WHAT IS APPAREL ?

Clothes

Garments
Attire

Dress
APPAREL INDUSTRY: Makers & Sellers of Clothing.

Rs.1 Trillion industry 6% contribution to GDP 2nd largest employment provider. India 3rd most attrctive mrkt for apparel retailers

65000 organized garment manufacturing units 14% of the total Industrial production 55% of total domestic textile market. Rs.90 billion Brand equity. 30% of the total exports

SCOPE
Exports growing Growing Domestic Demand The fashion sector finds itself in an Gvt. Support ongoing process of PPP change.
KPMG, Trends in Retailing 2005, An Outlook for the Food, Fashion and Footwear Sectors

TUFS

Supplier Power Technical advancements

Bargain: Rise of discount retailers Product brands turn lifestyle Designers get organised International fashion eyes India

TRENDS

Consumers become ecofriendly

Kids & youth emulate their icons Off beat avenues to retail

Investments from Retailers and PEFs

Total level of demand for a product, across all brands, expected to result from a particular marketing effort by the competitors in the market. Environmental trends not under the control of the marketers, such as social trends or economic changes, can greatly impact the accuracy of the market forecast.

2007,dominated by shirts (in value terms) i.e.36.5% of total men's segment

Branded apparel industry for men will cross Rs.25,000 Cr by 2010 and it is expected to have a CAGR of 14 .86% for 2008-10 The Indian fashion industry to at 22.67 % through 2012

W O M E N S A P P A R E L

at a CAGR of 25%, branded apparel industry for women is expected to hit Rs.18,351 Cr by 2010

Women's apparel market is anticipated to at a CAGR of 17.8% till 2010

IT revenue from the retail segment is forecasted to at a CAGR of 43.4% by 2010

CHILDRENS
APPAREL

 Kids between 1 and 14 years of age and infants below 1

Rs.13000 cr, of which around Rs.3000 cr is constituted by branded kids' wear. This segment is growing at the rate of 10% per annum

Shift in preference towards branded apparels.

POPULAR BRANDS

and its effect on Indian Apparel Industry

 Apparel export slips 9.62% in October Number of suppliers actively serving the U.S market, from 22,099 in July to 6,262 in October Total revenue has gone down by 20 % 7 lakh people have already lost jobs and 5 lakh more would lose jobs by March, 2009

SWOT

STRENGTHS
Independent and self reliant Abundant Raw Material availability Low Cost and Skilled Manpower Large varieties of cotton fiber Advantage in Spinning Sector

WEAKNESS Highly Fragmented Industry Highly dependent on Cotton. Lack of Tech Development Infrastructural Bottlenecks Higher Indirect Taxes

OPPORTUNITIES
Growth rate is 12-15% per annum Large, Potential Domestic & International Market Elimination of Quota Restriction Market shifting to Branded apparel Increased Disposable Income & Purchasing Power Emerging Retail Industry and Malls

THREATS
Global recession China Continuous Quality Improvement Elimination of Quota system International Env. Laws. To balance the demand and supply. To make balance btwn price & quality. Threat to traditional apparel market

Market Leader: Raymonds

Raymonds far-sighted leaders embarked on a retail strategy 30 years ago In order to enhance customer access to the brand the company set up franchise outlets under the name of The Raymond Shop The stores have been upgraded too reflect prevailing retailing norms for a superior customer purchase experience The Raymond Shops have grown in number across India and in West Asia, Bangladesh, Sri Lanka and many countries in Europe Raymond products are now available in over 300 Raymond Shops in 125 towns in India and abroad, as well as in over 20,000 multi brand outlets nationwide The management intends to widen the domestic distribution reach through retail malls and exclusive showrooms It intends to increase the store rollouts by 15% p.a. during the next 3 years

Raymonds
PARK AVENUE COLORPLUS MANZONI PARX NOTTING HILL ZAPP!! RAYMOND FABRIC

SALES TRENDS

SALES STRATERGY:RAYMONDS
Upgrading from fabric manufacturer to end consumer retailer. Developing a portfolio of brands to gain premium image in the retailing chains. Selling all their brands through RAYMOND SHOPS or specific brands stand alone shops in order to provide customers a unique and leisurely shopping experience. They are catering to all the segments i.e menswear, womenswear and kidswear.

Market Challengers
ARVIND MILLS MADURA GARMENTS MURJANI GROUP SHOPPERS STOP WILLS LIFESTYLE FUTURE GROUPS PANTALOONS TATAS WESTSIDE

MARKET CHALLENGERS:STRATEGIES
Coming up with new trends like FRIDAY DRESSING ALLEN SOLLY Launching of several private label brands by organized retailers like SHOPPERS STOP, PANTALOONS,etc MADURA GARMENTS has around 2000 point of sale outlets or leased departments across the country. Budget retail chains like Mega Mart Arvind Mills, Brand Factory Future Group. Arvind Mills for many of its brand like Wrangler, Arrow, Lee, etc do opt for DIRECT DISTRIBUTING and SELLING in order to eliminate intermediaries.

CONCLUSION/ RECOMMENDATIONS

 Duties on apparel fabric imports to be reduced from 25 to 10 % Taxes (excise, central, state) should be replaced by 1 single tax. Reduced from 30 to15 % Infrastructure improvement-port capacity, manufacturing clusters (SEZ) Improved labour laws Technological advancements Seasonality fund

Hemant Trivedi Manish Malhotra Manish Arora Ritu Beri Aki Narula Ahima & Leena Abu Jani & Sandeep Khosla Ashish Soni Jatin Kochhar JJ Valaya Meera & Muzaffar Ali Monisha Bajaj Neeta Lulla Niki Mahajan Poonam Bhagat Puja Nayyar Ranna Gill Rina Dhaka Ritu Kumar Rocky S Rohit Gandhi & Rahul Khanna Rohit Bal Shantanu & Nikhil Wendell Roderick