Pro­pelled by the power of props

VM&RD - - Contents - Suren­der Gnanao­livu

The In­dian Tex­tile and Cloth­ing sec­tor, one of the old­est in­dus­tries in In­dia, is es­ti­mated around US$ 108 bil­lion and is ex­pected to dou­ble to US$ 223 bil­lion by 2021 (In­dian Brand Eq­uity Foun­da­tion - IBEF). The life­style seg­ment is in the growth phase with cat­e­gories like ap­parel, jewellery and fash­ion ac­ces­sories with 10-12% of them from the on­line do­main (Bos­ton Con­sult­ing and RAI re­port Feb 17), many of them ven­tur­ing into brickand-mor­tar. With the In­dian con­sumer seek­ing for and re­spond­ing pos­i­tively to brands of­fer­ing su­pe­rior ex­pe­ri­ence, the need for reimag­ined and up­dated visual mer­chan­dis­ing has been an im­per­a­tive re­tail­ing re­quire­ment for re­tail­ers & brands. The in­dus­try that has been im­pacted pos­i­tively by this is the rel­a­tively nascent In­dian VM & Props In­dus­try. VM&RD took a close look at the cur­rent trends, by con­nect­ing with 25 of the top VM & Props sup­pli­ers in In­dia. Our interaction with them re­veals that they have been very busy in play­ing a vi­tal role in ser­vic­ing mil­lions of square feet of re­tail space an­nu­ally of ex­ist­ing and new ad­di­tions. The top 5 trends in the VM & Props in­dus­try from the con­ver­sa­tions are as fol­lows: 1. With dig­i­tal me­dia and screens be­ing in­tro­duced in visual mer­chan­dis­ing, the use of print and sig­nage has been con­trolled and the man­date has been to de­ploy this in VM and Props hence dras­ti­cally in­creas­ing de­mand in this in­dus­try. 2. The top 25 ven­dors are spread equally across 3 met­ros in In­dia namely, Delhi, Mum­bai & Ban­ga­lore prob­a­bly be­cause of them be­ing the top re­tail mar­kets in In­dia. 3. The qual­ity of pro­duc­tion has vastly im­proved in In­dia ow­ing to the in­vest­ment in tech­nol­ogy and skilled man­power in man­u­fac­tur­ing. 4. The need to ser­vice a di­verse group of brands and cat­e­gories has en­abled the de­vel­op­ment of skills and in­fra­struc­ture to cus­tom­ize in short cy­cles. The need for skilled man­power is a chal­lenge in this In­dus­try as each project has mul­ti­ple pro­cesses and ma­te­ri­als used that need dif­fer­ent work­man­ship. 5. With most of the pro­duc­tion be­ing done post the pur­chase or­der, the range of props read­ily avail­able from a cat­a­logue is very lim­ited. Ow­ing to this, China still re­mains a favourite desti­na­tion for im­port­ing props ow­ing to the avail­abil­ity of ‘off-the-shelf’ op­tions that have been con­sol­i­dated in large mar­kets where all the ven­dors are present.

Some in­ter­est­ing quan­ti­ta­tive high­lights of the find­ings are:

1. This in­dus­try is quite young with over 88% of the play­ers be­ing un­der 10 years in ex­is­tence. The mere 12% of the who are above 20 years old too have en­tered this do­main only in the last decade. 2. The growth of this in­dus­try is a very healthy 28% ow­ing to the high de­mand and short­age of ad­e­quate sup­pli­ers. This is en­cour­ag­ing new play­ers and ex­ist­ing play­ers with in­fra­struc­ture to en­ter. 3. The to­tal rev­enue gen­er­ated from the top 25 play­ers is over 100 Cr with the av­er­age of each be­ing a low 5 Cr though the top play­ers are over about 3 times that av­er­age. 4. Com­pared to the fix­ture in­dus­try’s higher space man­ning den­sity of 450 sft per per­son this in­dus­try has a higher rate of 250 sft per per­son ow­ing to high pro­duc­tion cus­tomiza­tion that needs man­ual in­ter­ven­tion. 5. The top 25 play­ers are ser­vic­ing over 800 clients with an av­er­age of about 34 clients each with the top 4 play­ers ser­vic­ing a chal­leng­ing 100 Clients! 45% of the over­all Clients for the in­dus­try are from the North re­gion. 6. About 68% of the Clien­tele are from the Ap­parel and In­dus­try with the rest be­ing from the non-ap­parel in­dus­try. 7. About 20% of the play­ers are ex­port­ing on an av­er­age of 14% of their an­nual pro­duc­tion which in­di­cates that some of them are ready to com­pete in In­ter­na­tional mar­kets. In con­clu­sion, it is ev­i­dent that sup­ply is still in­ad­e­quate for the ris­ing de­mand and hence there is lot more room for more play­ers and growth of cur­rent ones. In­dia’s dis­play and visual mer­chan­dis­ing fra­ter­nity des­per­ately needs sup­port to help their brands PAN In­dia to com­pete in a grow­ing mar­ket. With the growth of the VM & Props In­dus­try, con­sumer ex­pe­ri­ence will be height­ened and bot­tom lines im­proved for clients hence giv­ing a pos­i­tive push to the whole ecosys­tem.

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