MD.FAISAL BBA (Studying) Major in International Business University of Dhaka Bangladesh E-mail: firstname.lastname@example.org
The Indian apparel industry 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 contribution to industrial output, export earnings of the country and the generation of employment.
The Indian apparel industry has seen remarkable changes in the past few years and it is also one of the India's largest foreign exchange earners. Embroidery being the traditional art form of the country has contributed hugely for apparel industry. Indian embroidery market stands out as being extraordinary in the international markets.
The Indian Market
The Indian consumer is evolving and driving retail growth in India and companies in the fashion industry are reacting to this evolution through myriad options. The fashion market in India is witnessing strong growth owing to a young population, an increase in disposable incomes, which is leading to increase in consumption 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 share of the modern organised retail in India i.e. 20% of the current market of Rs. 56,000 crore and this is expected to grow at a constant rate of 20% over the next 4 years. Bilateral Co-operation in this sector shows great synergies. An Indo Italia Task Force on Fashion Design and life Style products has been created following an agreement 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 & Industry , NID - National Institure of Design while on the Italian side there is Confindustria, Altagamma, Universita’ Bocconi, ICE. With India being the second fastest growing major economy in the world, 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 billion and expected to touch US$ 700 billion by 2010 with demand for textiles and apparels expected to grow to 25 per cent from current figures where Asia will contribute 85 per cent.
Clothing, textile and fashion accessories form 39 per cent of the Rs 55,000 crore organized retailing in India.
The Italian designer Giorgio Armani's company has signed a joint venture with India's most valuable real estate firm, DLF.Giorgio Armani Holding, a wholly-owned subsidiary of the Italian company, will take 51 percent in the venture, the maximum allowed for a single-brand foreign retailer in India. Armani will bring 10 million rupees ($250,000) to the venture, which would also act as a wholesaling firm supplying Armani-branded products to other independent retailers. The first Armani stores would be set up in New Delhi.
Reliance Brands, a subsidiary of Reliance Retail, has entered into a 49:51 joint venture with Italian fashion house, Sixty Group, to retail its brands in India.
DLF has tied...