Fashion Appael Verticals Student Submission


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Submitted by - Somesh Makhani, Satya Pakash & Vaibhav Singh Student of Vikas Sharma - Visiting Lectuer on Retail Verticals at Accman Institute of Management

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Fashion Appael Verticals Student Submission

  1. 2. <ul><li>Early man started wearing clothing primarily to protect himself from harsh weather conditions. Over time as societies evolved, clothing began to have a social significance too. Different cultures and religious groups developed their own styles of clothing . Clothing began to reflect one's social status. It became socially unacceptable in most cultures to appear in public without clothes. Along with the importance of garments , people indulged in fashion by using cosmetics and jewelry . Fashion accessories (purses, ornaments, shoes, perfumes, etc.) became as important as fashionable apparel . </li></ul>
  2. 3. <ul><li>Men's costume is that of English civilians, swordsmen and militia from 1580-1600, unless an earlier (1540's) look is required. Period militia did NOT wear uniforms, but did carry somewhat standardized weapons like muskets and pikes. Material should be natural - cotton, linen or wool, in browns, greys, tans, burgundy's and greens for non-Officers. Costume quality and colour should match rank or position in society -- militiamen's clothing and weapons are simpler than Officer's. Leather should be natural brown rather than black if at all possible. </li></ul>
  3. 4. <ul><li>apparel industry is one of India's largest foreign exchange earners, accounting for nearly 16% of the country's total exports. The 1996 Indian textile exports approximately amounted to Rs.35,000 crores of which apparel occupied over Rs14,000 crores. </li></ul><ul><li>  It has been estimated that India has approximately 30,000 readymade garment manufacturing units and around three million people are working in the industry . Today not only is the garment export business growing, enthusiasm in the minds of the foreign buyers is also at a high. </li></ul>
  4. 5. <ul><li>FABRICS </li></ul><ul><li>Casual wear is made of various fabrics both natural and synthetic to provide maximum, ease ad comfort to the wearer. Some of the fabrics are: </li></ul><ul><li>Cotton and Cotton Blends </li></ul><ul><li>Twill </li></ul><ul><li>Oxford </li></ul><ul><li>Denim </li></ul><ul><li>Corduroy </li></ul><ul><li>Silk </li></ul><ul><li>Linen </li></ul>
  5. 6. <ul><li>Fabric Finish </li></ul><ul><li>It is important to give proper finish to all the garments. Companies are focusing on the over all quality of garments. </li></ul><ul><li>A proper finish not only makes the garment look better but also increases its life. </li></ul><ul><li>Companies used advanced technology and blend of different fibers for giving finishes to the garment. These include: </li></ul><ul><li>Anti-wrinkle finish </li></ul><ul><li>Anti-stain finish </li></ul>
  6. 7. <ul><li>Indian apparel industry is segmented in three sector. </li></ul><ul><li>Men’s Wear. </li></ul><ul><li>Kids Wear. </li></ul><ul><li>Women’s Wear. </li></ul>
  7. 8. <ul><li>In 05-06 </li></ul>Value euro) Percentage Men’s Wear 5.65 41.4% Kid’s Wear 3.30 24.2% Women’s Wear 4.69 34.4%
  8. 9. <ul><li>T-shirts </li></ul><ul><li>Jean’s Wear </li></ul><ul><li>Shirts </li></ul><ul><li>Trouser </li></ul><ul><li>Formal Coat </li></ul><ul><li>Casual Coat </li></ul><ul><li>Shorts </li></ul><ul><li>All these have grown at 8% from 2001 to 2006 </li></ul>
  9. 11. <ul><li>Shopper's Stop </li></ul><ul><li>Pantaloon </li></ul><ul><li>Provogue </li></ul><ul><li>Louis Phillip </li></ul><ul><li>West side </li></ul><ul><li>Globus </li></ul><ul><li>Raymond </li></ul><ul><li>Wills lifestyle </li></ul><ul><li>Reliance trends. </li></ul>
  10. 14. <ul><li>The apparel market in India </li></ul><ul><li>Total size: Rs 56,000 crore </li></ul><ul><li>Organized: Rs 11,200 crore (20% of unorganized) </li></ul><ul><li>(Source: Technopak Advisors) </li></ul><ul><li>In 2005, only 10 per cent of Madura’s brands were sold through direct retail as multi-brand outlets, department stores and franchisees registered the better part of the top line. Today, the company, through direct retail, garners up to 40 per cent of the sales. Over the next three years, it predicts that figure to go up to 70-80 per cent </li></ul>
  11. 15. <ul><li>Information revolution promises to bring the world closer to cohesion. In the emerging face of fast moving information, technological transfer is bound to take place at a higher speed . </li></ul><ul><li>  </li></ul><ul><li>As the International borders blur Supply Chain Management and Information Technology take a crucial role in Apparel manufacturing. Global partners in the clothing supply chain are exchanging information electronically, thus the need for Indian Clothing Industry to spruce up. Upcoming technologies for mass customization such as three dimensional non-contact body measurement and digital printing ought to be discussed thoroughly and implemented fast. This mass customization shall be successful for meeting unpredictable demand levels, for luxury goods, uncertain customer wants and for heterogeneous demand. It is to be noted that mass customization is different from mass production </li></ul>
  12. 17. <ul><li>The global textile & apparel industry generated total revenue of USD 1467.5 Billion. </li></ul><ul><li>The global apparel and accessories industry generated total revenues of USD 1,098.6 Billion in 2005; equivalent to 74.9% of the overall industry value. </li></ul><ul><li>The global textile sector was worth USD 214.7 Billion in 2005, which represented 14.6% of the Industry value share. </li></ul><ul><li>The global textile & apparel industry is expected to reach a value of USD 1,781.7 Billion by the end of 2010. </li></ul>Source: Ernst & Young India
  13. 18. <ul><li>India contributes to about 25% share in the world trade of cotton yarn. </li></ul><ul><li>India, the world’s third-largest producer of cotton and second-largest producer of cotton yarns and textiles, is poised to play an increasingly important role in global cotton and textile markets as a result of domestic and multilateral policy reform. </li></ul><ul><li>Indian textile industry contributes about 22 % to the world spindle age and about 6 % to the world rotor capacity installed . </li></ul><ul><li>India has second highest spindle age in the world after China with an installed capacity of 38.60 Million </li></ul>
  14. 19. <ul><li>Textile industry contributes about 61% of the world loom age. </li></ul><ul><li>Indian textile industry has the highest loom age (including handlooms) in the world and contributes about 61% of the world loom age. </li></ul><ul><li>It contributes about 12% to the world production of textile fibers and yarns. </li></ul><ul><li>India is one of the largest consumers of cotton in the world, ranking second to China in production of cotton yarn and fabrics and first in installed spinning and weaving capacity </li></ul><ul><li>Total consumption of cotton/ man-made fibers and filament yarns is 5155 Million Kg (2004-05) </li></ul>
  15. 20. <ul><li>Through export friendly government policies and positive efforts by the exporting community, textile exports increased substantially from USD 7.55 Billion in 1993-94 to USD 17 Billion in 2005-06. </li></ul><ul><li>The ready made garment sector is the biggest segment in the India’s textile export basket contributing over 46% of the total textile exports. </li></ul><ul><li>Export of cotton based items continue to pre-dominate which is natural in view that India is the world’s third-largest producer of cotton </li></ul><ul><li>Exports have grown at an average of 9.47% p.a over the last decade. </li></ul><ul><li>Textiles exports (including Jute, Coir & handicraft): USD 13065.24 Million (2004-05). </li></ul>
  16. 21. Commodities 2005-06 (Million USD) Readymade garments 6038.69 Cotton textiles 3290.31 Man-made textiles 1948.72 Wool & woolen textiles 66.57 Silk textile 406.82 Total 11751.11 Add Handicraft , Coir & coir manufacturers and Jute Total 13065.24
  17. 22. Source: Compendium of Textile Statistics 2006,Office of Textile Commissioner PRODUCTION OF FIBRES India (Million Kg) Raw cotton 4122 Man-made fiber 1023 PRODUCTION OF YARN Cotton yarn 2272 Total spun yarn 3223 Man-made filament yarn 1109
  18. 23. Strength <ul><li>Post 2005, removal of quota restrictions to give a major boost. </li></ul><ul><li>Export target in textile at USD 50 Billion by 2010. </li></ul><ul><li>Cost competitiveness. </li></ul>Source: Compendium of Textile Statistics 2006,Office of Textile Commissioner
  19. 24. <ul><li>Fragmented Industry </li></ul><ul><li>Effect of Historical Government Policies </li></ul><ul><li>Technological Obsolescence </li></ul>
  20. 25. <ul><li>Indian companies need to focus on Product Development </li></ul><ul><li>Increased use of CAD to develop designing capabilities </li></ul><ul><li>Investing in Trend Forecasting to enable the growth of industry </li></ul><ul><li>The growth opportunities exist in following areas: </li></ul><ul><li>Medical textiles </li></ul><ul><li>Construction textiles </li></ul><ul><li>Packaging textiles </li></ul><ul><li>Baby diapers </li></ul><ul><li>Home textiles( with fire-retarded fabric) </li></ul><ul><li>Blankets and Traveling rugs </li></ul><ul><li>Bed, tale, toilet and kitchen linen </li></ul><ul><li>Curtains, drapes, interior blinds </li></ul><ul><li>Furnishing articles </li></ul><ul><li>Sacks and bags </li></ul><ul><li>Tarpaulin, sail, tent, camping goods </li></ul>
  21. 26. <ul><li>Competition in Domestic Market </li></ul><ul><li>Need to improve the Working Conditions of the people who are involved in this profession. </li></ul><ul><li>Need to revamp Consumer Consciousness </li></ul><ul><li>Tackle Chinese Aggression over the International Market </li></ul>Source: KPMG India
  22. 27. Industrial rivalry ( Raymond, Bombay Dying, Arvind & Madura Garments etc.) New entrants ( Alok Industries , Century textiles & industries ltd.) Buyers (Domestic markets, UAE, Europe, Qatar, Oman etc.) Suppliers (Ward man Industries ,Reliance Industries etc.) Substitutes (Chinese , Vietnams & Bangladeshi Textile) Others (Government Initiatives)
  23. 28. Large Composite Textile/ Apparel/Made-ups/Garment Manufacturers Arvind Mills Welspun Group Raymond Alok Industries Madura Garments Composite Units/ Fibers &Filaments manufacturers Ashima Group Reliance Industries Garden Silk Mills Mafatlal Industries Ahmadabad Ahmadabad is the leading manufacturer of cotton and blended textile. It is also one of the largest producer of denim in the world. Government has taken active steps to develop Apparel Park for overall growth of textile sector. Surat Surat is the country’s strongest base for non cotton fabrics.
  24. 29. <ul><li>Setting up Textile Industries oriented SEZs </li></ul><ul><li>Starting up new courses like Textile Manufacturing and Textile Technology at ITIs and Engineering Institutes </li></ul><ul><li>Liberalized labour laws, tax and other benefits of a Special Economic Zone need to be implemented </li></ul><ul><li>Access to high quality and cost-effective manpower </li></ul><ul><li>Excellent connectivity by road, rail air and ports </li></ul>
  25. 31. <ul><li>Natural / Chemical Raw Material </li></ul><ul><li>Fiber </li></ul><ul><li>Yarns </li></ul><ul><li>Grey Fabric </li></ul><ul><li>Finished Fabric </li></ul><ul><li>Garment Made-up </li></ul><ul><li>Retail </li></ul>
  26. 32. <ul><li>Women's Clothing Categories </li></ul>
  27. 33. <ul><li>Lehnga Choli </li></ul><ul><li>Salwar Suits </li></ul><ul><li>Sari </li></ul><ul><li>Women Blouses </li></ul><ul><li>Maternity Apparel </li></ul><ul><li>Lingerie's </li></ul><ul><li>Women's Gowns </li></ul><ul><li>Women's Formal Wear </li></ul><ul><li>Women's Formal Wear </li></ul><ul><li>Women's Leather Clothing </li></ul><ul><li>Sharara </li></ul><ul><li>Women's Winter Clothing </li></ul><ul><li>Capris </li></ul><ul><li>Frocks </li></ul><ul><li>Burqa </li></ul>
  28. 34. <ul><li>Women's Beachwear </li></ul><ul><li>Ladies Tops </li></ul><ul><li>Ladies Kurti </li></ul><ul><li>Dupatta </li></ul><ul><li>Chaniya Choli </li></ul><ul><li>Woman Vest </li></ul><ul><li>Women's Shirts </li></ul><ul><li>Ladies Jeans </li></ul><ul><li>Ladies Jackets </li></ul><ul><li>Women's Scarves </li></ul><ul><li>Lehnga </li></ul><ul><li>Tunics </li></ul><ul><li>Ladies T-shirts </li></ul><ul><li>Ladies Trouser </li></ul><ul><li>Ladies Blazer </li></ul><ul><li>Ladies Coat </li></ul><ul><li>Ladies Suits </li></ul><ul><li>Ladies casual Wear </li></ul><ul><li>Womens Accessories </li></ul>
  29. 35. <ul><li>Different aspects of apparel shopping are important for men and women. </li></ul><ul><li>So product should be provided on consumer prospective. </li></ul><ul><li>Productive development and marketing have become more sophisticated and access to large more varied merchandise assortment has increased tremendously. </li></ul>
  30. 36. <ul><li>Consumer continue to demand unparalleled product availability </li></ul><ul><li>so increase customization and excellent customer service </li></ul><ul><li>so industry leaders will be those companies who invest in predicting consumer wants and needs and developed innovative solutions. </li></ul>
  31. 37. <ul><li>Can’t find apparel style. </li></ul><ul><li>Can’t find the right size or item is out of stock. </li></ul><ul><li>Nothing fits. </li></ul><ul><li>No sales help is available. </li></ul><ul><li>Can’t get in and out of the store quickly and easily. </li></ul><ul><li>Price are too high. </li></ul><ul><li>In store experience is too stressful. </li></ul><ul><li>Can’t find a good value. </li></ul><ul><li>Store is not merchandise conveniently. </li></ul><ul><li>Seasonality of assortments is off. </li></ul>
  32. 38. <ul><li>Consumer wants to look and feel good </li></ul>Women (Emotional) 91 per. Flatters figure 88 per. Comforts 81 per. Makes me feel good 78 per. Will last 74 per. Easy to care for Men (Practical) 90 per. Comfort 79 per. Will last 67 per. Versatile 63 per. Easy to care for 57 per. Fits well
  33. 39. <ul><li>Consumer wants real value </li></ul>Women 88 per. 80 per. 66 per. 52 per. 52 per Men 90 per. 79 per. 67 per. 63 per. 57 per. Quality Price Service Ease of purchase How long it took to find
  34. 41. <ul><li>Table of Contents </li></ul><ul><li>1.0 Introduction </li></ul><ul><li>2.0 Indian Kids wear Market: </li></ul><ul><li>2.1 Industry Overview </li></ul><ul><li>2.2 Market size and Growth </li></ul><ul><li>2.3 Characteristics of Kids wear Markets </li></ul><ul><li>3.0 Growth Drivers: </li></ul><ul><li>3.1 Demography </li></ul><ul><li>3.2 Untapped market potential </li></ul><ul><li>3.3 Media Proliferation </li></ul>
  35. 42. <ul><li>Success Factors: </li></ul><ul><li>4.1 Fashion Innovations </li></ul><ul><li>4.2 Brand Building </li></ul><ul><li>4.3 Visual Merchandising </li></ul><ul><li>4.4 Pricing </li></ul><ul><li>5.0 Major Players: </li></ul><ul><li>5.1 Gini & Jony </li></ul><ul><li>5.2 Lilliput </li></ul><ul><li>5.3 Allen Solly </li></ul><ul><li>5.4 ZAPP </li></ul>
  36. 43. <ul><li>Kids fashion is a diminutive version of adults wear. They have all the clothing as like that of adults, and even much more. Children of today are much more intelligent than their previous generation. They like to have their own choice of clothing. This metamorphosis of children; becoming independent buyers is enhancing the kids wear market. Double income, increase in the amount of disposable income, and one or two kids are the supporting factors to the growth of the kids wear market. Global kids wear market during 2006 was estimated to be around US$ 163.92 billion, which was a small contribution of 3.6% of the total clothing industry. Kids wear segment of the Asia-Pacific region is 35.1% of the global market, and is considered by industry analysts as one of the fastest growing segment, due to increase in child population, supported by many other factors. </li></ul>
  37. 44. <ul><li>Good times for the Indian kids apparel market are in the offing. The evolution in the buying behavior of children, and their influence over their parents results in a big difference in purchase decisions. Media exposures and promotions also cause a significant influence in the market Many manufacturers come up with their own brands, while some others enter into business through joint ventures. Today’s kids are more fashion conscious, and are ready to experiment with clothing. Increase in the amount kids wear being considered as a part of the lifestyle segment and a strong emphasis is being placed on </li></ul><ul><li>brands, this segment proves to be a potential business. </li></ul>
  38. 45. <ul><li>Market for kids apparel is the fastest growing industry in India. Manufacturers are coming </li></ul><ul><li>up with fancy materials targeting kids who are more interested in the upcoming fashion </li></ul><ul><li>trends. Children’s garments are available in various forms and designs. Kids apparel </li></ul><ul><li>market is more unorganized than any other segment of apparels. The market is a </li></ul><ul><li>proposition of the good, bad and the ugly. A huge volume of kids apparel in India is being </li></ul><ul><li>dominated by local and unorganized players. This gives an excellent opportunity for the </li></ul><ul><li>organized players to lay a strong foundation in this segment. Indian market is now moving </li></ul><ul><li>towards an international look in terms of children’s apparel. Cotton plays a major role in </li></ul><ul><li>the clothing of children. Approximately, 86% of the kids wear are of cotton. </li></ul><ul><li>Branded kids apparel market is in its nascent stage in India with a handful of national and </li></ul><ul><li>international brands. Industry analyst estimate that market size of branded kids wear in </li></ul><ul><li>India including brands like Ruff Kids, Ruff Baby, Planet Kids, Gini & Jony, ZAPP, Li’l </li></ul><ul><li>Tomatoes, and Weekender Kids is estimated to be around Rs 1,000 crore. They </li></ul><ul><li>positively assert that branded market for kids is growing at 15% per annum. International </li></ul><ul><li>brands including Barbie, Mothercare, Benetton Kids, Pepe, Lee Kids, Tommy Hilfiger, and </li></ul><ul><li>Adams Kids have also entered the Indian market. </li></ul>
  39. 46. <ul><li>According to the India Apparel Report, 2008 (Images Year Book, Vol IV), the size of kids wear market is </li></ul><ul><li>estimated to be at Rs. 30, 510 crore. Industry experts predict that the market will further grow to reach Rs. </li></ul><ul><li>45, 000 crore by 2013, with braded apparels contributing to a major share. The volume of market share of </li></ul><ul><li>kids apparels in the total apparel market is at 24.9%, as against a 15% share in 2005. Urban kids apparel </li></ul><ul><li>market comprises about 60% of the total kids wear market. A research states that more than 30% of the </li></ul><ul><li>country’s population is below 15 years of age. The density of population makes kids wear to be one of the </li></ul><ul><li>fastest growing segments in the Indian market scenario. </li></ul><ul><li>Market share of the Major Apparel Segments (2007) </li></ul><ul><li>Total size Rs. 122, 400 crore </li></ul><ul><li>Branded kids wear are well established in I tier cities, and are now experiencing a good growth in II & III tier </li></ul><ul><li>cities as well. Wanting the best outfit for their children, parents are seeking a variety of garments offered by </li></ul><ul><li>new brands, and are shopping in exclusive outlets dedicated for children’s apparel. Industry players further </li></ul><ul><li>predict that the market is set to grow by 12% annually and reach its peak by 2010. </li></ul>
  40. 47. <ul><li>Children always keep growing. So, the possibility of this market being strong even in tough times is evident, </li></ul><ul><li>as there is always a demand for kids apparel. </li></ul><ul><li>A survey states that, the maximum sales in children’s wear market comes from smaller towns. Patiala, </li></ul><ul><li>Bhatinda, Coimbatore, Phagwara, and Sonepat are a few to name. Branded wears are well established in </li></ul><ul><li>tier I cities and are now emerging into the II tier and III tier cities as well. Generally stores that offer a wide range of selection at discounts and low prices attract more traffic. As kids </li></ul><ul><li>grow quickly, and are less attentive in keeping their clothes safe, parents consider kids apparel as functional </li></ul><ul><li>and disposable as well </li></ul>
  41. 48. <ul><li>With a promising future for kids apparels, the market has attracted international brands into </li></ul><ul><li>India. While international brands eye Indian </li></ul><ul><li>kids wear market, domestic brands like Lilliput, Li’l Tomatoes, and Catmoss are gearing </li></ul><ul><li>up to have a share in the global market. Representing Indian brands abroad, higher </li></ul><ul><li>profit margins, and succulent opportunities are assumed to be the reasons behind </li></ul><ul><li>their foreign march. </li></ul><ul><li>India has a vast potential for export of kids apparel to foreign markets like </li></ul><ul><li>US and EU. lobal brands like </li></ul>
  42. 49. <ul><li>Craving for a niche, new entrants as well as existing players follow distinct strategies to market their brand. </li></ul><ul><li>Marketing task lies in capturing the imagination of the children with fashionable patterns, and of the parents </li></ul><ul><li>with quality apparels supplemented by reasonable prices. All these determine the success of the </li></ul><ul><li>manufacturer in this segment. </li></ul>
  43. 50. <ul><li>Trends have changed, and it is quite visible. Children, who were taken to </li></ul><ul><li>parks and zoos before, are now coming along with their parents for </li></ul><ul><li>buying their own clothes. So, the retailers who want to take a pie of the </li></ul><ul><li>cherry should focus on attracting the attention of children along with their </li></ul><ul><li>parents. </li></ul>
  44. 51. <ul><li>Kids apparel market is a price sensitive segment. Higher input costs add to the prices of the apparels. With </li></ul><ul><li>the increase in the purchasing power of parents, it is expected that they will sustain the Deciding the price of the apparel mainly depends on defining the target group and identifying buyer </li></ul><ul><li>behavior. business in the long run </li></ul>
  45. 52. <ul><li>Gini & Jony has a range of brands like GJ Jeans, Palm Tree, Levi’s Sykes </li></ul><ul><li>Junior, Red River, UCB, Rocky S, and GJ Knowledge wear for kids. They </li></ul><ul><li>offer a wide range of apparels for children including T-shirts, shirts, </li></ul><ul><li>jackets, cargos, jeans and trousers for boys, and Capri's, dungarees, skirts, </li></ul><ul><li>Jamaicans, and co-ordinate tops for girls. In an exclusive one on one </li></ul>
  46. 53. <ul><li>The kids apparel market in India is worth about Rs 27,000 crore of which only about Rs 500 crore goes to the organized sector, growing at an average of 20 per cent against the 30-35 per cent for the overall industry. </li></ul>
  47. 54. <ul><li>Presented By: </li></ul><ul><li>Somesh makani </li></ul><ul><li>Satya Prakash </li></ul><ul><li>Vaibhav Singh </li></ul>