Basavraj jakkali

Indian GarmentsBy

Key players S. no. Menswear Womenswear Kids wear1. Aditya Birla Nuvo Aditya Birla Nuvo Lilliput2. Raymond’s Arvind Mills Benetton Kids3. Koutons ITC Wills Catmos

Aditya Birla Nuvo Brands:• Esprit• Peter England• Allen Solley• Van Heusen• Louis Philippe

Raymond Brands• Raymond Finely Crafted Garments• Manzoni• Park Avenue• Park Avenue Woman• Color Plus• ColorPlus Woman• Parx• Notting Hill• Zapp!Koutons Brands:

• Koutons Menswear• Charlie Outlaw• Les Femme• Koutons Junior

Arvind Mills’s Brands• Flying Machine• Newport• Ruf & Tuf• Excalibur• Arrow• Lee

ITC Wills• John Players• Miss Players• Club Wills

Swot

analysis

Strength

• Abundant raw material availabilityIndia is one of the leading producers of natural and man made fibers. • Low cost skilled labourIndia has third lowest wage rate as compared to other key garment manufacturing companies. This provides industry with a distinct competitive advantage.• high Growing domestic marketThe Indian domestic market is extremely sensitive to fashion crazes and this has resulted in development of very responsive garment industry.

•Highly Independent & Self-Reliant industry.•Availability of large varieties of cotton fiber and has a fast growing synthetic fibre industry.• India has great advantage in Spinning Sector and has a presence in complete textile value chain.•Make in India campaign

Weakness

Lower productivity & cost competitiveness•Lower cost competitiveness has hampered ability to compete with lower cost global players because the labor force in India has a much lower productivity as compared to competing countries like China, Sri Lanka.

• Technological obsolescencelarge portion of the industry’s processing capacity is obsolete. This has resulted in low value addition in the industry and a need has risen for significant technology investments to achieve world class quality.

•The fabric and garmenting sector need modernization,•Unfavourable labour Laws.•Lack of Trade Membership, which restrict to tap other potential market.•Higher Indirect Taxes, and Interest Rates.•Low cotton yield per hectare, high financing cost and lack of adequate technology•Lack of trained manpower and low labor productivity due to lack of technological development

opportunities

• Liberalizing economyOpening up of Indian economy has presented the players with lots of opportunities; Indian companies are tying with global brands. They are leveraging the brand name of global brands.• Growing dual incomeWith number of working women’s increasing the dual incomes are income thus income available at peoples discrete has also increased.• Rising Disposable IncomeAccording to McKinsey Global Institute (MGI), by 2035 over 23 million Indians will number among the country’s wealthiest citizens. Forecasts for India’s real GDP growth rate over the coming two decades generally range between 6 and 9% per year. MGI forecast real compound annual growth of 7.3% from 2005-2025. Average real household disposable

• Indian companies see a huge opportunity in partnering with luxury brands wishing to enter India•Growth rate of domestic Textile Industry is 6-8% per annum.• Elimination of Quota Restrictions leads to greater Market Access.•Market is gradually shifting towards Branded Readymade Garments.• Emerging Retail Industry and Malls provide huge opportunities for the Clothing, •Greater Investment and FDI opportunities are available.• Large scope for technical textile linked with growing industrialization,

Threats

• Fluctuation in rupee value• The fluctuation in rupee value posses a big threat in front of

importers and exporters. The exchange value of Rupee against UD Dollar has• Depreciation of Rupee which has resulted in huge losses for

the importers. Thus there is always a great threat for players in international trade. • Competition from other developing countries, especially China

in domestic market Elimination of Quota system has led to fluctuations in Export Demand.• Rising prices of inputs-raw material

• High Competition from global playersThe major exporters of garments from all over the world are giving tough competition to India as they are providing higher productivity with lower costs. Competition is not likely to remain just in the exports space, the industry is likely to face competition from cheaper imports as well• increase pressure on the industry to follow international labor and environmental laws.

Pestel

Analysis

Political• Reduction in import duty on most of textile machinery

• Policy Issues

Insertion of state and corporation Taxes on export of garments. Export of garments are burdened with taxes and duties levied by :

a) Central government

b) State government

c) Municipal corporation

• Major government policies/initiatives

Post liberalization, Government of India (GoI) has undertaken several key initiatives to boost the industry’s growth. It has removed barriers that hindered growth and expansion. Some major policies include:

Technology Up gradations Fund Scheme (TUFS)

De-reservation of the garments sector

National Textile Policy – 2000

• Make in India campaign

Economical • Elimination of Quota system has led to fluctuations in Export Demand.•Greater Investment and FDI opportunities are available.• Reduction in Excise Duty• the concession would prove to be highly elusive for apparel exporters as textile manufacturers, already struggling with stiff margins, may not be able to pass on the benefit down the line to exporters.• Impact of various monetary policy measuresRecent money shortage in market has forced RBI to make changes in its policies so that the money supply in the market can be increased. Following are the recent changes that RBI has done in the market. These changes have had positive impact on every industry in the economy:

Social

• Established India’s first High Fashion Show Room for current & futuristic trends where even buyers can have samples for coming season.• Clothes are an epitome of a culture. People in different parts of the world have their own styles of dressing which symbolize their culture and status.• Cultures-need to create styles that appeal to those of different cultures especially if those cultural groups represent large enough segments of its market.•Norms- wholesaler avoid creating clothing's that are outside the norms of the country• Changing population-An ageing population may increase the demand for larger jeans and pent sizes like relaxed and loose fitting.•Decrease in birth rates will decrease the amount of baby clothes.

Technological

• Internet and Information Explosionthe customers have continuous access to the sites of the top designers, trend forecasting agencies, fashion houses and fabric suppliers. This has helped both the institute and the students immensely keeping them updated with the latest trends•Marketing integration using ComputerDesigner is in direct contact with the customer and also the manufacturer to be aware of the latest trends and also needs and demands of the customer.•Addition of advanced equipment's like robots which may force the company to fire workers.•Old machines/technology used for production.

Environmental

• A large amount of waste water and polluted air is generated during the production process.• A large amount of water, energy and other valuable resources are consumed during the process.•Waste water and air emissions receive the most attention from politicians.• Large amount of fabric waste and other scraps are left over at the end of the production.• Pollution of rivers and beaches from textile processes.

Legal • Labour ReformsImmediate reforms in labor laws to help improve production and productivity of garments • Increase in working hours from 48 to 60 per week with suitable provision for rest period• Female workers to be employed in the entire second shift• In view of the second nature of the garment industry the contract labors permitted on condition of a guaranteed employment 100 days in a year.