2. APPAREL INDUSTRY
• Clothing industry or garment industry summarizes the types of trade and industry along the production and life chain of clothing and
garments, starting with the textile industry (producers of cotton, wool, fur, and synthetic fibre) via fashion industry to fashion retailers
up to trade with second-hand clothes and textile recycling.
• The producing sectors build upon a wealth of clothing technology some of which, like the loom, the cotton gin, and the sewing
machine heralded industrialization not only of the previous textile manufacturing practices.
• By the early 20th century, the industry in the developed world often involved immigrants in "sweat shops", which were usually legal
but were sometimes illegally operated.
• They employed people in crowded conditions, working manual sewing machines, and being paid less than a living wage.
• This trend worsened due to attempts to protect existing industries which were being challenged by developing countries in South East
Asia, the Indian subcontinent and Central America.
• Although globalization saw the manufacturing largely outsourced to overseas labor markets, there has been a trend for the areas
historically associated with the trade to shift focus to the more white collar associated industries of fashion design, fashion modeling
and retail.
• Areas historically involved heavily in the "rag trade" include London and Milan in Europe, and the SoHo district in New York City.
• There are considerable overlaps between the terms clothing-/garment-, textile- and fashion industry.
• The clothing sector is concerned with all types of clothes, from fashion to uniforms, e-textiles and workwear.
• Textile industry is less concerned with the fashion aspect but produces the fabrics and fibres that are required for tailoring.
• The fashion industry closely follows - and sets - fashion trends to always supply the latest in non-functional clothing.
3. APPAREL INDUSTRY IN INDIA
• Indian textiles and apparel have a history of fine craftsmanship and global appeal. Cotton, silk and denim from India are highly popular
abroad and with the upsurge in Indian design talent, Indian apparel too has found success in the fashion centres of the world.
• The Indian textile and apparel industry is one of the largest in the world with an enormous raw material and manufacturing base.
• The present domestic textile industry is estimated at US$ 33.23 billion and unstitched garments comprise US$ 8.307 billion.
• The industry is a significant contributor to the economy, both in terms of its domestic share and exports. It accounts for a phenomenal
14 per cent of total industrial production; around 4.78 per cent share in the country's total exports in 2013-14.
KEY MARKETS AND EXPORT DESTINATIONS:
THE MAIN MARKETS FOR INDIAN TEXTILE AND APPAREL EXPORTS ARE:
United States
European Union
Parts of Asia
Middle East
• In the near future, India's apparel exports to developed markets are expected to increase considerably. Apparel exports from India is
expected to reach US$ 82 billion by 2021 and total cloth production in India is expected to reach 112 billion square metres by FY17. In
2013-14, India exported apparels worth of US$ 14.93 Bn.
4. APPAREL EXPORT PROMOTION COUNCIL
The Apparel Export Promotion Council (AEPC) is the official body of apparel exporters that provides assistance to Indian exporters, as well as to importers/international buyers
choosing India as their preferred sourcing destination for garments.
INDIAN TEXTILES AND APPAREL INDUSTRY ANALYSIS
• The textile and apparel industry can be broadly divided into two segments - yarn and fibre, and processed fabrics and apparel. The domestic textile
industry in India is estimated to reach US$ 223 billion by 2021F from US$ 150 billion in November 2017, while cotton production in India is have reached
36.1 million bales in FY19.^ In FY19, growth in private consumption is expected to create strong domestic demand for textiles.#
• Increased penetration of organised retail, favourable demographics, and rising income levels are likely to drive demand for textiles. Cloth production
stood at 40.6 billion square metres (provisional) in FY19P*.India is the world's second largest exporter of textiles and clothing.
• Textile and apparel exports from India are expected to increase to US$ 82 billion by 2021. Exports of textiles and apparels from India reached US$ 24.90
billion in FY19*. Manmade garments remain the largest contributor to total textile and apparel exports from India, contributing 24.53 per cent to total
textile.
• Rising government focus and favourable policies is leading to growth in the textiles and clothing industry. The Ministry of Textiles is encouraging
investments through increasing focus on schemes such as Technology Up-gradation Fund Scheme (TUFS). Under the Union Budget 2018-19, Rs 2,300 (US$
355.27 million) crore have been allocated for TUFS and Rs 30 crore (US$ 4.63 million) for the Scheme for Integrated Textile Parks, under which there are 47
ongoing projects. In May 2018, textiles sector recorded investments worth Rs 27,000 crore (US$ 4.19 billion) since June 2017.The Cabinet Committee on
Economic Affairs (CCEA), Government of India has approved a new skill development scheme named 'Scheme for Capacity Building in Textile Sector
(SCBTS)'. The Government of India announced a Special Package to boost exports by US$ 31 billion, create one crore job opportunities and attract
investments worth Rs 800.00 billion (US$ 11.93 billion) during 2018-2020. As of August 2018 it generated additional investments worth Rs 253.45 billion
(US$ 3.78 billion) and exports worth Rs 57.28 billion (US$ 854.42 million). Cumulative FDI in the Indian textiles reached US$ 3.04 billion between April
2000 to September 2018. Under Union Budget 2019-20, Government of India allocated around Rs 5,831.48 crore (US$ 808.24 million) for the Ministry of
Textiles.
• The Directorate General of Foreign Trade (DGFT) has revised rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two
subsectors of Textiles Industry - Readymade garments and Made ups - from 2 per cent to 4 per cent. As of August 2018, the Government of India has
increased the basic custom duty to 20 per cent from 10 per cent on 501 textile products, to boost Make in India and indigenous production.
5. INTERNATIONAL APPAREL BUSINESS PATTERNS
• Garments have been perhaps the most international of consumer products dating back to the late 1800s when
Paris couturiers-led by the House of Worth-dictated the styles that affluent women around the world wore.
• Those garments were composed of rich, imported fabrics and trimmings: silks from China, woolens and velvets
from England, damasks and lace from Italy.
• Back then, representatives from the first department stores in the United States, Chicago's Marshall Field's, R.
H. Macy's in New York, and John Wanamaker in Philadelphia, voyaged to Paris in order to purchase haute
couture samples, that their workrooms translated into styles suitable for America's growing consumer society.
CLOTHING LICENSING LEADS TO GLOBALIZATION
• In the 1980s, the fashion boom popularized designer jeans and athletic shoes and accelerated the globalization
of fashion, as licensing became a lifeline to the fashion business, especially couture fashion houses.
• In fashion licensing, a design house collects a royalty payment between 3 percent to 10 percent of wholesale
volume, from an outside manufacturer who produces and markets the merchandise.
• Licensing enabled designers to put their trademarks on clothes, handbags, jewelry, shoes, and perfume quickly
and relatively painlessly.
• Licensing turned designers like Pierre Cardin and Calvin Klein into household names as they built billion dollar
empires marketing sofas, bedsheets, clocks, and even frying pans to an international marketplace.
6. INTERNATIONAL TRADE IMPACT
• This shift toward globalization is evident in trade statistics. In 1999, the five leading exporters
of clothing were China ($30.08 billion), Italy ($11.78 billion), Hong Kong ($9.57 billion), the
United States ($8.27 billion), and Germany ($7.44 billion).
• The five largest importers of clothing were the United States ($58.79 billion), Germany ($20.77
billion), Japan ($16.40 billion), the United Kingdom ($12.53 billion), and France ($11.58
billion). France, despite the continuing prominence of Paris in the world of fashion design, had
only $5.69 billion in clothing exports in 1999 (International Trade Centre, World Trade
Organization, 2001).
• Like McDonald's and Starbucks, fashion marketers have been forced to think globally in order
to cater to a cross section of international shoppers whom they now serve directly.
• No longer do consumers have to travel abroad to find the top brands, as Giorgio Armani,
Valentino, and Polo Ralph Lauren have blanketed the world with boutiques from Buenos Aires
to Tokyo.
7. MEDIA, TECHNOLOGY AND INTERNATIONAL CONSUMERS
• Thanks to the Internet, Hollywood, and cable television, there is not much difference between
consumers in Spain and those in the United States, who are all exposed to the same trends,
celebrity role models, and popular music simultaneously.
• Furthermore, globalization has leveled the playing field, enabling retailers from the Gap to Zara to
Target to compete in the multibillion-dollar fashion game, as these discount chains have learned to
master the mechanics of delivering fast fashion at rock bottom prices.
• Fashion entered a new era in the 1990s, as the world's buoyant high-tech industries broke the
pattern for formal dress codes. Jeans, khakis, and knitwear replaced suits as the new corporate
uniform.
• Seeking higher ground, the high fashion industry could no longer bank on dress-up clothes.
Marketers thus found a new hook to captivate consumers: accessories like handbags, shoes, and
watches, which could be plastered with showy designer logos and coordinated with casual clothes.
• Furthermore, accessories delivered higher profit margins than apparel, making them even more
attractive to fashion marketers.
8. CONCEPT BOARD TO FINISHED PRODUCT
• The process of bringing a new product to market can seem long and daunting, and might be enough to put you
off getting started. By breaking it down into 12 steps, you can see that it could be easier than you think to turn
your great idea into a final product.
STEP 1: PRODUCT CONCEPT
This is where you begin to flesh out your basic idea. Think about what you want your product to be, what its use
is, and who would use it. Create sketches and notes of your initial concept.
STEP 2: RESEARCH
There are two important things to research at this stage: firstly, demand. If your product solves a problem, are a
lot of people looking for a solution to that problem? Can you see a gap that is desperate to be filled? Secondly, are
there products out there already that are similar to yours? If so, it doesn’t necessarily mean your idea won’t be a
success, but how will you improve on what is already available?
9. STEP 3: PRODUCT DESIGN DEVELOPMENT
At this stage, you can begin to develop your product design. There are a number of things you must consider here:
• Have a firm idea of your product’s function
• Think about how strong and long-lasting your product will be
• How reliable is the product?
• What will the manufacturing costs be, and does this allow room for profit without a price that will put buyers off?
• Think about the complexity of manufacture, factoring in how many parts each unit is made from
• Is your product single-use, or long lasting?
• What are the materials needed for production? This point may require further research, so allow for this
STEP 4: RESEARCH AND DEVELOPMENT OF THE FINAL DESIGN
Edit your designs as necessary. Include dimensions and materials, develop the designs to a high standard and include all vital details. If
your product is comprised of multiple parts, try to keep these to a minimum to keep manufacturing costs down and speed up assembly.
STEP 5: CAD
Computer-aided design. This process uses 3D rendering software in order to produce a computer model of your final design. This can help
to reveal any potential issues that weren’t evident from the product design itself. Take this opportunity to return to the final design stage
and deal with any problems now.
10. STEP 6: CAM
Computer-aided manufacturing. This is where you get to see a physical prototype of your product, manufactured by a
computer-guided system.
STEP 7: PROTOTYPE TESTING
Make sure your testing is thorough and critical. Don’t be afraid to be honest with yourself about any problems or flaws
with your design, as it can only help your end product be the best it possibly can. If you need to, go back to step 3 and
work out the kinks.
STEP 8: MANUFACTURING
If you made it through prototype testing without revealing any problems that need to be worked on, it’s time to
manufacture your product. There may be some further decisions to make here, such as materials, batch numbers, and
the manufacturer itself. Think about what keeps costs low while maintaining the quality you want, so that you can
maximise profits.
STEP 9: ASSEMBLY
Important choices to make at this stage may involve further materials, such as glue. Keep costs in mind, but remember
that using ineffective materials may negatively affect your eventual sales. Don’t let the quality slip by cutting corners
now.
11. STEP 10: FEEDBACK AND TESTING
Now your product has been manufactured and assembled, you can continue testing it rigorously.
There are many ways to do this, from assembling focus groups to asking family and friends, but ensure
you take note of feedback and allow free and honest criticism. Allowing for further development to
continue improving your product is a sensible move.
STEP 11: PRODUCT DEVELOPMENT
Consider going back to your product development if you need to make important improvements or
address any unforeseen issues, although your manufacturing company should have pointed out any
serious problems before now. Don’t shy away from taking the time to get your product just right.
STEP 12: FINAL PRODUCT
Now you have successfully taken your product from concept to a polished final product, it’s time to
turn your attention to marketing, and the practical side of getting it into the hands of customers. The
more you sell, the more you can afford to put into manufacturing larger batches, meaning a larger
profit next time around!
