ROLE OF INDIAN TEXTILE AND APPAREL INDUSTRY IN CHANGING GLOBAL SUPPLY-DEMAND SCENARIO
Indian Textile and Apparel
-
Upload
mlganesh666 -
Category
Documents
-
view
227 -
download
1
Transcript of Indian Textile and Apparel
-
8/8/2019 Indian Textile and Apparel
1/30
Perspective on Indian Textile and Apparel Industry
6th October, 2009
Arvind Singhal
Chairman & MD
Technopak Leadership Forum, Mumbai
-
8/8/2019 Indian Textile and Apparel
2/30
Contents
Current status of Indian textile & apparel market
Evolving domestic consumption scenario
Yet Untapped opportunities in domestic apparel market
|2
Strategies to develop competitive and sustainable business
-
8/8/2019 Indian Textile and Apparel
3/30
Indias large textile & apparel industry
Indian Textile and Apparel Market
US $ 62 Billion
INR 265,500 Crore
Exports
Domestic Market
|3
on
INR 93,500 Crore
on
INR 172,000 Crore
Apparel
US $ 10 Billion
INR 43,500 Crore
Textiles
US $ 12 Billion
INR 50,000 Crore
Apparel
US $ 30 Billion
INR 128,500 Crore
Textiles
US $ 10 Billion
INR 43,500 Crore
In last 5 years, total market size has grown 10% Year on Year.
Indias share in global trade is 4%.
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
4/30
Is growing despite the slowdown
25
Exports market
50
60
Domestic apparel market
|4
1418 19
0
5
10
15
US$Billio
n
2226
3036
0
10
20
30
40
2006 2007 2008 2011 2014
US$Billion
Source : Ministry of Textiles, Technopak Analysis
(values rounded off)
-
8/8/2019 Indian Textile and Apparel
5/30
. r ven y t e grow ng consumpt on scenar o
-
8/8/2019 Indian Textile and Apparel
6/30
Consumerism is growing
~ 500 Million consumers (excluding
BPL families) across Urban andRural India (18+ years)
~ 270 Million in Rural India
Favorable demographics
Dropping dependency ratio
|6
~ 230 Million in Urban India
~ 80 Million in the top 100 cities
~ 75 Million in the top 70 cities
~ 45 Million in top 30 cities
~ 30 Million in the top 8 cities
Rising education levels
Increasing urbanization
Rising Incomes
-
8/8/2019 Indian Textile and Apparel
7/30
Hence increasing discretionary expenditure
40%
4%
27%36%
4%
30% 32%32%
2003 2008 2013
|7
The share of food and grocery in theconsumers wallet will continue to drop
releasing more money for discretionary
expenditure
20% 20%10% 20%11%5
Food & Grocery
Rent, Utilities & Education
Fuel, Transport &
Communication
Savings & Investment
Discretionary Expenditure
Source : India Consumer Trends, Technopak analysis
-
8/8/2019 Indian Textile and Apparel
8/30
andwidening consumption basket
1. Food and Grocery
2. Clothing
3. Footwear
4. Consumer durables
5. Home linen
6. Movies and theatre
7. Eating out
1991
1. Food and Grocery
2. Clothing
3. Footwear4. Consumer durables
5. Expenditure on DVDs and
VCDs
6. Home linen
7. Home accessories
2009 2015
1. Food and Grocery
2. Clothing
3. Footwear
4. Consumer durables5. Expenditure on DVDs and VCDs
6. Home linen
7. Home accessories
8. Gifts
9. Take-away/ RTE meals
|8
8. Accessories
9. Gifts
10. Take-away/ RTE meals
11. Movies and theatre
12. Eating out
13. Entertainment parks
14. Mobile phones and services
15. Household help16. Travel packages
17. Club membership
18. Computer Peripherals &
Internet
19. Personal transport
10. Movies and theatre
11. Eating out
12. Entertainment parks
13. Mobile phones and services
14. Household help
15. Travel packages
16. Club membership
17. Computer Peripherals &Internet
18. Beauty and Spa
19. Gaming
20. Personal transport
21. Coaching / training / learning
22. ?
-
8/8/2019 Indian Textile and Apparel
9/30
Food & Grocery
Need based
A new way of classifying consumption ?
Home? Home dcor
Aspiration based
|9
Prepared food / food services
Textiles and apparel
Footwear
Medicine & healthcare services
Air travel / public transport
Consumer durables
Consumer electronics
Kitchen appliances
Mobile telephone handsets
500 million consumers decision takers
Education for childrenPersonal transport
Jewelry & wrist-wear (both for women and
men)
Accessories (handbags, pens, others)
Grooming
Well-beingCoaching & learning
Leisure & recreation
Socializing & other lifestyle
-
8/8/2019 Indian Textile and Apparel
10/30
Hence, textile &apparel industry needs
|10
gears to this fast
changing consumption
scenario
-
8/8/2019 Indian Textile and Apparel
11/30
Many not fully tapped opportunities in the
domestic apparel market
-
8/8/2019 Indian Textile and Apparel
12/30
Women's wear
Ethnic
Wear
2008 Women's WearMarket of SEC A& B is INR
25,300 Crore
64% 61%52%
62% 67% 64%51% 50% 47%
14%
Urban Womens Wear Market7 11 0.7 1 1.5 1 1.5 0.8 4 0.7 1.6 1.5INR
000
Crore
|12
Formal
Wear
13%
Casual
Wear
22%
Party
Wear
1%
Nightw
ear
17%
47%
36% 39%
5% 5%
48%38% 33% 36%
49% 50% 53%
86%
95% 95%
Urban-Branded Urban-Unbranded
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
13/30
Fast / affordable fashion for youth .
5
6Children
Women
Casual Wear Market
(INR 000 Crore)
10-15% growth
|13
More than 50% of the clothes in this category are bought by youth (age 13-30) Increase of buying frequency of casual wear is spurred by:-
Preference for more comfort wear
Increase in employability
Acceptance of Casual wear in work places
12Men
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
14/30
Kids wear : still very few established players
20%
40%60%80%
100%
300 3250 950 1800 2600 950 3000
Rs Crores
Market size
|14
I-BodySuits
I-T-shirts Frocks T-shirts Lowers Jeans Ethnicwear
Low Economy Medium Premium Super Premium
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
15/30
Innerwear .
Innerwear Market14,000 Crore
Mens Innerwear Market(5,500 Crore)
Womens Innerwear Market(8,500 Crore)
Super PremiumSuper Premium
1%
|15
Low
34%
Men'sInnerwea
r 5500Women'sInnerwea
r 8500
Low
34%
Source : Technopak Analysis
Super premium and premium segment for mens Innerwear is around Rs 500 Crores, very
few players are present in India in this market segment (untapped opportunity)
2%
Premium
8%
Medium
11%Economy
45%
5%Medium
23%
Economy
37%
-
8/8/2019 Indian Textile and Apparel
16/30
Plus size apparel ..
Plussize8%
Rest92%
Plus size % of Indian population
|16
Potential market for plus size is 8% of
Indian apparel market
However currently only 0.15% of
apparel market consists of plus size
Global players:
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
17/30
RetailerIn
IndiaSince
Turnover
(RsCrores)
Share of
Apparel
in Total
Active wear /sportswear .
Growth in Store
Numbers of majorsportswear brands
505
675
600
800
Major sportswear brands in India
|17
Reebok 1995 1148 50%
Adidas 1996 518 45%
Nike 1995 293 40%
Puma 2002 158 30%
180
360
70165 200
325
7 14 36
0
200
400
2005 2006 2007 2008
Reebok Adidas Puma
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
18/30
International retailers likely to expand firmly in the
next 5 years .
|18
-
8/8/2019 Indian Textile and Apparel
19/30
Value retail : a growing phenomenon
Hypermarket
s
Department stores /
large format stores
Exclusive stores
No. of stores
No. of cities
10
7 58
11
3
27 37
9 19
18
8
45
22
40
218
~140
0~500
41
18
10
438
% share of retail presence across various cities
many retailers already present in smaller cities
|19
40%26%
67%
46%61%
49%25%
4%
51% 44%
50%
30%
33%
41%
39%
31%
20%
10%
32%29%
10%
9%
5%9%
9%
8%
7%12%35%
8% 11%
45%
78%
10% 15%
Central BigBazaar
ShoppersStop
Westside Lifestyle Pantaloon Raymond Koutons WillsLifestyle
Fab India
Top4 Top15 Top 35 OthersSource : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
20/30
Strategies to develop competitive &
sustainable businesses
-
8/8/2019 Indian Textile and Apparel
21/30
Service orientation Partnering for growth
Forecasting
s
One stop solution
|21
Designing
Logistics
Warehousing
Manufacturing
Retailers /
brands
Manufactur
er upp y c a n partners p
IT linkages
-
8/8/2019 Indian Textile and Apparel
22/30
Niche positioning : customized solutions e.g.
Value added Jeans supplier
Formal shirts manufacturer
Value fashion supplier
|22
Private label supplier Kids wear manufacturer
Lingerie manufacturer
Etc..
-
8/8/2019 Indian Textile and Apparel
23/30
Innovating to survive
ArvindPlanning to make denim salwar-kameez to expand in the
rural market
RBR GarmentsProducing 'novel' garments using mineral fibre, soya bean
fibre etc.
Levi's Selling Jeans on EMI scheme
Examples in Textile and apparel
|23
Price & Design .....Tata Nano, G.E.
Supply Chain .ITC, Suguna
Manufacturing . Dynamatics, Jain Irrigation
Examples in other industries
-
8/8/2019 Indian Textile and Apparel
24/30
Adopting global best practices
Rs 20 crores savings -
100% increase in Ca acitiesSix sigma
Examples in other industries
|24
> Rs 100 crores savings
Productivity
enhancements, improved
customer satisfaction
Lean manufacturing
Six sigma
Six sigma
-
8/8/2019 Indian Textile and Apparel
25/30
Developing and attracting manpower
Company Industry Collaboration with Academic Institute
NASSCOM IT & ITES Collaborating with Ministry of HRD to set up
new IIITs
Industry academia collaboration in other industries
|25
TESCO Retail Runs a Retail Certification course with IIM-
Bangalore
Airtel Telecom Has tied up with NMIMS to train its staff in the
latest marketing techniques
Bharat Forge Aviation Has Partnered with BITS, Pilani to help its
employees attain degrees in manufacturingmanagement
Patni Computers IT Have developed specialized courses in supply
chain management along with SP Jain Institute
of Management
Source : Technopak Analysis
-
8/8/2019 Indian Textile and Apparel
26/30
|26
Environmental sustainability Non - negotiable
-
8/8/2019 Indian Textile and Apparel
27/30
Leveraging FTAs
Benefits
Decreased sourcing costs of
key products included in the
a reements
Country Status
ASEAN Concluded
Sri Lanka ConcludedThailand Concluded
S. Korea Concluded
Singapore Concluded
Indias major trade agreements
|27
Availability of larger variety of
products for the domestic
market
SAFTA ConcludedAfghanistan Concluded
Bhutan Concluded
Mercosur PTA Concluded
Turkey Negotiating
Australia Negotiating
New Zealand Negotiating
GCC Negotiating
Taiwan Negotiating
EU Negotiating
US Negotiating
Source : Ministry of commerce
-
8/8/2019 Indian Textile and Apparel
28/30
Conclusion
The Indian domestic apparel market offers enormous
opportunity going forward due to various consumption
growth drivers inherent in the Indian economy
A scan of the apparel market throws out some
|28
important opportunities that companies need to lookmore closely
To tap the opportunities and sustain businesses in this
changing consumption scenario, companies need to
align themselves with the market requirements and
develop required competencies
-
8/8/2019 Indian Textile and Apparel
29/30
-
8/8/2019 Indian Textile and Apparel
30/30
Arvind SinghalTechnopak Advisors
Fourth Floor, DLF Tower 8-ADLF Cyber City, Phase II
Gurgaon 122 002 (National Capital Region of Delhi)
Haryana, India
For Further Dialogue, Please Contact :
Tel : (91-124) 454 1111, 288 1111Fax : (91-124) 454 1198, 454 1199
Email : [email protected]
Web : www.technopak.com