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Booming Women Apparel Market in India

About the Report

"Booming Women Apparel Market in India" is the new report by that give a rational

analysis on the Indian women apparel industry. This report has been made to help the client

in analyzing the drivers, opportunities, and challenges critical to the growth of women

apparel industry in India. It provides a detailed overview on the market and helps the client

to understand the behavior of Indian consumers and their preferences along with various

distribution channels existing in the Indian market.

The report provides segment-wise account of the women apparel industry in India in terms of

past and current performance. The segment-wise future outlook, based on the rational

analysis of the current and past trends prevailing in the industry, will help the client to

identify future growth segments and the niche markets to target.

The trends, future growth areas, and future roadblocks along with corresponding strategic

recommendations mentioned in the report will enable the client to frame market specific

strategies and to align them with changing market scenario.

Key Findings

Demand for readymade garments in rural India is expected to increase at a CAGR of

16.5% during 2008-2010.

Women apparel market (in value terms) is anticipated to grow at a CAGR of 17.79% till

2010. The organized apparel retailing in India is projected to surge at a CAGR of 30%

from 2008 to reach Rs. 52,289 Crore in 2010.

Increasing at a CAGR of 25%, branded apparel industry for women is expected to hit

Rs. 18,351 Crore by 2010.

The organized lingerie retail market in India is expected to touch Rs 4000 Crore mark

by 2009.

IT revenue from the retail segment is forecasted to grow at a CAGR of 43.41% by 2010.


Key Issues & Facts

What is the market size and scope of women’s apparel industry in India?

What are the current market trends?

What are the various challenges and opportunities for the industry?

Which factors are driving growth in the sector?

What is the segment-wise performance of the women apparel industry?

What is the position of the Indian apparel industry by volume, value and segments?

Who are the key players operating in the industry?

Key Players

This section covers the business overview and financials of major domestic and international

players currently operating in the Indian women apparel industry, including Provogue India

Ltd., Pantaloon Retail (India) Ltd., Levi Strauss & Co., Page Industries & Donna Karan

International Inc.

Research Methodology

Information Sources

Information has been sourced from various credible sources like books, newspapers, trade

journals, and white papers, industry portals, government agencies, trade associations,

monitoring industry news and developments, and through access to more than 3000 paid

databases.

Analysis Method

The analysis methods include ratio analysis, historical trend analysis, linear regression analysis

using software tools, judgmental forecasting, and cause and effect analysis.


Table of Content 1. Analyst View 2. India Apparel Industry - An Overview

2.1 By Value 2.2 By Volume

3. Women’s Apparel Industry 3.1 By Segment

3.1.1 Casual Wear 3.1.2 Formal Wear 3.1.3 Nightwear 3.1.4 Ethnic Wear 3.1.5 Woolens 3.1.6 Others

4. Current Trends in the Industry 4.1 Changing Consumer Behavior 4.2 Booming Organized Apparel Retail Sector 4.3 Growing Per Capita Spending on Apparel 4.4 High Percentage of Shoppers 4.5 Increasing Investment 4.6 Rising Income & Growing Economy 4.7 Demographic Factors 4.8 Changing Retail Industry Landscape & Choice of Retail Channel 4.9 Competitive Advantage

5. Future Growth Areas for the Industry 5.1 Organized Women Apparel Retail 5.2 Large Size Apparel 5.3 Branded Apparel for Women 5.4 Premium Segment Apparel 5.5 Rural Demand for Ready-made Clothing 5.6 Increasing Apparel Sourcing from India 5.7 Rising Consumption Levels 5.8 Online Sales 5.9 Expanding Consumer Class 5.10 Software Sales 5.11 Apparel & Textile Machinery 5.12 Fashion Industry

6. Roadblocks & Strategic Recommendations 6.1 Appreciation of Rupee 6.2 Booming Real Estate Prices 6.3 Economic & Regional Disparities 6.4 Competition from Low Cost Countries 6.5 Low Labor Productivity & Indian Labor Laws

7. Key Players 7.1 Provogue India Ltd. 7.2 Pantaloon Retail (India) Ltd. 7.3 Levi Strauss & Co. 7.4 Page Industries 7.5 Donna Karan International Inc.


List of Figures: Figure 2-1: India - Apparel Market (in Rs Crore), 2002-2007E Figure 2-2: India - Forecast for Apparel Market (in Rs Crore), 2008-2010 Figure 2-3: India - Apparel Market (in Billion Units), 2002-2006 Figure 3-1: India - Women’s Apparel Market (in Rs Crore), 2002-2007E Figure 3-2: India - Women’s Apparel Market (in Billion Units), 2002-2007E Figure 3-3: India - Share of Organized & Unorganized Women’s Apparel Market (%), 2007 Figure 3-4: India - Forecast for Women’s Apparel Market (in Rs Crore), 2008-2010 Figure 3-5: India - Women’s T-Shirts Market (in Rs Crore), 2002-2007E Figure 3-6: India - Women’s T-Shirts Market (in Million Units), 2004-2007E Figure 3-7: India - Forecast for Women’s T-Shirts Market (in Rs Crore), 2008-2010 Figure 3-8: India - Women’s Tops Market (in Rs Crore), 2002-2007E Figure 3-9: India - Forecast for Women’s Tops Market (in Rs Crore), 2008-2010 Figure 3-10: India - Women’s Western Suits & Blazers Market (in Rs Crore), 2002-2007E Figure 3-11: India - Women’s Western Suits & Blazers Market (in Million Units), 2004-2007E Figure 3-12: India - Forecast for Women’s Western Suits & Blazers Market (in Rs Crore), 2008-2010 Figure 3-13: India - Women’s Sarees Market (in Rs Crore), 2002-2007E Figure 3-14: India - Women’s Sarees Market (in Million Units), 2004-2007E Figure 3-15: India - Forecast for Women’s Sarees Market (in Rs Crore), 2008-2010 Figure 3-16: India - Women’s Nightwear Market (in Rs Crore), 2002-2007E Figure 3-17: India - Forecast for Women’s Nightwear Market (in Rs Crore), 2008-2010 Figure 3-18: India - Women’s Ethnic Wear Market (in Rs Crore), 2002-2007E Figure 3-19: India - Women’s Ethnic Wear Market (in Million Units), 2004-2007E Figure 3-20: India - Forecast for Women’s Ethnic Wear Market (in Rs Crore), 2008-2010 Figure 3-21: India - Women’s Woolens Market (in Rs Crore), 2002-2007E Figure 3-22: India - Forecast for Women’s Woolens Market (in Rs Crore), 2008-2010 Figure 3-23: India - Women’s Lingerie Market (in Rs Crore), 2002-2007E Figure 3-24: India - Women’s Lingerie Market (in Million Units), 2004-2007E Figure 3-25: India - Forecast for Women’s Lingerie Market (in Rs Crore), 2008-2010 Figure 3-26: India - Women’s Petticoats & Blouses Market (in Rs Crore), 2002-2007E Figure 3-27: India - Women’s Petticoats & Blouses Market (in Million Units), 2004-2007E Figure 3-28: India - Forecast for Women’s Petticoats & Blouses Market (in Rs Crore), 2008-2010 Figure 3-29: India - Women’s Trousers & Skirts Market (in Rs Crore), 2002-2007E Figure 3-30: India - Forecast for Women’s Trousers & Skirts Market (in Rs Crore), 2008-2010 Figure 4-1: India - Share of Branded & Unbranded Products in Women’s Apparel Market (%), 2006 Figure 4-2: India - Women’s Branded Apparel Market (in Rs Crore), 2006 & 2007E Figure 4-3: India - Share of Ready-to-Wear & Tailor-made Products in Women’s Apparel Market (%), 2006 Figure 4-4: India - Organized Apparel Retail Market (in Rs Crore), 2004-2007E Figure 4-5: India - Organized Apparel Retail Market by Segment (%), 2006 Figure 4-6: India - Per Capita GDP Spending on Apparel w.r.t. Other Key Markets (%), 2003 & 2006 Figure 4-7: India - Population who like to Shop for Apparel (%) & Shopping Trips (in Numbers) w.r.t. Other Key Countries (2006) Figure 4-8: India - Share of FDI in Textile Industry (%), Mar 2006 Figure 4-9: India - Share of FDI in Textile Industry through TUFS Scheme (%), Mar 2006 Figure 4-10: India - Personal Disposable Income (in US$ per Head), 2001-2007E Figure 4-11: India - Median Household Income (in US$), 2001-2007E Figure 4-12: India - Consumer Class* Population & Number of Households (in Million), 1995-1998, 2001-02 & 2006-07 Figure 4-13: India - GDP (in Billion US$) & GDP Growth (%), 2001-2007E Figure 4-14: India - Share of Women in Total Population (%), 2001-2007E Figure 4-15: India - Break-up of Retail Format by Choice of Apparel Shopping (%), 2006 Figure 5-1: India - Forecast for Organized Apparel Retail Industry (in Rs Crore), 2008-2010 Figure 5-2: India - Forecast for Share of Organized & Unorganized Women’s Apparel Market (%), 2010 Figure 5-3: India - Obese Population (in Million), 2005 & 2015F


Figure 5-4: India - Forecast for Women’s Branded Apparel Market (in Rs Crore), 2008-2010 Figure 5-5: India - Forecast for Women’s Premium Apparel Market (in Rs Crore), 2008-2010 Figure 5-6: India - Forecast for Demand of Ready-made Garments in Rural Market (in Rs Crore), 2008-2010 Figure 5-7: India - Forecast for Apparel Sourcing (in Billion US$), 2008-2012 Figure 5-8: India - Forecast for Aggregate Consumption Level (in Trillion Rs), 2015 & 2025 Figure 5-9: India - Forecast for Number of Internet Users (in Million), 2008-2011 Figure 5-10: India - Forecast for Number of Households Earning over US$ 5,000 (in Million), 2008-2012 Figure 5-11: India - Forecast for Number of Households Earning over US$ 10,000 (in Million), 2008-2012 Figure 5-12: India - Forecast for IT Revenue from Retail Industry (in Million US$), 2008-2012 Figure 5-13: India - Forecast for Textile Machinery Demand (in Rs Crore), 2008-09 to 2011-12 Figure 5-14: India - Fashion Industry (in Rs Crore), 2007E & 2012F Figure 6-1: India - Currency Exchange Rate (From US$ to Rs), Aug 2006 to Dec 2007*


List of Tables: Table 2-1: India - Apparel Market by Segment (in Rs Crore), 2002-2007E Table 2-2: India - Apparel Market by Segment (in Billion Units), 2002-2006 Table 4-1: India - Number of Households by Income Group (in Million), 2002-2007E Table 4-2: India - Competitive Landscape w.r.t. Other Countries Table 6-1: India - Rental Charges w.r.t. Top Cities in World (in US$/Sq. Feet), Nov 2007 Table 7-1: Provogue India Ltd. - Key Financials (in Rs Lakh), Sep 2007 Table 7-2: Page Industries - Key Financials (in Rs Crore), Sep 2007


3. Women’s Apparel Industry

3.1.2 Formal Wear

Western Suits & Blazers

With increasing number of working population of women and with more comfort level as

compare to other corporate wear (like Salwar Kameez or sarrees) Western Suits & Blazers

market for women’s will increase The total market size for Western Suits & Blazers will be

and will be mainly dominated by organized players and choice of branded wear.

Figure 3-12: India - Forecast for Women’s Western Suits & Blazers Market (in Rs Crore), 2008-2010

0

100

200

300

400

500

600

700

2008 2009 2010

in R

s. C

rore

Sarees

With entry of designer wear and opening of large number of brand outlet will definitely boost

the sarees market in future.

Premium segment sarees as compare to economy or mass segment sarees which close to


Figure 3-15: India - Forecast for Women’s Sarees Market (in Rs Crore), 2008-2010

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5000

10000

15000

20000

25000

2008 2009 2010

in R

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rore


4. Current Trends in the Industry

4.1 Changing Consumer Behavior

Changing lifestyle and consumer behavior resulted in the women’s branded apparel market

The total value for women’s branded apparel was as compared to (branded apparel for women

accounted for total apparel market Also, the rising trend of family shopping in malls has

prompted apparel brands to offer a wide range of products to customers. And now, brand

expansion is the next step in the Indian branded apparel sector to cater to the varied tastes

and preferences of the Indian customer.

Figure 4-1: India - Share of Branded & Unbranded Products in Women’s Apparel Market (%), 2006

Branded Unbranded

4.3 Growing Per Capita Spending on Apparel

From 2003 to 2006, global consumers increased their spending on apparel Increased

spending was seen in all countries except Japan, where it fell to an average per year.

Italian, English, and German consumers spent the most on apparel the least among

all countries. The US consumers spent an average of on apparel. In terms of GDP per

capital spending on apparel, India lagged much behind China However, India recorded

a growth of strong


during the same period. Slowly but strongly rising GDP per capita spending on apparel is driving

the women apparel market in India.

Figure 4-6: India - Per Capita GDP Spending on Apparel w.r.t. Other Key Markets (%), 2003 & 2006

0

2

4

6

8

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12

US

Th

aila

nd

UK

Ch

ina

Ger

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Ital

y

Jap

an

Bra

zil

Co

lum

bia

Ind

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(%)

2003 2006


5. Future Growth Areas for the Industry

5.7 Rising Consumption Levels

India has now entered a virtuous long-term cycle in which rising incomes lead to increasing

consumption, which, in turn, creates more business opportunities and employment.

The aggregate consumption in India will grow in real terms The contribution to consumption

growth from urban India is estimated to be and rural India While the numbers indicate

the growth potential, a more relevant challenge for marketers is to identify the underlying

drivers of consumption – those ideas, needs and values which are resonating through the

socio-cultural system as a whole – and thus would find their manifestation in a whole range

of

product categories.

Figure 5-8: India - Forecast for Aggregate Consumption Level (in Trillion Rs), 2015 & 2025

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10

20

30

40

50

60

70

80

2015 2025

in T

rilli

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Rs

5.12 Fashion Industry

Indian fashion design industry is expected to grow much faster than projected and likely to touch

from the current level of because Indian companies are heavily investing big sums in the industry, consumer


increasingly shifting focus towards designer wear, exposure to western media and readily

availability of designer wear in the shopping malls. The Indian fashion industry accounts for

barely of the international industry’s net worth. About of male shoppers and of

female shoppers prefer shopping for designer wear in departmental stores. Comparatively,

for exclusive brand showrooms. Indian designer wear commands a category engagement

Figure 5-11: India - Fashion Industry (in Rs Crore), 2007E & 2012F

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100

200

300

400

500

600

700

800

2007E 2012F

in R

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rore

Moreover, the Indian fashion industry is at an advantage than countries as far as its growth

prospects are concerned. India is the third-largest cotton producing country in the world and

also possesses an abundance of talented designers.


6. Roadblocks & Recommendations

6.3 Economic & Regional Disparities

While India has emerged as one of the fastest growing countries in the world, there still exists

the challenge of regional and economic disparities. The varied income levels, economic gap

between urban and rural areas, cultural differences, and difference in consumer behavior can

act as barriers for retailers. These disparities can force the retailers and companies to design

different strategies for different regions as single strategy will not help the companies to

expand and penetrate into the market.

Recommendations

Companies must take into account these factors while framing their market strategies and

must opt for different strategies for different regions depending on consumer behavior,

economic level and regional fashion trends.

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