Apparel industry sectoral analysis - ppt 1

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Apparel industry sectoral analysis - ppt 1

  1. 1. Textile and apparelindustrySectoral Analysis
  2. 2. History 20,000 BC: In Europe people started making warm clothes such as trousers, coats and boots from animal skins using bone needles . 1200 BC: Men in Egypt wear loincloths and a kind of kilt. Women wear dresses with shoulder straps. Both sexes wear jewellery. 400 BC: Women in Greece wear long dresses that cover most of their bodies. Men wear tunics and cloaks. http://www.timetoast.com/timelines/history-of-clothing-final
  3. 3. Global Statistics
  4. 4. Where is the Global Textile & ApparelIndustry Headed ?
  5. 5. Shift of Growth
  6. 6. Why is this Happening?
  7. 7. Why is this Happening? January 1, 2005 the Agreement on Textiles and Clothing that regulated the global apparel and textile industry for 30 years ended This has lead to a Global Reconfiguration of the Apparel Industry. Massive Industry move to China owing to the “survival of the cheapest” approach
  8. 8. Rising Market Opportunity forDeveloping Countries Most developed countries will see continued decline of their textile and apparel industry and create fresh opportunity of up to US$ 140 Billion for exports for developing countries by 2020 In addition, an opportunity of approx US $360‐370 Billion likely to be created due to rise in demand. Hence an additionalmarket opportunity of ~US$500 Billionlikely to be created by 2020
  9. 9. Indian Textile and Apparel Industry
  10. 10. According to the Annual Report 2010-11 of the Ministry of Textiles. The industry currently contributes about 14 per cent to industrial production. 4 per cent to GDP. 17 per cent to the country’s export earnings. Direct employment to more than 35 million people.Source : Indian Brand Equity Foundation - http://www.ibef.org
  11. 11. BRAND TURNOVER BUSINESS (USD)Raymond 279 million textiles, retail, engineering goods, personal care and prophylacticsBombay Dyeing 231 million Suitings, shirtings, sarees, towels, bed linen and men’s apparel; significant exporter of polycotton blended fabrics and made upsArvind 338 million denim fabric, cotton and blended fabric, knitted fabric, voiles, apparelVardhaman group 400 million acrylic fibre, cotton, synthetic and blended spun yarns, grey and processed fabrics, cotton and synthetic sewing threadsGokaldas Exports 180 million Supplies to more than 100 retailers andltd. fashion brands across 39 countries
  12. 12. BRAND TURNOVER BUSINESS (USD)Welspun 132 million Amongst the top 3 terry towel producers in the world. Also include cotton yarns, polyester filament yarn, bathrobes, buttons and saw pipes.Himatsingka 32 million Leading producer of silk yarns and fabric. Also retailing of home furnishings in India and manufacture of bed linen products for domestic and export marketAditya Birla Nuvo 577 million textiles include viscose filament yarn and branded apparel; other interests include insurance, telecom, IT, carbon blackAlok Industries 303 million producer of polyester yarns, fabrics,ltd. garments and textilesCentury 95 million The largest composite textile mill in IndiaIndustries ltd. for producing cotton fabric. its products include viscose filament yarn, viscose tyre/ industrial yarn, denim, cement and pulp and paper
  13. 13.  Growing at a compound annual growth rate (CAGR) of about 20 per cent the kids apparel market in India is likely to reach Rs. 80,000 crore by 2015 from the current level of about Rs 38,000 crore, the apex industry body said. Rising media exposure, high disposable income of the parents, peer pressure, growing fashion and brand consciousness among children are together driving the growth of kids apparel market in India, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The market for kids apparel in India exceeds Rs. 38,000 crore, of which around Rs. 5,000 crore is constituted by branded kids wear. The kids wear market is growing at the rate of 20% per annum, which makes it one of the fastest growing markets.
  14. 14.  The branded childrens wear segment is presently worth Rs 4,000 to Rs 5,000 crore, it is growing at more than 25%,"added ASSOCHAM. The market for kids apparel in India exceeds Rs. 38,000 crore, of which around Rs. 5,000 crore is constituted by branded kids wear. The kids wear market is growing at the rate of 20% per annum, which makes it one of the fastest growing markets.
  15. 15. Raw Textile Material machiner providers y Farmer Males manufact s urers Female Kids s Film industry Distri Fashion buterOnline industryportail Chemi cal Dye s industr industr y y APPAREL Trader sLogistic Sports Mercha s ndise Retail outlets Custom Excise s dept. Detergent Occasion fabric s conditioning manufacture rs
  16. 16. OCCASSIONS: SPORTS:Marriages SwimmingNaming ceremony CricketFestivals: Tennis Diwali, Id, Sankrant, Rakshab Football andhan, Gudi Padva HockeySummer Vacations BadmintonLost wt or gained wt. SwimmingSales and discounts
  17. 17. RETAIL STORES: MANUFACTURER: Malls  Yarn manufacturer Company owned showrooms  Garment manufacturer Retail outlets  Clothes manufacturer
  18. 18. Stakeholder – Males / Females Babies: 0 – 1 yrs Toddlers: 2 – 4 yrs Pre – school: 4 – 5 yrs Primary school: 6 – 10 yrs Secondary school: 11 – 16 yrs Junior College: 17 – 18 yrs (Arts, Science, Commerce) Graduation college: 19 – 21 yrs (B.A; B. Comm; B.E, B. Sc., LLB, M.B.B.S.) Professional college: 22 – 25 (MBA, Merchant Navy, M.Sc, Hotel Management) Professionals: 26 – 64 yrs Senior Citizens: 65+ yrs
  19. 19. Stakeholder – Males / FemalesProfessionals (25 – 64 yrs)  Office Executives Security Guards  Sweepers Police  Traveller Waiter Teacher Factory Worker Sales Executive Army / Navy / Air force Nurse Air Hostess Tour Guides
  20. 20. Key Global Players ASOS Plc Bon-Ton Stores Inc Brown Shoe Company  Gap Inc Buckle Inc  Gucci Group C&A  H&M Hennes & Mauritz AB Cato Corporation  Inditex SA Childrens Place Retail Stores  JC Penney Company Inc Inc  Liz Claiborne Inc Collective Brands  Macys Inc Performance + Lifestyle Group
  21. 21. Key Global Players Maidenform Brands Inc  Wal-Mart Stores Inc Marks & Spencer Group Plc  Warnaco Group Inc Nike Inc  Wet Seal Inc Perry Ellis International Inc  Zara Phillips-Van Heusen Corporation Puma AG Saks Incorporated Stage Stores Inc TJX Companies Inc Uniqlo VF Corporation
  22. 22. Value Parameters based on SecondaryResearch Price  Quality Fit  Durability Style/Design  Fabric Pattern  Convenience /Ease of use Colours  Easy to maintain Comfort
  23. 23. Value Parameters Based on PrimaryResearch Fashion Fads and Trends Uniqueness Variety Occasion based clothing
  24. 24. Strategy Canvas10 9 8 7 Raymonds Ltd 6 5 Madura Fashion and 4 Lifestyle 3 Arvind Mills 2 1 0 Nalli Sarees Mango
  25. 25. Front End Channels Front End Distribution Channels Retail Outlets Franchisee Multi brand Outlets Mega discount Stores E – Retailing Eg.: Pantaloons, Globus, Shoppers Eg.: Local Apparel Stores Eg: Spykar, Levi’s, Provogue Stop, Lifestyle Eg.: Loot, Megamart
  26. 26. Retail Outlets Distribution Channel –Branded ClothingBranded Clothing Warehouse Distributer – Metro City or Distributer for Rest of the State Retail Outlets across the City
  27. 27. Retail Outlets Distribution Channel – LocalGarment ManufacturerLocal GarmentManufacturer Retail Outlets across the City
  28. 28. Share Given at Each StageBranded Clothing: Distributors:10 – 13 % : If the costs for distribution are borne by the distributor2 – 3%: If the costs for distribution are borne by the Company Retailers: 20 – 40% (Depending on the Brand and its promotions and advertising)Locally Manufactured Clothing: Retailers Margin: 50 – 80%
  29. 29. Customer Acquisition Techniques for RetailOutlets Festive Discounts on Local Garments Discounts for regular customers End of Season stock clearance sale Promotions and Advertisements by Companies.
  30. 30. Multi brand Retail Distribution – PrivateLabels Pantaloons stores across the state Warehouse - Bhiwandi Private Label Manufacturing Location (Job work)
  31. 31. Multi brand Retail Distribution – Brands Pantaloons Pantaloons Outlet Warehouse SpecificBrand Warehouse Pantaloons Outlet as required
  32. 32. MarginsPrivate Label Margins: 40 – 55%Brand Margins: 20 – 25% (Varies based on Logistics selected)Margins after considering Store Costs: 15 – 20%
  33. 33. Customer Relationship Management Discount / Point Cards (Eg. Green Card – Pantaloons, First Citizen Card – Shoppers Stop, Lifestyle Card) Advertisements (Newspapers, Hoardings, Pamphlets, FM, Magazine s) Promotional Offers Customer Relationship – handled store to store Sending out greetings and discount coupons based on the database.
  34. 34. Thank You

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