Prevailing Trends In Indian Readymade Garment ... - Fibre2fashion

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Prevailing Trends In Indian Readymade Garment ... - Fibre2fashion

Prevailing Trends In

Indian Readymade

Garment Industry

By: Fibre2Fashion.Com


Prevailing Trends In Indian Readymade Garment Industry

By: Fibre2Fashion.Com

Textile industry in India is widely comprehensive, integrating whole range of raw material to

finished product that includes fibre manufacturing, spinning, knitting and weaving, and garment

manufacture. Industry provides almost every single aspect:

• Raw material: cotton, linen, wool, silk and

manmade fibers like viscose, polyester,

polypropeylene and acrylic. Indian companies

have marked presence in even non-traditional

segments.

• Fabric production: suiting-shirting, dress

material, fabrics for shorts and trousers, denim,

hosiery, fleece flats and woolen knits, technical

fabrics and so on...

• Apparel production: Formalwear, casual

wear, active sportswear, traditional wear, under

garments, outerwear, kids wear, and you name

– it produces…

• Made-ups production: A wide range of bedding, towels, bath, table mats/linens, kitchen

accessories and more...

Additionally, to aid above all there are well established infrastructure, multi-benefited

governmental, political and regulatory system that would lure foreign investors.

In recent years, the readymade garment segment has seen vertical growth. Accounting nearly

Rs. 20,000 crores, this industry is growing at the rate of 20 percent, with massive visibility and

consideration margins. The largest segment for the readymade garment segment includes the

age-group of 16-35 that is very brand conscious and gives priority to high quality. Branded

readymade garments account over 21 percent of the readymade garment industry.

Overview – Indian Ready Made Apparel Market

Despite substantial growth, comparing to the international readymade

garment market of nearly 183mn USD, the Indian readymade

garment market is still in a budding phase. Due to the higher the

introduction cost of brand in India for the foreign players, domestic

players have no fear of any outside competition. The main obstacle to

the organized players is the huge unorganized scenario of the

market. In a move to compete, the organized players have rolled out

their own strategy of standardizing the goods.

The brands introduced by these major textile players hold much

intrinsic power and high on quality and pricing factors. They present

the inheritance and constancy in the garment piece.

Siyaram's is venturing into readymade garment to grip the

continuously changing fashion trends. It is becoming a prominent

designer of men’s readymade garments and accessories from fabric manufacturer. The two major

unique selling points of the recently launched Siyaram's brand, Monday to Sunday Dressing

would be the widespread 30,000 retail outlets, where it is selling fabrics and second, the fabric

quality that Siyaram's has, which guarantees that the buyer gets the high quality at a cheaper

price.


In accordance of its venture into men's readymade clothing line, Siyaram's Monday to Sunday

Dressing would include casuals, semi-formals, formals, club wear in the middle and premium

segments, targeting the youth. At first the Monday to Sunday Dressing line would be introduced in

Southern and Western India, and would be sold through its retail outlets.

The leader in the suiting segment, S. Kumars Nationwide Limited (SKNL) is the newest to join the

rat race. It has launched a brand, "Belmonte” the exclusivity of the brand is that it is only brand in

the economy section, which brings both fabric and readymade garments under single label. The

brand has been targeted towards the young group. The brand offers a wide range style with

perfect fitting.

The other growing strategy major textile players

adapted is ‘Acquisition’. Many of companies have

used this strategy to dive into readymade garment

segment. Raymond's acquired ColorpIus to jump in

casual-wear, adding brands like Raymond’s, Parx

and Park Avenue. Opting the similar strategy, Indian

Rayon acquired garments division of Madura Coats,

“Madura Garments” and entered the luring apparels

market with the successful brands like Van Heusen,

Allen Solly, Peter England and Louis Philippe. Textile

leader, Bombay Dyeing also gets hold of Proline to

dive in the sportswear segment, as well as adding

Vivaldi range to its formal menswear.

The above initiatives taken by the major brands depicts that the textile players now started opting

strategies to mark their presence in the readymade garment segment. Their sheer benefits laze in

substantial production capacities, which can launch new products in minimum lead-time, offering

high quality.

Despite the smaller players in the unorganized market are in much more advantageous situation,

in the long run they might loose out. The following are few problems faced by smaller players:

• Smaller Market: There few cities and

towns that they can concentrate on, since

these cities holds about 50 percent of the

Sec A&B of population that have a

disposable income. As a result, very few

opportunities are there for smaller players.

• Limited Capacities: The restriction that

these smaller players have is that they

cannot emerge beyond a definite level.

Additionally, inadequate logistics and

improper supply chain managements

created huge problems for the smaller

players.

Inadequate Logistic & Strength: For advertising and brand building, these smaller

players are forced to extend their reach geographically, which makes supply chain

management more complex. To match with increasing demand in competitive markets,

stress on producing volumes also increases. To sustain existence these players will have

to inject in more investments to their businesses in the areas of designing capabilities,

brand making and retailing.

Insufficient Funds: Funds will be a key restraint for the smaller players. Funds have to

be spawned rapidly in a massively capital demanding market that is seeing huge volumes

of growth.


As per the industry forecasters, the textile majors are planning to take hold on the readymade

garment market by entering into complete entire value chain. Players that are not making fabrics

for kidswear and sportswear, may start producing the same to enter this segment.

The suiting brands are also picking up the trend, with the

integrating fabric and readymade garment under the single

brand. S Kumar's Nationwide Limited takes lead with

introducing Belmonte brand in both fabric and readymade

garment apparel. Other players like Mayur Suitings and Donear

are also planning to enter in the readymade garment market.

Arvind Mills is planning with the usual fabric and readymade

garment apparel strategy in the men's casualwear segment.

Apart from the above-mentioned strategies, there is one more

initiative to rule out in the readymade market that is “foreign

collaborations”. Textile Company based in Rajasthan,

Banswara Syntex shake hands with French readymade

apparels major Carreman. It is a joint venture initiative with

Carreman Michel Thierry. The joint venture company is called

“Carreman Fabrics India”.

Mr. Dwarka Das Agarwal ventured in the luring exclusive menswear segment in 1998, with casual

brand TNG. He sensed the global trend of relaxed cotton casuals was in fashion ever then. Many

brands, such as Blackberrys, Freelook, Biba, Stori, Essence, Moustache, Natalia, Shapes, Ruff

Kids, Koutons, LFC, Upper Class etc. are performing well in cut throat competition in the ready

made garment. A Hyderabad based player, Priyadarshini Spinning foray the readymade garment

segment by establishing a shirt manufacturing unit at the Garment Park in Hyderabad. It is also

collaborating with local and international players for marketing its shirts range.

Creation and focusing in the value chain strengthens the smaller players. The main factors where

the brands need more concentration are designing, production, quality and merchandising. But,

the designing is the most significant of the value chain, which requires maximum focus. The

merchandising is noteworthy factor stage for the smaller players, as involvement, creation and

fabric selection adds value to the creation. The retailing is also an important factor for the smaller

players. They may face problem if their merchandize remain for long on retail shelves, since the

value of the fashion drops, resulting increase in inventory costs.

Conclusion:

Today, the buyers of ready made garment segment are aware of the running trends, and demand

the newest in fashion and products at a reasonable cost. At the front position of this evolution are

the smaller players, which private labels that are thoroughly transforming the dressing way of

men, women and children. With the supply chain limitations eased, organization in real estate

markets, and rationale tax structure, the readymade garment segment has become more

lucrative and it is anticipated that the readymade garment segment will be the main segment in

the next five years.

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