Denim Wear in India: A Market Research
A MARKET RESEARCH
The Indian denim market promises unmatched value as well as volume growth. Experts from Technopak size the market and delve into its dynamics.
The youth driven denim market promises unmatched value as well as volume growth in the overall Indian apparel market. Amit Gugnani, Senior Vice President- Fashion, Technopak sizes the market and delves into its dynamics as a whole. With inputs from Saima Nigar, Associate Consultant- Fashion and Textile Division, Technopak.
In the last two decades, the Indian fashion retail market has witnessed a growing inclination towards western wear and casual wear. Among these segments, denim is among the high growth categories in the domestic apparel market. The current domestic fashion retail market is worth `3,22,209 crores and is projected to grow at a compound annual growth rate (CAGR) of 7.7 percent to reach `6,74,037 crores by 2027.
DENIM MARKET SIZE & GROWTH
The denim category accounts for a significant share of the casual wear market. The market size of the Indian denim segment is estimated at `23,076 crores in 2017. This is projected to grow at a robust CAGR of 12.7 percent to reach `41,947 crores by 2022 and `76,258 crores by 2027. Men’s denim segment contributes about ~84 percent of the market while the women’s and kids segments contribute 10 percent and 6 percent respectively.
MEN’S DENIM SEGMENT
Denim is considered to be one of the most versatile fabrics for men with multiple applications like casualwear, workwear, and everyday use. Men’s denim wear accounts for the largest share and is poised to grow at a high CAGR of 12.7 percent over the next decade.
Until a few years ago, denim was popular with men in the urban centers only. However, in the recent years, it has become popular in the semiurban and rural markets as well, due to growing awareness and social media penetration. This growth in semi-urban and rural markets would chiefly propel the growth of men’s denim in the next 10 years.
WOMEN’S DENIM SEGMENT
Among other denim wear products, jeans are the most popular among Indian women. Women in different age brackets and of all shapes and
sizes prefer denim as it is comfortable, functional and durable. Denim is also gaining popularity among women due to the comfort provided by stretch denims. Even women who are not at ease with western wear have taken up to wearing jeans by pairing them with Indian ethnic wear like kurtis. This mix and match style is gradually picking up, particularly among women in small towns who come from a traditional background and this is likely to fuel the growth of the segment. Despite having a smaller share of 10 percent, women’s denim category is expected to witness higher growth rate of 13.1 percent during the period 2017-27.
The Indian women’s wear market, which thrives on fashion trends, is catered to by brands’ constant innovation in denim fabrics such as stretch, washes, designs, new colours and feel.
KIDS DENIM SEGMENT
It is the smallest segment in the domestic denim market, but is expected to grow at an impressive rate of 12 percent over the next decade, primarily due to the relatively higher fashion awareness among kids, products innovations and design choices and higher spending on kids in nuclear middle class families.
KEY TRENDS AND GROWTH DRIVERS
The denim wear segment has always been one of the leading segments in the apparel fashion industry around the world. The blue denim is one of the most ubiquitous wardrobe essentials, and has been so since decades.
The denim wear market in India is currently dominated by unorganised players. However, with the entry of international and penetration of Indian brands, the inclination towards branded denims is increasing among consumers. In addition to volume growth, the value growth is expected to increase with rising demand for enhanced product attributes like fashion quotient, stretch and light weight fabric, varying colours, styling and detailing, etc.
In India, denim apparel consumption is expected to rise across all segments — men’s, women’s and kids. The incremental growth is especially expected in the mid-premium and premium/luxury segments.
In India, denim apparel consumption is expected to rise across all segments — men’s, women’s and kids. The incremental growth is especially expected in the midpremium and premium/luxury segments.
Targeting rural and sub-urban consumers had till recently been a great challenge for the denim industry in India. However, recent trends have indicated increased penetration of the category across semi-urban and rural centres which shall drive volume growth across mass market and unbranded segments.
Certain factors which are contributing as growth drivers of denim wear in the
country are enumerated below:
LOW PER CAPITA JEANS CONSUMPTION
Per capita jeans consumption in India is much lower than that of developed markets, which is a clear indication of scope for growth in the domestic market.
The youth (15 to 29 years olds) who comprise 26 percent of the consuming population, are a key growth driver of denim wear in the country. Increasing disposable income, comfort, quality and brand consciousness are major reasons behind the increasing acceptance of denims among the young population.
GROWTH OF THE ORGANISED RETAIL SECTOR
The denim wear market is dominated by unbranded denim products which constitute ~70 percent of the market and thus tend to give intense competition to corporatized retail denim players. However, with many international and domestic brands offering denim wear at affordable prices, the inclination towards corporatized retail denim wear is increasing in consumers.
INCREASED RURAL SPENDING
Rural India is developing at a relatively rapid pace and a similar trend has been witnessed in rural spending. With the percolation of mass media, people in rural areas are aware of fashion trends. Their growing inclination towards western wear is another reason for the growing demand of denims in rural areas. The basic and mid-value segment of denim wear, characterised
by quality and style quotient is the preferred choice of people from rural areas.
GROWING POPULARITY OF TATTERED DENIM
The emergence of tattered denim has provided a perfect option for the fashion conscious youth. Distressed/ ripped/tattered denims are not restricted to only jeans but can be seen in jackets, shorts, skirts, etc. These are one of the most stylish must-haves for both men and women. This trend has been re-emerging in more styles every season.
NEW DENIM FABRIC WASHES
Jeans manufacturers are focused on achieving different hues of blue by washing the fabric in certain dyes, bleaches or other agents that affect the denim colour. Dark indigo, faded blue/vintage/aged, stone wash and distressed jeans are new denim fabric washes in trend these days.
SHIFTS IN CONSUMER’S WARDROBE
The shifts in consumer’s wardrobe have propelled the growth for casual wear and denim wear in India. Earlier, fashion was considered a basic need to be purchased on the basis of requirements. Consequently, the typical consumer wardrobe was limited to basic categories like shirts, trousers, winter jackets and sweaters, sarees and salwar kameez. The basic purchase parameters were limited to the basic functions of the cloth, comfort and price. However, with changing sociocultural values, increased per capita consumption, increasing exposure to international fashion trends and growing disposable income, the apparel market is slowly becoming more occasions specific. This factor has played a significant role in driving the growth of the denim wear segment.
ONLINE PENETRATION OF DENIM WEAR
Increased penetration of the internet coupled with the burgeoning smart phone market has resulted in the growth of e-tailing in India. Due to ease of ordering online, paucity of time, and flexible return policies among other factors, the youth of India are increasingly purchasing online.
The lucrative market opportunity has attracted many pure-play e-tailing players to the lifestyle space. E-tailing players are customizing their online portals to attract the youth who seek style and trendy looks in their fashion products. Lucrative offers from the retailers like cash on delivery, try and buy, easy return policy, etc., are making the e-tailing space competitive and dynamic. Denim has been among the highest growing categories in fashion e-commerce.
The denim wear market in India is expected to witness very impressive growth over the next decade. With India’s expanding economy, booming consumption, urbanising population and growing middle class income, denim wear has a huge opportunity to grow.
The increasing shift of rural fashion market from ethnic wear to western wear is one of the key growth drivers of denim wear in India. The large youth population with rising disposable income and awareness towards fashion will act as a catalyst in the growth of denim wear in the country.
The denim wear market holds high potential for brands and retailers. In order to capitalise on opportunities in the denim wear market, retailers need to focus on factors such as pricing, quality, consumer preferences, etc. Retailers can also leverage the available growth opportunities in the domestic denim wear market by opting for online channels and omni-channels.
In addition, to capitalize on the rural and semi-urban driven growth, brands and retailers can focus on these markets with basic denim products at affordable pricing.
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Editorial credit: v74 / Shutterstock.com