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ANALYSIS: CHANGING PROFILE OF INDIAN CONSUMERS

According to NCAER’s latest Indian Market Demographics Report
companies that have found consumer sales fattening over the past
few years have come up with the concept of ‘power brands’ to help
tackle this.
The report suggests that for stimulating market demand there are
two ways one is related to consumer fnance and secondly by
getting the government to focus on greater infrastructure
development.
According to this report, while consumer fnance accounts for just
a sixth of the purchase of the white goods in the country, fnanced
goods have the highest growth rates today. For both rural and
urban areas as a whole, fnancing added around a ffth to demand.
As per the report an equally interesting fact is the implications for
expansion strategies. Companies keen on growing the market need
to know that they may have to adopt diferent strategies for
diferent products.
One can also expect a rise in demand in all segments due to
increase in income levels of consumers. With income levels rising
especially in the post reform period the number of upper medium
and high-income households will rise and thus the consumption
pattern will undergo a sea change.
The implication of fnancing and increase in income can be seen in
the Indian economy with lot of spending by all segments of the
society in cheap and expensive products and services.
In the Indian scenario, thanks to economic growth and
liberalization there is increased demand for better products and
retailing from India’s frst generation of demanding, cash rich
consumers. Factors like rising rural and urban incomes, media
exposure, changing socio economic structures and new awareness
about rural marketing are the main drivers of this trends.
In the recent years, therefore a large number of business houses
have invested heavily in setting up stores, malls and other retail
businesses. While there are several forms and categories being
experimented with, fve main retail categories are malls,
department stores, supermarkets, category stores and single brand
retailers. Another way to segment organized retailing is by what
they sell: food and groceries, consumer durables, precious items
and books, music and apparel being some of them. You only have
to go around any Indian metro to know that a retail revolution is
on. It is impossible to miss the malls (Ansals, Crossroads),
department stores (Shopper’s Stop, Lifestyle, Globus), food and
grocery supermarkets (Food World, Nanz), category stores (Music
World, Crossword) and single brand outlets (Titan, Reebok) that are
mushrooming all over. Other formats – discounters (Sabka Bazaar),
fast food and beverage vendors (Mc Donald’s, Barista & café Cofee
Day) – are also being experimented with. Each category has
distinguishing characteristics, with each performing certain
specialized functions. But one thing common to both forms of
segmentation is location: they are predominantly urban. Most
goods are designed for urban segment and sold there itself.
These are signals that retailing is attracting big bucks and
aggressive entrepreneurship. But consider the other side of the
picture. Despite the huge number of retail formats being
experimented with, none of them actually touch the rural sector –
where the bulk of the population lives. Even otherwise the
organized retailing is nowhere near its potential: the share of
organized retailing in India is only two percent of the total market.

Indian Garment Market:
At a time when the new WTO regime could threaten the existence
of the garment industry, why was the government coming down
heavily on them is the question that arises in the mind of garment
manufacturers in India.
A mere 0.5% of these companies have turnovers of more than Rs.
100 crore ($21 million) every year. The bulk of them exports
garments worth Rs 20 crore ($4.2 million) or less.
The level of automation in apparel making is relatively low in India.
World Bank study in 1998 said the average investment per machine
in a typical Indian garment factory was just $250 compared to
$1,500 in China and $1,260 in Thailand. Naturally, productivity is
lower among Indian garment manufacturers. For example, a Hong
Kong manufacturer makes 20.6 blouses per day per machine while
the Indian average is 10.2. A Mc Kinsey and Company study noted,
using the number of shirts produced per day as a measure that
productivity in India is 16% of that in the US.
As the level of competition intensifes, Indian garments
manufacturers will face two kinds of challenges. One, as buyers
consolidates and, hence, place bigger orders with fewer suppliers,
exporters must have the scale to compete on costs and quality.
That will require sizeable capital expenditure, which the smaller
companies will be hard put to make. Two, manufacturing units will
also need the fexibility and the ability to deliver orders on time. For
that, the supporting infrastructure required from fabric sourcing
and dyeing facilities to ports and customs have to be perfectly
synchronized.
Even as the changes in the world market play out, a sizeable
majority of the garment industry has still not woken up to the
challenge. To survive most of the still expect generous handouts
from the government instead of securing their own future. A large
majority of Indian garment manufacturers have competed on price.
But now, value additions are critical. And most of them simply do
not have the technology or the management skills to survive.
THE BAD NEWS
The industry was almost killed of by bad government policies, like
that for power looms.
 Indian garment companies are small and fragmented and
cannot invest big capital to capture the new demand. The
textile secretary says a shakeout is imminent and, after that,
only 3,000 of the 20,000 companies existing now will survive.
The rest will either close or merge.
 Infrastructure is very poor and hampers an efcient export
operation. It takes seven days for a shipment from Delhi to
leave the Mumbai port as against 24 hours in China and
Thailand. Power cuts are rampant in Bangalore and Tirupur.
 Time is running out. In the last three years. Bangladesh,
Vietnam and some African countries have reformed their in-
dustry and are today more cost competitive than India.
China, too, could gobble up the entire demand if India
does .not wake up in time.
Now broadly, there are four important stages before arguments
made. Raw cotton is spun into yarn. Yarn is woven in fabric. The
fabric is then processed (dyed, etc.). Finally, the fabric is convened
into a garment or a made-up like a towel. India, except for the frst
stage of spinning, the other three a fragmented and under-
developed.
Garment manufacturing, too, remained, fragmented because it was
reserved for the small-scale sector. Manufacture units could not
exceed more than Rs 1 crore investment in plant and machinery.
This shortsighted policy ensured that the big organized sector did
not invest in garment manufacture. In China, most of the
companies are integrated players producing everything from yarn
to garments.
Two years ago, the government corrected the anomaly by throwing
open garment manufacturing to anybody who could invest. In fact,
it went one step further. It has now allowed 100' foreign direct
investment without any export obligations to spur new investment
in the sector.
Clearly time is running out. So unless both the industry and the
government work together to develop and executive a common
blueprint, may well be a case of yet another missed opportunity.
CULTURAL REVOLUTION IN INDIA:
Globalization has fueled a cultural revolution in India – an
American cultural revolution. The changes, spurred by the last 10
years of U.S.-centric economic policies, have forced a
transformation almost as monumental as the 200-odd years of
British colonial rule.
Until the 1990s, India's semi-socialist regime had waged a fairly
successful battle against American consumerism, but fnancial
crisis fnally forced the government to open up the country. Today,
America's infuence is corroding India's rich culture and unique
traditions.
Young people, mesmerized by popular television programs like
"Baywatch" or "The Bold and the Beautiful," have taken to
emulating program characters. Indian teens are also increasingly
obsessed with going to the gym or jogging in name brand sneakers
– Reeboks or Nikes – like their American peers. Western-style
fashion shows are now common, and sexual promiscuity is on the
rise.
Teens today know the inside scoop on Madonna's private life, but
often have not heard of Khudi Ram Bose, one of India's freedom
fghters against British rule. This stands in stark contrast to the
1960s, '70s and '80s, when students were at the forefront of social
and political struggles in India. Today, most youth dream of getting
to the United States – on a scholarship, through a job, or by
marrying a green-card holder.
"The Indian elites have never been more adrift from their cultural
roots than at present," says Pawan K. Verma, author of The Great
Indian Middle Class, about the social attitudes of Indians in the
post-globalization era.
Traditional dress for Indian women, the saree and the salwar
kameez, have been cast aside in the bigger cities for Wrangler or
Lee jeans with skimpy half-shirts baring the mid-rif. And
countless Indian girls have taken to dying their hair blonde, as
more and more beauty parlors pop up to fll the demand.
America's infuence has turned Indian values on sex and marriage
upside down. Divorce rates have multiplied. In bigger cities, an
increasing number of Indian women are deciding to live and stay
alone, forming a new identity for India: 'the single woman.'
The penetration of American values in India has forced a market
shift towards greater service orientation, and a corresponding
increase in manufacturing activity. Credit fever has infected
Indians, encouraged by the greater availability of bank loans and
credit cards.
"The process of globalization in the West was spread over a period
of more than 200 years. In India, it has come in a compressed form
of 10 years," says Sheo Narayan Singh Anived, a senior government
ofcial and prominent intellectual. "And [the globalization process]
rides piggyback on the American communications systems – the
world's most efcient and powerful communications systems.
Therefore, [globalization] is bound to have the sort of impact that it
is having in India and the rest of the Third World."
Cellular phones have become indispensable for urban Indians.
Internet use has skyrocketed as more and more Indians spend time
in cyber chat rooms debating a range of subjects – from love to
politics or pornography. Hindi versions of programs like "Who
Wants to be a Millionaire" and "Who Wants to Marry a Millionaire"
have also sprung up.
Still, while American culture is revolutionizing India's urban
centers, rural India largely remains untouched. Last year, then-
U.S. President Clinton visited a village called Nyala, but 37-year-old
Shahnawaz Khan, who lives in a village nearby, doesn't remember
Clinton's name. He refers to Clinton simply as "Duniya Ka
Shahenshah" – "ruler of the world" in the local Urdu language.
Khan, a father of six, is from Garhi Mewat, a village 140 kilometers
from New Delhi in the northern state of Haryana. Khan recalls that
Clinton talked about empowering Indian women and donated six
computers to the village.
"The [ruler] comes here and whiles away his time with silly women
and donates these useless machines. If he had to donate, he could
have given us cows, bufaloes and tractors. Or he could have taken
us to America to work as laborers," Khan says.
For Khan and his generation in Garhi Mewat, known as the Village
of Thieves, life was fne up until the 1990s – when globalization
began to fully penetrate India. The villagers had been traditional
thieves. But now, with globalization and the bombardment of
American ideas, thievery as a profession is out of fashion. Today,
the younger generation migrates to nearby towns in search of work
as brick kiln or construction workers. One enterprising fellow even
set up a cyber café in a nearby town.
Life is tough now for Khan. Thievery is out. And villagers do not
have the resources or training to be farmers. Many of the village
wives and daughters turned to prostitution to make ends meet.
Now, the Village of Thieves has come to be known as the Village of
Prostitutes, and Khan blames Bill Clinton – or George W. Bush –
and the past 10 years of the free economy.
"The Indian economy has been, or is being, liberalized while the
[rural] society has continued to remain feudal and closed," says
Singh Anived, the government ofcial. "Only small bits of
modernity have been released into the Indian society from time to
time."
For most urban middle-class Indians, essentially upper caste
Hindus, there is nothing wrong with India's changing economic
priorities, nothing misplaced about the investments in golf courses,
ultra-modern mansions or fve star hotels, no harm done if the
world's biggest fast food chains – from Pizza Hut to Kentucky Fried
Chicken and McDonalds – have set up shop. In Bangalore, the
capital city in the state of Karnataka, a group of America-returned
Indians set up an institute to familiarize Indian businessmen with
the mannerisms, culture and work ethic of Americans.
In the predominantly Hindi-speaking northern state of Rajasthan,
the stage for an anti-English movement about a decade ago, tens of
thousands of Indians are scurrying to English language institutes.
Even villagers from adjoining areas of the capital, Jaipur, have
enrolled in English language school. On last count, 40 such centers
had opened in Jaipur, including institutes with high-sounding
names such as the Gothe et Rolland Forum de Lingua and Havard
Finishing School (a humorous misspelling of the renowned New
England ivy league university).
While globalization may have brought prosperity to some, studies
show that for 80 percent of the population economic circumstances
have remained virtually unchanged. More than 50 percent of the
population in Indian cities live in degrading squalor, and about the
same number are unable to aford two meals a day. Illiteracy is
near 40 percent. Tens of thousands in India continue to die of
malaria, tuberculosis, or even diarrhea. And every third person in
the world without adequate drinking water is Indian, according to
the Center for Science and Environment, an Indian
nongovernmental organization.
Other than a few notable incidents like the 1998 stoning of a
Kentucky Fried Chicken shop, there has not been a signifcant
public reaction against American cultural intrusion. In the Western
state of Maharashtra, activists wage a continuing campaign against
an Enron power project. And the Swadeshi Jagran Manch, a group
afliated with one of the main political parties, recently launched
countrywide protests against the government's "sell out" to
multinationals. The group recently began a campaign to support
domestic consumer goods.
Sudheesh Pachouri, a New Delhi-based media critic and
sociologist, says U.S. infuence has not been all bad. "Americanism
essentially incorporates universal values of human rights," he says.
"What this has come to mean in India is that a new space has been
created for the oppressed sections and these sections have found a
voice. Or, how would one explain the sudden demand that has
emerged in India for the inclusion of the Dalit question at the
United Nations Conference on Race?"
The condition of the Dalit, or lower-class Hindus who make up 80
percent of India's population, is a sensitive and volatile socio-
political issue. The debate over Dalit rights was re-ignited following
the demand by some Indian groups that the issue be included in
the agenda of the United Nations Conference on Racism, held
earlier this year in South Africa.
In some ways, globalization has drawn members of India's left and
right together against what they see as the imperialistic designs of
the United States. They say India is a battleground for the United
States, eager to maintain a substantial presence in the region in
order to contain China's perceived expansionist designs. They also
say American business interests have dealt a deathly blow to
India's self-reliant economy and are making Indians economically
dependent on the United States.
Indian society also has been transformed by the Internet and cable
television--forces young people are best equipped to exploit.
India's youth are already having an enormous impact: on the
economy, on companies hoping to sell them products, on the
media, and on the culture. Unlike previous generations, today's
youth are not obsessed with the ins and outs of politics. Thus the
current election, which pits the ruling Bharatiya Janata Party
against the Congress Party, has failed to ignite the passions of the
young. ''Today, even if Parliament blew up, no one from this
generation would notice,'' says Rama Bijapurkar, a marketing
consultant. ''It has little relevance for them.'' Liberalization's
children also difer from their conservative, insular parents in that
they proudly mix Indian values with Western packaging. They enjoy
wearing saris and still admire Mahatma Gandhi. But they also like
wearing blue jeans, drinking fzzy sodas, and watching MTV.
This generational shift in attitudes is all the more important
because this group is growing so rapidly. Some 47% of India's
current 1 billion population is under the age of 20, and teenagers
among them number about 160 million. Already, they wield $2.8
billion worth of discretionary income, and their families spend an
additional $3.7 billion on them every year. By 2015, Indians under
20 will make up 55% of the population--and wield proportionately
higher spending power.
As this group, with its more materialist, more globally informed
opinions, comes into its own, sociologists predict India will
gradually abandon the austere ways and restricted markets that
have kept it an economic backwater. These youth will demand a
more cosmopolitan society that is a full-fedged member of the
global economy. They will start their own businesses and
contribute to a more vibrant economy. They also are likely to
demand more accountability from their politicians. ''This is the
generation that is reclaiming India's future,'' says Gurcharan Das,
a former chief executive of Procter & Gamble Co. India and author
of a forthcoming book on India in the next century. ''This is India's
'found' generation.''
FIRST TASTE. Obviously, many millions in this group remain
locked in a struggle with poverty. But out of the teenage
population, some 22 million belong to the urban middle class and
are in a position to infuence the economy dramatically as they
grow older. Another 100 million or so live in rural India. Even here,
many young people are having their frst taste of rising prosperity
and expectations.
One result is that computer literacy and education are eradicating
caste barriers. While caste and social position still dominates
Indian politics, sociologists predict the rigid lines of the system will
continue to ease. Already, urban youth are more concerned with
their professional ambition than their caste.
In addition, massive computer literacy could do plenty for India's
economy. National per capita income is currently $450 per year.
But a 10% increase in computer literacy in a single year would
push per capita income up to $650.
FASHION ARENA:
If your books about India tell you that India is one of the largest
exporters of tea, jute and tobacco, and that's it... get yourself a real
education: India also happens to be one of the biggest players in
the international fashion arena, in fabric sourcing for fashion
wear.
Talk to any garment exporter in India, and you will fnd occasional
references to "a heavy booking season", and that "buyers are in
town". So who are these buyers? Next and Top Shop of the UK,
Federated Stores, R.H. Macy's, Target, Maryn's, to name a few -
all names you have read of in fashion magazines or heard your
fashion-savvy cousins pontifcating about with religious fervor.
These and many other international fashion chains have made a
beeline to India for its mind-boggling range of fabrics, new concepts
to incorporate in their own designs, as well as for a sneak preview
of what will be hot on the international markets next season.
This works boths ways, Indian garment exporters are extremely
quick on the uptake about what will sell next year, and fashion
houses go home with new ideas, new fabrics to use, and new
sources of raw material.
The Indian garment and fabric industries have several major
factors going in their favor, in terms of cost-efectiveness in
manufacture and raw material, quick adjustment to what will sell,
and a vast and relatively inexpensive skilled work force. India ofers
the international fashion houses competitive prices, shorter lead
times, and a virtual monopoly in embellishments.
This last includes intricate hand embroidery - an absolute rage the
world over - and accessories like buttons, zippers, laces, et cetera.
For instance, were you aware that "Sadar Bazar", a vast
marketplace for garment accessories and base materials in New
Delhi, India, is known as the "bull's eye" of the Indian garment
industry, and is an important nodal point in the world map of
garment manufacturers? Those cool brass buttons on your Levi's or
Wranglers just might have originated at Aziz and Sons Button
Wallahs, some 7880 miles from where you go shopping for
jeans in Los Angeles, CA!
In the embroidered garments segment, India has always been the
default source, but the recent devaluation of the rupee against the
dollar has further lowered prices, favoring buyers, so the
international fashion houses walk away with customized, fnely
crafted works of fabric art at throwaway prices.
The borrowing of traditional Indian concepts does not end here,
what with vests made of kantha and mirror-work, appliques, screen
prints and sequin-work evening wear being hot buys this coming
fashion season.
As for the market for fabrics, the variety available in India can leave
the buyer impressed but confused. A key determining factor in the
selection of fabrics is the current "fashion movement" in the
international market. For instance, the recent "eco-friendly",
politically correct "natural" wave saw fabrics like pure cottons,
linens and silks from India being lapped up by fashion trendsetters
the world over.
Much of the manufacturing activity for this takes place in parts of
the world you would never even have heard of, like the small town
of Chapa, in the eastern state of Bihar, where fabric production is a
family industry. The variety and quality of raw silks churned out
here belie the crude production methods and equipment used -
tussars, matka silks, phaswas, you name it, they can make it.
Surat, in the state of Gujarat, far to the west, is the source for an
amazing array of jaquards, moss crepes and georgette sheers -
all fabrics used to create those dazzling silhouettes seen on the
ramps of the hottest fashion shows the world over.
Another Indian fabric design that has practically made fashion
history is the "madras check" - originally used for the ubiquitous
"lungi", a simple lower body wrap worn in southern India, this
pattern has now made its way on to bandannas, blouses, bags,
home furnishings, and practically anything else you can think of!
Of late, designers like Jean-Paul Gaultier have been increasingly
using Indian fabrics, designs and cuts to enhance their western
wear fashion collections. The Paris-based designer duo, Didier
Lecoanet and Hemant Sagar, have used a lot of Benares Brocade in
their Spring/Summer Collection recently unveiled in New Delhi
for a select audience. There is a trend in the making here...
Forget Louis Feraud or Paul Smith, ethnic Indian design is in, and
not just in India - whether it be a batik cravat, a tie-and-dye T-
shirt, or a vegetable dye block-print skirt. So don't blink if you see
a Donna Karan creation in a Madras check, or spot Naomi
Campbell in a brocade jacket with a Kantha skirt to match... Talk
about making a fashion statement!
Tarun Tahiliani, another Indian fashion designer, argues that the
country's opening up to the world has actually made Indians more
comfortable with their own country and culture. He says he
remembers being obsessed with obtaining blue jeans as a teenager
living in Goa - and once paying a cash-strapped Western hippie for
his ratty denims. Today, with easy access to Western clothes, he
says some Indians are pining for things Indian.
HISTORY OF DENIM
Genoese sailors found it difcult to keep their white trousers clean,
and the dyed ones faded fast invariably in humid and often hot
atmosphere on the high seas. They were in search of a suitable
fabric. They occasionally sailed to Nimes, a city in south France,
and found a heavily twilled fabric with diagonal wale, described as
serge similar to their own fustian. French dyed this fabric with
indigo blue, a natural dye. Even though this colour also faded but
indigo being a crystalline substance had its peculiarities. The
indigo crystals refect light; hence even faded jeans look bright and
not dull. Genoese adopted this fabric for their jean. Later the fabric
came to be known as 'Serge-de-Nimes'.
Since the French alternative was better and tougher, the Americans
too started buying the fabrics from France and used the same for
their waist-overall, discarding the canvas. Given the American
tendency for cutting the name short, the complex 'Serge-de-Nimes'
quickly became "Denim". It was only in 1960, Americans adopted
Jean as a name for their waist-overall made from denim. This is
how present day blue denim jeans were born.
Fashion-wise denim has gone through many phases. From its
initial indigo blue dye it went through various washes; stone-wash,
chemical-wash and now enzyme-wash to give it a pre-faded look.
While most denim still remains blue a market for other colours has
also grown recently.
Made popular by celebrated stars like Wayne, Gary Cooper and
Clarke Gable by wearing them in their many successful flms, the
verve for Denim Jeans caught on in India in the nineties mainly
due to electronic media campaigns. The emergence of international
brands in India such as Lee, Wrangler, Levi's, Calvin Klein,
Jordache and Pepe added further to the popularity of Denim
Jeans. Indian brands, which became popular in Denim Jeans, are
Flying Machine, Numero, Blue Lagoon, Unnex, Bufalo, UFO, Avis
etc.
Initially a man's garment, jeans became popular for women also
after Levi's aired its famous "Travis" television commercial in 1981
followed by extensive media campaigns projecting women jeans as
a sex symbol. Jeans have diferent connotations for diferent
people. To the present generation jean means disco; from casual
wear to party wear. As a part of India's fashion revolution, it has to
be seen how long the fad for blue jeans is sustained, considering
previous decade has seen volatility in the demand of jeans
elsewhere in the world.
Denims
DENIM PROFILE
Denims
TYPE
WEIGHT (In Oz)
SPECIFICATIONS
REGULAR/BASIC
6.5 TO 14.5
In indigo, width 150 cm. B!c" in w#ight 10.5 O$ to 14.5 O$.
RI%G SLUB/RI%G STREA&'
11.0, 1(.5 ) 1*.+5
In indigo, width 150 cm.
CROSS ,ATC,/CROSS-.IRE
10.0, 1(.5 ) 1*.+5
In indigo, width 150 cm. /idth o0 1*.+5 O$ i1 160 cm.
2IRT'
1(.0
In indigo, width 150 cm.
STRETC, 3(-*4 L'CRA5
6.0, 10.0, 11.0 ) 1(.0
In indigo. /idth 7!8i#1 08om 1*( cm to 150 cm.
JEANS
History of Jeans:
Jeans as they are called today, had their origin n U.S.A.Jeans gets
its name from genoa as sailers from genoa wear pants of Denim.
The word 'DENIM' comes from a french town called de-nimes where
this fabric was frst made. In the early sixties, jeans were used
mainly by industrial workers, miners, farmers and manual
labourers because of both their durability as well as low cost.
Today jeans made out of denim has won the hearts of not only
youth but has crossed all boundaries of class, age, sex and
nationality. Jeans started to spread outside America during and
after the Second World War. Denim then sparked of an enormous
demand, which was difcult to fulfll, and became a strong force in
the clothing sector.
Today jeans have become the worlds most sought after casual-wear,
a "passion in the material world".
Land marks in jeans Evolution
1873-Levistrauss made the frst jeans in SanFrancisco,USA.
1890-First 501 Indigo Jeans form Levis.
1904-Establishment of Blue-Bell company(wrangler Brand)
1950-First Zipper Jeans was Introduced.
1954-Hollywood status marlon Brando and James Dean appear in
Jeans.
1962-14.5 oz/Square Yards Jeans appears from Burlington.
1974-Prewashed Jeans made.
1986-Chemical washing process developed.
1990-Denim market moves from work wear segment into fashion
segment.
Jeans, a symbol of casual lifestyle, has gained lot of popularity, in
the last fve years, in India. Jeans difer from conventional trouser
because of very heavy fabric, specialised accessories, style and
fnishing(stone washing, chemical washing etc).As a result, a
completely new quality standards have been evolved and jeans have
remained more popular, in ready-made from. There has been
advantage of growing jeans market. Jeans are retailed between
Rs.250/- per jeans to Rs.2500/- per jeans. Many times, a customer
is not able to comprehend the diference between two diferent
brand of jeans. At the same time, one fnds two brands with almost
same level quality are being sold at very diferent brand of jeans. At
the same time, one fnds two brands with almost same level quality
are being sold at very diferent prices.

JEANS MARKET:
The jeans culture of the USA found its way to India around the late
sixties. Imported jeans were much in demand the jean market has
expanded substantially in India since the mid 1970's growing of
jeans culture with satellite invasion, ever growing strong middle
class, jeans a symbol of casual life style has attracted several jean
manufacture to join in the market.
The entire jeans market today is segmented into fve classes the
segmentation of the market and players along with its price are
given below:
9AR&ET SEG9E%T
:RICE RA%GE3R1.5
;ARIOUS BRA%2S



S<=#8 :8#mi<m
1100 ) !>o7#
L#7i1,G!=,G<#11
:8#mi<m
?00-1100
L##,"i#8,:#==#,L## coo=#8,/8!ng#8
U==#8
650-?00
.@ing 9!chin#,S<nn#A,B!8#,:#=# &i#8,L!wm!n
9idd#
450-650
T8igg#8,/In1ton#,Bo8d!ch#
Low#8
(50-450
%#w=o8t,R<0 ) T<0
3So<8c#C2#nim G!8m#nt !nd 9!8"#t An!@1i1,A 8#=o8t o0 &G G!8m#nt1,9!@
1??65
Unti 1??( th# D#!n m!8"#t in Indi! w!1 domin!t#d >@ <n>8!nd#d D#!n1 !nd
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The total size of the premium jeans and casual wear segment in
value is approximately Rs 300 crore (at retail price) and is growing
at the rate of 20 percent annually. He claims that Pepe's share of
this segment to be around 30 per cent. Eventually, over the next
year or so, Pepe's portfolio will comprise 40 per cent jeans, 30 per
cent casual trousers and 30 per cent shirts and T-shirts.
Today jeans, priced between Rs 895 to Rs 1,295, straddles the
semi-premium and premium segments of the domestic jeans wear
market.
The upper end of this market is highly competitive with the
traditional big guns of the global jeans industry holding sway. The
players are Levi's, Lee, Wrangler, Pepe and Killer.
The return of denim is a fashion wave. Notwithstanding a seven to
eight per cent growth in the current fnancial year, the jeans wear
market could grow at an estimated 15 to 20 per cent CAGR over the
next three to fve years.
The total current jeans wear market in India is pegged at around
25 million pairs out of which 1.25 million falls in the premium
segment and growing at fve per cent, 8.2 million in the standard
segment and emerging at 15 per cent, 14 million in the value pack
with 10 per cent growth.
But a buoyant market alone won't ensure the success of a new
jeans brand as the customer's mind could well be colonised by the
big brands.
Most jeans in India ofered core denim in the classic American or
European mould. This perhaps explains why most of Levi's sales in
India come from customers above 30 years. The industry fgures
suggest that the youth market, aged between 18 to 21 years,
account for only 14 per cent of Levi's sales whereas any
aspirational jeans brand should look at at least 33 per cent of its
revenues coming from this core customer base.
There wasn't enough innovation in fabric, fnishes and washing,
indicating why a section of the youth was buying into knock-ofs
from Malaysia and Thailand.
Previously, printing on denim was done through bleaching, which
took out the indigo but left the fabric weak. Now a days indigo is
burnt out without causing damage to the fabric and ensures
durability.
In jeans wear, the innovation possibilities are mainly in washing,
fnishes and in fabrics. Some manufacturers have tied up with
frms in Spain to bring the latest in washing techniques. With their
Its investments in excess of Rs 1 crore, which include machines
with robotic arms that can print even the minutest fonts in under
ten minutes.
RELATED REPORTS:
The study is an annual tracking of Indian consumer preferences,
conducted in association with ORG-MARG, indicating consumers'
top-of-mind, actual purchases and future purchases in menswear,
womenswear, kidswear and accessories.
Using the quota sampling method, the study is based on empirical
data collected from 5,601 consumer interviews on structured
questionnaires administered in multiple shopping areas across 13
cities, according to a press release.
The survey was conducted in phases. Unaided top-of-mind recall
was elicited in order to determine the popularity of brands. Scores
were applied to assign relative ranks to brands for diferent
categories studied. Further, consumer purchases made in the last
one year were registered. Also, the consumer's imminent and future
purchases were registered to compile the fnal brand's score.
Apart from brand positioning, the IMAGES-ORG MARG report
analyses the probability of fashion and lifestyle brands to appear in
the consumer's next shopping sequence.
Among menswear, Allen Solly with a total of 2,402 points scored
over others in the Rs 2,016-crore branded shirt segment in India.
Peter England with 2,082 and Louis Philippe with 1,212 followed.
Among the Rs 675-crore branded trousers market, Allen Solly was
the No. 1 brand, followed by Lee and Park Avenue.
Lee with 2,683 points dominates the Rs 691-crore branded jeans
segment, followed by Levi's and Killer. Park Avenue leads in the
branded suits segment, while Raymond and Givo followed.
Adidas with 956 points has emerged as the most preferred T-shirt
brand, followed by Lee and Nike.
VIP with 3,914 points scored over others in the branded
undergarment segment, followed by Jockey and Rupa.
Womenswear continues to be at an embryonic stage, according to
the study. Benetton with 218 points emerged as the top scorer in
the branded women's western wear segment, followed by Lee and
Allen Solly.
In the Rs 83.8-crore branded jeans market, Lee scored the highest
points, with Levis' and Pepe at second and third rank. Lovable
emerged as the No 1 brand in the Rs 348 crore branded women's
undergarment category, followed by Jockey and Feelings.
In the Rs 545-crore branded kidswear segment, Weekender has
been ranked as the No. 1 brand, followed by Benetton and Gini &
Jony.
ARVIND MILLS IN INDIA:
In India, they command a market share of approximately 72% - 5
times that of the next largest player. Their denim is used to make
India's leading jeans brands -
Flying Machine, Killer, Levi's, Numero Uno, Pepe, Texas Jeans, UFO
and Wrangler. "Made from original Arvind denim" is used by all the
leading local jeans manufacturers as an indicator of high quality
and authenticity.
They also export denim to over sixty-six countries worldwide. The
US forms 31% of their export market, while the EC and Hong Kong
constitute 20% and 24% respectively.
Denim exports constitute approximately 50% of their turnover, and
Arvind Denim - which is sold as a brand and not a commodity - is
used to make some of the most desired jeans brands around the
world - Brittania, C & A, Federated, Jordache, Lee, Lee Cooper,
Limited, No Excuses, Pepe, Tillis Pavely and Wrangler. They make
over 150 varieties of speciality denim - stretch, coloured, faded,
streaked, mercerized, striped, checked, ring, brushed, soft,
speedwash, silver streak and overdyed. From small pieces to large
300 metre rolls, from 4.0 oz to 16.0 oz, from good old classic to
ever-popular indigo blue 14 1/2 oz. open end - they can ofer you
denim in just about any weight, weave and wash.
This is what they ofer:
Tencel Denim: Woven century luxury cellulosic fbre made from
specially grown woods and transformed in non-chemical process
which give feel of silk and comfort of cotton.
Stretch Denim: Woven with lycra from Dupont, stretch is the
established fashion fabric for women and recently in menswear
niche segments too who believes in exact ft and comfort.
Chinos: Two ply chino denims in indigo dyed shade have an unique
soft hand feel, Fabric cover and a luxurious appeal.
Polyester Blends: Cotton rich polyester denims with superior hand
feel, luster and colour contrast for fashion market.
Tinted Denim: The Cotton denims are enriched with diferent
colour cast by tinting or overdyeing technology.
Rain Denim: Novelty loom denim with a fne weave & premium
'Run' efect for an unique appearance.
Super Dark denim: Stay blue and stay black indigo products with
diferent tonal efects for younger generation.
Crosshatch Denim: high fashion denim with enhanced fabric
texture.
Vintage Jeanswear:
*premium ring denims in 7 ozs to 14.75 ozs/sq. yd ofers excellent
yarn characters, softness and fabric strength.
*Vintage Dusk- Grey cast efect or give unique, second hand look.
LEE COOPER:
Denim has of late become an attitude statement. Just when people
thought it had been replaced by cotton and khakis, the world’s
most popular fabric has come back in a big way in several variants
and styles. It is no longer just the basic fve pocket style. From the
coolest of teenybopper parties to the classiest of corporate
meetings, chances are atleast half the crowd will be attired in
denims -- raw or treated!
“The comeback of denim shows that people still like the fabric, but
they want it in diferent forms. The fts have also undergone a sea
change,” explains Mr Gurbir Singh, Chief Operating Ofcer, Indus
Clothing Ltd, the exclusive licensee of Lee Cooper in India.
Denim has undergone a lot of changes over the past two decades.
“Till the 80s, the only two choices in denim jeans were unwashed
or rinsed, with the additional dark appearance so characteristic of
denim. The concept of stone washing (a kind of fnishing
treatment), brought about a dramatic change and fads like ‘snow
wash’, ‘ice wash’, ‘granite wash’, along with other innovations in
varied colours soon followed. But denim has come a full circle ...
from the raw to distressed, to tattered, to shiny, to rugged, to silky,
to steel and from 100 per cent cotton to diferent blends.”
What are the latest trends for the season? With denim, the used
look is presently very much in vogue across the globe. And the
‘raw’ look is in. A good ft, which sits low on the waist and slims
through the hip and waist with a slight fare below the knee is the
ultimate ft.
What are the latest innovations in denim? A lot of experimentation
is being done with the fabric itself like two tones, techno denims,
tencel blends etc. The use of new fabrics like ring denim,
crosshatch and sandblast are now in vogue. Then there are
innovations in post stitching treatment like sand blasting,
bleaching, printing etc.
The target segment of Lee Cooper being youngsters in the age
group of 18-22, the company has introduced a unique service
called ‘Sneak Peek’. Lee Cooper has entered into a strategic tie-up
with Warner Bros. Pictures, as part of which all its customers have
the beneft of watching the latest Hollywood blockbusters produced
by Warner Bros. on purchase of Lee Cooper products worth a
certain amount.
Lee Cooper predicts that apart from the basic blues, blacks and the
dark denims, Lycra with a lot of contrast stitching details and tops
in bright checks will be the highlight of the forthcoming fashion
season.