By Fenil Gutka, Vidya Dabholkar & Aditya sawant

1. Textile and apparel
industry
Sectoral Analysis

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. Global Statistics

4. Where is the Global Textile & Apparel
Industry Headed ?

5. Shift of Growth

6. Why is this Happening?

7. 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

8. 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

9. Indian Textile and Apparel Industry

10. 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

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 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.

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 based on Secondary
Research
 Price  Quality
 Fit  Durability
 Style/Design  Fabric
 Pattern  Convenience /Ease of use
 Colours  Easy to maintain
 Comfort

23. Value Parameters Based on 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 Distribution Channel –
Branded Clothing
Branded Clothing Warehouse
Distributer – Metro City or
Distributer for Rest of the State
Retail Outlets across the City

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

28. 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%

29. 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.

30. Multi brand Retail Distribution – Private
Labels
Pantaloons
stores across
the state
Warehouse -
Bhiwandi
Private Label
Manufacturing
Location (Job
work)

31. Multi brand Retail Distribution – 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. Thank You