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Mr. Tirtha Bhowmick
Mr. Tirtha Bhowmick
Country Manager
Federal Brands

Company Details

Business Area:
Men's bottom wear & sports wear
Turnover:
INR 110 cr
Export Capabilities:
Annual INR 2cr export to Middle East
Clientele:
India & Middle East

 

How do you see Apparel Retail industry growing in India? What is the mantra for making an apparel brand popular in the mass market keeping in mind the Indian consumer preferences and psyche?

Overall Indian Apparel and Clothing industry is expected to grow strongly at a rate of about 11% for the next 8 – 10 years. The current domestic textile and apparel market is worth about Rs. 2,200 bn and is expected to grow by 11% annually to reach over Rs. 6,500 bn by 2020.

To reach expected numbers we need to think beyond Factor Driven industry. Before 2005, the industry was largely Factor Driven (raw material availability, Labour availability, Government policy etc.), since 2005 it moved to be Efficiency Driven (vertical/virtual integration, manufacturing excellence, supply chain efficiency, diversity in product mix etc.), and now, 2012 onwards, it has to be Innovation Driven (Product, Design/Brand, Channels, Business Processes etc.).

For this, we need to re-invent the entire industry by collaboration across apparel value chain, focus/specialization by private players, building scale and thinking global and last but not the least, by investing in Innovation.

The Overall Take:

  • India’s domestic demand shall be the driver of growth for Indian apparel and clothing industry in the coming Decade.
  • However, as new consumer needs and aspirations emerge, the industry will have to re-invent itself almost completely to take advantage of the opportunity.
  • More than USD 70 bn will be needed in fresh investments over the next 8 – 10 years.
  • There is very vibrant and bold entrepreneurship currently in the industry – in 2012; there will be at least 5 companies having USD 1 bn or more in revenues by end of 2020.

(Contd.)

How do you see Apparel Retail industry growing in India? What is the mantra for making an apparel brand popular in the mass market keeping in mind the Indian consumer preferences and psyche?

The Indian apparel market is a result of high complexities of a wide geographic spread and differences in consumer preferences across its varied cultural backgrounds. Moreover, the financial status and capabilities of Indians vary from extremely rich to extremely poor families, where the former can spend on anything they want and the latter are forced to go without a single meal for several days. Besides, some purchase decisions are made based on their status orientation or indulgence orientation. Furthermore, there are major cultural influences on the buying habits, which set in when the Indian consumers shop during their favorite festivals as a mark of good omen.

Apart from festivities, Indians really do not wear ethnic dresses and are more skewed towards western outfits these days. Fashions change every 5 – 6 months and so do the preferences. In terms of buying, we are more of what people would perceive about one’s personality type, rather than taking a strong purchase decision ourselves.

Previously, it was one shop for the family, and now everyone in the family has their own respective choices of shops. Apparels are usually bought from retailers who sell leading brands, after surveying the same at the best rate. The consumers usually look for the worth of the product and go for a deal where they get maximum value for what they pay. The buying habits are also changing from mom and pop stores to retail chains, fashion boutiques and finally online stores. We, at Federal Brands, have also launched our online store - www.livein.in in order to attract the growing number of online customers.

(Contd.)

How do you see Apparel Retail industry growing in India? What is the mantra for making an apparel brand popular in the mass market keeping in mind the Indian consumer preferences and psyche?

To become successful & popular in the Indian mass market there are certain fundamentals which any Brand needs to follow:

  1. Do not discount the Brand unnecessarily to generate volumes. This will never work and would only generate a depleting brand image and would raise trade back clash.
  2.  Service at the MBO level is the mantra for success. Service in terms of deliveries, problem solving at the retail level, scheme disclosures etc. has to be at a 24x7 basis to generate results.
  3. Price positioning has to be perfect in order to establish parity between aspiration and deliberation from and of the Brand. Majority of the apparel players lack this and usually fall in the trap of wrong price positioning.
  4. “QUALITY” is the only measure between SUCCESS and FAILURE. Any brand at any level has to maintain a strong check on quality so that the actual feel of the brand is in parity with the aspiration.
  5. Merchandising at strategic POS (point of sale) locations really makes an impact and induces impulse buying.
  6. Finally, relationship with the trade and channel partners also makes a strong difference in the popularity space of the Brand.

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Published on: 21/02/2012

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.