Sports Industry in India

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Trends in India’s Domestic Fashion Market
Trends and Business Opportunities in India’s Domestic Fashion Market The Growth Story of Sports Brands in India: ‘Sports-Inspired Casual Wear’ Brands Eye the ‘Affordable Luxury’ Segment Women’s Ethnic Wear: Contemporising Indian Wear to Capture a Larger Market Growth of Over-the-Counter (OTC) Fabric Market Kids are the New Shoppers ‘Pop Up’ Retail Concept: Temporary Stores to Attract Consumers and Create a Buzz Summary 37 39 42 44 47 50 53 54

perspective | Volume 04
a quar terly repor t by Vol u me 0 4 / 2 0 1 0

Trends and Business Opportunities in India’s Domestic Fashion Market The Indian textile and apparel industry has witnessed tremendous growth in the last 2 decades and its market size today stands at US$ 67 billion. India has positioned itself as a manufacturing destination with cheap labour, cotton-based raw material and easy access to US and Europe markets. With the abolition of quotas, India surged ahead of other non-competitive countries and positioned itself as a value-added manufacturer with a varied material base, an educated and English-speaking class of executives with high product development and design orientation. While textile and garment exports have been growing at an average pace of 8 per cent, it is the domestic market that presents itself as a larger opportunity, hence firing the imagination of manufacturers, entrepreneurs and marketers. The Indian domestic apparel market size is US$ 33 billion of which only 16 per cent is organised. Exhibit 1:

Indian Textile and Apparel Market (Rs. 3,01,500 crore) 2009 (E) Exports (Rs. 99,000 crore) Textiles (Rs. 54,000 crore) Apparel (Rs.45,000 crore)

Overview of Indian Textile and Apparel Industry

Domestic Market (Rs. 2,02,500 crore)

Textiles (Rs. 54,000 crore)

Apparel (Rs.1,48,500 crore)

All the figures in Rs crore Source: Technopak Analysis estimated exports for 2009 values rounded off

A number of factors are expected to fuel the growth of the domestic market in spite of the many challenges faced by this industry. Growth drivers include increased incomes, high growth of GDP leading to rapid urbanisation, growth of organised retail with the entry of a large number of domestic and international players, and a growing awareness of global trends along with the need to look fashionable. Through our work in the textile and apparel sector, we analyse a number of trends which represent opportunities for companies already in this space or planning to enter it. Based on the Indian consumer’s current needs and aspirations, this article covers six categories which may have been present for long but now present a bigger than ever canvas for companies to expand in or to enter for the first time. We look at sports brands like Nike, Reebok and Adidas—how they changed their product mix in India to include more casual wear after realising that the Indian consumer, lacking options, opts to wear their apparel for ‘everything outside office’. They positioned themselves more as lifestyle apparel than as a pure sports brand. Now, with growing consumer interest in fitness, they offer a wide variety of fitness apparel/footwear options. We take on the positive effects of the entry of international brands—the concept of ‘affordable luxury’ which acts as a bridge between mid-premium and luxury presents the perfect opportunity for brands to take consumers to the next level of spending. We also cover notable changes in the women’s category by presenting the story of how women’s ethnic wear is constantly innovating itself to capture the mind of the Indian woman and how brands can increasingly use this as an opportunity. Another related trend is the growth of over-the-counter fabric comprising unstitched ethnic wear, trousers and shirts. In spite of migration of consumers to ready-to-wear apparel, this category constitutes ~23 per cent of the Indian apparel market size, growing at a steady rate of 5 per cent and...
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