The Indian Apparel Market
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 crore (~USD 38 billion) as of 2012, is expected to grow at a compound average growth rate (CAGR) of 9% over the next decade. Further, the recent omission of excise duty on branded apparel has provided an impetus to retailers in terms of the overall market sentiment.
The Menswear Market
With a market size of INR 87,500 crore (USD 16 billion) in 2012, menswear is the largest segment in India’s apparel market, accounting for 42% of the overall market. In comparison, womenswear makes up 38%, while kidswear comprises 20%, of the market.
Market Size and Growth Projections
The menswear market can be divided into various categories including woven shirts, trousers, denims, winterwear, innerwear, T-shirts, suits, activewear, ethnic wear and dailywear. The woven shirts category is the single largest within the menswear market, followed by trousers and denim. The menswear market is expected to grow at a CAGR of 8.5% over the next five years to reach INR 131,000 crore (USD 24 billion) by 2017.
Menswear Market in India (INR cr)
Source: Technopak Advisors High Growth Categories
Denim, activewear and T-shirts are high growth categories within menswear segment with CAGRs of 16%, 14%, and 12% respectively. Despite the not so optimistic economic scenario of 2012, 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 activewear category primarily constitutes of sportswear, gymwear, and swimwear. Increasing health consciousness has made sports, gym, jogging, swimming, yoga, etc. an essential part of modern life, especially in metros, as a result of which the demand for activewear is on the rise within Indian menswear market. The shift from formal attire to comfort-oriented casual attire is driving the market for men’s T-shirts, alongside the demand for denim.
30000 25000 20000
Category-wise Growth in Menswear (INR cr)
7% 6% 3%
Source: Technopak Analysis
Menswear consumers are in a phase of transition; they no longer want to stick to wearing apparel of defined styles and silhouette but also want to experiment with the look of the clothing. The demand for occasion-specific clothing is rising within the menswear segment, e.g., the modern Indian male can be seen in activewear at the gym in the morning; in formal shirts, trousers, and suits during office hours; in smart casuals in the evening; and in dailywear/sleepwear at night. The demand for ethnic dressing at special occasions like marriages and social functions is also a distinct trend. Many brands have specifically forayed into men’s ethnicwear to cater to this demand. The menswear segment is also witnessing an increase in the demand for colored bottomwear. In addition to the traditional colors, viz. black, blue, brown and grey, Indian men have started experimenting with newer colous like red, green, orange, etc. Almost all domestic and international brands have started offering men’s bottomwear in newer colors; they are also optimistic about the growth of colored trousers and denim. Another interesting trend in the menswear market is the steady growth in the premium tailoring segment comprising the fashion designers and the bespoke / luxury segment. Customers in the super premium segment are willing to pay a premium to ensure that their tailor-made...
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