again at pantaloons.
0
10
20
30
40
50
60
70
Definitely will Probably will not Not sure
65
10
25
65% 10% 25%
No of Respondents
% Percentage

~ 47 ~
CHAPTER 5: FINDINGS
5.1Findings:
A. From the questionnaires:
1. From the location of the shoppers it is clear that many people
are brand loyal to pantaloons and come over from almost all
parts of Bangalore to shop at central.
2. Visual merchandising of the store is good and all the staffs are
well aware of the products (apparel and non-apparel) and are
good in communicating about the merchandise to the shoppers.
3. The store is well decorated and the ambiance of the store is nice
and it offers the shoppers a wide range of products that so that
they can shop well.
4. There is no proper communication of the offers available at
pantaloons through electronic media like e-mail and SMS. Most
of the respondents come to know about offers at pantaloons
through newspapers and other means (friends, relatives etc.,).
5. The satisfaction level and experience of the customers with
respect to their shopping is good and they want to purchase
again which shows pantaloons is good in customer retention.

~ 48 ~
B. From the interaction with customers:
1. Most of the customers who comes from far places feel that the
parking is a problem and this happens when the customer traffic
is more.
2. Some of the customers are not informed about the offers that
are happening in pantaloons mall and there has been a
miscommunication by some staff.
3. Some customers felt that the employees of the sore are very
friendly all the time to help in selections of merchandises.
4. Most of the customers feel that the VM at pantaloons is very
good and they have a updated collection all the time.
5. Some customers feel that the merchandise is placed closely and
which gives a clumsy look which makes decision sometimes
difficult.

~ 49 ~
Chapter 6 : Conclusions and Recommendations
6.1Suggestions:
1. E-mail and SMS can be used as an effective channel of communicating
the offers to the customers.
2. Proper communication is to be provided to the customers through sales
people so that there will be no confusion in understanding the offers.
3. Aditya Birla group has a tie-up with payback which is a loyalty program
so the advertisements and promotions should be communicated
through mails and SMS to the respective customers.
4. Better offers can be provided to loyal customers based on the
frequency of purchases and the type of purchases they make.
5. A play area for kids can be made so that it can attract more
customers.

~ 50 ~
6.2Conclusion:
The study helped me in understanding the retail sector and the format of
organized retail sector. It also helped in understanding the customer behavior
while purchasing the merchandise in the store and also about the factors that
they consider while making the purchases.
Based in the study and the customer’s responses, we can be able to fill the
gap between the customer and their purchases.
The study helped in understanding the customer behavior and to identify their
considerations during the purchases. This study helps in finding the
customers responses and to make the services offered by pantaloons more
efficient.
The study helped in finding about the store atmosphere, location, the
merchandise offered at pantaloons, knowledge of the sales force, customer
care response and the offers provided by pantaloons.

~ 51 ~
ANNEXURE:
Questionnaire:
Name…………………………………………………
Age…………………………………………………..
Gender: Male Female
Location of residence…………………………..............................................
Phone number……………………………………………………………….
E-mail…………………………………………………………………………
1. Is the store conveniently located?
A. Strongly agree B. Agree C. Neutral D. Disagree
E. Strongly disagree
2. What factors will you consider while buying merchandise?
A. Availability B. Quality C. Trends D. Price
3. Which other store do you consider while buying merchandise?
A. Reliance trends B. Central
C. Brand factory D. Shoppers stop

~ 52 ~
4. How did you come to know about the offers at pantaloons?
A. Newspapers B. SMS
C. E-mail D. other
5. Rate the promotional offers at Pantaloons? [5 being highest]
6. Do the store have a wide range of products?
A. Strongly agree B. Agree C. Neutral D. disagree
7. Do the staff provide proper information regarding the merchandise?
A. Strongly agree B. Agree C. Neutral D. Disagree
8. What is your satisfaction level with the shopping?
A. Highly satisfied B. Satisfied C. Neutral
D. Dissatisfied E. Highly dissatisfied
5 4 123

~ 53 ~
9. How friendly do you find the employees of this store?
A. Very Friendly B. Somewhat friendly
C. Friendly D. Not at all friendly
10. How competitive do you find the prices at store?
A. Very Competitive B. Somewhat Competitive
C. Competitive D. Not Competitive
11. How is the customer care response when you approach them?
A. Good B. Best C. Average D. None
12. Will you purchase again?
A. Definitely will B. Probably will not purchase C. Not sure
13. Any suggestion…….......................................................................................
…………………………………………………………………………………..
…………………………………………………………………………………..

~ 54 ~
BIBLIOGRAPHY:
http://www.futuregroup.in
http://pantaloons.in/business.html
http://en.wikipedia.org/wiki/PRIL_Group
http://en.wikipedia.org/wiki/Customer_buying_behavoiur
http://adityabirla_pantaloons.co.in

CUSTOMER BUYING BEHAVIOUR AT PANTALOONS

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