India among top jeanswear market
Jeanswear trends started in India truly in the eighties, with the establishment and the movement of brands like Avis, Wings, Flying Machine, UFO, along with international brands like FU's. With the realistic pricing and a "Good jeans for less" proposition, Newport entered into the mass psyche in the mid-nineties. The growth in the domestic jeans and casualwear market is attracting an increasing number of multinationals into the segment.

With the Indian youth becoming increasingly fashion conscious and with spending power being consistently on the rise, making life easier for the fast-growing 'premium' category of jeanswear brands. On the other hand, it has been tough times for other segments of the business - one of the underperformers being a mass-market jeanswear brand.

Denim consumption boost up in India
Various apparel categories, excluding innerwear, jeanswear too is connected to brand tags in India. A label tag is a must now on the back waist panel of even tailored garments. As regards to contribution of the branded section in each category percentages may vary, approximately 79 percent of the jeans sold in India tagged with label, the rest of jeans are supplied by tailors and localised manufacturers with no-name.

Daily in India, there are number of small stores where customised jeans are stitched for as little as Rs 200. And their customers are not only Indians, but Westerners too, and you can find a long queue of Westerners, waiting to purchase customised jeanswear to be used as wear and throw and it is because of the reality for the Westerners that the availability of a customised piece of clothing at very low pricing. On the other hand, the more and more affluent middle class is amazingly responsive about the charm of branding.

Denim wear consumption in India and the business is itself changes almost everyday with new modification and new brands, it is also becoming a part of its action by determining the size, character and make up and it also requires a profound market research study.

According to a survey report, by considering the aspects of socio-economic, cultural, emotional and functional backgrounds and its applications there are four type of branded jeanswear market available in India.

At the lower and unorganised end of jeanswear market the price is assumed as under Rs.300. Where as most Indian brands cover both Middle and Premium categories.

In the year 2001-02 about 34 million pieces of jeans were sold, which accounted to a market value of Rs1363 crore. The Super Premium brand jeans was almost not there in the market (about Rs.3 crore), until 2001-02, as there were only few companies. At this time, the Economy segment (Rs.300-500) was accounted to about Rs.500 crore. The premium (Rs.1000-2000) and middle segments (Rs.500-1000) reached to Rs.150 crore and Rs.400 crore respectively. Until this time, consumption per pair of jeans continued predominantly under the Rs.1000 mark as its top limit.

Then a clear pattern observed in the period of 2002-03, the premium and middle segments rose at approximately 20 and 15 per cent respectively. In other words we can say, jeans priced above Rs.1000 were sold more than those under.

The Economy segment grew at approximately 10 percent, while the total market size grew by approximately 10.8 per cent over 2001-02, with 37 million pairs of jeans raking in only over Rs.1500 crore in sales in 2002-03.

The report shows that, of all the price bands, the premium segment performing a large amount of visible and faster growth. During the period of 2003-2004, the premium segment performed with the 25 percent rise with a market value of Rs.225 crore.

The Economy segment maintains a steady growth at 10 per cent with a coverage over 15 million pieces in the Rs.300-500 price value shifting to retail shelves. Thanks to the fastest growth in the premium segment, together with a rise of the high-value Super-premium ranges (30,000 pieces causing Rs.9 crore in sales), reached to Rs.1690 crore with its 11.9 percent, the overall jeanswear business also increased at a percentage point higher. This key improvement of the super premium price range within a few years is amazing. In 1999, if a brand was introduced at Rs.1100, it was considered as 'super premium' while the same price, the same product in 2003 would build it hardly to premium segment.

For the year 2004-2005, the study projected a further fastest growth for jeanswear as a category, at about 12.5 per cent.

Once again, from the Premium segment, the highest growth is likely to occur though growth will stay at 25 percent. The Middle segment was also projected to maintain the period of 2002-2003 - at 15 percent, and carried about Rs.608 crore from eight million pieces. The Economy segment is also performed steady rise - 10 percent - with nearly 17 million pieces shifting to the retail shelves.

Approximately 43 million pairs of jeans are expected to be sold during the period of 2004- 2005, with menswear obtaining with the major share - 76 per cent, women wear at 17 per cent and kids wear at 7 percent. By the end of the present financial year, the jeanswear market in India would witness valuation about Rs.1902 crore.

In addition to women's wear, the scenario of market in denim wear brand is prospective for the kids wear market. For children, in addition to just clothing, denim can perform more significantly in accessories and functional products.
However, there remains some doubt on how to deal with the attention to the 10-15 years age segment. This is a consumer set that does not fit into most jeanswear brands' core target - 16-25 years - and is also not quite prepared to be treated as 'kids'. For denim, there exists a large base in this age group, which will willingly adopt structured merchandise that connects with their distinct preferences.

The year 1997 has been taken as base year for the price range purpose. Then the super premium price range beyond Rs.800-plus could not be imagined as there were not too many offers beyond that range. However, we ourselves were surprised to note that now the super premium range may easily be defined at range of Rs.2000-plus. The time has changed in such a short time. There is a major learning for all of us and specifically for international brands.

While judging on the part of the entry strategies for various international brands, the most challenging job is to determine the right price points. There are many aspects - parity with international prices, global positioning, perceived image in the new market, and anticipated positioning in the new market connecting to incumbent brands. And most of the times, a mix of these parameters and their weights is applied to identify with certain other, not likely to definite factors in mind. Unlike developed or established markets, it has much more space to expand on the premium end once the brand is established and customers are well-informed about the differentiation, and the only one factor that has to keep in mind is that the Indian market is growth-driven and is fueled by inflation.

The entrance of premium price points in denim market is also determined by the fact that the market was in decelerated phase in 1999-2000. At that time the brands were required to present more value-added products to create consumer look at denim in a different way. As weigh against to "workman's apparel", the denim with embroidery and innovative washes, styling and cuts was found to be more as fashion apparel.

This change in rank permitted denim to walk around newer and higher price points. And also unlock the giant door for many international brands to strive at higher price points by creating more advance merchandise. Supporting to this, the recognition of denim wear as fashion apparel fascinated many Indian designers to show their strong presence. And also give further merchandise to the premium and super premium ranges.

The Economy and lower price bands appear to have been unnoticed in the jeanswear brand to move ahead. In India, there are few exceptions, like Newport in the mid-nineties and at present Ruf n Tuf (via the Arvind Brands and Pantaloon Retail joint effort) attempted to capture this untapped and big market opportunity.

Whereas the denim brands for their continued existence have found some respite at the premium end, the real speed where denim belongs is still uninfluenced. The approximations are that at a price point of Rs.300 for denim jeans, the market could be as big as Rs.2000 crore i.e. larger in value compared to the whole market existed at present. However, the biggest challenge lies all across the supply chain - be it the distribution or retail at front-end or the highly efficient manufacturing at the other end.

Consequently, with the appearance of modern formats of retailing as large format department stores or numerous malls permitting more exclusive brand stores to start, where products needs a different stage of environment and service levels to exhibit, trial and purchasing decision that was not seen until at present, which provide the strong support to the development of the premium end at a large. The situation seems to be further progressive for premium end brands with the constant growth projection in retail sector.

The markets drift evidently prove that the denim may be going for another decline soon, but it give the impression that with all these new products and innovations, premium brands may be capable to remain in much improved phase.

Considering the manufacturing point of view (whether the fabric or garments) mills like Arvind Mills have showed their competency in production and received the respect as a largest scale of producer with the position to present the cheapest basic denim fabric in the world. Though, India does not have in fact efficient jeans making provisions as a VF Corp. (owner of Lee and Nautica Jeans) has in other parts of the world.

From the marketing and distribution point of view, as a mass market of jeans existed, the complicated and split nature of the distribution chain have not allowed many good judgments and came to pass, and also has squeezed many perceptions in their push. Though, with a much more efforts desired by logistics suppliers and quick development in retail formats like Big Bazaar, many difficulties can be removed and the vast potential for denim jeans can be opened.

The urban and semi urban masses: another targeted audience to deliver the products
On the back end, whereas it may be starting phases of the markets for urban and semi urban masses, the large portion of rural and semi rural markets are another targeted audience to deliver the products. As the practical requirement of jeans may be extremely vary from what is required in urban markets' masses, there will be a challenging task to operate from the basic product itself. Whether it is waterproofing, or anti bacterial finishes, with the consideration of the market size, making jeans for the rural market, more and more research and development tasks are require to develop the market. It is the efforts taken by DSCL (Hariyali), ITC Ltd (Sagar) and Godrej (Adhaar) into rural retailing, the setup in rural market may soon turn out to be much easier to deal with. These set ups can unlock the doors to the largest untapped market in the world.

In the end, to wait on the opportunity in premium brand, it is surprised to note that all potential segments are moreover already in its position or can easily be shaped. Though, the absent portion is an assertive company to set all these segments together and switch over to this potential into real business.

India among top jeanswear market
Jeanswear trends started in India truly in the eighties, with the establishment and the movement of brands like Avis, Wings, Flying Machine, UFO, along with international brands like FU's. With the realistic pricing and a "Good jeans for less" proposition, Newport entered into the mass psyche in the mid-nineties. The growth in the domestic jeans and casualwear market is attracting an increasing number of multinationals into the segment.

With the Indian youth becoming increasingly fashion conscious and with spending power being consistently on the rise, making life easier for the fast-growing 'premium' category of jeanswear brands. On the other hand, it has been tough times for other segments of the business - one of the underperformers being a mass-market jeanswear brand.

Denim consumption boost up in India
Various apparel categories, excluding innerwear, jeanswear too is connected to brand tags in India. A label tag is a must now on the back waist panel of even tailored garments. As regards to contribution of the branded section in each category percentages may vary, approximately 79 percent of the jeans sold in India tagged with label, the rest of jeans are supplied by tailors and localised manufacturers with no-name.

Daily in India, there are number of small stores where customised jeans are stitched for as little as Rs 200. And their customers are not only Indians, but Westerners too, and you can find a long queue of Westerners, waiting to purchase customised jeanswear to be used as wear and throw and it is because of the reality for the Westerners that the availability of a customised piece of clothing at very low pricing. On the other hand, the more and more affluent middle class is amazingly responsive about the charm of branding.

Denim wear consumption in India and the business is itself changes almost everyday with new modification and new brands, it is also becoming a part of its action by determining the size, character and make up and it also requires a profound market research study.

According to a survey report, by considering the aspects of socio-economic, cultural, emotional and functional backgrounds and its applications there are four type of branded jeanswear market available in India.

At the lower and unorganised end of jeanswear market the price is assumed as under Rs.300. Where as most Indian brands cover both Middle and Premium categories.

In the year 2001-02 about 34 million pieces of jeans were sold, which accounted to a market value of Rs1363 crore. The Super Premium brand jeans was almost not there in the market (about Rs.3 crore), until 2001-02, as there were only few companies. At this time, the Economy segment (Rs.300-500) was accounted to about Rs.500 crore. The premium (Rs.1000-2000) and middle segments (Rs.500-1000) reached to Rs.150 crore and Rs.400 crore respectively. Until this time, consumption per pair of jeans continued predominantly under the Rs.1000 mark as its top limit.

Then a clear pattern observed in the period of 2002-03, the premium and middle segments rose at approximately 20 and 15 per cent respectively. In other words we can say, jeans priced above Rs.1000 were sold more than those under.