Research and Markets: India Apparel and Footwear Market Outlook to 2015

India Apparel and Footwear Market Outlook to 2015

The Report titled India Apparel and Footwear Market Outlook to 2015 provides a comprehensive analysis of the Indian apparel and footwear industry. The report covers market size of the apparel industry, segmentation on the basis of product, industry structure and demographics, SWOT analysis and future outlook of the apparel industry. It offers market information of the footwear industry , segmentation, SWOT analysis and future outlook. The report also entails information on the sportswear market and v arious macroeconomic indicators' current and future projections.

The size of the Indian apparel market has increased from USD 17,803 million in 2003 onwards to USD 32,458 million in 2009 at a CAGR of 10.5%. During 2007-2009, the industry registered a doubl e digit growth rate.

The country has witnessed an increase in the consumer expenditure on apparel. Individuals have become more conscious regardin g their outerwear and are willing to spend more on the apparels. The rising population along with the increase in the disposable income of the consumers has led to the increase in the expenditure in the apparel sector. Over the years the expenditure has increased from USD 16.2 in 2003 to USD 27.2 in 2009, registering a CAGR of 9.0%.

SWOT analysis of Indian Apparel & Textile Industry

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SWOT analysis of Indian Apparel & Textile Industry The Indian Textile industry adds 14% to the industrial production and 8% to the GDP of India. It provides employment to 38 million people and thus, is the second largest employment provider after agriculture. The Indian Apparel & Textile Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports of the country. A systematic SWOT a nalysis of the textile and apparel industry indicates the following: 1. STRENGTH I. Raw material base India has high self sufficiency for raw material particularly natural fibres. India s cotton crop is the third largest in the world. Indian textile Industry produces and handles all types of fibres. II. Labour Cheap labour and strong entrepreneurial skills have always been the backbone of the Indian Apparel and textile Industry. III. Flexibility The small size of manufacturing which is predominant in the apparel industry allows for greater flexibility to service smaller and specialized orders. IV. Rich Heritage

The cultural diversity and rich heritage of the country offers good inspiration base for designers. V. Domestic market Natural demand drivers including rising income levels, increasing urbanisation and growth of the purchasing population drive domestic demand. 2. WEAKNESS I. More dependence on cotton Due to over specialization in cotton, the bulk of the international market is missed out, synthetic products in India are expensive and fabric required for items like swimsuit, sky wear and industrial apparel is relatively unavailable. II. Spinning Sector Spinning sector lacks modernization and there is a need of introducing new technology. III. Weaving Sector India has relatively less number of shuttle-less loom. IV. Fabric Processing Processing is the weakest link in the Indian textile value chain, adversely affecting its ability to compete in exports. V. Poor Infrastructure High power costs and long export lead times are eroding India s export competitiveness across the textile chain. VI. Low Labour Productivity Productivity levels for manufacturing various apparel items are far lower in India in comparison with its competitors. OTHER WEAKNESSSES VII. Less attention on man power training VIII. Poor quality standards IX. Distance of the potential market X. Lower average consumption in domestic market

XI. Lack of professionalism and integration of supply chain XII. Dependence on quota system XIII. Very low investment on R&D XIV. Limited exploitation of economies of scale 3. OPPORTUNITIES I. Growing Industry World textile trade would continue to grow at a rate of 3 -4% to reach $200-210 billon by 2010. II. Market access through bilateral negotiation The trade is growing between regional trade blocs due to bilateral agreements between participating countries. III. Integration of Information technology Supply Chain Management and Information Technology has a crucial role in apparel manufacturing. Availability of EDI (Electronic Data Interchange), makes communication fast, easy, transparent and reduces duplication. IV. Opportunity in High Value Items India has the opportunity to increase its UVR s (Unit Value Realization) through moving up the value chain by producing value added products and by producing more and more technologically superior products. 4. THREATS I. Decreasing Fashion Cycle There has been an increase in seasons per year which has resulted in shortening of the fashion cycle. II. Formation of Trading Blocks Formation of trading blocks like NAFTA, SAPTA, etc; has resulted in a change in the world trade scenario. Existence of bilateral agreements would result in significant disadvantage for Indian exports. III. Phasing out of Quotas

India will have to open its protected domestic market for foreign players thus domestic market will suffer.

India's Apparel Retail Market - Current Scenario

Source: Textile Review The Indian retail industry undergoes major revolutions. Retailing in India is gradually becoming the next boom industry. In India, there will be the fastest growth in retailing and real estate. The consumer buying patterns and behavior are changing steadily. The growth of India's retail sector not only limited to urban areas but also growing in rural areas. In the next five years, it is expected that, India's retail industry will expand more than 80%.

The apparel retail market sector consists of the sale of all men's wear, women's wear and infant's wear. The men's wear segme nt consist of retail sale of outer and under garments for men and boys. The women's wear retaiI market consists of the retaiI sale of all women's and girls' garments including dresses, suits and coats, jackets, tops, shirts, skirts, blouses, sweatshirts, sweat ers, underwear etc. The infants wear retail market segment includes sales of garments for chiIdren between the ages of 0 -2 years. The Indian economy is growing by 8% a year. Business in India is booming over the years. The stock market increase by nearly 40% in 2005.Many foreign investors become interested to invest in India. There are about nine million small grocery shops in India. The Indian retail industry undergoes a major revolutions. Retailing in India is gradually becoming the next boom industry. In India, there will be the fastest growth in retailing and real estate. The consumer buying patterns and behavior are changing steadily. The growth of India's retail sector not only limited to urban areas but also growing in rural areas. In the next five years, it is expected that, India's retail industry will expand more than 80%.