Indian Apparel Industry

w.r.t.MENSWEAR

Fashion is all about uncertainty. It thrives on the X-factor. Uncertainty and ambiguity makes designing clothes for these emerging markets more challenging and exciting, as there is no precedent for reference. Fashion’s cyclical nature makes it fickle, yet at the same time, identity defining. Men are considered a conservative gender by fashionistas and this is more so in India. “Men’s fashion is something of an enigma at times.. it seems simple – just don pants, a button down shirt.. and the look is ready.” However, menswear fashion today is the fastest growing segment.

Indian Apparel Industry The Indian apparel market has demonstrated resilience and growth in an

environment characterized by slow economic growth. The domestic apparel market, which was worth INR 207,400 cr (USD 38

billion) as of 2012. This market as a whole is expected to grow at a CAGR of 8% to reach USD 19,600 million by 2018.

The Menswear Market With a market size of INR 97,000 crore (around USD 17 billion) ,

menswear is the largest segment in India’s apparel market, accounting for 43.1% of the overall market. In comparison, women’s wear makes up 38%, while kids wear comprises 19.9%, of the market.

The various Indian Menswear Market reports pointed to the following aspects – India accounts for 11% of the Asia-Pacific menswear market value Data monitor report forecasts that menswear will grow at CAGR of 11% till

2020.

Indian men’s wear market categorizes into different product segments such as- Formalwear(shirts, trousers, suits) Casualwear (T-shirts, denims, shirts) Ethnic wear inner wear, Active wear,

and sleep wear.

Indian Men’s Ethnic Wear

Indian Men’s Ethnic WearEthnic wear has risen above the age and sex barrier. Though women are the primary consumers for ethnic wear, the men are not far behind.

Designers and Retailers are progressively turning their attention to clothing men in ethnic attire these days.

Manyavar, was one of the earliest companies to step into this segment.

Now this retail space is also being populated with several new entrants with easy access to the market through e-tailing.

Latest trends in men’s Ethnic wear Items like the stylish Nehru Jacket have gone beyond the Indian milieu and have

in fact become internationally recognized and loved fashion items. The dhoti suit look, perfectly combines the elegance of Indian traditions with

sharp western styles. Plus, Indo Western kurtas, sherwanis and pajamas are more subtle.

Men’s fashions sometimes mirror women’s styles, ex- the Pathani suit for men from Pakistani Salwar kameez.

Revival of khadi in plain kurta styles. A men’s dupatta or scarf to the outfit. A wedding Kantha and the turban.

Brands for Mens’ Ethnic wear

Manyavar Raymond Online n stores Private

Brands (ex- Pantaloons, Diwan saheb, Ritee Riwaj, Tathastu)

Designers like Rohit Bal, Manish Malhotra, Shantanu & Nikhil, Anamika Khanna, Rajesh Pratap Singh etc.

Growth Pattern Men’s apparel category which was used to seeing fairly high

growth rates of 20% - 40% , suddenly started seeing growth of 60% overall.

source: technopak advisors

High Growth Categories The Inner and Active wear, denims and T-shirts are high growth

categories within menswear segment with CAGRs of 16%, 14%, and 12% respectively.

The demand for denim is growing among men, especially with the younger generation. The entire denim market of India hinges around the men’s denim segment which contributes 80% to the market.

The heightened acceptance of casual or ‘Friday’ dressing, and the penetration of denim into Tier II and Tier III cities and rural India are contributing to the growth of men’s denim in India.

The active wear, an essential part of modern life, especially in metros, as a result of which the demand is on the rise within Indian menswear market.

Factors for growth of segment

source: technopak advisors

Potential for FutureThe menswear market is expected to grow at a CAGR of 8.5% over the next two years to reach INR 131,000 crore (USD 24 billion) by 2017.

*CAGR: Compound annual growth ratesource: technopak advisors

The Men’s Innerwear Market The men’s innerwear market, worth INR

6330 cr (USD 1.2 billion) is characterized by the presence of numerous Indian and international brands catering to different segments of the market.

The various subcategories of men’s innerwear include vests, briefs/boxers, basic T-shirts, shorts/ pyjamas, sleepwear, and the high grossing active wear.

Consumers mostly purchase branded products for vests and brief/boxers, which are the largest category offerings from leading innerwear brands.

SWOT

(Menswear industry)

STRENGTHS Easy Accessibility of Cheap Labor Rise in the Exports Tax Benefits by Government on apparel Manufacturing Machinery. Government initiatives to encourage exports and upgrade

technology. Strong Relationship with Clients in European and North American

countries.

Weaknesses

Low Technology Advancement and Integration Low Labor Output due to Insufficient Training Environmental Controls and Restrictions Highly fragmented industry with large number of small size and

technologically-outdated plants, lacking benefits of economies of scale.

Opportunities

Low barriers to Entry Mounting Preference for Fashionable clothing brands. Developing Overseas and Local Market Favorable demographics in the domestic market; increasing

young population coupled with rising income levels. Emergence of retail Industry as a whole and development of

various malls provide huge opportunities for the apparel segments.

Opportunities in product diversification.

Threats

Intense Competition from Other Countries. Constantly Changing Fashion Trends and Preferences Fluctuations in the demand in exports due to the elimination of

quota regime. Higher borrowing cost which affects the profitability of the small

and medium firms. Womenswear market is a constant threat.

Government Policies & Regulations

The Ministry of Textiles & apparels has taken pro-active role to rejuvenate the textile industry. It is now working more as a facilitator.

100 per cent FDI allowed through the automatic route. De-reservation of readymade garments and knitwear (for t-shirts) from the

small-scale industries (SSI) sector since end-2000. The Government is also working on ‘Advance Authorization Scheme’ and

‘Duty Exemption Pass Book’ to boost export in the textile and apparel sector.

THANK YOUCompiled By-Vatsala Tewari

(MFM)NIFT, Raebareli