Expressions of style

Even truth needs to be clad in new garments if it is to appeal to a new age -Georg Christoph Lichtenberg

Annurag Batra

Staying resilient in an overall sluggish economic environment of today is a formidable challenge for industries, with Indian apparel industry being no exception. Yet, this industry thriving on the basic need of mankind, has several inherent advantages to keep it afloat amidst the fear of surging tide of industrial slowdown.

Significantly, the Indian apparel industry has seen remarkable changes in the past few years. To begin with, the Indian consumers have, of late, become increasingly brand conscious with fashion becoming a form of self-expression. Clearly, clothes are no longer about need, or even comfort but represent a way of expressing one's individuality. As this expression finds its manifestation, it is becoming pronounced in all echelons of society. There are distinct attires for every occasion -- weddings, theme parties, special occasions etc. This aspirational trend is backed up by rapid urbanisation and gradual rise of organised retail. Rising disposable income among the middle class and increase in the number of working women are other factors driving the apparel market's growth across the country.

The apparel industry plays a critical role in the economic development of the country with its considerable contribution to industrial output, export earnings of the country and the generation of employment. It is one of India's largest foreign exchange earners. As our cover story for the current issue of Franchise Plus points out, the apparel industry accounts for nearly 26 per cent of country's exports and is the second largest retail industry (after food and groceries), representing approximately 10 per cent of the total market.

Significantly, the women's wear segment is expected to see the largest growth amongst the entire apparel category. A majority of brands diversifying into retail are targeting women's wear to cash in on growing independence and aspirational levels of women consumers.

As the apparel industry is largely product-centric, franchising helps in conveying a message of the brand, its perspective and experience which it brings along. Franchising will continue to play its role in boosting the industry further, though there are challenges too like running large-scale operations, improving bottomlines and ensuring customer satisfaction in increasingly competitive business environs. Moreover, despite substantial growth, the Indian readymade garment market is still largely unorgaised.

In a significant development, however, more and more organised apparel brands are now tapping the apparel retail market by spreading their wings even to tier II and tier III cities. In fact, consumer's aspirations and the level of innovation that can be brought about will lead the way for this industry. Rising demand levels from the hinterland are set to spur the growth of apparel industry, despite the prevailing turbulence in the country's economic climate.