FASHION BUSINESS

Amity School of Fashion Technology
Presented By
VISHWA VARUN
Economical Importance in Fashion Business

Fashion industry
What we mean when we use the term fashion industry
 Fashion is, Fashion is a popular style in a particular time or practice
by definition, change.
 Success in fashion comes with the ability to grasp and recreate in
clothes and accessories the ethereal spirit of the time and voluble
desires of customers.
 Fashion adds an important design dimension to textiles or leather
artefacts, which is capable of providing a continual and varied flow of
new products

The factories manufacture clothes,
but consumers buy
emotions, hope and dreams
Fiber -> Yarn ->Fabric -> Apparel ->Consumer
Steps used in manufacturing a garment starts from Fiber, end product reached to consumer

Nature of Fashion Market
Fashion retail is typically a consumer goods market.
It is characterized by very short product life, fickle consumer preferences,
numerous competitors, relatively easy entry and exit, and a myriad of
manufacturing, marketing and retail alternatives.
Over here, we will mainly make references to U.S and Europe where the
fashion capitals - New York, Milan, London and Paris.
One of the reasons for their leading role in the apparel sector is that they are
able to acquire information on future trends in color, theme and styles in
advance.

Couture Wear :
Couture wears are exclusively tailored by in-house designers and are
produced in limited numbers of expensive, high quality garments.
Couture houses are organized according to long-established principles, with
the couturier (or designer) providing an identity and direction, supported
by assistant designers and a head of the work room.
Couture houses are regulated by national organizations which ensure that
members meet stringent design, manufacturing and commercial
regulations. These regulations make couture garments affordable by very
few consumers.

Ready-to-Wear :
As such, to be commercially sustainable, the fashion industry provides less
wealthy consumers with cheaper garments.
Thereafter, manufacturers were making garments to be specifically sold in
such outlets, facilitated by their new ability to produce relatively cheap and
high quality garments.
RTW acquired greater significance during the 1960's and afterward as the
division between it and couture became blurred. Designers were able
produced garments which were distinctive and cutting-edge while
remaining relatively affordable.

Fashion vs Luxury
A fashionable good can be a luxury good, but not necessarily is so. Very often it is not !
MASS BRAND
PREMIUM BRAND
LUXURY BRAND
accounts for
a very small share
of the marketThe high-end
luxury market,
APPAREL MARKET BY PRICE-SEGMENT
Every one can buy
such products

Increasing
uncertainty
and risk
Medium
to high
High
very
high
RISK
VarietyVariety and
the low predictabilitypredictability
of factors that make
a new product
a best sellerbest seller or a worst-sellerworst-seller
generates a risk far greaterrisk far greater
in fashion
than in other industries
RISK IN FASHION BUSINESS

Fashion Business of India
Export Business
Retail Business
In this presentation I'm covering retail business of apparel industry

In emerging markets around the world there has been a close linkage
between economic development
Rise in per capita income
Growing consumerism
Proliferation of branded products
Retail modernization
Fashion Retail Business in India
Consumer awareness increases and the proliferation of brands leads to
increase in retail space. Thus, retailing is a part of the development proces.

The retail sector in India accounts for 22 per cent of the country's gross
domestic product (GDP)and contributes about 8 per cent to the total
employment.
India continues to be among the most attractive investment propositions for
global retailers.
India has emerged as the fifth most favorable destination for international
retailers, outpacing the UAE, Russia, Indonesia and Saudi Arabia.

Classification of Indian Retail Industry
Retailing industry can be classified into two classes:
- Organized retailing
- Unorganized retailing
Major Organized Retail Segments
o Fashion & Lifestyle
o Accessories
o Furniture
o Food
o Consumer durable
o Leisure and entertainment
o Health and Beauty Cosmetics
o Telecom
Indian retail market, 8% constitutes the organized
retail segment which is estimated
to grow at a rate of almost 30% by 2015. Clothing &
Apparel make up almost a third of the
organized retail segment, followed by Food &
Grocery and Consumer Electronics

Apparel Retail Industry
The Indian Apparel Industry has an overwhelming presence in the economic
life of the country. It is one of the earliest industries to come into existence
in the country.
The sector has a unique position as a self-reliant industry, from the
production of raw materials to the delivery of end products, with
considerable value-addition at every stage of processing Apart from
providing one of the basic necessities of life, the apparel industry also plays
a pivotal role through its contribution to industrial output, employment
generation, and the export earnings of the country.
Currently, it contributes about 14 percent to industrial production, 4 percent
to the GDP, and 17 percent to the country’s export earnings. It provides
direct employment to over 35 million people.

Market Segmentation By Users Category
Men's wear:
Men’s wear market in India fastest growing apparel segment The entire
apparel industry ,including domestic and exports,is pegged at Rs 3,270 billion
and is expected to grow by 11% to Rs 10,320 billion by 2020.
Women’s wear:
Women’s formal wear and ethnic wear markets are still ruled by
unorganized players. With more women expected to enter corporate world,
both these segments are good opportunities because of the market size.
Kid’s wear:
Kids wear is a major category with few established players – viz., Lilliput,
Gini and Jony, Catmoss, Benetton

Market Segmentation By Price
Low-end market:
Volume driven, products are mostly unbranded and dominated by large
number of manufacturers, mostly regional or even local players.
Mid-range market:
Quality products. Manufacturers large and medium.
High-end market:
Premium and super premium product categories. Dominated by MNC and
major Indian manufacturers.

Key Players in Fashion Business
The apparel retail sector is experiencing the huge development and making
an increased contribution to GDP, it requires a better and exclusive
regulatory framework to sustain the impressive overall growth.
Competition in the retail sector is getting stiffer in the nation as many big
players both national and international are testing and applying different
retail plans in the market .
Entry by fresh players is still at a promising stage.

MADURA FASHION AND LIFESTYLE
Madura Fashion & Lifestyle, a division of Aditya Birla Nuvo Ltd, is one of
India’s leading branded apparel companies and a premium lifestyle player
in the retail sector.
After consolidating its market leadership with its own brands, it introduced
premier international labels, enabling Indian consumers to buy the most
prestigious global fashion wear and accessories within the country.
Madura Fashion & Lifestyle is defined by its brands — Louis Philippe, Van
Heusen, Allen Solly,Peter England and People — that personify style,
attitude, luxury and comfort.

RAYMOND APPAREL
A 100% subsidiary of Raymond Limited, Raymond Apparel Ltd. (RAL) ranks
amongst India's largest and most respected apparel companies.
We bring to our customers the best of fabric and style through some of the
country’s most prestigious brands –Raymond Premium Apparel, Park-
Avenue, Parx and Notting Hill.
Crossing the gender divide two of our brands, Park Avenue launched the
Western Women's wear collections.
'Park Avenue Woman'- A complete range of Premium Business Wear for
women is designed specially for the working women professionals of today.

ARVIND LIFESTYLE BRANDS
A subsidiary of Arvind is the other largest player in apparel retailing space of
India it has portfolio of 1 international brands and 12 its own brands.
It also now hold Ed- hardy , which is projected to be launched in 2013 with
new global product and different pricing strategies.
Apart from these above mentioned above players the other which also enjoy
a good position in the Indian apparel retail market includes, Kouton retail
India, Indus- League clothing, Zodiac Clothing co.

FOREIGN DIRECT INVESTMENT IN RETAIL
India has liberalized its single brand retail industry to permit 100% foreign
investment, with regulatory issues and legal structures pertinent to
establish operations in this new dynamic market.
India’s retail industry is estimated to be worth approximately US$411.28
billion and is still growing, expected to reach US$804.06 billion in 2015.
51 % FDI in multi brand retail business.

Impact of FDI in Indian Apparel Industry
No Impact Demand:
From the fashion apparel demand perspective, India has emerged as one
of the most attractive destinations for American and European brands in
the last 10 years and will continue to hold promise for the next 10 years,
irrespective of the policy on FDI.
Apparel, being a more brand driven category than, say, food & groceries.
It has already seen many international brands enter India over the past 15
years despite the restrictions in the FDI policy in single-brand retail with
the allowing of 100% FDI in single brand retail.

Industry as a whole will benefit:
From the industry’s perspective, allowing up to 100% FDI in single-brand
retail and 51% FDI in multi-brand retail seems like a favorable proposition,
since a large part of the fashion industry.
Supply consists of SMEs and they will surely benefit if more international
brands make a foray into India.
Many foreign brands present in India have, over the years, increased their
sourcing from India as this gives them the benefit of shorter lead times and
lower costs.
Many brands have also set up their own back-end manufacturing
infrastructure.

CONCERNS OF APPAREL BUSINESS AFTER FDI
The Main concern that is common among the cynic is that large retailers in
apparel like zara,Raymond, Madura fashion and lifestyle will under-price
their products to wean away customers from smaller Indian retailers,
ultimately leading to the exit of smaller retailers from the Indian market.
In larger cities, where the foreign retailers would set up shop, their practice
of offering rebates and discounts which is already practiced by retailers in
India like cantabil, which offers discounts throughout the year, may be
examined by CCI and prohibited if they are considered ‘unfair’ or
‘discriminatory’.

The economic importance of the apparel retailing sector, and the many
changes that have occurred within it, implies that this sector is a prime area
for competition enquiries.
In recent years, there have been some enquiries by the competition
commission of India into apparel market behaviour that has been subjected
to inquiries into acquisitions, combinations and their competition.
Apparel sector is growing at a very fast pace with growing Indian economy.
Many international players either have already plunged into Indian market
or plan to do so in apparel sector especially after the recent changes the
government investment policies.
Economic Importance

End of presentation
Thank You !

FASHION BUSINESS

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