Domestic technical textiles Industry Segment-wise consumption of ...

Clothing labels come in a variety of styles. The product is available in the following formats:
• Continuous tape in Roll Form
• Cut Seal
• Cut Fold in End fold, Centrefold and Mitre fold
• Filled / Stuffed labels
• Die-cut / Laser cut labels
• Ready-to –stick labels (backside double adhesive tape)
Market dynamics and key growth drivers
The demand for labels is majorly governed by the demand of Apparel, home furnishing, stuffed toys
and soft luggage. Thus, the primary growth driver for the labels is the sale of these products.
Per capita disposable income of Indians during 2002 to 2007 has surged at a CAGR of nearly 14%
leading to increase in consumerism. Moreover, the mushrooming of shopping malls has also worked
in favour resulting in growth of various consumer products. India’s total garment production in
FY2006 was estimated at 7.85 billion pieces; the domestic clothing consumption registered a 5-year
CAGR of 6% (Source: ICRA Industry Comment – Textiles & Clothing). Likewise, the domestic
consumption of home furnishing has also registered a growth of 6%. The stuffed toys market and soft
luggage market has also seen an upsurge. Industry estimates suggest that the stuffed toys is growing at
over 25 per cent annually whereas the soft luggage market is expected to grow at 20%. Since labels
play an important role in the marketing of these products, consumption of labels is expected to grow
in line with the growth in these sectors.
Market size of labels and future forecast
Apparels including hosiery garments and home furnishing sectors account for 80 – 85% of the
consumption of labels. The number of labels per garment/home furnishing varies from one to four.
Considering the label requirement of various product categories i.e. shirts, trousers, uniforms, inner
wear, children wear, skirts, t-shirts, bed sheet, towel etc. the average consumption of label per product
is computed as 1.5 labels/garment and 1 label per home furnishing product. The average price per
label is around 55 - 60 paise.
Usage of labels in Apparel
Particulars
Average label per garment 1.6
Average label per home furnishing product 1