Textile and apparel
industry
Sectoral Analysis
History
   20,000 BC: In Europe people started making warm clothes
    such as trousers, coats and boots from animal skins using
    bone needles .
   1200 BC: Men in Egypt wear loincloths and a kind of kilt.
    Women wear dresses with shoulder straps. Both sexes wear
    jewellery.
   400 BC: Women in Greece wear long dresses that cover most
    of their bodies. Men wear tunics and cloaks.
   http://www.timetoast.com/timelines/history-of-clothing-final
Global Statistics
Where is the Global Textile & Apparel
Industry Headed ?
Shift of Growth
Why is this Happening?
Why is this Happening?
   January 1, 2005 the Agreement on
    Textiles and Clothing that regulated the
    global apparel and textile industry for
    30 years ended

   This has lead to a Global
    Reconfiguration of the Apparel Industry.

   Massive Industry move to China owing
    to the “survival of the cheapest”
    approach
Rising Market Opportunity for
Developing Countries

  Most developed countries will see continued decline of their
   textile and apparel industry and create fresh opportunity of up
   to US$ 140 Billion for exports for developing countries by
   2020
 In addition, an opportunity of approx US $360‐370 Billion
   likely to be created due to rise in demand.
 Hence an additional
market opportunity of
 ~US$500 Billion
likely to be created by
 2020
Indian Textile and Apparel Industry
According to the Annual Report 2010-
11 of the Ministry of Textiles.
   The industry currently contributes about 14 per cent to
    industrial production.
   4 per cent to GDP.
   17 per cent to the country’s export earnings.
   Direct employment to more than 35 million people.




Source : Indian Brand Equity Foundation - http://www.ibef.org
BRAND              TURNOVER      BUSINESS
                   (USD)

Raymond            279 million   textiles, retail, engineering goods,
                                 personal care and prophylactics

Bombay Dyeing      231 million   Suitings, shirtings, sarees, towels, bed
                                 linen and men’s apparel; significant
                                 exporter of polycotton blended fabrics
                                 and made ups
Arvind             338 million   denim fabric, cotton and blended fabric,
                                 knitted fabric, voiles, apparel


Vardhaman group    400 million   acrylic fibre, cotton, synthetic and
                                 blended spun yarns, grey and processed
                                 fabrics, cotton and synthetic sewing
                                 threads
Gokaldas Exports   180 million   Supplies to more than 100 retailers and
ltd.                             fashion brands across 39 countries
BRAND               TURNOVER      BUSINESS
                    (USD)
Welspun             132 million   Amongst the top 3 terry towel producers
                                  in the world. Also include cotton yarns,
                                  polyester filament yarn, bathrobes,
                                  buttons and saw pipes.
Himatsingka         32 million    Leading producer of silk yarns and fabric.
                                  Also retailing of home furnishings in India
                                  and manufacture of bed linen products for
                                  domestic and export market

Aditya Birla Nuvo   577 million   textiles include viscose filament yarn and
                                  branded apparel; other interests include
                                  insurance, telecom, IT, carbon black
Alok Industries     303 million   producer of polyester yarns, fabrics,
ltd.                              garments and textiles

Century             95 million    The largest composite textile mill in India
Industries ltd.                   for producing cotton fabric. its products
                                  include viscose filament yarn, viscose
                                  tyre/ industrial yarn, denim, cement and
                                  pulp and paper
   Growing at a compound annual growth rate (CAGR) of about
    20 per cent the kids apparel market in India is likely to reach
    Rs. 80,000 crore by 2015 from the current level of about Rs
    38,000 crore, the apex industry body said.
   Rising media exposure, high disposable income of the
    parents, peer pressure, growing fashion and brand
    consciousness among children are together driving the growth
    of kids apparel market in India, according to the Associated
    Chambers of Commerce and Industry of India (ASSOCHAM).
   The market for kids' apparel in India exceeds Rs. 38,000
    crore, of which around Rs. 5,000 crore is constituted by
    branded kids' wear. The kids' wear market is growing at the
    rate of 20% per annum, which makes it one of the fastest
    growing markets.
 The branded children's wear segment is presently worth Rs
  4,000 to Rs 5,000 crore, it is growing at more than
  25%,"added ASSOCHAM.
  The market for kids' apparel in India exceeds Rs. 38,000
  crore, of which around Rs. 5,000 crore is constituted by
  branded kids' wear. The kids' wear market is growing at the
  rate of 20% per annum, which makes it one of the fastest
  growing markets.
Raw           Textile
                          Material      machiner
                         providers          y               Farmer
      Males                             manufact               s
                                          urers                        Female
                                          Kids                           s
                             Film
                           industry                Distri
               Fashion                             buter
Online         industry
portail                                                      Chemi
                                                               cal         Dye
  s                                                                      industr
                                                             industr
                                                                y           y
                                     APPAREL
                Trader
                   s
Logistic
                                                             Sports       Mercha
   s
                                                                           ndise
                     Retail
                     outlets                     Custom
                                     Excise        s
                                      dept.                     Detergent
          Occasion                                                fabric
             s                                                 conditioning
                                                               manufacture
                                                                    rs
OCCASSIONS:                  SPORTS:
Marriages                         Swimming
Naming ceremony                   Cricket
Festivals:                        Tennis
 Diwali, Id, Sankrant, Rakshab   Football
  andhan, Gudi Padva              Hockey
Summer Vacations                  Badminton
Lost wt or gained wt.             Swimming
Sales and discounts
RETAIL STORES:           MANUFACTURER:

   Malls                        Yarn manufacturer
   Company owned showrooms      Garment manufacturer
   Retail outlets               Clothes manufacturer
Stakeholder – Males / Females
   Babies: 0 – 1 yrs
   Toddlers: 2 – 4 yrs
   Pre – school: 4 – 5 yrs
   Primary school: 6 – 10 yrs
   Secondary school: 11 – 16 yrs
   Junior College: 17 – 18 yrs (Arts, Science, Commerce)
   Graduation college: 19 – 21 yrs (B.A; B. Comm; B.E, B. Sc.,
    LLB, M.B.B.S.)
   Professional college: 22 – 25 (MBA, Merchant Navy, M.Sc,
    Hotel Management)
   Professionals: 26 – 64 yrs
   Senior Citizens: 65+ yrs
Stakeholder – Males / Females
Professionals (25 – 64 yrs)      Office Executives
 Security Guards                Sweepers
 Police                         Traveller
 Waiter
 Teacher
 Factory Worker
 Sales Executive
 Army / Navy / Air force
 Nurse
 Air Hostess
 Tour Guides
Key Global Players
   ASOS Plc
   Bon-Ton Stores Inc
   Brown Shoe Company                Gap Inc
   Buckle Inc                        Gucci Group
   C&A                               H&M Hennes & Mauritz AB
   Cato Corporation                  Inditex SA
   Children's Place Retail Stores    JC Penney Company Inc
    Inc                               Liz Claiborne Inc
   Collective Brands                 Macy's Inc
    Performance + Lifestyle
    Group
Key Global Players
   Maidenform Brands Inc              Wal-Mart Stores Inc
   Marks & Spencer Group Plc          Warnaco Group Inc
   Nike Inc                           Wet Seal Inc
   Perry Ellis International Inc      Zara
   Phillips-Van Heusen
    Corporation
   Puma AG
   Saks Incorporated
   Stage Stores Inc
   TJX Companies Inc
   Uniqlo
   VF Corporation
Value Parameters based on Secondary
Research
   Price             Quality
   Fit               Durability
   Style/Design      Fabric
   Pattern           Convenience /Ease of use
   Colours           Easy to maintain
   Comfort
Value Parameters Based on Primary
Research

  Fashion


  Fads and Trends


  Uniqueness


  Variety


  Occasion based clothing
Strategy Canvas
10
 9
 8
 7                Raymonds Ltd
 6
 5                Madura Fashion and
 4                Lifestyle
 3
                  Arvind Mills
 2
 1
 0                Nalli Sarees

                  Mango
Front End Channels



                                                            Front End Distribution Channels




      Retail Outlets                 Franchisee                   Multi brand Outlets         Mega discount Stores   E – Retailing




                                                                         Eg.:
                                                            Pantaloons, Globus, Shoppers
 Eg.: Local Apparel Stores   Eg: Spykar, Levi’s, Provogue           Stop, Lifestyle           Eg.: Loot, Megamart
Retail Outlets Distribution Channel –
Branded Clothing


Branded Clothing Warehouse


   Distributer – Metro City or
   Distributer for Rest of the State


       Retail Outlets across the City
Retail Outlets Distribution Channel – Local
Garment Manufacturer



Local Garment
Manufacturer


       Retail Outlets
       across the City
Share Given at Each Stage
Branded Clothing:

 Distributors:
10 – 13 % : If the costs for distribution are borne by the
  distributor
2 – 3%: If the costs for distribution are borne by the Company

   Retailers: 20 – 40% (Depending on the Brand and its
    promotions and advertising)

Locally Manufactured Clothing:

   Retailers Margin: 50 – 80%
Customer Acquisition Techniques for Retail
Outlets
   Festive Discounts on Local Garments
   Discounts for regular customers
   End of Season stock clearance sale
   Promotions and Advertisements by Companies.
Multi brand Retail Distribution – Private
Labels




                                      Pantaloons
                                      stores across
                                      the state
                        Warehouse -
                        Bhiwandi


        Private Label
        Manufacturing
        Location (Job
        work)
Multi brand Retail Distribution – Brands




                  Pantaloons
                                Pantaloons Outlet
                  Warehouse


                                    Specific
Brand Warehouse                 Pantaloons Outlet
                                  as required
Margins
Private Label Margins: 40 – 55%
Brand Margins: 20 – 25% (Varies based on Logistics
 selected)
Margins after considering Store Costs: 15 – 20%
Customer Relationship Management
   Discount / Point Cards (Eg. Green Card –
    Pantaloons, First Citizen Card – Shoppers
    Stop, Lifestyle Card)
   Advertisements
    (Newspapers, Hoardings, Pamphlets, FM, Magazine
    s)
   Promotional Offers
   Customer Relationship – handled store to store
   Sending out greetings and discount coupons based
    on the database.
Thank You

Apparel industry sectoral analysis - ppt 1

  • 1.
  • 2.
    History  20,000 BC: In Europe people started making warm clothes such as trousers, coats and boots from animal skins using bone needles .  1200 BC: Men in Egypt wear loincloths and a kind of kilt. Women wear dresses with shoulder straps. Both sexes wear jewellery.  400 BC: Women in Greece wear long dresses that cover most of their bodies. Men wear tunics and cloaks.  http://www.timetoast.com/timelines/history-of-clothing-final
  • 3.
  • 4.
    Where is theGlobal Textile & Apparel Industry Headed ?
  • 5.
  • 6.
    Why is thisHappening?
  • 7.
    Why is thisHappening?  January 1, 2005 the Agreement on Textiles and Clothing that regulated the global apparel and textile industry for 30 years ended  This has lead to a Global Reconfiguration of the Apparel Industry.  Massive Industry move to China owing to the “survival of the cheapest” approach
  • 8.
    Rising Market Opportunityfor Developing Countries  Most developed countries will see continued decline of their textile and apparel industry and create fresh opportunity of up to US$ 140 Billion for exports for developing countries by 2020  In addition, an opportunity of approx US $360‐370 Billion likely to be created due to rise in demand.  Hence an additional market opportunity of ~US$500 Billion likely to be created by 2020
  • 9.
    Indian Textile andApparel Industry
  • 10.
    According to theAnnual Report 2010- 11 of the Ministry of Textiles.  The industry currently contributes about 14 per cent to industrial production.  4 per cent to GDP.  17 per cent to the country’s export earnings.  Direct employment to more than 35 million people. Source : Indian Brand Equity Foundation - http://www.ibef.org
  • 11.
    BRAND TURNOVER BUSINESS (USD) Raymond 279 million textiles, retail, engineering goods, personal care and prophylactics Bombay Dyeing 231 million Suitings, shirtings, sarees, towels, bed linen and men’s apparel; significant exporter of polycotton blended fabrics and made ups Arvind 338 million denim fabric, cotton and blended fabric, knitted fabric, voiles, apparel Vardhaman group 400 million acrylic fibre, cotton, synthetic and blended spun yarns, grey and processed fabrics, cotton and synthetic sewing threads Gokaldas Exports 180 million Supplies to more than 100 retailers and ltd. fashion brands across 39 countries
  • 12.
    BRAND TURNOVER BUSINESS (USD) Welspun 132 million Amongst the top 3 terry towel producers in the world. Also include cotton yarns, polyester filament yarn, bathrobes, buttons and saw pipes. Himatsingka 32 million Leading producer of silk yarns and fabric. Also retailing of home furnishings in India and manufacture of bed linen products for domestic and export market Aditya Birla Nuvo 577 million textiles include viscose filament yarn and branded apparel; other interests include insurance, telecom, IT, carbon black Alok Industries 303 million producer of polyester yarns, fabrics, ltd. garments and textiles Century 95 million The largest composite textile mill in India Industries ltd. for producing cotton fabric. its products include viscose filament yarn, viscose tyre/ industrial yarn, denim, cement and pulp and paper
  • 13.
    Growing at a compound annual growth rate (CAGR) of about 20 per cent the kids apparel market in India is likely to reach Rs. 80,000 crore by 2015 from the current level of about Rs 38,000 crore, the apex industry body said.  Rising media exposure, high disposable income of the parents, peer pressure, growing fashion and brand consciousness among children are together driving the growth of kids apparel market in India, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).  The market for kids' apparel in India exceeds Rs. 38,000 crore, of which around Rs. 5,000 crore is constituted by branded kids' wear. The kids' wear market is growing at the rate of 20% per annum, which makes it one of the fastest growing markets.
  • 14.
     The brandedchildren's wear segment is presently worth Rs 4,000 to Rs 5,000 crore, it is growing at more than 25%,"added ASSOCHAM. The market for kids' apparel in India exceeds Rs. 38,000 crore, of which around Rs. 5,000 crore is constituted by branded kids' wear. The kids' wear market is growing at the rate of 20% per annum, which makes it one of the fastest growing markets.
  • 15.
    Raw Textile Material machiner providers y Farmer Males manufact s urers Female Kids s Film industry Distri Fashion buter Online industry portail Chemi cal Dye s industr industr y y APPAREL Trader s Logistic Sports Mercha s ndise Retail outlets Custom Excise s dept. Detergent Occasion fabric s conditioning manufacture rs
  • 16.
    OCCASSIONS: SPORTS: Marriages Swimming Naming ceremony Cricket Festivals: Tennis  Diwali, Id, Sankrant, Rakshab Football andhan, Gudi Padva Hockey Summer Vacations Badminton Lost wt or gained wt. Swimming Sales and discounts
  • 17.
    RETAIL STORES: MANUFACTURER:  Malls  Yarn manufacturer  Company owned showrooms  Garment manufacturer  Retail outlets  Clothes manufacturer
  • 18.
    Stakeholder – Males/ Females  Babies: 0 – 1 yrs  Toddlers: 2 – 4 yrs  Pre – school: 4 – 5 yrs  Primary school: 6 – 10 yrs  Secondary school: 11 – 16 yrs  Junior College: 17 – 18 yrs (Arts, Science, Commerce)  Graduation college: 19 – 21 yrs (B.A; B. Comm; B.E, B. Sc., LLB, M.B.B.S.)  Professional college: 22 – 25 (MBA, Merchant Navy, M.Sc, Hotel Management)  Professionals: 26 – 64 yrs  Senior Citizens: 65+ yrs
  • 19.
    Stakeholder – Males/ Females Professionals (25 – 64 yrs)  Office Executives  Security Guards  Sweepers  Police  Traveller  Waiter  Teacher  Factory Worker  Sales Executive  Army / Navy / Air force  Nurse  Air Hostess  Tour Guides
  • 20.
    Key Global Players  ASOS Plc  Bon-Ton Stores Inc  Brown Shoe Company  Gap Inc  Buckle Inc  Gucci Group  C&A  H&M Hennes & Mauritz AB  Cato Corporation  Inditex SA  Children's Place Retail Stores  JC Penney Company Inc Inc  Liz Claiborne Inc  Collective Brands  Macy's Inc Performance + Lifestyle Group
  • 21.
    Key Global Players  Maidenform Brands Inc  Wal-Mart Stores Inc  Marks & Spencer Group Plc  Warnaco Group Inc  Nike Inc  Wet Seal Inc  Perry Ellis International Inc  Zara  Phillips-Van Heusen Corporation  Puma AG  Saks Incorporated  Stage Stores Inc  TJX Companies Inc  Uniqlo  VF Corporation
  • 22.
    Value Parameters basedon Secondary Research  Price  Quality  Fit  Durability  Style/Design  Fabric  Pattern  Convenience /Ease of use  Colours  Easy to maintain  Comfort
  • 23.
    Value Parameters Basedon Primary Research Fashion Fads and Trends Uniqueness Variety Occasion based clothing
  • 24.
    Strategy Canvas 10 9 8 7 Raymonds Ltd 6 5 Madura Fashion and 4 Lifestyle 3 Arvind Mills 2 1 0 Nalli Sarees Mango
  • 25.
    Front End Channels Front End Distribution Channels Retail Outlets Franchisee Multi brand Outlets Mega discount Stores E – Retailing Eg.: Pantaloons, Globus, Shoppers Eg.: Local Apparel Stores Eg: Spykar, Levi’s, Provogue Stop, Lifestyle Eg.: Loot, Megamart
  • 26.
    Retail Outlets DistributionChannel – Branded Clothing Branded Clothing Warehouse Distributer – Metro City or Distributer for Rest of the State Retail Outlets across the City
  • 27.
    Retail Outlets DistributionChannel – Local Garment Manufacturer Local Garment Manufacturer Retail Outlets across the City
  • 28.
    Share Given atEach Stage Branded Clothing:  Distributors: 10 – 13 % : If the costs for distribution are borne by the distributor 2 – 3%: If the costs for distribution are borne by the Company  Retailers: 20 – 40% (Depending on the Brand and its promotions and advertising) Locally Manufactured Clothing:  Retailers Margin: 50 – 80%
  • 29.
    Customer Acquisition Techniquesfor Retail Outlets  Festive Discounts on Local Garments  Discounts for regular customers  End of Season stock clearance sale  Promotions and Advertisements by Companies.
  • 30.
    Multi brand RetailDistribution – Private Labels Pantaloons stores across the state Warehouse - Bhiwandi Private Label Manufacturing Location (Job work)
  • 31.
    Multi brand RetailDistribution – Brands Pantaloons Pantaloons Outlet Warehouse Specific Brand Warehouse Pantaloons Outlet as required
  • 32.
    Margins Private Label Margins:40 – 55% Brand Margins: 20 – 25% (Varies based on Logistics selected) Margins after considering Store Costs: 15 – 20%
  • 33.
    Customer Relationship Management  Discount / Point Cards (Eg. Green Card – Pantaloons, First Citizen Card – Shoppers Stop, Lifestyle Card)  Advertisements (Newspapers, Hoardings, Pamphlets, FM, Magazine s)  Promotional Offers  Customer Relationship – handled store to store  Sending out greetings and discount coupons based on the database.
  • 34.