UCI_Apparel

8/7/2019 UCI_Apparel

http://slidepdf.com/reader/full/uciapparel 1/12



TYPES OF FASHION INDUSTRIES

The fashion industry is composed of two primary sectors: ready-to-wear (couture) and haute couture

(high fashion). Ready-to-wear makes up the bulk of fashion because it is less expensive than haute

couture and far more easily accessible. Designers showing promise might make their mark designing

haute couture.

Haute couture

Until the 1950s, fashion clothing was predominately designed and manufactured on a made-to-

measure or haute couture basis (French for high-fashion), with each garment being created for a specific

client. A couture garment is made to order for an individual customer, and is usually made from high-

quality, expensive fabric, sewn with extreme attention to detail and finish, often using time-consuming,

hand-executed techniques. Look and fit take priority over the cost of materials and the time it takes to

make.

Ready-to-wear

Ready-to-wear clothes are a cross between haute couture and mass market. They are not made for

individual customers, but great care is taken in the choice and cut of the fabric. Clothes are made in small

quantities to guarantee exclusivity, so they are rather expensive. Ready-to-wear collections are usually

presented by fashion houses each season during a period known as Fashion Week. This takes place on a

city-wide basis and occurs twice a year.

Mass market

Currently the fashion industry relies more on mass market sales. The mass market caters for a wide range

of customers, producing ready-to-wear clothes in large quantities and standard sizes. Cheap materials,

creatively used, produce affordable fashion. Mass market designers generally adapt the trends set by the

famous names in fashion. They often wait around a season to make sure a style is going to catch on before

producing their own versions of the original look. In order to save money and time, they use cheaper

fabrics and simpler production techniques which can easily be done by machine. The end product can

therefore be sold much more cheaply.

There is a type of design called "kitsch" design originated from the German word "kitschen" meaning

"ugly" or "not aesthetically pleasing." Kitsch can also refer to "wearing or displaying something that istherefore no longer in fashion." For instance, if you wear pants from the 80's, it is regarded as a "kitsch"

fashion statement.



G EOG RAPHY

The fashion industry spans the globe. Western societies have metamorphosed drastically since earlier

centuries. Asian societies, too, like India's enormous Bollywood film industry, make use of extremely

diverse and talented pools of designers who dress every movie's heroines

The global fashion apparel industry is one of the most important sectors of the economy in terms of

investment, revenue, trade and employment generation all over the world. Apparel industry has short

product life cycles, tremendous product variety, volatile and unpredictable demand, long and inflexible

supply processes. The industry has been in a transition over the last 20 years. Some of the its major

contributors are:

y

Significant consolidation in retail,

y

Increasing use of electronic commerce in retail, and

y

Wholesale trade

The last few weeks have witnessed a series of top level corporate exits in the apparel sector and retail

space in India. Big players from Raymond to Aditya Birla, Marks & Spencer to Reliance Retail have seen a

reign at the highest level. The buzz is that it could be a prelude to impending structura l changes the

business of some these companies. Take Aditya Birla Nuvo for example, one of the largest players in the

branded clothing space with Rs 1,115-crores in revenue, has effected changes at the highest level. Aloke

Malik, who was president of Peter England Fashions and Retail Ltd, is now moving on to another group

company Idea Cellular Ltd. The current president of Madura Garments Lifestyle and Retail Ltd, Ashish

Dikshit, will now spearhead the de-merged operations of Peter England Fashions & Retail as well. The

feeling among industry circles is this development could be the preface to impending structural changesin Aditya Birla's apparel business, which is in the midst of dismantling cost structures built-in during the

boom period, as it emerges from the red. Aditya Birla may be simplifying the operational structure once

again with Ashish Dikshit taking over the entire fashion brands and retail operations. Dikshit, an IIM-B

graduate, was earlier with Aditya Birla Group Chairman Kumar Mangalam Birla's office before moving in

as president of Madura Garments.

Another contemporary case which has sent shockwaves through corporate circles is that of Deepak

Khetrapal, COO of Raymond. His decision to quit came as a shock to the board, which had met to consider

the company s annual financial performance for the fiscal ended March 31. After deliberating for over an

hour, it decided to accept his resignation. Khetrapal, 54, was hired two years ago to turn around thecompany, then making losses. He refused to give reasons, other than saying that he wanted to leave when

the going was good. This is the second high- profile resignation at Raymond in recent months. S

Raghunathan, President, finance, a high-profile lateral appointment, resigned early this year. He had come

from Hindustan Unilever but did not last for a year. Raymond recorded a net profit of Rs 6.6 crores in the

March quarter against a loss of Rs 239 crores a year-ago quarter on higher sales from the textile segment.



Reliance Retail too has seen a number of departures involving those in the rank of president and CEO of

late. As reported earlier, Raghu Pillai, President and CEO (operations, strategy and business

development), Reliance Retail, will quit by mid-year. The latest news is that Sanjeev Asthana, President

and Chief Executive of the agri business and food supply chain, will leave the company in May. It may be

noted that Reliance Retail undertook a major management restructuring late last year and hired about 20

expat executives, mostly from Tesco, Thailand. This team, headed by CEO Gwyn Sundhagul, has been

revamping the value format, the company s flagship business.

Meanwhile, at Marks & Spencer Reliance India, Martin Jones has been appointed the new CEO. He joined

Marks & Spencer UK in 1997 and has worked in various roles within retail operations and buying and

merchandising. He succeeds Mark Ashman who headed the joint venture between Marks & Spencer and

Reliance Retail since it was set up in 2008.

In a related news V D Wadhwa has become the new MD and CEO of Timex Group India, a subsidiary of

Timex Group USA. He has been with the company since its inception and is credited with the re-establishment of the entire distribution and retail base after the split of the Timex joint venture from the

Tata

Given the current state of the industry, just-style has completely revised its estimates and forecasts of the

global luxury apparel market. The authors have revisited all of the market value data tables for the key

luxury markets. On balance, this is believed to provide readers with a more realistic framework for the

market forecasts. The luxury apparel segment has grown globally at a pace of almost 15% a year since

2003, far outstripping the growth rate of more mainstream apparel sectors. This apparent contradiction

of basic macroeconomics is due to changes in human behaviour, as well as a convergence of trends and

tastes of many disparate cultures. As a result, the luxury apparel sector has adapted to this and

proactively sets the t--Christian Dior Couture

--Richemont --Krizia

--Gucci Group (Pinault-Printemps-Redoute)

--Chanel

--Marzotto

--Calvin Klein

--Armani

--Polo Ralph Lauren--Hermes

--Coach

--Burberry

--Escada

--Jean-Paul Gaultier



The luxury market is back and stronger than ever, growing at roughly 10-15% annually.

With the number of global millionaires increasing to 8.2 million, greater consumer confidence in the

global economy, and line extensions that bring high-end labels to the hands of mass consumers; future

growth is a given for luxury fashion houses that innovate. Growth will also be fuelled by the numerous

countries worldwide whose consumption for luxury fashion outweigh both salary and available luxury

options, and whose economies are growing rapidly.

MAJOR PLAYERS OF FASHION AND APPAREL INDUSTRIES

A P Fashions, Kolkata

A V Birla Group, Mumbai

A V Thomas, Chennai

Abhishek Industries, Ludhiana

Adani Exports Ltd., Ahmedabad

Agrawal Polyfil Pvt. Ltd., Mumbai

Alok Industries Ltd., Mumbai

Arvind Brands Ltd, Bangalore

Arvind Mills Limited, Ahmedabad

Ashima Group, Ahmedabad

ATE Marketing Pvt Ltd, Mumbai

ATL Textiles, Mumbai

Autofit Pvt. Ltd., New delhi

Best & Crompton Engg.(Texmaco)

Bindal Group, Surat

BNT Connections, Chennai

Bombay Dyeing, Mumbai

Carpet Export Promotion Council, Noida

Chandra Automobile, Coimbatore

Chandra Textiles, Tamil Nadu

Cheema Spintex, Chandigarh

Chemplast (Sanmar) Group, Madras

Chenab Textile Mills, New Delhi

Cheslind Textiles Limited, Bangalore

CMAI, Mumbai

Creative Home Fashions, Noida

Creative Outerwear, Mumbai

Damanganga Garments, Gujarat

DCM Shriram Group, Delhi

Mereena Creations, Bangalore

Meridean Apparels Ltd, Chennai

MGK Impex Pvt. Ltd., Bangalore

Mittal Clothing, Bangalore

Mittal International

Modipon, Modinagar

Modipon Fibers, Modinagar

Morarjee Mills, Mumbai

Nachmo Knitex Ltd, Ahmedabad

Natural Textiles Ltd., Bangalore

New India Sugar Mills Ltd, Kolkata

Niryat Sam Apparels (I) Ltd., Delhi

OAK Investment Partners, Minneapolis

Orient Craft Ltd., New Delhi

Panorama Exports, New Delhi

Parko Overseas Exports, New Delhi

Pearl Global Limited, Delhi

Phoenix Injection, Sri Lanka

Phulchand Exports Ltd., Mumbai

Picup, Lucknow

Pioneer, UK

Prateek Apparels, Bangalore

Premier Fine Yarns, Coimbatore

Primero Intimates, Coimbatore

Priyadarshini Spinning Mills Ltd, Hyderabad

PS Apparels, Chennai

R R Fashions Fabrics

Rajasthan Spinning & Weaving Mills, Rajasthan

Raymonds, Mumbai



Department of Commerce, New Delhi

Eastman Exports, Tirupur

Emperor Trading Co., Tamilnadu

OVERVIEW OF APPAREL INDUSTRY The apparel industry covers all those companies that are largely engaged in producing various types of

garments. The clothing that is manufactured includes kid's clothing, men's clothing and women's clothing.

In this industry, manufactures produce finished clothing products primarily made from natural and

artificial fibers like silk, wool, cotton, lycra and denim. This industry also plays a key role for the world

economy in terms of investment, revenue, trade and employment generation.

Apparel manufacturing is one of the most desired business today. With the advancements in the

technology, there are huge scope for the apparel industry to make great strides soon and reap in rich

rewards.

In apparel section, we have designer clothes by famous fashion designers that are selling like real hot

cakes but then they are definitely expensive like Tommy Hilfiger, Marks Spencer, Peter England, Ralph

Lauren Polo brands. These designer funky ensemble collections are expensive but act as a symbol of

passion and courage. They enhance your personality and make you feel more confident about yourself.

At those times the downturn was not only being experienced in the price tags of the garments, but also in

the business of fashion shows. More models, choreographers, make-up men, hairstylists and designers

streamed down into their business.

The fun and party time in the Indian fashion scenario had not ended with this, but continued. It was a

point, where it reached at a certain steady level and from there, in the beginning of the 21st centaury,

with new designers and models and some sensible designing; the fashion hype accelerated its speed.

Indian fashion industry spreads its wings globally

For the global fashion industry, India is a very big exporter of fabrics and accessories. All over the world,

Indian ethnic designs and materials are considered as a significant facet for the fashion houses and

garment manufacturers. In fabrics, while sourcing for fashion wear, India also plays a vital role as one of

the biggest players in the international fashion arena.

India's strengths not only depend on its tradition, but also on its raw materials. World over, India is the

third largest producer of cotton, the second largest producer of silk and the fifth largest producer of man-

made fibres.

In the international market, the Indian garment and fabric industries have many fundamental aspects that



are compliant, in terms of cost effectiveness to produce, raw material, quick adjustment for selling, and a

wide ranges of preference in the designs in the garments like with sequin, beadwork, aari or chikkon

embroidery etc, as well as cheaper skilled work force. India provides these fashion garments to the

international fashion houses at competitive prices with shorter lead time and an effective monopoly in

designs which covers elaborated hand embroidery - accepted world over.

India has always been considered as a default source in the embroidered garment segment, but the

changes of rupee against dollar has further decreased the prices, thereby attracting buyers. So the

international fashion houses walk away with customized stuff, and in the end crafted works are sold at

very cheap rates.

As far as the market of fabrics is concerned, the ranges available in India can attract as well as confuse the

buyer. A basic judgmental expectation in the choosing of fabrics is the present trend in the international

market. Much of the production tasks take place in parts of the small town of Chapa in the Eastern state of

Bihar, a name one would have never even heard of. Here fabric making is a family industry, the rangesand quality of raw silks churned out here belie the crude production methods and equipment used-

tussars, matka silks, phaswas, you name it and they can design it. Surat in Gujarat, is the supplier of an

amazing set of jacquards, moss crepes and georgette sheers - all fabrics utilized to make dazzling

silhouettes demanded world over. Another Indian fabric design that has been specially designed for the

fashion history is the "Madras check" originally utilized for the universal "Lungi" a simple lower body

wrap worn in Southern India, this product has now traversed its way on to bandannas, blouses, home

furnishings and almost any thing one can think of.

Recently many designers have started using traditional Indian fabrics, designs and cuts to enhance theirfashion collections. Ethnic Indian designs with batik cravat, tie-and-dye or vegetable block print is 'in' not

just in India but all across the world.

In India, folk embroidery is always associated with women. It is a way of their self expression, and they

make designs that depict their native culture, their religion and their desires. Women embroider clothes

for their personal use, and the people linked with the pastoral profession prepare embroidered animal

decorations, decorative covers for horns and foreheads and the Rabaris of Kutch in Gujarat do some of the

finest embroidery. Embroidered pieces are made during the festivals and marriages, which are appliqué

work called 'Dharaniya'. One of the significant styles of Saurashtra is 'Heer' embroidery, which has bold

geometric designs, woven on silks. The Mutwa women of the Banni area of Kutch have a fascinating

embroidery where they make fine embroidery works with designed motifs and mirrors in the size of

pinheads, the Gracia jats use geometric designs on the yoke of long dresses. Moreover, the finest of quilts

with appliqué work are also made in Kutch.

Garments embellishment with bead work is another area where it in demand in the international market.

Beads are used to prepare garlands and other accessory items like belts and bags and these patterns now



available for haute couture evening wear too.

According to a survey, in recent times Indian women have given up their traditional sari for western

wears like t-shirts and shorts, as they feel more comfortable in skirts and trousers instead of saris and

salwar kameez. It's been noted that women spend just $165 million on trousers and skirts against 1.74

billion dollars spent by men on trousers. With more women coming out to work, the (combined) branded

trouser and skirts market has been increasing at a whopping 27 per cent in sales terms. Women feel that

Western clothing is more suitable, particularly when working or using public transportation. Many

corporate offices are also in favor of their employees wearing Western wear.

In India, Western inspiration is increasing due to the influence of TV and films. Besides, shopping malls

selling branded clothes have also mushroomed in India and are fascinating the youngsters. Recently,

designer wear is being promoted through store chains such as Shopper's Stop, Pantaloons, Westside, etc.

Companies such as Raymond and TCNS have also set up their exclusive stores for designer wear such as

Be: and W.

The market of India fashion industry

Recently, a report stated that the Indian fashion industry can increase from its net worth of Rs 200 crore

to Rs 1,000 crore in the next five to ten years. Currently, the worldwide designer wear market is

amounted at $35 billion, with a 9 per cent growth rate, with the Indian fashion industry creating hardly

0.1 per cent of the international industry's net worth.

According to approximations, the total apparel market in India is calculated to be about Rs 20,000 crore.

The branded apparel market's size is nearly one fourth of this or Rs 5,000 crore. Designer wear, in turn,covers nearly about 0.2 per cent of the branded apparel market.

At present, the largest sales turnover within the designer wear segment is about Rs25 crore, with other

well-known names having less turnovers of Rs10-15 crore. In view of the prospects of the Indian fashion

industry for growth, the figures are not very hopeful.

The G rowth and Trends of Fashion and Apparel Industries

y

The organized market for designer apparel is about Rs 250 crore

y

Designer wear calculates to less than 1 per cent of the apparel market

y

The global market for designer wear is 5 per cent of total apparel market

y

The global market for designer wear industry is largely dependent on the small-scale sector

y

Consumers for designer wear have a yearly household income of Rs 10 lakh-plus. There are 3

lakh such households developing at 40-45 per cent

y

Designer wear industry is projected to increase to Rs 1,000 crore by 2015.

y

More than 81 per cent of the population below 45 years of the age is fashion conscious.



Many fashion designers and management experts foresee an average growth of about 10-12 per cent for

the Indian fashion industry in the coming years. Though, the growth rate could be more than 15 per cent,

if infrastructural and other logistical bottlenecks and drawbacks are over come.

India needs more effort to overcome

However, despite the benefits available in India there are also some disadvantages. India is not a

remarkable player in the global market with reference to brands because of its inability to add value to

products. This is observed by the fact that nearly 50 per cent of its exports are apparel and made-ups

where value addition is essential. Likewise, 75 per cent of domestic apparel market is commoditized and

unbranded and very few Indian brands do survive in the foreign markets. Evidently, the Indian market

has not made a strong stand and hence it is difficult to make Indian brands that can compete with global

brands in India.

Another reason for the fashion industry's inadequate growth is the limited experience of the designersand the platform they are offered. The insignificance stalks from the reality that most of the young talent

is hired by the bigger names to work in their studios, thus imprinting their work with the label of the big

designers.

Though performing individual presentation is not an alternative choice for most of the young talent,

because of the limitation of finance, a beginner designer's name fails to come to the forefront.

Another thing, with regards to the ramp, is what the designers offer is barely appropriate to be worn

ordinarily. You'll see there's dissimilarity between what is there on the ramp and what the Page Threecrowd wears. Some believe at present the fashion is in, but the tendency hasn't changed much as it is the

old ones coming back. We have had short kurtas, long kurtas, flowing skirts, etc. coming back into fashion

with only a new variety of designs.

Many management consultants and professionals believe that the Indian fashion industry will be boosted

if the new comers are paid proper attention. What they require is more support so that their work gets

due recognition. According to the consultants and professionals there should be a panel of people who

choose designers for showcasing according to their work and not their name or who they've worked for

earlier, and hence selection would be purely based on quality. Besides this, the panel of judges should

comprise of people from the fashion schools rather than designers.

It has been observed that the media-hype around the big designers and blatant commercialism has

hindered business in the Indian fashion industry. No clear cut picture is provided about the feasibility of

the products. Basically it is only the famous names that are being talked of. What they offer is not quite

daily-wear. The entire focal point of the industry is on commercialism. The discussion is only regarding

how much is sold and for what price and nothing about the designs or styles.



Efforts to develop global fashion brands

It needs innovative designers, a seamless supply chain, control over retail and distribution and

concentration of quality while dealing with some image. While a few have accomplished something in the

west covering Tommy Hilfiger, Gucci, Zara, Armani, Versace, Ralph Lauren, etc, India has not been capable

to track on.

A serious reason for India not being successful has been its isolation in the fashion system. Each

stakeholder including designers, exporters, textile players and retail chains need to come together along

with the government to make sure that the position of Indian fashion is strong in the coming years.

There are various agencies and industry associations that can support in brand-building practice. Many of

these agencies require attractive resources and making a global image of Indian fashion rather than

independently trying to promote particular brands or textile segments.

Designers have a fundamental role to play in the future of Indian fashion scenario. There should hence be

an effective process for preparing these designers. This can be done by sponsoring exchange programs

with international schools, increasing participations in the fashion capitals of the world, motivating and

offering business incubation to new designers and rewarding efforts through proper design awards.

Even in India, well-known designers are incapable to tap finances from well-organized resources, since a

vital part of their assets are brands and design talent which are not measured in terms of money and

hence it becomes difficult to judge the value. This has severely inhibited their development and capabilityto raise retail existence across the country and abroad. The Indian government and related agencies

should also accept this aspect of textile, apparel and fashion industry sincerely if they need to see India on

the global fashion map.

Work in collaboration: designers-corporate efforts

The current possession of Calvin Klein by Philips Van Heusen and earlier holdings of Hugo Boss and

Valentino by Marzotto are some related examples in this segment. These examples strongly point out that

not only designers find such relationships important for development, but also corporates find these

attractive for rising their profitability and growth. Likewise deals in India could go a long way in

developing the brand values of corporates and designers.

If the above activities are successfully considered, India could have an extraordinary development in the

fashion industry, which could increase from a negligible size to Rs 8,000 crore in the coming decade.



CONCLUSION

In the 50s, 60s and 70s, the Indian fashion scenario was colorful and stylish, in the end of 20th century it

was quite subdued and with the beginning of the 21st century it has geared up and is still experiencing

the growth with many spectrums of colours. Though this industry is growing at a very good pace, besides

achieving a negligible share in the global market, still it needs to make severe efforts to stand amongst

international fashion market in various aspects.

Developing clusters

Making common infrastructure for functioning such as design and sampling, affluent treatment, product

testing, etc can help in increasing the capability of the clusters since noteworthy investments could be

made by the cluster itself rather than any single player.

Well-managed databases can help in decreasing search costs and through data mining, rating of players

can be done so as to make the procurement process easier for buyers. Cooperative marketing programs at different clusters can also support players to grow up in the value chain by mixing their strengths within

the cluster.

Cluster based battle in the fashion industry is characterized by the Italian industry. The National Chamber

for Italian Fashion for example, supports the development of the fashion clusters at Milan and Florence in

a well organized manner. Indian industry can learn a lot from Italy because India has a similar cluster

based scattered production base, but has been incapable to link it with design and branding capability.

If the above activities are successfully considered, India could have an extraordinary development in thefashion industry, which could increase from a negligible size to Rs 8,000 crore in the coming decade

Today, around 45% of the total textile exports in India account for ready-made garments. There are

various international brands which source readymade garments from the Indian markets.

The future of the garment industry in India does not look bleak; on the contrary it is quite promising. The

Indian garment industry alone provides employment to thousands of people, a high percentage among

who are young women. Therefore, the significance of the Indian garment industry cannot be ruled out

when it comes to employment generation and foreign exchange generation. The growth in the garment

industry will boost the growth of Indian economy.

At present, India is being considered as the next pioneer country in the readymade garment export

business. It is noticed that foreign buyers are keen on dealing with Indian garment exporters. In the face

of such demand, Indian garment manufacturers and exporters constantly have to maintain high quality in

finished products and continuously provide variations in style and designs to attract the attention of

prospective buyers.



Documents

UCI_Apparel