Designed to Dress
After the stage of adopting global trends, the Indian Fashion Industry is seeing an explosion in the consumption of fashion across channels. The overall retail market is expected to grow at 12 per cent per annum. Modern trade expanding at 20 per cent per annum and traditional trade at 10 per cent per annum (IBEF Report Dec 2017). The fashion industry is in step at 10 per cent. This growth has fuelled the growth of good quality mannequins and the no of mannequins used in the top 15 Apparel Companies would be over 100,000 (VM&RD Estimate 2017) over 5000+ stores!
VM&RD has a close look at the Indian mannequin supply industry after connecting with the top 17 suppliers. Some of the key finding are presented below.
The growth of the Indian Mannequin industry is on an average a very healthy 20% which is double the growth rate of the overall retail industry. This is owing to the growth in the consumption of fashion in the market beyond Tier 1.
The average age of Mannequin companies is about 14 years with 3 oldest being 30+ years old and the youngest about 8 years. Only 2 players are below 10 years old, making this an experienced industry.
The average revenue generated from each player is modest at 40.0 Million INR (4 Cr INR) which shows that the industry is fragmented.
Only 10% of the total revenue comes from the Organized Retail Sector and rest from the Traditional Retail Sector which is looking for price over design.
About an average of 12%of the produced mannequins are supplied to neighbouring countries.
Access & Infrastructure
45% of the top 17 vendors are in North (New Delhi) followed by 31% in the West (Mumbai & Ahmedabad) and the rest in the South
Compared to the Retail Fixtures industry’s space manning density of 900 sft per person the manning density of the Indian Mannequins industry is about 460 sft per person. This is owing to the need for manual and semiautomated processes in the manufacturing which is labour intensive.
The total infrastructure space of these players is about 245,000 sft with an average of 15,000 sft each which is about one fourth the average of that of the Fixtures Industry.
Interestingly, about 75% of the players have inhouse design and development capabilities which is a combination of sculpting and 3D forming.
The no of clients is significantly higher in the Traditional Retail Sector, most of who make ‘cash and carry’ purchases. top 17 players have done business with over an impressive 15,000 clients out of which about 90% are from the Traditional Retail Sector. This clearly indicates how the Traditional Retail Sector, which is purely price sensitive is driving demand while the Organize Retail Sector is driving design.
The average no of clients for each player is about 75 Organized retailers and about 900+ Traditional Retailers.
In conclusion, it is evident that the Indian Mannequin Industry has a huge market to be captured opening room for many new players. With the Traditional Retail Sector driving demand of lower specifications and price, the entry barrier into this business is also low. On the other end, top mannequin manufacturers can satisfy the specifications of many international brands serving niche markets. With the sharp rise in consumption of fashion, thanks to ecommerce, consumers will see more and more of fashion competing in retail destinations where mannequins will play a large role in creating attraction and desire.