BRIC Case Study

BRIC NATIONS CASE STUDY
Contents Page
Page(s)
1.0 Introduction 4
2.0 Overview of India
2.1 PEST Factors 4-6
2.2 Geographic Structure and Demographics 6-7
3.0 Culture
3.1 Overview of Culture 7-8
3.2 Popular Culture 8
4.0 Fashion
4.1 Key Fashion Capitals 9
4.2 Fashion Industry 9
5.0 Conclusion 10

BA(Hons) International Fashion Promotion Global FashionCultures
2
List of Tables, Figures and Images
Page(s)
Figures
Figure 1 India’s Economy Statistics 5
Figure 2 India’s Population Increase 6

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1.0 Introduction
In 2003, a Goldman Sachs report hypothesized that, by 2050, the BRIC nations (Brazil, Russia, India
and China) would be wealthier economies than those that are currently the major economic powers
(Investopedia, 2015). This is further suggested in the words of Andy Rubin, the Chief Executive of
Pentland Brands, who states that the BRIC markets will be the biggest, and most important
economies during our lifetime (Andy Rubin, 2013). In 2014, the political leaders of the BRIC nations
made an agreement to create a $100bn development bank in which the capital will be split equally
among the countries involved (BBC Business, 2014). As a result of this development, it is clear to
predict that the global influence of BRIC nations will continue to rise (O’Neill, 2014). This information
is a clear indication of the huge global importance of the ever evolving and growing economies of the
BRIC nations, in relation to all aspects of business. Therefore, this case study will further discuss the
cultural influences of one particular BRIC nation, and the impact they may have specifically on the
fashion industry. The BRIC nation that has been chosen for this assignment is India, due to the
variety of cultural influences in this highly populated country.
2.0 Overview of India
2.1 PEST Factors
The PEST analysis is a widely used and effective tool in the business world for analysing political,
economic, social and technological factors that may have an impact on other areas (Arline, 2014). In
terms of utilising this for a BRIC nation case study, it allows us to gain a better and more thorough
understanding of the particular environment that is being studied, and how these factors may affect
the fashion industry, whether it be positively or negatively. As suggested by Luciana Zegheanu,
fashion is influenced and mirrors political, social, economic and cultural changes, and therefore,
fashion is an expression of modernity and sporadically changes and reinvents itself, as other PEST
factors do (Zegheanu, 2014).

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Figure 1
India’s government policies, the interests of politicians and the overall principles of the political parties
are the primary influences on the political environment in India (PESTLE Analysis, 2014). In current
news, there were controversial comments made by the BJP party (pro-hindu), as it is suggested that
they seek mass conversion to Hinduism (The Economist, 2015). It is more than likely that there will be
an effect of this on the sales of saris, pavadas for women and
girls, and Dhotis for men, all in further support for the BJP party.
Recent news shows that for the first time in many years, India’s
economy is becoming more and more stable, with official statistics
stating that GDP grew by 7.5% shown in Figure 1 (The
Economist, 2015). Due to the economical reform launched in
1991 in India, hourly wages were doubled and there is currently a
growing middle class (Pillsbury, 2014), this may result in an
increase of sales in the luxury market resulting in further development for the fashion
industry in India. When relating economical factors to the fashion industry, it is necessary to discuss
India’s spending power being on the rise (Hindustan Times, 2014), this will have a positive impact on
fashion sales due to the Indian youth becoming more fashion conscious and therefore, their money is
more likely to be spent on garments.
It is fundamental that retail businesses should keep up to date with social factors and changes in
order to adapt to the ever evolving markets (Mack, 2014). Such factors in India include the growing
ageing population, which shows also an increase in employment of elderly workers (PESTLE
Analysis, 2014), however, these elderly people lack sufficient knowledge and awareness of the
fashion industry, and therefore, their money wouldn’t be contributing to driving sufficient sales for the
fashion retail market. Adam Pillsbury discussed the continuous issue surrounding poverty in India,
stating that a considerable amount of Indians, approximately 350 million, still live in great poverty,
struggling to gain any access to proper nutrition, health care and education. When given this
information, the future of the fashion industry in India is understandably a miniscule concern in
comparison.
Technological changes in this industry can have both positive and negative effects, due to
smartphones and webpage cookies, the use of location-based advertising can specifically target

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Figure 2
nearby customers, increasing their awareness and leading to possible sales, yet, these customers
also have the access to compare prices and quality with competitors worldwide (Mack, 2014).
Specifically to technological changes in India, it is clear to see that this country is up to date with
changes occurring worldwide, such as 3G and 4G internet connection, allowing easier and faster
access when browsing online, India also boasts one of the strongest IT sectors in the world of which
allows constant software upgrades and the development of technological advancements (PESTLE
Analysis, 2014). This suggests that India’s fashion industry should be at the forefront of utilising their
IT position for online sales and advertisement, which allows a broader target market due to the
access to customers worldwide, as well as other benefits such as allowing customers to shop or
browse 24/7 and from the comfort of their own homes.
2.2 Geographic Structure and Demographics
India is the seventh largest country in the world, and the second most populated country with an
estimated population of close to 1.3 billion people, the equivalent of 17.5% of the world’s population
(Population of India, 2015). Demographic studies have predicted that India will overtake China as the
world’s most populous country, due to the growing population rate of 1.41%. These statistics are
shown in
Figure 2.
Current life expectancy statistics collected and analysed by the Census Operations of India
undertaken in 2011 show that there is a greater percentage of men to women, yet women are shown
to live longer, this is further supported with a larger number of women living over the age of 65.

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However, I feel that the relevance of these demographics is of little importance to the operation of the
fashion industry.
The neighbouring nations of India include Pakistan, China and Sri Lanka (Maps of India, 2014),
therefore, in terms of fashion, it is possible that particular shapes, silhouettes, patterns, colour
schemes or materials may be inspired by or have a close similarity to those of the surrounding areas.
3.0 Culture
3.1 Overview of Culture
India is a country of culture and tradition as the ideology of culture goes back to approximately 4,500
years ago (Zimmermann, 2015). Zimmermann wrote a detailed article for Live Science in which she
researched and discussed the different aspects to India’s culture including language, religion,
customs and clothing, and how these can vary depending on the various states of India, of which
there are 28.
In 2010, the Gujarat High Court stated that India does not actually have a national language, despite
the majority of people accepting Hindi as a national language, due to a large proportion of Indians
speaking Hindi and writing in Devenagari script, it is not in fact an official national language (Khan,
2010). However, in more recent times, it has been revealed that nearly 60% speak in a language
other than Hindi, such as Bengali, Telugu, and Marathi (Jain, 2014). The effect this may have on the
fashion industry is that of trying to decide which language to use when listing the details of clothes,
such as lengths, material used and features if selling online.
The Indians culture has a powerful sense of the idea of a spiritual lifestyle and development, which is
the core reasoning for the innovations of India’s strong connections to religion, when places of
worship became incredibly important, leading to the popular forms of various beliefs in the cases of
Buddhism and Jainism. (Indian Mirror, 2014). Close to 84% of Indians identify with Hinduism as their
choice of religion, and about 13% are Muslim, which makes it one of the world’s largest Islamic
nations (Clarke, 2013). In terms of the fashion industry, there are regulations due to the idea of
respect on what can or can’t be worn specific to different religions, for example, Hindu women must
wear clothing that covers most parts of their body, therefore the Sari is generally considered the

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official clothing for the Hindu woman (Hindu women, 2014). It may be due to these clothing-based
rules that western fashion retail companies have struggled to sell women’s apparel in India, therefore,
Hermes in 2011 decided that, to pay homage and be welcomed into the fashion industry in India,
designing their own sari’s to target Indian customers would grant them the sales they desired
(Kazmin, 2011).
There is a notable change in consumer behaviour in India in recent times due to higher disposable
income, technological developments leading to increased customer awareness, and changing
lifestyles as a cause of the urbanisation of previously rural communities (Tecnova, 2014). The rapid
growth of India is further suggested by statistics showing that the consumer market is expected to
grow by 2.5 times by 2025 (Chhapia, 2014), this is evidence that consumer behaviour is rapidly
increasing in India, which will further benefit the fashion industry’s sales. Research has also shown
that India’s consumers are increasingly becoming more impulsive buyers due to the higher disposable
income, and the access to online shopping as a result of technological advancements (Tecnova,
2014). The fashion industry must take note of this change in consumer behaviour and make the most
of the use of technology to target impulsive buyers, who can purchase items quickly and easily us ing
smart phones.
3.1 Popular Culture
Celebrity influence is a significant factor towards sales in the worldwide fashion industry (Ecvienna
Fashion, 2014). This is reflected in India also; ShahRukh Khan, Indian superstar, endorses the brand
Belmonte in their advertisements and campaigns in order to specifically target their ideal market, with
the managing director stating Khan as “the ideal choice for the youth oriented brand” (Business
Standard, 2007). Indian cinema, primarily the Bollywood industry, is a popular and successful
promoter of the fashion industry and greatly influences specific fashion trends (dotcomwomen, 2014).
Bollywood celebrities influence the fashion among younger people due to the glamorous and standout
trends promoted on film, with the extravagant patterns and colours (Ecvienna Fashion, 2014).
Bollywood is a key influence on the entire fashion industry within the Indian market as the fashion is
not confined to inspiration from India’s own culture and tradition but also includes a touch of western
culture, therefore, it is clear to understand that the Indian film industry has a large impact on
consumers behaviour towards fashion (Singh and Gupta, 2014).

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4.0 Fashion
4.1 Key Fashion Capitals
According to the Top Global Fashion Capital survey from 2013, New Delhi was number 22, due to
focusing on the traditional strengths, Mumbai is also in the list at number 45 (Language Monitor,
2014). Both New Delhi and Mumbai both delve into the fashion world by holding their own fashion
events, in which the competition between the two is fierce. These fashion weeks in the two most
fashionably important cities in India continuously attract both buyers and designers alike, and, in
doing so, greatly contribute to India’s fashion industry as well as retail sales (Gottipati and
Vyawahare, 2012).
4.2 Fashion Industry
The market size for fashion in India is rapidly growing and by 2021, it has been predicted that
domestic and exports houses of India’s apparel industry will reach $223 billion, in comparison to the
$89 billion from 2011 (Annand and Khetarpal, 2014).
There is a growing market for luxury brands in India, with the Nielsen Global Luxury Brands Survey
stating that India one of the most brand conscious countries in the world, of the Indian survey
respondents, 35% were reported to buy designer brands. High end luxury brands have entered the
Indian market, primarily due to the higher salary, growing middle class and the new breed of self-
employed entrepreneurs (Grail Research, 2009). Consumer expenditure on the fashion industry is
estimated to be at 3.1 trillion Indian rupees, which is 7.2% of the total domestic expenditure (Fashion
Industry Statistics –India, 2015).
The fashion industry also contributes to the employment of the population, with approximately 2
million people employed in the manufacturing process, such as textiles, clothing, leather and footwear
(Fashion Industry Statistics – India, 2015). The textile industry in India is one of their oldest industries
in which producing cotton is an ongoing tradition, this country is one of the top producers of yarns and
fabrics in the world. This industry contributes 11% to the country’s total exports, and therefore, is one
of the country’s largest contributors to this sector (IBEF, 2015).

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5.0 Conclusion
From the extensive research and analysis undertaken throughout this case study, it is clear to
understand from the findings that there is a significant connection between culture and fashion, India’s
culture is reflected through the fashion, and encourages growth within the fashion industry. This is
echoed mostly through the increase of GDP, growing middle class and higher salary and, therefore,
the connection is portrayed with the increase of luxury brands within the fashion market. As previously
discussed, due to the powerful sense of religion and beliefs in India, the fashion garments reflect the
honour and respect necessary in places of worship, and the covering of the body that is expected of
women. As well as India being a country of growth within the fashion industry, and other aspects of
business and the economy, we understand that they are a large contributor towards the fashion
industry also, due to their booming textile industry. Andy Rubin’s words are of extreme importance
and relevance when discussing the BRIC nations and how influential they will be during our time.

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References
Arline, K. (2014) ‘PEST Analysis: Definition,Examples & Templates’,Business News Daily,11 December.
Available at: http://www.businessnewsdaily.com/5512-pest-analysis-definition-examples-templates.html
(Accessed:3 April 2015)
BBC Business (2014) Brics nations to create $100bn developmentbank.Available at:
http://www.bbc.co.uk/news/business-28317555 (Accessed:28 March 2015)
Changing Pattern of Consumer Behaviour in India (2014) Tecnova,5 August.
Clarke,M. (ed.) (2013) Handbook ofResearch on Developmentand Religion.Edward Elgar Publishing
Gottipati, S. and Vyawahare, M. (2012) ‘In Delhi and Mumbai,Dueling Fashion (and Fashion Weeks)’, The New
York Times,2 March,
Hindu Women,Indian woman,clothing | Hinduism Facts | Facts aboutHindu Religion (no date) Available at:
http://hinduismfacts.org/hindu-women/(Accessed:5 April 2015)
INDIAN CULTURE TRADITIONAL CULTURE IN INDIA (2014) Available at:
http://www.indianmirror.com/culture/cul1.html (Accessed:5 April 2015)
Indian fashion – Modern Influences (2014) Available at: http://www.dotcomwomen.com/beauty/indian-fashion-
modern-influences/22021/(Accessed:10 April 2015)
India pips Japan to be 3rd largesteconomy in purchasing power(2014) Hindustan Times,30 April,
Investopedia (2015) Brazil,Russia,India and China – BRIC [Online] Available at:
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Jain, B. (2014) ‘Nearly 60% of Indians speak a language other than Hindi’, The Times of India,21 June,
Kazmin, A. (2011) ‘Hermes sees sari as wayin to India’, Financial Times,7 October,
Khan, S. (2010) ‘There’s no national language in India:GujaratHigh Court’, The Times of India,25 January,
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factors-affecting-retail-business-71662.html (Accessed:4 April 2015)
Moran, G. (2013) ‘Fashion’s future lies overseas,says Andy Rubin’,Drapers,
Mufflerman Triumphs (2015) The Economist,14 February,
Neighbouring Countries Maps (2014) Available at: http://www.mapsofindia.com/neighbouring-countries-maps/
O’Neill,J. (2014) ‘Is the BRICS rise over?’, Bruegel.org,26 July.
PESTLE Analysis of India in five Steps (2014) PESTLE Analysis,
Pillsbury,A. (2014) ‘Empowering women social entrepreneurs in India’,The Guardian,4 September,
Population ofIndia (2015) (no date) Available at: http://www.worldometers.info/world-population/india-population/
Singh,J. and Gupta, K. (2014) ‘Bollywood and Fashion Trends in India:A Longitudinal Study’, International
Journal of Scientific Research and Management,2
Textile Industry in India,Indian Textile Industry,GarmentIndustry (no date) Available at:
http://www.ibef.org/industry/textiles.aspx(Accessed:10 April 2015)
Zegheanu,L. (2014) Fashion Trends’ Impacton Society. Available at:
https://www.notjustalabel.com/editorial/fashion-trends%E2%80%99-impact-society(Accessed:3 April 2015)

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