Brand Story of Donear Industries Donear Industries, a well-recognized Group in India and abroad, is one of the best-quality product makers and innovators, who have been in business for 30+ years. The promoters treat textiles as the Group’s core business and have been putting in their best efforts to grow the business year on year. Apart from being a leader in India, the Donear Group also has a strong presence in 20+ countries globally. With a comprehensive product basket, the company is able to supply fabrics to India’s largest brands including Louis Phillipe, Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group and more. In retail, the Donear Group has a strong network of 185+ stores, marketing textiles under the D’Cot & Donear NXG brands. There are 5 brands under Donear Industries with have state-of-the-art manufacturing facilities in Amritsar (GRADO) and Surat (Donear). DONEAR – Suitings and Shirtings fabrics D’Cot by Donear - Apparel DONEAR NXG - Apparel GRADO from the House of GBTL and OCM – Luxury fabrics GRAVIERA – Stretch fabrics We are presenting below the excerpts of our online interviews with top executives of all the five brands as an overall brand story of Donear Industries. Mr. Ajay Agarwal, Executive Director, Donear Industries Ltd. Introduction Donear set foot into the industry in 1971 from a small unit with an objective to provide high quality fabrics for Suitings, shirting and trouser to customers. With years of dedication and quality Donear slowly became a household name and eventually moved from being a Private Ltd. to a Public Limited Company. We have been offering polyester viscose blended fabrics, polyester cotton blended fabrics, polyester fabrics, cotton high value plain and yarn dyed shirting fabrics, and cotton plain and yarn dyed bottom wear fabrics, as well as polyester wool, wool rich, and all wool fabrics. Being a commerce graduate learnt the business from my father late Karmayogi Shri Vishwanath Agarwal have now spent 2 decades in this industry and
Ajay V. Agarwal also known as AVA, Executive Director, Donear Group is a Commerce Graduate and is well experienced in the textile industry since last two decades. He is equipped with brilliant business acumens and skills to quickly adapt to the changing scenario of the textile market. He has excellent marketing skills to his credit and is a person who understands the market, organises sales conferences and provides feed back to the customers and the company. Mr. Ajay Agarwal Through his strict credit controls and Executive Director selection process of customers of the Donear Industries Ltd. Company, he ensures smooth cash flows with minimum levels of payment defaults. Ajay is in constant touch with the market and is aware of the latest development in fashion and design which makes him a veteran in the textile field. Under AVAs leadership, over 50 agents, 300 wholesalers and 15000 retailers have been successfully catering to the dynamic and versatile domestic market. with a bent towards product and marketing growing each day. NCM-JUNE 2019 47
Brand Story of Donear Industries About Company's Products
Export potential and opportunities
Donear Industries Limited is wellrecognized in India and outside as one of the best-quality product makers and innovators, who have been in the business for 40+ years. The promoters treat textiles as the Group’s core business. It has production capacity of around 55 lakh meters per month with latest technologies and machinery at Surat. Apart from being a leader in India, Donear also has a strong presence in 36+ countries globally. With a comprehensive product basket, the company is also an active supplier of fabrics to India’s largest brands including Louis Philippe, Van Heusen, Peter England, Blackberry, Arvind, Wills Lifestyle, Future Group and more. Been the leaders in having the widest color pallet for each collection of stripes/checks/dobbies and prints which is widely accepted.
India has a large textile manufacturing set-up and is among the very few countries with production facilities across each level of the manufacturing value chain. Given our high-quality fabrics and increasing demand in the market across the globe, the export potential and opportunities for our products is on the upper scale.
pattern every season. Also the company is focused on market expansion and we are talks with potential trade partners to increase our market presence.
The ‘China’ factor and it's impact
Current Scenario
Emerging challenges
Let us take a peek into the history of Donear. The textile scenario in India was poised to become more enterprising and proficient with a global outlook in the 1970s when Mr. Vishwanath Agarwal, a visionary with high entrepreneurial skills, realized the importance of futuristic fashion and fabrics in India. Woven intricately with Mr. Agarwal’s vision, foresight and determination, the brand DONEAR was created in 1977, and within a short span of time, it became a household name along with other Indian brands.
The emerging challenges are from unorganized manufacturer, imported fabrics and local brands with cheaper price range thus difficult to combat a specific segment of audience. Consumer shift to readymade garments poses a great challenge to the industry.
Currently, it is the largest manufacturer of branded suiting and shirting fabrics in India. A fast emerging market, with approximately billion mid-income level population by 2035. This will be good for the country’s textile industry in the long run.
Global trends in the textile and clothing industry
Company's strategy The strategy is specifically on innovation in product and quality. Donear known for its quality and thus we keep the research ongoing to give the market new style/ design/ color and
According to certain reports, global textile and apparel trade grew at a rate of 5.6 per cent over the last decade to reach a value of $820 billion. During the same period, India’s export of textile and apparel grew at a comparatively higher rate of 9.5 per cent to reach an export value of $42 billion. These numbers are a factual representation of export avenues open for our textiles in the global market.
The textile industry is growing as custom tailored outfits is gaining momentum steadily. With the product quality and wide range of offerings the industry will grow leaps and bounds.
According to the latest report by Grand View Research, Inc., the global textile market size is projected to reach at USD 1.23 trillion by 2025, expanding at a CAGR of 4.24%. Population growth, income levels, and rapid urbanization, especially in developing countries, are likely to increase the product demand. A rise in the number of retail outlets is expected to increase the demand as well. NCM-JUNE 2019 48
China’s textile industry is one of the largest in the world, with India being an equally competitive market. Currently, China is at a stage where it wants to focus on manufacturing high value products, like textile machinery, factory requisites etc, in order to get an upper hand in the industry. Indirectly, this means that their textile production is slowly diminishing while they’re concentrating on creating the procedural item rather than low value ones. This is resulting in India getting more orders in the international market. Hence, in this manner, the ‘China’ factor is playing an important role for our textile industry. The current global slowdown may be affecting trade volumes as the costs of machinery and materials are rising, but it is not a cause for concern as of now. With suited planning and ecosystem forecast, it is possible to handle this problem without any sideeffects. The Future Outlook The future of Textile Industry in India
Brand Story of Donear Industries is bright if we control the options we have in hand. A lot of international players are now focusing on creating high-end textile apparatus and gadgetry, which is decreasing their main product volumes. This works in favor of our Industry as international sales have gone up already. Given the strong retail networks in India, coupled with increasing consumer markets, the Indian Textile market is going to enhance its robust value in the future. At the Government and Expor t Promotion councils’ levels, I would suggest making industrial centers, workers’ skill and development institutes to support us in enhancing our workforce’s efficiency. We are more than happy to welcome government policies for betterment of Industry. In lieu with market sentiment there is surely need for policy changes for the growth of the sector as it has been stagnant in for many years. Future expansion plans for Donear We must always look at an organization’s growth the way we would envision a child’s development, in terms of empowerment and skill development. At Donear Group, every passing day comprises of immense learnings and continual innovation. In the next 5 years, I see our organization making a huge difference in the field of textiles and apparels in terms of product and increased avenues of employment in our sector. The will and goal to make quality products for our country whilst boosting our Industry at the same time – it is a two-pronged secret of our success Having detailed out the crux of our Industry’s talk points, it is essential for us to support the ‘Make in India’ project for one main reason – to uplift our own economy, our own people. Purchasing home-grown items boosts any industry in a massive way, which further leads to a brighter future for all the sectors and industries present in our country.
Mr. Rahul Agarwal, Director, Donear NXG I am a graduate from Babson College, USA holding BSc degree in Strategic management and Economics. Right after my graduation, I joined our family business that is into Textile manufacturing and marketing. I initiated the Apparels vertical. We are a USD 270 + million group with major focus in textile. However, over the past few years we have diversified into other business verticals. Apparels being one of them is a three year old venture, which is growing exponentially year or year. We ventured into this business in 2016 by setting up a distribution network of readymade distributors across the country. Reason for entering the same was because we saw there was a shift in consumers buying pattern and more and more consumers were shifting to readymade apparels from Ready to stitch fabric. Since we had a recognized brand name and manufacturing strength to design and develop the best fabrics, we felt this was a natural transition from our current businesses. We see a great potential in this venture and aim to take this business to a 200 crore division in the coming 5 years. About apparel brand, Donear NXG Esteemed Apparel brand, Donear NXG, a leading lifestyle Menswear brand from the House of Donear Industries Ltd., took the Menswear Category by storm post its introduction in the market. A popular brand in the market with top celebrity Sushant Singh Rajput as the brand ambassador, it combines style and comfor t in a seamless and debonair manner, which is present in the Mid-Price category. With a wide range of Shirting, Trousers, T-shirts, Denim and more, Donear NXG apparels provide the perfect blend of charisma and style for men to up their fashion quotient. Based on intensive study and research, the markets where NCM-JUNE 2019 49
Mr. Rahul Agarwal Director, Donear NXG Donear NXG spread its wings through its distribution channel and large format stores at market spaces which includes Metros, Tier I & Tier II cities. Donear Group, in a strategic move to increase its market share, launched our brand - DONEAR NXG – which is targeted at young and successful professionals & entrepreneurs represent the future generation. This highlights the fact that there is an increase in demand for apparels across all generations, keeping in mind the wide reach of internet as well. According to me, the Indian textile and apparel market is going to blossom even more, in the coming years, due to a culmination of several factors across the globe. We are approaching this business as a mass market brand and setting up distribution network district wise rather than state wise to penetrate faster in the rural markets. Due to low barrier to entry, the industry is highly competitive as there are many regional players who are dominating their areas at a low distribution cost. Moreover, the aggressive expansion of large format stores like Reliance trends and FBB is eating into the market share.
Brand Story of Donear Industries Eventually, the small players will consolidate as they would not be able to compete with the larger organized retailers. Global trends It is a known fact that something as dynamic as the textile and clothing industry is not immune to the Butterfly Effect. Having said that, it is being observed that Middle-Eastern and African regions (MEA) will witness revenue growth at a CAGR of 4.19% from 2019 to 2025, thanks to constant products and services innovations in the apparels application segment. This will further result in Asia Pacific registering the highest CAGR during the forecast years. The key indicator is that of product innovation, which is being observed across the Industry, hence emerging as the centric global trend. Along with this, e-commerce is also becoming a big avenue for sales. Export potential and opportunities Currently, there are several other countries like Bangladesh and China, having cost and resources advantages over India, which are restricting the entire pace of the apparel export sector of our country. Keeping that in mind, there are nations which are focusing on other aspects of the Industry, resulting in lesser product volumes, which is increasing our exports avenues as well. There are pros and cons of every situation and it is important to focus on what can be leveraged upon, to play to our advantage. As I’ve mentioned above, there are several countries focusing on creating high-price products and services like machinery, gadgetry etc. This has resulted in lesser product volumes for them, which has directly increased our role in the international markets, with more orders and exports. So, I would say that this particular ‘China factor’ is affecting the Indian Textile Industry in a good way.
The current global slowdown is affecting numerous industries across the world. For the Indian textile industry, high production costs and lost market shares have resulted in a reduction of demand and sales. Awareness about the global standards/certifications More and more Indian brands have become careful in terms of where their products are being produced and have started to look for facility that are social compliant. Compliance will play a big role going forward and for the same we are in talks with various complied factories to have long term contracts.
single GST tax structure for all readymade garment goods irrespective of prices. The government should implement this as early as possible. With Donear Group being our mother brand, Donear NXG has a proven track record for creating new success stories. With the launch of our brand, newer avenues were opened, hence making it a perfect strategic move. Currently, our main focus is on launching new collections as it is imperative to be in sync with industry trends and capture our target audiences’ mind-space with innovative products.
Future outlook & govt. policies The textile industry’s retail chains in India are extremely strong and wellconnected, which help in a constant cycle of sales and revenue for innumerable brands. While the global space might be slightly shaky right now, the future of textile and apparels industry in India is bound to bloom. At the Government level, it is essential to create Centers for Skill and Development for the workers in order to increase efficiency levels and match those of our neighboring countries. The Export Promotion councils should capitalize on the empty market spaces being left by certain countries in the global market, in order to use it to the Indian Textile and Apparels industry in entirety. We expect the government to have a NCM-JUNE 2019 50
The heavy research and development that goes into our product and market strategies – is the secret to our success – because it enables us to create what our consumers like to purchase. In an industry riddled with immense competition, it is important to make sure that one’s brand is constantly innovating and coming up with new ideas to make new waves in the market. DONEAR NXG Men's Cotton Checkered Yellow Shir t Rs. 799 on Amazon
Brand Story of Donear Industries Mr. Rahul Agarwal, Director, GBTL, On Graviera Graviera has been a household name for about 40 years now, providing the best fabric across the breadth of the country. The initiation began with Graviera post the Donear Group acquisition in 2017. Ever since then we have envisioned big things for this brand – in terms of product, process, manpower and advertising. With a rich heritage of over 40 years, Graviera from GBTL Ltd., is a pioneer in the ready-to-stitch, over-the-counter Fabric Industry - with top celebrity Sushant Singh Rajput as their brand ambassador. A popular brand in our country, they provide pro-fashion fabrics at affordable prices with a strong and loyal bond with trade partners who are associated with more than 25 years. With an elaborate and well-established PAN-India Distribution channel in place, we cater to a multitude of consumer needs via a wide and unique variety of collections. Our strong markets are Northern and Eastern regions with highquality products. Graviera is the kingpin in the StretchFabric category for suits, blazers and trousers! The new ‘Twist-and-Twist’ range is available in Poly-Viscose (PV) and in PV Blends which is comfortdriven and naturally wrinkle resistant. It’s an ideal fabric play for those ‘onthe-go’. Market outlook There is a joint study by Assocham and Resurgent which states that the Textile sector in India is about 10% of the country's manufacturing production, 5% of its GDP, and 13% of exports earnings. Along with this, it is one of the largest industries of our country in providing employment opportunities. Based on my experience, the textile sector is economically important for India, from the point of value addition, capital investment as well as foreign exchange + export earnings.
Donear group acquired 100% holding of Grasim Bhiwani Textiles Ltd. (GBTL) - the P/V (polyester viscose) and P/W (Poly Wool) suiting fabrics subsidiary of Aditya Birla Group's Grasim Industries - in July 2017 through a share transfer agreement. The above picture is of the Press Conference that was held for the annoucement of acquisition of GBTL. Seen in the picture (L-R) are: Mr. Rajendra Agarwal, Managing Director, Mr. Rahul Rajendra Agarwal, Director, Donear Group, and Mr. S. Krishnamoorthy, Managing Director, GBTL For Graviera, the strategy has been to make a never-seen-before quality product. Which is precisely why we are focused on the stretch-fabric category. Another major insight for our focus has been on developing utilitarian and comfort-driven products for the youth of today. That is why a large segment of our offerings has myriad designs, colours and are a value-for-money purchase. The impending challenges are fast fashion and the switch to ready-towear being high on the radar. We counter this by customising trends for each market and through a sweet price point so counter the switch. Based on our understanding at Graviera, the global trends in the Textile and Clothing industry include ‘consumer-requisite’ fabrics, development of technical textiles that are environmental friendly and utilitarian, textiles that offer comfort even at high temperatures. In international markets, there is always a demand for high quality and durable textiles, which are easy maintenance and provide convenience in day to day NCM-JUNE 2019 51
life. Given the quantum of labour available and economical costs, it is but natural for global markets to opt for products from our country. Since we have created a niche for ourselves in the textiles market, especially for our USP – stretch fabrics – the export opportunities are immense. It is natural for industries to change focus basis their respective ecosystem in terms of policies, consumer market and more. It has been observed that the Chinese textile industry wants to concentrate on the creation of highpriced products. This has lessened their share in the textile market, which has directly increased ours. This particular ‘China’ factor has worked in our favor and will continue to do so. The current global slowdown has definitely affected our demand and supply but it is nothing that can’t be recovered from, with proper strategies and business forecasts in place. Global standards/certifications Environmental sustainability is a reality and all of our units comply to this. Be
Brand Story of Donear Industries it conversation of electricity to efficiency in assembly line production. It is definitely the need of the hour. Having said that, we are ISO certified and are consistently trying to better ourselves. Given the increase in consumer markets as well as newly-opened export shares, the future of Textile industry in India is going to be a fruitful one. In terms of steps needed to promote our industry at the Government level, and the export promotion council, it is necessary to create platforms for enhancing the workforce’s skills, create more employment opportunities and ensure that there are no unfair means of competition in the market. Being a youth-oriented brand, there is a strong advantage of coming from the reputable House of Donear Industries Ltd., with a competitive price-point in an organized market. Thus, the brand offerings are of superior quality at enviable prices – it is a win-win situation for the consumers. Currently, our main focus is on creating new collections around our USP, ‘stretch fabrics’, as our ‘Twist-and-Twist’ range is available in Poly-Viscose (PV) and in PV Blends which are comfortdriven and naturally wrinkle resistant. It’s an ideal fabric play for those ‘onthe-go’. Interestingly, this was also created based on consumer insights about not having any comfortable ‘stretch’ fabrics in the market.
Mr. Vikram Mahaldar, Managing Director, OCM Being a graduate from Babson College, USA, I hold a BSc degree in Strategic Management and Economics. Right after my graduation, I joined our family business of Textile manufacturing and marketing. Using my industry knowledge and insights from the market, we have successfully launched GRADO into the market with a complete brand overhaul – from the brand identity and bettering products across the assembly line. GRADO from The House of GBTL and OCM is a new-age brand with the star wattage of the greatest celebrity of Mr. Vikram Mahaldar Indian cinema, Mr. Amitabh Bachchan Managing Director, OCM as the Brand Ambassador. Brand ‘GRADO’ has ushered in a successful new wave in the ‘Luxury Fabrics & Apparels’ industry. The brand caters to maximum product segments and across a range of price points; so there is something for everyone. The product positioning and price points play an important role to increase sales potential for the trade - to cater to different product segments and to different end-customers. From an endconsumer viewpoint, the composite Power Brand ‘GRADO’ offers a rich repository of fabrics and apparels to choose from, namely, Wool, Wool blends, PV, PV blends and cotton. Thereby, increasing not only the retail space, but also enriching the consumer consideration set PAN-India. With growing awareness on the latest trends and increased consciousness among consumers, the textile industry in India is very optimistic. The overall market size of textile industry is huge and is on a path of unprecedented growth.
Proper understanding of our end consumers’ requirements and product innovation – these should the major ingredients for any brand’s winning formula. If we want our economy to flourish, we have to support our home-grown brands across all industries. It is one of the most foolproof methods of not being affected by any kind of fluctuations in the international markets.
GRADO from the House of GBTL and OCM has joined forces with Sunrisers Hyderabad (SRH) as its principal sponsor and cotton blazer partner for IPL 2019. NCM-JUNE 2019 52
Brand Story of Donear Industries This industry is expected to reach US$ 230 billion by next year. Creating an experiential effect with a value-for-money price range and choosing brand ambassadors that the people like and identify with are some of the initiatives we have incorporated to drive our growth in the upward direction. Companies are also moving towards automation to decrease inefficiencies. Few challenges overall include Illicit Markets, Excise Duty on man-made fibres and the Impact on Environment. Having said that, our company has very stringent policies regarding sustainability and counterfeit products. The global trends in the textile and clothing industry vary from player to player. For us, maintaining demand requires building of a loyal network, aggressive marketing and a lot of effort. The Indian market has been rapidly evolving and the consumers are becoming mature with their demands & choices in fashion. In recent times, the market has progressed inevitably and people are adapting to different styles, fashion, markets, fibres & fabrics inspired by the global market. We are creating our own pattern basis to the 8 season concept that has been adopted by the Indian market where every 2 odd months, the fashion cycle changes. Few trends that we have adopted include bringing in Khadi, a series of Indigos and a variety in staples like Blacks and Whites. This is over and above the colour play based on trends. Also, functional fabrics; such as anti-stain, anti-wrinkle and wrinkle resistant have become the norm. Export potential and opportunities Thirteen percent (13%) of the country’s export earnings is from the textile and apparel industry thus the position is well established. The export market has always been a key focus area for us and we envision to ramp up our efforts even more so and venture out
and deliver innovative products. The quality we offer and the consistency in product are truly world-class, which is what makes our clients come back to us – time and again. The ‘China’ factor and it's impact The growth of China’s textile industry has been one of the dominant factors in shaping the worlds’ cotton and textile markets in recent years. India has also been equally competitive in the market. Currently, China is focusing largely on expanding its reach into textile machinery, factory requisites and latest fashion adoptions to continue being on the top position of the market. We can say here that their production has and is diminishing due to their extension in the bureaucratic decisions largely by creating the low value products. This has been helping the Indian market as we are notably getting more export orders in last few years. In a way ‘China factor’ has been playing as an “angel in disguise” for the Indian textile market. As there is a sudden global slowdown, it has star ted affecting the trade numbers and the cost of machineries which are rising constantly and which in turn might affect the production on a very large extent later. I believe with suitable ecosystem and planning, every player in market should focus on the business challenges which can be handled without any after effect. Sustainability and global standards/ certifications Everyone is moving towards sustainability – and striving towards more ecologically viable solutions. At our plants – both in Amritsar & Bhiwani – have the highest credence allocated for certifications. Across the value chain, we endeavor to have a defectfree product. Prominent certifications for fabric manufacturers are ISO & NABL and we have secured both to assure the customer of a premium quality product. NCM-JUNE 2019 53
Future outlook The future of Indian textile will outshine the recent market scenario in the coming years. Given the strong retail networks in India, coupled with increasing consumer markets, the Indian Textile market is going to enhance its robust value in the future. And at the levels of the government and promotion councils I believe that making industrial centres for workers’ skill sets and development of institutes in support for betterment. As far as the government policies are concerned, echoing market sentiment, we would recommend change in the rates of schemes and some policy changes are necessary - which has been stagnant in the textile industry for many years. Future plans Every day brings with it some new opportunities to learn and grow - for both individuals and brands. We, at Donear Group, imbibe those learnings and incorporate them in our business to come up with top quality products for our customers. Walking on the same path, we aim to be a household name in the textile industry with our inimitable range of apparels and fabrics. The secret to our success lies in the continuous process of being able to address the market and consumer requirements which is right from product quality/ variety in designs/ new age technology /pricing and prompt service on any aspect. Our trade has appreciated and supported us to great extent and thus the success is steady.
Brand Story of Donear Industries Mr. Akash Manwani, Assistant Vice President, D’Cot by Donear DONEAR Industries Limited, one of India’s leading textile player is known for being a trailblazer in the fabric industry. From championing in simple, functional dressing to a more conceptual style statement, Donear Group has taken over the men’s fashion world by a storm. Donear, as an organization, stands for quality and innovation and has continuously reinvented themselves to cater to the varied tastes of stylish Indian men. In other words, Donear’s aesthetics are neither defined by a single taste nor confined by a strict style.
Mr. Akash Manwani Assistant Vice President, D’Cot by Donear Donear forayed into value retail business in October 2007. Perceiving the changing fashion trends of the Indian consumer to attain pocket friendly fashion-status Donear launched D’Cot - An exclusive mid-priced retail chain that is set to redefine contemporary fashion with its unique yet innovative range of apparels and accessories. A youthful and trend setting brand indeed! More than 3-decade-old reputed & fastest growing fashion fabric brand, Donear has a greater understanding of the Indian Retail Industry, which is
ranked among the ten largest retail markets in the world. Presently with over 200 retail outlets across India, D’Cot is set to become a formidable & foremost Qualitywear & Stylish brand! And with Donear’s experience & expertise, D’Cot will extend its chain further... will reach milestone of 400 EBO’s in near future. Backed with best of infrastructure D’Cot is set to take the Value Retail Lifestyle market by storm!
apparels which include Shirting, Trousers, Core & Fashion Denim, TShirts, Suits & Blazers, Winter Wear, Koti and accessories as well.
A highly enterprising & energetic brand – D’Cot employs Discount Value Retail format regularly with various promotions, discounts, schemes and offers to ensure that the customers gets the best value for money along with uncompromised & unmatched quality.
Indian textile and apparel market
We are very particular of our quality standards, fit type and thus every single unit goes under 3 layered quality process for the same. We consider two major production cycles for launching our collection i.e Summer & Winter, which is further segregated amongst marriages & festivals. A complete fashion house with fabulous & appealing clothing line(s), D’Cot by Donear, from the House of Donear Industries Ltd, is an exclusive mid-priced retail chain that is redefining contemporary fashion with its unique yet innovative range of apparels catering to men’s Ready-to-wear category. Being a youthful and trendsetting brand, it has a wide range of NCM-JUNE 2019 54
Currently operating 200 Franchise Owned-Franchise Operated (FOFO) Exclusive Brand Outlets (EBOs) under the Sale-or-Return model, it has its footprints in 15 states & 3 union territories across Metros, Tier 1, Tier 2, Tier 3 and Tier 4 towns
The close linkage of the textile and apparel industry to agriculture (for raw materials such as cotton) make the Indian textiles sector unique in comparison to industries across the globe. Our industry has the capacity to produce a huge range of products catering to various market segments, both national and international. In my experience, I have observed that the rise in income levels of target groups has driven major demand for our industry. Given the easy accessibility and availability of raw materials, coupled with skilled manpower, it enables us to have a competitive advantage over other countries’ textile and apparel industry. Superior quality, right mix of merchandise, pocket friendly pricing along with our franchisees esteemed trust on brand, seamless customer experience and satisfaction have been some strategic factors driving the growth of D’Cot by Donear. While
Brand Story of Donear Industries another major strategic decision is type of franchise, so for us franchising is the core integral part of our business. In this competitive business environment only creating ‘Ownership Culture’ can attain growth. We at D’Cot by Donear respect and reward each such individual franchisee who is not only our trade associate or partner, but also the entrepreneur. D’Cot has successful and proven business model across multiple location in the country with network of these entrepreneurs. We intend to grow our franchise network to 500 EBO’s in the near future.
growth & government policies promoting India as a future must have market, brands are eyeing the lions share in the untapped territories. Global trends The current global trend in the Textile and Clothing Industry is major growth, expected at 4 percent rise till 2025. This can be attributed to the growing demand in both domestic and global markets. Adoption of latest technologies and introducing innovative product designs will be the key to tackle the rising competition for the Indian companies.
a good sign for any industry, especially for ours, given the multitude nature of our competition as well as our products – apparels – which everyone needs on a daily basis. The future of Textile and Apparel Industry in India is looking bright with increased revenue from national and international markets, extended market shares and space. According to me, the Government bodies and Export promotion councils must help us build the skills of our manpower to match the ever-rising competition (internationally). Government policies
Challenges & opportunities Export potential and opportunities India being one of the most lucrative retail market is continuously attracting global retailers as they can’t afford to miss out on such a huge consumer base. Considering the intense competition not only to acquire consumers but to acquire sustainable retail space is even a tough challenge. In our country’s retail landscape uneven supply of retail space is the biggest challenge which also affects the rental cost of the store also that organized retail is not considered as a industry it is considered as a part of retail in generic term, whereas in a country like ours, government should take support measures as organized retail landscape can offer huge employment opportunities as well. In the past decade, organized retail has witnessed numerous changes & lot of innovations have happened which gave us unicorns like Flipkart & many others. What we see in terms of Indian context is “Value” was merely a generic term 10 years back, while today value has different propositions under it. Retailers have outstretched themselves to even focus on once a niche segment now large base of consumers going for it. Technology has evolved so much that something for everything is available for the consumer to make better choices. With rural India & further smaller markets witnessing
Given a major vacuum created by certain countries due to a shift in their priorities, it has opened major export potential and opportunities for us, globally. Our country and industry’s international orders have already increased, thus confirming the fact that India’s export numbers are going to increase within the next 5 years. With regards to the ‘China’ factor, there have been speculations of adverse effects due to political tension but I don’t see that happening. Both parties are fully aware of the dynamics involved in this process and according to me, it doesn’t look an inevitable course. As mentioned earlier, certain countries have left a major chunk in the Exports industry, China being one of them. This has affected us in a good manner, by resulting in increased orders for us in the international market. The current global slowdown has surely impacted our industry by slowing down the demand and supply cycle in the industry, but I’m sure it’ll pick up in the next 6 months, with the help of creative marketing strategies and innovative products. A rise in demand for products is always NCM-JUNE 2019 55
Our suggestion to the government is to set up a separate ministry for the organized retailers. Expectations from the government include: input tax credit of GST paid on rent shall be allowed for inter state locations as well, and the GST on garments above Rs.1000/ - shall be brought down to 5% Future plans Being a part of Donear Industries has given us major leverage in terms of capitalizing on the Value Retail Lifestyle market. Currently, our future expansion plans include opening more EBOs across the country, with increased options for our consumers as well. The key secrets of our success include that of loyalty, satisfaction and market presence. Our brand also operates under the discount format, wherein consumer gets discount from 20% to 60% throughout the year, depending upon the season cycles & stock ageing. This helps in driving demand and sales. Proper planning and a forecast of the business ecosystem is absolutely necessary to tackle a problem, if any. Intensive research and development is beneficial for a brand, product wise and revenue wise, in the present and long run.