The document provides an introduction and overview of the apparel industry. It discusses the global and Indian markets for apparel, key players in the industry, and distribution channels. Research methods used to study the industry are also mentioned, including Porter's Five Forces analysis, SWOT analysis, PESTLE analysis, and case studies of major companies. The document contains an executive summary and table of contents outlining the various sections of the report on the apparel industry.

1. 1
COMPREHENSIVE PROJECT
REPORT ON | APPAREL INDUSTRY
SKPIMCS ,Gandhinagar
Submitted By :-
Hetal Bhatt
Ashwini Bhave

2. 2
ACKNOWLEDGEMENT
We are using this opportunity to express our gratitude to everyone who supported us throughout
this summer project. We are thankful for their aspiring guidance, invaluably constructive
criticism and advice during the project work. We are grateful to them for sharing their truthful
and illuminating views on a number of issues related to the project.
We express our warm thanks to Prof Kruti Patel for being supportive as a mentor and for guiding
us throughout the project.

3. 3
EXECUTIVE SIMMARY
The aim of this comprehensive project is to study the Apparel Industry. Every aspect of the
Industry has been covered in this report. This report gives a wide view of how the Apparel
Industry is globally and domestically, and how it works around the globe and in India.
In the first part of the project, general information and introduction of the Industry is give which
was collected by secondary sources.
The second part contains the global and Indian scenario of the Apparel Industry, which includes
the type of products, market share of companies, value of apparel global apparel market etc.
The various elements of the project are summarised as follows:
a. To study the global and Indian apparel market
b. Product profile and demand determination of the industry
c. To know the key players of apparel industry
d. To study the distribution channel of the industry
e. Company study and industry analysis
Top players of the industry were collected and the market share of the companies, their growth in
the industry and the current scenario is mentioned in the report. After which, how distribution
channel works in apparel industry was studied, in which every aspect of channel was covered.
We came across Key issues and current trends included in the strategies used by different players
in the industry and how they segment, target and position their product is mentioned.
We also used many strategic modals to study this Industry like :
SWOT analysis of the industry
PESTLE analysis of the industry after which, apparel companies are studied individually.
Five Force Model in the Apparel industry is being studied and other models like BCG matrix,
strategic Group Mapping was done for few top companies of Industry in India.
Ended it with Financial analysis, future outlook and conclusion at the end of the report.

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## Title TABLE OF CONTENTS PAGE NO.ge No.
1. Introduction 1-5
2. Research Methodology 6-9
3. Industry Study 10
4. Study of World Market 11-22
5. Study of Indian Market 23-30
6. Product Profile 31-33
7. Demand determination of the Industry 34-38
8. Players in the Industry 39-46
9. Distribution channel in the Industry 47-51
10. Key Issues and current trends 52-62
11. PESTEL Analysis 63-68
12. Company Information 69-73
13. Product Market Description 74-76
14. Industry Analysis : Michel Porter’s Five Force Model 77-80
15. Strategic Models 81-84
16. Financial Analysis 85-88
17. OT Analysis 89-93
18. Problems Identification, Problems Analysis 94-95
19. Future Outlook/Conclusion 96-98
20. Annexure (Case Studies ), Bibliography 99-103

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CHAPTER-1
INTRODUCTION

6. 6
Apparel has retained an important place in human life starting from historical era to today’s
modern world. Apparel industry in the contemporary market is a global industry. The history of
clothing production can be traced back to the year 2000 BC. Apparel production becomes one of
the large scale economic activities providing significant employment, next to agriculture. The
Indian textile and clothing industry provides a valuable wealth of craftsmanship both skilled and
semi-skilled work force which is the major contributor towards the development of apparel units.
Textile and apparel industries are vital parts of the world economy, providing employment to
tens of millions, mostly, women workers in nearly two hundred countries. The garment industry
is experiencing production and organizational changes globally, with deepening trade activity
altering employer – employee relations. The world garments industry is on the threshold of fare
aching institutional changes in the near future. Despite being one of the most global industries in
the world, the exemplary trade practices in a globalizing world are still distorted in favour of
advanced economics. Over the past 3-4 decades, trade restrictions, price and quality; have come
to play a major role in conditioning the patterns of the sector’s development.
Traditional giants in the production of textile and apparels are China, India, Pakistan and
Vietnam which are competing with each other. Although the industries are geographically
dispersed throughout the world, today, China dominates the scene with respect to textiles and
apparels. China is the world’s largest producer and exporter of textiles and it has invested in
more spinning and weaving equipment than any other country. The various factors that
contribute towards the sickness in the cotton textile industry worldwide are out-dated technology
and persistent labour problem in spite of positive growth factors such as eco-friendly, bio-
degradable character of cotton, its versatility, exports and export potential, the employment
generated by it in the agricultural and industrial sectors and employments potential. Hence, it
was felt that necessary protection needed to be given to the entire cotton sector to maintain its
level of production and employment and enable it to diversify, modernize and improve its
productivity levels and compete effectively in both domestic and international markets.
Globalization is inevitable and unavoidable under the present world economic situation. Many
industries are affected positively or negatively with the globalization trend. The textile industry
is no exception. It has been facing a crisis situation in the past few years. It faces a tough
competition in the world market. The global textile and clothing trade has increased by around
60 times from $ 6 billion in 1962 to $395 in the year 2003. In general, it has been seen that the
developing countries have a comparative advantage in textiles and clothing trade.

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Indian Scenario
The textiles industry in India accounts for 14% of industrial production, which is 4% of GDP;
employs 45 million people and accounts for nearly 11% share of the country’s total exports
basket. Exports of textiles and clothing products from India have increased steadily over the last
few years, particularly after 2004 when textiles exports quota stood discontinued. India’s textile
exports for the year 2011 was reported at 15016 million US $ by the WTO in International Trade
and Market Access Data. During the year 2010-11, Readymade Garments account for almost
39% of the total textiles exports. Apparel and cotton textiles products together contribute nearly
73% of the total textiles exports. India’s textiles products, including handlooms and handicrafts,
are exported to more than a hundred countries. However, the USA and the EU, account for about
two-thirds of India’s textiles exports. The other major export destinations are China, U.A.E., Sri
Lanka, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, Pakistan, Brazil, Hong-Kong,
Canada and Egypt etc. In textiles, 16.4 million workers are employed all over the world. China
was the largest employer, accounting for total employment of 3.1 million which accounts for
19% of the world’s total. It was followed by the former USSR with 14% of the world’s total,
India with 11%, the United States with 5% Japan accounts below 5%. Other sizable textile
employers are Germany, Spain, Taiwan and Italy.
There are considerable changes in the production and the export of textile by various countries.
China gained importance by employing 41% of the world’s total in the textile industry. India is
the second largest employer in textile industry. Indian textile industry is one of the largest and
the most important sectors in the economy in terms of output, foreign exchange earnings and
employment generations. The Indian textile industry contributes about 14% to the national

8. 8
industrial production and about 35% to the total national export earnings. India has also been a
significant player in the global textile markets. It is the third largest producer of cotton, second
largest producer of silk, the largest producer of jute and the fifth largest producer of man-made
fibres and yarn.
The Indian Textile Industry, being one of the oldest and important sectors earns lot of foreign
exchange and employs a considerable percentage of population from both urban and rural areas
Exports of cotton have emerged has a major source of foreign exchange earnings for the country.
Cotton being the, commercial crop of India, is grown in 84 million. hectares but the per hectare
yield in India is at lowest level compared with other countries like Israel, Australia, Syria,
Turkey, China and USA and the quality does not measure up to the world standard. Indian
Textile industry has been witnessing a big structural change, continuously reinventing and
rediscovering it to meet the needs of the stringent global buyers.
Indian Companies have started raising their standards and also aggressively pursuing their
human resource strategies aimed at image building as well as overall growth. India is emerging
from the quota era to set up strong vertically integrated textile operations and aiming to become a
leading source to the world for its high-end textile needs, from yarns to fabrics to readymade
garments. It may be true that India is likely to emerge as one – stop source for creative textiles,
offering a formidable combination of product development skills and infrastructure for the
contemporary, high-value products across every fibre group15. With over 1700 textile mills,
about 40 lakhs people are employed in handlooms, hosiery and processing units. The textile
industry is the single largest industry in the country. A spurt in the man-made yarn exports and a
decline in the man-made fibre exports in the liberalization era is a welcoming trend as yarn is a
higher value added item which contributes more to export earnings. Still exports of cotton have
emerged as a major source of foreign exchange earnings for the country. The ratio between
woven clothing and knitwear shows an increasing trend in knitwear in the US market.
Global Scenario
• The textile & Clothing trade in the global market is fast changing with the scaling up of
uses of textiles in diverse areas. Asian countries including India play a dominant role in
the international trade of the global market. China has the major share in textile and
clothing trade in the international market etc. Both Bangladesh and Hong Kong have a
significant share. However, India is still on the back seat. It is reported that Asian
countries export most of textile and apparel to Europe and North America and USA etc.
• Asian countries are gaining in textile trade due to lower costs compared to African,
European and South American countries. As per the global textile and apparel industry:
vision 2015, World textile and apparel trade is expected to reach US$805bn by 2015
from US$650bn in 2010. At present few countries like Bangladesh, Thailand, Cambodia,
Srilanka, Pakistan contribute major share in forex earnings of their country from textile
and clothing trade, though their share in the world market is not very significant.

9. 9
• Asian countries are facing challenges in the global market due to volatility in price, rising
input cost, energy crisis and lacking of marketing initiative/ exposure etc. In addition,
initiatives need to be made in the area of research and development, skill development
and capacity building of the industry as a whole. Industry has to be in demand driven
mode.
• It is also noticed that tariff rate in few Asian countries are extremely high, which became
a barrier to scale up the share in the international market. At present a few Asian
countries are enjoying a special status in the global market as per WTO guide line and
able to retain share till date. But this may not last long because of growing competition
emerging from other countries. Government of the concerned countries also facilitated
the sector to grow by framing policy and keeping provision of incentives/ concessions to
encourage for international marketing.

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CHAPTER-2
RESEARCH METHEDOLOGY

11. 11
Research objectives
• To enhance concepts learning experience through involvement in industrial and
commercial field.
• To develop the ability to evaluate issues and situation critically and propose well
considered options and solutions.
• To develop and enhance professional awareness and analytical skills.
Methodology
As we were not conducting any survey, our research is mainly based on secondary data.
1. Primary Data - Primary data is information that we collect specifically for the purpose
of our research project. An advantage of primary data is that it is specifically tailored to
our research needs.
2. Secondary Data - Secondary data refers to data that was collected by someone other than
the user and is already available.
Secondary data was collected by us with the help of internet, articles, company
brochures, PDFs, etc. with the help of secondary data, we were able to find out different
aspects and needs of our research like we learned about the products and services and
features provided by the companies.
Data Collection
We used different tools for data collection like
- Articles
- PDFs
- Company Brochures
- Google Search Engine
With the help of the above tools, we gathered all the information about our research and data.
Market Segmentation: Men’s Wear Segment

12. 12
Market Segmentation: Menswear Market Today menswear market is the biggest segment of the
market, however women’s wear segment is growing faster than other segment of apparel, is
expected to gain majority share in future. Kids wear is also growing rapidly.
Market Segmentation: Women’s Wear Segment
High growth categories in women’s wear market including woven tops/shirts / T- shirts, Ethnic
wear categories sari, salwar, kameez also have high growth potential.

13. 13
Market Segmentation: Kid’s Wear

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CHAPTER-3
INDUSTRY STUDY

15. 15
STUDY OF THE GLOBAL MARKET
Global Scenario of Industry
The global apparel market is valued at 3 trillion dollars, 3,000 billion, and accounts for 2 per
cent of the world's Gross Domestic Product (GDP). The fashion industry includes many sub
industries, such as menswear, womenswear and sportswear.
• The womenswear industry is valued at 621 billion dollars
• The menswear industry is valued at 402 billion dollars
• The retail value of the luxury goods market is 339.4 billion dollars
• Childrenswear had a global retail value of 186 billion dollars
• Sports footwear is valued at 90.4 billion dollars
• The bridalwear industry is valued at 57 billion dollars
Industry Analysis & Industry Trends
• Over the past decade, the Global Apparel Manufacturing industry has benefited from an
increasing number of consumers opting to buy more garments at lower prices. Revenue
for this industry is expected rise over the five years to 2017. Rising disposable income
levels across both developed and emerging economies are expected to be the main
driving force behind the industry's renewed growth. Continually improving global
economic conditions are anticipated to benefit the industry over the five years to 2022.
Rising per capita disposable incomes, coupled with the steady upward trend in the global
population, will give way to rising demand for apparel.

16. 16
Industry Investment
In the Global Apparel Manufacturing industry, expenditure on wages accounts for a
much larger proportion of revenue than for capital. IBISWorld expects that a typical
manufacturer in the industry dedicates $0.16 to capital for every dollar spent on labour.
There are many manual steps involved in the assembly process of apparel. For example,
manufacturers of high-quality apparel often require products to be individually hand
stitched and assembled. As a result, it is difficult to replace labour with automated
processes in particular parts of production.
However, the overall level of capital investment within the industry has increased over
the past five years, as manufacturers of lower-value apparel have automated many
processes to maximize efficiency.
Industry Products
What is the Global Apparel Manufacturing Industry?
Operators in the Global Apparel Manufacturing industry make men's, women's and
children's apparel. The industry includes manufacturers that purchase fabrics and those
that manufacture fabrics themselves and have fixed operational facilities. Manufacturing
of leather and plastic apparel is not covered by this report.
Industry Products
Women's clothing
Men's clothing
Children's and infants' clothing
Other apparel and clothing accessories
Industry Activities
Manufacturing coats and winter clothes
Manufacturing suits for men and women
Manufacturing leisure clothes
Manufacturing nightwear
Manufacturing children's and baby clothes
Manufacturing sportswear
Manufacturing work clothing and ethnic clothes.

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Statistics: Global Apparel Market 2016-2020
Source-https://shenglufashion.wordpress.com/2016/10/16/statistics-global-apparel-market-2016-2018/

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VALUE OF GLOBAL APPAREL MARKET

19. 19
BRAND MARKET SHARES IN THE GLOBAL APPAREL MARKET

20. 20
Market Size of the Global Textile and Apparel Industry: 2015 to 2020
Textile Mills Market
The textile mills market includes yarns and fabrics. The market value includes domestic
production plus imports minus exports, all valued at manufacturer prices.
The value of the global textile mills market totalled $667.5 billion in 2015(around 83.1%
were fabrics and 16.9% were yarns), up 1.5% from a year earlier. The compound annual growth
rate of the market was 4.4% between 2011–15. Asia-Pacific accounted for 54.6% of the global
textile mills market value in 2015 and Europe accounted for a further 20.6% of the market.
The global textile mills market is forecast to reach $842.6 billion in value in 2020, an
increase of 26.2% since 2015. The compound annual growth rate of the market in the period
2015–20 is predicted to be 4.8%.

21. 21
Apparel market
The apparel market covers all clothing except leather, footwear and knitted items as well as other
technical, household, and made-up products. The market value includes domestic production
plus imports minus exports, all valued at manufacturer prices.
The value of the global apparel market totalled $842.7 billion in 2016, up 5.5% from a year
earlier. The compound annual growth rate of the market was 5.2% between 2012–16. Asia-
Pacific accounted for 60.7% of the global textile mills market value in 2016 and Europe
accounted for a further 15.0% of the market.
The global apparel market is forecast to reach $1,004.6 billion in value in 2021, an increase
of 19.2% since 2016. The compound annual growth rate of the market in the period 2015–20 is
predicted to be 3.6%.

22. 22
Apparel retail market
The textile mills market includes yarns and fabrics. The market value includes domestic
production plus imports minus exports, all valued at manufacturer prices.
The value of the global textile mills market totalled $667.5 billion in 2015(around 83.1%
were fabrics and 16.9% were yarns), up 1.5% from a year earlier. The compound annual growth
rate of the market was 4.4% between 2011–15. Asia-Pacific accounted for 54.6% of the global
textile mills market value in 2015 and Europe accounted for a further 20.6% of the market.
The global textile mills market is forecast to reach $842.6 billion in value in 2020, an
increase of 26.2% since 2015. The compound annual growth rate of the market in the period
2015–20 is predicted to be 4.8%.

23. 23
Characteristics of the Apparel Industry
• The high quality fashion market is based on modern technology which has a relatively
well paid labour force and designers with various degrees of flexibility. Many firms
within this industry try to capture the market through various designs which is targeted at
meeting the taste and preference of consumers. Most of the firms under the high quality
fashion markets are in the developed and industrialized countries.
• The mass production low-quality/standard products markets are found in the developing
countries. These categories are basically involved in the production of uniforms, under
wears, t-shirts and many more. They are found in exporting zones working with major
importers if the industrialized countries. Outsourcing in this market is basically to
household productions, (Nordas, 2004).
• The Clothing industries operate under free import quotas. This means that both clothing
and textile industries do not have to pay import tariffs when importing raw materials
connected to clothing and textiles. These tariffs are made possible by the World Trade
Organisation, to improve the importation of varied clothing among producing countries.
As a result of the protectionism, many developing countries producing clothing were able
to survive the industry. This however did not go well with the developed countries since
there were great competition between the developing countries like China and the
developed countries.
• On the part of employment, the industry has engaged the services of millions of people
worldwide and also with other individuals who are not registered but work in their homes
and factories. The industry was the first to trade on a global dimension, simply because of
the low barriers in entering the production of clothing. The industry is governed by the
international labour laws, employing the most sensitive part of the labour force with
females and ethnic minority as the leading employees. Most of the employees are
immigrants. The European community, and the US and UK also have blacks as the major
employees of the industry. Most of the producing countries in the developing world have
females as the majority of employees in the industry. As indicated above, the total labour
force of the clothing industry is made up of 80% of women. This is largely due to the fact
that women are immobile and therefore are able to take care of domestic chores. A
greater number of the female workforce is also unskilled or semi-skilled. In the
developing countries, many of the workers spend up to 12-14 hours per day and are paid
with very low wages.
THE PRODUCTION CIRCUIT
The clothing industry is part of a large circuit which involves the production of textiles.
The industry is more fragmented organisationally and less technological in nature. The
industry outsource most of it components and products. The garment industry therefore
produces to unpredicted consumer markets. The industry serves as a distribution point for
all garments. Through retailer efforts, the organisation ’s geography has been

24. 24
shaped accordingly. The industry is also known as a buyer driven industry, in the sense
that they purchase most of the raw materials from producing countries worldwide.
There are six stages that individual producing countries have passed through, that is from
the embryonic stage to the maturity and decline stage of the development process of the
clothing industry. This can be seen in (Figure 1 below).
The stages indicate how raw materials flow within the industry, from the fabric
production stage, design, preparation, production, distribution and consumption stage. In
the reverse state is the information flow from customer orders down to the fabric
production stage. There is no much technological change since inception of the clothing
industry. The majority still uses the manual operations due to the complex nature of the
production process.
The clothing industry can be related to a supply chain function, where activities flow
from raw materials to textile designs, apparel plants through distribution centers and
other retail stores to consumers. The chain is seen as an integrated network of marketing
from production stage to the finish product to consumers. The various activities are
located where each can be able to make a contribution to the value of the finished
product. The various variables considered in the industry include quality, cost, reliability,
access to quality inputs and transportation cost. From the figure 2 above, the black lines
represents the flow of goods whereas the white lines represent the flow of information.
The arrows indicate Demand-Pull System, where the design of a product is made from
customer orders, (Nordas, 2004). The supply chain indicates the interplay of several
companies, where logistics and other services are coordinated. In the industrialized
countries, most companies engage the services of consultants or independent service
providers in the provision of logistics.
PRODUCTION COST AND TECHNOLOGY
The clothing industry is characterized by low intensity of capital and high intensity of
labour. The plant size is very small with simple technology.
The figure compares percentage of 2000 and 2011. Asia dominates the clothing industry
in-terms of exports with over 50% of world market. China has doubled their share within
11years of operation, with approx. 37% of the total exports worldwide. Closely followed
is the European Union and Euro extra with a combined total of 35% of world export
share, which I a combination of intra regional exports.
China leads with 38% representing 154 billion Dollars in 2011, (www.wto.org) European
union closely follows with 36% of Share in value representing 144billion US Dollars
including intra regional trade. Bangladesh also did better in 2011 with a share in value of
5%, representing an amount of 20billion US Dollars, www.wto.org).

25. 25
LEADING IMPORTERS (SHARE IN VALUE AND PERCENTAGE)
The EU is the leading importer of clothing worldwide, with combined percentage of
67.2% of total imports. The EU imports much of its clothing from China. Available
records indicates that EU imports about 39% if Clothing from China, 14% from Turkey,
7.7% from India, 6.3% from Bangladesh and 3.6% from Tunisia, ( www.ec.europa.eu). It
is also evidenced that China exports clothing more than imports. Whereas China leads in
exporting clothing, in-terms of imports, they only imports about 0.90% of world clothing.
The US is the second largest importer of clothing as evidenced on figure 4 above. The US
imports about 20.5% of clothing in the country, followed by Japan with 7.6%. The
remaining countries imports less than 3% worldwide respectively, (WTO 2011 chart
II.69)
The share in value for the leading importer of clothing (EU) is 60%, representing an
amount of 290Billion Dollars. The EU is therefore the largest importer of clothing
worldwide. The US is the second largest importer of clothing with about 18% share in
value, representing 89 Billion US Dollars.
TOP TEN SUPPLIERS
The clothing industry has about ten major suppliers. China plays a leading role with
about 29.45million Euros in 2011 as compared to 2007 where it made a supply of
approximately 21.9million Euros.
Bangladesh also improved in their supply in 2011 with 7.5million Euros as compared
with 2007 with a supply of 4.4million Euros. India also had a slight increase in supply for
2011 with approximately 4.5million Euros as compared to 2007 where the supply was
approx. 3.8million Euros.
However, Turkey had a decline in supply in 2011 with an amount of 8.2million Euros as
compared with 2007 with approx. 8.9million Euros. Other countries like Indonesia, Sri
Lanka, Pakistan and Vietnam had their supply below 2million Euros as evidenced on
figure 2.
Top 10 suppliers in clothing (million Euros)
Basic characteristics of the industry (share in value added and employment, structure
and characteristics of the production process)
The role of trade policy (multilateral tariffs and quotas, “grey area
protectionism, trade conflicts, preferential trade, etc.)

26. 26
Trade policies are rules and regulations governing the operations of international trade
among countries worldwide. Trade policies play a major role in the industrialization of
the clothing and textiles market.
TEXTILES AND CLOTHING AGREEMENT
The textiles and clothing industry has long history in-terms of agreement for protection in
trade across the US and Europe.
Voluntary export restraints were agreed upon by China, Japan, Hong Kong, and India to
enable them export cotton products to the US in the 1950s. The General Agreement on
Trade and Tariffs were incorporated in the agreement with the Long Term Agreement
(LTA) on Cotton.
This agreement was later replaced by the Multi-Fibre Agreement in 1974, (Nordas,
2004). The main purpose of the MFA was to open up the restricted markets so to limit the
disruptions of markets. The MFA was also extended to cover all man-made fibres in-
terms of restrictions. However, according to Nordas 2004, the MFA violated the
multilateral system principles as follows:
• The most favoured principle was not adhered to
• Instead applying tariffs, it rather applied quantitative restrictions
• Developing countries were discriminated against
• It was not also very transparent for easy understanding
By 1st January, 2005, the Textiles and Clothing were fully integrated in GATT which
also gave way for quotas to be fully integrated making it easy for member countries to
trade without trade barriers. In the views of Nordas, the eliminating quotas lead to
welfare economic gains of about 42% of the Uruguay round liberation, and about 65%
for dynamic models.
A tripartite committee report on promoting fair globalization in textiles and clothing
indicates that phasing out quotas will benefit China, being the leader in exporting of
clothing in the industry, where as the importing countries will lose market share,
(www.ilo.org) .
The Agreement on Textiles and Clothing (ATC) ended in 2004, which led to an increase
in competition in the clothing market.
Some countries were affected as a result of the new entrants of the Asian countries like
Vietnam and Cambodia, and other competitors like India and Bangladesh which are
traditional exporters.
This led to a decline in the importation of clothing from the affected countries by the US
at an annual rate of 13.4%. With the implementation of Preferential Trade Agreements
(PTAs) which were imposed by the US and EU on the importation of textiles and
clothing from China, inroads were created for some developing countries to experience
marginal growth in their exports.

27. 27
CHAPTER -4
STUDY OF INDIAN MARKET

28. 28
Indian Scenario
Indian textiles and apparels have a history of fine craftsmanship and global appeal. Cotton, silk
and denim from India are highly popular abroad, and with the upsurge in Indian design talent,
Indian apparel too has found success in the fashion centres of the world.
India is the world's second-largest manufacturer and exporter of textiles and apparels, with a
massive raw material and manufacturing base. The industry is a significant contributor to the
economy, both in terms of its domestic share and exports. It contributes about 10 per cent to
manufacturing production, 2 per cent to the GDP and 15 per cent to the country's total exports
earnings.
• The sector is the second largest employment provider in the country, employing about 51
million people directly and 68 million people indirectly in FY 2015-16. The apparel and
garment sector provides employment to 12.3 million people as of 2016-17 and produces
3.6 million tonnes (MT) of apparel and garments.
• Clothing in India varies depending on the different ethnicity, geography, climate and
cultural traditions of the people of each region of India. Historically, male and female
clothing has evolved from simple loincloths to cover the body to elaborate costumes not
only used in daily wear but also on festive occasions as well as rituals and dance
performances.
• In urban areas, western clothing is common and uniformly worn by people of all social
levels. India also has a great diversity in terms of weaves, fibers, colours and material of
clothing. Colour codes are followed in clothing based on the religion and ritual
concerned. The clothing in India also encompasses the wide variety of Indian
embroidery.
• India is known for its diversity the all over the globe. Ethnic clothing is just one of the
things that distinguish one part of India from the other. The traditional Indian attire has
earned admirers from people from all over to organizations like UNESCO. The
craftsmanship with which artisans create traditional dresses is really incredible.
• All forms of clothing are quite labour intensive and require a lot of attention to detail.
Many of these art forms are dying because the cost of production is higher and few
people can afford to pay the high cost of the dress.

29. 29
• This has forced the textile ministry to come up with ways to sustain these artisans and
preserve their talent and art. As every state in India is geographically different from the
other, this has given rise to varied kinds of dresses and styles.
Current Scenario
• India's Garment Industry is a well-organized enterprise and is among the best in the
world. It constitutes of designers, manufacturers, exporters, suppliers, stockists, and
wholesalers.
• Indian Garment Industry has carved out a niche in the global markets and earned a
reputation for its durability, quality and beauty.
• Today's changing consumer preferences - buying branded apparel and fashion
accessories, major boom in retail industry, people shopping at department and discount
stores, shopping malls, with rising disposable incomes, government policy focused on
fast-track textile export growth, and ambitious goals have created several investment
opportunities in India.
Domestic Export Share
• The Indian textile and apparel industry is one of the largest in the world with an
enormous raw material and manufacturing base. The present domestic textile industry is
estimated at US$ 33.23 billion and unstitched garments comprise US$ 8.307 billion.
• The industry is a significant contributor to the economy, both in terms of its domestic
share and exports. It accounts for a phenomenal 14 per cent of total industrial production;
around 4.78 per cent share in the country's total exports in 2014-15.
Source

30. 30
• Even today, textiles sector is one of the largest contributors to India’s exports with
approximately 13 per cent of total exports. The textiles industry is also labour intensive
and is one of the largest employers. The textile industry has two broad segments.
(I)First, the unorganised sector consists of handloom, handicrafts and sericulture, which are
operated on a small scale and through traditional tools and methods.
(II) The second is the organised sector consisting of spinning, apparel and garments segment
which apply modern machinery and techniques such as economies of scale.
• The textile industry employs about 45 million people directly and 20 million people
indirectly.
• India's overall textile exports during FY 2015-16 stood at US$ 40 billion.
• The Indian textiles industry is extremely varied, with the hand-spun and hand-woven
textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills
sector at the other end of the spectrum.
• The decentralised power looms/ hosiery and knitting sector form the largest component
of the textiles sector. The close linkage of the textile industry to agriculture (for raw
materials such as cotton) and the ancient culture and traditions of the country in terms of
textiles make the Indian textiles sector unique in comparison to the industries of other
countries.
• The Indian textile industry has the capacity to produce a wide variety of products suitable
to different market segments, both within India and across the world.
Key Markets and Export Destinations
The main markets for Indian textile and apparel exports are:
• United States
• European Union
• Parts of Asia
• Middle East
In the near future, India's apparel exports to developed markets are expected to increase
considerably. Apparel exports from India is expected to reach US$ 82 billion by 2021 and
total cloth production in India is expected to reach 112 billion square metres by FY17. In
2014-15, India exported apparels worth of US$ 14.93 Bn.
Apparel Export Promotion Council

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The Apparel Export Promotion Council (AEPC) is the official body of apparel exporters that
provides assistance to Indian exporters, as well as to importers/international buyers choosing
India as their preferred sourcing destination for garments.
Source: India Brand Equity Foundation

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Latest developments In India
• In southern India's Tirupur town, young girls are lured to work in the garment industry
with a promise of 'golden opportunity' to earn their own dowry at the end of a three-year
apprentice period. Garment industry of Tirupur projects a turnover of Rs 10,000 crore
this year, down from Rs 11,000 crore in 2006-07, thanks to the falling dollar. The
industry employs 400,000 workers regularly and an additional 500,000 seasonally where
most of them women and teenaged girls.
• The Indian Garment industry is today modernized via an exclusive scheme, which has set
aside $5bn for investment in improvisation of machinery. International brands like the
Levis, JC Penny, Wal-Mart, Gap, Marks & Spencer and other industry giants are
sourcing more and more fabrics and garments from India.
• According to a study China and India will be major gainers. Where India could increase
their share from present 8 % in US textile market to 13.5% and from 3% to 8% in US
Garment market.
• Morgan Stanley has projected India to be one of top three exporters of textile and
garments.
• Indian Cotton Mills Federation study has estimated Indian textile exports to reach US $
40 Billion by 2010 and 12.5% share in the Indian Commodity export basket
• However, the garment industry in India faces stiff competition from countries such as
Bangladesh, China and Vietnam. There is a pressure on the Indian garment industries to
produce finished garments at lower costs to survive the cut-throat competition. Today,
around 45% of the total textile exports in India account for ready-made garments.
• Garment Industry in India is looking at achieving an export target of $25 billion- an
Apparel Export Promotion Council (AEPC) official said.
• The industry today would need an additional 1.5 million people
• An investment of Rs. 35000 crore in terms of related infrastructure is required
Exports
India exports 7% of its Textile and Apparel to U.S.

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Market Size
• The Indian textiles industry, currently estimated at around US$ 120 billion, is expected to
reach US$ 230 billion by 2020. The Indian Textile Industry contributes approximately 2
per cent to India’s Gross Domestic Product (GDP), 10 per cent of manufacturing
production and 14 per cent to overall Index of Industrial Production (IIP).
• Indian khadi products sales increased by 33 per cent year-on-year to Rs 2,005 crore (US$
311.31 million) in 2016-17 and is expected to exceed Rs 5,000 crore (US$ 776.33
million) sales target for 2018-19, as per the Khadi and Village Industries Commission
(KVIC).
• The total area under cultivation of cotton in India is expected to increase by 7 per cent to
11.3 million hectares in 2017-18, on account of expectations of better returns from rising
prices and improved crop yields during the year 2016-17.
• Indian exports of locally made retail and lifestyle products grew at a compound annual
growth rate (CAGR) of 10 per cent from 2013 to 2016, mainly led by bedding bath and
home decor products and textiles. The Government of India targets textile and garment
sector exports at US$ 45 billion for 2017-18.

34. 34
Future of Apparel Industry
• The future for the Indian textile industry looks promising, buoyed by both strong
domestic consumption as well as export demand.
• With consumerism and disposable income on the rise, the retail sector has experienced a
rapid growth in the past decade with the entry of several international players like Marks
& Spencer, Guess and Next into the Indian market. The apparel market in India is
estimated to grow at a Compound Annual Growth Rate (CAGR) of 11.8 per cent to reach
US$ 180 billion by 2025.
• High economic growth has resulted in higher disposable income. This has led to rise in
demand for products creating a huge domestic market. The domestic market for apparel
and lifestyle products, currently estimated at US$ 85 billion, is expected to reach US$
160 billion by 2025.
• The Indian cotton textile industry is expected to showcase a stable growth in FY2017-18,
supported by stable input prices, healthy capacity utilisation and steady domestic
demand.
Government Initiatives
• The Indian government has come up with a number of export promotion policies for the
textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the
automatic route.
Initiative will be taken into consideration by Government of India.
• The Government has planned to connect as many as 5 crore (50 million) village women
to charkha (spinning wheel) in next 5 years with a view to provide them employment and
promote khadi and also, they inaugurated 60 khadi outlets which were renovated and re-
launched during the completion of KVIC s 60th anniversary and a khadi outlet
• The Gujarat government's decision to extend its textile policy by a year is set. It is
believes to attract Rs 5,000 crore (US$ 50 billion) of more investment in sectors across
the value chain. The government estimates addition till now of a million units of spindle
capacity in the spinning sector and setting up of over 1,000 units in technical textiles.
The key initiatives announced in the Union Budget 2017-18 to boost the textiles sector are
listed below:
• Encourage new entrepreneurs to invest in sectors such as knitwear by increasing
allocation of funds to Mudra Bank from Rs 1,36,000 crore (US$ 20.4 billion) to Rs
2,44,000 crore (US$ 36.6 billion).Upgrade labour skills by allocating Rs 2,200 crore
(US$ 330 million)

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CHAPTER-5
PRODUCT PROFILE

36. 36
Casual Wear
Women
Men
Kids

37. 37
WORK WEAR
Women
Men
SPORTS WEAR

38. 38
CHAPTER -6
DEMAND DETERMINATION OF
THE INDUSTRY

39. 39
Investment
The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth
US$ 2.55 billion during April 2000 to June 2017.
Some of the major investments in the Indian textiles industry are as follows:
• Future Group is planning to open 80 new stores under its affordable fashion format,
Fashion at Big Bazaar (FBB), and is targeting sales of 230 million units of garments by
March 2018, which is expected to grow to 800 million units by 2021.
• Raymond has partnered with Khadi and Village Industries Commission (KVIC) to sell
Khadi-marked readymade garments and fabric in KVIC and Raymond outlets across
India.
• Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales network
to 400 stores in 120 cities by investing Rs 400 crore (US$ 60 million) in the next 4 years.
Supply
• Despite some pick-up in demand from both global and domestic markets, most new
capacities in the apparel and home textile segments are not operating at full capacities.
Demand
• High for premium and branded products due to increasing per capita disposable income.
• Demand for various apparel categories varies substantially across the country. The urban
market that mainly comprises of metro cities such as Delhi/ NCR, Mumbai, Bengaluru,
Chennai, etc., are the biggest markets for apparel in India and contribute 23 per cent to
the Indian apparel market.
• But lately, many global brands have started penetrating into Tier -I and -II cities, while
domestic brands are also strengthening their position in these markets. Many fashion
retailers and apparel brands have already established themselves in smaller cities. High
real estate costs, competition among branded players and saturation in metro cities of the
country have made big brands to move towards the smaller cities of the country.

40. 40
• The increasing purchasing capacity and awareness of fashion and trend in small cities has
resulted in providing a huge market to the organised players of the country.
• The rural apparel market in India is still primarily catered by unbranded and unorganised
local players. Need based clothing and price sensitivity among people of rural India does
not make it a lucrative market for branded players.
Price
• The apparel market can be broadly divided into super premium, premium, medium,
economy and low price segments.
• The medium price segment holds majority of the share among apparel segment by
holding 29 per cent
• Economy which holds 28 per cent of the share of the apparel market of the country.
• The price sensitive rural population forms a major chunk of 54 per cent of the low and
economy price segments of apparel market.
• Customers across income groups purchase medium priced apparel at varying frequencies.
Sometimes the customers of the premium and super premium segment wish to trade
down to medium segment while in some other cases the low income customer prefers to
trade up to medium segment depending on the requirement of the attire and look.
• Many Indian consumers of the medium income level prefer medium price segments as it
offers the assurance of certain minimum quality standards at a reasonable and affordable
price.
• The super-premium and premium price categories are value driven categories and the
product offerings of these segments come from established brands.
• Budget Pricing
Many consumers seek low prices when shopping for apparel. Serving this segment can
yield significant sales volume at the expense of lower per-unit profitability. Customers in

41. 41
this segment are willing to sacrifice quality for affordability and are less likely to be loyal
to specific brands.
• Luxury Pricing
In the luxury tier of the market, consumers' price sensitivity often is more closely
correlated with a brand's image rather than inherent product quality or market value.
Apparel products are closely tied with self-expression and social status in consumers'
minds, so consumers in this segment are often more concerned with the social image.
• Value Pricing
The key to value pricing is to strike a balance between cost and quality. Value shoppers
are not willing to sacrifice quality for extremely low prices, but they also are not willing
to pay more than apparel is worth simply for a popular brand logo.
• Price promotions as sales tool
Price promotions can be an effective means of increasing sales and customer loyalty for
any pricing strategy in this industry. Back-to-school discounts, holiday sales events and
off-season discounts all can be effective at moving more apparel off the shelves. Use
customer loyalty programs, seasonal sales, off-season discounts, back-to-school
promotions and coupons online and in printed circulars.
Promotion Schemes in Apparel Industry
• The Government of India plans to introduce a mega package for the power loom sector,
which will include social welfare schemes, insurance cover, cluster development, and up
gradation of obsolete looms, along with tax benefits and marketing support, which is
expected to improve the status of power loom weavers in the country.
• The Ministry of Textiles has signed memorandum of understanding (MoU) with 20 e-
commerce companies, aimed at providing a platform to artisans and weavers in different
handloom and handicraft clusters across the country for selling their products directly to
the consumer.

42. 42
• Memorandum of Understanding (MoU) worth Rs 8,835 crore (US$ 1.3 billion) in areas
such as textile parks, textile processing, machinery, carpet development and others, were
signed during the Vibrant Gujarat 2017 Summit.
• The Union Minister for Textiles inaugurated Meghalaya’s first-ever apparel and garment
making centre to create employment opportunities in the region. The Union Minister for
Textiles also mentioned Meghalaya has been sanctioned Rs 32 crore (US$ 4.8 million)
for promotion of handlooms.
• The Government of India has announced a slew of labor-friendly reforms aimed at
generating around 11.1 million jobs in apparel and made-ups sectors, and increasing
textile exports to US$ 32.8 billion and investment of Rs 80,630 crore (US$ 12.09 billion)
in the next three years.
Export Structures in Apparel Industry
As per the Indian budget 2016-17,
• Basic Excise Duty of 2% or 12.5% is being imposed on readymade garments and made up
articles of textiles.
• In respect of readymade garments and made up articles of textiles ,the optional levy of
Nil or 6% in case of garments / articles of cotton, not containing any other textile material
and 12.5% in case of garments / made up articles of other composition.
• The tariff value for readymade garments and made up articles of textiles is also being
increased from 30% to 60% which shall apply to all goods.
How GST will affect Apparel Industry?
• The new GST structure will replace the existing indirect taxes with a fixed tax structure
for each product category which will vary from 5% to 28%.
• On retail front non-premium brands will be benefitted who generate 80-90% of the sales
from products worth less than Rs. 1,000.
• Loyalty of the customers to the brands will be a defining factor for both premium and
non-premium brands alike.

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CHAPTER -7
PLAYERS IN THE INDUSTRY

44. 44
Number of Players
• Levis
• Provogue
• Allen Solly
• Lee
• Pepe Jeans
• Van Heusen

45. 45
• Wrangler
• Spykar
• Numero Uno
• Flying Machine

46. 46
Market Share Of Brands
Brands
0%
Levis
28%
Provogue
7%
Allen Solly
27%
Pepe
20%
Lee
18%
Revenues (in crores)
Brands
Revenues (in
crores)
Levis 1000
Provogue 267.82
Allen Solly 981.41
Pepe 730
Lee 632.40

47. 47
Growth Rate

48. 48
Indian Textiles and Apparel Industry Analysis
• The textile and apparel industry can be broadly divided into two segments - yarn and
fibre, and processed fabrics and apparel. India accounts for ~14 per cent of the world's
production of textile fibres and yarns (largest producer of jute, second largest producer of
silk and cotton, and third largest in cellulosic fibre).
• India has the highest loom capacity (including hand looms) with 63 per cent of the
world's market share. The domestic textile industry in India is estimated to reach US$
250 billion by 2019 from US$ 150 billion in July 2017, while Cotton production in India
is expected to increase 10-15 per cent during FY18
• Increased penetration of organised retail, favourable demographics, and rising income
levels are likely to drive demand for textiles. India is the world's second largest exporter
of textiles and clothing.
• Textile and apparel exports from India are expected to increase to US$ 82 billion by
2021. Exports of textiles from India reached Rs 1.2 trillion (US$ 18.57 billion) during
April – September 2017. Readymade garments remain the largest contributor to total
textile and apparel exports from India, contributing 47.69 per cent to total textile and
apparel exports. Yarn and made-ups were the other major contributors with shares of
14.36 per cent and 12.89 per cent, respectively.
• Rising government focus and favourable policies is leading to growth in the textiles and
clothing industry. The Ministry of Textiles is encouraging investments through increasing
focus on schemes such as Technology Up-gradation Fund Scheme (TUFS).
• To promote apparel exports, 12 locations have been approved by the government to set
up apparel parks for exports. Under Union Budget 2017-18, Government of India
allocated around US$ 926.66 million for textile Industry.
• Free trade with ASEAN countries and proposed agreement with European Union will
also help boost exports. Cumulative FDI in the Indian textiles reached US$ 2.4 billion
between April 2000 - September 2017.
• The government has extended the duty drawback facility on all textile products and
increased rates in some cases for one year to boost exports in the sector. The government
is also planning to conduct road shows to promote the country's textiles in non-traditional
markets like South America, Russia and select countries in West Asia.
Textile plays a major role in the Indian economy
(i) It contributes 14 per cent to industrial production and 4 per cent to GDP (ii) With over

49. 49
45 million people, the industry is one of the largest source of employment generation in
the country
• The industry accounts for nearly 15 per cent of total exports. The size of India’s textile
market in 2016 was around US$ 137 billion, which is expected to touch US$ 226 billion
market by 2023, growing at a CAGR of 8.7 per cent between 2009-23E
• As of June 2017, the central government is planning to finalize and launch the new textile
policy in the next three months. The policy aims to achieve US$ 300 billion worth of
textile exports by 2024-25 and create an additional 35 million jobs.
• Production of raw cotton in India grew from 28 million bales in FY07 and further
increased to 35.1 million bales in FY17
• During FY07-17, raw cotton production expanded at a CAGR of 2.3 per cent
• During FY16(1), of the overall amount of raw cotton produced in the country, domestic
consumption totalled to 30 million bales, while in FY15(1), the domestic consumption of
raw cotton stood at 30.4 million bales
• Raw cotton and man-made fibres are major segments in this category

50. 50

51. 51
CHAPTER-8
DISTRIBUTION CHANNEL

52. 52
Apparels arrive at one of the several distributions channels located in different sales markets.
After unpacking and allocating, the garments are sent to the stores. These centres are in some
cases supporting the stores in a geographic region consisting of several sales countries. The
individual stores do not have backup stocks and they are replenished as required from central
stockrooms as and when need arises. As soon as a product is sold a request is sent for
replenishment.
Global supply chain
Green supply chain:
Logistics is challenging for every fashion industry and H&M places a big emphasis on the green
transportation. Goods sent from producers in Asia are transported almost exclusively by ocean.
Within Europe, H&M strives to increase the share of movements by rail over road. More than 90
percent of all transports are done via ocean, rail or road. Air is used only in exceptional cases
when faster deliveries are required.
Distribution channel in India in apparel brands is given below:
Multi Brand Retail Distribution
Brand Warehouse Brand Outlet
Brand Warehouse Specific Outlet as required

53. 53
Front End Channels in apparel industry:
Source
Retail Outlets Franchisee Multi Brand Outlets Mega Discount Stores E-Tailing
(Local apparel Eg.Spykar, Levis Eg. Pantaloons, Eg. Megamart,Metro
Provogue) Shoppers stop,
stores) Lifestyle

54. 54
The Difference Between Traditional & E-Commerce Channel in Apparel
Industry
Since the fashion industry is ever changing, the company can modify production patterns which
will result in higher profit margins. Clothes that are have higher demand can be re-ordered
whereas those that have lesser demand can have lower re-orders.

55. 55

56. 56
CHAPTER -9
KEY ISSUES AND CURRENT
TRENDS

57. 57
Role Of Technology
• 1.Visual Search going mainstream
Computer vision as a technology is not new in apparel industry, but it is finally going
mainstream with heavy weights like Macy’s, Nordstrom, Target and others, using visual
search in their apps and websites. Visual search uses color, shape, size and proportions to
find similar items. This offers an advantage over keyword-matched search, in which
results are only as good as the searcher’s ability to describe an item.
• 2. ‘Fit’ becoming critical
Product returns are one of the issues online retailers are battling with. Tools that enable
sizing will be a big trend such as augmented reality enabled Virtual fitting rooms, 3D
body scanners; Software tools that compare sizes across brands, creating avatars and
sizing them are some of the approaches being used by the e-commerce players.
• 3. Advanced machine learning becoming an integral part of fashion technology
(Personalize feeds and remove clutter)
Of late the focus of apparel industry has shifted to anticipating and predicting what the
shopper is looking for. And the true context can be achieved only by delving into the next
frontier of technology-artificial intelligence and machine learning. Companies are
moving away from using simple statistical analysis of historic data and are using AI,
specifically computer vision and deep learning to study unique tastes and predict and
personalize recommendations at an individual level.
• 4. Digital assistants styling shoppers
Wouldn’t it be nice if you could have a perfect digital stylist, monitoring your closet?
Suggesting what to wear based on your calendar, recommending appropriate clothes from
your favourite stores?
• 6. Big Data or is it My data( to get the meaningful insights)
Technology is changing how the fashion industry makes decisions. With real time
analytics they give actionable data that many companies currently use to make
purchasing and merchandizing decisions.
we will see industry focusing on Micro aspects of Big Data. Instead of just using “those
who bought this also bought this”

58. 58
Information will be gathered from their posts, images liked, shopper behavior, their
closets, celebs followed etc.
Promotion Strategies in Apparel Industry
• Increase Publicity :--Bloggers to do a blog post on particular Apparel
- Article in a local newspaper where brand can be talked about.
-Fashion column in a magazine or newspaper
• Fashion Shows/ Event Hosting-: -A fashion show by pairing up with other designers in the
industry to stage a fashion show that you would use to showcase your apparel. .
-Also using fashion show to promote a humanitarian cause.
-For instance, fashion show to create awareness for cancer or HIV/AIDS or Environment
and some of your earnings can go towards the financial support of that cause. This would
not only draw the attention professionals, it would also draw the attention of the general
public especially people who are passionate about the cause you are promoting.
• Tele-media Marketing-: Advertising using television, radio or billboards. Making out
flyers and place them in public places or have people hand them out for you at bus parks,
train stations, shopping malls, etc.
• Newsletters and Catalogues-: Sending newsletters and a catalogue containing pictures of
your products as well as a description and prices to your mailing list regularly.
• Social Media-: The social media is also a very powerful marketing tool. social media to
drive traffic to website easily.
• Affiliate marketing-: Affiliate marketing is another good way to promote your brand. By
using affiliate marketing techniques, you can easily have other people join in your
marketing campaign and together, you would be able to increase awareness and generate
more revenue.
Marketing Strategies in Apparel Industry
Levi’s
• Product: Levi`s Strauss has three sub brands under it namely Levi`s, Dockers and Levi`s
Strauss signature jeans. The company has divided these products to cater the needs of the
market. The three brands comprises of many products. These brands include accessories,
brands, sunglasses, belts, wallets, ladies bags and jackets.
• Place: Levi Strauss decides the channel of it distribution according to the products.
Whole sellers are mostly preferred. There are more than 110 countries in the world where
the Levi`s products are distributed. The market share is actually qualitatively high.

59. 59
• Price: In all the Asian markets, the Levi Strauss products are sold at listed prices. There
are offers too at seasonal occasions. Operating at a global area the price has a big effect
on the market. In Asia Levi Strauss has a niche market. It is a high than the competing
brands. Since it has a big reputation in the market hence it is also a reason for pricing.
• Promotion : Levi Strauss is known for its very good advertising and promotions. Its
advertisements on international fashion magazines and newspapers are making the
product effectively popular.
Levi Strauss should try promoting its product in the market where still it has not reach.
Using internet as a tool for marketing has taken them to a new level. The sales office,
distribution level, promotions and offers at malls also contribute to its promotions.
Allen Solly
• Product: Allen Solly not only aims to dress people better but also allow them to
experiment with their looks. The fresh range of clothing has helped the developing India
come across as stylish and really presentable. The extreme passion with which they are
building their brand has helped the contemporary Indian generation to develop a style
that is incomparable and quite classy. The quality apparel and unique range are the basic
reasons behind the enormous popularity.
• Place: Allen Solly follows a unique model of brand expansion and values outlets and
mixed stores equally. The apparels can be located in Malls as well as Retail Stores. The
brand has more than 200 outlets in India itself and with the plans
of International Expansion. The impeccable branding and the impressive
clothing products are what attract most customers to the retail outlets of Allen Solly.
With the rise of Ecommerce, you will also find Allen solly clothes being sold online in
huge quantities.
• Price:Like any other contemporary, Allen Solly also aims to bring the best of dressing
option for Indian audience at affordable price. Though the enterprise follows a unique
discounting algorithm and attracts audience but the quality service and products are here
to stay. The price range is also very soothing, people can buy impressive T-shirts at an
initial price of 700 INR and shirts for somewhere around 900-1800INR.
• Promotions :The simple idea that Allen Solly enrolls such glamorous personality for
creating brand awareness says a lot about the promotional campaigns the enterprise
believes in.
Allen Solly has always tried to maintain a positive and classy image by enrolling
impressive personalities as brand ambassadors. With the ads and all the marketing
campaigns running, one thing we can say about Allen Solly is that, it is here to stay and
help India dress better on every occasion.

60. 60
Provogue
• Product: The targeted group is middle to upper middle class young men and women,
specially office going generation. Hence, Provogue deals in contemporary clothing,
which is accessible to masses in terms of price and style. Provogue invests in providing
the trending designs and colors to its customers, especially considering high competition
in the market.
• Price: Provogue follows a competitive pricing strategy. Competitive pricing is used for a
wide range of products. The brand offers a wide range to choose from, in terms of prices.
The prices are fixed according to the trends and competition both. Example a specific
design might be trending in the industry, for which brand can charge a higher price
though for classic products like blazers,
• Place : Provogue has showrooms which are self-managed. Most of the showrooms are
located in metro cities, considering the target audience. These stores have trained staff to
offer a welcoming experience. Total of 40+ cities are covered by 50 self-managed show
rooms. In malls, the showrooms and products in retail stores inside malls, are present.
Online apparels are available in Myntra, Jabong, Amazon, etc. Also provogue provides
option to buy from its own site, where the latest fashion are updated.
• Promotion: The discounting is done seasonally and sales is increased considerably.
Discounting channels are both online and offline retails. Provogue ads are given both
through ‘Below the line’ channels like stores promoting the brand, through printed photos
of apparels. Above the line ads, in televisions are endorsed by ambassadors from time to
time. Provogue, targets young generation and hence recently had been very much
involved in the social media platforms like you tube and Facebook. Bollywood actors are
the brand ambassador for Provogue.
Lee
• Product: The company ensures that as it continues to produce the fashionable products
that are in high demand, it also maintains its heritage as there is still a considerable
market size that feels more comfortable in those cowboy apparel types than the hip-hop
generation’s garments. In a nutshell, for the most functional and quality jeans that will
serve you for long even when your work involves a lot of abuse, then the Lee
jeans brand will be your final destination.
• Price: The “working class” market segmentation is most suited by the Lee jeans. The
jeans’ design and construction feature tough and ruggedness hence characterised with
high durability. They thus offer very high durability for those on tough working
conditions. Though their jeans come with an array of cuts, all their jeans come with a

61. 61
simple and very clean look. The ultimate goal is functionality and quality emphasis. As
a result, the pricing strategy is based on quality.
• Place: Lee is an American company but not only for the American market but beyond.
The company serves a worldwide market, with an iconic status being acquired in the
USA, Australia, and the UK. Recent marketing strategies are meant to make the brand
acquire the same iconic status in other parts of Europe.
• Promotion: Marketing strategies involve the release of new products followed by
advertisement campaigns that communicate the fashion and functional roles of the
apparels in the today’s consumer lives
Pepe
• Product: Main Products: Earlier it focused on young men and women, with its offering in
summer and winter casual wear. Denim product provide this brand with most value.
Slowly it has also ventured into teen and kids section also.
Customized: The Pepe jeans website also offers to design one’s own Denim products,
with text, graphic and studs.
Special segment: Another special segment, called Norton, is specifically motorcycle gang
design, to showcase even more rebellious side of Pepe Jeans wearers.
• Price: Pepe Jeans differentiates itself by providing better quality at lesser cost. In
customer’s perspective, Pepe Jeans is a brand with quality better than its competitors and
pricing equal to them. Another differentiating strategy is innovations. It gives is customer
the option to customize. Positioning itself as the brand of iconoclasts. The Denim
products in India are of the range: Rs.999 to Rs.4999, which captures most of the upper
middleclass market. Also, this strategy also showcase how they price their products
according to the economy, to expand easily.
• Place: The company has been extensively involved in online selling. In India Jabong,
Myntra and other web stores are the hottest market for its products. Company’s own site
also allows shipping to more than 50 countries around the world. It also has an added
option to custom design. Pepe Jeans is concentrated mostly in Europe. It started its
eastward expansion since 2014. With growing economy and population size of China and
India, it has come up with manufacturing plants here itself.
• Promotion: Discounts coupons are available, both online and offline. Pepe Jeans uses
advertisement to mock the social norms and extensively promoting to get out of the
boundaries and stand as rebel. These are highly popular among young generation. Being
an old brand, the name itself signifies a lot. Customers who buy it, attach themselves with
their free-spirited personality.

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Segmentation & Positioning
The following data is about Indian Apparel Industry, how the entire industry is segmented
according to apparel categories.
Source
Segmentation & Positioning in top Apparel Players:
Levis
Segment Upper class and Upper Middle Class
Target Group People who want a blend of style and Comfort
Positioning Outgoing and stylish quality jeans
Allen Solly
Segment Young fashion conscious Women and Men
Target group Urban Men Upper class and upper middle class

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Positioning Lighten up the workplace
Provogue
Segment Casual wear
Target Group Men and women from the urban upper middle class
Positioning Tough and rugged, lasting quality
Pepe
Segment
Men and women who like contemporary style of fashion with a
rebellious attitude.
Target Group Young urban Men and women from the upper middle class
Positioning
Pepe Jeans is a premium and international brand, which houses
casual wear with a heart of London in it.
Lee
Segment
Men and Women who want to wear stylish and innovative jeans at an affordable
price.
Target Group Young urban men and women from the upper middle class
Positioning A stylish brand with a sporty look with an American imaginery to the brand.

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Growth in Indian Apparel Industry
Indian sub-continent is the second largest manufacturer of garments after China being the global
leader in garment production. India is known for its high quality garments for men and most of
the garment manufacturers are in the Small and Medium scale industry.
India’s Apparel Industry Market Size
As we can see in the above data that in2016 Indian Apparel Industry has market size of 143
billion and by 2023 it is to be of 223 billion.

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Source
As we can see in the above graph India’s Domestic Apparel Industry in 2020 is 140
billion from 89 billion in 2015 and Exports will be 80 Billion from 45 Billion in 2015

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Source
• Both Bangladesh and Vietnam have cut into India’s pie as a preferred manufacturer of
clothing, while India’s exports have languished. A recent study attributed this fall to
greater competitiveness in factories of Bangladesh. India’s garment factories are too
small. They typically have 150 people and about 80 machines while the average factory
in Bangladesh has 600 people.
• The biggest markets of the world such as US and EU relied on Bangladesh for the
production of RMG. Bangladesh exported around $5.36 bn worth of apparels and
garments and $3.36 bn worth of knitwear globally. Textile and garment sector in
Bangladesh alone provides employment to 80% of the total 5 million workforces

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CHAPTER -10
PESTEL ANALYSIS

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PESTEL Analysis
Political Factors
The political factors can be the biggest source of uncertainty for the apparel industry.
-The economy is intervened by the laws and policies issued by the government which results in
ups and downs of the industry.
-The laws like recycling of waste, policies regarding import, export and trade has a major impact
on apparel industry.
-Apparel industry is also affected by the rules and regulation regarding taxation and these rules
change in every country effecting the economic growth of apparel industry.
Thus, mainly the factors that will affect the industry most are:
• Government policies
• Rules and regulations regarding taxation

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Economic Factors
Economic factors can have both positive and negative impacts on the clothing industry.
-During economic boom periods, people have more disposable income. Hence, they may buy
more clothing, increasing sales for clothing manufacturers, wholesalers and retailers.
-However, recessions have the opposite effect. Sales for these various clothing entities may be
significantly lower. Consequently, retailers may be stuck with large amounts of inventory. And
they may have to sell the clothing at substantially reduced prices.
Clothing manufacturers and retailers may also need to sell lower-priced clothing brands to
compete with more generic brands.
-Consumers often shop for cheaper brands when they have less disposable income.
Thus, mainly the factors that will affect the industry most are:
• Disposable Income of consumer
• Phase of the economy (recession, boom)
Social Factors
Apparel industry is mainly affected by the social behaviour of the people and their attitude
towards the product.
-The cost of the labour also depends on the society and that affects the cost and sale of the
company.
-In addition to that fashion trend changing so quickly has led apparel industry to take into
acknowledgement and change their product accordingly.
-Fast fashion brands like Zara have brought affordable but good quality fashion to the customers.
High class fashion is no more the privilege of upper end consumers because, it has been made
affordable using technology and new techniques.
-Even if the quality of fabric is not as great as the luxury brands, it is good enough and in terms
of style and design, these fast fashion brands are hardly behind. They rely on feedback and not
on advertising or marketing campaigns only.
-Consumers have become more aware and brand conscious.
In light of these changes the fashion retail environment has grown challenging.

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Thus, mainly the factors that will affect the industry most are:
• Consumers attitude towards buying
• Brand consciousness
Technological Factors
-The technological factor can also affect the garment industry by defining the availability of the
resources and their optimal use. The process used now-a-days in mainly automatic but not every
owner is able to used due to increase in the cost.
-Globalization, IT, internet and increased use of mobile devices for shopping all these are
affecting sales, marketing and consumer choices.
-Today consumers are well informed and make choices after researching everything. They
discuss their choices with the others and also share their views.
The millennial generation mostly likes to shop online and likes a personalized experience in
terms of shopping and customer service.
-Technology has disrupted several things and apart from improved production and supply chain,
it has also brought greater effectiveness to the sales and marketing of fashion products.
Thus, mainly the factors that will affect the industry most are:
• Ecommerce
• Automation
Environmental Factors
-Issues regarding recycling of the product have remained critical for the garment industry to help
keep the environment clean.
-Other such issues that affect industry are global warming and clearance of some natural
resources to produce the garments.
-Even the fashion brands are careful about their carbon footprint and are marketing themselves as
more environment friendly brands. They are investing in environment and sustainability and
using more environment friendly raw materials, packaging and operations.
-Several large fashion brands like Nike or H&M have formulated sustainability goals and are
working actively to achieve them. They are working in the direction of maximization of
productivity and minimization of carbon footprint.

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-Very strong impact of cotton crop on the environment.
Thus, mainly the factors that will affect the industry most are:
• Climate change
• Environment friendly
Legal Factors
-Legal challenges also abound in the fashion retail industry. Ethics and compliance are important
focus areas for the big brands and they are working actively in his direction.
-The fashion industry is a large employer and apart from the labour laws the other common laws
applicable in business also apply on it.
-Environmental laws have also grown tough and need to be complied with. There are other laws
related to international trade too that require compliance. However, legal compliance and an
ethical image can be beneficial for a fashion brand’s business.
Thus, mainly the factors that will affect the industry most are:
• Legal ethics
• Import-Export Laws
Out of the 12 factors which we listed, the three that will affect the most will be:
• Government policies
-Huge change
-Moderate change
• Ecommerce
-May Grow much more
-May not grow more
• Consumers attitude towards buying
-May change
-May not change

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• Scenario 1
➢ Huge change in government policies
➢ Ecommerce may grow much more
➢ Consumer attitude towards buying may not change
• Scenario 2
➢ Moderate change in Government policies
➢ Ecommerce may not grow more
➢ Consumer attitude towards buying may change
• Scenario 3
➢ Huge change in Government policies
➢ Ecommerce may grow much more
➢ Consumer attitude towards buying may change

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CHAPTER -11
COMPANY INFORMATION

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• Levis
-Caters for: Men, Women and Kids
-Product Range: Casual wear, formal wear, party and evening wear
-Men’s Collection: Jeans, pants & cargos, shorts, shirts, t-shirts & polos, sweaters, and
jackets
-Women’s Collection: Jeans, reversible jeans, shorts & capris, dresses & skirts, shirts &
blouses, t-shirts & tanks, and stylized tops
-Offerings for Kids: Jeans, t-shirts, shirts, knitwear and coats
-Accessories: Casual shoes, formal shoes, sandals, belts, caps, bags, wallets, and more
- A pair of Levi’s jeans is a must-have in wardrobe. Their extensive line of jeans of this
brand is known worldwide for their fabulous fit, sexy cut, and quality fabrics.
• Allen Solly
Caters for: Men, women and kids
Product Range: Casual, formal, sport, and evening wear
Men’s Collection: Casual shirts, trendy graphic t-shirts, polo tees, slim fit chino trousers,
casual denims, shorts, suits & blazers, sweatshirts, jackets
Women’s Collection: Printed tunics, sweatshirts, fashionable shirts & blouses, tees &
tops, stylized dresses, trousers & leggings, skirts, suits & blazers, jeans & jeggings, shorts
& capris, sweaters & cardigans, jackets & overcoats
• Park Avenue
Caters for: Men and Women
Product Range: Formal & casual wear, relaxed work wear, heritage wear, and evening
wear
Men’s Collection: Auto-fit formal shirts, casual shirts, t-shirts, polo tees, casual jackets,
evening suits, business trousers, inner wear & sleep wear
Women’s Collection: Formal & casual tops, shirts, jackets, party dresses, and winter
wears
Accessories: Formal, evening and fashion shoes (made of genuine leather) for men,
sunglasses, deodorants, men’s perfumes, air fresheners, neckties, socks, handkerchief set,
etc.
For sure no other brand can beat Park Avenue when it comes to formal wear segment. Be
it for a day at the work, family get together, corporate meeting or for some festive events,
this brand has an unbeatable collection of classic formal wears for all the occasions. Their
amazing range of perfumes and deodorants are also highly famous amongst youngsters
for their exotic fragrance.

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• Provogue
Caters for: Men and Women
Product Range: Casual, formal, party, and work wear
Men’s Collection: Shirts, sweaters & cardigans, t-shirts, polo tees, stylish jackets & coats,
suits, jeans, trousers & chinos, tracksuits, shorts, innerwear
Women’s Collection: Dresses, shirts & blouses, t-shirts & knitted tops, trousers, jeans,
shorts, and skirts
Accessories: Men’s footwear, watches, sunglasses, power deos, wallets, belts, and socks
This brand is all about quality, innovation and style. The vibrant colors, unique designs,
sharp cuts, perfect fit, and comfortable textures altogether make their clothing a favorite
among fashion lovers.
• Pepe Jeans
Caters for: Men and Women
Product Range: Casual, formal, work, and party wear
Men’s Collection: Jeans, coats & jackets, knit & sweatshirts, shirts, t-shirts & polos,
trousers & shorts, and swimwear
Women’s Collection: Dresses, tunics, tops, printed tees, skirts & shorts, slim jeans, coats
& jackets, knit & sweatshirts, shirts, trousers & jumpsuits, and swimwear
Accessories: Footwear, handbags, backpacks, wallets, sunglasses, and belts
The funky range of detailed denims by Pepe Jeans is all-time favorite among youngsters,
for its unmatched style and off beat look. Besides fashionable clothing lines for men and
women, the brand is also planning to bring in a comprehensive range of kids wears to
India very soon.
• Lee
Caters for: Men and Women
Product Range: Casual, formal, and party wear
Men’s Collection: Denims, shirts, t-shirts, trousers, sweaters, sweat shirts, jackets, and
blazers
Women’s Collection: Denims, non-denims, t-shirts, sweaters, sweat shirts, and jackets
Accessories: Bags, wallets, clutches and stylish belts
People simply love Lee for its authentic collections that fit and flatter the body from
every angle. Especially, the brand’s line of jeans is highly popular among youth, for their
durability and timeless style.

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• Wrangler
Caters for: Men and Women
Product Range: Casual, formal, and party wear
Men’s Collection: Slim fit jeans, denims, jackets, shirts, sweaters, v-neck printed
sweaters, sweatshirts, suits & blazers, polo t-shirts, tees, trousers, cargo pants, shorts
Women’s Collection: Tops & tunics, shirts, tees & polo, sweatshirts, cardigans &
pullovers, outwear & jackets, denims, skirts, trousers, jeggings, skirts, shorts & capris,
tanks and spagettis
Accessories: Wallets, belts, hats & caps, shoes and key chains
Many know Wrangler only for their stylish innovative denims, but the brand’s superb
collection of casual wear is also worth adding to wardrobe. They fit awesome and are
both comfortable and fashionable.
• Spykar
Caters for: Men and women
Product Range: Casual, formal, party, and evening wear
Men’s Collection: Authentic five pocket jeans, fashionable denims, cargos, chinos,
fatigues, loozers, jackets, sweaters, sweatshirts, tees, polo t-shirts, blazers, shirts, and
innerwear
Women’s Collection: Jeans, tops, tunics, capris, trousers, t-shirts, shirts, sweaters,
sweatshirts
Accessories: Eyewear, deodorants, perfumes, caps, bags, belts, wallets, footwear, socks
and more
This youthful apparel brand of India is known for keeping pace with the latest fashion
trends and for bringing the international touch to Indian wears. In fact all of its offerings
are designed with some of the best fits and designs that suit the Indian body type and
sensibility.
• Numero Uno
Caters for: Men and women
Product Range: Casual, formal, work wear and party wear
Men’s Collection: Jeans (slim fit, narrow fit, comfort fit, straight fit), t-shirts, shirts, polo
tees, jackets & blazers, trousers & chinos, shorts, sweaters and printed sweatshirts
Women’s Collection: Jeans, jeggings, shirts, jackets, and sweatshirts
Accessories: Fragrances, belts, bags, watches, shoes, sandals, and wallets
Another Indian fashion brand that is a hot favorite among trendy youngsters. Its dynamic
& vibrant product line is known for exuding style, attitude and comfort. Made with high-
quality fabrics in combination with unique exotic designs, Numero Uno wear is bound to
provide superior value for money.

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• Flying Machine
Caters for: Men and Women
Product Range: Casual, formal, and party wear
Men’s Collection: Casual shirts, jeans (skinny, slim, slim tapered, regular), jackets
(bomber, biker, sleeveless), tees & polos, chinos, cargos, joggers, t-shirts, sweaters (crew
neck, v neck, cardigans, turtle neck, shawl), and sweatshirts & hoodies
Women’s Collection: Trendy tops, t-shirts, shirts, short dresses, sweatshirts & hoodies,
sweaters, jeans (skinny, super skinny, jeggings), and trousers
Accessories: Sunglasses, bags, backpacks, and wallets
The awesome apparel collection from Flying Machine is crafted exclusively to satiate the
fashion hunger of modern men and women. The trendy cuts and irresistible styles of their
line of denims make them the “must-haves” for the fashion conscious youth of today.

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CHAPTER-12
PRODUCT MARKET
DESCRIPTION

79. 79
PLC is a set of business processes and supporting tools which help apparel industry to improve
the way they manage their product development. Products go through a series of stages
beginning with start-up or introduction of product followed by rapid growth, maturity or
saturation and finally the decline of demand. The time spans of stages of these products very
considerably across industries. These time spans vary from a few weeks or months (for apparel
and fashion goods) to years.
Levis Dockers Product Life Cycle
.
Introduction Stage
• Increasing investment in the required marketing efforts to launch Dockers
• Concentrated distribution in department stores and chains supported by retail-based
marketing, cooperative advertising, and sales promotion programs
• The advertising challenge was to build product and brand awareness for Levi’s Dockers
Through the multimedia channels
Growth Stage
• Seeking to retain its current customers base (baby boomers) while attracting new
customers

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• Additional Promotion Activities (e.g. gift with purchase programs)
• Enter new markets Dockers’ move into European markets
• Enter new segments By Attracting a younger and more style-conscious breed of customer
( e.g. Dockers Authentic brand)
• Emphasize product preference advertising Dockers to be seen as a way to be comfortable
and casual in any setting
Maturity Stage
• Dockers also expanded its product line with its women’s apparel collection, Dockers for
her
• Marketing a full line of clothing for boys, girls, kids under the Dockers brand
• Licensing Agreements, Dockers Home collection
• Win Competition By launching wrinkle-free Dockers
• E- Commerce Longest and most challenging MATURITY STAG
• Mobile pants that featured additional pockets for technological gadgets.
• Product innovation, Never Iron pants “straight from the dry-cleaner
Decline Stage
• Lower product sourcing costs and lower inventory markdowns led to increase in gross
profit
• Improve financial performance
• In 2005, Dockers introduced a new brand identity; logo, slogan, and advertising
campaign that helped it stem the losses from previous fiscal year.
Dockers continued to innovate and adapt new styles to keep the product away from

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CHAPTER -13
PORTERS FIVE FORCE MODEL
ON APPAREL INDUSTRY

82. 82
The apparel industry has grown highly competitive in the 21st century. While there are a large
number of brands, several of them provide relatively similar products. The market has grown
densely populated with fashion brands and still new brands can enter the market with new
concepts. There are several factors including the fluctuations in the global economy, rise of the
digital, technology, demand for fast fashion that are affecting the fashion retail market. Power is
in the hands of the customers in this era and therefore the focus of the brands is also on crafting a
better consumer experience. Thus, there are several forces affecting the market position in this
industry.
Bargaining power of customers:
Moderate to high
• Domestic customers - Low for premium and branded product segments. Global
customers- High due to presence of alternate low cost sourcing destinations.
• The first important force is the bargaining ability of buyers, who can choose to push
down prices, not buy products, or switch retailers’ .In this, buyer power is a relatively
large force.
• While clothes shoppers are typically individuals with little to none direct bargaining
power (as compared to huge companies, buying in bulk, who might be the main clients in
other industries), they have many alternative locations to shop for apparel and little

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incentive to stay with one particular company, giving them plenty of indirect bargaining
power.
• Brands employ several types of customer retention strategies including discounts and
memberships. so, overall the buying power of the customers is a significant force in the
apparel industry. Even if the customers do not influence a brand’s position directly, they
do son indirectly. Brands are in a race to serve and influence the customers in the best
possible manner.
Bargaining power of suppliers:
Small to moderate
• Suppliers are not a significant force in the apparel industry, very little action goes on at
the back end. Mostly the suppliers are from the third world countries and have to follow
the rules set by the buying brands.
• Brands have the purchasing power and can easily switch from one supplier to another.
Brands use their financial clout to influence prices. So, overall, the suppliers have very
little control and therefore their bargaining power is insignificant.
• Most apparel companies source their products from third world manufacturers who
receive just fractions of the profit. Suppliers have little control over the fashion industry
as, unfortunately, they are dispensable and can always be swapped out. As a result, input
prices for this industry are relatively low and will stay there until the global development
gap closes up significantly.
Threat of new entrants:
Small to High
• Threat of new entrants is a somewhat small force in the apparel industry. As already
mentioned, it is a densely populated industry and for a new brand to find success, it must
use a significant level of differentiation. Still, brands can find unique ways to grow
popular and acquire success. Apart from infrastructure, there is investment in marketing,
distribution chain and human resources. So, the threat of new entrants is not a significant
force in this industry.
• However, new entries might find unique ways to popularize their own products (which
might not even be particularly special), and as such build novel brands — perhaps
through clever use of social media. The apparel industry in its current state is ‘high risk,
high reward’ for new entrants.

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• Barriers for new entrants can be: Superior technology, skilled and unskilled labour,
distribution network, access to global customers.
•
• But with E-Commerce the threat is becoming challenging for the existing players in the
industry.
Threat of substitutes:
Low to moderate
• The threat of substitutes comes from inside the industry. Since the competition is intense,
no brand can stay assured that it will keep selling and remains celebrity without focusing
on customers. Every brand has several competitors and the space is continuously getting
limited.
• From the high end to the low end segment, brands have populated the fashion landscape.
So, even if cloths in general do not have a substitute, brands have many. Even for those
who cannot afford luxury brands there are substitutes that can make high end styles
available at lower prices. For example, Zara.
• This force is almost negligible — all ‘substitution’ in the fashion industry is really just
competition.
• Also, these days it is all about breaking the rules, one can wear fusion at every occasion,
now an occasion is not just limited to a single type of apparel.
Competitive Rivalry in the industry:
High
• Very fragmented industry. Competition from other low cost producing nations is likely to
intensify.
• The fashion retail industry is remarkable for the intense level of competitive rivalry in it.
There are a large number of brands with similar product offerings. This makes the
competitive rivalry intense. However, some brands also drive loyalty based on features
and quality. Fast fashion is an emerging area.
• There are large numbers of retailers who sell very similar products, but there’s also the
concept of brands, which allow some companies to sell apparel for ridiculous rates.
Nowadays there is little innovation in this space, so the market is quickly becoming
saturated with very similar products
• Still, the race for winning customers has gotten so tough that there is pretty little space
for the new comers. Overall, the competitive rivalry is a strong force in this industry.
brands make use of discounts, offers and marketing to overcome this force.

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CHAPTER -14
OTHER STRATEGIC MODELS

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BCG Matrix
H&M

87. 87
Strategic Group Mapping
Brands Price Coverage
Levi’s 299-5999 400
Pepe 599-6499 103
Allen Solly 799-9999 63
Lee 349-4999 56
Provogue 699-5499 50

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Key Success Factors
Fashion And Pricing-
Providing fashion at very competitive prices is a major driver of success. It does not compromise
fashion for price or vice versa. Providing apparel that is beyond normal pricing levels as enabled
the chain to grow rapidly both within the landmark group and within India. Part of offering good
fashion is localising the styling.
The Customer Experience
Customer needs and expectations evolve their exposure to international travel, media, the
internet, etc. Today ,the Indian consumer expects better experience overall
• Availability of apparel: The consumer wants sharply priced , fashionable apparel to
expand their wardrobe both at workplace and at home. Customer no longer want to dress
up for work, they also want to look good at home.
• Store Experience : From the time a consumer enters the store to when he leaves, he must
have a good experience across several touch points that include: Trial room,| Intracting
with staff,| after sales experience| billing at the POS| Store ambience.
Freshness of Category
Freshness takes into account new product promotions ,new design, new colors , new styling,
etc. Keeping fashion exciting helps engage and retain customers, Result in sales , generates
repeat traffic etc.
Long term Business Model
Participants need to build a sustainable business model given that the gestation period for
success in the retail sector is long, Sustainable product pricing, offering products that imply
longetivity, expanding operations in a calibrated but determined manner etc. are some of the
ways in which retailers can convey their commitment to building a long term presence .

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CHAPTER - 15
FINANCIAL ANALYSIS OF APPAREL
INDUSTRY

90. 90
Dupont Analysis
Allen Solly
Description Mar 2017 Mar 2016 Mar 2015 Mar 2014 Mar 2013 Mar 2012 Mar 2011
PBIT / Sales 0.81 -1.82 -12.33 -11.30 -5.36 10.27 0.29
Sales / Total Assets 1,208.78 1,247.48 493.67 374.80 273.66 0 0
Debt to Assets -285.62 -321.17 -125.07 -123.82 -415.22 213.22 1,422.65
ROA (After Interest) 5.76 -17.62 -49.45 -74.89 0.00 769.03 0.00
Provogue
Description Mar 2017 Mar 2016 Mar 2015 Mar 2014 Mar 2013 Mar 2012 Mar 2011
PBIT / Sales -84.86 -45.76 -13.77 0.18 4.78 4.86 7.62
Sales / Total Assets 1,713.49 2,599.96 2,199.79 1,684.84 1,197.13 1,071.84 899.02
Debt to Assets 121.34 101.94 62.20 53.34 56.19 62.27 34.27
ROA (After Interest) -71.39 -49.76 -14.26 0.17 2.32 3.90 4.65
Wrangler
Description Mar 2016 Mar 2015 Mar 2014 Mar 2013 Mar 2012 Mar 2011
PBIT / Sales 12.61 15.30 15.41 8.95 1.27 3.57
Sales / Total Assets 8,665.32 8,189.72 4,605.44 2,694.23 1,778.76 989.95
Debt to Assets 86.04 93.57 106.86 112.04 206.62 -520.33
ROA (After Interest) 16.50 21.37 36.98 38.17 10.41 0.00
Spykar
Description Mar 2016 Mar 2015 Mar 2014 Mar 2013 Mar 2012 Mar 2011
PBIT / Sales 4.35 0.10 4.50 0.28 -9.41 -9.89
Sales / Total Assets 4,426.52 3,163.25 2,300.36 1,932.44 866.78 271.19
Debt to Assets 431.38 433.95 542.80 797.77 887.02 0.00
ROA (After Interest) 28.89 0.80 65.17 5.75 -400.12 -185.34

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Nike
Description Mar 2016 Mar 2015 Mar 2014 Mar 2013 May 2012 May 2011
PBIT / Sales -22.80 -12.95 -7.82 -22.61 -23.41 -20.46
Sales / Total Assets 3,068.79 0.00 0.00 9,843.00 0.00 0.00
Debt to Assets -67.77 -83.58 -69.23 -58.40 -60.53 -169.75
ROA (After Interest) 0.00 0.00 0.00 0.00 0.00 0.00

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Financial Strength

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CHAPTER-16
OT ANALYSIS OF APPAREL
INDUSTRY

94. 94
Opportunities:
• Growth rate of Domestic Textile Industry is 6-8% per annum.
• Large, Potential Domestic and International Market.
• Product development and Diversification to cater global needs.
• Elimination of Quota Restriction leads to greater Market Development.
• Market is gradually shifting towards Branded Readymade Garment.
• Increased Disposable Income and Purchasing Power of Indian Customer opens New
Market Development.
• Emerging Retail Industry and Malls provide huge opportunities for the Apparel,
Handicraft and other segments of the industry.
• Greater Investment and FDI opportunities are available.
Threats:
• Competition from other developing countries, especially China.
• Continuous Quality Improvement is need of the hour as there are different demand
patterns all over the world.
• Elimination of Quota system will lead to fluctuations in Export Demand.
• Threat for Traditional Market for Power loom and Handloom Products and forcing
them for product diversification.
• Geographical Disadvantages.
• International labour and Environmental Laws.
• To balance the demand and supply.
• To make balance between price and quality.

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SWOT Analysis of Levis
Strengths
1.Strong Brand Name and popular top-of-the-mind brand
2. Expertise in Jeans Industry
3. Distribution Channels and Global Outsourcing
4.Finance and Access to International Capital
5. Has over 470 self operated stored globally managed by
16000+ employees
6.Levi’s marketing includes retro popular songs in its TVC
ad campaigns
7.Over 60 and 25 manufacturing plants in US and abroad
respectively
Weaknesses
1.High Pressures of Brand Protection
2. Increasing competition means limited scope for growth
Opportunities
1.Growing casual wear market
2. Low manufacturing and production costs in various
international markets
3. Increasing acceptability of western wear across the world
Threats
1.Fast changing consumer tastes
2.Lack of protection of property rights in some countries
like China
3.Increasing Competition and Product Substitution

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SWOT Analysis Of H&M
Strengths
1. They are the one of the largest global clothing retailer
2. They have about 2300 stores in approx 45 countries and
around 95000 people employed under them
3. The store offers quality and trendy clothing at affordable
price, we can say designer clothes at department store prices.
4. Their overall delivery time is very low, it takes only 12
weeks
for their products to come from the design stage
to the retailer phase.
5. Guest designers coming in for different lines in the store.
6. They also keep the prices affordable by using few
middle-men and buying large volumes cost consciously
7. They have been associated with celebrities and designers
8.They are present in many complimentary businesses which
offers them better control and flexibility
Weaknesses
1.Buying large volumes could lead to overstocking and later
on lead to lowering of the already affordable prices
2.Also their target customer base is highly affected by the
changing macro -economic conditions
3.They have put in a lot of capital and maintenance fee for all
the different types of machines required to produce clothes
for each target segment
Opportunities
1.Online shopping is gaining a lot of importance
2.Emerging economies will support H & M’s expansion plans
3.They are well positioned to tap the niche organic apparel
market
Threats
1. Weak competitive situation as the prominence of value
retailers and premium luxury brands increases

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2.Their newest business line home-ware has not been able to
click in Europe and hence is leading to lowering sales
3.Unemployment is also continuously pressurizing their
target segment to discretionary spending

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CHAPTER-17
PROBLEM IDENTIFCATION AND
ANALYSIS
Industry Challenges

99. 99
The Apparel Industry is growing at a very high rate but still there are some barriers, which are
hindering the growth of this industry. Some of them are:
➢ Though the demand for garments is increasing day by day but the production rate has still
not been able to match with the ever rising demand. More production facilities are needed
to meet the demand.
➢ Most of the raw material needed for apparel manufacturing is available in the developing
or under developed countries and these countries do not have enough resources and
manpower to explore them. These countries also do not have finance to set up factories
for clothing and garment production.
➢ Globalization has helped the trade in many ways but due to globalization the competition
has increased and so it is not very easy for the firms to cope up with so much
competition, as they have to meet the deadlines and also maintain quality.
➢ The importers of developed economies are facing very stiff competition as countries like
China are producing good quality products in low prices due to availability of very cheap
labour.
➢ Some trade laws still are very much in favor of developed countries and they need to be
reviewed, to facilitate imports from the developing countries.
As apparel industry is fashion driven, and fashion keeps changing, the firms have to cope with
the changing apparel industry trends and still complete orders in time. Thus they usually have to
work under pressure.

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CHAPTER- 18
FUTURE OUTLOOK AND
CONCLUSION
Future Outlook

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The global apparel manufacturing industry is expected to grow more than ever in times to come.
According to an estimate, the global apparel industry will reach a value of US $ 1,781.7 billion
by 2010.
The apparel manufacturers are now adopting new techniques to increase their trade. New
business models and competitive strategies are used to enhance profits and growth. The
consumer is more aware and more demanding with the development of media like television and
Internet. They have more choices in quality, price and design. This is the reason why apparel
chains all over the world are focussing more on improving the quality of the product and
offering in varied range of fashion designs.
Apparel manufacturers are developing methods to keep up with the pace of change like offering
on wholesale prices to survive in the global competition.
Conclusion

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In duration of our project we imbibed many things to which we were not much exposed before,
right from choosing the industry to analyzing it is in-depth manner. We studied how Global
scenario in Industry is different from Indian Industry.
We collected and studied other data from the Industry like its key issues, players information and
their market share in the industry as well, out of which we evaluated the Industry and its players
like H&M, Levis, Allen Solly, Pepe, Provogue, Lee by using various strategic models.
It proved to be of great leaning, using and applying the models which we studied, in the Industry
analysis.
Annexure

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Case Studies
Voonik
Voonik is a fashion marketplace for women, with a focus on personalization. Founded in
2013 by Sujayath Ali and Navaneetha Krishnan, Voonik app handpicks clothes for users
based on their body type, skin tone, and budget and style preferences.
• Working and Revenue Model

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Voonik has its marketplace where retail stores register and showcase their products. In
simple, it brings multiple online stores into a single cart. It has 1000 plus brands with 5
lakh products from more than 100 stores like Jabong, Snapdeal, Fashionara,
Fashionandyou, Yepme, Zovi etc.
Voonik charges the brand or the seller a 15 percent commission on every sale. It does its
deliveries with a third party logistic partner.
• Technology behind Voonik
Voonik runs their service as a ‘personalization-on-steroids platform’. Their image search
technology is being developed by Mad Street Den an artificial intelligence and computer
vision startup based in Chennai which has built a cloud-based platform MADStack.
• Marketing and Brand Strategy
Voonik currently relies on Facebook to get Majority of its traffic. It also uses some apps
like Laddu which pays users on installing their app. Press releases now and then too
helped this startup gain some popularity among the people who have an eye for trendy
fashion. ‘The Pitch’ a program hosted by Bloomberg TV also helped them to show case
their product and was helpful in getting them their initial funding from Seed fund.
For a social shopping platform, Voonik is itself quite social with an active presence on
Facebook (435,632 likes), Instagram (10K followers) and Google+ (2,206 followers and
404,195 views).
• Mobile App Strategy
Voonik launched its mobile app last year and rapidly grew to 1M+ downloads and recently
achieved a rating of 4.2 on the Google Play Store. They took their app ratings seriously and
reached out to customers to troubleshoot in case of any feedback or negative reviews.
• TV Commercial:

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Voonik has rolled out its first ever TVC featuring Bollywood director Farah Khan, where it
emphasized on the pleasures of being fashionable every day. Voonik aim is to invite women
to embrace fashion, every day. Voonik has launched the campaign digitally with its hashtag
“#HarDinFashionKaro“.
• Future Plans
This company is in big plans for taking on board offline boutiques and launching chat-based
features. At present, the app is aimed at giving recommendations to the customers but are not
able to chat with the stylists.
How H&M Made It To The Top ?
The clothing retailer H&M was founded in 1947, but during the last decade the company
has made it to the top with $20.3 billion yearly sales.
Forbes now lists H&M #31 in its brand value Top 100, along with Apple and Coca-Cola
• Price Economy with Short Lead Times
• H&M has 3500 stores in 55 countries, with a huge supply network, warehousing and
logistics to handle.
• H&M’s operations are built around a team of 100 designers, who work closely with a
baffling number of companies on the production side – having no factories of its own.
• H&M cooperates with over 700 suppliers, 60 pattern makers and 20 worldwide
production centres.
• Though it’s vital to follow fashion trends, the clothing retailer’s success is bound to price
economy. This is where inventory management strategy steps in.

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H&M manufactures 80% of its retail inventory in advance and, during the year,
introduces the remaining 20%based on present-day market trends.
• Affordability is reached with strong supplier relationships, paired with manufacturing
strategies that reduce lead times.
• H&M has 30 international supply partners, and a central inventory management software
system.
• Adopting a modern IT infrastructure has brought the average lead times down by 15-
20%.
• Flexibility and short lead times reduce the risk of buying the wrong items. This allows
H&M stores to restock quickly with the bestselling products at economical prices.

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Bibliography
Noopur Tandon, **E Eswara Reddy
Research Scholar, School of Law and Management studies, Singhania University,
Rajasthan, Shrusti College of management studies, Bangalore, Karnataka
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