A Look On Apparel Industry

The Indian Apparel Industry has an overwhelming presence in the economic life of the country. It is one

of the earliest industries to come into existence in the country. The sector has a unique position

as a self-reliant industry, from the production of raw materials to the delivery of end products,

with considerable value-addition at every stage of processing Apart from providing one of the basic

necessities of life, the apparel industry also plays a pivotal role through its contribution to industrial

output, employment generation, and the export earnings of the country. Currently, it contributes about 14

percent to industrial production, 4 percent to the GDP, and 17 percent to the country’s export

earnings. It provides direct employment to over 35 million people.5

2.2 MARKET SIZE:

The Indian apparel industry is estimated to be worth Rs. 3,270 billion in 2011-12 and is expected

to grow at a compounded annual growth rate of 8.7 per cent till 2016. The growth would

primarily be driven by the surge in demand for readymade apparels in semi-urban areas, rising

income levels and youth population and increasing preference for branded apparel.6

2.3 MARKET STRUCTURE:

Indian apparel market is segmented in three different ways:

1. Segmentation by user category: The domestic apparel industry has 3 segments, viz Men’s

wear, Women’s wear and Kid’s wear. Menswear accounts for 40% of the total market .

a.) Mens wear: Men’s wear market in India fastest growing apparel segment The entire apparel

industry (2011-12 estimates), including domestic and exports, is pegged at Rs 3,270 billion

and is expected to grow by 11% to Rs 10,320 billion by 2020. Currently menswear is the

major segment of the market (Rs 720 billion) and is growing at a compounded annual growth

rate (CAGR) of 9%. Gucci, Hugo Boss, Salvatore Ferragamo, Armani, Versace, Brioni,

Ermenegildo Zegna, Canali, Corneliani, Alfred Dunhill, Cadini, are all present in India men’s

wear market.

b.)Women’s wear: Women’s formal wear and ethnic wear markets are still ruled by unorganized

players. With more women expected to enter corporate world, both these segments are good

opportunities because of the market size. Historically, the men’s apparel market in India has been

significantly larger than the women’s apparel market. With only 20 percent of India’s urban

women in the workforce, women’s wardrobes have traditionally been limited to home wear and

items for special occasions. Now, women are more willing to dress differently when they venture

beyond the home—to shop, for example, or visit a school or office