Prevailing Trends In
Prevailing Trends In Indian Readymade Garment Industry
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
• 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
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
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
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
• 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
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.
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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