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US IMPORTS OF TEXTILE AND APPAREL PERCENT VARIATION 2005/04
US IMPORTS OF TEXTILE AND APPAREL PERCENTAGE VARIATION JAN – SEPT. 2006/05
DRIVERS OF DOMESTIC GROWTH : Demand Side Factors: Increasing Income Levels * - Projections Note : Income is in Rs.’000 per annum at 2001-02 prices and the households are in ‘000s Source : NCAER 2.1 221,945 204,283 188,193 Total 27.7 141 53 20 >10000 Super rich 25.4 255 103 40 5000-10000 Sheer rich 22.9 1,037 454 201 2000-5000 Clear rich 20.6 2,373 1,122 546 1000-2000 Near rich 17.7 6,173 3,212 1,712 500-1000 Strivers 12.7 22,268 13,813 9,034 200-500 Seekers 9.0 75,304 53,276 41,262 90-200 Aspirers -3.6 114,394 132,250 135,378 <90 Deprived CAGR 2009-10* 2005-06* 2001-02 Income class Classification Distribution of households by income category
The population of India is expected to increase from 1029 million to 1400 million during the period 2001-2026.
The population profile of India is shifting towards a larger composition of people in the age group 15-59 .India most favourably placed globally. Out of the total population increase of 371 million between 2001 and 2026, the share of the age-group 15-59 years in this total increase is 83 percent.
The low median age of population means a higher current consumption spending vs savings
The growth in population is taking place in the urban area. Out of the total population increase of 371 million during 2001-2026 in the country, the share of increase in urban population is expected to be 249 million.
Favourable Demographics- increasing young population and that too in the urban area- coupled with rising income levels will act as a key growth factor for the Indian textile and Fashion Industry
Increasing Working Female Population Source : CENSUS
Increased usage of credit cards and availability of cheap finance
The use of credit cards (plastic money) has increased significantly in the last 3-4 years. The number of credit cards issued has grown at 26 per cent per annum in the past 5 years while debit cards have grown by a whopping 113 per cent. Increase in the number of installations of electronic data converter machines will provide fillip to impulse apparel purchases.
From 2 mn sq ft in 2001 , we had 28 mn sq ft of mall space in 2005 – and by end 2008, the eight Indian large cities will have a supply of 66 mn sq ft and the next seven large cities about 13 mn sq. ft.
The entry of Reliance , Aditya Birla group , expansion of Futures and now of Bharati-Walmart is expected to further sizzle Indian market.
According to estimates by The Economist , the total value of residential property in developed economies rose by more than $30 trillion over the past five years, to over $70 trillion, an increase equivalent to 100% of those countries' combined GDPs .
The global boom in house prices has been driven by two common factors: historically low interest rates have encouraged home buyers to borrow more money; and households have lost faith in equities after stockmarkets plunged, making property look attractive .
Naturally as people buy more property or as their property becomes costlier , the propensity to spend on home-textile increases significantly .
1.Further investments must continue to be encouraged- TUFS should be continued (may be with some modification)
TUFS help to processing sector – Vital for home tex
13.42 986 7349 2004-5 7.91 260 3289 2003-4 14.63 210 1438 2002-3 P.c % Processing (in crores) TUFS all segments (in crores) Year 22.30 2081 9335 2006-7 (april-sept) 7.7 1157 15032 2005-6
2. Continuance of textile infrastructure schemes
SITP ( Scheme for Integrated Textile Parks) has had a huge success : 26 parks approved. GOI contribution to be 866 crores with another 1250 crores to come from private sector. Estimated investment of Rs.13445Cr.
Integration - Moving up/down the full value chain. Leading Home-tex players like Welspun, Alok are now fully integrated, with strong competencies in spinning, weaving,and finishing.
Scale - Massive expansion plans of existing as also new players to take advantage of this unprecedented opportunity. Smaller companies, some of whom are in unrelated businesses, are also foraying into home textiles - Gangotri Textiles, KG Denim, S Kumars Nationwide, Bannari Amman Spinning, to name a few.
Designer labels will also have to be brought in to counter the pull of top international labels like Tommy Hilfiger, Zegna, Mark and Spencer and likely presence of Italian Pozzi Industria Tessile and Ralph Lauren. Alliance with Indian designers important over here.