| India among top jeanswear market | | | | cent, women wear at 17 per cent and kids wear at 7 |
| Jeanswear trends started in India truly in the eighties, | | | | percent. By the end of the present financial year, the |
| with the establishment and the movement of brands | | | | jeanswear market in India would witness valuation |
| like Avis, Wings, Flying Machine, UFO, along with | | | | about Rs.1902 crore. |
| international brands like FU's. With the realistic pricing | | | | In addition to women's wear, the scenario of market |
| and a "Good jeans for less" proposition, Newport | | | | in denim wear brand is prospective for the kids wear |
| entered into the mass psyche in the mid-nineties. The | | | | market. For children, in addition to just clothing, denim |
| growth in the domestic jeans and casualwear market | | | | can perform more significantly in accessories and |
| is attracting an increasing number of multinationals | | | | functional products. |
| into the segment. | | | | However, there remains some doubt on how to deal |
| With the Indian youth becoming increasingly fashion | | | | with the attention to the 10-15 years age segment. |
| conscious and with spending power being consistently | | | | This is a consumer set that does not fit into most |
| on the rise, making life easier for the fast-growing | | | | jeanswear brands' core target - 16-25 years - and is |
| 'premium' category of jeanswear brands. On the | | | | also not quite prepared to be treated as 'kids'. For |
| other hand, it has been tough times for other | | | | denim, there exists a large base in this age group, |
| segments of the business - one of the | | | | which will willingly adopt structured merchandise that |
| underperformers being a mass-market jeanswear | | | | connects with their distinct preferences. |
| brand. | | | | The year 1997 has been taken as base year for the |
| Denim consumption boost up in India | | | | price range purpose. Then the super premium price |
| Various apparel categories, excluding innerwear, | | | | range beyond Rs.800-plus could not be imagined as |
| jeanswear too is connected to brand tags in India. A | | | | there were not too many offers beyond that range. |
| label tag is a must now on the back waist panel of | | | | However, we ourselves were surprised to note that |
| even tailored garments. As regards to contribution of | | | | now the super premium range may easily be defined |
| the branded section in each category percentages | | | | at range of Rs.2000-plus. The time has changed in |
| may vary, approximately 79 percent of the jeans | | | | such a short time. There is a major learning for all of |
| sold in India tagged with label, the rest of jeans are | | | | us and specifically for international brands. |
| supplied by tailors and localised manufacturers with | | | | While judging on the part of the entry strategies for |
| no-name. | | | | various international brands, the most challenging job |
| Daily in India, there are number of small stores where | | | | is to determine the right price points. There are many |
| customised jeans are stitched for as little as Rs 200. | | | | aspects - parity with international prices, global |
| And their customers are not only Indians, but | | | | positioning, perceived image in the new market, and |
| Westerners too, and you can find a long queue of | | | | anticipated positioning in the new market connecting |
| Westerners, waiting to purchase customised | | | | to incumbent brands. And most of the times, a mix |
| jeanswear to be used as wear and throw and it is | | | | of these parameters and their weights is applied to |
| because of the reality for the Westerners that the | | | | identify with certain other, not likely to definite |
| availability of a customised piece of clothing at very | | | | factors in mind. Unlike developed or established |
| low pricing. On the other hand, the more and more | | | | markets, it has much more space to expand on the |
| affluent middle class is amazingly responsive about | | | | premium end once the brand is established and |
| the charm of branding. | | | | customers are well-informed about the differentiation, |
| Denim wear consumption in India and the business is | | | | and the only one factor that has to keep in mind is |
| itself changes almost everyday with new modification | | | | that the Indian market is growth-driven and is fueled |
| and new brands, it is also becoming a part of its | | | | by inflation. |
| action by determining the size, character and make | | | | The entrance of premium price points in denim |
| up and it also requires a profound market research | | | | market is also determined by the fact that the |
| study. | | | | market was in decelerated phase in 1999-2000. At |
| According to a survey report, by considering the | | | | that time the brands were required to present more |
| aspects of socio-economic, cultural, emotional and | | | | value-added products to create consumer look at |
| functional backgrounds and its applications there are | | | | denim in a different way. As weigh against to |
| four type of branded jeanswear market available in | | | | "workman's apparel", the denim with embroidery and |
| India. | | | | innovative washes, styling and cuts was found to be |
| India among top jeanswear market | | | | more as fashion apparel. |
| Jeanswear trends started in India truly in the eighties, | | | | This change in rank permitted denim to walk around |
| with the establishment and the movement of brands | | | | newer and higher price points. And also unlock the |
| like Avis, Wings, Flying Machine, UFO, along with | | | | giant door for many international brands to strive at |
| international brands like FU's. With the realistic pricing | | | | higher price points by creating more advance |
| and a "Good jeans for less" proposition, Newport | | | | merchandise. Supporting to this, the recognition of |
| entered into the mass psyche in the mid-nineties. The | | | | denim wear as fashion apparel fascinated many |
| growth in the domestic jeans and casualwear market | | | | Indian designers to show their strong presence. And |
| is attracting an increasing number of multinationals | | | | also give further merchandise to the premium and |
| into the segment. | | | | super premium ranges. |
| With the Indian youth becoming increasingly fashion | | | | The Economy and lower price bands appear to have |
| conscious and with spending power being consistently | | | | been unnoticed in the jeanswear brand to move |
| on the rise, making life easier for the fast-growing | | | | ahead. In India, there are few exceptions, like |
| 'premium' category of jeanswear brands. On the | | | | Newport in the mid-nineties and at present Ruf n Tuf |
| other hand, it has been tough times for other | | | | (via the Arvind Brands and Pantaloon Retail joint |
| segments of the business - one of the | | | | effort) attempted to capture this untapped and big |
| underperformers being a mass-market jeanswear | | | | market opportunity. |
| brand. | | | | Whereas the denim brands for their continued |
| Super Premium Segment (Rs. 2000+)- brands like | | | | existence have found some respite at the premium |
| Tommy Hilfiger, Hugo Boss, AN Jeans, Rocky S | | | | end, the real speed where denim belongs is still |
| Jeans, Rathore Jeans | | | | uninfluenced. The approximations are that at a price |
| Premium Segment (Rs. 1000-2000)- Pepe, Levi's, Lee, | | | | point of Rs.300 for denim jeans, the market could be |
| Wrangler | | | | as big as Rs.2000 crore i.e. larger in value compared |
| Middle Segment (Rs. 500-1000)-Most Indian brands | | | | to the whole market existed at present. However, |
| cover both Middle and Premium categories | | | | the biggest challenge lies all across the supply chain - |
| Economy Segment (Rs. 300-500)-Ruf n Tuf, | | | | be it the distribution or retail at front-end or the |
| Newport, Impact, Thunder as well as in store labels | | | | highly efficient manufacturing at the other end. |
| like Westside's SRC and 2Fast4U that are priced | | | | Consequently, with the appearance of modern |
| between Rs. 375 to Rs. 600 | | | | formats of retailing as large format department |
| At the lower and unorganised end of jeanswear | | | | stores or numerous malls permitting more exclusive |
| market the price is assumed as under Rs.300. Where | | | | brand stores to start, where products needs a |
| as most Indian brands cover both Middle and | | | | different stage of environment and service levels to |
| Premium categories. | | | | exhibit, trial and purchasing decision that was not |
| In the year 2001-02 about 34 million pieces of jeans | | | | seen until at present, which provide the strong |
| were sold, which accounted to a market value of | | | | support to the development of the premium end at |
| Rs1363 crore. The Super Premium brand jeans was | | | | a large. The situation seems to be further |
| almost not there in the market (about Rs.3 crore), | | | | progressive for premium end brands with the |
| until 2001-02, as there were only few companies. At | | | | constant growth projection in retail sector. |
| this time, the Economy segment (Rs.300-500) was | | | | The markets drift evidently prove that the denim |
| accounted to about Rs.500 crore. The premium | | | | may be going for another decline soon, but it give |
| (Rs.1000-2000) and middle segments (Rs.500-1000) | | | | the impression that with all these new products and |
| reached to Rs.150 crore and Rs.400 crore | | | | innovations, premium brands may be capable to |
| respectively. Until this time, consumption per pair of | | | | remain in much improved phase. |
| jeans continued predominantly under the Rs.1000 | | | | Considering the manufacturing point of view |
| mark as its top limit. | | | | (whether the fabric or garments) mills like Arvind Mills |
| Then a clear pattern observed in the period of | | | | have showed their competency in production and |
| 2002-03, the premium and middle segments rose at | | | | received the respect as a largest scale of producer |
| approximately 20 and 15 per cent respectively. In | | | | with the position to present the cheapest basic |
| other words we can say, jeans priced above Rs.1000 | | | | denim fabric in the world. Though, India does not |
| were sold more than those under. | | | | have in fact efficient jeans making provisions as a VF |
| The Economy segment grew at approximately 10 | | | | Corp. (owner of Lee and Nautica Jeans) has in other |
| percent, while the total market size grew by | | | | parts of the world. |
| approximately 10.8 per cent over 2001-02, with 37 | | | | From the marketing and distribution point of view, as |
| million pairs of jeans raking in only over Rs.1500 crore | | | | a mass market of jeans existed, the complicated and |
| in sales in 2002-03. | | | | split nature of the distribution chain have not allowed |
| The report shows that, of all the price bands, the | | | | many good judgments and came to pass, and also |
| premium segment performing a large amount of | | | | has squeezed many perceptions in their push. |
| visible and faster growth. During the period of | | | | Though, with a much more efforts desired by |
| 2003-2004, the premium segment performed with | | | | logistics suppliers and quick development in retail |
| the 25 percent rise with a market value of Rs.225 | | | | formats like Big Bazaar, many difficulties can be |
| crore. | | | | removed and the vast potential for denim jeans can |
| The Economy segment maintains a steady growth at | | | | be opened. |
| 10 per cent with a coverage over 15 million pieces in | | | | The urban and semi urban masses: another targeted |
| the Rs.300-500 price value shifting to retail shelves. | | | | audience to deliver the products |
| Thanks to the fastest growth in the premium | | | | On the back end, whereas it may be starting phases |
| segment, together with a rise of the high-value | | | | of the markets for urban and semi urban masses, |
| Super-premium ranges (30,000 pieces causing Rs.9 | | | | the large portion of rural and semi rural markets are |
| crore in sales), reached to Rs.1690 crore with its 11.9 | | | | another targeted audience to deliver the products. As |
| percent, the overall jeanswear business also | | | | the practical requirement of jeans may be extremely |
| increased at a percentage point higher. This key | | | | vary from what is required in urban markets' masses, |
| improvement of the super premium price range | | | | there will be a challenging task to operate from the |
| within a few years is amazing. In 1999, if a brand was | | | | basic product itself. Whether it is waterproofing, or |
| introduced at Rs.1100, it was considered as 'super | | | | anti bacterial finishes, with the consideration of the |
| premium' while the same price, the same product in | | | | market size, making jeans for the rural market, more |
| 2003 would build it hardly to premium segment. | | | | and more research and development tasks are |
| For the year 2004-2005, the study projected a | | | | require to develop the market. It is the efforts taken |
| further fastest growth for jeanswear as a category, | | | | by DSCL (Hariyali), ITC Ltd (Sagar) and Godrej |
| at about 12.5 per cent. | | | | (Adhaar) into rural retailing, the setup in rural market |
| Once again, from the Premium segment, the highest | | | | may soon turn out to be much easier to deal with. |
| growth is likely to occur though growth will stay at | | | | These set ups can unlock the doors to the largest |
| 25 percent. The Middle segment was also projected | | | | untapped market in the world. |
| to maintain the period of 2002-2003 - at 15 percent, | | | | In the end, to wait on the opportunity in premium |
| and carried about Rs.608 crore from eight million | | | | brand, it is surprised to note that all potential |
| pieces. The Economy segment is also performed | | | | segments are moreover already in its position or can |
| steady rise - 10 percent - with nearly 17 million pieces | | | | easily be shaped. Though, the absent portion is an |
| shifting to the retail shelves. | | | | assertive company to set all these segments |
| Approximately 43 million pairs of jeans are expected | | | | together and switch over to this potential into real |
| to be sold during the period of 2004- 2005, with | | | | business. |
| menswear obtaining with the major share - 76 per | | | | |