Indian Apparel Market Research Report

Indian Apparel Market Research Report By MD. FAISAL BBA (Studying) Major in International Business University of Dhaka Bangladesh E-mail faisal. emailprotected om The Indian vestments labor has a vast existence in the economic life of the country. It plays a critical role in the economic development of the country with its p nontextual mattering to industrial output, export earnings of the country and the generation of employment. The Indian apparel attention has seen remarkable changes in the past few years and it is too one of the Indias largest foreign exchange earners. Embroidery macrocosm the traditional art form of the country has contributed hugely for apparel perseverance.Indian embroidery grocery stands out as being extraordinary in the international markets. The Indian Market The Indian consumer is evolving and driving retail get upth in India and companies in the hammer diligence are reacting to this arouseing through and through and through myriad options. T he spurt market in India is witnessing strong increase owing to a new-made population, an increase in disposable incomes, which is leading to increase in usance and thus the rapid growth in organized retail.Private consumption growth contributes to more than half of the GDP growth and is growing in double digit figures. Several businesses are reacting to this evolution positively, both through pull and push phenomenon. Apparel today has the largest address of the modern unionised retail in India i. e. 20% of the current market of Rs. 56,000 crore and this is expect to grow at a constant rate of 20% over the following(a) 4 years. Bilateral Co-operation in this sector shows great synergies.An Indo Italia Task military on Fashion Design and life Style products has been created following an harmony between the Indian Ministry of Commerce and Italian Ministry of International Trade. On the Indian side members include FICCI Federation of Indian Chambers of Commerce & manufactu re , NID National Institure of Design while on the Italian side at that place is Confindustria, Altagamma, Universita Bocconi, ICE. With India being the second fastest growing major economy in the man, fashion industry is pushing itself to keep pace with the retail evolution witnessed in India.Facts and Figures The global textiles and apparel trade estimated at US$ 450 one thousand million and evaluate to touch US$ 700 one thousand thousand by 2010 with posit for textiles and apparels expected to grow to 25 per centimeime from current figures where Asia leave behind contribute 85 per cent. Clothing, textile and fashion accessories form 39 per cent of the Rs 55,000 crore organized retail in India. The Italian designer Giorgio Armanis company has signed a sum venture with Indias most valuable real estate firm, DLF.Giorgio Armani Holding, a wholly-owned adjunct of the Italian company, will take 51 percent in the venture, the utmost allowed for a sensation-brand foreign re tailer in India. Armani will meet 10 million rupees ($250,000) to the venture, which would also act as a wholesaling firm provision Armani-branded products to other independent retailers. The first off Armani stores would be set up in New Delhi. Reliance Brands, a subsidiary of Reliance Retail, has entered into a 4951 joint venture with Italian fashion house, Sixty Group, to retail its brands in India.DLF has tied up with Armani ,Dolce & Gabbana Raymond, the Gautam Singhania owned house of complete men, has coupled hands, in a Rs. 50 crore, 5050 joint venture, with the Italian fashion major Grotto Spa bringing in subvention GAS brand apparel in India. Other Italian Brands in India are Gruppo Cadini, Gucci, Ermenegildo Zegna, Corneliani,Canali, Brioni, and Pal Zileri Indias asset base for this sector numerous qualified and semi-qualified manpower which is skilled and low on cost of considerable drawn tradition of having produced high quality textiles for decades.Apparel Market Consumer disbursement on apparel in India has grown over the last vanadium years, touching the global benchmark of 5 per cent of the append income During the iii years 2004-05 to 2006-07, investments in the textile sector has increased from US$ 2. 94 billion to US$ 7. 85 billion. In 2007, mens apparel industry was mainly dominated by shirts (in honour terms) accounting for 36. 5% of total mens segment. Indias textiles and apparels industry is estimated to be worth US$49 billion where 39 per cent is accounted by the exports market. Currently India has a 3. -4 per cent share in world export of textiles and 3 per cent in robes exports. Europe continues to be Indias major export market with 22 per cent share in textiles and 43 per cent in apparel the US is the single largest buyer of Indian textiles and apparel with 19 per cent and 32. 6 per cent share respectively. Readymade garments (RMG) are the largest export segment, accounting for 45 per cent of total textile exports and 8. 2 per cent of Indias total exports. Future The demand for ready-made garments in rural India will hurry at an one-year rate of 16. 50% to reach Rs. 42,918 Crore or US$10. 1 billion by 2010. Mens apparel industry will increase at a CAGR of 14. 86% during the devil-year period from 2008 to 2010. Women apparel market (in value terms) is anticipated to grow at an annual averaged growth rate of 17. 79% till 2010. The organized apparel retailing in India is projected to surge at an annual averaged growth rate of 30% from 2008 to reach Rs. 52,289 Crore in 2010. Increasing at a CAGR of 24%, branded apparel industry for men will cross Rs. 25,000 Crore by 2010. n Increasing at an annual averaged growth rate of 25%, branded apparel industry for women is expected to hit Rs. 8,351 Crore by 2010. Readymade garments exports from India are expected to touch US$ 14. 5 billion by 2009-10 with a cumulative annual growth of 18 to 20 per cent, according to Apparel Export Promotion Council. Versace p ret-e-porte is other Italian fashion house at the lower end of the fashion pyramid that is in the final stages of tying up with Reliance Brands to bring its products to India. Gas eyes US$49. 82m sales by 2011. The company will invest Rs500m till 2010 on its retail expansion, marketing and brand building in India. Gas may do local production outsourcing for sub-Rs1,000 range.Shoppers fracture is planning to enter the luxury retail segment with large data formatting retail stores which will house products from many of well-known luxury brands, including Louis Vuitton, Gucci, Zegna, Hugo Boss, YSL, Mont Blanc and Christian Dior. The company plans to invest Rs. 100 crore in this model in the first year itself. The organized lingerie retail market in India is expected to touch Rs 4,000 Crore mark by 2009. IT revenue from the retail segment is forecasted to grow at an annual averaged growth rate of 43. 41% by 2010. The Indian fashion industry is expected to rise at a olympian pace of 22. 7% through 2012. Government Initiatives 100 per cent FDI allowed through the automatic route. Currently, 100 per cent foreign direct investment is allowed in wholesale trade, but only 51 per cent in single brand outlets. De-reservation of readymade garments, hosiery and knitwear from the SSI sector. engineering Mission on Cotton has been launched to agnise available quality raw material at competitive prices. Technology Up gradation Fund Scheme (TUFS) has been launched to facilitate the modernisation and up gradation of the textiles industry.Scheme for Integrated Textile Park (SITP) has been started to impart world class infrastructure facilities for setting up their textile units through the familiar Private Partnership model. The Apparel International Mart, in Gurgaon, will provide world class facility to apparel exporters to showcase their products and to serve as a one-stop-shop for reputed international buyers. The Indian Textile Plaza is being built, in Ahmedabad, to e ncourage exports to overseas markets. 50 textile parks are being established to enhance manufacturing capacity and ncrease the industrys cost competitiveness. The Government plans to set up a technology mission on technical textiles with an aim to invoke investment into the sector. The Government has increased the plan allocation for textiles by 66. 27 per cent in 2007-08 over that of 2006-07, making it one of the only two ministries that have seen such a high level of increase in budgetary support. The Indian consumer desires to possess international luxury brands as an sacred product. Additionally, no Indian retail brand actually qualifies to be categorised as a luxury brand.This readiness for luxury as an nonionised market, has been recognised throughout the world and international luxury brands are exploring viable avenues and tie-ups to enter the Indian retail market. Indian apparel companies have earn the huge potential of partnering with these global luxury brands wishi ng to enter India. This helps them non only to extend their portfolio into the luxury, super premium, premium segments, but also makes them presumable sourcing partners for these brands in India as well as internationally. Vice versa, luxury brands view access to well established distribution channels and customer base.