Fashion Industry Analysis Part 1

FASHION
INDUSTRY
ANALYSIS
MANASI SAWANT (88)
ABHISHEK JAIN(62)
ANKITA SURVE(69)
GAURAV TONPAY(78)
YASH ANDRADE(120)
FASHION INDUSTRY ANALYSIS
MAJOR CHARACTERISTICS OF THE INDUSTRY

India is a nation with an ancient tradition of clothing design, and it is as much
an emerging fashion destination.
In spite of its overwhelming presence in newspapers, magazines and on
television, the fashion industry in India is young. The first professional fashion
show was held in this country just over 20 years ago.
The word 'fashion' brings on images of glamour. The onset of the worldwide
fashion market in India has given a thrust to the fashion industry. This has
attracted so many young people to this industry.
Today, there are a couple of hundred Indian fashion designers peddling
designs and wares. Some are well known and are expanding, slowly but
surely, into the international market. India's romance with fashion design has
just begun and is bound to grow by leaps and bounds. Glamour has caught
on. Young women want to emulate models and the designer wear of Hindi film
stars.
Fusion of Indian and western looks are all the rage. Then, there is everything
from pure ethnic wear, highly suitable for Indian bridal collections to purely
Western style designer wear for the red carpet. India loves fashion!
India hosts its own fashion weeks in Delhi and Mumbai which seem to be
getting bigger and better every year. The names are getting known as well -
Rohit Bal, Tarun Tahiliani, Ritu Kumar, Manish Malhotra, Ritu Beri, Manish
Arora, Satya Paul, Rocky S --- the list just keeps growing.
Market Size
The Indian fashion industry is expected to reach US$ 400 million in a couple
of years with vigorous growth of over 10 per cent year-on-year. While this is
tiny compared to the global industry, it is not too bad for an industry in this
stage of infancy.
The reason India’s fashion industry will have a bright future is that it has a
large young population. This, combined with increasing disposable incomes,
has led to an increase in consumerism. So, those who can afford are looking
for high quality and originality.
They love brand names. Hence, we can say that the future of fashion industry
in India looks promising.
Potential
This industry offers an abundance of opportunities for artistic, hard-working
and enthusiastic people. The scenario for fashion design graduates looks
good, thanks to the enormous and still increasing demand for stylish clothes
and the quantity of exports.
After successful accomplishment of the graduate course, one can be

self-employed. On the other hand, several garment store chains, export
houses, leather companies, textile mills, boutiques, fashion show organizers
and jewellery houses recruit professionals
fascinated with a career in fashion designing.
Major players in the Fashion Industry (India)
The fashion industry in India currently is considered dynamic. Over the last
few decades the fashion industry in India has experiencing a boom due to the
ever increasing fashion consciousness among Indians. Be it the middle aged
homemaker, the funky college kid or the top notch everyone seems to have
developed a fashion sense which is distinct and classy.
Apparels are a major part of fashion throughout the world. Indians really
believe in the famous saying "Clothes make a man". A person more often
than not is judged by the way he/she is dressed. Apparels define the
personality of a human being. It talks a lot about his/her education, personality
and way of thinking. It is said that it is the massive Indian fashion consuming
class that will set the global fashion industry in the next few years.
The boom in the Indian apparel industry is mainly due to factors like, rising
incomes levels of Indians, liberal trade policies adopted by the government,
and flexible investment policies on the apparel industry. Today most of the
international brands have found their way into some of the best malls in the
country. Brands like Mango, Armani and Diesel were unheard off in India till a
few years back but today these brands are found in almost all Indian cities.
It is said that in the last ten years the fashion industry in India has moved from
a very nascent stage to a full fledged booming industry. The value of the
apparel market in India is estimated at around ` 20, 000 crore. The branded
apparel market size is ` 5, 000 crore which is a quarter of the total share. The
apparel market is India is categorized into branded and non branded. The Top
Apparel Brands in India are Madura Garments, Arvind Mills, Provogue Zodiac
Clothing, and Raymonds. Apart from these brands India over the years has
given birth to some of the finest designers who have become famous brands
not only in the country but in the world. The introduction of a number of
designers in the fashion industry has given a further boost to the Indian
fashion industry.
According to recent research conducted by the (FDCI)Fashion Design Council
of India apparels created by designers in India is going to play a major role in
the growth of the apparel industry in the next few years. Currently the Indian
fashion designer industry stands at ` 180 crore and is expected to grow to ` 1,
000 crore within the next decade.
List of Top Apparel Brands in India
1. Rohit Bal
2. Ritu Wears
3. Sabyasachi
4. Fish Fry
5. Satya Paul
Other Major Players in the Fashion Industry
● Indian Retail Market

● Alok Industries
● Raymond Group
● Provogue
● Spencers
● India Retail Sector
Global Fashion Brands
Sales
Change
End of Sales (Billion (%)
Company Name Countr
y Fiscal (Trillion s
(Flagship Brand) (local
Year of yen) of
base)
dollar)
INDITEX (ZARA) Spain Jan 201 3.33 30.97 +8.7

. 8
Hennes & Mauritz Swede No 201 2.61 24.31 +4.0

n v. 7
FAST RETAILING(UNIQLO) Japan Au 201 1.86 17.34 +4.2

g. 7
Gap USA Feb 201 1.70 15.86 +2.2

. 8
Limited Brands USA Feb 201 1.36 12.63 +0.5

. 8
PVH (Calvin Klein,Tommy USA Feb 201 0.96 8.91 +8.7

Hilfiger) . 8
Ralph Lauren USA Apr 201 0.71 6.65 -10.2

. 7
NEXT UK Jan 201 0.61 5.64 -1.0

. 8
AMERICAN EAGLE USA Feb 201 0.41 3.80 +5.1

OUTFITTERS . 8
Abercrombie & Fitch USA Feb 201 0.38 3.49 +5.0

. 8
Esprit Hong Jun 201 0.22 2.04 -10.4

Kong . 7
Market Structure
National Data
Domestic market size of the clothing and footwear industry: 68 billion dollars
Domestic market size of the textile industry: 108 billion dollars
Employment in fashion-related industries: 60 million
Brands like Benetton, Zodiac, Z3, Zara, Vero Moda, Calvin Klein, Diesel and Tommy
Hilfiger have experienced good sales growth in the country, while names like Zara,
Armani, Forever21 or Uniqlo appeal to the Indian audiences, attracting higher per
square foot sales compared to the departmental or hypermarket stores.
On the other hand, Indian companies like the Arvind group, Madura Fashion and
Lifestyle, Raymond Apparel, Trent Retail, Reliance Retail and Future Group has
launched their own fashion labels.
The following list includes the largest fashion companies in India.

Heterogeneity of the market
Heterogeneity is a key characteristic of the Indian retail market in general. The

complexity of the market can be decoded by comparing it with the developed retail
markets of the West. For example, in the US, there are 4 shops for every 1000
people whereas the corresponding number for India is 14 shops per 1000 people.
The Indian retail market is characterized by a diverse spread of customers with
unique preferences. From a retailer’s perspective, this requires a thorough
understanding of consumer preferences across the country and of the similarity and
differences in consumer buying patterns.
The purpose of differentiation is to show that the product is unique, and therefore,
valued by customers. Instead of selling a product whose comparisons with
substitutes will be made only on price, the company can also differentiate its product
with substitutes on non-price factors. This will bring the company competitive
advantage, and, to benefit from this advantage, the company can make
advertisement targeted on the uniqueness of its product, it is called unique selling
proposition.
When the customer has understood that the product was different from those the
competitors offer, this will develop a preference or brand loyalty. This is the long
term purpose of product differentiation, to make the customer loyal to the brand in
order to change the demand curve (a graph showing the relationship between the
price of a particular product, and the number of this product the consumers are able
and willing to buy for this given price) of the product. This will give the company the
power to change the prices of its products

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FASHION

MAJOR CHARACTERISTICS OF THE INDUSTRY

After successful accomplishment of the graduate course, one can be

Other Major Players in the Fashion Industry

● Indian Retail Market

INDITEX (ZARA) Spain Jan 201 3.33 30.97 +8.7

Hennes & Mauritz Swede No 201 2.61 24.31 +4.0

FAST RETAILING(UNIQLO) Japan Au 201 1.86 17.34 +4.2

Gap USA Feb 201 1.70 15.86 +2.2

Limited Brands USA Feb 201 1.36 12.63 +0.5

PVH (Calvin Klein,Tommy USA Feb 201 0.96 8.91 +8.7

Ralph Lauren USA Apr 201 0.71 6.65 -10.2

NEXT UK Jan 201 0.61 5.64 -1.0

AMERICAN EAGLE USA Feb 201 0.41 3.80 +5.1

Abercrombie & Fitch USA Feb 201 0.38 3.49 +5.0

Esprit Hong Jun 201 0.22 2.04 -10.4

Domestic market size of the textile industry: 108 billion dollars

Employment in fashion-related industries: 60 million

The following list includes the largest fashion companies in India.

Heterogeneity is a key characteristic of the Indian retail market in general. The

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