DFU’s DESIRE DENIMS & CASUALS
VOL.15 NO.1
VOL. 15 NO. 1
Denims The Growth Story Continues
NIRMALESHWAR DEVA
MAHAMAYA MATA
KRISHNADARSHI ICHHAPOORTI GANESHA
GURUMATA NIRMAL AMMA, FOUNDER, MAHAMAYA TEMPLE
THIS “SUMMER FAIR EXPRESS” ISSUE IS DEDICATED TO OUR DIVINE GURU MATA NIRMAL AMMA & MAHAMAYA DEVI
MAHAMAYA MANDIR, VANGNI (E), e-mail:devibhaktiprachartrust@gmail.com
Yaa devi sarvabhuteshu, maatrirupena sansthita.. Namastasyai namastasyai namastasyai namo namah!
Editor Speak
Business of Denims Gaping gaps road blocks to denim growth
ndia has emerged a fit market for denim, as it has gained acceptance as casual clothing. Indeed, denim has tremendous scope for growth. However, this is not being reflected in industry statistics. Indian denim brands are trying hard to balance between fashion versus commodity, retail expansion versus product innovations and premium versus super-premium. And the market reflects gaping gaps
Are cautious desi denim brands helping global brands growth?
A good number of international brands launched in the mid-nineties were struggling for a foothold in India. However, the advent of organized retail in the new millennium changed the scenario for most of them. While global premium brands had to invest a lot of resources in branding and had to push their boundaries by raising the price bar and innovate and indiganise for India. Desi brands were quick to follow their footsteps in increasing their prices, but kept it a little lower. This helped them improve their margins. Increased margins and comparatively less operation costs, helped domestic player get better bottomlines. This also helped them to sustain their retail stores, increase presence and visibility. This was a fit case of global brands making room for Indian brands. The former offered innovative products, better retail experience but at a much higher price. This helped premium Indian brands to sell more than international brands. Of course, global brands had a few obvious advantages: a better understanding of denim cult; better products know how; technology/washing, better access to innovative fabrics; and strong brand equity. The passage of time established and proved their strengths. The situation has somewhat reversed now. Although international brands still have higher prices but they also have much bigger brand equity and offer better retail experience. Indian brands although priced lower than them, are often failing to appeal to the new generation of globally aware Indian consumer. The New Age consumer finds it easy to justify and get convinced
that this price gap is in favour of international brands and therefore, opt for them. Since Indian brands have not been able to justify or come close to the imagery, brand inspiration and retail experience through their stores, the price gap is not convincing enough. Hence, the situation has reversed. Less aggressive, cautious Indian brands, who are not investing as much are making room for international brands and helping them grow. As per an estimate, out of the total premium jeans (including super-premium jeans) market estimated at Rs 3,500-3,800 crores, the share of Indian brands would not be more than 30 per cent. Unconsciously Indian brands are giving a free run to global brands. They have failed to leverage on ‘local’ advantages. Global brands have taken more than 20 years to make it profitable, giving enough time to Indian brands who could have used the local advantage of knowing the consumer better in terms of region, culture and buying preferences. They could have developed India specific ‘market groups’ based on prices or age et al. They could have penetrated much earlier into smaller cities and towns where international brands obviously won’t find a critical mass to set up shop. Unfortunately, Indian pioneer brands either have been fighting resource crunch or have restricted their market expansion efforts based on pure economics and return on investment model, which international brands can afford to ignore with their deep pockets. They keep investing and expect returns over a longer duration. And with Levi’s turning profitable after 20 years in India, it may enthuse other global brands to increase momentum. Hence, the tilting market share in favour of international brands. However, no denim brand either international or national is really playing big to capture the great potential India offers. Consider an iconic product like jeans, which is still seen more as a fashion statement than commodity among the largely young population, yet the per capita consumption is ridiculously low and not growing as per potential. Ironically, India may be selling more smart phones than premium jeans!
Domestic brands, yet to make a mark in mass market
Earlier attempts to launch mid-priced brands such by big players like Arvind Mills brand ‘Newport, Ruff n Tuff’ and Kg Denim’s brand ‘Trigger’, Raymond’s ‘Parx’ didn’t
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brands have opportunities to promote their denim lines, yet there doesn’t seem to be much effort being taken.
Denim fabric manufacturers fail to act as springboards
India has undisputed strength in denim fabric, being the third largest denim producer in the world. Denim fabric manufacturers, supposed to be a strong support are not concentrating enough on potential growth. They seem to be stuck with their own wrangling issues and not balancing well between export versus domestic, basic versus fashion and commodity versus niche. It’s simply a case of lost opportunity.
Brands fighting multilevel battles
Jeans is credited to be the driver of casual clothing, introducing casual clothing forcefully on Indian market. Now, when India is seeing a major casualisation of fashion, jeans could have been in the best position to leverage on this, maximizing growth. But that doesn’t seem to be happening. Denim brands see more growth in non-denim apparels like shirts, tees and accessories. They seem to be fighting at many levels like retailing, branding, promotions, pricing etc. Innovations have also taken a back seat. Fortunately, India is not facing challenges as seen by the denim industry globally. Internationally denim faced tge challenge of continuance and dominance from ‘Athleisure’ or yoga jeans, however, these issues are not too relevant in India, at least for now. meet much success. And since then there have been no major efforts to capture this space. Zonal brands are marred with resource constrains, trapped in distributiontrade network and, not in position to open their own outlets because of resource constrains. Regional brands mostly being owner driven also find it difficult to concentrate on multiple expansion activities. However, there’s regular growth in smaller/unorganized sector, offering a lot of scope for national brands to capitalize. The big companies who could capture a larger share of mass market, are busy focusing on launching international big brands and capturing premium space.
Women’s & kids’ denims, a potential to be tapped
In women’s segment, except for a few specialized brands, all major denim players are only looking for organic growth, to keep their presence, none is pushing hard enough. Similarly, kids’ denim is an unexplored space for brands. Both these segments are thriving and being catered to by unorganized, small regional players. Even though existing specialized women’s and kids’
Has India failed to build denim as a cult product?
Westerners generally feel, Asia doesn’t understand denim as a cult and iconic product’. Inspite of denim manufacturing shifting to countries like China, India and Bangladesh, the ethos related to denim seems to be missing. Denim has a legendary history, much more than apparel, its rooted deeply in cultural evolution, it attracts strong passion beyond functionality. These values have to be passed on to Indian consumers to experience jeans as a product. However, the kind of information and education seems to be missing to project jeans as what jeans really is. Here is the next issue of Desire Denims & Casuals, Happy Reading!
Sanjay Chawla
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The market for super premium denim is still at a nascent stage. But it’s poised to pick up in the near future. Global brands have sensed this opportunity and are slowly making inroads in this space, finds out Team DFU
• There is growing demand for super-premium brands • Many global labels have either entered or are looking at entry • Consumer preferences differ in India • Brand loyalty is much less among Indian consumers • More weightage to product than brand • Well known brands are adding super/premium range to tap consumers
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Global brands up competition for domestic players
For long, global brands have seen India as a lucrative market. While some brands have already established themselves with a strong presence, many others are eyeing this market to spread out. Domestic brands see it as healthy competition, finds out Team DFU he denim segment in India has undergone major change with the entry of top and well-known global brands. From product quality, styles, trends to pricing, the segment has adapted to the changing taste of today’s brand conscious consumer. And with the Union government’s approval for 100 per cent foreign investment in single brand retail, more international brands are eyeing the opportunity to grab a share of this lucrative market. Rising brand consciousness among Indian consumers propelled by increased exposure to internet, social and other forms of media and a rise in disposable incomes is attracting many global denim brands to the country. Price is no more a criteria when it comes to buying denim. As Narendra Singh, Managing Director, Numero Uno Clothing points out, “The Indian market is amenable towards brands that enjoy either an exotic image or positive notion in the minds of customers in terms of fits and styles. As far as denim brands are concerned, companies are not likely to get into price wars, as competition always existed. Consumers don’t mind paying a little extra if a pair of denim offers a feel good factor.” Currently the domestic market is largely dominated by home grown players primarily catering to mid segment customers. Brands like Flying Machine, Jealous 21, Energy, Moustache, Hoffmen, Camaro have been dominating the mid-price segment. “We have introduced our price range keeping in mind the middle and higher middle class consumers,” claims Aayush Rungta of Hoffmen Fashions. However, the growing propensity of ‘aspirational lifestyle’ and global fashion trend among urban Indians has prompted many global players to venture in the category. While Lee, Spykar, Lee Cooper, United Colors of Benetton, Levi’s, Cherokee, Elle, French Connection, Gas, Tommy Hilfiger, Diesel have already penetrated
• Global brand have pushed up competition • No price wars, since demand exists for all price segments • Tier II towns show demand for global brands • Consumers ready to shell out for quality and style • FDI to bring in more brands, variety • Existing brands to get a boost cities. The latest in the list is Dutch denim brand G Star RAW. The entry of luxury denim label highlights the growth potential of the category in domestic market. Partnering with Genesis luxury, G Straw RAW will bring in its eclectic collection of high fashion denims. Although the growth of Indian market has been slower than expected, in absolute numbers it has expanded at a healthy rate. As foreign denim brands establish their presence this has pushed up competition 30 DFU’s DESIRE DENIMS & CASUALS
with domestic and global players eyeing similar consumers. As Kamal Khushlani, Director, Credo Brands Marketing, manufacturer and retailer of brand Mufti says, “Both foreign and domestic brands will have to do some introspection and focus on their strength to thrive in the Indian market. In the fashion, the tradeoffs between exclusivity, fashion content and price will have to become the underpinning of brand positioning.” However, most well established domestic players don’t see global brands as
Aditya Nadkarni,
Sanjay Vakharia,
Kamal Khushlani,
Retail Administration Brand Manager at Jack & Jones “The Indian consumer is now well travelled, well read and has the money to splurge. Hence, is willing to buy and indulge in premium and super premium brands. However, brand loyalty is practically negligible these days since there are a bevy of brands in the same category and the consumer has a choice.”
Director Marketing, Spykar Lifestyles “Ideally, more players mean expansion of the markets. Hence, we feel good when we see more brands coming in the segment. For any brand this is the desirable scenario, and this in turn helps in expanding the base for brands. And more consumers seeking brands mean more opportunities.”
Director, Credo Brands Marketing (Mufti) “Both foreign and domestic brands will have to do some introspection and focus on their strength to thrive in the Indian market. In the fashion market, the tradeoffs between exclusivity, fashion content and price will have to become the underpinning of brand positioning.”
competition. Rather they feel their advent will increase the demand for quality products and consumers will be more willing to spend. As Sanjay Vakharia, Director Marketing, Spykar Lifestyles says, “Ideally, more players mean expansion of the markets. Hence, we feel good when we see more brands coming in the segment. For any brand this is the desirable scenario. And this, in turn, helps in expanding the base for brands. And more consumers seeking brands mean more opportunities.”
for stake holders to extend their customer base and increase product offerings.
they will continue to consolidate their place in consumer’s mind and achieve loyalty despite competition. As Vakharia explains, “Competition always brings out the best. And the same is true for us. Of course, global brands have bigger brand equity since they have been in the business for a long time and because of operating in demanding markets. Foreign parentage also gives them a distinct advantage versus home grown brands. However, domestic brands have the advantage of being well entrenched in the Indian landscape. As far as price points are concerned, they have gone up with the advent of global brands which has also given Indian brands an opportunity to increase their prices and become better equipped to offer products at par with their global counterparts.”
Reiterating a similar sentiment Pratik Agarwal, Director, Moustache International adds, “The market is good and opportunities are flourishing irrespective of new international brands. These brands make good clientele but cannot overtake the power and pull of a local brand.” Indeed, a rise in brand consciousness among Indian consumers is being seen as a positive sign. As customers become more brand conscious, it translates into more opportunity
Competition propels growth
Has the advent of global brands made it tough for existing Indian brands? No, say experts, in fact, it’s the other way round. “Competition is good for all players as it brings out the best and customers can enjoy more variety. Existing players will have to consolidate their position. Only those players who offer quality products will be able to sustain competition in the long run,” opines Singh. Agrees Khushlani and says, “The denim available in the market is determined by the cost of inputs and rising demand for high-end products. Competition has ensured that super profit cannot be earned by anyone.” The creation of brands is both demand led and supply determined. Brands are catering to an ever expanding market and if they can remain true to their own values,
While the products on offer are different be it premium or super premium, with rising input costs most have tried to absorb it in their pricing. They have not passed it to customers just because everyone wants to be fairly priced. As Agarwal points out, “It is wrong to assume that the scenario is bad for Indian brands. Even today, the masses have more trust on popular national brands compared to international brands. And with so many options available to the customer they are in a better position to choose the right product at the right price.”
Exploring untapped consumer base
Many recent studies have highlighted tremendous opportunities that lie in small towns. With a rise in income and awareness levels people in smaller cities are aware of brands and are willing to shell out extra for a quality product. No wonder, domestic as well as international labels are 31 DFU’s DESIRE DENIMS & CASUALS
Levi Strauss turning India biz, a sign of good times for global players… hile India’s overall consumer market growth dived down to its lowest level over the last decade, leading global fashion brands present in the country like Zara, Marks & Spencer, Benetton, Levi’s and Tommy Hilfiger were able to register about 14 to 42 per cent year-on-year growth in revenues. And interestingly, except for Tommy Hilfiger, all the other names fall under over Rs 500 crores club in India. But what is most heartening is that after
the back of strong focus on its flagship Levi’s brands, R&D in terms of product innovation as well as consolidation of franchisees. Now it expects the brand’s growth to accelerate in the country.
two decades of lull, Levi Strauss & Co has finally managed to turn around its business in India. The American denim company reported a net profit of Rs 49 crores for the fiscal year through March 2014 against Rs 161 crores loss the previous year, as per its latest filings with the Registrar of Companies (RoC). Revenues grew 24 percent over the fiscal year 2012/13.
resulting in higher inventories. Additional costs had to be incurred on discounting during the end-of-season sale and on consumer promotions to stimulate demand, significantly impacting profitability of the company. Similar trends were observed across all key listed apparel brands,” the company had said in a filing with the RoC.
While Levi Strauss took a long time to report its first net profit in the country, some other international labels turned profitable quite quickly. For instance, it took just two years for Spanish clothing and accessories retailer Zara. However, experts point out that the market that Zara launched into four years ago was different from what Levi Strauss encountered when it first set up shop here. The company was able to book profits on
Last year, Levi Strauss witnessed a sharp downfall in India will revenues declining 35 per cent at Rs 484 crores after pulling off of its mass brand Denizen from the market. “Price rises coupled with low consumer sentiment thus impacted demand in the marketplace
Levi’s enjoyed leadership status with almost double the size of its nearest rival until a year before FY13. In FY12, it had reported sales worth Rs 741 crores against Benetton’s Rs 430 crores. However, when other leading global brands are lining up to enter the lucrative Indian market, Levi’s downed shutters on many of its stores while also phasing out a few brands like Dockers, Sykes, Signature and Denizen in the country The US-based brand had accepted the slow 32 DFU’s DESIRE DENIMS & CASUALS
business in the Indian market in its annual report last year. “In Asia, revenues declined due to stiff economic headwinds in the key markets of China and India, and the exit of the Denizen brand. We’ll continue to focus on key emerging markets, focusing on getting our business back on track in China and India,” the company had said. However, the foreign brands have now realized that doing business in a diverse and developing economy like India is not a cakewalk. With ecommerce booming and reaching smaller
towns, some brands failed to control their losses because of the heavy discounts on merchandise while suffering due to the falling rupee and rising input costs. Marks & Spencer Reliance India, for instance, which operates M&S stores in India, saw its losses increase 400 per cent to Rs 87 crores last fiscal, while Inditex Trent Retail India, which runs Zara brand in the country, reported a one-third fall in its profits. With international labels posting robust growth; brands like H&M and Massimo Dutti getting approval to open stores; Gap, The Children’s Place lining up to storm the market next year; and existing ones like Benetton, Marks & Spencer and Forever 21 announcing aggressive expansion strategy, competition seems to be toughening in the oragnised Indian retail market.
Narendra Singh,
Pratik Agarwal,
Managing Director, Numero Uno Clothing “The global communication revolution has reduced boundaries drastically. Small towns have welcomed both Indian and international brands. People in smaller cities are brand conscious and have the buying power as well. Customers from smaller cities are buying their favorite brands not just from the stores but also from the ecommerce websites.”
Director, Moustache International (Moustache and M Brand) “It is wrong to assume that the scenario is bad for Indian brands, even today, the masses have more trust on popular national brands compared to international brands. And with so many options available to the customer they are in a better position to choose the right product at the right price.”
scouting for suitable retail locations in Tier II, III towns to spread their presence. “The Indian consumer is now well travelled, well read and has the money to splurge. Hence, is willing to buy and indulge in premium and super premium brands. However, brand loyalty is practically negligible these days since there are a bevy of brands in the same category and the consumer has a choice,” opines Aditya Nadkarni, Retail Administration Brand Manager at Jack & Jones.
Punjab, Haryana, Rajasthan, Himachal, Bihar and Jharkhand,” avers Singh. And as Khushlani points out, the so called Tier I, II towns are not small. “Lucknow and Surat’s population can be compared to that of New Zealand. It is not a question of ‘small towns’ but of ‘small incomes’. Thus, even relatively smaller cities with a high income population component are large enough demand centers for expensive brands,” he explains.
“The global communication revolution has reduced boundaries drastically. Small towns have welcomed both Indian and international brands. Customers from smaller cities are buying their favorite brands not just from the stores but also from the ecommerce websites. Numero Uno has been steadily growing its presence in smaller cities of
The bottomline is that small towns are ready to pay and experiment. As of now, local brands have begun expanding their footprint there and international brands are following suit. However, Rungta believes although major global brands have set foot in Indian soil but they are primarily present in major Indian cities. They are yet to set foot in Tier II, III cities leave aside rural market. “The vastness of Indian market and different hues
Aayush Rungta,
Director, Hoffmen Fashions “Although major global brands have set foot in India but they are primarily present in major cities. They are yet to enter Tier II, III cities leave aside rural market. The vastness of Indian market and different hues of regional culture are yet to be understood by global players. This in turn has affected their expansion plans. We foresee the market will be competitive and companies have to continuously innovate to meet customer expectations while keeping costs within reach.” of regional culture are yet to be understood by global players which has affected their expansion plans. We foresee the market will be hugely competitive and companies have to continuously innovate to meet customer expectations while keeping costs within the reach of their focused clientele,” he adds.
FDI and future business
Last year, India allowed 100 per cent foreign direct investment in single brand retail. The move has perked up plans of many global apparel brands eyeing entry. The industry is also viewing it as an option for Indian brands to receive investments that can help grow their business. “As competition heats up in India with the growth of Indian brands as well as the advent of foreign brands, the fittest will thrive and the inefficient will get marginalized. The playing field in India is level with no advantage for foreign players and ready or not Indian brands will have to learn to survive and grow,” opines Khushlani. With several international brands posting robust growth, it’s attracting many newer ones to this market. Sweden’s Hennes & Mauritz and Massimo Dutti have already got FIPB clearance to open stores in India. Popular denim brands like Levi’s Wrangler, Lee are already well entrenched in the country and most are expanding their retail reach. Indeed competition seems to be toughening in the oragnised Indian denim market. It would be interesting to note the turn of events amid slow economy and low consumer sentiment.
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Fashion savvy young India push up brand play
The vast base of young population, aspiring for fashionable clothes with high disposable incomes, has lured some of the biggest global fashion brands and retailers into Indian market, finds out Team DFU enim, the Italian sailor’s fabric, has invaded the entire world and India is no exception. Denim, as it was renamed by the French, has a long history in India. As the market for the evergreen fabric is still growing, the dynamics has undergone a change over the years. The growth potential is emphasized by the fact that more brands are venturing into the segment made lucrative by the fashion loving young population. Right from the Dutch Super premium brands, G star RAW to the home grown casual wear leader, Indian Terrain, denim wear continues to be a prosperous category.
Reaping the demographic dividend
According to a Technopak study, the denim market in India was pegged at 1.2 billion dollars in 2011. This is projected to grow at the CAGR of 15-18 per cent and has the potential of almost doubling in size by 2015. In terms of volumes the denim market is estimated at 300 million pairs of jeans which is projected to grow to 550600 million pairs by 2015. While in the rest of the world, denim was largely considered primarily as work wear, in India the denim has always been associated with youth fashion. The Technopak study further shows a stronger market base for denim in India as 73 per cent of India’s population is young with a median age of 26. Even after 10 years, the median age will only get to 29 years. “We do not find too many differences in the tastes and buying behavior within the Indian geographies cause as said earlier now people have the money to buy good clothes. But denim in India has a long way to go. There are numerous innovations which can be used and explored by the manufacturers. There is a lot we can still do,” says Aditya Nadkarni, Retail Administration Brand Manager at Jack & Jones.
• Young India lures western denim brands • Rise in disposable incomes attract more brands • Increasing fashion and brand awareness leads to growth of organized market
• Men’s denim still occupies the larger share of the segment • Women’s denim continues to grow • Smaller towns push the segment’s growth • Clear shift seen in corporate world from formals to casual/denim wear
Major drivers to growth
One of the major drivers for growth of denim wear is the acceptance by the youth and the aspiration to look trendy. Today, factors like movies, television and internet penetration has made the youngsters much aware about the global fashion trends. This has become key factors in the increasing aspirations of youth towards denim wear. Moreover, the growth 34 DFU’s DESIRE DENIMS & CASUALS
of organised retail has also contributed significantly to create a conducive market for international brands. Over the last two decades, the retail industry in India has been witnessing healthy positive growth. In the city wise mix, currently larger cities and metros together contribute nearly 57 per cent of the total market share. Denim has seen growing popularity as casual/ leisure wear in almost all large cities of India. The primary reason for the initial
Manish Mandhana,
Managing Director, Mandhana Industries “Smaller cities are fast becoming viable options for brands and retailers to open stores and expand their market. With better infrastructure connectivity and increased awareness of consumers in this information age and aspiration need in these cities especially Tier II and III cities, our experience with stores located in smaller cities has been good so far and we will continue to expand in more cities.” growth in metros and large cities was easy availability. Most brands started retailing from large cities and metros. The earlier phase of scalability also happened in the same cities making it easily available to consumers. Now with
Kavindra Mishra,
CEO, Pepe Jeans “If a brand like ours can seize the moment, we will have better growth. Even formal brands are getting into sports which is doing very well for them. That shift is happening because India is getting younger and younger. When demographics change, psychographics change. When psychographics change, the way people look at themselves change. That leads to fashion and lifestyle change. And we as a casual brand have done fantastically well last year. We will do fantastic numbers this year too.” increased urbanization it is spreading its wings in the rural and emerging markets. “We see a positive performance in smaller cities (as they get segregated on the basis
Amitabh Suri,
Chief Operating Officer, Indian Terrain “There is a deep penetration of all retail channels in metros, so business is driven by metros and Tier I cities. In Tiers II, III, we are adding to the width of the brand offering. The brand is planning to focus on expansion in Tier II, III, as they are big growth markets. We plan to expand to 120 stores by the end of the year, along with expanding with the large formats at their speed.” of the centre or region). For example, two cities can be classified as smaller cities, but both generate retail tractions at different levels owing to the geographical locations.” adds Rungta. While the metro and urban markets have high penetration of denim players across price categories, the Tier II and III markets are yet to show their full potential. As denim category in India has now matured to enter its second phase of growth, the share of business from emerging cities is expected to increase in the long term. The Technopak study reveals on comparing the current population spread, with the contribution of the denim wear market, it becomes evident that the largest market size lies between metros and mini metros. The current market size of denim wear in India is largely skewed towards the metros and mini metros. Metros and mini metros, with about seven per cent of population, contribute to about 50 per cent of the market share in denim wear. The Tier II and Tier III cities - which again constitute about 8 per cent of the population, contribute only a 16 per cent of the market share in denim wear.
Promising growth in smaller towns
According to Technopak, the unbranded denim market in the overall denim business of 1,290 million dollars in 2012 is likely to fall by a tenth to 48 per cent by 2017, while the mass market and mid-premium brands will together be about 31 per cent of the 35 DFU’s DESIRE DENIMS & CASUALS
we will continue to expand in more cities,” opined Manish Mandhana, Managing Director of Mandhana Industries that manufacturers and retails ‘Being Human’ brand of clothing.
Aditya Nadkarni,
Retail Administration Brand Manager at Jack & Jones “We do not find too many differences in the tastes and buying behavior within the Indian geographies. Now people have the money to buy good clothes. But denim in India has a long way to go. There are numerous innovations which can be used and explored by the manufacturers. There is a lot we can still do.” market, up from 26 per cent in 2012. The report says the denim category is expected to witness volume growth due to increased penetration in the rural geographies and smaller Indian cities and its association with ‘casualisation’ and fashion. “Smaller cities are fast becoming viable options for brands and retailers to open stores and expand their market. With better infrastructure connectivity and increased awareness of consumers in this information age and aspiration need in these cities especially Tier II and III cities, our experience with stores located in smaller cities has been good so far and
As experts believe, one of the major reasons for the lower growth percentage in smaller cities can be attributed to the lack of availability of brands in Tier II and Tier III cities. In the last few years, the emerging cities have been on the radar of some of the biggest brands. Today most of the brands have recognized the fact that the Tier II and the Tier III cities present a large opportunity. Also the skyrocketing rentals in urban metros have prompted brands to look at Tier II & III for more profitability and scale. The smaller cities offer a low cost rental space to the brands and they have used these synergies to their advantage to scale up business. Says Nadkarni, “Business is happening very much in the Tier II and III cities. In our case what you will see in Denmark as a new collection you will see the same in Raipur per say. Hence, consumers are becoming more aware & have the money wherein exposure being added. So, tier II & III cities are absolutely in sync and we are doing a fairly good business within this frame.” Brand like Indian Terrain is gearing up to tap the potential in Tier II and III markets. “There is a deep penetration of all retail channels in metros. So business is driven by metros and Tier I cities. In Tiers II, III, we are adding to the width of the brand offering. The brand is planning to focus on expansion in Tier II, III, as they are big growth markets. We plan to expand to 120 stores by the end of the year, along with the large formats at their speed,” informs Amitabh Suri, Chief Operating Officer of Indian Terrain. Indian Terrain has a national presence and it is available in all leading markets in the country. “For the
year ahead we are looking at expanding our presence in the East market, in cities such as Patna, Ranchi, Kolkata, Asansol, Guwahati and Bhubaneshwar. We are also looking to consolidate our south presence in the Seemandhara market in cities such as Vijaywada, Guntur and Rajamundry,” he adds.
Denim for men rules the segment
In India the significant share of the denim is still dominated by men’s segment. In terms of style and trends also men’s segment has revolutionized itself. While men’s share in denim wear has been significant, the denim wear market for women is yet to unfold its true potential. Although in women’s category denim wear faces a stiff competition from ethnic wear like salwar and kurtas which are still largely preferred as work and leisure wear by women. Despite of the above limitations, fashion denim category for women has high potential. Even with above constraints, women’s jeans market has been growing rapidly. As per Technopak study, women’s wear market is projected to grow faster here onwards and will potentially account for about more than 25 per cent of the total market by 2015. The denim market in India is growing. I don’t think a consumer will think twice before opting for a casual or denim today. From more structured formal wear people are getting into casuals. Once you come into casuals, the definition depends on which industry you are in. Norms will always be there. “Casuals can be chinos with polo. It can be a round neck with denim. We should look at the mindset of the consumer as being more casual. If a brand like ours can seize the moment, we will have better growth. Even formal brands are getting into sports, which is doing very well for them. That shift is happening because India is getting younger and younger. When demographics change, psychographics change. When psychographics change, the way people look at themselves change. That leads to fashion and lifestyle change. And we as a casual brand have done fantastically well last year. We will do fantastic numbers this year too,” exclaims Kavindra Mishra, CEO, Pepe Jeans.
Youngsters become the torchbearers
With brands like Pepe, Levi’s bracing up to acquire a larger pie of the organised denim market. The market dynamics have undergone sea changes to become more competitive. The inflow of all the international brands and retailers has heated up competition in this category especially in premium and mid premium price segment. The customer is the king and it is more than evident with influx of denim brands in Indian domestic market. 36 DFU’s DESIRE DENIMS & CASUALS
Smart Casuals Emerges as the new dress code of India
Formals are a passé in corporate offices while casuals have made inroads. Backed by a young population that is willing to experiment, the casual wear segment in India has got a major boost. Fast forward growth is leading to newer innovations, writes Piasi Sinha hile last decade belonged to the formal dressing for India Inc’s head honchos, the trend surely has been changing as the formal trouser and shirt is fast being replaced by the casual clad, sharp minded, new generation leaders. Increasingly, young Indians are coming out of their monotonous wardrobe and experimenting with comfortable and smart casuals. In the last five years, India’s fashion scene has undergone sea change as smart casuals have become the new dress code of the day.
Brands lured by fast forward growth
“Fashion combined with comfort is what matters to the consumers today. People are working long hours. Therefore, they want to break away from the monotony and rigidity of formal wear. Comfortable, smart and fashionable casual wear is finding its way,” says Aayush Rungta of Hoffmen Fashions. Research suggests the estimated market for casual trousers in India is Rs 7,000 crores and it is growing at compound annual growth rate (CAGR) of 8 to 10 per cent. Experts expect a positive growth curve for India’s casual wear market in the coming years. As per a recent Technopak report, Indian apparel market is growing at 9 per cent (CAGR) and the rate is expected to be higher in casual wear segment compared to other segments. Apart from the home grown brands, major international players have forayed into the market to tap the enormous potential. From international brands like Pepe, Celio, Puma to domestic brands like Killer, Hoffmen, Being Human everyone is vying with each other to attract customers. “The inflow of all international brands and retailers has heated up competition in this category especially in the premium and mid premium segment. With growing exposure to global brands, consumer awareness about latest trends and fits has also increased many
• Casual segment gets a boost, fashion combined with comfort is what matters • The market for casual trousers in India is Rs 7,000 cr • It is growing at CAGR of 8 to 10 per cent • Along with home grown brands, top global players have forayed into the market • The potential is immense, innovations gives a boost to brands folds. The growth in this category for us shows, we have been able to meet the expectations of new consumers giving us the confidence to widen the product offering in this category,” says Manish Mandhana of Mandhana Industries, the force behind brand Being Human. The growth of casual wear market is primarily driven by India’s growing young 38 DFU’s DESIRE DENIMS & CASUALS
population with high literacy rate and increased exposure of global fashion trends. At present, the median age among Indian men is 25.9 years while among women it is 27.2 years. The lower median age reflects a youthful population that has a higher propensity for buying casual wear. “India is a young country. When demographics change, psychographics change. When psychographics change,
Manish Mandhana,
Mandhana Industries (Being Human) “The inflow of all international brands and retailers has heated up competition in this category especially in the premium and mid premium segment. With growing exposure to global brands, consumer awareness about latest trends and fits has also increased many folds. The growth in this category for us shows, we have been able to meet the expectations of new consumers giving us the confidence to widen the product offering in this category.” the way people look at themselves change. That leads to fashion and lifestyle change. And garments need to reflect that trend. If you look at the current growth rate of most brands, you will find their casual segment has done well. And we as a casual wear brand have done very well last year. We
Kamal Khushlani,
Managing Director, Mufti “Casual trousers are moving towards a more evolved fashion statement from the hitherto dominant smart chinos. This line has become the most happening style statement with tight fits, innovative finishes and colours adding pizzaz to the metrosexual wardrobe. This segment compliments the wardrobe of the denim wearer and is not in any sense competing with denim. We believe that in fashion, casuals, stretch fabrics are the most important performance feature as opposed to the wrinkle free, stain resistant features of yesteryear.” will do good numbers this year too” says Kavindra Mishra, CEO, PJL Clothing India. Brands like Pepe are buoyant about the domestic market for casual wear.
Kavindra Mishra,
CEO, PJL Clothing India “India is a young country. When demographics change, psychographics change. When psychographics change, the way people look at themselves change. That leads to fashion and lifestyle change. And garments need to reflect that trend. If you look at the current growth rate of most brands, you will find their casual segment has done well. And we as a casual wear brand have done very well last year. We will do good numbers this year too.” The Technopak study also reveals that by 2020, almost 35 per cent of Indian population will be living in urban centres resulting in increased demand for fashionable casual clothes. Due to the high internet penetration, lifestyle TV channels, social media, the customers are now well aware of global trends. The concept of comfort with style seems to be lucrative to youngsters. Hence, the demand for comfortable and stylish clothing has gone up phenomenally. Today, lifestyle categories like fashion and apparel, footwear and fashion accessories 32 per cent dominate wallet share. A significant percentage of it comes from casual wear categories which include: T-shirts, casual bottom wear and denim. “The line between formals and casuals is blurring. Desirability of comfort clothing for work-wear and casualwear occasions is growing, causing an upward swing in demand. Pricing has always been dynamic in the country on account of inflation and has little to do with the product category in this case,” says Amitabh Suri, CEO, Indian Terrain, a leading casual wear brands in India. He is seconded by Sujatha R Nandan, Chief Brand Manager, Scullers as she explains “As people are becoming more fashion conscious, they don’t want to get restricted in plain, formals. They are willing to break away from the monotony and smart casuals are coming in to cater to this need. In fact, with more corporates introducing Friday Dressing, the new trends of smart casuals and semi formals has come up fast”.
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wear range include a wide variety of tops, T-shirts, skirts, dresses, pajamas, palazzos, chinos, Jeggings and so on. From fabrics to cuts, monotones to prints, casual wear have added numerous varieties to complete urban wardrobe. Moreover, as per occasion, sub categories of casual wear have emerged. Concepts like smart casuals, club casuals, resort casuals are also witnessing a growing market.
Apart from metros, the acceptance of casual wear has also increased in Tier II and III towns. Brands have witnessed stupendous growth in smaller cities. “So far the prime focus was Tier I cities and as we move towards market consolidation in Tier I cities we have started market coverage of Tier II, III cities and major rural towns,” explains Rungta. Emergence of e-commerce based online market places has also given a boost to the growing casual wear market. Today’s smart, literate, tech savvy young consumers have been preferring online market places like Flipkart, Jabong, Myntra, Amazon, Alibaba. The phenomenal growth of ecommerce portals along with MBOs, EBOs and LFs, have changed the market dynamics forever.
In fact experts believe, within the casual wear segment, the sub category which is currently witnessing maximum growth opportunity is bottom wear for men and women. According to Technopak’s study men’s casual trouser market is estimated to be worth Rs 6,720 crores, while the women’s casual trouser/skirts market is estimated at Rs 470 crores. Even a few years back, denim was the most preferred casual wear however it is now facing strong competition from chinos, jeggings and casual trousers. Hence, casual wear brands are incorporating chinos and cotton trousers to their collection.
Trendy designs lure customers
Keeping up with growing demand and changing customer mindset, the casual wear segment has become more competitive compared to other apparel categories. It is marked by innovation and variety in terms of design, variety and silhouettes. The contemporary casual
In India, the casual wear market is primarily characterized by innovation and variety. “Casual trousers are moving towards a more evolved fashion statement from the hitherto dominant smart chinos. This line has become the most happening style statement with tight fits, innovative finishes and colours adding pizzaz to the metrosexual wardrobe. This segment compliments the wardrobe of the denim wearer and is not in any sense competing with denim. We believe that in fashion, casuals, stretch fabrics are the most important performance feature as opposed to the wrinkle free, stain resistant features of yesteryear,” says Kamal Khushlani, Managing Director, Mufti. Product innovation has been a key factor in fuelling growth of casual wear segment. Brands are vying with each other by introducing new techniques and styles. Following global trends, eco-friendly fashion products have been introduced in the domestic markets. “We have a marketing innovation and tied up with a company in the UK called Avcom. This is into hologram screens. They are installing screens in Inorbit Mumbai and Hyderabad. We were among the few UK brands they wanted on board. We will have holographic images of the campaign displayed on these screens. These are marketing initiatives we are taking to highlight the brand to consumers,” says Mishra. Overall, the casual wear market promises growth opportunity for Indian as well as international players. However, it is critical to have an in depth understanding of the heterogeneous set of people and their preferences vary depending on their age, income level and cultural influences. Moreover, the casual wear market is dominated by young consumers. Therefore, it is essential for the brand to engage their attention through products and communication. 40 DFU’s DESIRE DENIMS & CASUALS
Cover Feature
'We are a leading international denimwear brand in India'
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With a long successful history behind it, Pepe Jeans is positioned as a brand both for the youth and everyone else who is young at heart. The brand is very international, fashionable, premium and casual. Launched in India in 1989 by PJL Clothing India, it has seen a glorious period in the country from 2004 to 2007. The brand has firm plans of expanding its presence in metros and Tier II and III cities, along with boosting its growth. Kavindra Mishra, Chief Executive Officer at Pepe is looking to growing at 30 to 35 per cent this year, while maintaining a CAGR of 25 per cent, over next four to five years. He shares the company’s India plans with Shraboni Mukherjee. Excerpts…
“We are evolving along with the consumer. As the brand keeps evolving, we are trying to devise a new identity. We are renovating our stores following international themes. We have been investing in training the team and bringing it to the level of what it should be for a brand like Pepe. Our like to like growth has gone up substantially. They reflect a new energy.” -Kavindra Mishra, Chief Executive Officer, Pepe Launched in India in 1989 Popular among young audience Known for casual and denim wear Renovating stores to increase footfall Will unveil Premium Heritage brand this festive season To open 20 stores coming season Will launch kids’ collection next Autumn/Winter Has seen very good Autumn/Winter bookings
Tell us about Pepe in India…
What are the current style trends?
We are evolving along with the consumer. As the brand keeps evolving, we are trying to devise a new identity. We are renovating our stores following international themes. We have been investing in training the team and bringing it to the level of what it should be for a brand like Pepe. Our like to like growth has gone up substantially, it reflects a new energy. This is not only in EBOs but also at department stores. When we renovate a store the premise is that it should grow by 40 per cent. And that does happen. And I am referring to full price sales.
Use of tears is strong. Washes are becoming important and because people in India are wearing denims to offices, there is a demand for premium clean denim. The fabrics are premium but the wash is clean. A 35- to 38 year-old-man can wear this to office with a jacket over it. These are two strong trends. Brands that can capture this will get new markets.
What are your immediate plans for brand’s further growth? Next year Autumn/Winter we will add children’s range for the 4 to 12 age-group. This is a strong line for us internationally. It does well in standalone formats and in department store formats. We will bring this line to India and may be add one or two colours for the Indian market. Since it’s primarily a line that’s imported, it will give an international feel to the brand. The talent for designing kid’s wear is a bit limited here. So we will carry out a bit of merchandising here. We are doing well on e-commerce. Typically, Pepe does well on e-commerce sites. We are a preferred choice for the young consumer there too. We have a strong connect with the consumer.
What’s Pepe’s product range? We are a complete fashion and lifestyle brand for men. We have denims, nondenims, shorts, casual shirts, polos and tees. We also have backpacks, wallets, socks and belts. For women, we will have the entire line like woven tops or knit tops. All our products have the denim influence. Even casual fashion is influenced by denim. Like our tees have washes. That’s a denim influence. We are very strong in core denims. Next in line are knits. 43 DFU’s DESIRE DENIMS & CASUALS
How do you foresee the forthcoming season? For Autumn/Winter bookings, we have doubled our volumes. For winter, we have had a 125 per cent growth in orders. There is a lot of merchandise that has gone into the market. The pick-up has been very strong. Now, I expect a good sell-out. We are supporting our retailers. We should grow 20 per cent like to like in our stores. That was what we did in summer and we want to do it now. We have worked hard on our winter line. We count 30 days before Diwali and 45 days before Navratri. Now before Navratri, we are witnessing 32 per cent growth. That’s a good sign. So we are looking forward to a strong season.
What are your offerings for winter? For winter, we have sweatshirts, pullovers, jackets. We have denim jackets with washes. We are launching ‘Heritage’, a premium line. This is exclusively for our stores since we have revamped our stores. We are bringing this to India for the first time. It has been a successful line for our parent company. It’s inspired by the heritage of the brand and the jeans heritage. It is primarily a jeans collection with a lot of good washes and tears. The other line which is strong for us is the fashion denim line called ‘73’. The brand was incepted in 1973. This has fashion tops and denims. A lot of innovations are happening there. Heritage denim is
Cover Feature
“We are among the top ten brands across all apparel segments. There is a strong goodwill. If there is a strong goodwill in India, and strong brand awareness, 90 per cent of my job is done. All that remains is to invest in the market. Right now the company is on an upgrade mode.” marketing initiatives we are taking to priced from Rs 4,299 to Rs 5,500. Fashion denim is Rs 2,999 and the sweet spot is Rs 3,599.
What innovations have you made? We have a marketing innovation. We have tied up with a company in the UK called Avcom. This is into hologram screens. They are installing screens in Inorbit Mall, Mumbai and Hyderabad. We were among the few UK brands, they wanted on board. We will have holographic images of the campaign displayed on these screens. These are
highlight the brand to consumers.
What’s your retail network? We have around 200 EBOs in India. We don’t have company-owned stores. All these are partner EBOs. Our EBOs are 800 to 1,000 sq. ft. in size but since we are launching children’s wear, the new stores will be bigger. We may also have exclusive children’s wear stores with key partner malls. We have 700 shop-in-shops in MBOs. We are also with 150 large formats. We will open 20 stores this Autumn/Winter. We have just opened a 2,700 sq.ft. store in Goa. Flagship stores are 1,200 sq.
ft., so they are not much bigger than our EBOs. In each key city, typically two of our stores are flagships. Out of our 200 EBOs, 20 are flagship stores. This year alone we have opened close to 100 shop-in-shops. So even in an MBO, we want to improve the visibility of the brand. In e-commerce private labels are becoming strong and they are working in a similar price zone.
What’s your share of retail business? EBOs give us 25 per cent of our business; large formats 25 per cent and distribution gives 50 per cent. Business from the same store is going up by 40 per cent. That means our stores are becoming more profitable. When the stores are becoming profitable you can speak to your partner and get more number of stores. Within the distribution channel too, the contribution from EBOs will increase because distribution partners may also have stores. So within this 50 per cent, the contribution of stores will be higher. The stores will become more profitable.
“For Autumn/Winter bookings, we have doubled our volumes in the market. For winter, we have had a 125 per cent growth in orders. There is a lot of merchandise that has gone into the market. The pick-up has been very strong. Now I expect a good sell-out. We are supporting our retailers. We should grow 20 per cent like to like in our stores.” 44 DFU’s DESIRE DENIMS & CASUALS
“Next year Autumn/Winter we will add children’s range for the 4 to 12 agegroup. This is a strong line for us internationally. It does well in standalone formats and in department store formats. We will bring this line to India and maybe add one or two colours for the Indian market. Since it’s primarily a line that’s imported, it will give an international feel to the brand.” “Use of tears is strong. Washes are becoming important and because people in India are wearing denims to offices, there is a demand for premium clean denim. The fabrics are premium but the wash is clean. A 35 to 38 year-old-man can wear this to office with a jacket over it. These are two strong trends. Brands that can capture this will get new markets.” How do you see the denim market in India? What’s your next brand strategy? The mantra for last year, this year and next year is to improve the look and feel of the brand. There is a tremendous sense of affinity for the brand. We are among the top 10 brands across all apparel segments. There is a strong goodwill. If there is a strong goodwill in India, and strong brand awareness, 90 per cent of my job is done. All that remains is to invest in the market. Right now the company is on an upgrade mode. If you invest you will see the returns. If a store with the same product is doing 40 per cent more business only because of the change of fixture, only because of a new look and feel, it’s a clear sign of consumer preference. While a mall will always have a higher walk-in, a good high street store will always have a higher conversion.
The denim market is growing. I don’t think a consumer will think before picking up a pair of casual or denim pant today. From more structured formal wear people are getting into casuals. Once you come into casuals, the definition depends on which industry you are in. Norms will always be there. Casuals can be chinos with a polo. It can be a round neck with denim. We should look at the mindset of the consumer. If a brand like ours can seize the moment, we will have better growth. Even formal brands are getting into sports, which is doing well for them. That shift is happening because India is getting younger. India is a young country. When demographics change, psychographics change. When psychographics change, the way people look at themselves changes. That leads to fashion and lifestyle change. And garments need to reflect that trend. If you look at the current growth rate of most brands, you will find the casual segment of theirs has done well. And we as a casual brand have done fantastically well last year and we will do fantastic numbers this year too.
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BRAND LEADER
Jack & Jones ‘We are having double-digit growth in India’ Please introduce the brand.
Jack & Jones was founded in 1989 and is one of Europe’s leading men’s wear brands. A part of the Bestseller group, it’s a family-owned clothing company founded in Denmark in 1975. The brand caters to men. We are a premium brand, and the collection is meant for youngsters in their 20s and 30s. We also have accessories under Jack & Jones like belts, wallets, shoes and socks. We are having exponential double-digit growth in India.
What are your new styles?
As far as color palettes are concerned, Indian men prefer muted colors. Torn jeans or 3D effect jeans, which are priced Rs 15,000, are selling like hot cakes. Formal shirts, which are our new additions, are doing phenomenal business. Certain styles which are shown in the range are not doing well overseas but are a hit in India. We believe that the fashion quotient in our country is very high.
Aditya Nadkarni Brand Manager Retail Administration
What’s your retail network?
Jack & Jones enjoys a presence through 59 EBOs and 116 plus 124 shop-in-shops. All our EBOs are company owned. However, the biggest challenge is the growing realty rates and getting the right space on high streets. We need on an average 2,000 to 2,500 sq. ft. to open our stores.
Are you online?
The brand is available on nine e-commerce platforms. Our pricing remains the same as does the collection. We do not manufacture anything separately for online retail.
How do you see the growth of small towns?
We do not find too many differences in tastes and buying behavior within India because now people have money to buy good clothes. And they are gradually turning to western wear. Jack & Jones is getting a good response in small towns. Business is happening in Tier II and III cities. In our case what you will see in Denmark as a new collection will be available at the same time in Raipur or any other small town. Hence, Tier II, III cities are absolutely in sync.
Is India ready for premium and super premium brands?
The Indian consumer is well travelled, well read and has the money to splurge, hence is willing to buy and indulge in premium and super premium brands.
Does brand loyalty exist?
Brand loyalty is practically negligible these days since there are numerous brands in the same category and consumers can choose what they wish to buy.
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BRAND LEADER
Killer ‘Killer has already distinguished itself as a frontrunner of fashion’ Please introduce us to the brand.
Killer is a leading denim and casual wear brand from Kewal Kiran Clothing. It has almost 20 per cent share of the mass premium segment of denim market in India. Founded in 1989, Killer is one of the pioneers in denim category. It has developed an internationally enviable archive of products and added contemporary twists to an authentic collection for men, which combines classics with quality. Killer markets the entire range of lifestyle products in the fashion category for young men and women under the Killer brand. The casual wear range includes: jeans, shirts, T-shirts, shorts, non-denim trousers, sweaters, sweatshirts, capris etc. The company also markets Killer sunglasses, eyewear, innerwear, personal care, socks and accessories.
Hemant Jain Director
What’s the USP of the brand?
The USP of the brand is observation and interest in the ever-changing world of fashion, along with the ability to adapt fast to changing scenario. We are committed to global standards in quality, technology, marketing and branding, and provide our customers with best-in-class offerings at an affordable cost. Killer has already distinguished itself as a frontrunner of fashion, leading trends, developing innovations and driving youth culture.
Where are your production facilities?
The company boasts of a state of the art production infrastructure to back up its retail sales. It has designing and manufacturing facilities located in Dadar (Mumbai), Goregaon (Mumbai), Daman and Vapi. Killer boasts of having core competence in the manufacturing process, driven by innovation.
How do you build the brand?
The brand also has an aggressive marketing and branding plan commanding high visibility in the market. Killer continued with its sponsorship for the Pune Warriors team IPL. The association with high profile IPL cricket series has enhanced brand visibility and reach. The denim brand’s green advertisement made a dominating sweep at the Olive Crown Awards held in April 2013,organised by the International Advertising Association.
How has the brand evolved?
From work wear to must wear, the brand has developed following, continually innovating fashion product designs and pioneering in music, sport or entertainment sponsorships from its headquarters. Killer has an irreverent tone of communication. The brand is all about attitude and it is this attitude which differentiates it. Killer has evolved from practical work gear into an expression of underground lifestyle from rockers to punks. Denim has always been a signature for the rebel, the tough guy, the pioneer and the independent thinker. Killer has embraced the above as an integral part of its positioning, communication and identity globally.
What’s the retail network?
At present, the brand is retailed through more than 2,000 MBOs across India. It has a presence in 70 plus EBOs. The brand is available at Killer Exclusives, K-Lounge, large format stores such as Shoppers Stop, Reliance Trends, Central, Globus, and Lifestyle and all leading retail outlets. Killer is present in 200 plus shops-in-shops in UAE, Africa and European countries. It also has a presence in online marketplaces. 47 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Spykar ‘We were the first to create fashion denim category in India’ How is the denim market in India responding to global and domestic players?
More players ideally mean expansion of the market, which is always welcome. We also believe in the same and hence, feel good when we see more brands coming in the segment.
Has the scenario become tough for Indian brands?
Competition always brings out the best. And the same is true for us and other players as well. The new entrants have larger brand equity due to them being in the business for long and operating in a demanding market. Foreign parentage also gives them a distinct advantage versus Indian homegrown brands. Whereas Indian brands have the advantage of being well entrenched in the domestic landscape and can only improve from here.
Sanjay Vakharia Director Marketing
What has been the effect on pricing of denim?
Price points have gone up since the advent of these brands. This has also given Indian brands the opportunity to increase prices and become better equipped to offer at par brand experience.
How has brand consciousness brought about a change in the market?
For any brand, this is the desirable scenario and helps in expanding base for the brand. More consumers seeking brands mean more opportunities to grab them and eventually retain them.
Are small towns ready for big global brands? Not yet, but eventually they will.
What do you think of FDI?
The option does not exist. One has to be ready and prepared for whatever the competition throws at you.
Tell us about your company.
The brand was established in 1992. We have denims, casual shirts, T-shirts, innerwear, accessories like eyewear, belts and wallets. Spykar aims to sustain itself as a premium fashion wear brand, providing total casual dressing for the individual’s complete fashion needs. The single line to sum it up is: ‘Spykar Jeans: 18 till I die’. We were the first to create the category of fashion denims in India. And we were also the first to launch cargo pants way back in 2002.
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BRAND LEADER
Mufti ‘Aimed at the self-assured customer who desires to make a fashion statement.’ The Brand
Mufti incepted in 1998 is a leading casual wear brand for men. The name Mufti has its origins in colonial India’s armed forces and is meant as casual dressing. The brand best known for its denim is aimed at the self-assured customer who desires to make a fashion statement, reflecting his distinct persona. It’s a mid to upper end brand. Mufti has redefined fashion and established itself as a top name in alternative clothing. Its USP lies in innovation and originality. Everything, beginning from the name to its business values to image and advertising, reflects this belief.
Kamal Khushlani Director
The target is the mid-income metro male in the age group of 21 to 25 years seeking fashion as an expression of his individuality. The brand manufactures shirts, jeans, tees, sweat shirts, sweaters, jackets, trousers, deodorants, and flip-flops within a range of Rs 1,099 to Rs 5,199. It is growing at a steady pace of 15 per cent annually. The brand has recorded a turnover of Rs 300 crores in the current fiscal. Mufti looks to establish itself as a lifestyle brand and plans to venture into men’s accessories such as belts, glasses, innerwear, body sprays etc.
Retail Strategy
Mufti is currently has a network of 220 EBOs and more than 1,200 MBOs. The brand has also marked its presence in large format stores through 117 counters like Shoppers Stop, Globus, Westside, Central. The brand plans to widen its retail network in Tamil Nadu, Kerala and parts of Karnataka along with Northeastern regions such as Assam, Meghalaya, Bihar and Jharkhand.
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BRAND LEADER
Numero Uno ‘We are seeing good demand in slim and skinny denim’ How is the Indian denim market responding to domestic and global players?
The market is amenable towards brands that enjoy either an exotic image or positive notions in the minds of customers in terms of fits and styles.
Has the scenario become tough for Indian brands?
Competition is good for all players as it will bring out the best in them and customers can have more variety. Existing players will have to consolidate their position in the market. Only those who offer quality products will be able to sustain competition in the long run.
Has competition affected pricing?
Narendra Singh Managing Director
As far as denim brands are concerned, companies are not likely to get into price wars, competition existed always. Consumers don’t mind paying a little extra if a pair of denim offers a feel good factor.
Has brand consciousness brought about a change in the market?
Brand recall plays a major role in this competitive scenario, but the ultimate role will be the product offerings.
Are Tier I, II cities ready for big global brands?
The global communication revolution has reduced boundaries drastically. Small towns have welcomed both Indian and international brands. People in smaller cities are brand conscious and have the buying power. Customers from smaller cities are buying products from their favorite brands not just from stores but also from e-commerce websites. Numero Uno has been steadily growing its presence in smaller cities of Punjab, Haryana, Rajasthan, Himachal, Bihar and Jharkhand.
What do you think of FDI?
With FDI, Indian brands are also expected to receive investments that can help them fight competition.
Tell us about your company.
Initially, known as the denim brand for men, Numero Uno has transformed into a lifestyle brand for the youth. Our target audience is men and women between age 18 to 30 years. We are a value for money proposition and compete with top brands in casual wear on the basis of fashion avant grade proposition. With proven expertise in trend forecasting, creative illustration and technical design, the brand believes in staying ahead. We have a range of belts, valets, bags, caps etc. Denims are offered in signature styling and a wide range of washes to suit every mood. Fashion denim has smart detailing, accessorisation with metal, leather trims and experimental washes. Our exclusive collection of denims is Espana and is made from premium fabrics, true vintage washes and minimal yet unique detailing.
What have been your high points?
Over the years, Numero Uno has received numerous awards and accolades. We won the Excellence in Retail Performance , award in 2006, Brand of the Year for men’s casual wear and women’s western wear in 2008 and Most Promising Brand of 2010.
Are you witnessing any major change in demand for your product category?
The demand for our denims continues to grow. In fact, we are seeing good demand across various fits especially slim and skinny. Color denims are also getting a good response. 50 DFU’s DESIRE DENIMS & CASUALS
OUTLOOK FASHION
10 - A, 2nd Floor, T.K. Industrial Estate Sewri (W), Mumbai - 15. Tel - 022 65919911/22/33, Mob - 9821443939, E-mail - outlookfashion@outlook.com
BRAND LEADER
Being Human ‘The brand believes in affordable fashion.’ The Brand
The label was conceptualized by Manish Mandhana , MD, Mandhana Industries, and Bollywood superstar Salman Khan in 2012. The brand, primarily driven by a philanthropic cause, offers a collection of smart and trendy casual clothes for men and women from 20 to 40. The product portfolio features: T-shirts, shirts, polos, denims, chinos, shorts, flip-flops for both men and women. The label has also introduced a wide variety of accessories like belts, caps and wallets for men. The Being Human range has a array of colors and hues. As the brand believes in affordable fashion, the price starts at Rs 799 and above.
New Collection
Manish Mandhana Managing Director
The brand’s Autumn/Winter collection comprises of four themes for menswear: Rebel Sports, Indigo Warriors, Rain of Light and Street Luxe. Each theme has a distinctive story and look. Rebel Sports is the most edgy in its outlook with a street sports vibe; Indigo Warriors is a take on indigo with denim taking the centre stage in this story; Rain of Light is a continuation of the brand’s love affair with bright colors; Street Luxe is a mix and match of classics to bring about the sartorial street wear look. The women’s wear collection features three stories, Amazing Amsterdam, Fabulous New York and Mi Amour Paris. The Amazing Amsterdam sports an embellished, feminine and festive look and the silhouettes are trendy and comfortable. Fabulous New York is a more girly and bright line featuring a bubbly, joyous, look. Inspired by chic styling, the Mi Amour Paris collection consists of embellished, sequined, and chic dresses in trendy and fashionable silhouettes.
Retail Strategy
The brand has a network of 23 exclusive brand outlets and 100 shop-in-shop. The label plans to roll out 100 exclusive brand outlets, 100 franchisee owned stores and 200 shop-in-shops by 2016. It has tie-ups with e-commerce majors like Jabong and Myntra. Its European distribution in Bordeaux, France, services around 120 selling points. Being Human clothing was launched in the Middle East in 10 countries with more than 120 selling points through the retail giant Splash.
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BRAND LEADER
Celio ‘We are starting a franchise model next year.’ Tell us about the brand.
Celio is mid premium aimed at the upper middle class. Our average price point is Rs 2,100. We are a full wardrobe brand. Our range is broken up into urban, free. Urban is smart casual and smart fashion. Free is more relaxed, weekend wear with polos, chinos, bermudas. You also have essentials, which sell basics. This has basic polos, basic tees, basic chinos. We also have absolute formals. This has work wear but with a twist. Even a formal garment of ours is a non pocketed garment. It has got a tweak the way the placket is done. There may be a print inside the placket. There may be a print inside the collar. The collar sizes may vary. Sometimes there are no collars. We have mandarin collar shirts too.
Rajiv Nair CEO
Polos and tees are one of our biggest segments. We sell a huge amount of polos and worked upon T-shirts. Cold pigment dyes are selling across the world. We have cold pigment dyed tees. We have indigo dyed tees. Nets are selling across the world. We have yarn dyed stripes with the addition of nets. These are small surface treatments.
What do you have for winter?
We have nets on sweaters. About 40 per cent of our business comes from winter wear. We have sweaters, jackets. About 60 per cent of our business comes from cities which face winter: Punjab, Jaipur, Dehradun, Delhi. We are in Pune, Hyderabad, Bangalore. We have lightweight jackets. These are in neon colors and camouflage.
What’s your retail plan?
Celio is in about 40 cities of India. We have 90,000 sq. ft. of retail space. Celio has 128 shop in shops. We are in Lifestyle, Pantaloon, Central, Shoppers Stop. We are in a couple of MBO outlets like Soham, Casablanca. We are in 41 standalone stores across India. All these are company owned. By March 2015, we may have two more EBOs. We hope to do 20 stores next year. We are also starting a franchise model next year. So we will do some stores on franchisees. We will also go into organized MBOs. These are stores that have a shop in shop set-up. In some cases we may not go direct but through distributors. Of the stores next year, four or five will be of our own. But about 15 will be franchisees. We have an India specific website. This has some 180 options. By summer 2015 we will have some 300 options.
How have you been growing?
A lot of inorganic growth has taken place with brands opening 20 or 30 stores a year. It’s difficult to say about like to like. Brands like ours have seen 30 to 40 per cent growth a year on a non like to like basis because we have added some stores. We have done an average of eight to ten stores a year. On a like to like basis we have done 12 to 15 per cent coming out of existing stores. This year we have done 12.5 per cent like to like growth. But the market has not grown by 12 per cent. After Diwali sales have been low. There are brands that are seeing negative sales this season. So the market is not strong at the moment. Summer 2013 had a big wedding calendar but summer 2014 was weak. The wedding calendar is weak in November and December 2014 too. That’s why business may have been lower after Diwali.
What about Celio prices?
For summer 2015, we are thinking of lowering prices by 10 per cent. Over the last couple of years, we did hike prices to reach a sweet spot for India. After that we have thought of giving the consumer a good price. For winter 2014 our prices rose by only four percent. 53 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Monte Carlo ‘Over dyed jeans will revive growth in cotton casuals’ What is the casual trouser market like today?
Casual trousers are making a comeback. We are confidently forecasting a growth rate of 20 per cent annually.
Do performance features like wrinkle-free, wrinkle-resistant, stainresistant, water- repellent boost sales? Definitely. Value addition in any manner gives a boost to the sale of the product.
What is the price segmentation in casual trousers?
We can categorize casual trousers by price segment. The highest selling segment is Rs 1,000 to Rs 1,900. This is the upper mid segment.
Sandeep Jain Executive Director
Tell us something about the competitive scenario in casuals.
The casual trouser market is extremely competitive. Three competing areas are fit, fabric and design.
Has the segment caught on in smaller cities?
It is gradually catching up there, although competitive has immense growth prospects.
What are the current trends and styles in casual trousers?
Flat front, narrow fit and soft feel of the fabric are in fashion currently. Flat front and cross pocket cover almost 60 per cent of the market for casual trousers. Value added casual trousers contribute 30 per cent of our casual trousers sales.
Would the trend of over dyed jeans revive growth in cotton casuals? Yes, we feel over dyed jeans will revive growth in cotton casuals.
Tell us about your company.
Monte Carlo was launched in 1984. We have T-shirts, tracksuits, jackets, sweatshirts and polo necks. We target both middle and upper middle and premium segments. Monte Carlo symbolises Oswal Woolen Mill’s transition from a small company with 800 spindles to a garment major with 35,000 spindles. The Monte Carlo range of knitwear boasts as many as 500 designs for men, women and children. This is the first brand in India to invest in a dedicated research and development department for woolen knits and weaves. Monte Carlo is a complete wardrobe for a fashion conscious family. It has a winter wear range (cardigans, pullovers, jackets, shirts, trousers, sweat shirts, denims, thermals, shawls) and a summer range (shirts, T-shirts, trousers, denims, bermudas, shorts, capris, kurtis) with an exclusive linen collection.
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BRAND LEADER
Indian Terrain ‘Our linen shirts, khaki trousers, and winter collection have received a very positive response.’ The Brand
Indian Terrain caters to style conscious men, 25 to 45 years of age. It offers complete casual line of shirts, trousers, T shirts, shorts, mufflers, knitwear, jackets, sweaters, denim, boxers and socks. The brand unveils four collections each year: spring, summer, autumn, and winter. It is looking to expand its product portfolio by launching accessories. With a turnover of Rs 225 crores, the company is looking forward to 25 per cent growth within the next few years.
New Collection
Amitabh Suri
Chief Operating Officer
The Autumn/Winter 2014 collection highlights tonal ensembles with innovative fits, garment finishes, and laundry. Indian Terrain’s linen shirts, khaki trousers, and winter collection have received a very positive response. Therefore, the company is re-launching Indian Terrain vintage denims. The three themes for the Autumn/Winter are: Ivy Diaries, Reclaimed and Instagramed.
Retail Spread
Apart from an online presence Indian Terrain retails through 750 MBOs, 175 large formats and 110 EBOs. It’s in large format stores like Shoppers Stop, Globus, Westside, Central, Pantaloons, and Lifestyle and has a widespread distribution network in Delhi, Uttar Pradesh, Punjab, Haryana, Himachal Pradesh, and Rajasthan. The brand also has a strong presence in Maharashtra, Gujarat, Tamil Nadu, and Andhra Pradesh as well. It is looking at expanding its presence in the east like Patna, Ranchi, Kolkata , Asansol , Guwahati, and Bhubaneshwar. The brand is also consolidating its presence in South India in cities such as Vijayawada, Guntur and Rajamundry. The brand will strengthen its network in emerging markets of Tier II and III towns. At least 120 stores will be launched by the end of this year.
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BRAND LEADER
Classic Polo ‘The brand is primarily designed for style savvy, classy young executives’ The Brand
Classic Polo is the pioneering brand from the Royal Classic Group. Launched in 1992, the Tirupur-based brand has undergone a lot of adaptations and challenges to match the constantly changing market trends and consumer demands. Today, it has evolved as a leading national brand with a presence across India and holds about 10 per cent of the organized market share in its category. In the last five years, the brand has doubled its growth rate. The product portfolio of Classic Polo includes polo tees, graphic tees, double mercerized tees, casual shirts, fashion trousers, denim, and corporate formals. Classic Polo’s price bracket ranges from Rs 899 to Rs 1799.
Usha Periasamy Vice President Operations & Brand
The brand is primarily designed for style savvy, classy young executives, mid management personnel and elderly professionals ranging from 25 to 40 years. Equipped with designing innovation and a wide variety of collections, the brand has gradually expanded its product portfolio from classic tees to trousers, denims and accessories. A major share of Classic Polo’s entire portfolio consists of casual shirts, made out of 100 per cent cotton fabrics with enzyme wash. The fabric options are plain, striped, checks, jacquards. The brand also offers a complete executive line collection in 100 per cent cotton and cotton polyester blends. The brand also has structured formals, core trousers in its collection. Offering complete wardrobe for men, the brand has also extended its product range into slim fit and skinny fit denims, innerwear, lounge wear and accessories. The brand’s collection of accessories also includes socks, belts, wallets and handkerchiefs. Soon the brand will include cuff links.
New Collection
For the festive season, the brand launched a range inspired from nautical elements and sailing over rough seas. The collection features innovations like super fine mercerized tees, indigo shirtings, finer jacquards and dobbies, premium linens, linen blends.
Retail Strategy
Classic Polo is currently retailing through 75 exclusive brand outlets, 3,500 multi brand outlets and 149 large format stores across India.
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Paresh Chandan +91 9845036022
#917/44, 2nd Cross, 2nd Stage,Kirloskar Colony,WOC Road, Basaveshwaranagar Bangalore - 560 079. Phone : 080 - 23221083 Telefax : 080 - 23223260
BRAND LEADER
Scullers ‘The brand’s design philosophy reflects stylish dressing.’ The Brand
Scullers, is a premium casual wear brand launched in 1999. Owned by Indus League Clothing, Scullers offers comfortable, easy and stylish clothing that caters to men and women aged 28 to 35 years. It has T-shirts, polos, shirts. Its chinos are fast replacing crisp formal bottom wear and denim wear. The wardrobe is priced between Rs 999 to Rs 5,999. Scullers Sports and Scullers Kids have been launched for their respective categories. The brand has been witnessing steady growth of 30 to 40 per cent year on year for the last three years. However, with the new portfolio, the brand has recorded 50 per cent growth. The brand’s design philosophy reflects stylish dressing for people who believe in timeless and sporty fashion.
Retail Spread
Sujatha R Nandan Chief Brand Manager
Scullers has a network of multi brand outlets and exclusive brand outlets. It is in all major MBOs and has 75 EBOs. These are company owned and operated. The brand goes to 29 large format stores across India like Pantaloon and Central. It’s on some online shopping platforms.
Future Plans
To strengthen its women customer base, the brand has planned an aggressive promotional plan targeting contemporary women. To tap the exponential growth in the women’s casual wear category, the brand is increasing its visibility in women’s fashion magazines.
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BRAND LEADER
Daniel Hechter ‘The middle price segment is selling the most’ What is the casual trouser market like today?
Casual trousers have returned all over again. When constructed a little formally they can be worn to office, for casual occasions and also make a fashion statement with contemporary styles and fits.
Are casual trousers and denim mutually exclusive?
Casual trousers have a broader definition. There is a plethora of options and colors under casual trousers with various weaves, styles, fits, silhouettes, finish options. All these put together will command a larger volume than denims. Most non denim casual wear brands sell casual trousers as core product.
Do you think performance features like wrinkle-free, wrinkle-resistant, stain-resistant, water- repellent boost sales?
Yes, since casual trousers can be worn for all occasions, these finishes facilitate their use. One can now wear a wrinkle resistant pair of trousers to a board meeting even if it calls for a long haul flight before the meeting because the trouser has wrinkle resistant and crease retention properties.
What is the price segmentation in casual trousers?
It is found in all price segments. The fabric decides the price segment. The middle price segment is selling the highest because fabrics in this price segment deliver performance without special frills.
Tell us something about the competitive scenario in casuals.
With the advent of new structures and weaves the casual trouser market remains dynamic at all times. It is essential to adapt new inventions in terms of fabric and also in terms of fits and styles to remain above competition.
Has the casual segment caught up in smaller cities?
Smaller cities, have not moved to the readymade sector yet so there is very little causal trousers because tailor-made trousers from worsted fabrics are popular. We seldom see fabric lengths being sold in natural fabrics such as cotton and linen.
What are the current trends and styles in casual trousers?
The current trend is colored casual trousers in unconventional colors. What have also caught on are slimmer silhouettes. Flat front trousers are the most fast selling with or without the front crease. Fits are slim, fabrics are twills and innovations are surface finishes.
Would the trend of over dyed jeans revive growth in cotton casuals?
With over dyed light weight cotton casuals catching up, one cannot foresee over dyed denims helping the cotton casual market but denims in whatever form would remain evergreen in fashion.
Tell us about the company.
Globally Daniel Hechter, the French lifestyle brand, completed 50 years in 2012. Daniel Hechter came to India in 2009. We have grown by at least 15 per cent a year since then. The brand is positioned as a premium international lifestyle brand. The Daniel Hechter consumer knows what he wants in life and where to get it from. We have the best fabric facility and the best sewing facility in India. The designs come from the hub of fashion. We have a combination of a good design sense from France and good manufacturing.
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BRAND LEADER
Hoffmen ‘An extensive range of stylish and smart casual wear.’ The Brand
Hoffmen launched in 1991 offers denims for men and women, cotton trousers, casual and semi casual shirts. The denim range for men includes basic and fashionable wear priced between Rs 1,195 to Rs 2,595 while for women the price range is from Rs 995 to Rs 1,495. The range of cottons trousers (for men and women) is priced between Rs 1,295 to Rs 1,795. Corduroys are one of the strongest selling products of the brand and priced at Rs 1,295 onward.
Aayush Rungta Director
In the last five years, the brand has introduced an extensive range of stylish and smart casual wear shirt collection for men and women. Featuring high quality yarn dyes, prints, plain twill, satin, the shirt range is priced Rs 895 to Rs 1,495 for men and Rs 995 to Rs 1,295 for women. The brand offers T-shirts for men and women with variations like stripers, flat knits, jacquards, prints. The price range of the T-shirts is from Rs 699 to Rs 1,099. The group turnover of Hoffmen Fashions is pegged at around Rs 45 crores. The plan is to achieve a steady growth of 15 per cent annually.
New Collection
The brand launched a wide collection of suits, blazers, sweaters, cardigans and sweat shirts. Taking it further the brand plans to launch an exclusive line of accessories including designer shoes, belts and wallets for men.
Retail Strategy
Apart from being a prominent brand in eastern India, Hoffmen has also penetrated across other regions of the country. It is looking towards consolidating its position in the southern India. Hoffmen currently retails through 60 exclusive brand outlets, 500 multibrand outlets and almost 20 large format stores. The brand plans to add more EBOs in metros, and Tier II, III cities. The aim is to reach 100 EBOs within the next three years.
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BRAND LEADER
Oxemberg ‘Functional and comfort attributes at smart prices will drive growth’ What is the casual trouser market like today?
The casual market is a mix of players from the economy to the premium segment driven by consumer lifestyle, exposure to international markets and media, aspirational values and customized product offerings. The current casual wear market stands at Rs 13,780 crores and it’s expected to grow at an exponential rate. Why do casual trousers have to depend on the decline in the denim wear market for growth? Though casual wear is being accepted as all time wear, it is a relatively new segment as compared to denim. The denim wear market is larger than the casual wear market. We believe that the growth of casual wear does not depend on denim wear.
Gaurav Poddar Director
The functional attributes of both are close but distinctive. Denim wear is associated with rough and tough use. Casual wear is mainly coming up as occasion wear, but it is also being accepted as semi formal wear. Thus casual wear and denim wear are mutually exclusive segments.
Do performance features like wrinkle-free, wrinkle-resistant, stain-resistant, water-repellent boost sales?
Yes, today with busy lifestyles, multiple activities are packed within a day. One has to commute long distances, spend long working hours and often dine outside. In this scenario the value adds in casual wear like wrinkle free, wrinkle resistant, stain resistant, water repellent prove to be an aid to the consumer. Moreover, considering the functional aspect of these features, casual wear is also getting accepted as semi formal and formal wear. So products with functional and comfort attributes at smart prices will drive growth within this segment.
What is the price segmentation in casual trousers?
The price segmentation of casual trousers stands as Rs 999 to Rs 1,399 for the economy segment; Rs 1,499 to Rs 1,799 for the mid segment and Rs 1,895 to Rs 3,699 for the premium category. The change in lifestyle, a buoyant economy, upsurge in per capita income, organized retail and evolution of double income families are some of the factors which are driving growth in this category.
Tell us something about the competitive scenario in casuals.
A decade ago the market dynamics of the casual wear category were focused on need basic clothing. It focuses on occasion-specific dressing currently catering to all consumer segments from the bottom to the top of the pyramid. Brands are differentiating themselves on the functional and technical aspects, detailing, fits, fabrics, washes and colors. The increased demand for comfort and the acceptance of casual clothing at the workspace are further responsible for the growth of this segment in urban areas.
What about smaller cities?
With the wide reach of cinema, television and marketing communication tools. people in smaller cities aspire to live an urban lifestyle, in the process the demand for occasional wear is increasing at a steady but positive rate. Nowadays most brands realize that the largest potential of growth comes from these cities because the operating costs are lower. They also present more profitable avenues to brands who struggle to earn decent bottom lines in the high-cost operating structures of metros and large cities. Thus the growth aspects in smaller cities look promising.
Tell us about your company.
Siyaram’s launched Oxemberg in the early 90s. We have formal shirts, formal trousers, fashion formal shirts and semi formal trousers. The brand targets a relatively younger audience group, the range being 23 to 35 years with a monthly household income of Rs 20, 000 to Rs 50,000. 64 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Cantabil ‘We have introduced winter denims’ Tell us about the brand.
Delhi-based Cantabil was launched in 2000. We have formal and casual apparel and have a distinctive Italian flair in design and style with high quality fabric offering a perfect fit, comfort and value. We have two state-of-the-art production houses. The brand targets 25to 35-year-old, professionals, middle- to upper income group. Our turnover is over Rs 118 crores and are growing at 30 per cent, which is considerably higher than the average growth of the industry.
What’s on offer for winter?
Deepak Bansal Director
Cantabil has introduced winter denims, where the reverse side has been brushed to give consumer a cozy feel. We have the right blend of cotton and acrylic to suit the needs of Indian winter in our sweaters. Mufflers and caps are new additional products. For the first time, fashionable suits and sweaters with vibrant neon touch detailing have been included in the denim collection. Neon women’s pullovers and leggings are new additions. Matching ties and pocket squares with digital prints have been included. Key styles are yarn dyed suits, striped front half open sweaters and shirts with trim around the neck and front placket.
What’s your retail network?
We operate through 150 exclusive brand outlets in 17 states and 71 cities. Of these, 70 per cent of the stores are in major cities of north India including in Delhi, Uttar Pradesh, Haryana, Rajasthan and Punjab. We will soon go online.
What are your plans?
We are coming up with a premium brand named Bonetti and a women’s wear brand named Crozo. A third brand Kaneston will have innerwear and accessories.
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BRAND LEADER
Cool Colors ‘We have has always focused on good fashion across the entire product range’ How has the Cool Colors product portfolio evolved over the years?
Cool Colors began with a basic line of shirts that we created to offer a different impression of style. Since then, the brand has maintained this approach, while expanding its product portfolio to offer a great variety.
Fashion is driving the apparel category today. How has Cool Colors changed to offer fashion?
The brand has always been focused on good fashion across the entire product range. We believe our consumers should be delighted with the sensation that comes with wearing unique and great looking clothes. This can only be achieved if fashion drives the design process from the start and uses interesting elements brought together to create the final product.
Praveen Mutha Managing Director
Elaborate on the company’s retail strategy and expansion plans.
The brand retails through leading stores in India, Singapore and the UAE. We have a presence in over 700 MBOs, five EBOs and two LFS. We are increasing our distribution network, through a mix of EBOs and MBOs. Our next target is Eastern India. We have focused our resources on understanding the challenges and opportunities for creating a sustainable business in that part of the country.
What works best for the brand: metros or Tier II cities?
We have focused on creating a strong presence that spreads across metros and goes up to Tier III cities. Our multi-prong approach allows us to cater to demographic specific requirements while maintaining uniformity in all our brand communications. Embracing the rise of mobile and internet penetration, we have managed to maintain a fairly equal growth rate across all markets.
How different are Tier II and III markets compared to metros?
Tier II and III markets are easier with lower cost of operations. The way real estate prices are soaring in metros, it has pushed many brands to explore and expand across Tier II, III locations. The marketing strategy remains the same as these cities have aspirational shoppers.
What is your pricing strategy?
We have a huge collection of versatile designs that have been created keeping in mind the latest trends and utilize a wide range of colour profiles for a variety of people. Our MRPs starts from Rs 795 goes upto Rs 1,295.
How does Cool Colors stand out among competition?
We use a variety of communication mediums that runs across, print, outdoor, digital and social media. Cool Colors, through dedicated work directed towards its brand image has broken free of the ‘just another brand’ impression and is seen as an alternative to mainstream brands.
Elaborate on the current style and trends in casual shirts?
The variety in our collection, has allowed us to satisfy both old customers and gain new ones. As always, stripes, solids and checks with great design create a great impression. The ratio between basic and fashion currently stands at 30 per cent and 70 per cent, with fashion being core casual and basic being semi casual.
Tell us about your expansion in the accessories segment.
Our expansion into the accessories segment was undertaken only after we were satisfied with all the capabilities we put in place to manage it effectively. While being stylish and fashionable, our accessories also involve a thorough quality check to ensure that the highest standards are maintained.
As a casual wear brand, what kind challenges do you foresee?
The challenge is always the same for casual brands, to remain different, be engaging and within the reach of consumers. While we regularly do research on current trends, we are confident about our personal style and the capability of our teams, to cater to the aspirations of our customers.
How is the men’s shirts market different in India from international market?
The shirt market has never slowed down. With a shift in corporate mindsets, growth has been tremendous with a definite rise in smart casuals. 67 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Irony ‘Denims are probably 40 per cent of the garment business’ Tell us about the brand.
Irony Jeans was established in the year 1994. We have denims, casual trousers, shirts. In a month we produce 20,000 pieces of denims and trousers.
What’s new for festive winter?
For winter we have launched a denim and cotton range. We have a pastel range for the season. Cotton trousers have become fashionable. We will increase production of cotton trousers. We are also going to introduce shirts for winter. These will be priced from Rs 1,550.
Tell us about the retail network.
We are in 600 MBOs through shop-in- shop formats. The brand is available in 10 states. We have 10 distributors. We are in Maharashtra, Madhya Pradesh, Kolkata, Guwahati, Delhi, Punjab and Gujarat. However the best performing markets for us are Maharashtra and Gujarat. In these states we don’t have distributors but retail the product directly. Now we plan to enter Uttar Pradesh by adding some five to six distributors. We also plan to add some 250 MBOs apart from launching the product range online.
Is the online medium fruitful?
Customers who believe in touch and feel don’t go online. So we haven’t felt the impact of online purchases. I feel internet purchases shouldn’t happen at all. While 30 per cent of consumers are doing net purchases, other 70 per cent continue going to the stores for their shopping needs. Besides I think net purchases are irksome. Getting a piece replaced can be real difficult.
How’s the market doing?
The garment industry is witnessing good growth. Business is taking place in malls. It’s no longer happening in small shops. People prefer malls where they can hang out and where there’s something for everyone. There is a wrong impression that business is dull because shops are empty. It’s just that business has shifted from shops to malls. The main challenge I face now is that of production. I have to upgrade my infrastructure and for that I am exploring funding options. The casual market has grown. People want fashion and that they can get it only through casual wear. When I say casuals, it also includes jeans and cotton trousers. But jeans are growing faster than casual trousers. All segments are growing, premium and mass. And I have no hesitation in saying I am high priced. Today even undergarments sell for Rs 2,000, then why should I sell my product for Rs 1,500?
How do you compare denims and casual pants?
I’d say denim and casual pants have about 50:50 share of the market. Casual pants have a higher share than denim by say 10 per cent.
What’s your USP?
Our USP is that once a customer buys an Irony product he forever becomes an Irony customer. Our fit and feel is unmatched. We use the best of materials in fabrics or trims. We buy fabrics from reputed mills in Ahmedabad.
Do you see a shift from formal trousers to denim?
I don’t think there is a shift from formal trousers to denim. I don’t wear denim. I don’t feel comfortable. I prefer casuals. I agree people are wearing denim to offices but I think, it’s just a fad. They see what’s happening abroad and get influenced. Or they look around and see others wearing denim and follow them.
What’s the share of denims in garments as a whole?
Denims are probably 40 per cent of the garment business. Demand for denim is growing and I think this percentage will go up. People like me sticking to casuals will be a minority. 68 DFU’s DESIRE DENIMS & CASUALS
Women’s Denim Rising demand luring more brands
Denims have now become a wardrobe staple for women both in metros and small cities. With a rise in working women, nuclear families abd fashion and brand awareness, there is a clear shift towards denims. Taking note of this trend, domestic and global brands are entering the segment, finds out Team DFU he women’s apparel market is ruled by ethnic wear which accounts for roughly 70-75 per cent of all apparel sales. Western wear that has lower penetration vis-à-vis organized retailers, accounts for the remaining, revealed a Technopak Advisors study. With relatively lower penetration of brands and the growing disposable income of modern women, this segment has become the focus of many Indian and international brands, the report added. Denim, innerwear and tops/shirts/Tshirts are the high-growth categories within the women’s wear segment. Denim is growing at a CAGR of 17 per cent with tops, shirts and T-shirts growing at 11 per cent. No wonder, brands are entering the lucrative category to tap the growing consumer base. Denim major Arvind sees women’s denim as the way to go forward. While, stretch and soft fabrics meant for women forms only 25 per cent of their production, Arvind wants to push it up to over 35 per cent over the next couple of years. Recently, it introduced excel denim in association with Birla Cellulose that offers stretch and softness in denim for women. Focused on women’s jeans, the excel denim fabric has already been commercialized internationally. The company expects excel denim to do Rs 2,200 crores business in two years. In fact, Arvind wants to be a big player in women’s denim wear. Even the Dutch denim brand G-Star Raw debuted in India in partnership with the Indian online shopping destination Jabong. The introductory range on the e-commerce site includes a variety of jeans ranging from Japanese selvedge denim to pure, raw denim replete with sophisticated washings and treatments as well as its famous 3D denim which is made using a unique construction technique and silhouette created by the European brand.
Growth attracts more players
The denim market in India is growing
• Women’s denim is fast evolving as a unique apparel category • Smaller towns show momentum while demand in metros rises • Market size still small but has great prospects • Domestic and foreign labels making a foray • Fit an important aspect of women’s denim exponentially. Under casual wear, denim has emerged as a prime category with the largest customer base. Growing demand for fresh styles and design has redefined the denim market in India. The traditional blue denim has now been reinvented into a new avatar with more options in colours, finishes, looks and washes. The availability of stretch denim in the last two years have taken the market by storm as it has addressed the challenges created by demand for a perfect fit and comfort. As per RNCOS Research the Indian denim market is currently valued at Rs 8,980 crores and is expected to grow at an impressive CAGR of 15 per cent, to Rs 18,430 crores, 70 DFU’s DESIRE DENIMS & CASUALS
by 2017. Along with international names like Levi’s, Lee, Wrangler, United Colours of Benetton, there are a number of home grown denim brands like No Error Jeans, Moustache, Hoffmen who are catering to the mid segment, price conscious Tier II and III markets. Even Arvind’s optimism is a reflection of how women’s denim market is shaping up in India. As Apeksha Patel, Director of brand Deal explains, “Denims are a wardrobe staple in western women’s wear and over the years it has dominated in this category. Having a specialty in either style, fabric, cut in merchandise definitely sets the brand apart from the rest, giving the
Modita Tripathi,
Senior Brand Manager, Jealous 21 In India, the challenge is that if you are a domestic brand you have to find a niche compared to global brands, which have established themselves well. Brands which provide good fit, washes, and are perceived to have good value are preferred by consumers. It should suit Indian body types.” existing women’s wear specialty brands a clear edge over others.” Denim is becoming more popular among women in the metros and mini metros, and especially among the younger generation. Even working women in smaller cities have started accepting denim as a casual outfit. The growing focus of retailers and brands on women’s denim will also contribute to its further growth. The growth in women’s denims segment over the last decade is due to increasing acceptance of jeans as a substitute to traditional churidars. As Jalaj Kakkar, CEO, Remanika elaborates, “Denim wear is evolving as a unique apparel category, largely driven by high fashion quotient along with durability and low-maintenance costs.” Globally, close to five billion meters of denim is produced, three billion or 65 per
Zubin Thakker,
Rahul Mehta,
Director, Recap “Women’s denim constitute only around 8 per cent of the Rs 4,000 crores denim market. So there is only one way for the market to move and that’s upwards.”
Managing Director, 1090 F “In the long run, the prospects are bright, but the standard sizing of Indian woman will always be a challenge and a limitation to growth.”
cent of which forms women’s wear. In India, it’s the opposite. Of the 400 million meters of denim consumed domestically, 85 per cent is aimed at men’s wear while the rest is distributed among women and kids.
Indeed denim wear has gained more popularity among metro women than in smaller cities but the latter too is catching up. As Kakkar says, “The acceptance of denim in India has grown tremendously over the years. While metros have been the key drivers of growth in the initial phase for most denim brands, the largest growth is now expected to come from smaller cities.” He feels, as demand grows in smaller cities, more brands will set up shops there and push sales aggressively.
With growing popularity the segment has become highly competitive with many new brands entering the space in the last few years. Zubin Thakker, Director, Recap points out, “Women’s denim constitutes only around 8 per cent of the Rs 4,000 crores denim market. So there is only one way for the market to move and that’s upwards.”
Small cities; strong growth markets
A research paper by Devina Upadhyay and Riddhi Ambavale titled ‘A Study on Preference with Reference to Denim Jeans in Female Segment in Ahmedabad City’ published in the ‘International Journal of Management and Social Science Research’ reveals most women preferred jeans to other garments simply because it’s more economical, comfortable and gives freedom from the dupatta.
Pakhi Saxena, Associate Director Retail, Technopak Advisors goes on to explain, “The majority of the market is concentrated in metros and mini metros, which together account for nearly 50 per cent of the market. The denim market is witnessing both value and volume growth. While the lower end value segment especially in Tier II, III towns and rural India is driving volume growth; mature markets in urban India is driving value growth. The current market is skewed towards men’s segment, accounting for 80 per cent of the total. However, the women’s segment is expected to grow faster and will account for 25 per cent of the total market by 2015. Currently, larger cities together contribute nearly 57 per cent of the total market.”
Bridging the gap with right products
However, there are several impediments to growth. As Modita Tripathi, Senior Brand Manager, Jealous 21 says, in India, the challenge is that if you are a domestic brand you have to find a niche compared to global brands, which have established themselves well. Brands which provide good fit, washes, and are perceived to have good value are preferred by consumers. It should suit Indian body types,” Tripathi says. In fact, Upadhyay and Ambavale’s study too showed, women focused more on the brand name followed by durability 71 DFU’s DESIRE DENIMS & CASUALS
of quality and comfort has bridged the gap between these factors.
Apeksha Patel,
Director, Deal “Denim wear is evolving as a unique apparel category, largely driven by the combines of a high fashion quotient with durability and low-maintenance costs.” and price while making a purchase. The fact is not many brands have been able to crack the finer points of Indian consumer’s fit. This is the reason why in spite of growing demand not too many leading brands have been able to make a mark. Women’s denim wear has undergone many changes over the years. Apart from the cuts and variations in waist-lengths and fits, it has changed in design and style with colours creeping in to add variety. However, Indian women now prefer basic jeans rather than intricate designs and detailing. Preference is for good fit and basic colours. Brands too focus on fabrication rather than styling. The choice
Most women in India wear denim to be fashionable and follow a particular trend. “When fashion and comfort is available at an affordable price, they prefer experimenting. Mid-level bands sell faster,” says Patel. Mid priced brands do well in all segments. Even though brands are making inroads in smaller cities, but it’s the right price that attracts buyers. So branded denim jeans with contemporary fits and washes at a price range less than Rs 1,500 is what sells most. As Kakkar avers, “Better pricing combined with a mix of traditional and modern retail concepts like ecommerce can help brands scale up business and improve penetration in Tier II, III cities. In fact, most brands realize that most the potential for growth is maximum in these cities because operating costs are low and profits are higher.” In Upadhyay and Ambavale’s survey, 60 per cent of the respondents said they preferred Levi’s and Lee, while Ruff and Tuff, Killer and Diesel are the least preferred brands. Interestingly, along with Levi’s it’s the lesser known local brands which attract women more. Thakker explains, “Penetration in this market is difficult since the market has to change culturally too. While in metros the challenge is only to provide a good fashionable product, which in itself is a challenge considering the fast changing trends, the smaller towns pose their own challenges not just in terms of product but also logistical issues. Tripathi points out that in women’s jeans, the main point is the fit. “For our market
at least, it’s not very evolved washes or styling. Fit forms 80 per cent of the decision. If that works, people look at the colour, washes, styling, pockets etc. Pricing is not really an issue. The price range of Rs 1,499 to 1,999 is not really a challenge.” The overall size of the women’s denim market is still too small for it to be attractive and viable for a major brand to focus on this segment. The common trend till now has been to promote the whole casual wear range together, pairing tops and accessories with denims, so that the consumer attracted to buy more products from the same brand. Saxena says “Brands such as Oliver and Only are successfully promoting their denim range with a wide array of fit, wash and style options for contemporary Indian women. Brands with a focus on fast fashion and youth, such as Zara and Mango, represent stylish-ness and ‘youth fashion’. They have greater denim offerings for women as compared to luxury/super premium brands. For fashioncentric brands, it is more about keeping up with the latest trends and the consumer is less price-sensitive.”
Looking ahead
Women’s denim is going to be more experimental with time and being a wardrobe essential, fashion and trends are going to be key elements defining this space. “In the long run, the prospects are bright, but the standard sizing of Indian woman will always be a challenge and a limitation to growth,” opines Rahul Mehta, Managing Director, 1090 F. Saxena sums up by saying “Although there are lots of established players in the denim market, the rate at which the industry is growing is providing scope for many more new entrants as well as existing players to come in.” 72 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Jealous 21 ‘We have three hip sizes for every waist’ How has the women’s denim category shaped up over the years?
The most important thing for women is the fit. We found there were three main Indian body types. We started the whole concept of denim jeans from there, hence make the perfect fit in jeans. For the last five years, we have seen 40 per cent like to like growth every year and have become a 100 crore brand now. The overall business to business including the new businesses is around 50 to 60 per cent. And jeans constitute about 50 percent of the overall value of the brand. We also have T-shirts and top wear. That’s how the brand portfolio has grown in the denim or jeans segment. In the overall jeans market, people are wearing jeans for all occasions including weddings and festivals. In Tier I, jeans get teamed with a bling top. So acceptability has grown. In Tier II, it’s worn with a halter top or with a kurti.
Modita Tripathi
Senior Brand Manager
In the women’s jeans market in India, the challenge is that if you are an Indian brand you have to find your niche as compared to overseas brands which have established themselves in the Indian market and have got great brand equity. So brands which provide good fit, washes, and which are perceived to have good value are preferred by consumers. You should suit Indian body types. As such, the trend is fashion denim jeans.
What is the size of the market?
We posted growth even during the slowdown last to last year. We have equal growth in metros and smaller cities. Tier II cities have accepted women’s jeans very well and to help them team the jeans with something appropriate, instead of something too flashy, we launched a fusion kurti range. In metros, where people are fashion conscious and want to look glamorous, there is funkier stuff like party wear, casual wear.
How can we compare Indian women’s denim wear with global women’s wear denim market?
There are metro cities in India which are really fashion conscious. So they would like to wear denim in a different way, which is very stylised and fashionable by cropping it, by doing effect, distressed, etc. In contrast, in Tier II cities, it’s seen as comfortable wear, where you want to look stylish but not too fashionable. So there are different sets of people in India, metros and Tier II. So it’s not necessary that a jeans look always has to be glamorous. In Tier II people are teaming it with woven tunics, fusion kurtis etc.
What are the major challenges?
When it comes to women’s jeans, the main point is the fit. For our market at least, it’s not very evolved washes or styling. Fit forms 80 percent of the decision. If that works people look at the color, washes, styling, pockets etc. Pricing is not really an issue. The price range of Rs 1,499 to Rs 1,999 is not really a challenge because people compare this to overseas brands which start at Rs 3,000. Our price range is Rs 1,999 for capris and all and fashion denim is Rs 2,999. Most local players are in this price range. It’s a safe and accepted price range. Right now people don’t want to spend Rs 3,000, Rs 4,000 for jeans. But an Indian woman may spend Rs 10,000 on a wedding sari, party wear or fancy salwar suits.
Is designer denim catching up in the women’s segment?
Fashion jeans are becoming popular in the women’s segment. Fashion means lots of colors, different washes, distressed denim and skinnier fits. Two or three years back there was hardly any color. It was indigo and different indigo washes like vintage, dark, light, distressed and some tinting. Now colors are popular. I used to have four styles in my brand. Now I have 16 to 20 styles with colors.
What are your growth predictions for this category?
Denim is growing in various fashion brackets. Lots of new trends are coming and so are lots of new fabric bases.
Tell us about your company.
The brand was founded in 2005. The idea was to get the perfect fitted jeans both at waist and hip, given the fact that every single woman has different body shapes, especially hip sizes. Jealous 21 is a casual, stylish, trendy brand which encourages every girl to speak her own mind, set trends and be confident. The main target consumer group is the college going teenage girls and young women for whom the most essential clothing is a pair of jeans. The USP of the brand is three hip sizes for every waist. 74 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Deal Jeans ‘We exude style and high fashion’ Please tell us about the brand
Deal Jeans was launched in November 2000 in Mumbai. It exudes style and high fashion. The collection consists of women’s jeans, leggings, capris, tops, skirts.
What are the new styles?
The brand’s recent launch is called E2O (Even 2 Odd), a fashionably exclusive and trendy collection of handbags, sunglasses, belts and accessories. They feature designs which are distinctive, revolutionary and radical. They are a perfect match for discerning customers who are not afraid to groove to their own beat when it comes to fashion. The Sunstyling collection is for kids and teenagers of modern age who want fun in style. Bright hues and crazy patterns bring alive their attitude.
Sameer Patel Managing Director
What’s your retail spread?
The brand caters to the mid-premium segment and runs its two EBOs in Mumbai. It has been aggressively pushing for expansion in Tier II cities. Besides this, Deal Jeans is also present in all leading e-commerce sites such as Flipkart, Jabong, Myntra, Fashionara.com, among others. Deal Jeans sees south India as a potential market and is spreading its wings there.
How do you see denim as a category?
Demand for denim among Indian women is lower as compared to men. But the scenario is changing fast as we are becoming global. Deal Jeans offers entire wardrobe collection for women but the thrust is always on denim. More and more Indian women are leaning towards denim as comfort and fashion matters to them. This category will see tremendous growth in coming years.
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BRAND LEADER
Recap ‘Tier II markets are catching up’ How has the women’s denim category shaped up over the years?
The category has been steadily growing over the years. Even then women wear constitute only 8 per cent of the Rs 4,000 crores denim market. So there is only one way for the market to move and that’s upwards. The specialty brands may have been affected by the slowdown but that’s temporary and the market is set to grow.
What is the size of the market?
The total denim wear market is about 300 million pieces a year which is expected to double to 600 million pieces by 2015. While men constitute almost 80 per cent of this market, it is estimated that women’s wear will dominate 25 per cent of the market by 2015. At the moment, the denim wear market is largely concentrated in urban areas but Tier II cities are catching up. If brands are attracted by lower rentals in these cities, and push aggressively for sales outlets here, the demand will only rise.
Zubin Thakker Director
How can we compare Indian women’s denim wear with global women’s denim market?
The size of the global denim market is huge. The US, EU and China alone constitute 70 per cent of the demand. India has a lot of catching up to do, but we also have a lot of untapped markets so our markets will continue growing even if global markets reach some sort of stagnation.
What are the major challenges?
Fit, pricing, cultural barriers continue to pose challenges. Though with greater exposure to internet, travelling, TV, cultural barriers are slowly coming down, prices remain a sensitive issue especially when it comes to penetration in smaller towns. Fit also needs to be catered to. Imported fits with no Indian customization are unlikely to work. Since the denim market for women is in the growth stages, pricing will remain a sensitive issue. For a lot of women in small towns, denim isn’t everyday wear. Hence, the inclination to spend on it isn’t high. If priced in the medium range, with good brand awareness, it will definitely attract customers as opposed to a Rs 2,000 jeans. Also the unorganized market offers jeans for really low prices, which could give tough competition to smaller brands.
Do you think creating a specialty brands in women’s denims is difficult?
Penetration in this market is difficult since the market has to be changed culturally too. While in metros the challenge is only to provide a good fashionable product the smaller towns pose their own challenges not just in terms of product but also logistical issues. While creating a specialty brand is difficult, it isn’t an impossible task.
Tell us about your company.
Recap was launched in the year 2000. We cater to the young Indian woman from in the age group 16 to 35 years. With more and more Indian women taking to jeans and jeggings, we find that our product also has a huge demand in the age group 35 to 50. Since we also have a special range for plus sized women, they are also our target audience.
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Sales Ofce 2 : Gala No.428, Atlantic Plaza, 4th Floor, K.G. Marg, Opp. Garage, Near Congress Tilla Bhavan, Garrage Galli, Dadar(W), Mumbai-400028.
Sales Ofce 1 : 205/206, Ashish Industrial Estate, 2nd Floor, Near Zandu Pharmacy, Opp. Indra Tower, Gokhale Road(s), Dadar(W), Mumbai-400025. Deepak Bhai - 9821372255, Mahesh Bhai - 9821362255, Telefax - 022-24378237.
Mfg. of Ladies Jeans
Western Personality
J E AN S
BRAND LEADER
109°F ‘Demand for smart casuals or occasion wear is growing’ The Brand
109°F from Creative Lifestyles was launched in October 2006. In a short span of seven years it has become the No 1 brand in the women’s western wear category in India. This women’s casual wear brand reveals the recent shift in trends. Strict formal wear has been replaced by smart casuals. Women in the work force are looking out for fashionable alternatives to formal wear. So the demand for smart casuals or occasion wear is growing. The brand is now all set to focus on design and quality to woo smart women customers. It has tops, tunics, dresses, shrugs and bottoms. Especially in casual bottom wear, the brand is witnessing 100 per cent growth as palazzos and pajamas are being considered as chic and fashionable.
Retail Spread
Radhesh Kagzi CEO & President
109°F has been exploring untapped, markets for expansion. The brand is present in cities like Udaipur, Siliguri, Chandigarh, Pathankot, Amritsar, Ludhiana, Surat apart from the main cities like Pune, Kolkata, Mumbai, Delhi, Bangalore and Hyderabad. In the last few years, 109°F has expanded its retail footprint reaching out to customers across India through 35 exclusive brand outlets, 109 shop-in-shops and more than 370 multi brand outlets. It has met tremendous success overseas in UAE, Kuwait, Saudi Arabia, Iraq, Ecuador, Sri Lanka and Nepal as well. The brand has its own e commerce portal .The website also offers cash on delivery (COD) facility. The COD facility is applicable to all online purchases regardless of the order size.
Awards
109°F has received various awards which include Best Debutant Brand at Central for the year 2007-2008, Special Jury Award for Retail Excellence by Asia Retail Congress in the year 2009, Best Women’s Wear Store at Inorbit Mall, Vashi, in the year 2010 and Best Performing Partner by Reliance Trends in the year 2012.
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BRAND LEADER
Sheen ‘Sheen realises 80 per cent sale from bottom wear and denims’ Please tell us about the brand.
We are into women’s wear. Three years back the company decided to enter the domestic market. We found western wear made in India not up to the mark in design, fabrics, finish, accessories, styling. So we decided to start this category. We test marketed in Mumbai and Delhi. Within one year, we spread through 12 states of India. Right now, we are doing 16 states. We have more than 800 MBOs. We are with C&M and Shri Sivam. For the women’s category we have 18 distributors.
Are you present online?
Deepak Dhar Partner
We are present online as this is the fastest growing segment in India. We are with three portals and are showcasing our present collection. In future, we will have a different collection for online retail. If you want a certain portion of revenue to come from online it has to be taken seriously. The product has to be developed for that medium. Online sales work as a device to clear stocks. A company gets a certain fixed percentage during sales. I don’t think more than 35 percent of the product is sold at full price.
What are the challenges?
Cost of manufacturing has risen. The credit cycle on the part of purchase has gone down. Inventory holding has become high. The bottom line is weak.
What about your product line?
Sheen realises 80 per cent sale from bottom wear and denims. We make indigo knit denims and have woven knits. We have started using denims from Indian mills. We are doing fashion categories-jacquards, twills the fits are skinny. This season it’s the torn, rugged look. Colors are more subdued now. We have introduced jeggings. We are developing a new range of western tops. Bottoms are Rs 1,595 to 2,495. Tops are Rs 1,095 to 3,595. All our products are made in India.
What about e-tailing?
E-tailing is an extension of physical store. We still take three days to deliver. Any brand has to be a mix of e-commerce, large formats, MBOs, exports. You have to connect with the end consumer.
Is it possible to have niche western wear brands?
I don’t see anyone making a brand. People are making and selling garments. Indian brands don’t make 100 per cent westerns. They make indo-westerns. It’s only large formats that make 100 per cent westerns. But these don’t go to MBOs.
How do you see the market?
Players are entering the retail segment but not much manufacturing is happening in this segment for the last four years. If you have the technology, you don’t have the raw materials. There are a lot of obstacles. Brands like us cater to only five or six per cent of the market. Lots of products in the western category can’t be made in India because of the social environment. Creating new markets is not easy. Body measurements are a problem. For eg: Ankle lengths can vary within a state. Mumbai, some parts of Maharashtra, Punjab, Delhi, Gujarat don’t differ much from each other. You can have more or less the same designs.
What’s new with you?
We have a kids’ line with pants and tops. This is for girls 6 to 18. Bottoms are Rs 1,195 to 1,695. Tops are Rs 895 to 1,495. For this line we are appointing new distributors. We already have 12 distributors.
What about expansion plans?
We will expand in large formats and online. We will hold MBO expansion for a year. Once our category is established, we will have six flagship stores owned by the company. This will be in 2015. The average size will be 500 sq ft. We are going on rentals. The per store cost will be about Rs 30 lakh and breakeven time is three years.
What about manufacturing?
Sampling and product development is in house. For manufacturing we have exclusive vendors. 81 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Taanz ‘We are known for colors, silhouettes and fashion detailing’ Tell us about the brand.
Taanz was launched in 2007. We started with women’s wear and offer affordable casuals to customers. Later, we entered men’s and kid’s categories. We have jeans, frocks, trousers, tops, wraparound, capris for women; T-shirts, trousers, jackets, denim jeans, embroidered denim jeans for men; and shirts, jeans, shorts and fancy apparels for children. Recently, we introduced a new line called ‘Taanz Attitude’, a collection of evening wear, party wear and high fashion garments.
What is your retail presence?
Kapil Khorana
Business and Product Head
We are in Tier II, III cities all over India and have three standalone stores. We are in 180 MBOs in India like Reliance Trends, Megamart, Central, Biglife Ritu Wears and Rajsons. We have distributors in Chennai, UP, Punjab, Rajasthan, Northeast and East India. We also export to Sri Lanka, Nepal, Maldives, Malaysia, South Africa, UAE, Oman, Afghanistan etc.
What helps Taanz stand out in the competition?
Our colors, silhouettes and fashion detailing in an affordable range help us to stand tall among competitors. We are young at heart and this helps us easily connect with customers.
What are the trends in western casual wear?
Western casual wear is dominated by high fashion. The mid premium segment immediately follows trends in western fashion.
What are the advantages and disadvantages of online business?
Today, customers want the latest fashion. They know about fashion trends and affordability. The media projections add their bit to consumer awareness. An already aware consumer is the greatest advantage today. Selling stock for clearance at discount rates is the disadvantage. But it has become an advantage for consumers. But it is known that no one gives discount on fresh material.
How has Taanz evolved itself in the apparel category?
We are among the few who understand what fashions are ruling over the minds of consumers. In today’s time, customers are well aware of fashions which they can afford. They also are greatly influenced by the global fashion trends.
You mean fashion is driving the market today?
How can one ignore the core business? In the apparel industry fashion is basic. The brand that captures the latest trends rules the market. I believe so.
When brands push themselves vigorously in the market, does it affect pricing?
Branded apparels are purchased in large quantities. Hence, many national and international brands have sustained themselves in India. Of course, their pricing affects national and regional level players and customers also.
How can national brands compete with international brands?
Most global brands are premium and they cannot sell products at discount rates. Hence, the middle class purchases from mid-segment brands which are mostly Indian. Besides Indian brands understand the minds of Indian consumers. With the right product, price and placement at the right place, Indian brands have an edge over global brands.
What about Indian fashion and style? Do customers accept them easily?
India is one of the leading countries as far as production and styling of garments goes. There are many fashion designers in India who have earned accolades and appreciation on an international level. Their crafted material is making waves in the international fashion scenario. So customers love Indian fashion and style. Otherwise the apparel industry would not have flourished on such a large scale.
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Kids’ Denim
Sighting demand, brands make a strong foray into the segment Kidswear segment in India, always being considered a complex business to deal with, is gradually coming out of the closet with brands making a strong foray. While the segment has traditionally been dominated by the unorganized players, gradually consumers are demanding branded clothing keeping the peer pressure, fashion quotient and quality in mind. Denim category among the kidswear players is just emerging but players agree that it is not possible to build exclusive denim brand… any national and international brands have launched denim collections for kids and others are all set to enter the category with a bang. Pepe, for instance, plans to launch kidswear range in India next year which is a strong line for the company internationally. It does very well in standalone formats and in department store formats. Highlighting plans for the label, Kavindra Mishra, Chief Executive Officer, Pepe, asserts, “We will just bring this line to India and maybe add one or two colours for the Indian market. So it’s primarily a line that’s imported. This will give an international feel to the brand.” According to the industry experts, the kids’ wear market in the country is growing at the rate of 20 per cent per annum which makes it one of the fastest growing markets. Earlier, the trend was that most of the people preferred buying functional kids’ apparel from the local market rather than branded ones but today media exposure, high disposable income of parents, peer pressure, growing fashion and brand consciousness among children are together driving the growth of kids’ apparel market in India. “All brands have product offers in this segment. The number of options depends upon the retail channel that each brand is pursuing. For instance, brands with larger presence in the EBO channel will need to keep higher number of options,” explains Manu Indrayan, Managing Director, Indian Clothing League (612 Ivy League).
Kids’ denim market at a new juncture
According to Abhishek Agarwal, Director, Creative Kidswear, makers of the kids’ label Under Fourteen Only (UFO), the denim market in India is huge and bottomwear on the whole seem to be an unexplored area
• Consumer awareness about brands on rise • Awareness leads to growth of the category • Denim consumption increases even in small towns • Price is a major roadblock to category’s growth • Fashion and trends driving the category under kids’ segment. “Not sure how other brands are coping but I am sure as the market matures, people will start accepting denims in a big way,” he opines. Expressing a different opinion, Anil H. Lakhani, Executive Director, Gini & Jony says, “The popularity of denim is fading around the world with the ever so increasing cotton prices and changes in fashion cycle. Denims are no longer in vogue, though in India mainline denim brands are selling big with aggressive plans lined up to launch new brands and innovative trends for the market. And kids’ denim market in India has great 84 DFU’s DESIRE DENIMS & CASUALS
potential that has remained untapped with no exclusive denim stores for kids.” Another reason why players find the denim category in kidswear difficult is because denim manufacturing is a little difficult and a long process. It takes 45 to 60 days to complete the whole cycle that involves cutting, stitching, finishing, and washing. That’s why the children’s wear industry doesn’t take up denim. Elaborating on why denim makers find it difficult to venture into kid’s segment, Lakhani says, “As kids outgrow their clothes very rapidly, it makes the market very price conscious. Fashion is more a fad
Anil H. Lakhani,
Executive Director, Gini & Jony “The popularity of denims is fading around the world with ever so increasing cotton prices and changes in fashion cycle. Denims are no longer in vogue. Though in India mainline denim brands are selling big with aggressive plans lined up to launch new brands and innovative trends for the market. And kids’ denim market in India has great potential that has remained untapped with no exclusive denim stores for kids.”
Kavindra Mishra,
Chief Executive Officer, Pepe “We will just bring this line to India and maybe add one or two colours for the Indian market. So it’s primarily a line that’s imported. This will give an international feel to the brand.” change by visiting our retail stores and our MBO markets for constant feedback and reviews,” he adds.
and inventory working could go wrong, which is why several denim makers choose to keep themselves off this segment.”
Says Sohail Patca, Director, D.S Corporation (Ruff), “It’s very rare to see parents buying clothes of their own taste for their children. The brains of children have developed so much that from three to four years of age, they convey the taste of their own choice. Children have become very fashion conscious, they are aware of the trends and keep a tap on changing fads. We, being fully into kids wear, have to constantly keep ourselves up-to-date with the fashion trends.”
Tough pleasing the little customers
Future holds great promise
Lakhani says that kids are aware of branded denim wear and have started asking for exclusive products hence there is a need for more fits and styles apt for this era of such short lived fashion/fad especially for kids who rapidly outgrow their clothes. “Brands are realizing the potential of this market and are increasing their presence in this segment,” he states.
The demand for denim category is increasing. The organized market is now being able to compete with the unorganized market. Organized retail chains opening stores across India. While pricing pressure
“Our target consumers are the generation next, the generation that’s aspires to be like adults. Earlier, the two to 14-year-olds did not have a choice of their own. They wore what their parents made them wear. Today, kids in this age group choose their own clothes; they would never wear something they do not like. So, we at UFO cater to these demands. We give them their personal space and this is very visible in our stores,” explains Agarwal. To attract the little customer, UFO has a dedicated wardrobe for them and a lovely interactive wall, scribble book to make them comfortable in the store atmosphere. “Our customers vary from a mother, a father to the children themselves who today make their own decision. Customer behaviour is on a constant change and we try our best to assess that and keep abreast with the 85 DFU’s DESIRE DENIMS & CASUALS
Sohail Patca,
Director, D.S Corporation (Ruff) “It’s very rare to see parents buying clothes of their own taste for their children. The brains of children have developed so much that from three to four years of age, they convey the taste of their own choice. Children have become very fashion conscious, they are aware of the trends and keep a tap on the changing fads. We, being fully into kids wear, have to constantly keep ourselves upto-date with the fashion trends.” continues to be a deterrent since India is a very price sensitive market, consumers not only from metros but even smaller towns are showing interest in spending on a quality product. “Kidswear is not a small business anymore. Driven by huge demand from brand conscious children; the ever so growing segment is the future of the industry. Kids’ denim segment is highly dynamic as kids get inspired from men’s and women’s
Manu Indrayan,
Managing Director, Indian Clothing League (612 Ivy League) “All brands have product offers in this segment. The number of options depends upon the retail channel that each brand is pursuing. For instance, brands with larger presence in the EBO channel will need to keep higher number of options.” wear styles and trends as well as celebrity fashion. There is a tremendous untapped potential in kids’ denim market,” asserts Lakhani. India is one of the largest denim producers. Denim with its vast potential can make a breakthrough in any product category and offer many newer products to the market. From fabric selection, style and design, printing and dyeing technology, denim range has begun to strengthen. Now the utmost need of the hour is of high quality production with a professional approach systematic and efficient marketing
Abhishek Agarwal,
Director, Creative Kidswear (UFO) “Our target consumers are the generation next, the generation that’s aspires to be like adults. Earlier the two to 14 year olds did not have a choice of their own. They wore what their parents made them wear. Today, kids in this age group choose their own clothes; they would never wear something they do not like. So, we at UFO, cater to these demands. We give them their personal space and this is very visible in our stores.”
Ojas Nishar,
Director, Sangam Dresses (Vitamins) “People who are focused on their brand, their product line will keep moving ahead. Junior wear is growing year-on-year but growth will happen only to people who are focused on their work.”
activities, platforms to create awareness and reach out to a wider customer base. However Indrayan says, “The main factor here is cost. The fabric cost of denims is increasing for the last three years. Moreover, denim garments require further processing. As such, the required MRP shoots up.
Being a price sensitive market, it is difficult to absorb higher costs. Bigger denim brands incur excise duties and all other retailing costs. Thus their MRP requirement increases beyond affordability in the middle class segment.” Kids wear denim segment is dynamic. Local brands have higher market share in Tier II & III cities where population is comparatively dense. For denim brands it’s thorny to step into kids wear as the market is fashion centric and price sensitive. The market calls for experimentation which if gone wrong can lead to failure. As Ojas Nishar, Director, Sangam Dresses (Vitamins) puts it, “People who are focused on their brand, their product line will keep moving ahead. Junior wear is growing year-on-year but growth will happen only to people who are focused on their work.” 86 DFU’s DESIRE DENIMS & CASUALS
BRAND LEADER
Gini & Jony ‘It’s possible to have a variety of denim styles for kids’ Does kids’ denim have a big market in India?
The kids’ denim market in India has great potential that has remained untapped with no exclusive denim stores for kids. Kids’ are aware of branded denim wear and have started asking for exclusive products. There is a need for more fits and styles apt for this era of such short lived fashion, especially for kids who rapidly outgrow their clothes. Brands are realizing the potential of this market and are increasing their presence in this segment.
What is the future of this segment?
The segment is highly dynamic as kids get inspired from men’s and women’s wear, celebs, Bollywood and others. There is tremendous untapped potential in kids’ denim market. India is one of the largest denim producers. Denim with its vast potential to make a breakthrough in any product category can offer many newer products to the market. It’s possible to have a variety of denim styles for kids, from fabric selection, style and design to printing and dyeing technology.
Anil H Lakhani Executive Director
Which is the bigger market for kids’ denim brands, metros or smaller cities?
Considering the number of non metros the total contribution of metros may seem small. But brand volume in metros is much higher.
Why don’t big brands enter this segment?
The kids’ wear denim segment is dynamic. Local brands have a higher market share in Tier II, III cities where the population is comparatively dense. For denim brands, it’s thorny to step into kids’ wear as the market is fashion centric and price sensitive. The market calls for experimentation which if gone wrong can lead to failure. Denim makers find it difficult to venture into this segment as kids’ outgrow their clothes rapidly, making the market price sensitive. Fashions are more of fads and inventory calculations can go wrong, which is why several denim makers would choose to keep off this segment. In kids’ wear a better proposition is to consider doing more product categories in the brand that complement the denim wear. It would be difficult for a brand to sustain with only a kids’ denim segment.
Tell us about your company.
Gini & Jony started the business of making readymade garments with four stitching machines. Over 30 years, the company has emerged as India’s leading kids’ wear brand. We cater to girls and boys in the 0 to 16 age group. For boys we have Bermudas, jeans, knits, jackets, shirts, trousers, shorts. For girls we have hot shorts, jeans, jump suits, leggings, skirts, tunic tops, dresses.
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BRAND LEADER
Ruff ‘We are looking at a market where economy plays a major role’ Does kids’ denim have a big market in India?
Yes, kids’ denim has a good market as India and is expanding day by day. The existing market is fitting into it very well. There is a lot more required in this section, but again the requirements vary according to taste and financial status of the masses. As a result of this, each brand as well as local players are enjoying their own space of goodwill in the market.
What is the future of this segment?
Children now know what they want, they have become very fashion conscious and aware of trends and keep a tab on changing fads. We have to constantly keep ourselves up to date with fashion trends.
Which is the bigger market for kids’ denim brands, metros or smaller cities?
Sohail Patca Director
Both markets are promising. In metros, consumers have more choices. In smaller cities there are fewer choices but people are more brand conscious.
Why don’t big brands enter the segment?
We are looking at a market where economy plays a major role. The price tag is important. Local players have less liabilities and this reflects on the price of the product. Also many of them play with an average quality product which again influences the rate. But higher brands follow a system of coming up with new fashion, new fabrics or new concepts to maintain their goodwill and stability in the market. Creating a brand in denim is a little difficult. Denim is not the usual fabric. Different denim fabrics have uniqueness and quality of their own. Washes have to be carefully experiment. Denim for juniors range has to handled carefully. Material, washes and accessories have to be carefully put together to suit children. Tastes and designs have to be well understood. If this is not done, the result may well be failure.
Tell us about the company.
D S Corporation is the flagship of Dearson Group engaged in manufacturing garments for the last 28 years. The group started manufacturing party wear and formal coordinates way back in 1980. The brand opened in 1995. We target children 0 to 16 years, middle and upper middle class. Ruff comprises trendy designer wear trousers, denims, capris, shorts, shirts, T-shirts, jackets etc. This range is complemented by a wide variety of accessories such as socks, undergarments, water bottles, caps, belts, wallets, tennis balls etc.
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BRAND LEADER
612 Ivy League ‘We are the first Indian brand for pre-teen children’ Does kids’ denim have a big market in India?
Yes, the market for kids’ denim is fairly large and most brands have product in this segment. The number of options depends on the retail channel that each brand is pursuing. For example, brands with a larger presence in EBO channel will need to keep higher number of options.
What is the future of this segment?
Denim is an evergreen segment and a useful material for apparel. With the growth of kids’ wear segment as a whole, denim usage is also bound to grow.
The segment is dominated by existing kids’ wear or local players. Explain.
Manu Indrayan Managing Director
The main factor is cost. The fabric cost of denims has been increasing for the last three years. Moreover, denim garments require further processing hence MRPs shoot up. In a price sensitive market, it is difficult to absorb higher costs. Bigger denim brands’ MRP increases beyond affordability in the middle class segment.
Why is there a vacuum in the kids’ denim segment?
I don’t think there is a vacuum in the kids’ denim segment many brands are offering a number of options.
Do you think creating a brand in kids’ denims is difficult?
Kids’ wear brands have denims as one of the options. It is not possible for a purely denim based brand to do well in kids’ wear as it does not satisfy the basic requirement of variety, design flexibility, active clothing (related to kids’ lifestyle) combined with fashion appeal.
Tell us about your company
We have a textile background and are originally into yarn spinning. We launched the brand in 2008-09. We make a complete range of casual wear for boys and girls. Our focus is on 6 to 12 year olds. We offer round neck tees, collar tees, shirts, denims, Jamaicans, sweat shirts, track suits, jackets, and sweaters. Heavy winter jackets go up to Rs 1,400. We offer premium quality at affordable prices. The styles are contemporary and colors trendy. We use excellent fabrics, predominantly 100 per cent cotton. The cotton yarn is sourced from the best mills and then it’s processed like biowash that eliminate or reduce pilling. Our range is based on certain themes. Out of 300 styles we do a season, 150 for boys and 150 for girls, we have two strong themes. 612 Ivy League is the first Indian brand for pre-teen children. We have a manufacturing set-up in Ludhiana. In the first year we grew by 200 per cent. The second year was again 200 per cent. The USP of the brand is that it offers international styling at affordable pricing.
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Mid Segment
Keeps its date with promising growth The price-sensitive Indian consumer is pushing growth of mid segment denim category. Players are racing ahead despite odds. While growth opportunities, numerous challenges make it tough for big players to succeed in this space, finds out Team DFU ince the 90’s India’s middleclass has emerged as one of the biggest consumer groups. A Deloitte analysis has predicted that India will be among the fastest growing markets, along with China, Vietnam and Indonesia. There are two aspects to India’s growth. First, the rapid expansion of India’s middle class, by 2020, India will be the world’s third largest middle class consumer market behind China and the US. By 2030, India is likely to surpass both countries. The second aspect is the increase in income levels of Indian middle classes, which is driving greater aspirations. And it’s this aspiration that is fueling growth in the FMCG and retail market. This holds true for the overall apparel industry and the denim category as well. Perhaps this explains the strong growth pace of mid segment denim market which has grown immensely over the past few years. Experts predict, it will continue to grow even bigger in the future.
• Mid segment is a huge hit among middle class Indians • Low price factor and fashion play a major role • Fashion elements make mid segment brands stand out • Big players find it tough to succeed in this segment • Mid segment has to compete with mass market players • Mid segment lures those who shift from mass market to brands • This segment forms the major chunk of the market
Price, the growth driver
The major chunk of the Indian denim market is governed by unbranded segment which forms the mid segment of the market. The growth of unbranded denim market has been possible because of the price factor. “For the simple reason, in a population of above 1.2 billion, a very small segment can afford premium and super premium brands,” opines Paresh Chandan, Proprietor of Aru Enterprises retailers of the denim brand ‘Hard Currency’. Indeed, non branded players are able to offer their products at lower prices thereby price cutting bigger known brands. Adds Sabu Joseph, Director, Wert Jeans explains, “Players in the unbranded segment offer denim at lower prices, at times far lower than branded ones. This is possible because of the low cost material right from fabrics to accessories, which goes into making of the end product and also due to some infringement of rules and regulations.” Mid segment makes up the major chunk of the denim market and is also most in demand. As Kuntal Raj Jain, Director, Duke points out, “Mid size denim market is huge in India as the majority of sales comes from the unorganized sector. Of course, the exact growth, size and share may not be ascertainable, but it seems to be growing at 50 per cent on an average and the target consumers are the masses.” 90 DFU’s DESIRE DENIMS & CASUALS
Ankur Gadia,
Director, Klix “In the overall picture the major chunk of business is being generated by mid segment players in the denim market. If you are quality conscious and have good relation with the retailer, you can succeed in the market. The only trouble is the brand perception of a mid segment brand.”
Kuntal Raj Jain,
Director, Duke “Mid size denim market is huge in India as majority of sales come from unorganized sector. Of course, the exact growth, size and share may not be ascertainable, but it seems to be growing at 50 per cent on an average and the target consumers are the masses.”
Neeraj Goyal, Director, Shivasa Apparel makers of brand Mojave believes, India is not really ready for high priced jeans. The market is evolving. Also, jeans manufacturing happens in India. “When there are many manufacturers, the options available in the market are manifold. The customer gets a variety to choose from. Other countries focus on branding. Since they don’t do manufacturing, the customer doesn’t really have a choice. They don’t have many midlevel choices. But since Indians have many mid-level choices they don’t have to look only at premium denim,” he explains. The main consumer of mid segment brands are the youth and middle class who are either looking for fashion or value for money products. Sales are growing and so are the price bands. Two years ago, Rs 900 to Rs 1,000 was considered mid segment but with increasing inflation, anything below Rs 2,000 is bracketed under the mid segment. In India, the mass is the middle class. They are the customers who cannot buy premium segment. And as Manish Jain, Director, Rick Rouge goes on to say, “Many people prefer the mid segment because they get more fashion than well-known brands. Those who want basic, go for brands. Basic sells less in the mid segment as people want more of fashion products. This is true for the entire country other than the south.”
Brand loyalty is passé
With growing demand, the mid segment has become very competitive. This wasn’t the case two years ago. Today, most mid segment brands are doing good business. They maintain quality and the focus is on innovation, variety, design, colors etc. Directorduo Hitesh and Yash Vadera of Poison go on to say, “The target audience for mid segment is mainly youngsters, the college crowd and 91 DFU’s DESIRE DENIMS & CASUALS
Manish Jain,
Director, Rick Rouge “Many people prefer the mid segment because they get more fashion than well-known brands. Those who want basic, go for brands. Basic sells less in the mid segment as people want more of fashion products. This is true for the entire country other than the south.”
Yash Hitesh Vadera,
Directors, Poison “The target audience for mid segment is mainly youngsters, It’s for those who want designer stuff and want the right fit according to their comfort zone. In fact, some people between 40s and 50s too are open to fashion and want things like faded jeans. those who are not brand conscious. It’s for those who want designer stuff and want the
Paresh Chandan,
Vinod Kumar Gupta,
Proprietor, Aru Enterprises (Hard Currency) “For the simple reason, in a population of above 1.2 billion, a very small segment can afford premium super premium segment.”
Managing Director, Dollar Force “The average middle income segment in India is still influenced by price rise and recession. Fluctuation in buying behaviour restrains the corporate sector.”
right fit according to their comfort zone. In fact, some people between 40 and 50 too are open to fashion and want things like faded jeans. The USP of mid segment brands is the fancy elements they add.”
Mid segment brands face competition from regional brands in pricing and product range. “If our brand is active in the south, we are in competition with regional players there. In terms of products, we are at par with premium brands. The only difference being they are more aggressive about advertising and a mid segment brand can’t afford to spend so much on ads,” explains G S Naveen, Managing Director, Twills. Indeed, one major challenge for the mid segment is to establish brand loyalty, foster brand awareness and to convince the buyer to stock them. Another major challenge is getting shelf space in good counters. The product has to meet standards both in terms of quality and pricing. In fact, brands in the mid segment need to control prices for any change even marginally, turns away consumers. “International brands go for discounted sales every three months and they sell at our MRPs. That’s a major threat to mid segment players. We don’t have a concept of discount retail in our business. Price plays a major role for us and we have to be on our toes in delivering fashion,” opines Rahul Soneji, Director, Rettro. The challenge that a mid segment brand faces from premium brands is mostly in terms of branding, popularity and advertising. Elaborating further, Gadia says, “In the overall picture, the major chunk of business is being generated by mid segment players. If you are quality conscious and have good relation with the retailer, you can succeed. The only trouble is the brand perception of a mid segment brand.” What’s more, most mid segment denim brands do not have a retail presence of their own and they have to take the MBO route. In return, they want maximum margins. Gadia adds, “There is no comparison between mid segment players and non branded lower players, as the latter believes selling as cheap as possible and quality does not matter.”
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Mass denim market doesn’t have a core competitor as it offers competition to major branded players by offering similar styles at really cheap prices. Aayush Rungta, Director, Hoffmen says, “There are challenges galore, be it pricing, or fits, style, it is challenging to justify your product and price at the retail level. However, these challenges are faced by other denim segments as well.”
Tough play for big players
Brands survive in the mid segment even though payments have a long cycle, and inventory costs are high. To manage all these is a daunting task. Many corporates have burnt their fingers in this segment. Jain explains, “It’s not as if corporates haven’t tried to get into the mid segment. But sooner or later they face losses. The mid segment is one area that needs total concentration. If you treat it as an adjunct to your business, it’s not possible.” Mid segment is about fashion and no one wants to make fashion. Fashion jeans are difficult to make for big corporates. Brands are by definition basic, therefore, maintaining a consistent interest with changing style and demand for a new variety becomes a test for tenacity, when existing products are already established. As Vinod Gupta, Managing Director, Dollar Force says, “The average middle income segment in India is still influenced by price rise and recession. Fluctuation in buying behaviour restrains the corporate sector.” Brands have their own overheads and policies, this makes a difference. The bottomline is the mid segment is very lucrative and going ahead the future seems good as it has enormous growth potential. Rahul Soneji, Director, Rettro sums up, “The mid segment can grow steadily. We are growing and are positive about an accelerated pace in the future. The scope is immense.” 93 DFU’s DESIRE DENIMS & CASUALS
BRAND STORY
Activiti ‘Causal trousers are showing the highest growth in small cities’ Hitesh Dave, Director Casual Trousers Market
The casual trouser market looks good. It’s better than what it was two or three years ago. Khakis will make a comeback but then color variations are needed. Casual trousers come in a variety of colors. Cotton was slow in the last two-three years, but this year will be good. The casual trouser market will grow by 40 to 50 per cent. I don’t think features like wrinkle-free, wrinkle-resistant, stainresistant, water-repellent are lasting. They are chemical treatments and fade away after a couple of washes. When they came in 1999-2000, they were a craze. But they don’t amount to much and won’t help increase the market size. Now it’s mainly about fabric variations and color. Causal trousers are showing the highest growth in smaller cities and interiors. Even the interiors are accepting cotton. At one time, people here wouldn’t accept MRPs above Rs 1,000. But now they are. They are willing to go up to Rs 1,500-1,600.
The Brand
The brand opened in 2002. We started with basic denim and basic cotton. Then the trend changed in favor of touch-ups and fabric variations. Overall, we have had good growth. We focus on the age group of 20 to 50 years.
Camaro ‘I don’t think denim wear prices need correction in India’ R K Patawari, Saumar Sharma, Director, Business Head Denim market
India is diversified and every category has its own audience. But penetration into major sales areas of this country, where the pocket size is small, is the biggest challenge with price points above Rs 3,000. Out of the super-premium, premium and mid segments, the premium segment is growing at a faster pace, since it is able to deliver a reasonably good brand name, brand size, availability and the best possible product at an affordable price. Having said that we have to define very clearly what makes it a super-premium, premium or mid-segment brand. I don’t think denim wear prices need correction in India. Every segment has its own audience and brand loyalty has a role to play. Discounts might work for super premium brands as customers find the price suiting their pocket only at that time. We as a brand do not participate in any discount or EOSS.
The Brand
Camaro opened in 1991 and we make denim, casual trousers and T-shirts. We are in the mid premium segment. Our focus is predominantly men’s as of now, but coming up shortly with a big women’s fashion line. We have a steady growth of 20 to 22 per cent year on year. We have an ultra-modern, cut-topack production unit based in Mumbai and a capacity of producing 700 pieces of denims per day.
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BRAND STORY
Channel F ‘Regional players are cost-effective’ Syed Sajid Husain, Director Denim market
Government policies are responsible for the growth of unorganized denim. The branded sector runs on billing. Secondly labor costs have gone up and the organised sector feels the pinch. Labor hesitates to work in the organised sector because of rules like identity card, documentation etc, and procedures where money doesn’t come to hand but goes to an account every month. They find all this irksome. In the unorganised sector, labor is paid every Saturday. So they spend the weekend buying what they like. The unorganised sector has the ability to make quick changes. They can adapt fashion much faster than the organised sector. I don’t think unbranded players are keen to convert to branded. When you become a brand, you have a certain image to live up to. You have to be present at certain locations, your store has to be of a certain size etc. You find yourself on a suicidal track. Regional players are cost-effective since they operate in their region. They can cater to local tastes. They can give the retailer good service. They are at hand to resolve difficulties and are in constant, weekly touch with retailers.
The Brand
We are in the mid segment and make women’s denim. We have skirts, dungarees, hot shorts and capris. The brand opened in 2001. We have been in the garment industry since 1989. We were doing for men and children. Then we saw a big gap in women’s garments and started doing that. We dropped men and children.
Duke ‘The mass denim market doesn’t have any core competitor’ Kuntal Raj Jain, Director Denim market
The mid size denim market is huge in India since the majority of sales comes from the unorganized sector. The target consumer is the masses. Tier II cities are major consumers. The mass denim market doesn’t have any core competitor. In fact, it is giving competition to major branded players by offering similar styling at cheaper prices. The unorganized sector plays on volumetric terms whereas brands have their own overheads and policies. This makes a big difference. To do business in the mid segment, denim market brands should offer a qualitative and international level product at affordable price points.
The Brand
Duke was launched in 1966. We deliver innovative knitwear and fabric that make key style statements .We cater to men, women, and children. Our target group is all segments particularly the masses but it has shifted to the young and premium classes over time. We have T-shirts, jackets, sweaters, track suits, sweat shirts, shirts, trousers, denims, lounge wear, inner wear, shoes and accessories. We are influenced from the latest European fashion trends. About 80 per cent of our turnover comes from the men’s segment. Our turnover is over Rs 200 crores and we are looking at Rs 400 crores in the next three years.
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BRAND STORY
Focus Jeans ‘The south has tremendous purchasing power’ Yogesh C Kuruba, Director Denim market
The organised retail market is growing. I don’t think the unorganized market has the upper hand. Compared to us, corporates do heavy advertising. Their retail network is stronger than ours. But brands like us do better work. And we have a price advantage. What they give for Rs 3,000 we can give for Rs 1,295. We have a better grasp of market conditions. Customers like our fits. For the last 10 years we have been seeing few conversions from unbranded to brand. Unbranded names may hike production but they are not bothered about development. Unbranded products have a short life. Regional players understand local preferences better than national players. And some markets like the south have great potential. The south has tremendous purchasing power. We give great fabrics, colors and washes. We focus on quality and fits and use superior threads, buttons, and zippers. Our customers know this. Unorganised brands can’t compete with us. Their sole obsession is price while Focus Jeans is more concerned about quality. We have continued using the same fabric even if the rates have gone up. The unbranded sector does what the market does. And for the last three years, the market trend has been basic.
The Brand
The brand opened in 2000. We make women’s denims, casual trousers. Our target is women 16 to 60 years. This covers the entire range, collegian to mother to a mature householder.
Frod ‘Regional players are masters of their territories’ Parin Anil Shah, Director Denim market
The unorganised segment makes fashion while the organised segment doesn’t concentrate much on fashion. Another factor in the unorganized segment’s favor is that it escapes excise. And excise is the main cost factor. So the unorganized segment plays on fashion and pricing. The conversion ratio from unbranded to brand is 15 per cent. Becoming a brand and surviving is not easy. There are issues of overproduction. Regional players are masters of their territories. They understand consumer psychology and local preferences. For two years we have been having severe competition from the unorganized sector. But because we are quality conscious, we have an edge. The main attractions of the unorganised sector are prices and the margins they give to retailers.
The Brand
We are a menswear brand and started in 1996. We began as a small unit. The monthly output was not more than 1,000 pieces. Now our monthly output is 12,000 pieces. We are doing a lot of work at the national level. We have a presence in many states. In fact, that’s our whole concentration now. Apart from jeans, we make trousers, casual trousers and casual shirts. The age group is 18 to 35 years. It’s a fairly young category of consumers who are fashion conscious and want to explore new horizons in dressing. We are looking to grow by 10 per cent a year.
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BRAND STORY
Hard Currency ‘We have the image and personality of an international brand’ Unita Chandan, Fashion Creative Director The Brand
Hard Currency opened in 1995. It makes denim for men. The age group is 16 to 60. The brand has two product categories, core and fashion. Core is for the older age group and is priced at Rs 899 to Rs 1199. This also has a series of stretch silky denims. Fashion is Rs 1500 to Rs 2000. Fashion has a waist size of 28 to 38 inches while the core size goes up to 44 inches. Fashion products are given mild classic and vintage washes. The brand is available in Kerala, Karnataka, Andhra Pradesh, Gujarat, Jharkhand, Madhya Pradesh, Uttar Pradesh, Bihar. Now it plans to expand to North India as well as Mumbai. Right now it mainly caters to south Indian Tier II and III cities. It’s aiming to push its distressed denims into the western Indian market.
New Collection
Hard Currency has the image and personality of an international brand. At the recent CMAI National Garment Fair in Mumbai, the brand introduced a range of 10 percent vintage and distressed denim. The collection for the autumn/winter and festive season has a subtle look. The brand has focused on sophisticated fits, fashion forward washes and custom made designs.
Just I ‘Tier II and III are the first markets for the mid segment’ Arvind Gupta, Director Denim market
In the mid segment, consumer psychology is changing. For them it’s basically the product. Premium segment brands frequently have end of season sales to clear their inventories. That’s the reason the mid segment is strong and will be strong in the years to come. And compared to other segments, it’s growing at a phenomenal rate. Usually it’s the 20 to 30 years old who are the consumers of mid segment. They are not brand loyal but want style and fashion and new elements. Tier II and III are the first markets for the mid segment. And metros will gradually become markets for the mid segment. The major challenge for mid segment is to establish brand loyalty, foster brand awareness and convince the intermediate buyer to stock them. I think there are brands in the mid segment even though payments have a long cycle, inventory costs are too high. To manage all these is a daunting task for anyone. Corporates have burnt their fingers in this segment. They have realised this is not their cup of tea. Brands wanting to do business in mid segment should adopt quick and fresh fashion.
The Brand
Just I opened in 2008. The product portfolio includes men’s casuals like T-shirts, shirts, sweat shirts, flat knits, tees, jeans, corduroys, accessories. We are a mid-segment lifestyle brand. Our core target audience is 16 to 45 years old. Every year we grow by 100 per cent.
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KLIX
Style Feature
The Brand Vinita Synthetics Industries Pvt. Ltd launched its brand KLIX in 1988. In the product portfolio it offers denims and casual trousers for men. In the near future they have some plans to introduce another category as in Shirts and T – Shirts. Klix is a mid segment value for money brand. They have very strong presence Pan India through 500 MBO’s and wishes to step it up to 800 MBO’s in the next three years. They have their online web store. As far as their presence overseas they are present through approximately 70 shop –in- shops and their productivity has gone up by 40 %. The Collection Klix is a multidimensional men’s wear brand which offers fashion denims, core denims and casual trousers. They have variety of unique style designs and cuts in each catagory. Klix is coming up with few organic products this season and also added knitted garments. Very affordably priced at Rs.999 – Rs.1999 for their denims to casual trousers. For this coming Autumn Winter collection Klix is more into earthy colors like sand, neons, blues , khaki, pastel shades .
BRAND STORY
Klix ‘Even corporates are entering the mid segment’ Ankur Gadia, Director Denim Market
There are two sets of denim consumers. First, those who have shifted from non brands to a brand; second, those who have made a shift from basic to fashion denim. Since the life span of fashion products is short they look for products which are not expensive. These are the clients who prefer to wear mid segment brands. The Indian consumer is a value seeking one and many of them prefer mid segment denim brands. Consumers for mid segment brands are young middle class who are either looking at fashion or quality. Tier II and III cities are big markets for mid segment brands. If you look at the overall denim market, the major chunk of business is being generated from mid segment players. Challenges from top end players are mostly in branding, popularity, advertising. In fact, now even corporates are entering the mid segment. The mid segment consumer is very aspirational. He is looking for innovation. So, there is a lot of scope in this market. Now even corporates are allowing staff to wear denim. Youngsters are almost totally into denims. Hence, there is tremendous opportunity.
The Brand
We launched Klix in 2003. We make men’s denims and casual cotton trousers. We have two collections a year. The age group is as wide as 15 to 60 years. But the focus group is 25 to 40 years. We are growing at 30 per cent a year. Eventually we will have an entire wardrobe for men and then enter women’s segment.
Mexico ‘We went into denim because we saw a great future here’ Dinesh P Agarwal, Director Denim market
The problem with organised market is the prices. Brands normally begin at Rs 1,500, they have to bear overheads like store and advertising expenses. So they have to begin at a higher level. While unorganized rates are much lower. Organised brands have captured different sections of the market. While unorganised players have no such demarcation. They appeal to a huge swathe of the market. In the last 15 years, very few unbranded players have become national level brands. Unbranded consumers are price conscious. But consumers are becoming quality conscious. They don’t look at the price. Regional players cater to specific tastes in a territory. So they make the necessary products and flourish. For instance colors that sell in the south don’t sell in the north. Even international brands come to India and make products for territories. We are not in competition with unorganized players as we operate in different markets. Our brand works with established stores. Unorganised players work at the low end of the market. We work on different price and quality parameters. We sell on MRPs. The main attraction of unorganised players is the price. I don’t think they operate at prices above Rs 500.
The Brand
Mexico opened in 2004. That was when basic was ruling the market and fashion was just entering. Jeans were doing mainly in blue with a bit of black. There were just two fits, comfort and straight. Then fashion changed, fits changed, fabrics changed, washes changed. Trends in denim are changing rapidly. We went into denim because we saw a great future here. Earlier denim was worn by youngsters. Now everyone wears denim. It lends itself to rough use and is low maintenance. Our fashion audience is 20 to 35 years. In basics, our target is 25 to 45. We are 60 per cent fashion and 40 per cent basic. 100 DFU’s DESIRE DENIMS & CASUALS
BRAND STORY
Mojave ‘The brand focuses on offering international washes’ Neeraj Goyal, Director Denim market
The mid segment in denim is strong because it’s innovative. In terms of prices, it’s economical as compared to the premium segment. The number of options, the variety of fabrics and styles and detailing are bigger. One can cater to a variety of tastes. This is the reason this segment is doing well. The segment caters more to the middle and the upper middle class. The quality hardly differs from premium brands. In fact, quality may be better because premium brands believe in outsourcing and in outsourcing there’s a chance of things going wrong. But in the mid segment it’s possible to keep a close check on quality. Another thing is that premium brands sell through EBOs. Mid segment brands sell through MBOs. This is tougher because you have to be really up to the mark. The mid segment also has a huge target audience. Super and super premium brands have a limited clientele. Not many can afford to wear that kind of a garment.
The Brand
The brand focuses on offering international washes and has the same quality as a super premium product. The price range is Rs 1,295 to Rs 1,895. There is a demand for new kind of fabrics, different washes, dobbies, structures, weaves. Earlier the fabrics were simple. There are more than 500 MBOs and the brand is online where it wants to expand. Mojave is planning trousers, T-shirts, shorts and shirts. The brand grows 20 to 25 per cent every season. This year growth was 32 per cent.
No Error Jeans ‘Our USP lies in variety, innovation and pricing’ Naresh N Varwani, Director Denim market
One reason for the growth of the unorganised sector is the MRPs. Brands have limited varieties unlike unorganised sector. Indian women are not very brand conscious. My brand is in the mid segment. Our USP lies in variety, innovation and pricing. In women’s denim, there have been quite a few conversions from unbranded to branded. Most consumers of brands are in metros. But elsewhere, it’s unbranded that sells. Regional players are strong in their territory. They understand local tastes and preferences. We aspire to be like multinational brands. In fact, such brands have lowered their MRPs to be in line with domestic brands. The main attraction of unorganized players is their price. Brands are more concerned about fits. This is especially true of women’s wear. The unorganized focuses more on fashion. And that’s its plus point.
The Brand
The brand opened seven years back. Before that we were in wholesale. We got into this because there isn’t much competition in women’s denim. If you give enough designs, you will get good growth. We have denims, casual shirts, cotton trousers. We grow by 20 to 25 per cent a year.
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BRAND STORY
Nostrum ‘FDI will inspire us to be more creative’ Bhojraj Nawani, Managing Director Denim market
The denim category is growing as demand is increasing and so is production. Denim usage has increased which is a good sign for global and domestic players. Indian brands are not facing tough competition as of now. Competition helps us be more creative. Competition breathes life in business. Indian brands cater to the mid premium segment and international brands target the premium segment. So the fight is not so tough. While global brands are mostly in metros, the real Indian market is in small towns and Tier II and III cities, which don’t see many big brands. This helps domestic players. Labor and raw materials costs have affected pricing of denim fabrics. But the price points have changed drastically. Brand consciousness has changed the market. Youngsters are aware of brands. Even middle aged persons are showing interest in wearing denim.
The Brand
Nostrum was launched in 2005. We cater to men’s denim wear. It focuses more on designs and comfort level of consumers. We are very strong in central India and are coming up with our 24th EBO soon.
Poison ‘The USP of mid segment brands is the fancy elements they add’ Yash Vadera, Director Denim market
The mid segment gives a lot of value addition. This segment wants to excel and compete with big brands and have to match up. The target audience for the mid segment is mainly young, college-going crowd and those who are not very brand conscious. It’s for those who want designer stuff and the right fit according to their comfort zone. In fact, even some people between 40 and 50 are open to fashion and want faded jeans. This destroys the notion that middle aged people want only basic. The USP of mid segment brands is the fancy elements they add. For instance, we give monograms and with every fashion denim we give a free belt in various colors. To command brand loyalty, you need to give something new all the time. You can give a regular product but have to keep innovating. Fashion dominates the mid segment. But in the south it’s basic that dominates. And it’s because of the price. If you give them a reasonable price they will promote your brand at the counter. The main point in our favor is that youngsters don’t want to spend on high priced denim when they get good mid segment denim. But there are many brands in the mid segment. And as competition increases, price is going to fall. Still, for mid segment brands, brand building is an issue rather than price. There aren’t many mid segment brands at the national level. There is an inflow of foreign brands which people are mad about. For brands like us, retail channels are MBOs.
The Brand
We are only into denims. The brand is into basic and high fashion jeans. Basics do well in the south. High fashion is Rs 1,700 to Rs 2,000. For the new season, we have a new product in basics. We continuously develop new colors in basics. These are mainly warp dyed colors. We have used new materials in fashion denim. We will have shirts, trousers soon. We are in 600 to 700 MBOs. In every state, we have a distributor and are in discussion with e-commerce portals. In the near future, we will be selling online. We are targeting a 20 per cent growth in turnover this financial year. 104 DFU’s DESIRE DENIMS & CASUALS
TEXAS The Brand Detail Clothing Limited as in Texas was launched in in 1993. It offers a complete range of Denims, Casual Shirts, Trousers and Cargo Shorts. The brand is available in 18 states with 800 + MBO’s of our country. By March 2015 the brand aims to reach out to another 200 point of sale. Its strongest markets are Andhra, Maharashtra and Rajasthan. The brand is aiming for a 10 -15 % growth this year vis –a – vis last year.
The Collection Texas as per their product portfolio in Denims has to offer Denims with khaki color, royal blue, dark blue and all the basic blues of denims in variation. The price point is in between Rs.995 – 1795/- . Their Casual Shirts comprises of basic and fancy patterns and styling which comes in small prints, solid colors, a lot of new colors in stripes and checks, these are priced between Rs.995 – Rs.1395/-. Trousers come in colors as in stone, beige, gold, blue ,black, olive and grey. Though the basic colors sell more. The trousers are priced between Rs.1095 – Rs.1495/-. The Cargo Shorts are with basics but sell more based on pocket designing. They are priced between Rs.895 – Rs. 1095.
Style Feature
BRAND STORY
Rettro ‘Fashion jeans are very difficult to make in the corporate sector’ Rahul Soneji, Director Denim market
Mid premium brands like us have an edge over the mass and premium segments. A mid premium denim brand is a fashion brand. And it caters to fashion conscious people. Metros are the biggest market for this segment players. Sales are put up by international brands every three months and they sell at our MRP. That’s a major threat to Indian mid segment players. We don’t have a concept of discount retailing in our business. Price plays a major role in mid premium brands. And we have to be on our toes in making fashion. Fashion jeans are very difficult to make in the corporate sector. Brands are by definition basic. Our aim is to make good fashion jeans. We try to make a product which has an edge in the market. We try to beat the competition by creating awareness of our brand.
The Brand
The brand launched in 2006 makes designer and fashion denim and trousers. We target the 16 to 45 years age group. In fits we have a slim straight and a slim narrow. We have low rise. In colors we have blue and black. In washes we have raw, enzyme and pumic washes.
Rick Rouge ‘The mid segment needs to control prices’ Manish Jain, Director Denim market
Sales of mid segment denim brands are growing. Two years back, Rs 900 - Rs 1,000 was considered mid segment. Now, anything below Rs 2,000 is the mid segment. In India, the mass is the middle class. And they go for the mid segment. Some people prefer the mid segment because they get more fashion than they do in brands. Those who want basic go for brands. Basic sells less in the mid segment. People want more of fashion. This is true of the entire country other than the south. In the south, consumers in mid segment of Tier II and III want basic. In metros, there’s a client base which goes for only brands. So Tier II and III are the biggest markets for mid segment brands. The mid segment is a very competitive market. Two years back this wasn’t so. Now every mid segment brand is doing well and is giving the latest innovations. Quality in the mid segment across the country is much better than quality in brands. The biggest challenge for a mid segment brand is to get entry into good counters. Another challenge is the price. The mid segment needs to control price. If prices go up even marginally, the consumer hesitates.
The Brand
Rick Rouge was launched in 2007 conjures up an image of a biker on a Harley Davidson. That’s why we chose that name. We are a mid segment brand in denim and cater to men with denims, shirts, cotton trousers. In denims we are not into loud fashion or very fashionable stuff. We are into subtle detailing with nice touches, nice embroidery as well as nice washes, which are meant for any age category. But our main age category is 16 to 35 years. 108 DFU’s DESIRE DENIMS & CASUALS
BRAND STORY
Scotlane Jeans ‘We keep giving new and creative fashion to our consumers’ Nirmal Jatia, General Manager Denim Market
Sales are good and the market size has grown well. The mid segment has a mix of consumers from various classes. Due to high prices on other products and inflation consumers now prefer to buy mid segment brands. The market is growing in Tier II, III cities. We face pressures of branding otherwise we don’t face any competition. Every brand has its own position. In the mid segment brands must concentrate on quality of the fabric, washes, finishing, accessories. This will help brands gain upper hand over competitors. We keep giving new and creative fashion to our consumers.
The Brand
We started business around 2000. We produce everything in-house. Apart from denims we have fourths and cargos. We have denims in fits like relaxed and comfort fit. Fourths are in both plains and checks. The target audience is typically 18 to 45 years of age. We supply across India and are growing by 20 to 30 per cent a year.
Texas ‘We have all sorts of fancy and basic washes’ Nirmal Tulsiyan, Director Denim Market
The main reason for the growth of the unorganised sector is government policy. Taxation on garments, excise duty, VAT, octroi, together amount to a difference of 15 to 20 per cent between the organised and unorganised sectors. So the unorganised sector gets a higher margin than the organised sector. I don’t think there is conversion happening from unbranded to brands. In the branded segment, there is a cost-price difference due to government duties. In fact, a number of brands may think of stripping off their labels and doing business. A lot of unbranded is bought off the pavement. Much of women’s and kids’ denim is unbranded. Much of men’s denim is branded. But even here, 70 per cent is unbranded. Buyers of the unbranded segment are price sensitive. Regional players have markets according to seasons. They face a bigger threat of being evicted from the market while national players have staying power. But national players have higher overheads. So, regional players have a better cost viability in their areas of operation.
The Brand
My brand is in the mid segment and we cater to men. The target consumer is aged 20 to 40 years. We make cotton trousers, cotton shirts, denims. Our denims are pencil and narrow fit. Fancy denims have whiskers, scrapings, and sprays. We have all sorts of fancy and basic washes. We are growing by 30 to 40 per cent a year.
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BRAND STORY
Twills ‘We have more colours in linens’ G S Naveen, Director The Brand
Twills is a 10-year-old brand and it makes men’s casuals -- shirts, semi formal shirts, denims and trousers. “We are selling 70 per cent cottons and 30 per cent denims,” says Naveen. Shirts are Rs 999 to Rs 1,299 and trousers are Rs 999 to Rs 1,599.
New Collections
For the upcoming season Twills has more colours in linens. Trousers have fresh colors.
Retail Strategy
Twills is present all across India in EBOs, MBOs and large formats. “We have 65 EBOs and 2000 MBOs,” says Naveen. “We are in Reliance Trends, Brand Factory, Central. Earlier we were present only in south India. Now, we are expanding pan India.”
UFO (Under Fourteen Only) ‘We offer international looks keeping the Indian consumer in mind’ Abhishek Agarwal, Director Kids’ denim market
We believe denim has a big market in India. Bottoms, on the whole, is an unexplored market in the kids’ segment. The future is very promising. Metros are a bigger market for kids’ denim but the small cities are not too far behind. Leading denim makers may be focused and do not want to enter this segment unless substantial data about the demand is available.
The Brand
UFO provides a complete wardrobe solutions in casual wear for boys and girls 2 to 14 years. We give international looks keeping the Indian consumer in mind. We understand that the choice of a two year old is different from that of a 14-year-old. Hence, we make a unique range for 2 to 9 years and separate designs for 10 to 14 years. We have T-shirts, woven tops for girls and striped and chequered shirts for boys. Other than this we do polos for boys and girls, and some dresses for girls. We have a huge selection of denims with different washes for both boys and girls. Also, we make pants, cargo pants, shorts and skirts. We use bright colors, whether it is in checks shirts or printed dresses. We only use 100 per cent cotton fabrics. We play with different techniques of value addition. In denims it could come in the form of washes or it could simply be utmost stitch detailing on cargos.
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BRAND STORY
Vitamins ‘Children’s denim has a market in both metros and small cities’ Ojas Nishar, Director Kids’ denim
Children’s denim has a big market in India. But it turns on fashion like colored denim. But denim manufacturing is a little difficult. It’s a long process. It takes 45 to 60 days to complete the whole cycle, cutting, stitching, finishing and washing. That’s why the children’s wear industry doesn’t take up denim. Product line of those who are focused on their brand will keep moving ahead. Junior wear is growing annually. Children’s denim has a market in both metros and small cities. But Tier II cities are more into denim since it’s a day to day item. And metros are more fashion oriented. Since denim is more daily wear, it’s preferred in Tier II cities. International denim brands haven’t yet gone into this segment in India because things are evolving in terms of brand loyalty and people spending money on children’s clothes. In about five years, things will fall in place.
The Brand
Sangam Dresses began in the early ’60s as a girls’ wear brand with the purpose of bedecking girls with apparels, dresses and frocks. At that time we were into party frocks. Then we went into western clothing for girls. In year 2000, we thought of having a brand name and hit upon Vitamins. Since 2004 the brand’s doing very well. We began with T-shirts, pants, skirts, shorts, dungarees. But for the last four years we have been a totally casual wear brand for girls. A couple of years back we launched accessories.
Wert Jeans ‘Consumers are shifting from unbranded to brands’ Sabu Joseph, Director Denim market
The growth of unorganized denim market has been possible because of the price factor. Players in the unorganized segment offer denims at prices which are lower than those of branded denims. This is possible because they use sub-standard material right from fabrics to accessories and also due to infringement of rules and regulations. Once somebody tries a branded denim they understand the quality inputs and from then on always stick to a brand. Consumers are already shifting from unbranded to brands in a big way. But nevertheless there will always be some proportion of unbranded players in the market. In unbranded products, basic dominates but the market for fashion is evolving. To tackle competition from unorganized players, organized players should give more value and variety. It’s true regional players give quality inputs but buyers will definitely prefer a national brand over a local one.
The Brand
We opened in 2009. Our target audience is 18 to 35 years old for fashion denims and 35 to 55 for basics. We are launching denims for women and cotton trousers for men and women. We are in Andhra Pradesh, Gujarat, Maharashtra, Delhi, Uttar Pradesh and Kolkata. We are aiming to be a Rs 50 crores brand by 2016.
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BRAND STORY
Yellow Jeans ‘Whoever wears Yellow Jeans will fall in love’ Anand Jain, Partner Denim market
People, corporates and small time entrepreneurs wear denim to workplaces. Denim is no more a mechanical product, it has become a fashion product. Multiple developments have taken place in the fabric and garment stage. Denims can be worn as formals, casuals, wedding wear. Earlier denim was non stretch. It was 100 per cent stiff cotton. But now stretch has come in. It has become comfortable. Cotton or formal wear restricts you. They can only be used as formal wear or office wear. Now, consumers want garments with multi uses. And denim is low maintenance. You needn’t wash often. The more it’s crumpled, the better it looks. Denim mills in India have increased production four or five fold compared to four to five years back. Denims have captured more than 50 per cent of the market.
The Brand
The brand is one and a half years old. My younger brother Kapil is a fashion designer. He was head designer for Forever 21. He has worked with Globus, Rocky S, Remanika and the brain behind Yellow Jeans. We started this venture three years back. Initially, we wanted to know about the industry and the product. When things settled, we started our own brand. My brand name has instant recall. Yellow gives a positive aura. It’s a striking name. We read about yellow theme and yellow color. That’s why we chose the name. The tag line is ‘It’s True Love’. Whoever wears Yellow Jeans will fall in love. We make men’s denims for people in the age group of is 18 to 40 years. We are into 100 per cent cotton stretch. The price is between Rs 1,399 to Rs 2,900. We cater to the middle and upper middle class. Mass consumption comes in the Rs 900 to Rs 1,200 range. We have the Yellow By Kapil range. This is a premium product. It’s something no homegrown brand is doing in India. Our distribution partners were bowled over on seeing it. They had never seen such washes in Indian brands. In the YBK range we focus on washes. We have washes no Indian brand has. This is between Rs 2,200 to Rs 2, 800.
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Shree Chamunda Enterprises Gala No. A1, Above Above Shree Raje Powder Coating, Chhatrapati Shivaji Nagar, Asalpha Village, Ghatkopar Andheri Link Road, Ghatkopar (West), Mumbai 400084 Tel: 022 32233299 Mob: Deepak Gandhi - 9324088173
FLACON The Brand Om Clothing Company started its brand FLACON in 2007. Flacon product portfolio is very specific on Womens Denims . This brand caters to an age group of 15 – 60 years of women. Presently they sell out of 300 MBO’s and targeting to add another 20 -30 by the end of this financial year. They have their own production facility with a capacity of 10000 -15000 pieces per month. Presently available in 5 states as Gujrat, Maharashtra , Tamil Nadu,Uttar Pradesh and Uttrakhand hoping to add Himachal and Punjab in their map of business by this year end. This brand also exports to Dubai. This brand is aiming to grow by atleast 30% when compared to last year. The Collection With winter coming in this brand comes in a variety of colors to choose from as in light blue, dark blue, black, green, brown, pastel colors, off white, white et all. Affordably priced between Rs. 695/- Rs.1499/- .This brands sells more with 5 pockets and washes rather than the colors.
Style Feature
Denim trends
go much beyond shades of blue Denim has become a wardrobe staple among ubercool Indian men and Women. This has prompted domestic and global brands to create special collections to cater to the rising demand for fashion. Trends are being adapted to Indian tastes writes P Tahmankar
nterestingly denims are no more considered a casual or daily wear. Simply styled denim in solid colours paired with a semi-formal shirt is now worn in corporate offices as Friday Dressing. Today’s young generation is also flaunting it at functions and parties matching it with a trendy jacket. Meanwhile small towns are showing interest in fashion denims having thread work and embellishments.
• A wardrobe staple among men and women in cities • Simply styled denim in solid colours for office wear • Colors and shades popular among younger genearion • Washes intensity and variety varies from category to category • Women prefer cleaner, darker washes • Men’s mean have heavy washes in basic colors • Stretch popular among women • Brands scale up style quotient with lapels, zippers, embellishments
Constant innovation - A key to success
From ‘workwear’ to ‘mustwear’, brands are continuously trying to innovate to offer something new in fashion. “Use of tears is common. Washes are becoming strong and because people in India are wearing denims to offices, there is a demand for premium clean denim. The fabrics are premium but the wash is clean. A 35- to 120 DFU’s DESIRE DENIMS & CASUALS
38-year-old man can wear denim to office with a jacket over it. These are two very strong trends. Brands that can capture this will get new markets,” opines Kavindra Mishra, CEO of Pepe Jeans. Brands like Killer, a popular home grown label is all set to redefine product development and marketing strategy for itself. Currently, the brand claims to hold about 20 per cent market share in the men’s
Kavindra Mishra,
CEO, Pepe Jeans “Use of tears is common. Washes are becoming strong and because people in India are wearing denims to offices, there is a demand for premium clean denim. The fabrics are premium but the wash is clean. A 35- to 38-year-old man can wear denim to office with a jacket over it. These are two very strong trends. Brands that can capture this will get new markets.”
premium denim segment in India. Killer has introduced a unique and pioneering collection: water saver jeans. This range of jeans has a distinct green fold depicting the eco-friendly product made by consuming 80 per cent less water. “A denim brand has to be socially responsible as well. We are trying to incorporate green initiatives through our collection. From the dye to the final tie, denim products consume gallons of water. The blue denim with the ‘right’ wash, the ‘super’ cool feel is now going ‘green’. Technology and techniques world around are helping denim manufacturers reduces the environmental impact of the manufacturing process. Produce more with less water. KKCL consciously is doing its duty in preserving the precious natural resources,” explains Ameet Panchal, Business Head, Killer jeans.
Hemant Jain
Director, Killer “We are trying to incorporate green initiatives through our collection. From the dye to the final tie, denim products consume gallons of water. The blue denim with the ‘right’ wash, the ‘super’ cool feel is now going ‘green’. Technology and techniques world around are helping denim manufacturers reduces the environmental impact of the manufacturing process. Produce more with less water.”
Focus on R&D development to be different
In its bid to offer differential products, the brands are emphasizing on research and
Interestingly, KKCL has translated the need to protect the environment into a feel-good factor for customers by offering a chance to be associated with the cause. A concern for the environment pervades our operations at KKCL. “Our aim to protect the environment takes shape through our novel idea to offer customers an environment-friendly product - KKCL’s very own ‘Water Saver Jeans’. Killer’s Water Saver Jeans represents our high technological prowess. The jeans uses reduced chemical during manufacture. Hence, the manufacturing process requires significantly less water,” says Panchal. 121 DFU’s DESIRE DENIMS & CASUALS
Amitabh Suri,
CEO of Indian Terrain “Indian Terrain plans to relaunch Indian Terrain Vintage Denims this winter. The three themes for the Autumn/Winter 2014 collection are Ivy Diaries, Reclaimed and Instagramed.”
development in the product range. “The scenario has become tough for Indian brands as they have to keep up to the competition faced from international brands. They have to innovate according to current trends and at the same time look into keeping the prices within affordable ranges of the domestic market. They have to match the global brands with their in house R&D,” says Aayush Rungta, Hoffmen Fashions. Brands are also planning exclusive collection for different seasons. “Indian Terrain plans to re-launch Indian Terrain Vintage Denims this winter. The
three themes for the Autumn/Winter 2014 collection are Ivy Diaries, Reclaimed and Instagramed,” opines Amitabh Suri, CEO of Indian Terrain. Interestingly, besides the usual indigo there has been infusion of various shades denim. The younger generation has taken to colored denim in a big way, “Earlier denim was blue and black. Now there are multiple shades in indigo. There are multiple washes. Different shades provide different options to people in their wardrobe. Earlier they had five to six denims only in blue tones. Now they have shade variations,” asserts Anand Jain, Partner in Yellow Jeans.
Men seem to go for the sober denim in basic colours as well as the distressed grunge look doing just as well. Manufacturers s o m e t i m e s incorporate mild and subtle whiskering in their washes although crushed and permanent wrinkles or heavy whiskering is out. In the women’s jeans segment while basic colours such as ice blue, tint blue, stone wash, black and white remain the staple diet, coloured washes and over dyed denims are also considered happening. Dark colours such as carbon blue, cola brown, deep grey, bottle green, wine and magenta and lighter shades such as grey, aquamarines, fawn and light chocolate are also flying off the racks. Pop colours and some winter specials like burgundy and ochre are very popular with younger women, especially in the metros. The intensity and variety of washes differ with every super premium, 122 DFU’s DESIRE DENIMS & CASUALS
premium and mid level category brand having its own signature style with different colour washes. Washes can vary with either on the whole jeans or just on the thighs, hips and the back. Whereas woman currently prefer a cleaner look with a lot more fresher and darker washes, in men’s jeans, heavy washes in basic colours and trendy fashion washes are selling well, although the overdyed and muddy vintage washes have held sway for a while now without going out of demand. Meanwhile from the super-premium to the economy, brands are playing more with detailing like lapels, zippers, patchwork, buttons and other embellishments, but in a more understated way.
Colour infusion gives casual more appeal
While denims still enjoy more popularity, but casual trousers are slowly making a comeback. Its acceptance as all time wear has given a flip to the segment. Manufacturers and brands are innovating with colours and fits to attract more buyers. Finds Team DFU n a society that is rapidly becoming fashionable and focused on dressing right, a large number of Indian men are still figuring out the line between casual, formal and evening wear. However, the bend is more towards casual dressing these days. The concept of casual trousers as office or leisure wear seems to have caught on in the Indian urban milieu.If constructed a little formally they can be worn to office can be a comfortable wear for casual occasions and also makes for a fashion statement with contemporary styles and fit. The casual trouser segment makes up around 20 to 25 percent of the casual wear sector, while denim still remains more in demand both in metros and non-metros. As Hitesh Dave, Director, Activitie laborates, “The casual trouser market looks good. It’s better than what it was in the last few years. Khakis will make a comeback but then colour variations are needed. Casual trousers too come in a variety of colours. Cotton was slow in the last two or three years, but this year will be good. Seeing the demand, I think the casual trouser market will grow by 40 to 50 percent.”
Casual & Denim Mutually exclusive segments
Casual trousers have a broader definition compared to denim. While denim can be easily classified under one umbrella and therefore be seen as a large volume business but there are a plethora of options and colours in casual trousers with various weaves, styles, fits, silhouettes, finish options which, if classified together, will command a larger volume than denim. Denim has been around for quite some time however, cotton has come into the picture over the last few years. While denim has an established market that perhaps explains its growth rate, which is higher than that of cotton trousers. However, experts feel gradually the market share will be equal. Denim is going strong but casual cotton trousers is preferred apart from corporate wear where formals are preferred. “Casual trouser and denim sales are linked. When one goes up, the other goes down. Right now, the problem with casual trouser
• The casual trouser makes up around 20-25 percent of casual wear sector • Denim remains more in demand • Casual trouser market growing at 40 to 50 per cent. • Variety of colours has given a boost to segment • Khakis expected to comeback but colour variations are needed • Casual trousers come with enhanced performance features • Casual and denim are mutually exclusive segments production is fabric costs, availability and labour,” says Dave. Casual trousers are mainly about fabric variations and colour. Although casual wear is now being accepted as an all time wear, the target group of denim wear is wider in comparison. Hence, the market size bigger. “We believe that growth of casual wear does not depend on denim as the functional attributes of both are close but distinctive. Denim is more about rough and tough use. It’s seen as a cult wear while casual wear became popular as mainly occasion wear, it is also accepted as a semi formal wear. 123 DFU’s DESIRE DENIMS & CASUALS
Thus, casual and denim wear are mutually exclusive segments,” says Gaurav Poddar, Director, Oxemberg. Denim has a much wider audience and mass appeal, from metros to Tier III cities while khakis in its current avatar is only relevant to metros and Tier 1 cities. “The new khaki revolution, if I may call it, is staged on the back of the denim lifestyle. Hence it will also grow at the expense of denim sales, if a fashion customer was likely to buy 2-3 denims a season will probably end up buying 1 denim and 2 khakis. At the workplace khakis will start substituting
Amitabh Suri,
Senior Vice President, Indian Terrain “The new khaki revolution, if I may call it, is staged on the back of the denim lifestyle. Hence it will also grow at the expense of denim sales, if a fashion customer was likely to buy 2-3 denims a season will probably end up buying 1 denim and 2 khakis. At the workplace khakis will start substituting the formal cut pants, as they are now being viewed as trendy office wear in slimmer silhouettes.” the formal cut pants, as they are now being viewed as trendy office wear in slimmer silhouettes,” explains Amitabh Suri, Senior Vice President, Indian Terrain. Khakis are indeed enjoying a new lease of life and the demand of casual trousers, according to some, is linked to denim wear. Casual trouser customers are for the 25 to 45 age group. It enjoys a unique market share and makes a very unique fashion statement too. In the bottom wear market they are equal players and are worn for altogether different occasions. “People don’t want high or street fashion when it comes to trousers. They don’t like the casual touch in trousers except for washes. Customers want neat styles and designs in different fabrics. Khakis have made
Usha Periasamy,
VP Operations and Brand Head, Classic Polo “People don’t want high or street fashion when it comes to trousers. They don’t like the casual touch in trousers except for washes. Customer’s want neat styles and designs in different fabrics. Khakis have made a comeback. Casual trousers are growing at a faster rate than formal trousers.” a comeback. Casual trousers are growing at a faster rate than formal trousers,” explains Usha Periasamy, VP Operations and Brand Head, Classic Polo. On the other hand, denim is becoming a seven-day product for all age groups. It’s no more considered merely casual wear as it’s spread to the office. Denim is considered an extension of one’s mindset.
Casuals a competitive segment
About a decade ago, the market dynamics of casual wear category was focused on need based clothing whereas now it focuses on occasion specific dressing catering to all consumer segments from bottom to the top of the pyramid. Differentiating on the functional and technical aspects, detailing, fits, fabrics, washes and colours, majority of the brands are competing for the wardrobe space in this category. Periasamy feels, “Competition in casual
Gaurav Poddar,
Director, Oxemberg “We believe that growth of casual wear does not depend on denim as the functional attributes of both are close but distinctive. Denim is more about rough and tough use. It’s seen as a cult wear while casual wear became popular as mainly occasion wear. It is also accepted as a semi formal wear. Thus casual and denim wear are mutually exclusive segments.” trousers is very limited. There are only a few aspects you can play around with. You need to give the best fabrics, the best hand wash, hand feel, neat styling and competitive prices. And in casual trousers, it’s the fit that comes first. Consumers select the brand that fits them the best.”An increase in demand for comfort and acceptance of casual clothing at workspace are further responsible for the growth of this segment in cities. The casual trouser market is extremely competitive on three areas: fit, fabric and design. As Amitabh Suri, Senior Vice President, Indian Terrain says, “Competition can now be expected from denim brands who will tweak their portfolio to fit in casual trousers.” Elaborating on the competition, Sujatha R Nandan, Chief Brand Manager, Scullers goes on to add, “Khakis/chinos have more or less an equal share in the market, the other category of casual trousers are cargo pants which enjoy a negligible share in the casual trouser market because they can be sported for only specific occasions.”
Colours add glamour to casual trousers
Casual trousers in unconventional colours and slim silhouettesare the emerging trends in this fast growing segment. Colors are the flavour both and flat front trousers with or without the front crease are selling fast. Slim fits, twills and surface finishes are some of the other trends being observed in casual trousers. Clean look in with fabric variations and minor touch-ups. In the international market, basic items are more in demand. There are a lot of fabric variations and attention is given to counts and the proportion of cotton etc. These elements are missing in the domestic market. 124 DFU’s DESIRE DENIMS & CASUALS
Sandeep Jain,
Executive Director, Monte Carlo “Flat front, narrow fit and soft feel of the fabric is in fashion. Flat front/cross pocket covers almost 60 per cent of the market of casual trousers.” Flat front trousers are doing well while cargos are not much in demand. In casual trousers, black tones like rust, sky blue, royal blue and maroon are popular. Some feminine colours have been added into men’s wear. Narrow fit, plain fabrics and cotton with a strong Lycra/Spandex base are also in vogue. As Suri points out, “Denim has been a major source of inspiration for the new breed of casual trousers. Khakis are back in slimmer fits, coloured chinos are a rage, washes are more vintage in markets abroad and in India.” On a similar note, Sandeep Jain, Executive Director, Monte Carlo says, “Flat front, narrow fit and soft feel of the fabric is in
Sujatha R Nandan,
Chief Brand Manager, Scullers “Khakis/chinos have more or less an equal share in the market, the other category of casual trousers are cargo pants which enjoy a negligible share in the casual trouser market because they can be sported for only specific occasions.” fashion. Flat front/cross pocket covers almost 60 per cent of the market of casual trousers.” International market has coloured chinos as the latest trend and India is not far behind. “The market is full of colours, which men would have never imagined wearing in trousers earlier. Red, ochre, electric blue, bottle green are just to name a few. Slim silhouettes, fashion colours, washed soft fabric are here to stay,” adds Nandan. While Periasamy points out most of the market has moved towards mid and low waist. Casual trousers are generally flat front. Pleated is restricted to a few markets. “Cargos are around but not much. We have cargos in not
Hitesh Dave,
Director, Activiti “The casual trouser market looks good. It’s better than what it was in the last few years. Khakis will make a comeback but then colour variations are needed. Casual trousers too come in a variety of colours. Cotton was slow in the last two or three years, but this year will be good. Seeing the demand, I think the casual trouser market will grow by 40 to 50 per cent.” more than seven styles. There are a lot of regional and local players in cargos. But no brand does more than 5 percent of cargos.” The comfort of a cotton chino is way different from that of coloured denim. The trend of over-dyed jeans will revive growth in cotton casuals, say experts. “This is actually what is happening with khakis today,” says Suri. With over-dyed light weight cotton casuals catching up, one cannot foresee over-dyed denims helping the cotton casual market but denims in whatever form would remain evergreen in fashion. Casual trousers also come with enhanced performance features like wrinkle-free/ resistant, stain resistant and water repellent among others. Given today’s busy lifestyle these value additions prove to be an aid. “Moreover considering the functional aspect of these features, casual wear is also getting accepted as a semi formal and formal wear which would definitely lead to top line the growth. So products with functional and comfort attributes at smart prices will drive growth within this segment,” feels Poddar. While value addition in any manner boosts sale, however, Periasamy feels, “Performance features play a small role and they are only 15 to 20 per cent of a national brand’s collection. People are moving towards cotton. And if it’s more of cotton, wrinkling is bound to happen.” Suri sums up by saying, “Khakis are set to get more versatile. The range of khakis will increase thanks to new washes to give them a vintage look. Also new fits, cuts and tonalities will be added to the spectrum and this will boost sales.”
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Global Trendspotting Skinny denims are passé, new styles focus on relaxed look
After holding ground for almost two years, the trend of skinny jeans is finally giving way to new, relaxed denim styles. As per fashion industry experts, bluejeans makers, who have been constantly stocking their stores with jeans for skinny silhouette, are now busy creating the antiskinny jean styles. Shanna McKinnon, an adjunct professor at the Fashion Institute of Technology in New York and founder of DenimHunt denim blog recently shared her views at a seminar organized by Cotton Inc during Magic Market Week on this. She said that denim makers are now focusing on higher waistlines and styles like the Mom jean.
• Denim trends moving towards basics • New style allows a wearer to flaunt ‘do it yourself’ (DIY) looks • Huge demand for patches on the denim • Mills are working to develop stretchy materials.
Denims push a reverse gear to basics
Most global trend analysts feel that the new denim trends are moving towards basics. Reaching full circle, says Abigail Cook, Cotton Inc’s fashion trend forecaster/ denim specialist, there is a back-to-basics movement being seen in the denim world. The trend forecaster, who this year visited 126 DFU’s DESIRE DENIMS & CASUALS
several major music festivals, such as South by Southwest in Texas and the Coachella Valley Music and Arts Festival in California, in search of latest trends on the denim block followed by young music lovers found out that the denim lovers are following ‘Normcore’, going back to the days of Jerry Seinfeld wearing khakis, stone-washed jeans and a white T-shirt.
looks. TopShop for instance, is selling jeans that have huge rectangular holes cut out around the knees inspired from a hipster street style. Experts add that the exaggeration in denims is all part of the DIY movement that is becoming popular these days. Only difference is, instead of consumers doing it themselves, they expect the brands to create a look as if they were individually and artistically created. Diesel and G-Star Raw have been catering to the huge demand of creating patches on the denim. Shoppers feel that such patch-work adds personality to a pair of jeans. Shoppers can either add the patches on their own or pick a pair on which denim makers have figured out the way to use them. Defining what Normcore people mean, Cook says that they are the ones who do not follow labels but wear something that takes them as much back-to-basics as possible. And interestingly, the movement is seen more amid the premium-denim category, so blue-jeans manufacturers are offering more selvage-denim looks for women instead of just for men.
An anti-skinny movement
A stark contrast to the skinny jean look is a denim pant with a fuller hip, ample space at thigh or a bottom with more room around the ankles or calf. These types of styles are gaining momentum since they match well with trendy cropped tops. McKinnon says that the style allows a wearer to flaunt DIY or do it yourself looks and it is a lot more refined than the boyfriend jean.
Another trend gaining momentum in today’s denim fashion is the sports jean. With fitness consciousness rising among people, a jean that can double as a jog pant or sweat pant in 98 per cent cotton but lighter ounce, knit-type denim that has a soft feel are also in demand. For example, sighting consumer interest in sports denim,
Italian label Diesel introduced the ‘Jogg’ jean a few seasons ago. It is a jersey plus denim pant. Even several denim mills are putting in efforts to be innovative with the denims. They are working to develop more stretchy materials that can be part of a jean used for exercise or as lounge wear. Along with Mom Jean, denim jumpsuits, rompers and overalls too are entering the wardrobes once again. They were hot favourites among people back in the 1980s. The denim jumper, according to experts, is easy to dress up or dress down with just a pair of heels and big pieces of bold jewelry. And when it comes to wearing overalls, just throwing on a T-shirt and a pair of high heels can do wonders. G-Star Raw and Diesel were among the first to
introduce them followed by fast-fashion retailers such as H&M.
Denim’s DIY movement
Next in line are hyper-exaggerated distressing look with big patch-work or holes. Fashion experts feel that the more extreme the look, the more authentic it 127 DFU’s DESIRE DENIMS & CASUALS
Shapewear-like jeans is another trend, catching up in a big way. While some labels, such as Not Your Daughter’s Jeans, were first to catch up with the trend with their waist-slimming, tummy-tuck jeans launched in 2004, others too are realizing the need of the hour as demand increases. Recently, Atlanta-based Spanx, popularly known for its spandex biker short–like undergarments, announced its plans of launching shaping jeans in a straight and skinny fit. Those who believed that the skinny jeans that held us in such close grip over a decade would never go out of fashion, the new trends are definitely proving them wrong.
Yoga Pants,
‘Athleisure’ queer the pitch for denim Denim the eternal favourite of the youth globally has seen several changes and transformations of the years. Now, ‘yoga pants’ or ‘athleisure’ is giving tough competition to the iconic jeans. But will the new innovations really threat jeans, which has been a wardrobe staple for decades, remains to be seen, find out Team DFU hile trends keep churning with various styles becoming popular at various points of time from basic-stretch to basic, indigo/black, coloured, indigo, dark shades or even basic/boyfriend denim the list is long. However, with fit becoming an important factor for fitness conscious young generation, contemporary products like yoga pants are becoming a favourite over denim. As per studies by NPD Group, s market research firm while sales of the iconic blue jeans fell six per cent during the past year in the US after decades of almost steady growth, yoga pants and other ‘active wear’ showed a 7 per cent rise. People are showing a preference for yoga pants and leggings over traditional denim. The trend is mostly being driven by women. Sales of women’s jeans in the US fell 7 per cent during that period, while men’s jeans business was down 3 per cent. Experts say that the trend indicates lack of new designs after the brightly coloured skinny jeans became a wardrobe staple a couple years back. The reason could also be, denim makers are unveiling collections suiting the demand for atheleisure clothing instead of innovating to create a pair of denim that could fulfill the expectations of today’s generation seeking comfortable, casual yet perfectly fitting piece of clothing. For example, Levi Strauss, which invented the first pair of blue jeans 141 years ago, is among the jean makers that acknowledge their business has been hurt by the ‘athleisure’ trend. They created new versions of classic denim that is more ‘stretchy’ having comfort of sweatpants. Adriano Goldschmied, Diesel’s co-founder too had announced that he is working to promote a new stretch fabric that he claims will turn around the fortunes of the 50 billion dollars (Rs 3,09,200 crores) denim industry. Made from blending indigo, nylon and polyester, ‘active denim’, he says is wooing large players including G-Star and Diesel. Fashion industry veterans see the new trend catching up fast and the latest decline in denim sales could be the longest. As a result, retailers and designers too are focusing more on activewear and less on denim. For instance, J.C. Penney recently doubled its selections of casual athletic styles for the back-to-school season and scaled back growth of its denim
• Jeans face competition from yoga pants • Americas’ obsession with jeans could be wearing • Jeans sales fell 6 per cent last year • Shift partly due to a lack of new designs • More because of advent of athleisure • Companies like Levi Strauss give-in to the trend • J.C. Penney, Macy’s, Gap releasing comfort wear collections business. And both Levi’s and VF Corp, the maker of Wrangler and Lee jeans, are launching stretchier versions of denim. And many brands are also making jogger pants, a loose-fitting sweatpant style that has elastic cuffs at the bottom of the leg. With comfort becoming more important for consumers, retailers such as Macy’s, Foot Locker, Gap’s Old Navy and Under Armour are recording a rise in sales owing to more Americans wearing workout-style gear, the way they wore denim earlier, as a daily wear. Does this mean the new athleisure trend will 128 DFU’s DESIRE DENIMS & CASUALS
stagnate the denim industry? Of course not, since the category has faced many such surge in trends in recent years and emerged every time. A few years back chinos were racing ahead of denims, then coloured pants tookover followed by the jegging trend but the popularity of denim remained intact. Denim is a very broad category that is worn by most segments of population and across all genres, ages and nations. Now, players need to invest in R&D and innovation to match the qualities of comfort wear like yoga pants to maintain and increase the market share of this much loved piece of clothing.