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Branded garments to grab 30 per cent marketshare

BS Economy Bureau

Even as garment exports are showing signs of a slowdown, there is reason to cheer for sector manufacturers who sell in the domestic market, especially the branded ones.

According to a study conducted by consultancy firm KSA Technopak and trade journal Images, the Indian branded garment market, which is estimated at Rs 90 billion, will account for 30 per cent of Rs 300 billion ready-mades.

Following the entry of several new brands, the branded segment is expected to grow by 26 per cent during the current fiscal.

Based on sales, the study has estimated the Indian clothing market at Rs 431 billion with men's wear accounting for 46 per cent, while the share of women's and kids' clothing pegged at 36 per cent and 17 per cent, respectively.

The smaller brands are however, under pressure with the key 125 brands collectively growing by 35-40 per cent and a large number of smaller ones showing a negative growth.

The study, released by union textiles minister Kashiram Rana here on Wednesday, has said that while old brands have grown by 10-40 per cent, the new brands have a potential to grow by 30-100 per cent.

Traditional Indian wears such as sarees, kurta-pajama and dhoti are estimated to be around 40 per cent of the total market, while two-third of the tailor-made segment is accounted for by western wears.

Contrary to perception, the study points out men are more brand conscious than women with brands such as VIP, Park Avenue, Louis Philippe, Van Heusen and Peter England selling more in 2000-01.

Men's wear accounted for nearly 59 per cent of the branded market and has grown at 20 per cent compared with around 23 per cent in the women's branded-wear category.

The study also points out that as the income level increases the spending on clothing by women increases, while men's spending on clothing decreases, though the gap is also decreasing from 14 per cent in the below Rs 22,000 income category to four per cent in households with over Rs 1 million annual income.

During 2000-01, with a 40 per cent increase in sales Madura Garments with its seven brands moved into the top slot with cumulative sales of Rs 4.55 billion, which is projected to grow to Rs 7 billion by 2003.

Eight Arvind Mills brands which include the likes of Arrow, Wrangler and Newport, had cumulative sales of Rs 3.07 billion during 2000-01, compared with Rs 2.37 billion in the previous year and continued to be in the second spot. Sales of these brands are expected to be around Rs 60 billion in 2003.

The study has said that VIP was the largest selling brand in India and Maxwell which owns the brand had sales worth Rs 4.21 billion in the last fiscal but moved down from its position as the numero uno brand in 1999-2000 to the third slot in 2000-01.

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