FU­TURE OF THE BUSI­NESS OF THE IN­DIAN WIN­TER WEAR MAR­KET: A RE­SEARCH BY TECHNOPAK

Business of Fashion - - Contents -

Branded and un­branded seg­ments of the win­ter wear mar­ket are both work­ing on of­fer­ing in­no­va­tive prod­ucts, team Technopak takes a look at this rapidly emerg­ing seg­ment.

Branded and un­branded seg­ments of the win­ter wear mar­ket are both work­ing on of­fer­ing in­no­va­tive prod­ucts, new fi­bre blends and com­pet­i­tive prices to ac­cel­er­ate the pur­chas­ing of win­ter wear and to beat the un­pre­dictable weather con­di­tions in In­dia. Amit Gug­nani, Se­nior Vice Pres­i­dent - Fash­ion (Tex­tile & Ap­parel) with Goutham Jain, Prin­ci­pal Con­sul­tant, Fash­ion–Tex­tile & Ap­parel, and Saima Ni­gar, As­so­ciate Con­sul­tant - Fash­ion & Tex­tile Di­vi­sion from

Technopak takes a look at this rapidly emerg­ing seg­ment...

The In­dian sub-con­ti­nent is known for its di­ver­sity, not just in terms of cul­ture but in terms of weather and cli­matic con­di­tions. North­ern In­dia wit­nesses win­ter sea­son from mid Nov – mid Jan. Though it spans for about three months it pro­vides for a size­able mar­ket op­por­tu­nity for ap­parel brands/re­tail­ers.

The win­ter wear mar­ket in In­dia was pegged at `17,790 crore in 2017. The mar­ket is ex­pected to demon­strate a Com­pound An­nual Growth Rate of 4 per­cent to reach `25,488 crore by 2027. Cur­rently, the un­branded seg­ment com­mands nearly 70 per­cent of the mar­ket share, with the branded seg­ment try­ing to bridge the gap by in­no­vat­ing and of­fer­ing new prod­ucts.

WIN­TER WEAR SUB CAT­E­GORIES:

The win­ter wear cat­e­gory can be fur­ther clas­si­fied into men’s win­ter­wear, women’s win­ter­wear, boys’ win­ter­wear and girls’ win­ter­wear. Men’s win­ter­wear ac­counts for 49 per­cent of mar­ket share fol­lowed by women’s (22 per­cent), boys’ (15 per­cent) and girls’ (14 per­cent).

MEN’S WIN­TER WEAR

The men’s win­ter wear mar­ket was es­ti­mated at `8,777 crore in 2017 which is ex­pected to grow at a CAGR of 3 per­cent to reach the mar­ket of `12,121 crore by 2027.

The key prod­ucts in this seg­ment are jack­ets, sweaters, pullovers, cardi­gans, sweat­shirts, muf­flers, ther­mals, blaz­ers and suits, etc.

WOMEN’S WIN­TER WEAR

The women’s win­ter wear mar­ket was worth `3,807 crore and is ex­pected to grow at a CAGR of 3 per­cent for the next 10 years to reach the mar­ket of `5,147 crore by 2027. Women win­ter wear in tan­dem with other women’s ap­parel cat­e­gories is wit­ness­ing growth due to the in­creased women work­force and their ten­dency to spend more on re­peat pur­chases. Women’s win­ter wear is usu­ally more fash­ion­able with wide range of de­signs, feels and em­bel­lish­ments.

Ma­jor win­ter wear prod­ucts in this seg­ment are sweaters, cardi­gans, pullovers, stoles and shawls, ther­mals, in­ner­wear, track suits, sweaters cum kur­tis, etc.

KIDS’ WIN­TER WEAR

Kidswear seg­ment in In­dia is gain­ing trac­tion in the over­all ap­parel mar­ket. Many na­tional and in­ter­na­tional brands are find­ing kidswear a lu­cra­tive seg­ment and have started cater­ing it mak­ing it to grow rapidly. Kids win­ter wear too is lever­ag­ing the ben­e­fit of the drive and is wit­ness­ing a shift to­wards or­gan­ised re­tail.

BOYS’ WIN­TER WEAR

Boys’ win­ter wear mar­ket was es­ti­mated to be worth `2,666 crore in 2017 which is ex­pected to grow at a CAGR of 6 per­cent to reach `4,636 crore by 2027. Ma­jor­ity of boys’ win­ter wear prod­uct com­prises sweaters, jack­ets, blaz­ers, ther­mals, in­ner­wear, sweat­shirts, etc.

GIRLS’ WIN­TER WEAR

The girls’ win­ter wear cat­e­gory was es­ti­mated to be worth `2,540 crore in 2017 and is ex­pected to grow at a CAGR of 3 per­cent to reach `3,584 crore by 2027.

Key prod­ucts of girls’ win­ter wear in­clude cardi­gans, scarves, jack­ets, knee lengths, ther­mals, in­ner­wear, tu­nics, etc.

GROWTH DRIV­ERS OF WIN­TER WEAR

De­spite sev­eral chal­lenges, win­ter wear can at­tribute its growth to the fol­low­ing men­tioned growth driv­ers:

Life­style po­si­tion­ing

Gone are the days when win­ter­wear con­sisted of ba­sic sweaters, shawls, cardi­gans or trousers only. In­creas­ing fash­ion awareness and ris­ing dis­pos­able in­come has re­sulted in in­creased de­mand of trendy and colour­ful ap­par­els to meet sea­son’s re­quire­ments as well as ad­dress the fash­ion needs of the con­sumers.

From jack­ets to suits, sweaters to ther­mals, the wide col­lec­tion on of­fer by both up­scale brand stores and un­branded small re­tail­ers are try­ing their best to at­tract more cus­tomers. How­ever, since this cat­e­gory is sea­sonal, brands need to in­vest in heavy mar­ket­ing and sup­ply chain man­age­ment strate­gies to churn out max­i­mum profit dur­ing win­ter sea­son.

Many na­tional and in­ter­na­tional brands are find­ing kidswear a lu­cra­tive seg­ment. Kids win­ter wear too is lever­ag­ing the ben­e­fit of the drive and is wit­ness­ing a shift to­wards or­gan­ised re­tail.

Prod­uct in­no­va­tion

Many new win­ter­wear cat­e­gories have emerged due to the chang­ing cli­matic pat­tern. Re­duced win­ters have led in the emer­gence of semi-ther­mal or pre-win­ter cat­e­gories. Mil­len­ni­als are ready to ex­per­i­ment and to cater this seg­ment, re­tail­ers are pro­vid­ing them am­ple op­tions in terms of sweat­shirts, pon­chos, Indo-western tu­nics, etc.

The prod­uct port­fo­lio of brands/re­tail­ers now in­cludes a whole range of prod­ucts such as muf­flers, warm caps, hats and footwear com­pli­ment­ing the main prod­ucts like sweaters, jack­ets and pullovers to cap­ture higher share of con­sumer’s wal­let.

Over the last few years, ma­jor in­ner­wear brands have ex­panded their prod­uct port­fo­lio to in­clude ther­mal in­ner­wear/com­fort wear for ev­ery seg­ment of the mar­ket.

In­creased fash­ion awareness

With in­creased In­ter­net pen­e­tra­tion and ex­po­sure to me­dia, Mil­len­ni­als are aware about the chang­ing fash­ion trends in the in­ter­na­tional mar­ket re­sult­ing in in­creased de­mand of va­ri­ety of prod­ucts in ap­parel cat­e­gories. This is ap­pli­ca­ble to win­ter­wear seg­ment also.

CON­CLU­SION

Fac­tors such as fash­ion awareness, rapid ur­ban­i­sa­tion, higher dis­pos­able in­come and ris­ing as­pi­ra­tional life­styles have re­sulted to a more want based pur­chas­ing of fash­ion­able prod­ucts in ev­ery sea­son.

In­dian win­ter wear mar­ket is at­tract­ing a lot of in­ter­na­tional and do­mes­tic brands owing to these growth driv­ers. In case of win­ter wear, brands have a sig­nif­i­cant mar­ket op­por­tu­nity as the mar­gins are higher in com­par­i­son to other prod­uct cat­e­gories. De­spite such promis­ing growth, the sea­son­al­ity of sales, lack of skilled labour­ers, avail­abil­ity of cheap im­ported prod­ucts, huge un­or­gan­ised mar­ket and chang­ing cli­matic pat­tern have be­come ma­jor chal­lenges for the re­tail­ers.

Thus, it be­comes pru­dent for the re­tail­ers, to de­vice strate­gic plan­ning and in­no­va­tion along with the fash­ion­able prod­ucts, com­pet­i­tive pric­ing, ag­gres­sive mar­ket­ing etc., to cater their tar­get cus­tomers to cap­ture max­i­mum mar­ket share in this boom­ing ap­parel mar­ket seg­ment.

Due to sea­son­al­ity of sales, lack of skilled labour­ers, avail­abil­ity of cheap im­ported prod­ucts, huge un­or­gan­ised mar­ket and chang­ing cli­matic pat­tern the win­ter wear mar­ket has be­come a ma­jor chal­lenge for the re­tail­ers.

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