Indian Apparel Market is Large & Going to be Enormous Currently valued at USD 45 billion Estimated to increase to USD 200 billion by 2025 Combined size of Chinese & Indian apparel markets will become bigger than that of USA & EU by 2025 Indian Domestic Apparel Consumption Values in USD Bn +12% 200 +14% 40 45 31 35 27 2008 2009 2010 2011 2012(E) 2025 (P)4 Source: Wazir Advisors
Women’s Wear will Grow Faster than Men’s Wear Women’s wear will grow faster (CAGR 14%) than men’s wear (CAGR 10%) to touch US$ 84 Bn by 2025 from present US$ 16 Bn Women’s wear will become the leading category (42%) by 2025 Contribution of various Categories 2012(E) 2025 (P) 20% 25% 38% 40% 35% 42% Men’s wear Women’s Wear Kidswear5 Source: Wazir Advisors
Growth of Domestic Apparel Market is Based on Strong Fundamentals Organized Retail in India; Small But Growing Rapidly Growth of Organized Apparel Retail Presence of International Brands Is Ever Increasing Values in USD Bn 170 Increased Women Participation in Workforce 23% Increasing Urbanization 11 Growing Personal Disposable income 2012 (E) 2025 (P)6
Per Capita Consumption of Wool Has Remained Stagnant… Per Capita Fabric Consumption (In Meters) Type of fabric 2008 2009 2010 Cotton 9.07 9.21 9.83 Silk 0.12 0.13 0.15 Woollen 0.06 0.06 0.06 Manmade & blended 12.74 13.64 13.76 Total 22 23 247 Source: National Household Survey, Ministry of Textiles
Per Capita Consumption of Wool is Stagnant in India…But is it True for Consumption of Other Premium Products?
Target Consumers for Premium Products are Growing in Double Digits No. of Households Annual CAGR Category Income (2012- (in Rs lacs) 2005-06 2011-12 2017-18 (P) 2018) Super rich 100+ 54,211 1,16,269 2,77,996 16% Sheer rich 50-100 105,353 2,10,273 4,44,793 13% Clear rich 20-50 464,370 8,55,110 15,56,777 11% Near rich 10-20 11,47,628 19,56,776 32,80,351 9% Total HH (> Rs 10 lacs) 17,71,561 31,38,428 55,59,917 10% • ‘Near rich’ to ‘Super rich’ households are core consumers for premium products • ‘Super rich’ category is growing fastest with a CAGR of 16%9 Source: NCAER, Industry Reports
With Varied Background Their Consumption Pattern Also Vary… Traditionally Self made/ Senior Corporate Socialite wealthy families Entrepreneur executives Born and brought Highly receptive to Value seekers. Buy Buy luxury goods to up in the lap of product innovation luxury products for flaunt it luxury. For them , hence a delight for superior luxury is a marketers of luxury functionality and necessity products quality Annual Income Rs. 1 crore + Rs. 50 lakhs + Rs. 25 lakhs + Rs. 10 lakhs+ Apparel brands Satya Paul, Marks & Spencer Tommy Hilfiger, Armani, Ralph they own Armani, Gant, Tommy, Color Arrow, Zodiac, Lauren, Vero Moda M&S, Arrow Plus, Park Avenue Gant, Van Heusen Watches they Rolex, Omega, Cartier, Rado, Omeg Cartier, Rado, Rolex, Omega, Arma wear Edox, Breguet a Seiko, Citizen, ni Cars they own BMW, Mercedes, Audi , Honda Honda Jaguar, Mercedes, B Audi etc. Accord, Honda CRV, Civic, Toyota MW, etc. Corolla, Skoda Jetta, etc10
Premium to Luxury Apparel Brands Are Increasing Their Presence Luxury Super Premium Premium Brand EBOs MBOs/LFS Brand EBOs MBOs/LFS Armani 2 - Wills Lifestyle 94 150 Allen Solly 147 700 Tommy Hilfiger 58 60 Van Heusen 120 1,000 GANT 20 15 Louis Philippe 153 ~1,000 Boggi Milano 12 10 Arrow 106 400 Zodiac 102 2000 Zodiac 102 2000 Color Plus 94 350 Color Plus 94 350 Blackberrys 125 900 Marks & Spencers 26 - Park Avenue 50 40011
India is One of The Fastest Growing Market For Luxury Cars Brands having manufacturing base in India Unit sales in the Luxury car market 150,000 23% 27,000 54% 2,000 2006 2012 2020 (e) Luxury car segment in India has witnessed one of the fastest growth rates in the world. Most companies have set up their manufacturing base in India. Luxury car brands are going beyond Metro cities and increasingly focusing on smaller cities like Raipur, Ludhiana, etc.. Demand for luxury cars is increasing exponentially in those markets. Expansion Plans for India: BMW: Triple their dealer base from present 22 to 60 dealer outlets by 2015 Audi: Network of 34 dealerships by the end of 2013 from its existing 25 centres12 Source: Industry Publications, TOI articles
Premium Watches Are Increasingly Being Used As Gifts Market Size YoY growth (2012) rate Total Watch Rs 4500 10-15% Market crores Premium and Rs. 1000 20%+ luxury watch crores market Expansion Plans of Brands One of the fastest growing segments within luxury goods From present 250 point-of- space. sales in 61 cities, to 300 over the next two years One of the best choices for gifting: Eight stand-alone stores Corporate Gift Wedding Gift From present 65 outlets to 80 in the next couple of Personal Gift years.13
Consumption of Premium Products is Increasing in India…What Should be Done to Increase Consumption of Wool?
Case Study: Platinum Guild International Objective: Creating, expanding and strengthening consumer and trade markets for platinum jewellery Funded by leading platinum producers and refiners Services: • Provide practical advice & expertise to help jewellery buyers make informed and inspired decisions • Offer the jewellery trade specialist knowledge and resources • Design advertisement • Sales Support • Training to trainers • Provide POS materials • Information support Consumption of Platinum jewelry has more than doubled in last 3 years. It will grow at 50% YoY rate for next couple of years.15
Set Long Term Objective And Decide Action Plan To Achieve It Need to know answer of following key questions • Who should be my target consumers? • What they buy? When? • What they look for while purchasing apparel? • Who influence their purchase decision? • What is their expectation from wool? • How aware are they about wool & Woolmark? • What will be the changes in their apparel consumption in next 10 years? Based on the ‘as on date’ scenario and consumption trends, long term objectives should be set A clear action oriented roadmap needs to be developed to fulfil long term objectives It should be periodically measured and fine tuned16
Work Closely With Brands Identify and join hand with manufacturers across the value chain; spinner, weaver & garment manufacturer Work with brands to develop concepts of wool based product range Connect manufacturing partners with brands for product range development Joint presentation to brands for ensuring the wool based products are included in the collections Join hand with brands in marketing & promotion: • Co-branding • Promotional discounts • In store Promotion Campaigns, etc. With brands becoming dominant, consumers are less concerned about fiber composition17
Educate & Influence Your Consumer Inform & educate consumers about: • Benefits of wool • Making fashion statements with wool products • Handling of wool products Wool based apparel design competition targeting budding designers; Catch them young Designer collection of wool based products Use social media platforms to educate & influence your target consumer Generic promotion of wool with funding from wool growers, manufacturers & brands Focused (geography / consumer segment) marketing efforts works better. Marketing / promotional activities should be a continuous effort.18
Thanks for your time and attention! Prashant Agarwal Co Founder & Jt. Managing Director Wazir Advisors, India email@example.com +91 98711 9500819