Indian Apparel Retail Industry

The apparel retail industry consists of the sale of all menswear, womenswear and childrenswear. The
menswear market includes men’s activewear, casual wear, essentials, formalwear, formalwear-occasion
and outerwear. The womenswear market includes women's activewear, casual wear, essentials,
formalwear, formalwear-occasion and outerwear. The childrenswear market includes baby clothing, boys
activewear, boys casual wear, boys essentials, boys formalwear, boys formalwear-occasion, boys
outerwear, girls activewear, girls casual wear, girls essentials, girls formalwear-occasion, girls outerwear
and toddler clothing. The industry value is calculated at retail selling price (RSP), and includes all taxes
and levies.

Textile sector in India accounts for around 8 per cent of GDP, contributes 14 per cent of the value
addition in the manufacturing sector and more than 30 per cent of the export earnings of the country. It is
the single largest employer with an estimated workforce of 35 million.The government has promised to
create 10 million jobs over the next five years (From year 2009) . The government has also announced the
constitution of a 41-member working group to form a national fibre policy, aimed at making India self-
sufficient in fibre consumption and export requirements.

A new focus on the apparel retail sector has attracted attention in recent days. Top exporters have
introduced their own brands and are aggressively positioning themselves within segments of the domestic
market. The rising importance of branded segments in the domestic market combined with the pressure of
import competition is blurring the boundaries between exports and domestic production in countries with
large home markets, such as India. With the changing lifestyles, organized retail is playing a key role in
structuring the Indian domestic market, reinforced in particular by rising incomes and growing purchasing
power among consumers in rapidly growing sectors of the economy such as information technology and
business process outsourcing.

Retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new
formats such as departmental stores, hypermarkets, supermarkets and specialty stores. The branded
apparel market represents the largest source of growth. The mens branded apparel market is growing at a
rate of 21.8% and branded womens apparel segments represents 35% of the total branded apparel market
and is growing at an incredible 23% annually.

Leading domestic retailers are becoming more firmly entrenched, increasing their scale of operations and
stabilizing their logistics and technology initiatives. A few significant foreign players have been selling
their branded apparel in India for number of years. But, now, just like their India counterparts, global
apparel brands are setting up their own apparel outlets, instead of just selling through departmental stores.
Though local retailers generally enjoy higher margins, they wont be able to keep global retailers at bay
for long because of international experience, buying power, IT systems and cash flow to tolerate lower
profits. Presence of these brands will make the Indian Consumer become more aware of the international
fashion and lifestyle trends leading to a move-up of the industry in the value chain

International brands such as Benneton, Lacoste, Levi Strauss, Crocodile, Dockers, Lee, Wrangler, Nike,
Reebok, Adidas, Guess, Esprit, Mango, Hugo Boss, Mark & Spencers and Tommy Hilfiger, Versace,
FCUK etc have already built a retail presence in the country to target at the premium end. The premium
apparel segment in India is valued to be growing at 20 per cent.
 About Raymond

Customers today the world over, are looking at one-stop shops that can fulfill all their needs. At
Raymond, we offer fully finished products that span various garment categories that has been made
possible by a seamless horizontal and vertical integration across divisions. Our textile solutions
encompass everything - from worsted suiting to denim and shirting.

Being integrated suppliers of fabrics as well as garments, Raymond offer our customers total textile
solutions.

A) Worsted

 Largest manufacturer of worsted suiting.

 Capacity of 31 million meters.
 3 integrated world-class plants in India.

B) Tailored Clothing

 Manufacturer of fine tailored formal suits, jackets and trousers.

 Capacity of 1.0 million suits, jackets and 2.0 million trousers annually

C) Denim

 Manufacturer of specialty ring denim, fashion & colour denim.

 Capacity of 47 million meters.
 JV with UCO NV Europe’s largest producer of denim fabric.
 Manufacturing units in - Europe and Asia.

D) Jeanswear

 Manufacturer of high fashion jeanswear.

 Capacity of 1.5 million pairs of jeans per year.
 Integrated garment design, sewing and washing operations.

E) Shirtings

 Manufacturer of fine cotton and linen shirting fabric.

 Capacity of 11.5 million meters.
 JV with Gruppo Zambaiti, Italian high fashion cotton textile group.

F) Dress Shirts

 Manufacturer of formal shirts.

 Capacity of 1.5 million shirts per year.
 Technical collaboration with Flex, Japan.
G) Woollen Outerwear

 Manufacturer of Outerwear fabric, Carded woollen shawls and Blankets.

 Capacity of 1.7 million meters.

Raymond Brands

Raymond

For over 80 years, Raymond is counted as one of the world's premier manufacturers of worsted suiting
fabric in fine grade wool, in the same league as the finest that Europe has to offer.

Today, the Raymond product range includes pure wools, wool blended with exotic fibres like camel hair,
cashmere and angora and innovative blends of wool with polyester, linen and silk. Offering suiting and
trousering fabric for all occasions and needs.

Our domestic distribution is spread far and wide with more than 30,000 outlets that stock and sell our
wide range of fabrics.

Fine products, wide range, superb distribution and intelligent advertising support have helped the
company gain a dominant share of the market. No wonder, premium labels from the world's fashion
capitals prefer Raymond.

Raymond Premium Apparel

Raymond Premium Apparel is a premium formal wear brand which is postioned to offer classic garments
with impeccable fits and inviting styles to the Global Indian. Needless to say that the product is made
only from premium Raymond fabrics.

Manzoni
Manzoni is a luxury lifestyle brand offering the discerning customer a super premium range of formal
wear and sportswear including shirts, suits, trousers, jackets, ties and leather accessories. Our exclusive
designs provide customers the best in contemporary international style & luxury. Each garment is crafted
from the most exotic cotton silk, linen and superfine wool, the best-in-the-world linings, interlinings and
threads sourced from around the globe.

Park Avenue

Launched in 1986, Park Avenue is today, India's most admired formalwear brand. It offers stylish and
innovative wardrobe solutions to gentlemen for all their dressing needs, be it Business, Evening, Leisure,
Travel or Heritage Wear. The brand has received several awards. Recently, it had the honor of being the
'Most Admired Brand' at the Lycra Images Fashion Awards 2007 for the third consecutive year.

Crossing the gender divide, Park Avenue launched 'Park Avenue Woman' - a complete range of Business
Wear for women. ‘Park Avenue Woman’ is designed specially for the working women professionals of
today.
Color Plus

ColorPlus is one of India's premium and most respected casual wear brands offering customers a range of
shirts, trousers, knits and survival gear. ColorPlus constantly innovates processes and technologies
offering buyers new worlds of comfort. Some of the technological innovations it is well known for;
include thermo-fused buttons, golf ball wash, soft jeans, wrinkle free technology, stain-free fabric, and the
cone dyed technique.
Adding new color now to the woman’s wardrobe, ColorPlus recently launched ColorPlus Woman - An
exclusive range of smart-casual clothing.

Parx

Parx is a premium casual lifestyle brand, which is positioned to cater to the needs of consumers who are
looking for dressing up for life across occasions and events. Parx makes available the latest international
trends through differentiated designs and styles. It has always been part of the consumer who is looking at
making lifestyle statements.

Zapp!

The burgeoning children's wear market has now turned stylish with Zapp! - our range of stylish and
fashionable kidswear. The brand brings to 4-12 years a wide range of clothes, accessories, bed and bath
linen and more. The first Zapp! store has been launched in Ahmedabad with ten more on their way for
kids across the country.
Notting Hill
Notting Hill reflects style and manifests originality of today's fashion- conscious and discerning young
professionals at an affordable price. The brand collection features a spectrum of men's lifestyle products
comprising of suits, shirts, trousers, jeans, t-shirts and also accessories like ties, handkerchiefs and socks.

The Raymond Shop

The Raymond Shop is a premium retail store offering complete wardrobe solutions for men which
includes top-of-the-line brands - Raymond, Raymond Premium Apparel, Manzoni, Park Avenue,
ColorPlus, Parx and Notting Hill.

The Raymond Shop has been a pioneer in organized retailing in the country starting around five decades
ago. Our wide reach and range of products makes it the largest one stop retail network in the country.
Over the years, The Raymond Shop chain of stores has become a yardstick by which other retail stores
are judged and constantly sets new standards and creates environments that make shopping a pleasure

Raymond Reach

The Raymond Shop network started with a small corner shop in Ballard Estate, Mumbai around five
decades ago. It has grown multifold with a dedicated team making it the largest retail store in the country
having over 500 stores in prime locations, in over 200 cities in India.

Our overseas network spans 39 stores in 15 plus cities across the Middle East, Saudi Arabia, Sri Lanka
and Bangladesh.
The Raymond Shop retail chain occupies a space of more than 1 million square feet built-up area.

Our wide reach all over the country across big cities and smaller towns allows us to reach a wide
spectrum of consumers. We have now extended our reach with a presence in some of the leading Malls
with new retail formats.

1) What challenges you may have to face with the existing retailers/ exporters.

- An extensive competition due to the domestic players getting the foreign investments and
launching their own brands.
- Apart from the foreign investments, the other reason for increasing competition is due to the
cheap products available from neighboring countries.
- Differentiation through Services - Apparel retailers are adding home decor, footwear, and
cosmetics.

- New concepts are progressing through the growth stage and reaching maturity faster than ever,
A compressed retail lifecycle would put pressure to increase the pace of innovation.
- New strategy to deal with powerful retailers
- Negotiations with powerful retailers will have to be carried out at much higher executive levels
within the firm.
- Firms will also have to re-engineer their logistics policies to meet the demands for just in time
delivery to distribution centres or stores
- New product introductions will have to be coordinated with the retail chains so that adequate
shelf space is available at launch.
- Carefully look at their product cost structures both in terms of variable cost and allocated fixed
costs in order to maintain profitability in the face of pressures for price reductions from powerful
retailers.
- Retailers develop alternative types of own labels targeted at different consumer groups in their
outlets
- The issue is not of retailer selling brands but branding the retail business itself, like the fashion
store.