Five Frce Analysis of Indian Apparel Industry

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Global Scenario of the Readymade Apparel industry
In the apparel industry, globalisation of production activities has meant that a garment can be designed in New York, produced by using the fabric made in the Republic of Korea, cut in Hong Kong, and assembled in China, for eventual distribution in the United Kingdom or the United States. Frontiers of nation-states no longer determine the business strategies of producer firms or the purchasing strategies of large distribution networks.

Global market of readymade apparel industry is estimated at $183 billion USD

The main factors which have contributed to the globalisation of world apparel industry are: • Labour-intensive nature of apparel production technology • Loss of comparative cost advantage of developed countries • Dramatic decline in transport and communication costs • search for production sites with lower labour costs

• Shift in apparel exports from more restricted to less restricted areas among the developing countries due to the discriminatory nature of the restrictions imposed by the Multi-fibre Arrangement (MFA) It is reported that roughly half of the total production capacity in the apparel industry has shifted from developed countries to less developed countries over the past three decades. The fundamental factor which explains this relocation movement in the global apparel industry and the emergence of new producing countries is the international differences in hourly wage costs in the clothing industry.

Indian Scenario:

Readymade Apparel industry provides one of the most fundamental necessities of the people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing. The readymade garments industry is part of a huge textile export market that consists of fabrics, made-ups, yarn, thread, fibre, woollen textiles, silk textiles and readymade garments. The global readymade apparel industry is perhaps among the most advanced, and yet the most fragmented, of all retail sectors. The apparel industry is very diverse in size, manufacturing facility, type of apparel produced, quantity and quality of output, cost, requirement for fabric etc. It comprises suppliers of ready-made garments for both, domestic or export markets.

India’s Exports & Imports

• Export basket comprises a wide range of items - cotton textiles, man-made textiles, woolen & silk textiles and readymade garments (RMG) • RMG exports from India contribute to more than 50% to textile exports and have seen their share in textile export basket growing • International retailers are increasing sourcing from India through their buying houses; retailers like Gap, Wal-Mart, H&M, Target, JC Penny and Tommy Hilfiger crossed USD 100 million each in sourcing from India [pic]

Source: WTO
Key Export Players in India based on their Market Share and Capital

[pic] [pic]

Gokaldas Exports
Gokaldas Exports is a major player in the readymade garment industry across the globe. It is one of India's largest manufacturer and exporter and recipients of highest awards since 1980. It has a manufacturing facility in Bangalore which specialises in the manufacture of outerwear, blazers and pants (Formal and Casuals), shorts, shirts, blouses, Denim wear, swimwear, active and Sportswear. Some of their clients are:

• Nike
• Old Navy
• Gap
• Banana Republic
• Abercrombie & Fitch
• Champion
• Sears,Canada
• Macy’s Merchandising Group
• Diesel
• Spykar
KPR Mill Ltd.
KPR, a vertically integrated apparel company with International accreditations for quality control, environmental standards and social accountability, is a leading exporter of readymade knitted apparel, cotton knitted fabric and yarn having manufacturing facilities located at Coimbatore, Sathyamangalam, and Tirupur in Tamilnadu. Zodiac Clothing Company (ZODIAC)

Zodiac...
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