Company Details
As an apparel maker and retailer in India, how do you see apparel retail shaping up? What goes into building a successful apparel brand in times when there is fierce competition in the market?
Apparel
industry in India is slow at the moment due to various factors such as
inflation, taxation etc. But, it is sure that the Apparel industry will
grow steadily in India. India has a very huge unorganized apparel market that
is manufactured in every part of the country. So, regional competition
exists everywhere. As the mall culture is coming up in tier II & III
cities also, this will educate the customer about the brand and quality.
They will be familiar with the brand names as and when they visit malls. Hence,
the organized and branded products will take shape and reach the users.
Big organized retail outlets with great ambience that offer products at
reasonable price will catch up the demand; brands with an attractive price tag
will have demand. By looking at the global market scenario, especially
India, it seems there will be growth in the apparel market but the pace will be
slow. It may see a seasonal growth in 2012, but there may be steady
growth in early 2013.
We are
in the manufacturing of casual and formal shirts. There is a fierce
competition in the market in both these categories. The mid-priced
segment gets hurt from both, the upper segment market and lower segment
market. This means the mid-priced brands have to compete with the upper
branded garments and also with the unorganized & lower end unbranded
products also.
To
build a successful brand, one has to provide the best quality products with
sensible pricing. It also needs innovation in products with different
wash effects, patterns and styles. One has to be more aware of the global
trends, styles, quality, colors, patterns, etc. To make a brand
successful, we need to serve the full meal to the consumer. Today, the customers
are Smart Customers, they need the best out of best. They are more aware
of these aspects and are able to compare the products.
Today, we can see that customers are not just brand loyal. They compare each and every aspect before going for it. So, we have to work on very reasonable margin and offer the best product in the market which is different from other competitor brand. You need to have your presence in malls and high streets either through MBOs or EBOs of your own. MBOs are already full with a lot of products & brands and if you need to display your complete collection it can be possible through EBOs. But, today the rental for retail space is too high which requires huge investment for the set up. Big international brands have funds, but mid-segment brands like us have to face this problem. Mid-segment brand needs to raise funds for both long term investment and working capital.
Besides, these bricks and wall stores, we can build our own online stores. We have seen a tremendous growth in online retailing in past 2 years. Online retailing is sensible for any manufacturer today as the Indian consumers are now open for online buying. Innovation in Apparel is sure to work.
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As an apparel maker and retailer in India, how do you see apparel retail shaping up? What goes into building a successful apparel brand in times when there is fierce competition in the market?
Today,
we can see that customers are not just brand loyal. They compare each and
every aspect before going for it. So, we have to work on very reasonable
margin and offer the best product in the market which is different from other
competitor brand. You need to have your presence in malls and high
streets either through MBOs or EBOs of your own. MBOs are already full
with a lot of products & brands and if you need to display your complete collection
it can be possible through EBOs. But, today the rental for retail space
is too high which requires huge investment for the set up. Big
international brands have funds, but mid-segment brands like us have to face
this problem. Mid-segment brand needs to raise funds for both long term
investment and working capital.
Besides,
these bricks and wall stores, we can build our own online stores. We have
seen a tremendous growth in online retailing in past 2 years. Online
retailing is sensible for any manufacturer today as the Indian consumers are now
open for online buying. Innovation in Apparel is sure to work.
*******
Published on: 25/04/2012
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.