The Indian textile industry is increasingly becoming a brand story. While internationally the Made in India brand has got a boost in the first year of post-quota regime, Indian textile companies are themselves looking at brands to improve their visibility and turnover in the domestic market.
Last year itself saw a flurry of activity - new launches, relaunch of old brands and brands changing hands. In 2006 too, major players are lining up to launch more brands. A few of them, such as Raymond, have already entered new segments by launching brands.
S Kumars for instance, entered the premium market in ready to wear segment last year through its Reid &Taylor brand, which is already a major name in the high end fabric market.
This year will see the company launch its luxury home textile brand Carmichael House by the end of March. Another three brands are expected to come out from the S kumars' stable in the ready to wear and fabric segments. Moreover, the mid-price Tamarind will see its relaunch in a new avatar.
"As a country we are becoming more fashion conscious and thus associate better with brands. It also helps us to get a loyal customer base," say Tarun Joshi, communication custodian at S Kumars.
Raymond too followed the same principle in launching the kidswear brand Zapp. "There is a huge potential in the branded market and parents want to spend more for their children," reasons Pradeep Bhandari, group president.
Raymond is targeting the Rs 13,000 crore (Rs 130 billion) kidswear market, though it is still dominated by the unorganised retailers.
The overall apparel market is today worth Rs 88,000 crore (Rs 880 billion) and though the share of the branded segment may be limited, is growing at a healthy 25 per cent. That is almost twice the growth rate of the overall market.
The womenswear segment alone is worth Rs 30,000 crore (Rs 300 billion) - a big factor in Raymond deciding to make its designer pret brand - Be - more women-oriented.
A lot of credit goes to expanding a retail network. "It (the growth of brands) is retail-driven. Almost every player is expanding its retail network by 100-150 per cent. Brands are necessary for the players to create a recall value among the customers," says an industry analyst.
Century Textiles, Madura Garments and Raymond among others are doubling the retail presence of their brands within a year.
In the home textile market, there is an international angle to the brand story. India currently exports about Rs 21,000 crore (Rs 210 billion) of home textile products to the US alone.
The domestic market is about one-third of it. "If you have well known brand in the domestic market, it is easier to have a launch overseas," says an industry player.
While Bombay Dyeing is a seasoned player, Welspun, Creative Group and lately Kurlon have entered the organised market in a big way. Welspun and Creative are banking on their brands - Spaces and Portico.
