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Contents VOL.18 No.1 2017 12 Brand Play Brands inching ahead with styles and price points 18 Trends Spotting 38 Trends & Style
Innovation, comfort and style drive the market
42 Women’s Knits
A strong market knotted with stiff competition
46 Kid’s Knit wear
Growing up fast as brand play rises
49 Active and lounge wear
Healthy lifestyles augur well for active wear makers
54 Organic Knits
Going green: Brands take the initiative to make a difference
58 Cover Story - Status Quo 62 Brand Leaders 93 Brand Story 94 Retailing
Knitwear makers balancing offline and online retail
97 Who’s who
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Dinesh Poojary Special Correspondent - Ajanta Ganguly
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12 BRAND PLAY ‘Brands inching ahead with styles and price points’ Indeed, brand play in T-shirt market is still small as unbranded players are able to lure away consumers with better pricing. However, brands have fought back with innovations, style and now even pricing. As New Age India warms up to brands, the tug of war continues for bigger market share, write Prerna Sharma and Ajay Goswami
T
he well-heeled and well-travelled New Age Indian consumer has exposure to latest global fashion trends. And with higher disposable incomes and their growing traction towards brands this has created a new wave of growth for branded apparel makers in India. In fact, brand awareness is comparatively higher in India than other developing nations. Indeed rural India is still far behind urban centres in terms of brand awareness yet, the conversion ratio from nonbrands to brands is rising due to increasing urbanisation, rise in per capita income of the middle class, spread of mass media, and the desire to wear labels. Together these have worked
Non brands still have larger hold of market New Age consumers have increased demand for brands Domestic brands to face two-way unorganized players and global brands
competition
from
Brands lose out due to price points to smaller players Brands responding to market with innovations and catering to indigenous tastes as a major growth driver for branded T-shirt segment.
search for exclusivity has worked in favour of national brands.”
Of course, it’s the unbranded small player who has a strong hold of the T-shirt segment. However, many brands have entered this space with their innovative lines, designs, colors. And, consumers these days prefer branded wear and don’t mind shelling out extra for a quality/premium T-shirt.
While the T-shirt market is one of the fastest growing men’s wear segments in India. It’s fragmented and dominated by unorganized trade. Indeed, brand play is increasing as more and more organized players as well as foreign entrants are focusing on this category. Experts say, branded players are segmenting the market well to grow and build their leadership in certain categories. Polos and Henleys have come out as two categories which are being made popular by organized players.
The branded T-shirt market has seen major traction over the decade and is consistently growing. Highlighting the reasons for brands not becoming successful in the T-shirt segment, Harkirat Singh, MD, Woodland, says, “The prime reason for brands lagging behind is that unbranded players have a good understanding of the psychology and local preferences. However, brands are not far behind. Increased connectivity, technology and research have helped brands to understand the need and psyche of locals. They have now learned to adjust their formats to suit local tastes and buying behaviour. Besides this, increasing brand consciousness and
BRANDS ASSERTING THEIR PRESENCE T-shirt is an attractive category and is popular across age groups. When it comes to fashion, knitwear has an edge over woven as it operates mostly in casual side of the business. With casual fashion or ‘Friday Dressing’ concept having entered boardrooms and young upwardly mobile executives pairing denim with T-shirts and a smart casual jacket for meetings, demand for
BRAND PLAY
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their metro counterparts in fashion which has led to a surge in demand of branded products in these cities and with growing demand, brands are penetrating deeper in these markets. Neha Shah-Head, Marketing, Pepe Jeans has a different take as she says, “The market is a cluttered as there are many brands, private labels, and online medium vying for customer attention. Quality, right pricing, and trendy items will be the major growth contributors in the long run.”
INNOVATIONS TO STAY RELEVANT AND ON TOP
Harkirat Singh, MD, Woodland
Top clothing companies, in order to keep their loyal customer base and attract more, are launching newer products in short span of time. The well informed and trendy Indian youth now seek stylish looks, design, colours fits when shopping for their favourite brand. So along with cotton tees the market is inundated with a variety of mixed and blended fabrics like polyester-cotton blended T-shirts, Lycra-based T-shirts etc, in various designs.
“The prime reason for brands lagging behind non is that unbranded players have a good understanding of the psychology and local preferences. However, brands are also not far behind. Increased connectivity, technology and research have helped brands to understand the need and psyche of locals. They have now learned to adjust their formats to suit local tastes and buying behaviour. Besides this, increasing brand consciousness and search for exclusivity among locals has worked in favour of national brands.”
fashionable knitwear is on the rise. This shift towards casualisation has provided a boost to the T-shirt segment. As Sanjay Davar, Managing Director, Bodycare Creations says, “About 70 per cent consumers are aware of brands and trends. Price plays a very important role in knitwear products. Customers look for discounts and offers. Many companies give large discounts like a flat discount, buy one, get one free etc.” The approximately Rs 12,200 crores-worth T-shirt market in India, is expected to grow at an impressive CAGR of 12 per cent and to touch Rs 21,250 crores by 2018. This market, which includes knit shirts, polo shirts, knit tops, etc, is presently dominated by the men’s segment, which contributes 85 per cent of the market share. The women’s segment, on the other hand, is expected to register a higher CAGR of 14 per cent over the next few years. The ratio of shirts versus T- shirt is 2.5. The higher market size of shirts is because of higher demand of stitched garments. The high demand for
“In future, demand for organic cotton-based T-shirts, and those made from recycled products, etc, is expected to pick up across cities. Such products are already in demand in many western countries,” explains Jain. So brands have introduced trendy lines for this season. Pepe Jeans for example has introduced athleisure. “Given our busy schedules, athleisure blurs the line between functional and causal, comfortable clothing. The true beauty of this trend is that it combines both the practical aspect as well
T-shirts will reduce the market ratio to 2.1 in the next five years from its present value of 2.5, believes Singh. According to Kuntal Raj Jain, Director, Duke, “The T-shirts category is one of the high-growth categories in men’s, women’s and kids’ apparel in India. Their greater level of comfort, superior feel, affordability and fashionableness makes T-shirts an attractive apparel category across consumer segments. T-shirts have graduated from being a uniform category to a multipurpose, multiuse, all-occasion apparel category across the India and the globe.” And as Singh points out, the branded segment is not restricted to the metros anymore. Tier II and III cities have now emerged as new growth centres for people from small towns do not want to stay behind
Neha Shah, Head – Marketing, Pepe Jeans “The market is a cluttered as there are many brands, private labels, and online medium vying for customer attention. Quality, right pricing, and trendy items will be the major growth contributors in the long run.”
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unique features incorporated in this highperformance fabric. Athleisure is currently available only in menswear and will soon be extended to women’s wear in the coming seasons,” says Shah.
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The collection sees a host of colours from basic blacks, whites, greys, navy blues to brighter shades of reds, blues and greens. The range consists of sweat pants, t-shirts and sleeveless tees.
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PRICE POINTS – A WORRY? Sanjay K Jain, Managing Director, T T Ltd, “The entry of global brands has affected the knits category at least in the premium segment. Consumers prefer buying foreign brands even if local brands offer better value for money. This advantage will stay as long as Indian brands’ standards of service, consistency and detailing don’t improve dramatically.” as wearability. More than a trend, athleisure marks the change in lifestyle, moving towards health consciousness, with relaxed and comfortable outfits. What makes this unique is that Pepe Jeans has incorporated technology to make this last all day long with these two
Brands face stiff competition from smaller unbranded players due to their price points. Branded T-shirts are high priced which is why they sell comparatively less in a price sensitive market like India. Moreover, established big brands also give tough competition to domestic brands due to their deep-rooted base of loyal customers. Shah feels it’s not about the price alone, it’s about the value always. “What is the price, what is the product that you are buying? It’s always dependent on the value of the product. For example, you will see value in products that are on the expensive and the cheap side depending on what one wants. Our pricing strategy is fundamentally based on the value we are offering to the consumers, the right product, the tees which are classic and also have a long shelf life,” she says. Jain offers an interesting perspective on the price war, “Premium and super premium T-shirts are emerging in India and Indian top brands are also doing high scale business in this category as today’s youth is smart and conscious about dressing and aware about brands. Increasing brand awareness among the Indian youth will drive penetration of T-shirt brands into smaller cities and rural
India, thus increasing the share of brands within the market.” Singh too says the Indian consumer is price conscious and this is one of the prime reasons why branded T-shirt market is facing growth issues. “But there
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16 BRAND PLAY Offering a global perspective Shah explains, “We are a global brand, a lot of inputs we put in our strategy come from our in-house designers who work closely with our global teams, so we are able to work on trends and keep up with fast moving culture. There are two parts when evaluating, one is global and the other is Indian; when it comes to identifying our Indian target group that is almost on par with global consumers. They are a lot more evolved with their shopping choices, they are very fashion conscious.”
Sanjay Davar, Managing Director “In India this sector contributes about 14 per cent to industrial production, four per cent to the GDP and 11 per cent to the country’s total export earnings, of which 45 per cent comes through the share of knitted garments. Over 95 per cent of the nation’s output of woolen and acrylic hosiery comes from Ludhiana. But in the absence of any recognizable brand, consumers mostly make their selection entirely based on the liking of styles, fits and range of prices. There is absolutely no assurance of product quality.” is a major chunk of young professionals for whom price is not an issue. They are moving towards the branded segment as they do not want to compromise on quality. We realised that pricing was a major factor inhibiting sales, so we replaced our earlier prices with more realistic prices in sync with buying capacity of our target audience, which is essentially the non-earning youth segment that is looking for stylish and value for money offerings,” observes Singh.
BRANDS BUSINESS PROSPECTS AHEAD For domestic brands besides contending with local players the entry of global brands has queered the pitch further. As Sanjay K Jain, Managing Director of TT Ltd puts it “The entry of global brands has affected the knits category at least in the premium segment. Consumers prefer buying foreign brands even if local brands offer better value for money. This advantage will stay as long as Indian brands’ standards of service, consistency and detailing don’t improve dramatically.”
Indeed, the knitwear industry all over the world is at the threshold of far-reaching changes. Removal of quantitative restrictions has thrown open both opportunities and threats, especially for lowincome economies seeking to industrialise through the garment sector. As Saxena says “In India this sector contributes about 14 per cent to industrial production, four per cent to the GDP and 11 per cent to the country’s total export earnings, of which 45 per cent comes through the share of knitted garments. Over 95 per cent of the nation’s output of woolen and acrylic hosiery comes from Ludhiana. But in the absence of any recognizable brand, consumers mostly make their selection entirely based on the liking of styles, fits and range of prices. There is absolutely no assurance of product quality.” Riding on the growth of omnichannel retailing, companies in India are all set to capture growth momentum and as Shah says, “Though the market is cluttered with many private labels as well as the online medium vying for customer attention, it’s quality, right pricing, and trendy items that will see us through towards attracting major customers.”
Kuntal Raj Jain, Director, Duke “The T-shirts category is one of the high-growth categories in men’s, women’s and kids’ apparel in India. Their greater level of comfort, superior feel, affordability and fashionableness makes T-shirts an attractive apparel category across consumer segments. T-shirts have graduated from being a uniform category to a multipurpose, multiuse, alloccasion apparel category across the India and the globe.”
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TREND ANALYSIS
TREND REPORT FOR A/W 17-18
Key points Natural Inspiration
The mother Earth, the vibrancy of sun set, texture of wood and purity of white and grey drawn from dawn to dusk, is the reason for inspirations for this season.
Sustainability
When we think of earth as a whole, we sense a feeling of belonging.‘Maximizing and not Misusing’ natural resources in a sustainable manner to create/ recreate textures and colours.
Color Palette
Complacency
Natural inspiration used in sustainable manner, relating it with comfort , looseness and belongingness…the new comfort is dragged to complacency
The colours for the season that reflect mood of the key trends are dusty pastels, shades of tans and grey, sunset orange and chocolate browns. Bright accents layered with core neutrals create bold and bright contrasts for the season .
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TRENDS Color Texture Silhouettes
Autumn / Winter 17-18
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AUBURN VIBES
Key trends Colors
Represents the color of earth, wood, stone, wholesomeness, reliability, elegance, warmth, and honesty, is a natural, neutral color that is typically associated with the seasons of fall and winter.
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AUBURN
JACKETS
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TREND ANALYSIS
AUBURN VIBES
Key trends Textures
TREND ANALYSIS
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AUBURN
SWEATERS
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TREND ANALYSIS
AUBURN VIBES
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AUBURN
ACTIVEWEAR
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TREND ANALYSIS
SANGUINE
Key trends Colors
The sanguine red represents power and courage, an intense color range that is packed with emotion ranging from passionate, intense. It is a hot, strong, stimulating color that represents excitement and energy.
TREND ANALYSIS
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SANGUINE
JACKETS
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TREND ANALYSIS
SANGUINE
Key trends Textures
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SANGUINE
SWEATERS
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TREND ANALYSIS
SANGUINE
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SANGUINE
ACTIVEWEAR
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TREND ANALYSIS
SUBTLE GREY
Key trends Colors
A range of timeless and practical color, dark, charcoal gray communicates some of the strength and mystery of black. It is a sophisticated color that lack the negativity of the color black.
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SUBTLE GREY
JACKETS
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TREND ANALYSIS
SUBTLE GREY
Key trends Textures
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SUBTLE GREY
SWEATERS
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TREND ANALYSIS
SUBTLE GREY
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SUBTLE GREY
ACTIVEWEAR
38 TREND & STYLES ‘Innovation, comfort & style drive the market’ Comfort, easy-care, affordability and simple designs have made T-shirts popular across age groups. And manufacturers are responding to demand with innovative sweat free, mix and match fabrics. Line illustrations, graphics and slogan tees are drawing young India, write Ajanta Ganguly and Ajay Goswami
A
s a predominantly young country with a median age of 27 years and where summers are long and winters short, the knitwear market in India, is indeed a lucrative one. With an inherent USP of comfort blended with style, the T shirt segment in the domestic knitwear markets is ruling roost. With wardrobes in India and across the world undergoing a distinct shift from formal to a more casual trendy attire, this segment is certainly growing compared to other textile categories.
T-shirt market is dominated by men’s and boys’ segments’, which contribute 85 per cent market share
T SHIRT SEGMENT BALANCES AGAINST ALL ODDS
Technology driven fabrics are also growing driven by innovation
The market for T-shirts is not really registering major growth as market is slow and on a recovery mode post de-monetisation. New policies are affecting the overall apparel market but slowly and steadily it is again settling down. Experts say India’s Rs 12,200 crores-worth T-shirt market is expected to grow at an impressive CAGR of 12 per cent to reach Rs 21,250 crores by 2018. The T-shirt market is dominated by men’s and boys’ segments, which contribute 85 per cent market share. The women’s and girls’ segments is also growing rapidly as there is an increased acceptance of western casual wear in in the semi urban cities across India. The women’s segment is expected to register a higher CAGR of 14 per cent over the next few years, with a portfolio that also includes knit shirts, Polos and tops alongside T shirts. Women are now wearing T-shirts not only with bottom wear like jeans and trousers but also with leggings that are
Comfort, easy-care, affordability and simple design make knitwear popular Fashion T-shirts with fancy fabrics and embellishments selling well Mercerized cotton and sweat free fabrics in demand
Line illustrations have become popular for some time Graphic and slogan tees popular among youth usually paired with kurtis, giving yet another twist to fusion wear.
INNOVATION SELLS BEST Comfort characteristics, easy-care properties, affordability and simple design options using stripes, checks and prints are the major driving forces propelling market. Fashion T-shirts using fancy fabrics and embellishments are also selling well. Materials that have more elasticity and stretch using Spandex and Modal as well as mix and match fabrics are popular in the fashion T shirt segment. The basic stripers and solid T-shirt with three necklines: round, V and polos sell well over the summer months.
“As a brand, we play a lot with fabrics and give different effects to the garment. We aim at creating effects which are unique in the market. Fancy yarns have been used for majority of products. This experimentation is happening on almost every category, especially sweat pants and T-shirts. Graphics have come into play across age groups,” says Anuj Jain, Brand Head, Neva, a leading domestic apparel manufacturer. “As far as fabrics are concerned, we do mercerized cotton as well as sweat free fabrics. We do 65 per cent basic and rest 35 is fashion. Designing element and fabrics bring the differentiation when it comes to fashion and
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basic t shirts. The product should be youth based in today times. Our research is always aimed at youth and based on that we come out with products. There is so much scope for innovation in knit segment. In knits we have functional fabrics as well as different yarns and combinations. Technology driven fabrics are also growing driven by innovation,’’ he adds.
Usha Periasamy, Head of Operations & Brand Classic Polo “While T-shirts with line illustrations have been around for some time, we have been receiving positive feedback and high demand for them ever since we integrated this unique design into our Classic Polo portfolio this season. It’s not difficult to see why line illustrations are becoming so popular, though. Line illustrations are often associated with modern elements and technology as they are employed by technological brands when it comes to design; and the meteoric rise of tech start-ups and new-age. Companies has provided timely relevance to this particular design language.’’
Many types of innovative fabrics are blended with knits to give it a good fit and cut. Tencel and Lycra are popular since they give a slim fit and suitable for the hot and humid Indian climate. Spandax is also used but is not so popular in the summer months. A few brands are experimenting with organic tees which is the current global trend although concern for the environment and society doesn’t come easily to Indians unlike the German or Scandinavian market. However, this category is slowly receiving positive feedback as the phase of educating consumers about organic products is nearly over and now it’s about expanding the market.
TREND ALERT: LINE ILLUSTRATIONS AND SLOGAN TEES Although the T-shirt market has been affected by demonetization, it is expected to pick up in the summer. It should register a comparatively higher growth than woven apparel market, not only due to seasonal reasons but also because of its ability to deliver high quality t-shirts at reasonable prices. Many kinds of design and styles in the fashion segment as well as the classic Tees in traditional solid colors are doing the rounds this summer. There is expected to be a higher demand for T-shirts with line illustrations as more and domestic smaller companies join the knitwear bandwagon. “While T-shirts with line illustrations have been around for some time, we have been receiving positive feedback and high demand for them ever since we integrated this unique design into our Classic Polo portfolio this season. It’s not difficult to see why line illustrations are becoming so popular, though. Line illustrations are often associated with modern elements and technology as they are employed by technological brands when it comes to design; and the meteoric rise of tech start-ups and new-age companies has provided timely relevance to this particular design language,’’ points out Usha Periasamy, Head of Operations & Brand of Classic Polo, a leading domestic knitwear manufacturer. And goes on to add T-shirts with slogans or statements are making appearances everywhere these days, from A-list stars to the runways of New York and Paris. “Much like tattoos, statement T-shirts can help people send a message without having to utter a word, which is why they are extremely popular around the world these
days, especially among politicians and celebrities,’’ she says. Slogan T shirts are not just popular with the young college crowd but also at mega charity and promotional events as it’s the best way to pass on a message. With the help of social media like Facebook, Instagram and Twitter, slogan T-shirts worn at events do better advertising than even a print ad campaign, leading to bulk orders for the smaller brands who get the contract for them.
Dinesh Harbhajanka, CEO, Unik Bazar “In Unik Bazar, a shortsleeved casual top that is made of cotton jersey knit fabric has the shape of the capital letter ‘T’ when spread out flat. This is a common description but does not tell the complete story. A T-shirt can be of various shapes, fabrics, and sizes. They can be loose fitting and boxy or tight so that they are snug to the body. T-shirts are made from 100 per cent mercerized cotton which is soft to touch and is long lasting.’’
40 TREND & STYLES knitwear for little girls and women across all age groups. “In Unik Bazar, a short-sleeved casual top that is made of cotton jersey knit fabric has the shape of the capital letter ‘T’ when spread out flat. This is a common description but does not tell the complete story. A T-shirt can be of various shapes, fabrics, and sizes. They can be loose fitting and boxy or tight so that they are snug to the body.
Anuj Jain, Brand Head, Neva “As a brand, we play a lot with fabrics and give different effects. We always aim at creating effects which are unique in the market. Fancy yarns have been used for majority of products. This experimentation is happening on almost every category, especially sweat pants and T shirts. Graphics of varied types have come into play across age groups.”
FABRIC AND COLOUR PLAY THIS SUMMER With brands focusing on each T-shirt portfolio as an unique collection, innovation in fabrics and design is on an all-time high. This season, manufacturers are using more interlock, cross knit fleece, jacquard, 100 per cent cotton, double mercerized, suede finished fabrics and melanges as fabric innovations in their collections. Apart from regular cotton and blends, many brands are using special value addition fibers such as 15 per cent Lycra and 15 per cent of Modal to give a slim fit, which is most popular. For regular fits, knits blended with cotton is used as it is comfortable and helps to absorb sweat The color palette for 2017 summer season is focused on being bright and cheerful. Peach is the seasonal color which will be omniscient in the new T-shirt collections of most global and domestic manufacturers. The color theme this season is black and white together, white, brown, blue, aqua green, yellow and indigo among others. Earthy shades are totally in right now. Vivid as nature in full-bloom and wonderful on every skin tone, there’s nothing that spells summer quite like green. Blue’s a classic colour all year round and so is white but all the more so when it’s hot outside, Fuchsia, strawberry or coral are the shades in pink doing the rounds and the most popular in
T-shirts are made from 100 per cent mercerized cotton which is soft to touch and is long lasting,’’ points out Dinesh Harbhajanka, CEO. Unik Bazar. He too reiterates graphic tees are trending now and while some style them simply with jeans and sneakers others aim to impress by pairing them with velvet suits, midi skirts, and even dresses. “Whichever way you choose to style yours, we are here to assure you that this is one trend guaranteed to stick around into the New Year, and that’s a trend worth investing in. We primarily operate in Tier II, III cities with the chain of Unik Bazar Retail departmental stores. ‘Zyada Choice..Kam Price’ is our main motto. We believe in providing latest trends at the best price,’’ he adds. In summer, knit fabrics usually sinker while Pekay fabrics is used at higher end. Then there are different kind of gauges in sinker fabrics which may vary according to GSM from region to region. Combo T-shirts are still in trend and cut and sew is also popular. In the T-shirt category is 40 per cent basic
and 60 per cent fashion while washing concept is also growing. Stripers are the core selling item for both men and women.
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42 WOMEN’S KNITS A strong market knotted with stiff competition Changing lifestyles have given a big boost to women’s knitwear segment in India. Domestic players are responding to demand however, they have to compete with cheap imports from mass producing Asian neighbours. The market promises to flourish despite odds, write Ajanta Ganguly and Ajay Goswami
K
nitwear has a lot going for it, if leveraged well. Sumer-light, versatile and affordable, its popularity in summer months keeps growing. Domestic brands that have added on-trend designs have captured the imagination of urban Indian woman. While constantly expanding on increasing requirements for comfort balanced with a need for a glamour quotient, the women’s knitwear industry has come a long way. The knitwear portfolio is strong in women’s segment because of its popularity among the youth as well as the more mature women, due to its versatile styles and cut. Being a season specific market, current fashion trends always dictates who stays and who goes in the months ahead. With fast changing trends in fashion and design choices of its core target consumer group, women’s knitwear segment is currently growing at around 20 per cent in India.
DOMESTIC BRANDS BANK ON INNOVATIONS While North Indian cities like Ludhiana rule the roost in woollies, its places like Tirupur in South India which is the knitwear capital of India. Mills and factories churn out thousands of handmade and machine made knitwear,giving employment people from the lower economic strata. But domestic players have to be encouraged by government subsidies as well as a regular supply of electricity and water and labour, in order to stop Chinese and Bangladeshi products from China from flooding Indian markets. However, the knitwear industry has been undergone a transformational.
Young population driving knitwear category in women’s wear Knitwear is season specific, driven by fashion trends Innovations driving the market Domestic brands and non brands jostling for space Nearly 80 per cent of market dominated by non brands Global brands now significant players Low – mid range tees sell best But women willing to pay extra for the right fit and design “Traditional knitwear practices have been disappearing fast from the market. Now, home-grown knitwear players are in a quandary as to how to provide better fashion in tune with international brands. But this is not the only challenge they have been subjected too. While domestic players have to compete with global brands in fashion and they need to keep the Indian middle class women’s need in mind with reasonable pricing. And not to be in sync with current practices means you are going to be wiped out soon. But there is a positive side too knitwear,” explains Akash Bansal, Design Director, Rage, a leading domestic apparel manufacturer. Keeping in mind, it’s target group of impulse driven aspirational youth as well as a seasonal market, innovation is the name of the game. Keeping a healthy balance between the two key elements of feel good comfort factor along with design and cuts is
the driving factor. It’s all about understanding the dynamics of constantly changing colour palette and trends of the international fashion ramps while balancing it with Indian customer needs across different segments and age groups. As far as traditional knitwear sector is concerned, the market is fair play for smaller domestic players because international ones are not in that space. Ethnic wear such as kurtas, leggings, sari-blouses among other segments are doing well, especially now that Indo-western fusion wear is the rage. In western wear, specially T shirt segment, overseas players are doing well. Domestic players have the advantage of capturing the fashion or western market also if they keep their pricing economical and introduce products at par with international players. The need of the hour is to provide the same kind of international catwalk fashion at competitive prices.
WOMEN’S KNITS
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LOW COST KNITS FLOODING INDIAN MARKETS
Sandeep Jain, Executive Director, Monte Carlo “In women’s knitwear, the T shirt segment is most significant. With T-shirts being a versatile category it can be easily paired up with jeans, shorts, skirts and more. Nowadays, tees come with a lot of sub-categories like printed and graphics and different necklines such as.” “We recently unveiled our Spring/Summer 2017 collection for men, women and tweens. Tops, tunics, shrugs, shirts, T-shirts, shorts, denims and summer dresses make for a multifaceted assortment, available in a host of designs and vivid colors. In women’s knitwear, the T shirt segment is most significant. With T-shirts being a versatile category it can be easily paired up with jeans, shorts, skirts and more. Nowadays, tees come with a lot of sub-categories like printed and graphics and different necklines such as,” points out Sandeep Jain, Executive Director, Monte Carlo, a leading apparel brand.
Although the knitwear market in both the men’s and women’s segment has picked up lately, competition from other Asian countries who are into mass production is a large obstacle in the way of profits. Industry reports point out India’s $17 billion exports of apparel were about half of Bangladesh’s last year and its 3.7 percent global market share lagged behind Vietnam’s 5.1 per cent. Closing the gap is of primary importance as manufacturing garments is a laborintensive industry, which has historically helped developing economies transition from agriculture. The Indian economy needs to generate 80 million new jobs by 2025 to keep up with its fast growing young population. With competitors like China and Vietnam flooding the market, window of opportunity is narrowing and India needs to act fast if it is to regain competitiveness and market share in the knitwear category. A key weakness of the Indian sector is worker productivity, which is almost three times lower than in China. A major reason is because Indian apparel manufacturers are mostly unregistered and smaller than in competing countries thus limiting the use of modern production technologies and capacity to take on large orders. However, cost of production has now gone up in China and they are slowly phasing out textiles. Opportunities will soon go to other Asian countries and India should grasp the bull by its horns. Things were different earlier, as there were few multinationals and no import from China and Vietnam. Multinationals are procuring in China and Bangladesh, who have taken over the premium and super premium segment of big chains. But smaller domestic manufacturers should not be disheartened, as this is a mere 20 per cent and they still have the rest of the market to make the most of. “The other challenge that needs to be addressed is curbing illegal and cheap
Akash Bansal, Design Director, Rage “Traditional knitwear practices have been disappearing fast from the market. Now, homegrown knitwear players are in a quandary as to how to provide better fashion in tune with international brands. But this is not the only challenge they have been subjected too. Domestic players have to compete with global brands in fashion and they need to keep the Indian middle class women’s need in mind with reasonable pricing. And not to be in sync with current practices means you are going to be wiped out soon. But there is a positive side too knitwear.”
44 WOMEN’S KNITS imports from China. It promotes growth which is not helpful and largely unorganise. If import is legal it does not hurt the industry. The third challenge is uncertainty in business environment and natural climate. We encountered issues with demonetisation and unexpected spells of winter and summers. Then there are challenges of skilled workforce and infrastructure. Sometime there is unrest in states,” observes Bansal, while elaborating on how competition from mass producing Asian countries are affecting Indian economy.
PRICE FACTOR AND STYLE TRENDS Global brands are now playing an important role in knitwear segment, since they offers a wide variety in terms of styles, colors and trends. They are omniscient in the T-shirt category for their cut and style as the corporate Indian woman now identifies herself with a brand logo and will not settle for a substitute. The average price band of women’s T-shirts is between Rs 700-Rs 1,200, which fly off the shelves fastest. Women also invest Rs 1,500 in a T-shirt depending on its quality, brand, versatility, fit and sex appeal. Experts feel the share of branded versus the non-branded is around 50:50 in the knitwear segment, depending on geographical and economic profiling of their customers. Super premium brands are more popular among the upper classes of metros whereas regular middle class prefer casual fast fashion non branded ones, with demand increasing rapidly in summer and monsoon months. “The age group where T-shirt consumption is more is school and college going crowd, who prefer casual, relaxed and comfortable clothing. In the higher age group, women prefer tunics, dresses/kurtis more in synchronization with Indian style of dressing. The average price of women’s T-shirt is Rs 499 to Rs 799. However, depending on the brand’s position it can go up to Rs 1,999 as women don’t mind picking a super-premium
brand in this range as well. Colorful Polo T-shirts with collar are in style which can be tucked in. It gives a corporate look. In casual category, neon’s with digital prints, Swarovski’s, and sublimations are in high demand. The crochet/brasso/net concepts are also selling good in this season,” says Guneet Singh, Director, Juelle, a popular ladies apparel brand. Every brand worth its name is now keeping a versatile and colourful range of tees and blouses as its by far, the most popular impulse buy for women when shopping. Strategically placed bright knitwear collections lying alongside jeans and trousers often appeal to the mix and match
discerning eye of the woman shopper and makes its way surreptitiously into her shopping basket. The primary colour trends this season are: orange, blue, pink, white and green. “Unik Bazar’s shirt trends are having a major moment right now and what will continue to be the ‘belle of the ball’ well into 2017 is graphic tees. While this shirt style is not necessarily anything new, street style stars have proven that this T-shirt style is officially the most versatile item in your wardrobe. Graphic tees can be paired with jeans and sneakers while others aim to impress by pairing them with velvet suits, midi skirts, and even dresses. Whichever way you choose to style, we are here to assure you that this is one trend
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guaranteed to stick around into the New Year, and that’s a trend worth investing in,’’ says Dinesh Harbhajanka, CEO of Unik Bazar. “In Unik Bazar generally a short-sleeved casual top that is made of cotton jersey knit fabric and has the shape of the capital letter ‘T’ when spread out flat. This is a common description but does not tell the complete story. A T-shirt can be of various shapes, fabrics, and sizes. They can be manufactured to be loose fitting and boxy or tight fitting so that they are snug to the body,” he adds.
KNITWEAR TO REMAIN STRONG IN SUMMER AND PRE-WINTER 2017 With summers getting hotter and more intense, most domestic manufacturers are expecting a good response for their new collections. In a rapidly fashion conscious India, retailers are confident their new collections will be accepted well. The lightweight pre-winter stuff is much in demand and since Indian winters nowadays
Japneet Singh, Director, Juelle “Knitwear portfolio is strong in women’s wear segment because knitwear is accepted both by the youth and upper age groups and being a season specific market, it has a big share of women’s wear. Demand is increasing because of growing awareness but it is still not as established and acceptable to the masses as it is consigned only to youth. Women’s T-shirt portfolio is getting established gradually in mark.”
are not heavy, shrugs and crop tops are expected to be in high demand.
Guneet Singh, Director, Juelle “The average price of women’s T-shirt is usually Rs 499 to Rs 799. However, depending upon the brand’s position it can even go upto Rs 1,999 as women don’t mind picking up one of superpremium brands in such range as well. Latest colorful Polo T-shirts are in style which can be tucked in. It gives a corporate look. In the casual category, neon’s with the use of digital prints, Swarovski’s, and sublimations are in high demand. The crochet/brasso/ net concepts are also selling good in this season.
“All of us are aware that knitwear portfolio is strong in women’s wear segment because knitwear is accepted both by the youth and upper age groups and being a season specific market, it has a big share of women’s wear. Demand is increasing because of growing awareness but it is still not as established and acceptable to the masses as it is consigned only to youth. Women’s T-shirt portfolio is getting established gradually in mark,” points out Japneet Singh, a director with Juelle. Knitwear industry has undergone a transformation. Traditional knitwear practices have disappeared fast, as women consumers have become more fashion savvy. Smaller domestic players are now scratching their heads in trying to provide better fashion at cheaper prices while competing with international players. But positiveness reigns supreme in the midst of all this. Perfect summer wear, the versatile and on-trend Indian knitwear will definitely sit pretty this year. As long as it has a third eye to watch its back with cheaper imports gnawing its way into its established market share.
46 KIDS KNITWEAR Growing up fast as brand play rises The kids’ T-shirt segment has seen a spurt with parents more willing to spend and kids having big say in purchase decisions. While it maybe tough to build a brand just on knits in kids’ segment yet most brands have extended their adult lines to incorporate kids’ wear to meet growing demand, find out Ajanta Ganguly and Ajay Goswami
K
ids are their families’ centrepieces around whom parent’s lives revolve. Whether at home, play or at special occasions, these little ones are now knitted out in the latest and trendiest fashion. Double incomes and smaller nuclear families have made this not only possible but also doable. Distinct factors like changes in the family system, increased spending on children, growing brand awareness among kids from the internet and the media has brought about this transformation. Along with this, a greater focus and understanding of the kids’ wear market by organized players has contributed significantly to the growth of this niche segment. It’s not just about branded clothes for special occasions; it’s also about looking Facebook ready for just about any casual setting. Children are now an active participator in purchase decisions and aware of trending brand names. Organized retailers and brands have also contributed immensely to the growth of the kids’ knitwear market. They attract consumers through the right product assortment, better visual merchandising, and focused advertising and promotional strategies. However, the knitwear market was and will always remain, a largely unbranded market in India, with products sold mostly through unorganized retail channels. This is mainly because of the different income levels across society, the geographical location of these target groups and of course, the low average lifespan of children’s apparel as a result of growing height, unlike all other
Kids knits market has emerged strong with parents willing to splurge Tough to build a brand based only on knits in kids’ segment Character licensing a big plus in T-shirts for kids Small players have bigger hold of market Big brands have entered this space more as an extension of their brand offerings Fabric awareness is crucial in kid’s wear which is the USP of knitwear Global brands too offering lines just for kids garment segments. Also, kids knitwear is also an extremely seasonal market, making the window of opportunities even smaller for both the global and the domestic brands.
KID’S APPAREL A NICHE SEGMENT With trendy designs, cuts and colours, it is T-shirts and shorts for boys and blouses and dresses for girls, which form the main staple of in knitwear portfolio of most brands. There are two important factors to be considered for making a kids’ apparel brand a success - variety and price. A children’s apparel collection should have variety that will appeal to kids. Moreover since kids outgrow their clothes very rapidly, it is necessary that this segment should be reasonably priced. Industry analysts feel that with the current rise in spending power in urban India, sales
in the kids wear segment are expected to reach Rs 1.6 trillion by 2020 as an average estimate. “The kids market is perhaps even bigger than the unisex or women’s market in knits in many ways. It is not difficult to build a brand on a capability of knits, but it requires focus to build a strong player. This is because the kid’s buying pattern is segmented, via age parameters, thus creative designs for a 2-year-old is vastly different to that for a 8-year-old. There is no such problem for the unisex or women’s category. Kids have their own world/universe so their clothing is generally mutually exclusive from adults. Future prospect of this category in India is huge, provided it is exploited intelligently. Due to serious lacunae in this field, many global players have now stepped into this
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vacuum,’’ explains Ranjiv Ramchandani, Director, Tantra. Knits use has shot up over the years, with a change in Indian climate and lifestyle and clothing sensibilities. Since comfort factor is much higher compared to other fabrics, it is extremely popular in the kids segments, whereas adult lines focus more on fit and cut. While brands may use the same retailers and distributors for both adults and kids categories, everything else is different.
Ranjiv Ramchandani, Director, Tantra “The kids market is perhaps even bigger than the unisex market in knits in many ways. It is not difficult to build a brand on the capability of knits, but it requires focus to build a strong player. This is because the kid’s buying pattern is hugely segmented, via age parameters, and thus creative designs for a 2 year old is vastly different to that for an 8 year old. The future prospect of this category in India is huge, provided it is exploited intelligently. Due to serious lacunae in this field, many global players have now stepped into this vacuum. “
Licensing is also an important part in kids branded knitwear segment and whether tactical or strategic, allows a brand to fetch an extra premium, which is a lucrative option for the global and the bigger domestic brands. Kids are influenced by cartoon icons of TV, movies and super heroes and these help dictate the licensing and marketing spectrum to forecast which will sell best and where. While most mid-size domestic players are not into licensing as it’s an expensive proposition, a few are planning to start soon since it helps the brand grow rapily.
CURRENT STYLE TRENDS Market researches indicate there is a boom in the domestic kids wear market. Along with global brands making an entry, there has been a diversification into the domestic retail sector. The organized sector has the advantage and capability to make the best use of trend forecasting facilities while the unorganized sector still relies on what sells better in a year to year basis. Tirupur remains the main hub for sourcing all kids knitwear products, having retained its advantageous position year on year, in terms of infrastructure, manufacturing capabilities and knowledge of the current fashion trends. “We are currently preparing for summer 2018, which is still in the R&D stage as things are not finalised yet. Under Octave, we do boys wear only. We have a separate brand for girls wear named as ‘Mettle.’ When it comes to type of necks preferred in kids wear, round neck and collars are obviously popular. It is as same as men’s segment. Winters demands a change in strategy, like demand for hoodies T-shirts goes up during. The rest of the year does not make much difference. We are using a variety of fabrics such as pique fabric, melange fabrics coupled with different textures,’’ explains Balbir Kumar, Director, Octave, a leading domestic kids garment manufacturer. Kumar says the response from the kids segment has been encouraging. They make products for middle class segment. As far as spending on kids is concerned, there has been a change in consumer’s mindset. Although pricing is still a concern for them as the old perception that kids outgrow clothes fast still does exist. “In Octave, we have been very clear as to who we target and how. We have a right combination of
Abhishek Agarwal, Director, UFO Kids T-shirt market is dominated by unorganized players. It is a price sensitive, high volumes and low margins category. It is difficult to build a brand on the capability of knits. A consumer may be ready to spend Rs 1,500 or more in the adult category for good quality and unique products. In kids’ segments, this is hard as its price sensitive but there is a market for the same which is very niche. The role of licensing is rapidly evolving in India and this is a huge segment and a great opportunity for organized brands to cash on.”
48 KIDS KNITWEAR Balbir Kumar, Director, Octave “We are currently preparing for summer 2018 collection, which is still in the R&D stage as things are not finalised yet. Under Octave, we do boys wear only. We have a separate brand for girls wear named as ‘Mettle.’ When it comes to type of necks preferred in kids wear, round neck and collars are obviously popular. It is as same as men’s segment. Winters definitely demand some changes in the strategy, like the demand for hoodies t shirts goes up during this period in the kids wear category. The rest of the year does not make much difference. We are using a variety of fabrics such as pique fabric, melange fabrics coupled with different textures.”
product quality and pricing which helps us to steer ahead of the market.” Most brands feel although usually, the higher the MRP, the lower is the consumptions. But that is not an impediment for spending as modern parent want the best for their kids, as they no longer have a brood. T-shirts work for both boys and girls in the knitwear section, with round neck and polos selling best for boys, while V-neck and round necks with modified work for girls. The bigger domestic brands as well as the global ones regularly release season-wise and age-wise knit wear offerings in the kids range.
SHORT LIFESPAN HINDERS LARGE SPENDS Fabric awareness among customers is crucial in kid’s wear which is the USP of knitwear. The Indian middle class may go to a variety of retail outlets and check several collections, but will only buy the garment, if they realise that if it is even worn after 45 months, it would still look new and retain its shape and be on-trend. Most children clothes are bought with just a year’s value of wearing before they are outgrown. As in adult clothing, it cannot be taken out of the closet and worn over the years, whenever the wearer fancies it. Brand manufacturers need to stress on good designs, in terms of fabric, colors, silhouettes, embellishments
and prints that will last over the one or two years, the child is actually able to wear it. Domestic brands are able to supply good value for money in their knitwear collections. One of the reasons for failure of big brands is their high pricing and lesser garment choices in the kids knitwear segment. “We launched two brands in 2012 named ‘Wow Mom’ and ‘Super Young’. We started off with retail stores but seeing the dearth of brands in the kids segment, we came up with these two brands. ‘Wow Mom’ is intended for infants and Super Young taps the toddler segment. Currently ‘Wow Mom’ is growing exponentially owing to a high demand in this segment. The consumption in toddler segment is not much because this segment deals with high pricing and high value product, the target audience in this segment wear less but wear good quality products. This particular segment requires your product to be innovative, quality oriented and fashionable,’’ points out Deepak Pareek, head of sales and operation of Toonz retail. “As far as spending on kids knitwear is concerned, it has increased over the years. The market was not so good in the past because people had three to four kids so they could not afford to spend too much on their clothes and appearance. Today, things are different with both parents earning and having just two kids. It will take another ten years for the market to get matured. But the kids segment is no doubt evolving. The growth of the segment can be judged by the fact that Toonz Retail started off with first store in 2010 and today it has more than 100 stores. But it is also a fact that failure rate is very high in the kids segment as there are cost related issues. Margins are not as good as that we have in women and men’s segments,” he adds.
INNOVATION IS THE NAME OF THE GAME Bringing in a fashion element to children early-specially girls- and giving them a wider portfolio of garment choices that are comfortable yet fashionable is what probably drives the market most. Innovation is in terms of fabrics, cuts, washes and style. Indian markets in kids wear even have an unique style in choosing colours as per the market requirement and according to the states. So the color keeps on changing form different states or cities. This is mainly due to skin tones as well as climate differences across pan India. While most people in South Indian states like Chennai may preferr colors like yellow and orange, those in Delhi may refer black or a lighter palette.
“Kids T-shirt market is dominated by unorganized players. It is a price sensitive huge volumes low margins category. It is difficult to build a brand on the capability of knits. A consumer may be ready to spend Rs 1,500 or more in the adult category for good quality and unique products. In kids’ segments, this is hard as its price sensitive but there is a market for the same which is very niche. The role of licensing is rapidly evolving in India and this is a huge segment and a great opportunity for organized brands to cash on,” points out Abhishek Agarwal, Director, UFO. The kids’ knitwear section has a high potential to become the fabric of choice. Light, easy maintenance, versatile, it’s only a matter of time and innovative thinking that will help both branded and the unbranded players establish a firmer hold on the category.
Deepak Pareek, Head Sales and Operation, Toonz Retail “As far as spending on kids knitwear is concerned, it has increased over the years. The market was not so good in the past because people had three to four kids so they could not afford to spend too much on their clothes and appearance. Today, things are different with both parents earning and having just two kids. It will take another 10 years for the market to get matured.”
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Healthy lifestyles augur well for active wear makers Buoyed by growing health awareness, favourable demography and lifestyle changes, activewear has gained ground across India. As demand increases from both men’s and women’s category, domestic and global brands are tapping into this space with new lines aiming for a larger market share, write Ajay Goswami and Prerna Sharma
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ringing the worlds of style and sports together, activewear is one of the biggest trends influencing the fashion industry. Merging sport, urban and fashion cultures in a way that is stronger than its individual parts, it is more than a trend: it is a whole lifestyle and attitude. Ably supported by features such as comfort and ease, the scope of activewear segment is growing both in India and abroad. Changing lifestyles and health awareness has enhanced the market for activewear across the world. While China and the US are one of the biggest markets for activewear, India too with its young population is fast catching up as demand has been growing here. Most knitwear brands globally and in India, have now ventured into this segment to cash in on the growth opportunities. Euromonitor’s most recent research reveals in global apparel and footwear industry, performance sportswear is leading the market’s growth with a value of $78 billion in 2016. Euromonitor’s Apparel & Footwear Analyst Bernadette Kissane, explains while the industry as a whole grew 4 per cent last year, sportswear grew — for the third year in a row — 7 per cent. Market Reports research firm says the combination of fashion and sportswear is the present-day trend of the sportswear market. Sportswear is worn during any physical exercise, to provide the wearer comfort. Sportswear includes T-shirts, hoodies, shorts, tracksuits, tennis shirts, polo shirts, shoes and others, which are worn while playing sports and doing other physical activities. North America is the largest sportswear market globally. It has the most advanced fitness market, along with other favorable
Domestic activewear market is around Rs 6,000 crores Growing at 12-13 per cent per annum Growing health awareness and changing lifestyles pushing up segment China and the US are largest market India with a young population is driving the activewear market Both men and women’s segment are growing Many domestic brands adding activewear to their product basket Global brands offering active wear but pricing could be a deterrent for average Indians dynamics. The global sportswear market holds huge potential with rapid innovations and increasing health consciousness among people. Seconding this, Aditi Mirani, Brand Manager, Urban Yoga, elaborates “The yoga apparel market is dominated by North America. People in the West have fully embraced active wear as a lifestyle category and not just for workout/ yoga classes. India is still on the way to wholly embrace it as a lifestyle.” Many factors have added to the growth of active worldwide. The triggers range from the rise in per capita spending on sportswear to popularity of outdoor recreation, increase in number of yoga participants, surge in fitness club members, and rise of e-commerce which has increased online penetration of sportswear brands worldwide. The global sportswear market is trending with
innovation, increasing health awareness, popularity of activewear, combination of smart clothing and growth of functional clothing. However, at the same time market growth is being hindered by counterfeit products, increase in labour cost and low negotiation power of purchasers.
GROWING EXPANSE IN INDIA India is not behind in adopting the trend to its fullest. As Kuntal Raj Jain, Director, Duke observes, “Over the past few years, India has rapidly caught up with the wider global fitness trend. Driven by growing wealth, changing lifestyles, and rising urbanisation, an increasing number of Indian consumers are becoming health conscious and adding new health and wellness routines to their hectic lifestyles. Rising incomes and discretionary expenditure in urban India have allowed people to focus on health and
50 ACTIVE AND LOUNGE WEAR wellness. Meanwhile, running, cycling and team sports are amongst India’s fastest trending exercises.” With more and more people developing a passion for exercise and inclination to active lifestyle, activewear is gaining better recognition but its ratio is increasing more in men’s category, Jain opines. As per some experts, the domestic activewear market is approximately Rs 6,000 crores and growing at 12-13 per cent, per capita Mirani says that it is among the fastest growing segments in the apparel industry along with the nightwear. However, it’s tough to put in a number to the market size as it still primarily an informal market. Active wear is now becoming synonymous with a certain lifestyle, whereas performance wear is for specific use. Today yoga is a lifestyle and for these reasons, yoga clothes are not worn only to yoga class- they are used on a daily basis. Active wear serve the purpose of an active life mixed with a casual social life. They can be used for exercising and then transitioning into a casual wear. These clothes have more flexibility and style and comfort. Sportswears are sports specific and more focused on comfort, functionality, and thermal functions of a fabric. Elaborating on the transformation, Ankit Aggarwal, COO of brand Confidence, explains, “The purpose of lounge wear has changed a lot now from its earlier days. Now it is being worn to remain comfortable yet making a fashion statement while being at home or when hanging out friends for coffee or while going out for walk in morning/ evening or while spending joyful Sunday
key athleisure collections are from Puma by Rihanna, NikeLab x Sacai and Alexander Wang x H&M, while Adidas regularly collaborate with top fashion designers like Raf Simons, Rick Owens, Jeremy Scott and Mary Katrantzou. Similarly, most fast fashion brands have embraced activewear and added it to their product basket. For example, Forever 21 and H&M now have an active wear segment and even more specifically a yoga section. Forever 21 even sells yoga mats today. Uniqlo another global giant has added an active wear segment. Jain seconds Mirani’s views and says many big brands are now focussing on activewear and its different components as people in India are becoming increasingly health-conscious, and turning to sports, outdoors and adventure activities as means to healthy living. Not restricted to professional sportsperson anymore, sports today is perceived as a ‘lifestyle’ across age groups and everyone seeks suitable clothing and footwear. with family & friends.”
WHAT’S
DRIVING
DEMAND?
As adoption is increasing, so is the demand for activewear. Mirani says there is a demand for both men’s and women’s activewear but women dominate the segment with close to 75 per cent of the market. “This is reflected in our product range as we manufacture 25 per cent men’s apparel and 75 per cent women’s apparel.” Jain has another view as he points out with more and more people developing a passion for exercise and inclination towards active lifestyle, these garments are gaining better recognition in today’s time in both men and women’s category. But yes, its ratio is increasing more in men’s category.
BIG BRANDS MAKING A SPLASH Today, athleisure-inspired collections are much more commonplace, partly fuelled by sportswear giants like Nike catching onto the trend and making athletic looks more fashionable. Directional colours, fabrications and slim-fit shapes have been introduced to Nike sports shoes, making them more acceptable to wear outside of the gym. Other
Kuntal Raj jain, Director, Duke
Making the most of it, many domestic companies have started rolling out new products trying to grab a major share of market pie. In this line, Urban Yoga has introduced the concept of adding an exciting story every season. “This season, we did a Chakra collection and the next season we are doing a varsity inspired collection called the Gurukul Collection – there will be around 15 options in this range. Besides the new story, we have focussed on our bottom wear creating eight silhouettes for different body types and different needs of the customer – we have jogger fits, straight fit track pants, tapered fit, layered Capri, 3/4th length capri, tights, foldable waist pants, and dhoti pants,” elaborates Mirani. Urban Yoga is moving more towards a cotton-based range and looking to expand its accessories collection to become a one stop shop for all things yoga. The company will soon be introducing open toed socks, eye masks for meditation, incenses. It also houses bestselling aroma scented cotton Sandesh T-shirts. Light weight sweaters, quilted interlocks & fancy jacquards are the new innovations for
“Over the past few years, India has rapidly caught up with the wider global fitness trend. Driven by growing wealth, changing lifestyles, and rising urbanisation, an increasing number of Indian consumers are becoming health conscious and adding new health and wellness routines to their hectic lifestyles. Rising incomes and discretionary expenditure in urban India have allowed people to focus on health and wellness. Meanwhile, running, cycling and team sports are amongst India’s fastest trending exercises.”
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“We try to penetrate deeply in our existing market due to fact that our present customers are inclined towards our product. Confidence has been a frontrunner in lounge wear market from the past many years, owing to the quality, designing and cost friendliness.”
Ankit Aggarwal, COO, Confidence Duke’s forthcoming season. According to Jain, functionality and fashion both equally contribute to the product. In fact, they complement each other. “Our expansion plans are 100 per cent in many categories such as active wear, thermal wear, winter wear and also in online business, we are expecting high growth in coming years. We are focusing on accessorisation too and expanding into different segments, mainly in footwear and e-commerce business where we are expecting high growth in coming years,” adds Jain. Duke continues to make products that are value for money and has created loyal customers who will settle for nothing else.
EXPANDING REACH Along with product launches, companies are leaving no stones unturned to capture
maximum customer base. For instance, Duke has an unbeatable marketing network comprising of over 4,000 MBOs and over 360 EBOs across major cities in India. Moreover, the products are also exclusively placed at big chain stores like Central, Reliance Trends, 1rvind Retail, Easy day, Metro, Best Price, etc, and is doing online business on Myntra, Snapdeal, Jabong, Flipkart, Fashionara, Amazon, www.dukeindia.com. Similarly, Urban it has exclusive brand stores in four cities and is present in about 24 Central stores, and 20 odd Brand Factories. Its products are also selling online through Amazon and Myntra. “We are looking to expand to more Central stores, creating kiosk stores in malls across the country as well as exploring airport stores,” Mirani informs. Confidence is attempting to provide a full range of products in present product categories so that the customer gets an ultimate shopping experience and all products under one roof. “We try to penetrate deeply in our existing market due to fact that our present customers are inclined towards our product. Confidence has been a frontrunner in lounge wear market from the past many years, owing to the quality, designing and cost friendliness,” claims Aggarwal. To keep customers’ expectations, the company constantly innovates and offers new products. This season, lots of self-fabric jacquards, prints, pastel colors will take an edge, says Aggarwal. Lounge wear is cost competitive product category but lacks fashion. he avers.
Aditi Mirani, Brand Manager, Urban Yoga
GROWTH HORIZONS Homegrown brands like Urban yoga are positive about growth both metros and Tier II, III cities. Similarly, global brands are well entrenched in the metors and are positive about gaining ground even though the average price points, can be intimidating to a large chunk of Indian audience. Jain says the category will grow at an exponential rate and they are preparing themselves for this growth curve. “With more and more demand of active wear in today’s world, this category will be growing in very high rate in coming years.”
“There is a demand for both men’s and women’s activewear but women dominate the segment with close to 75 per cent of the market. This is reflected in our product range as we manufacture 25 per cent men’s apparel and 75 per cent women’s apparel.”
Established in the year 1991. The brand is known for it’s quality and flexible price range. The brand deals specifically in men’s shirt and T shirts. The brand uses cotton ,linen and denim for the product. The shirts and T shirts are available in nearly all sizes.The target age group of the brand is 18 to 40 years.The shirts are basic and casual wear only.
THE BRAND
For the forthcoming season the they have a wide range in colour and style. They are coming with the new version of florescent colours and different dark and light shades of pastel colours. They present in most of the online formats and are associated to more than 1a000 MBO’s. They have a EBO. They have great hopes for the next season to be fruitful.
THE COLLECTION
54 ORGANIC KNITS Going Green: Brands take the initiative to make a difference With growing awareness about organic cotton, global fashion companies are leaving no stone unturned to go green. Treading the same path are a handful of Indian companies who are making a mark with their organic lines. The market is yet to catch up in a big way, find out Ajay Goswami and Prerna Sharma
A
fter receiving flak from activists and concerned people about the harmful impact of cotton on environment, many garment manufacturers from across the globe are now scouting for organically produced cotton to manufacture garments in a more sustainable manner. In fact, ‘Going Green’ is the buzz word across the globe in the apparel segment, there is a realization about the need for being ecofriendly in every aspect of life.
Organic is still a niche market
It’s all about reducing carbon footprint, adapting sustainable production practices to save the earth. In garmenting with demand for organic cotton the entire process has become more transparent with companies becoming more responsible, it has also offered customers a new choice to do their bit towards nature by opting for organic.
Very few niche brands offer only organic lines
After seeing a 10 per cent rise in production of organic cotton last year, 2014-15 saw a slight dip of 3.8 per cent, production is set to increase again in 2017-18 when a number of in-conversion programs in India reach certification. In total, there are currently 19 countries growing organic cotton, though the top five growing countries (India, China, Turkey, Kyrgyzstan and US) account for more than 92 per cent of production. India alone accounts for 67 per cent.
GOING GREEN THE ORGANIC WAY However, organic is still niche in India but stakeholders say the market is promising and growing consistently. Niharika Verma, Founder, BonOrganik points out organic
As per some estimates, the market is growing at 60 per cent a year Consumer mindset is changing little by little and they are willing to pay for organic India is one of the largest producer or organic cotton Most of it is exported They are relatively small players Most of the organic clothing made in India is exported Domestic demand still low segment is growing rapidly and people know they have to be concerned about the environment they dwell in before it’s too late. “The market is growing and prospects for an organic brand in India are very bright,” he says. Hina Palkar, Founder, I Wear Me Fashions goes on to add, “Organic cotton exports are the highest from India. While readymade T-shirts may not be as large but organic cotton in its raw form, fabrics etc, see high exports from India.” In fact, Apurva Kothari, Founder, No Nasties, has been seeing a steady rise in demand for organic clothing from the time he started business in 2011. “As more and more customers are becoming conscious of the impact of their purchases and there
is more coverage in the media about the benefits and importance of organic farming, more people are asking for sustainable and ethical clothing.” As per some estimates, the market is growing at about 60 per cent every year. Explaining the benefits Verma, says ecofriendly organic cotton is beneficial for farmers and softer and gentler on the body. It’s all about cotton grown without artificial and harmful fertilizers and chemical. Even at the production level, the factory needs to follow stringent guidelines laid down by GOTS, etc. Some visible differences are it’s naturally softer than chemically softened conventional cotton.
ORGANIC KNITS They are not exposed to toxic chemicals in the field or through their food and water supply. Organic cotton is 80 per cent rainfed, which reduces pressure on local water sources. The absence of chemicals also means that water is cleaner and safer.
HIGHER PRICES A DETERRENT? Of course, organic being niche the consumer has to pay a little extra. To this Verma says, “Why pay extra? People pay for the product and if your product is genuine and design is good, people pay for it. Indian audience is underestimated, they are well travelled and educated enough to know what organic is. The problem comes when organic is boring, which we are not. That’s our USP we are stylishly organic and economical as well. We are organic by choice and pay equal attention to aspects like design and fit.” Some stake holders say, Indian consumers understand the concept of organic T-shirts but they need to be educated more about the material and its advantages. They are willing to pay extra once they understand the importance of using organic. While it is difficult to manage the entire portfolio on the strength of organics but we need to take risk. Seconding this view Palkar observes, “India is still warming up to the idea of ‘organic’. The organic food category is doing extremely well and a large part of its success is driven by the fact that consumers warmed up to the idea of as it directly affected them. Organic clothing, on the other hand, has little to do with direct impact. The long-term impact of conventional clothing is often missed by consumers.” There still needs to be a lot of communication, and efforts need to made at the ground level to make people aware of both sides of organic clothing, farming, manufacturing and consumer side.
Elaborating further, Kothari says “Organic cotton produced, and certified, according to set agricultural standards. One of most important fact is that organic practices prohibit the use of ‘agrichemicals’ (artificial pesticides and fertilisers) along with genetically modified (GM) seeds. Instead, cotton is grown as a part of a production system that sustains the health of soil, ecosystems and people. It relies on ecological processes, biodiversity and locally adapted inputs in place of chemical inputs, which can have an adverse effect on farmers and the environment. Organic cotton production combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved.” Moreover, it uses 71 per cent less water and 62 per cent less energy. Growing organic cotton keeps farmers and their families safe.
“Our brand philosophy, is to make organic clothing accessible and pocket friendly for every consumer. The price of organic clothing shouldn’t be determined by just the term organic but also the overall aesthetic of the product. Organic is economical in terms of production and we see no reason why it cannot be priced at par with conventional clothing,” Palkar opines. Kothari says people are willing to pay
Hina Palkar, Founder, I Wear Me Fashions
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extra but they also need to know that as demand for organic clothing increases and it becomes mainstream prices will drop due to efficiencies of scale. “Right now, the supply chain is limited to smaller niche brands like ours working with smaller size mills and the costs are higher due to that. Moreover, if you realise that in the end, someone is paying for cheap, fast fashion (and it’s usually the cotton farmers and factory workers who have to take on this burden), it’s not fair to be only looking at the financial cost and ignoring the social and environmental costs of your purchase.”
COMPLEXITIES OF PORTFOLIO MANAGEMENT In the race to strike a balance between environment and being effectively priced, brands are finding it tough to convince and get customers to buy for this concept. However, extremely confident of their offerings, companies most brands are going ahead with their organic launches to entice consumers. As Verma says, “our strength is concept of being India’s first brand to offer matching outfits. Organic is a choice that we as a brand have opted as we care for the environment. We dwell in and people love our brand and we are getting noticed globally for our work.” Palkar feels organic is still in very nascent stage in India, even from the manufacturing side. “Small and boutique brands who do not have large requirements face a lot of difficulties when it comes to procurement and finding suppliers at optimum costs. Only a handful of manufacturing companies are willing to work with smaller brands.” Currently Tier I, II cites are driving demand of such products but as consumers become more aware, it will go beyond that, say stakeholders. According to Palkar, there are a number of other cotton sustainability initiatives, each with a slightly different approach, geography and focus area. For example, Fairtrade prioritises trade, organisational structures and community development; Cotton made in Africa (CmiA) focusses on livelihood improvement in Africa; and the Better Cotton Initiative aims to make the mainstream better. Talking about India, Kothari says “India is the leading producer of organic cotton and supplies around 66.9 per cent of the world’s
“Our brand philosophy, is to make organic clothing accessible and pocket friendly for every consumer. The price of organic clothing shouldn’t be determined by just the term organic but also the overall aesthetic of the product. Organic is economical in terms of production and we see no reason why it cannot be priced at par with conventional clothing.”
56 ORGANIC KNITS “Our strength is concept of being India’s first brand to offer matching outfits. Organic is a choice that we as a brand have opted as we care for the environment. We dwell in and people love our brand and we are getting noticed globally for our work.”
Niharika Verma, Founder, BonOrganik organic cotton. Apart from cotton, other materials that are getting into the production process are – Bamboo, Modal, Tencel, to name a few.” He goes on to add there are other sources such as hemp and bamboo as alternative to cotton but still in early stages of technology use and are not usually ‘certified organic’.
NEW LAUNCHES & EXPANSION PLANS The concept of organic clothing in India is fairly new and hasn’t really caught the attention of consumers. Only a few brands offer full range of organic clothing and most of them operate on a small scale, which
often limits the brand’s reach. Manufacturers often cater only to export market because of the huge demand abroad and also because of subsidies provided by the government for exports. They often end up neglecting domestic market and brands who normally work on smaller numbers and quantities as compared to big brands. Yet, there are brands like BonOrganick, I Wear Me et al, who are satiating the demand of domestic customers with their collections. Buoyed by growth potential, BonOrganik for example, is planning organic hoodies and use of soft weaves for its woven collection. The colour palette has been inspired by northern lights and styles are kept flowy and effortless. Something that everybody shape would be comfortable wearing and will not make winters look too bulky. I Wear Me is looking to launch an all new women’s category in the coming season, which will
include dresses, tops, comfy pants made from 100 per cent organic cotton, and it also plans to introduce more eco-friendly fabrics, like Peace silk, linen, Modal, etc. No Nasties will be launching new product categories such as kids clothing, bags & accessories, and perhaps home products. “We are primarily an online brand and will continue to expand that. Having said that, we are also planning increasing our presence in Goa, which is our headquarters and may open our own retail store by the end of the season,” informs Kothari. BonOrganik has been doing great ever since inception and forthcoming season, it expects 100 per cent growth with the launch of winter wear similar clothing for family. I Wear Me is focussing on bulk exports over the last few years, which has done well, however the company plans to enter e-retail for the forthcoming seasons. No Nasties has seen steady growth since inception and intends to carry on the same growth over the years. As far as retail strategy is concerned, BonOrganik has been selective as the concept they are working on needs right projection. “We plan to tie up with a MBO this year and provide exclusivity in terms offline retail presence,” says Verma. I Wear Me currently retails exclusively through its own website along with other online retail partners like Flipkart, etc. “We do not have plans to retail through traditional offline formats yet. Our key focus is India, and we are planning to target tier I and II cites. We are also planning to expand our product portfolio and offer more than just
Apurva Kothari, Founder, No Nasties,
T-shirts. The aim is to cater to audiences right from kids to adults. Again the focus is not to go out and out on organics but the aesthetic part of the brand that is unique to us. Organic concept has to be subtle and weave into the entire communication while talking to our audiences,” asserts Palkar.
PROSPECTS AHEAD Organic cotton is currently at a critical juncture up to 2009, there was steep growth, with farmers planting large amounts of organic cotton. However, when the economic crisis hit, sustainability initiatives were also hit hard. In addition, cotton in general is experiencing competition from other crops. Demand for organic cotton is without doubt growing and more & more brands have committed to use 100 per cent organic cotton. This growth in demand will create opportunities to improve organic cotton supply chains, and incentivise farmers to increase production. Palkar also believes clothing is an evergrowing category. “If organic concept is done right, it will find takers and believers in the concept. Government intervention of making organics mandatory can take the concept a long way and help build a sustainable clothing ecosystem. The market will grow steadily but the category will stand out for players who bring in clear innovations in terms of fabrics, patterns, etc. with utmost positivity,”. Kothari concludes on an optimistic note, “The indicators look positive – looks like 2017-18 will be a positive year and the future is bright.”
“As more and more customers are becoming conscious of the impact of their purchases and there is more coverage in the media about the benefits and importance of organic farming, more people are asking for sustainable and ethical clothing.”
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58 COVERY STORY Status Quo ‘As a brand, we keep pace with latest fashion, along with innovation’
W
ardrobes in India and across the world are undergoing a change from formal to casual trendy attires. This has led to an unprecedented growth of T-shirts and knits category which have come out strong among all other apparel categories. In India, the market is dominated by men’s and boys’ segments, which contribute 85 per cent market share. However, the women’s segment too growing rapidly as there is an increased acceptance of western casual wear in across India. Status Quo launched in 1998, has made a mark in India with its line of trendy apparels. Bobby Arora, Managing Director, speaks to Ajay Goswami about the brand’s product expansion and retail growth plans The brand is the official licensee of Baahubali 2, Emoji, Garfield, and Archie. Offers a complete range of fashion wear Ready to launch fashion apparel collection for Royal Challengers Bangalore. Projecting an increase of 30 to 35 per cent in business May add 75 shop in shops by the end of this year What are your expectations from bookings and sales in the forthcoming season?
apparel collection. (More on www.statusquo. in, Shop on www.store.statusquo.in, www. facebook.com/statusquoindia)
As a brand, we keep pace with latest fashion, along with innovation in our existing collection and new categories. We are projecting an increase of 30 to 35 per cent in our business, for the forthcoming season.
Tell us about the new collections for forthcoming season?
Tell us about your company and target audience. Launched in 1998, Status Quo began with the aim of creating a whole range of impressive and vibrant apparels for the youth. An established and popular brand today, it’s the choice of self-confident youngsters. Offering a complete range of fashion wear, the youth-focused brand has a dynamic style and outlook. Complimenting their beliefs with modern designs, the brand helps youngsters to stand out among teaming millions with its unique and exciting designs and consistent quality. With an installed capacity of 2.5 million pieces per annum, Status Quo is the official licensee of Baahubali 2, Emoji, Garfield, and Archie. It is also associated with Royal Challengers Bangalore for their fashion
After the successful launch of Baahubali 2 collection, we are ready to launch fashion apparel collection for Royal Challengers Bangalore in Autumn/Winter 2017. In the forthcoming season, we are adding a trendy knits category with: shrugs, waist coats for men with ankle length trousers in black, white, khaki, olive and navy colors.
Tell us about your present product portfolio. The present portfolio consists of shirts, waist coats, shrugs blazers, T-shirts, shorts, joggers, trousers, denim, sweat shirts, sweaters and jackets. Shirts are for Rs 1,499 up to Rs 1,999, waist coats start from Rs 1899 to Rs 2199, shrugs are from Rs 1,599 to Rs 1,799, blazers from Rs 3,999 to Rs 4,499, T-shirts from Rs 399 to Rs 1,599, shorts and joggers from Rs 549 to Rs 1,699, trousers and denims from Rs 1,799 to Rs 2,499, sweatshirt from Rs 999 to Rs 2,099, sweaters from Rs 1,499 to Rs 1,999 and jackets from Rs 2,099 to Rs 4,799.
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“An established and popular brand today, Status Quo is the choice of self-confident youngsters. Offering a complete range of fashion wear, the youth-focused brand has a dynamic style and outlook. Complimenting contemporary beliefs with modern designs, the brand helps youngsters to stand out among teaming millions with its unique and exciting designs and consistent quality. With an installed capacity of 2.5 million pieces per annum, Status Quo is the official licensee of Baahubali 2, Emoji, Garfield, and Archie. It is also associated with Royal Challengers
Bobby Arora Managing Director Are you witnessing any change in demand for your category? Knitwear is emerging as the fastest growing segment compared to others, including woven garments and mill-made garments. Knitted garments are preferred over woven garments all over the world due to its comfort, stretch and breathability built within the fabric structure.
Bangalore for their fashion apparel collection.”
Cotton prices have shot up in last six months, resulting in an increase in product prices but to drive better volumes we are holding our MRP’s like last year.
What are your category expansion plans? We will continue to build the knitwear collection. We launched new knitted products like, shrugs, waist coats and ankle length
trousers. Recently, we associated with RCB for their fashion apparel collection. More associations are in the pipeline.
What is your retail network? The brand is available through more than 1,100 Multi Brand Stores across the country and has a presence in almost all large format stores like Shoppers Stop, Lifestyle, Lulu and Central with 140 touch points. Status Quo also retails through Amazon, Flipkart, Myntra, Jabong, ABOF, Snapdeal, Tata Cliq, Paytm and store. statusquo.in. MBO’s contribute 41 per cent, LFS 38 per cent, online 14 per cent, and others 7 per cent.
What are your expansion plans? What plans do you have to explore new markets in India? From 10 shop in shops, we are looking to increase to 75 shop in shops by the end of this year. We have also planned new EBOs from early next year. Exports, MBOs and LFS business are steadily growing and we wish to continue with the same. In India the markets/states which we are exploring are: Bihar, Kerala, Himachal Pradesh and Jammu & Kashmir.
What is your current turnover and what are your growth goals for next 2-3 years? Our current turnover is Rs 110 crores. We are planning to double this in three years.
“Knitwear is emerging as the fastest growing segment compared to others, including woven garments and mill-made garments. Knitted garments are preferred over woven garments all over the world due to its comfort, stretch and breathability built within the fabric structure. Cotton prices have shot up in last six months, resulting in an increase in product prices but to drive better volumes we are holding our MRP’s like last year.”
60 COVERY STORY “From 10 shop in shops, we are looking to increase to 75 shop in shops by the end of this year. We have also planned new EBOs from early next year. Exports, MBOs and LFS business are steadily growing and we wish to continue with the same. In India the markets/states which we are exploring are: Bihar, Kerala, Himachal Pradesh and Jammu & Kashmir.”
Status Quo, which has been the official fashion partner for Baahubali franchise, in its attempt to take the association forward, recently launched a range of Baahubali’ apparels too. The range of ‘Baahubali’ apparels for men is designed on popular and lead characters of the film including Baahubali, Bhallala Deva, Kattappa among others. The initial line of apparel from the Baahubali collection includes T-Shirts and features a range of designs combined with Status Quo’s signature style. The designs are very different any Indian film has seen before. In a competitive landscape of apparel industry, this association certainly marks a key milestone in brand’s growth story. This Baahubali range which is available across stores including Central and Shopper Stop is priced at Rs 899 onwards. The brand based on fashion apparels was launched in 1998 and now is available in 1100 multi-brand outlets and in large format and online stores.
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62 BRAND LEADERS PEPE JEANS
‘For the upcoming season, we have introduced athleisure’
Neha Shah, Head Marketing
How do you perceive the T-shirt market in India?
believe in offering the right product, tees which are classic and have a long shelf life.
The market is a cluttered as there are many brands, private labels, and online medium vying for customer attention. Quality, right pricing, and trendy items will be the major growth contributors in the long run.
Tell us about your new collections.
Is there a problem with price points for T-shirts? It’s not about price; it’s about the value. You can see value in products that are expensive and value in products that are cheap. Our pricing strategy is fundamentally based on the value we are offering consumers. We
For the upcoming season, we have introduced athleisure. Its currently available only in menswear and will soon be extended to women’s wear in the coming seasons. The collection sees a host of colors--black, white, grey, navy, red, blue and green. The range consists of sweat pants, T-shirts and sleeveless tees. We have True Fresh denims and True Blue denims.
How has athleisure caught on? Given our busy schedules, athleisure blurs the line between functional and causal, comfortable clothing. The trend combines both practical aspect as well as wearability. More than a trend, athleisure marks a change in lifestyle, moving toward health consciousness, with relaxed and comfortable outfits. What makes this unique is that Pepe Jeans has incorporated technology to make this last all day long with these two unique features incorporated in this high-performance fabric.
Tell us about your retail presence. We plan to explore Tier II and III markets in the coming fiscal.
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CLASSIC POLO
‘We expect to see higher demand for T-shirts with line illustrations’ Tell us about the brand?
Usha Periasamy, Operations & Brand
Classic Polo has the entire men’s category as of now. We are spread across India with 104 EBOs, 340 large formats and 4,000 MBOs. The brand is keen on expanding to Tier II, III cities. This year we are planning to expand in Maharashtra, Rajasthan, Orissa, Bihar and West Bengal. We expect to add 30 stores this year. The turnover is Rs 160 crores, and in the next two to three years, the brand will hit around Rs 400 crores.
What are the latest styles and trends in T-shirts? When it comes to fits, the trend is slim and muscle tees. This season, we expect to see higher demand for T-shirts with line illustrations as more and more cool start-ups are emerging in India. Line illustrations are often associated with modern elements and technology. The rise of start-ups has given relevance to this particular design language. We have T-shirts with line illustrations and integrated this unique design into our portfolio this season. All-over prints and synthetic blends are important. The more classic looking tees are those that are in traditional colors—peach pink, aqua green, indigo, white, black, navy, red, yellow, rust, electric blue, burgundy, grey. Classic Polo has both double and single mercerized T-shirts. This season mercerized T-shirts make up 20 per cent of our collection. T-shirts with slogans or statements are everywhere. Statement T-shirts help people send a message without having to utter a word which is why they are popular, especially among politicians and celebrities. We expect to see a lot of statement T-shirts in 2017.
Tell us about the new collections or products. For the spring/summer ’18 season we are working with these themes: Tropical Floral, Safari, Neo-classics, Wear-to-work and Sports. In T-shirts we have used more of interlock, cross knit fleece, jacquard, 100 per cent cotton, double mercerized, suede finished fabrics and mélanges. Apart from our regular cotton and blends, we have used 15 per cent Lycra and 15 per cent of Modal. We are launching a new category – sportswear -- from autumn/winter ’17. The range will be unique in with zero-stitch merchandise. Fusing will be the technology which will give ultimate comfort to the wearer with minimum guarantee washes. Micro poly fabric will be the content of the whole range, assuring customers light weight garments plus best appeal to support sports freaks.
64 BRAND LEADERS MONTE CARLO
“We have tops with laser cut work” What’s new with Monte Carlo?
Sandeep Jain, Executive Director
We have tops, tunics, shrugs, shirts, T-shirts, shorts, denims and summer dresses for men, women and tweens in a host of designs and vivid colors. For men, the collection offers stylish and well-cut linen waist coats, which can easily be used to create a sophisticated formal look as well as modern ethnic attire. The collection also includes structured shirts and T-shirts in an eclectic mix of prints and patterns which you can team up with Monte Carlo denims, Bermudas, trousers or chinos. The color palette is vivid and summery, with colors such as dusty rose, yellow, green, blue, orange and more. Last season we introduced summer blazers and crop tops. This season we have introduced dresses and tops with laser cut work.
Tell us about your retail presence? Currently, Monte Carlo is available through large format stores like Lifestyle, Pantaloons, Central, more than 240 exclusive brand outlets and over 2000 multi brand outlets in
India. We have our website and are also available on other leading e-commerce portals.
How do you see the market for women’s T-shirts? Women love T-shirts, especially those between16 and 30. T-shirts can be paired with just about anything-- jeans, shorts, skirts and more. T-shirts come along with a lot of sub-categories like printed, graphics, different necks like V-neck, polo neck etc. A wide variety of colors has been introduced with styles such as printed, graphic, cutout details, embroidered, anti-fit and more. I’d say the women’s knitwear segment is growing at a rate of 20 percent. Price is not really an issue. If she likes what she sees, a woman can invest Rs 1500 in a T-shirt. To that extent super premium brands are popular among women. So this category has a bright and growing future in India. Global brands especially play a very important role in this segment since they have a wide variety to offer in terms of styles, colors and trends.
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DUKE
‘Demand for polyestercotton blended T-shirts, polo T-shirts is growing’ What are your expectations from the forthcoming season?
Kuntal Raj Jain, Director
We are expecting a good response and targeting 30 per cent growth from the forthcoming season. Also, the feedback from customers is good with respect to product, quality and style. Duke continues to make products that are value for money and has created loyal customers who will settle for nothing less.
Tell us about your retail presence? Duke is in over 4,000 multi brand outlets and 360 exclusive stores across major cities in India. We are at chain stores like Central, Reliance Trends, Arvind Retail, Aditya Birla Retail, Hyper City, Brand Factory, Spencer’s etc. Online, we are on Myntra, Snapdeal, Jabong, Flipkart, Amazon. We also have our own online shopping portal.
What are your expansion plans? Our expansion plans cover areas like active wear, thermal wear, winter wear. We are focusing on accessories too. We are expanding in different segments like footwear and also in new markets and diversifying in women’s and children’s wear. The expansion will create a centralized, multi-product engine for wholesale and retail distribution, supporting Duke’s long-term business growth in India.
What is your turnover? The current turnover is Rs 280 crores. We are aiming for Rs 500 crores in the coming years.
Tell us about the active wear market in India. Over the past few years, India has rapidly caught up with the wider global fitness trend. Driven by the country’s growing wealth, changing lifestyles, and rising urbanisation, an increasing amount of Indian consumers are becoming more health conscious and as a result adding new health and wellness routines to their hectic lifestyles. Rising incomes and discretionary expenditure in urban India have allowed people to focus increasingly on health and wellness as well as rising awareness of lifestyle diseases. Running, cycling and team sports are among India’s fastest trending exercises.
How different is the active wear category from performance sports category? Active wear serves the purpose of an active life mixed with a casual social life. They can be used for exercising and transitioning into casual wear. These clothes have more flexibility, style and comfort. Sportswear is sports specific and is more focused on comfort, functionality, and thermal functions of a fabric. A particular sport demands a particular type of gear and clothes.
Tell us about the T-shirt market in India. T-shirts is a high-growth category among men’s, women’s and kids’ apparel segment. Greater level of comfort, superior feel, affordability and fashion makes T-shirts an attractive category across consumer segments. T-shirts have graduated from being a uniform category to a multipurpose, multiuse, all-occasion apparel category across India and abroad.
What kind of innovations and value additions are done to T-shirts? Indian youngsters like a stylish look related to design, color etc. Along with cotton T-shirts, the Indian fashion market is also witnessing a huge demand for polyester-cotton blended T-shirts, polo T-shirts. In the years to come, demand for organic cotton-based T-shirts and those made from recycled products is expected to pick up across India. Such products are already in demand in many Western countries.
74 BRAND LEADERS URBAN YOGA
‘Homegrown brands like Urban Yoga have a bright future in Tier II, III cities’ Tell us about the brand?
Aditi Mirani, Brand Head
We manufacture 25 per cent men’s apparel and 75 per cent women’s. We have scented cotton sandesh T-shirts. We have bottom wear with eight silhouettes for different body types. We have jogger fits, straight fit track pants, tapered fits, layered capris, threefours, tights, foldable waist pants, and dhoti pants. Our range is almost 85 per cent cottonbased and only 15 per cent polyester-based. This season we did a Chakra collection and next season we are doing a varsity inspired collection called the Gurukul– there will be around 15 options in this range. We are looking to expand our accessories range so we can fully become a one stop shop for
all things yoga. We will introduce open toed socks, eye masks for meditation, incenses. In the next two or three years we see our revenue surpassing Rs 50 crores.
Tell us about your retail presence? We have exclusive brand stores in four cities and are present in about 24 Central stores, and in 20-odd Brand Factories. We are on Amazon and Myntra. We are looking to expand to more Central stores, creating kiosk stores in more malls across the country as well as exploring airport stores.
How different is the active wear category from performance sports? Active wear is now becoming synonymous with a certain lifestyle, whereas performance wear is for specific use.
Tell us about the active or yoga wear market in India? It is among the fastest growing segments in the apparel category along with night wear segment. But remains primarily an informal market. Yoga clothes are not worn only to yoga classes, they are used on a daily basis. Women dominate the segment with close to 75 per cent of the market. Most fast fashion brands have embraced active wear and added it to their range. Forever 21 and H&M now have an active wear segment and even more specifically a yoga section. Forever 21 sells yoga mats. Uniqlo has added an active wear segment. Specifically the yoga apparel market is dominated by North America. People in the West have embraced active wear as a lifestyle category and not just for workouts, yoga classes etc. This category is going to grow at an exponential rate in India and we are preparing ourselves for this growth curve. People are moving toward more breathable and smart fabrics- we will see a lot more use of cotton, organic cotton, aroma scented fabrics etc.
Is there competition from global brands? Homegrown brands like Urban Yoga have a bright future in Tier II and III cities. Global players in the Indian market have high average price points which can be intimidating to a large chunk of Indian audience.
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76 BRAND LEADERS OCTAVE
‘The market is really good for licensing clothes’
Abhishek Arora, Partner
Tell us about the brand?
demand and help you grow as a brand.
Octave does boys’ brand aimed at six to 18 years from the middle class. The price point for T-shirts begins from Rs 499 and goes up to Rs 899. We use a variety of fabrics such as pekay, melange, coupled with different textures.
The market is really good for licensing clothes. We don’t use mercerised or organic knits but give a better treatment to our fabrics, yarns etc. The quality is always at par with these fabrics types.
We have a separate brand for girls called ‘Mettle’. We do active wear but on a small scale. Jogging suits come under this segment.
How do you see the knitwear segment? The use of knits has increased over the years, owing to lifestyle changes. People like to wear casuals, of which knitwear is an inherent part. Its high on comfort compared to other fabrics. Offices too are accepting knits now. This is because of styling. The share of knits in the kids’ segment bottom wear is about 40 per cent and in upper wear is 60 per cent.
What are the style trends? We are currently preparing for summer 2018. In kids’ wear, round neck and collars are popular. Winter definitely demands some changes in strategy, like hoodies demand goes up.
Yuvraj Arora, Partner
We are not into licensing yet but we may start in the near future. Such clothes are in
Why have big brands failed in this segment? Pricing could be the reason. We are particular about pricing and that is why we are growing continuously. And the more you grow, the more you try to live up to consumers’ expectations. Because people wait for your products, we innovate. It was not possible in the past but now a brand based only on knits can establish itself. Knitwear is increasingly seeing growth in terms of product innovation and variety.
How different is the kids’ range from adult clothing? We have the same retailers and distributors for the adult and kids’ category. The clientele is different but designing and other treatments on the product are almost the same. The major difference comes in colors. Kids’ clothing is brighter while men’s clothing is marked by subtle colors.
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JUELLE
‘Funky and casual T-shirt concepts are in trend’ What are your expansion plans? We are expanding our top wear range by introducing new concepts in shrugs and crop tops. We will have new categories like: lounge wear, light tracksuits, light fashion jackets, dresses and gowns. We are working on a more urban street wear kind of chic fashion in addition to regular basic trends.
Guneet Singh, Japneet Singh Directors
We are working on new colors and prints. Lightweight pre-winter goods are in demand. It has been doing well from the last two years. This year also since winters are not heavy light weight or pre winter stuff will be more in demand. Shrugs and crop tops are expected to be in high demand. We are present pan India through 1,500 MBOs. We closed the last financial year at around Rs 40 crores and with the right kind of product mix and favorable market policies we hope to continue the projected growth of around 15 to 20 per cent every year.
How is the women’s T-shirt market? The age group which prefers T-shirts is the school and college going crowd, which opts for casual, relaxed and comfortable clothing in their day to day wear. When we move higher in the age group, women prefer tunics, dresses or kurtis, which are more in sync with the Indian style of dressing. The average price of women’s T-shirts is usually Rs 499 to Rs 799. But depending
upon the brand’s position it can go up to Rs 1,999 and women don’t mind picking up super premium brands in such a range as well. For specific occasions or evening wear or party wear, super premium brands have a place but for day to day casual wear, for day to day college or shopping the economy range up to Rs 799 or Rs 899 is preferable.
What are the style trends for women’s T-shirts? Colorful polo T-shirts with collar are in style since they can be tucked in. They give a corporate look. In casual category, neon with digital prints, Swarovski and sublimations are in high demand. Crochet, brasso, net concepts are also selling good this season.
What are your expectations from the forthcoming season? We are very optimistic about the coming season. We hope the season will be better than the last one and new collections will be accepted by retailers and subsequently our end consumers.
How do you see the segment developing? The T-shirt segment in India sees bright prospects as most women are moving from ethnic to western wear. With growing awareness of international fashion and influence of social media, youngsters are demanding more funky and casual T-shirt concepts.
78 BRAND LEADERS CONFIDENCE
‘Growth prospects of loungewear category are bright’
Ankit Aggarwal, COO
What are the latest styles and trends in T-shirts?
Shed some light on your line of lounge wear?
Lots of self knitted fabrics and prints are in our basket of products. For summer, mostly light and pastel shades are popular. The preferred fit is whatever that’s comfortable. All styles are doing well -- polo, round neck or crew neck. Fancy yarns, self knitted, mix n match of different fancy yarns are used in basic knits and fashion knits. Mercerized T-shirts have a great feel but are expensive.
Confidence has been a frontrunner in lounge wear for many years owing to the quality, design and cost friendliness. We have pajama sets, Bermuda sets, and a three piece pack which combines T-shirts, pajamas and Bermudas. This season we have lots of self fabric jacquards, prints and pastel colors.
What’s on offer for the forthcoming season? Winter season has a base of dark and medium shades. Prints and knitted fabrics are the style base for us. We hope to get a better response this winter owing to the early festivals and stock deficiency in the market. If winter is on schedule, we can expect the best.
The purpose of lounge wear has changed a lot now from its early days. Now it is worn to remain comfortable yet make a fashion statement while at home or when hanging out friends for coffee or while going out for walk in the morning or evening or while spending a joyful Sunday with family and friends. Lounge wear has become a style statement for the fashion conscious generation. It would be wrong to tag this as home or sleep wear. The growth prospects of this category are bright.
BRAND LEADERS
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T T LTD.
‘This season, we have introduced a new knitwear apparel brand -- Hi Flyer’ Has the entry of global brands affected the knits category?
Sanjay K Jain Managing Director
It has, in the premium segment. Consumers prefer buying foreign brands even if local brands offer better value for money. This advantage will stay as long as Indian brands’ standards of service, consistency and detailing don’t improve dramatically.
How have knits category scored in online retail? High priced knit sales are limited online – it’s more value for money which sells. Online is still a channel and not a profitable segment due to high overheads but we all are pushing sales as this is the future in distribution. Maximum online sales of knits come from Tier I and II. Till now, just 0.5 per cent of our sales come from online. However, we have a target of one per cent by the end of this year and three per cent in the next two years.
Which of your retail formats contribute most to sales? Both large formats and MBOs are showing good growth for our brand. Our EBOs still contribute a small percentage.
How is the market divided between brands and non-brands? Non brands are losing share to brands. This process is expected to continue hence, the concept of branding can’t be ignored by low value players also.
Elaborate on the challenges and opportunities of offline and online retail? Both will stay. Sizing and fabric feel is a big challenge for online garment sales. However, ease of comfort and growth of organized brands would surely help online business as people will be more confident in buying known brands.
Are consumers brand conscious when buying this product category? Yes, brands do matter, but designing also plays a big role.
What are your expectations from the forthcoming season? Non metros give us more sales and we expect that with good monsoons and rural incomes rising, the trend would continue. We expect a 25 to 30 per cent growth. This season, we have introduced a new knitwear apparel brand called ‘Hi Flyer’, which has variants in cut, style and color combinations. It has mélange colors and new shades. Expansion of the range would be in Hi Flyer, while we keep pushing our basic line under TT, which still has a big potential for us.This year we plan to penetrate deep in existing markets rather than spread out much. Our focus is to increase sales in districts where we are already present by introducing new products.
80 BRAND LEADERS MUSTANG
‘We have fun colors and quirky designs’ Tell us about the brand?
Lubeina Shahpurwala, Partner
We make socks, vests and briefs and also biker sleeves, caps, mittens and handkerchiefs. The price range varies from Rs 145 to Rs 199. While selling online, we package and sell three products per pack. The next collection is full of fun colors and quirky designs. We have focused on various prints and patterns. This season we have launched bright, pastel colors and quirky designs for teenagers and working professionals. We have a very strong network in India and will look to expand further into international regions, such as the US, in the near future.
How has the socks category evolved? With increasing awareness and globalization, the element of brand consciousness for socks has increased to a large extent.
From just a mere commodity to a fashion statement, people have started considering new designs, prints and funky colors that will complement their outfit. People buy funky socks for office. They buy compression and trekker socks for adventure. In today’s day and age, socks have become one of the accessories people will buy even though it is an impulse buy. Since socks are a primary product, the demand for basic and fashion products is 75:25 respectively. With changing fashion trends, this ratio is all set to have a tremendous change.
Has online emerged as a big channel for retailing? Socks are a necessity product for all, right from young to older generations. Since Tier II and III cities have been exposed to online retailing, there has been a hedge of 50 percent from Tier I and 50 percent from Tier II and Tier III cities. The knitting industry has been dependent on offline retail as a way to reach out to its consumers. But since the last five years, online retail has been a go-to for traders and consumers in this industry. Since socks are an impulse buy, any medium that helps us increase our overall brand awareness and product reach is an advantage for us. The biggest advantage online offers is the ability to offer a large variety of styles, designs and patterns, essentially giving a great boost to the overall distribution of the brand. Online retailing has changed the face of the fashion industry altogether. Online retailing has helped in accelerating the growth of the segment as it helps brands like us to showcase our products to a much wider audience and a better distribution opportunity. The online market has enabled us to reach out to potential consumers, but also to traders and distributors in niche markets all at one click. The biggest advantage is that it’s a huge market accessible at any given point in time.
Do you think India is ready to buy knit products which are in the super premium category? Price over quality has generally been the Indian mindset. But with the changing dynamics and increase in disposable income, consumers have started investing in and buying products in the super premium category. Although this is mostly prevalent in the metros, it will start reflecting in Tier II and Tier III cities as well in the near future.
BRAND LEADERS
81
ONER
‘Women are more interested in designs and variety than a premium brand’ What are your expectations from the forthcoming season?
are opening exclusive brand outlets and expanding in South India.
Expectations are huge. We are placing ourselves as a brand with a strong knitwear premium product line.
How do you see the women’s T-shirt market?
Tell us about new collections? Sudarshan Jain, Managing Director
We are working on premium fabrics. Printing and embroideries will be used extensively.
What is your retail presence? We are in more than 700 showrooms all over India including large format stores like Shoppers Stop , Reliance, Globus etc. We
The women’s knitwear segment in India is growing in direct proportion with young population. It’s a huge market because of the comfort. Western dressing is being accepted in small cities. Higher price tags are being accepted. Lots of value addition in terms of digital printing, embroideries, quality fabrics in superior blends adds to the premium look of the T-shirt are being done. In the end, it depends on the market segment you are catering to. Women between 12 to 25 years love T-shirts. Printed and soft feel fabrics are popular for women’s T-shirts. However there are problems. It’s the lack of product innovation. Local brands and retailers are not ready to experiment with designs and have mentally capped the price point of T-shirts. Brands should make the product exciting and appealing. Market for super premium brands are growing in a limited way. Women are more interested in designs and variety than a premium brand. Moreover wearing habit is also different. Women change their wardrobe much faster than men so the economy factor is also there while buying.
What about the global brand play in this segment? They are doing good but have limited variety because they need to take care of the product mix. There is no knitwear specific women’s wear brand.
82 BRAND LEADERS RAGE
Sometimes experiments cost a lot but learning always helps us grow. Akash Bansal, Director, Design
Tell us about the brand?
What are the style trends?
We opened in 1995 and do women’s wear. We have Indian ethnic, kurtis, Indowesterns, shrugs, throws, cardigans, tops, jackets, sweatshirts etc. We wish to double growth in the next three years and will focus on value addition and quality. We are known for design, innovation and product exclusivity. We will enter summer wear next year with western clothing. We may have T-shirts also, but not basic. There will be a lot of value addition in this category.
There is a lot of mix and match, printing, embroidery etc, in the knitwear segment. Digital printing has come in a big way, so lots of innovation and design development are happening.
What’s your retail network?
A lot of innovations are happening in circular knits. Circular knits are popular because they are easy to handle and transform into a product. Circular knits have not only been used for summer but winter products too.
We are present pan India with 600 MBOs and 10 EBOs. We are with department stores. Currently, the focus is on shop in shops. We are planning to add 50 more shop in shops this financial year. We will soon be working with big retail chains.
Tell us about the knitwear segment.
women’s
Knitwear industry has undergone a lot of transformation. Times are tough for stakeholders owing to a surge in competition. International retail chains are establishing themselves in a big way, therefore, raising the bar in everything, from fashion, retail, price point and innovation to exposure in marketing and manufacturing practices. Traditional knitwear practices are disappearing fast. Homegrown players have to compete with international ones in fashion. But this is not the only challenge. Domestic knitwear players also need to keep Indian middle class women’s needs in mind coupled with reasonable pricing. And not being in sync with current practices means you will be wiped out. You can’t survive without innovation. We from day one have been experimental with our knitwear line. That makes us stand out. Sometimes experiments cost a lot but learning always helps us grow. The prominent change is in the retail sector. Earlier manufacturers used to dictate to retailers. But now one surrenders to retailers’ demands as to what is to be given and on what basis. Now there are concepts such as outright basis, sale or return basis, shop in shop, stock correction etc. Today the buyer is the king, they have enough options in their kitty. If you don’t fall in line with them, be ready to lose your business.
We are more into value addition and design. We play with a lot of colors and have been continuously experimenting with yarns. The collection which we are working on is premium and inspired by tribal culture.
Thermals are made of circular knits. Anyone can play with circular knits. Flat knits are undoubtedly tough to play on. Flat knitting is bearing the brunt and experiencing a fall in popularity.
BRAND LEADERS
83
Presenting a premium range of men’s inner wear, so attractive that it’s barely legal. Now, available at a shop near you.
B r ie f s
| Tr unks
| V es t s
Manufactured & Marketed by : BODYCARE CREATIONS LTD. D-30, Sector - 63, Noida - 201301, India | Tel: +91 120 4686400 | Fax: +91 120 4686401 CUSTOMER CARE: +91 120 4278669 | customercare@bodycarecreations.com
For Trade Enquiries: +91-9899241781 | sanjay.sindhu@bodycarecreations.com
84 BRAND LEADERS BODYCARE CREATIONS
‘The knitwear industry all over the world is at the threshold of far-reaching changes’ Please introduce us to the brand?
Sanjay Davar, Managing Director
We make men’s and women’s inner wear and outer wear. We have neon colors in innerwear. We are going to expand in gym wear, yoga wear and sleep wear. We are retailed through 8,000 to 10,000 retailers and have a strong presence in metros and semi metros. We looking to enter more Tier II and III markets. In 2016-2017 our revenues was Rs 165 crores within two or three years we will reach Rs 300 crores.
How is the knitwear market in India? About half of the domestic apparels market in India is ruled by knit wear. Once restricted to knitwear hubs of Ludhiana and Tirupur, the industry now has several hubs all across the nation, like Bangalore, Rajasthan and Gujarat. MBOs contribute to bigger knitwear sales.
Are consumers brand conscious when buying knitwear products?
BODYCARE
About 70 per cent consumers are aware of brands and trends. Price plays a very important role in knitwear products. Customers look for discounts and offers. Many companies give large discounts like a flat discount, buy one, get one free etc.
Has online retail emerged as a big channel for retailing? Retail stores have been losing out to online shopping on several grounds. An online store provides discounts on regular stocks and has a number of brands under one platform. Due to easy access to the internet on mobiles phones and computers, customers can shop any time. Retailers have seen a continuous decline of sale in recent years as more people are buying online. However, the knit segment has not been affected as much as many customers still prefer to buy through retail outlets. Purchasing online is still not so popular in small cities and people trust their local shops. So you can say traditional retail is still strong in India. Retail accounts for over 10 percent of India’s GDP. The retail sector in India is certainly a beneficiary of growth of the Indian economy, but it is also a key cause and catalyst of that growth, and will remain so for at least 15 years.
What are the prospects of the knitwear category in India? The knitwear industry all over the world is at the threshold of far-reaching changes. The removal of quantitative restrictions has thrown open both opportunities and threats, especially for low-income economies seeking to industrialise through the garment sector. In India this sector contributes about 14 per cent to industrial production, four per cent to the GDP and 11 per cent to the country’s total export earnings, of which 45 per cent comes through the share of knitted garments.Over 95 per cent of the nation’s output of woolen and acrylic hosiery comes from Ludhiana. But in the absence of any recognizable brand, consumers mostly make their selection entirely based on the liking of styles, fits and range of prices. There is absolutely no assurance of product quality.
BODYCARE
BRAND LEADERS
BODYCARE WOMEN’S INNERWEAR
PERFEC T FIT | PERFEC
T CO M FO R T | PERFEC
TL Y SO F T.
Manufactured & Marketed by : BODYCARE CREATIONS LTD. D-30, Sector - 63, Noida - 201301, India | Tel: +91 120 4686400 | Fax: +91 120 4686401 CUSTOMER CARE: +91 120 4278669 | customercare@bodycarecreations.com
For Trade Enquiries: +91-9899241782 | hkjaiswal@bodycarecreations.com
85
86 BRAND LEADERS TANTRA
‘Kids’ category has a huge future in India if explored intelligently’
Ranjiv Ramchandani, Director
Tell us about your new collections?
Tell us about your retail presence?
Besides regular printed tees, Tantra also offers a full range of pre-winter and winter merchandise. As of last season, Tantra expanded the kids’ range to add a babies’ range, Tantra Babies.
We have recently opened an EBO in Kuala Lumpur, India’s first indie t-shirt brand, in a foreign country. Kids are the same everywhere, here, ...or around the world. And, Tantra’s brand promise of ‘First World Creativity’ at ‘Third World Prices’ is a natural fit for pocketfriendly, campus youth around the world. Additionally, it’s make-in-India creativity or India’s soft power which is showcased to the world! We hope to replicate this experience around the globe, wherever 15-29 year olds exists. Tantra Kids is available across India and abroad via a host of channels – EBOs, MBOs, shop in shops and via distribution. We are also available on all major online channels, including our own website.
Tell us about the kids’ T-shirt market? This category has a huge future in India provided it is exploited intelligently. Many global players have stepped into this vacuum. The kids’ market is perhaps bigger than the unisex or women’s market in knits. It is not difficult to build a brand on the capability of knits. But it requires focus, because children’s buying patterns are segmented via age parameters. Thus, creative for a two year old is vastly different from creative for an eight-year-old. Consumers are ready to spend Rs 1,500 or so on a T-shirt. After all, parents want the best for their children. Licensing (whether tactical or strategic) is important and helps the brand command a premium. Children are influenced by television, movies and super heroes, and clothing completes the marketing spectrum.
What are the style trends? Round neck and polo works best for boys, while V-neck and round neck work for girls.
BRAND LEADERS
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88 BRAND LEADERS TOONZ RETAIL
‘We are entering ethnic, party wear with -- Super Young Celebrations’ Deepak Pareek, Head (Sales & Operation)
Tell us about your brands? Mumbai-based Toonz Retail deals with everything related to children. We offer about 2,000 products for children. Toonz Retail opened its first store in Bangalore in 2010 and has more than 100 stores today. We target the premium segment and have 35 to 40 brands under our banner. Efforts are on to rope in good value for money brands in our portfolio. We launched two brands in 2012 -- Wow Mom and Super Young. Wow Mom is for infants and Super Young is for toddlers. The age group for Wow Mom is up to three years, we offer knit sets. For three year olds, we have woven and embroidery products. The price point for T-shirts under this brand is Rs 199 and goes up to Rs 399 for a better packaged product. Super Young targets children 3 to 12 years and is majorly into fashion products but recently we added caps, bags and accessories. We deal in casual fashion and are entering ethnic and party wear with a brand called ‘Super Young Celebrations’. It is a sub brand of Super Young.
What is your retail network? We are present across India with 100 plus outlets. Toonz Retail is strong in South India and maximum number stores are located there. We have about 45 stores in the South; Karnataka alone has 21 stores. In the North there are 35 stores. We have about seven to eight stores in the Northeast. In the West, there are about 15 stores. In Maharashtra,
we are planning to expand in Satara, Kolhapur, Sholapur etc. Plans are to add seven outlets in the next two months. This financial year we are planning to come open 150 stores. We have a presence overseas, primarily Saudi Arabia. Our second market would be Egypt. We are eyeing Australia also.
How are market conditions? Every child born is a potential customer for us and this contributes to our growth. Spending on kids’ knits has increased over the years. The market was not so good in the past because parents used to have three to four children and would not care much about their appearance or well being. Today, things are different. Both father and mother are earning and have at the most two children. They have enough time and money to spend on their children. Volumes are increasing but it is also a fact that the failure rate is high in kids’ segment. There are cost related issues. Margins are not as good as in women and men’s segments. You can’t play with many fabrics.
Did demonetization pose any problems? We expected a fall in retail business but the opposite happened. Usually, we have 60 per cent retail through cash and 40 per cent through cards. But during this phase, sales went up and larger share was contributed by plastic money.
BRAND LEADERS
89
NEVA
We do a lot of fabric innovation
Anuj Jain, Brand Head
Tell us about the brand?
What are the new innovations?
We are a brand based on knit wears for the most part, having thermals, T-shirts, bermudas, capris, boxers in terms of product line. We do active wear too and may add a few more categories in near future. Our USP is that we focus a lot on fabrics on the innovation front. Technically, fabric innovation makes up a large part of our experimentation. We are a quality conscious company which caters to men, women and children.
We keep innovating. Our focus has always been on knit fabrics. Experimentation is happening on almost every category we do, especially sweat pants and T shirts. Graphics of varied types have come into play. Talking about the types of t shirts, round and polo necks are always popular. Fashion T-shirts are popular among youth while basic stuff is preferred by mid aged and aged people. Skin fits come in fashion tees while the normal fit is followed in basic T-shirts.
Please give us some insight into retail? We are present pan India and well established in the northern part of the country. We are available all across the country with about 7,000 MBOs and 150 EBOs. About 100 more EBOs are lined up for launch by the end of this financial year. We are well available thru large format retail also. As far as state-wise expansion is concerned, we are eyeing at the UP market as a whole.
How do you see the T-shirts category from your brand & industry’s point of you? We do both fashion and basic tees and they vary according to design and fabrics. We do 65 per cent basic and 35 fashion. We use fabrics with elasticity and stretch. Spandex and has come into the fashion section. Mix and match fabrics are there. We have totally cotton based fabrics. We use mercerised cotton as well as sweat free fabrics. Then we have functional fabrics made of different yarns and combinations. Technology driven fabrics and fine knits are also popular.
How is the knitwear market? The knitwear industry is certainly growing when compared with other textile categories. Especially the market for summer knits is growing exponentially. But knitwear alone is not enough for you to grow. You certainly need to add other products as well. That is the reason we have been continuously adding to our kitty. For example, we have other textile products such as denim, cargo, shirts, which are available in our EBOs. Then there are winter products that are available in our EBOs and not MBOs. But the knitwear industry is bound to grow. People are becoming health conscious, so there is active wear, and the knit industry plays a significant role in the active wear segment. Online too is pushing growth forward in knits segment. We have our own website and witnessing a promising demand for our products through this channel. The response to any particular category depends largely on your market. Today the market is slow and on a recovery mode post demonetisation. Also policies affect a big deal. But still the response to T-shirts, bermudas and active wear has been good so far.
90 BRAND LEADERS NO NASTIES
‘We are seeing a steady rise in demand for organic clothing’ Apurva Kothari, Founder
Tell us about the brand. We opened in 2011 and based in Goa. We do organic T-shirts and cater to men, women and children. We make only 100 per cent organic, 100 per cent fair trade cotton clothing. Our design philosophy is not to follow or predict trends but to make classic, timeless pieces. We are seeing steady growth and hope that continues. It would be great to see more brands launch ethical and sustainable clothing. In future, we will launch new product categories such as kids’ clothing, bags and accessories, and perhaps home products too.
How do you define an organic T-shirt? Organic cotton is cotton that is produced, and certified, according to organic agricultural standards. Organic cotton is grown as part of a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and
locally adapted inputs in place of chemical inputs which can have an adverse effect on the farmer and the environment. Organic cotton production combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved. Organic cotton is grown from organic cotton seeds. Organic cotton production uses 71 per cent less water and 62 per cent less energy. Organic cotton is 80 per cent rain-fed, which reduces pressure on local water sources. The absence of chemicals also means that water is cleaner and safer. Growing organic cotton keeps farmers and their families safe. They are not exposed to toxic chemicals in the field or through their food and water supply.
How are organic T-shirts doing in India? We are seeing a steady rise in demand for organic clothing. There is awareness of the benefits and importance of organic farming. People are asking for sustainable and ethical clothing. Right now, the majority of our buyers are from Tier I but we do see about 20 per cent sales from Tier II as well.
Is price a constraint? People are willing to pay extra but as demand for organic clothing increases, and it becomes mainstream, prices will drop due to efficiencies of scale. Right now the supply chain is limited to smaller niche brands like ours working with smaller size mills and the costs are higher due to that. However, it’s necessary to realise in the end someone is paying for cheap, fast fashion, and it’s usually the cotton farmers and factory workers who have to take on this burden. So it’s not fair to be only looking at the financial cost and ignoring the social and environmental costs of your purchase.
Are organic T-shirts possible only in cotton? When you say organic T-shirts, you are almost always referring to organic cotton – especially if it’s certified organic. Other sources such as hemp and bamboo are great alternatives, but are still in the relative early stages of technology use, and are not usually certified organic. It’ll be good to see that happen too.
BRAND LEADERS
91
VAMI
“Our leggings are made with the finest cotton� Vineet Aurora, General Manager, Marketing
Tell us about the brand? Vami was opened in 2012 by the Bonjour Group, the first Indian multinational socks brand. Vami is the only brand in India using high-end technology to provide a hygiene based product line to its customers. We cater to women with churidars, ankle length leggings, capris and blouses. The target audience is women who are on the lookout for exercise apparel. The products represent the pinnacle of Indian craftsmanship and are unsurpassed for their quality and attention to detail. The ankle leggings can be perfectly matched for office, parties or casual wear. These can be teamed with crop tops, long tops or kurtis. The entire product line is comfortable and stretchable to fit body types. Leggings are made with the finest cotton. The fabric is designed to maintain its shape wash after wash.
What sort of brand communication do you do? Vami has initiated a web series to make women aware about various yoga postures that will help them on the way toward a
healthy lifestyle. Vami encourages every woman who is a multitasker and flitting from home to office and back to home to steal a moment whenever they wish and indulge in asanas.
What is your retail program? Vami has 15 exclusive brand outlets and is also available on Amazon, Flipkart, Snapdeal et al. The brand has become the market leader in north India.
92 BRAND LEADERS UFO
‘We believe innovation and styling drive any product’ What is the USP of your brand? Children are becoming more and more fashion conscious. At a very young age they choose their own garments. So we at UFO try to cater to children’s fashionable needs. We make trendy, comfortable garments for children. Cut and sews have become the new thing, so we have brought in smart, international cut and sew garments.
Abhishek Agarwal, Director
We believe innovation and styling drive any product, whether it is an Apple product, or an FMCG product or children’s wear garments. At UFO we are constantly innovating to suit consumer needs. We play with new innovative fabrics and simple yet fashionable silhouettes. We work with an inhouse design team to create a mood board, story board, colour board, look board for our different stories. These stories with the help of our design team are finally executed into beautiful designs.
How do you see the children’s T-shirt market? The children’s T-shirt market is huge. It is dominated by the unorganized market and
is very price sensitive. But consumers are ready to pay for good quality and unique products. It is a high volume, low margin category. Licensing is a huge segment and a great opportunity area for organized brands to cash in on.
AZZO
“We have added sweat shirts” Tell us about the brand?
Parmjit Singh, Partner
We are a mid level brand. We do jackets for men and women. This winter we will have sweat shirts for men. The reason is that winter spells are getting shorter, and the demand for pre winter and light winter wear products is going up. Also jacket manufacturing is complicated when compared with sweat shirts and other pre winter products. From a business point of view, sweatshirts make sense. They come to use at the beginning of the winter and remain in demand till winters end. We have round neck as well as hoodies. Smart fit has been followed in the range. We are testing the waters with sweat shirts. If this works out, we will keep adding product categories in future.
What are the style trends? Earlier, people would prefer heavy jackets. But now people ask for light weight jackets, except for hilly areas, where the demand for heavy winter wear is still strong owing to
climatic conditions. As for trends in fabrics, knitted cloth has been the new entry. It is a stretchable fabric. Earlier heavy fleece was in use, but now it is quite light in weight and appearance.
What is your retail formula? We do the entire north and north east as well. Now the focus is on consolidation. We wish to add more MBOs.
How is the market? This time we are expecting a good season. Production as a whole in the industry is low, so there is every chance for good growth if winter happens to be favorable. In the past, the flow of Chinese goods into the garment sector was quite high as far as yarns and fabrics are concerned. Now it is seeing a dip. We have everything available in India. We get all the material from Ludhiana. But retail has become very complex. Retailers are very choosy. They see the mood of the market and respond accordingly. For a manufacturer it is not that easy.
BRAND LEADERS
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GOTS
‘Kids’ wear and undergarments are two prominent areas for organic clothing’ Please tell us about GOTS.
Sumit Gupta, Deputy Director Standards Development & Quality Assurance
GOTS is the world’s leading standard for processing of organic textiles. It mandates use of minimum 70 per cent organic fibers and includes both environmental and social criteria. Key provisions include: a ban on the use of genetically modified organisms, hazardous chemicals such as SVHCs, azo dyes, formaldehyde etc while requiring strong social compliance management systems and strict waste water treatment practices. We work with leading global brands, NGOs, media and local governments to increase support and awareness to organic textiles worldwide. GOTS is officially endorsed by the government of the United States for labeling of organic textiles in the US. Which category or product has significant use of organic? Kids’ wear and undergarments are two prominent areas for organic clothing. Men’s and women’s T-shirts would be the third prominent sector. Besides home textiles like organic towels and bathmats are also popular products in organic textiles. There are many other categories in woven products.
How is organic beneficial? The benefits of organic textiles start with organic fibers like organic cotton, wool, silk etc. Farmers can save seeds; they are protected from exposure to toxic pesticides and so on. GOTS-certified organic products are produced in factories that comply with strict environment and social compliance requirements. The standard is stringent, yet there is sufficient scope for design innovation and experimentation for new product development.
Tell us about the organic knitwear market in India. It is flourishing. Several buyers are sourcing knitwear from India and regions like Tirupur and Ludhiana are particularly known for these products. With enhanced government push for the garment sector, organic knitwear
has great potential to grow in both fields -fabrics and garments. Some Indian sellers make fake promises and incorrect claims to buyers, which tarnishes the country’s image. The industry needs to be careful and should report such activities.
Do people understand what organic is? Organic textiles are certainly popular in developed economies. But they are more popular in Germany and other European countries as compared to the US or Canada. Japan is also a serious market for organic textiles. So awareness varies with geography, economic conditions etc. People do understand the meaning of organic but I feel we still need to engage the online and offline media in a much larger way to enhance people’s understanding about important aspects of sustainable supply chains. Consumers must understand that buying GOTS-certified organic products means much more than the effect on the skin -- it means a cleaner footprint of the product as a whole.
How do you compare organic knitwear in India with markets abroad? There are very few brands in India selling organic knitwear but there is a market, and consumers are buying -- at a premium sometimes. In developed economies, the market for organic textiles, both wovens and knits, is bigger. The number of players involved is higher-- both in terms of sellers and other stakeholders like media, bloggers, government etc.
WHERE IS THE MARKET FOR ORGANIC T-SHIRTS? In India, it’s Tier I and Tier II, where people have higher disposable incomes and also awareness about the concept of organic textiles. However one can sell the product anywhere if sales team at the retail store is well informed about it and is able to explain the associated benefits to the potential customer.
94 RETAILING Knitwear makers balancing offline & online retail As omni channel retail gains ground, most brands are striking a balance between traditional and online retail formats. Indeed online retail has given a huge boost to the overall T-shirt segment especially in nonmetros. And stakeholders are pushing up growth by pricing their products right, write Prerna Sharma and Ajay Goswami
The knitwear industry all over the world is at the threshold of far-reaching institutional changes. Removal of quantitative restrictions has brought about important implications and thrown open opportunities as well as threats, especially for low-income economies seeking to industrialise through promotion of the garment sector. This sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic product (GDP), and 11 per cent to India’s total export earnings of which 45 per cent comes through knitted garments. Over 95 per cent of the nation’s output of woolen/ acrylic hosiery comes from Ludhiana. The textiles sector is the second largest provider of employment after agriculture. The Ludhiana knitwear industry is one of the biggest knitwear clusters in Asia but it lacks a branding, an image that promises consistent hi-quality and conveys the personality it deserves, both in the domestic and international market. In the absence of any recognizable brand, consumers mostly make their selection entirely based on styles, fits and prices. There is absolutely no assurance for product quality. Indian knitwear industry’s stooping growth percentage in the past years cannot be neglected despite innovations and experimentations in woven fabric. A study by consultancy firm Wisedge says about half of the domestic apparel market in India is ruled by knitwear and about 45 per cent in exports. Once restricted to the hubs in Ludhiana and Tirupur, the knitwear industry now has several big-small joints all across the nation like Bengaluru, Rajasthan and
Knitwear garment makes up 45 per cent of total export earnings Non metros have emerged a strong market for knits Most brands follow omni channel retailing, strategy Online retail expansion has given a boost to knits market Demand is more for value for money knits in online retail Brick and mortar stores are doing good business too Price plays an important role in sale of knitwear products in India Vapi in Gujarat. Sanjay Jain, Director, TT Ltd, informs, “Knits is doing well and we see growth due to its taking in many categories from the traditional woven usage. Both LFS and MBOs are showing growth for our brand.” Lubeina Shahpurwala, Partner, Mustang, also agrees and says, “In a retail outlet, be it LFS or MBOs, the ticket value of socks is low as compared to other products, which in turn, results in less store space.”
RETAIL: A BALANCING ACT BETWEEN BRANDS AND NONBRANDS When it comes to apparel retail, there is a constant tussle between branded and unbranded clothing to gain major traction. And as Jain says consumers prefer buying foreign brands even if local brands offer better value for money. This advantage will
stay till Indian brands’ mental framework of service, consistency and detailing doesn’t improve dramatically. Talking about the most lucrative market, he says “For us, nonmetro gives more sales and we expect with better monsoons and rural income rising, the trend would continue.” Continuing with the same sentiments, Vandana Saxena, Corporate Communication Manager, BodyCare Creations, adds, “Most online selling comes from metros and Tier I, II cities. Many customers still purchase form brick and mortar stores as they don’t rely on online sale and have not changed their buying habit. Purchasing through online is still not popular in small cities and they trust their local shops more.”
EMERGENCE OF ONLINE RETAIL, A BOON IN DISGUISE Online retailing has changed the face of fashion industry altogether in India. Online retailing has helped in accelerating the
RETAILING
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Online store provides discounts on regular stocks and have a number of brands under one platform. “Due to easy access of Internet in mobiles phones and computers, customer can shop and buy the product any time they feel like. Retailers have seen continuous decline of sale in recent years as more and more are buying online. However, the knit segment has not been impacted much as many customers still prefer to buy through offline retail outlets,” observes Saxena.
Lubeina Shahpurwala, Partner, Mustang “The knits industry has been dependent on offline retail as a way to reach out to its consumers but since the last five years, online retail has been a go-to for traders and consumers in this industry.” growth of the segment as it helps brands to showcase products to a much wider audience and a better distribution opportunity. The online market has not only enabled brands to reach to potential consumers but also to traders and distributers in niche markets all at one click. As Jain says “The biggest advantage of is a huge market accessible at any given point in time. TT’s only 0.5 per cent sale is happening through online. The company has a target of making it 1 per cent by end of year and 3 per cent in the next 2 years.” In this era of omnichannel retailing, the shopping experience of knitwear is still a question mark when it comes to e-commerce. Jain explains, “Online is still a channel and not a profitable segment due to high overheads – we all are pushing sales here as this is the future in distribution.” Shahpurwala agrees and explains the knits industry has been dependent on offline retail as a way to reach out to its consumers but since the last five years, online retail has been a go-to for traders and consumers in this industry. “Since socks are an impulse buy, any medium that helps us increase our overall brand awareness and product reach is an advantage for us. The biggest advantage online offers is the ability to offer a large variety of styles, designs and patterns, essentially giving a great boost to the overall distribution of the brand.” Offering insights into shoppers’ sentiments towards online buying, Saxena says retail stores generally operated in the traditional lines of business except a few superstores that brought in certain modification in their business patterns but the advent of online shopping has put an end on them because they had been losing on several grounds.
Giving price point perspective, Jain explains high priced items sales are limited online– its more value for money which sells. Shahpurwala informs, “Our price range varies from Rs 145 to Rs 199. While selling online, we package and sell three products per pack, which has an advantage in selling online as it is more feasible from a logistics and distribution angle.” Saxena is of the view that in online selling, only few end consumers give good price while 70 to 80 per cent are still buying and searching competitive price products.
Sanjay Jain, MD, T T Ltd “Knits is doing well and we see growth due to its taking in many categories from the traditional woven usage. Both LFS and MBOs are showing growth for our brand.”
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CONSUMERS’ ACCEPTANCE
Researchers and findings show that about 70 per cent people are aware of the brands and trends in the market. Price plays an important role in buying knitwear products. Many customers look for discount and offers as some companies give large discount like buy one get one free etc. Having gauged the market readiness, the major question that needs to be answered is what sells
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the most – basic or fashion? To this, and as Saxena says assortment planning is a process whereby products are selected and planned to maximise sales and profit for a specified period of time. The assortment plan considers the financial objectives and
96 RETAILING TT plans to penetrate deeper rather than spreading its wings in other markets. “Our focus is to increase sales/population in districts where we are present by increasing already selling range and introducing our new products,” asserts Jain. The company is expecting close to 25 – 30 per cent growth this year. Echoing the same sentiments, Shahpurwala avers, “We are continuously on the search to expand our footprint and customer touch points in India.This include, both physical and online touch points. As demand for our socks has been picking up, it is important for us to be available across online and offline locations. Having said that, we have a strong network in India and will look to expand into the US in future.”
seasonality of merchandise to ensure proper receipt flow. Outputs of assortment planning include initial purchase quantities and the receipt flow across time that will inform the allocation process. The level of detail in the assortment planning process will differ depending on the type of product being planned. For the purpose of this discussion, products are categorized into one of two product types - fashion or basic. Basic product can also be either softline or hardline and is identified as ‘basic’ if its lifecycle is long, i.e., the identical product will be delivered several times over the course of multiple seasons. Basic products essentially do not change; colors and features remain constant over the product’s life. Sales and inventory for basic products are managed through the replenishment system. The assortment planning process serves as a checkpoint to determine if the product meets performance criteria and should continue to be included in the assortment.
RETAIL EXPANSION STRATEGIES Companies are bringing in newer collections and innovative trends when it comes to knitwear unlike early days. TT Ltd has recently introduced a new knitwear apparel brand, HiFlyers, which comes in variants of cut, style and colour combination. Melange colours are in vogue and new shades are being brought in. Mustang’s next collection is full of fun colours and quirky designs. The company has focussed on various prints and patterns. Experimenting with colours, Bodycare Creations is introducing neon colours range in men’s & women’s inner wear segment. With changing mindsets, people have started using socks as a fashion accessory rather than thinking about it as just a mere commodity. “This forthcoming season we have launched bright, pastel colors and quirky designs for teenagers and working professionals. As the kids wear market is booming, we expect a huge boost in sales in the segment, remarks Shahpurwala.
While Bodycare has already marked its strong retail presence with over 8,000 to 10,000 retail touch point, it is exploring avenues in expanding product categories such as gym wear, yoga wear & sleep wear. “At present, we have a strong presence in metro and semi metro, now we are going to capture Tier-II, III markets,” informs Saxena. On growth expanse, Shahpurwala, says, “Price over quality has generally been the Indian mindset. But with changing dynamics and increase in disposable income, consumers have started investing in and buying products in the super premium category. Although this is mostly prevalent in the metros, it will start reflecting in the Tier II and Tier III cities as well in the near future.”
ON THE CUSP OF GROWTH As ICRIER (Indian Council for Research and International Economic Relations) retail accounts for over 10 per cent of India’s GDP. It is fuelled by increasing customer base, rising disposable income, changing lifestyles and growing absorptive power of the domestic market. Organised retail sector
Sanjay Davar, Managing Director “Due to easy access of Internet in mobiles phones and computers, customer can shop and buy the product any time they feel like. Retailers have seen continuous decline of sale in recent years as more and more are buying online. However, the knit segment has not been impacted much as many customers still prefer to buy through offline retail outlets.”
is likely to grow at a faster pace of 45-50 per cent per annum. The retail sector in India is certainly a beneficiary of growth for the Indian economy, but it is also a key cause and catalyst of that growth, and will remain so for at least 15 years. So, the future of knitwear is quite promising in the future.