Ethnic Wear International Trade Scenario in India - a Brief Outlook

Product :
Ethnic Wear

By:
Ekta Chandhok
Elton Vaz
Rohit deshmukh
SAYANTAN GHOSH DOSTIDAR

Introduction
Market Potential for Indian ethnic wear for the retail is estimated to be around Rs.25,000 Crores
Possessing an affluent traditional legacy, India has always been associated with Ethnic wear. Where the influence of the east is making the Indian masses more westward, we also see a lot of people from the east influenced by the rich Indian heritage. This insight has made the ethnic wear industry more approaching and flourishing. Currently, this Rs 9,000 crore market is likely to reach a Rs 45,000 crore turnover in the near future. The dealers and franchisors dealing with ethnic wear are the first ones to gain complete revenue of this growth.
Speaking about the occupancy of ethnic wear retail franchising in the Indian apparel industry, Asheeta Chhabra, Business Development Head, Chhabra 555 said: “The segment which ethnic wear retail franchising occupies of the entire pie is relatively small. Only a handful of players, including Chhabra 555, have ventured into this domain.”
Since the modern yet contemporary look is ‘in’ these days, it has made the ethnic wear industry the most sought after. Due to this, the segment has found to gain a remarkable change from being unorganised to organised. Out of the current industry players, 35 per cent are found to be successfully operating in the organised league, leaving the rest 65 per cent brands unorganised. Franchising has played as an expansion factor for all these brands making them reach a large chunk of people. Keeping in mind the growing popularity of the industry between the Indian consumers, many successful as well new brands have now opted for expansion through the franchising model.

Textile and Apparel’s Contribution to India’s GDP

The Indian garment and fabric industries have several major factors going in their favor, in terms of cost-effectiveness in manufacture and raw material, quick adjustment to what will sell, and a vast and relatively inexpensive skilled work force. India offers the international fashion houses competitive prices, shorter lead times, and a virtual monopoly in embellishments.

This last includes intricate hand embroidery - an absolute rage the world over - and accessories like buttons, zippers, laces, et cetera. For instance, were you aware that "Sadar Bazar", a vast marketplace for garment accessories and base materials in New Delhi, India, is known as the "bull 's eye" of the Indian garment industry, and is an important nodal point in the world map of garment manufacturers? Those cool brass buttons on your Levi 's or Wranglers just might have originated at Aziz and Sons Button Wallahs, some 7880 milesfrom where you go shopping for jeans in Los Angeles, CA!
In the embroidered garments segment, India has always been the default source, but the recent devaluation of the rupee against the dollar has further lowered prices, favoring buyers, so the international fashion houses walk away with customized, finely crafted works of fabric art at throwaway prices. Urban girl dressed in designer Banarasi Saree. |
The borrowing of traditional Indian concepts does not end here, what with vests made of kantha and mirror-work, appliques, screen prints and sequin-work evening wear being hot buys this coming fashion season.

As for the market for fabrics, the variety available in India can leave the buyer impressed but confused. A key determining factor in the selection of fabrics is the current "fashion movement" in the international market. For instance, the recent "eco-friendly", politically correct "natural" wave saw fabrics like pure cottons, linens and silks from India being lapped up by fashion trendsetters the world over.

Much of the manufacturing activity for this takes place in parts of the world you would never even have heard of, like the small town of Chapa, in the eastern state of Bihar, where fabric production is a family industry. The variety and quality of raw silks churned out here belie the crude production methods and equipment used - tussars, matka silks, phaswas, you name it, they can make it.

Surat, in the state of Gujarat, far to the west, is the source for an amazing array of jaquards, moss crepes and georgette sheers - all fabrics used to create those dazzling silhouettes seen on the ramps of the hottest fashion shows the world over.

Another Indian fabric design that has practically made fashion history is the "madras check" - originally used for the ubiquitous "lungi", a simple lower body wrap worn in southern India, this pattern has now made its way on to bandannas, blouses, bags, home furnishings, and practically anything else you can think of!

Of late, designers like Jean-Paul Gaultier have been increasingly using Indian fabrics, designs and cuts to enhance their western wear fashion collections. The Paris-based designer duo, Didier Lecoanet and Hemant Sagar, have used a lot of Benares Brocade in their Spring/Summer Collection recently unveiled in New Delhi for a select audience. There is a trend in the making here...

Forget Louis Feraud or Paul Smith, ethnic Indian design is in, and not just in India - whether it be a batik cravat, a tie-and-dye T-shirt, or a vegetable dye block-print skirt. So don 't blink if you see a Donna Karan creation in a Madras check, or spot Naomi Campbell in a brocade jacket with a Kantha skirt to match... Talk about making a fashion statement!

List of Ethnic Wear Exported
Sari
Salwar Kameez
Ghagra Choli (lehenga choli)

Churidaar Kurta
Pattu Pavadai
Mundum Neriyathum
Mekhela Sador

India Exports Ethnic Clothing to various Countries

Top 3 countries where we export:
USA
CANADA
UK

EPC for Ethnic Wear: AEPC ( Apparel Export Promotion Council)
Mission, Vision & Values
AEPC is committed to satisfy the apparel exporters with the service efficiency in achieving the growth of exports garments by exploring, sustaining & expanding global markets, becoming one stop information centre providing export assistance to garment exporters and bridge the gap between the exporters and overseas buyers through dedicated efforts of employees and continual improvement of the quality management system.
We shall achieve the same by * Networking of AEPC members * Increasing the export volume * Increase in the number of export markets * Stabilisation of exports * Providing trained manpower to apparel industry

APPAREL EXPORT PROMOTION COUNCIL

Contact Person: Chairman
Address : NBCC Towers,15 Bhikaji Cama Place, New Delhi - 110 066.
Tel. : [phone]
Fax : [phone]
Website : http://www.aepc.com

Upcoming International Fair

S. No Name of Event Date of Event
1 Fatex Fair in Paris, France 7-9 July 2013
2 Hong Kong Fashion Week, Hong Kong 8-11 July, 2013
3 International Fashion Fair (IFF), Tokyo, Japan 17-19 July, 2013
4 Sourcing at Magic, Las Vegas, USA 19 - 22 August, 2013
5 Australia International Sourcing Fair, Melbourne, Australia 13-15 November, 2013
6 Hong Kong Fashion Week, Hong Kong January, 2014
7 Sourcing at Magic, Las Vegas, USA February, 2014

( A view of the India Pavilion in Futura Fair )

List of events in India

S. No | Name of Event | Date of Event | 1 | India Market Days, Apparel House, Gurgaon | 8-9 April, 2013 | 2 | India Knit Fair (IKF), Tirupur | 17-19 April, 2013 | 3 | India International Garment Fair (IIGF), Pragati Maidan, New Delhi | 15-17 July, 2013 | 4 | India Market Days, Apparel House, Gurgaon | 18-19 July, 2013 | 5 | India Market Days, Apparel House, Gurgaon | 2-3 September, 2013 | 6 | India Knit Fair (IKF), Tirupur | 9-11 October, 2013 | 7 | India Market Days, Apparel House, Gurgaon | 13-15 November, 2013 | 8 | Source Zone, Apparel House, Gurgaon | 13-15 November, 2013 | 9 | India Market Days, Apparel House, Gurgaon | 23-24 January, 2014 |

Performance

As the world’s second largest producer of textile and garments, India’s garments exports totaled US$ 10.70 billion during FY 2009-10, giving an inevitable market share of 3.2%. The Americas EU, much of Asia and Middle East are India’s clients.
The Industry proudly supports 7 million people as a part of its workforce, and aims to double this figure by 2011-12; even today it is the second largest provider of employment in the country. For every INR 100000 Invested in the industry, an average of 7 additional jobs created.
The Apparel sector also contributes to 7% of India’s total exports recording decline of 0.35% in 2009-10 against 2008-09 due to global downturn.
Come to India, for nowhere else in the world do you find such a superb amalgam of natural resources, industry expertise, entrepreneurial initiatives backed by friendly Government and a smart, winning attitude that spurs the Apparel industry to soar above the rest of the world in its achievements!!

Market Development Schemes

Technology Upgradation Funds Scheme (TUFS)
MDA
Focus Market Scheme
Textile Centre Infrastructure Development Scheme
Apparel Park
Scheme for Integrated Textiles Parks
Special Economic Zones

AEPC Export Promotion Activities

Over 11 overseas projects amounting to US$ 2.96 mn. planned for the year 2009-10.
Foreign fairs (HKFW, Magic, Interselection, etc.)
Delegations (US, Tunisia, Brazil, Argentina, Chile, Panama, Columbia, etc.)
Market weeks
Sourcing fairs
Seminars & Workshops (REACH, Fashion Forecast, World Apparel Congress, etc.)
India International Garment Fair – (bi-annual event)

AEPC is continuously involved in the task of promoting the exports of readymade garment from the country by…

Buyer Seller Meet

Organizing Buyer Seller Meets (Already concluded Mega Show in South Africa, Japan and BSMs in Spain this year).

Trade Delegation

Spearheading trade delegations to potential markets like US, Canada, China, Taiwan, Tunisia, Brazil, Argentina, Chile, Panama and Columbia etc.

International Fairs

Interselection Paris (France) (5-7 April '11), Hong Kong Fashion Week (4-7 July 2011), Global Fashion, Dusseldorf (Germany) (July '11), Magic Fair, USA (21-24 Aug 2011), International Istanbul Fashion Fair,Turkey (Aug 11), Fashion Industry, St. Petersburg Russia (Oct '11), Interselection Paris (France) (Nov '11), Hong Kong Fashion Week (Jan- 2012), Intermoda, Mexico (Jan 2012), Global Fashion, Dusseldorf (Germany) (February 2012), Magic, USA (February 2012), Futura Fair (March 2011), IFF, Japan (20-22 July, 2011), BSM, South Africa (Mar 2012), BSM - Spain (Oct, 2011), Fashion Forecast Seminar and inviting fashion designer from abroad (March 2012), Souce Zone (9-11 November, 2011), Export Award function, BSM AUSTRALIA, BSM, BRAZIL & ARGENTINA

Seminars

Organising seminars like REACH (held in March to September 2009), Fashion Forecast Seminar (planned to be held in November, 2009), World Apparel Convention (scheduled from 17-20 November, 2009).

Workshops

Workshops on Fashion, managerial and technical aspects of the industry by inviting Fashion Designers from various countries, like Mexico, South Africa etc.

Education and Training Initiatives

Integrating skilled human resource development through its Education & Training initiatives like Apparel Training & Design Centres (ATDCs) in 47 cities and Institutes of Apparel Management (IAMs) in 2 cities

Dissemination of Information
Disseminating information to trade through…
Publishing a monthly magazine, “Apparel India” through which all information on Govt. policies and initiatives with regard to the apparel industry is communicated to the garment export industry. The magazine gives valuable information regarding the fashion trend, trade statistics, market focus and other study reports to the benefit of the industry.
Maintaining its own website, “aepcindia.com” through which buyer and seller meet on a reliable platform and it also provide valuable inputs to the garment industry.
Compiling of Detailed Country Reports and its trade statistics which are available to the trade in CD form as well.
Maintaining a well equipped library (in Mumbai and Gurgaon) with all latest fashion related and valuable market trend publications which is open to the trade members for their reference;
Media & Corporate Communication Information about the apparel industry in various countries is collated to spread awareness among Indian exporters. On the other hand, queries on Indian industry from foreign buyers are responded to.

Research & Development

Conducting market surveys and providing market intelligence through various cluster studies, research reports & journals.
Exploring new markets and identifying items of export potential (Already undergoing a New Product Development Scheme for Trade under Ministry of Commerce (MoC)).
Developing new markets for existing products through various export promoting activities like Road shows, leading trade delegations, etc.
Schemes
Providing assistance to member exporters for accessing new markets through Market Access Initiative (MAI) scheme of Ministry of Commerce and helping them in developing, diversifying and stimulating the exports in the existing markets through Market Development Assistance (MDA) scheme of MoC.

Conclusion
India is today recognized as one of the sourcing destinations for garments, textiles, accessories and finish: It provides a perfect blend of fashion, design, quality, patterns, textures, colors and finsh. Manufacturers here are ready to innovate, be flexible on quantities, have hands-on approach to quality control and keep the integrity on deadlines.
The growth drivers of the industry, as understood, shall be innovation across product, design and brand, channel and also business processes. Further, it is important for the industry to identify and create new mega clusters- Madurai, Mundra, AMbala and Mangalore- having tremendous potential for manufacturing. A few key points are given below.
Factors pertaining growth
This remarkable growth in the ethnic wear franchising segment is a provenance of several factors. With the Indian women becoming more brand conscious, branded shops are gaining more popularity. Franchising is a key towards increasing a brands retail presence. Also Indian wedding and festive season involves a lot of traditional maneuver, making the consumers rush to the nearest branded ethnic wear outlets to buy traditional wear.
“A lot of change has happened in the ethnic wear retail franchising scenario since bygone times, but I don’t think there are any changes in bridal wear segment” stated Vivek Agarwal, Owner, Divasa.
Also many other factors like a boost in disposable income, revelation to media and Bollywood, recognition of designer wear are responsible for the growing demand of ethnic wear. As per the report by Technopak, the size of ethnic wear consumers in India have guaranteed that there is no drop in its growth. It still remains the most essential item of clothing brought by majority of Indian women in Tier I and Tier II cities.

Sex no bar
Though ethnic wear has always been misinterpreted for women attires like sarees, lehengas, chudidars, etc, the segment also covers men outfits like sherwanis, kurta pyjamas, etc. Growing at the rate of 30-35 per cent yearly, the industry not only caters to the women masses, but also accommodates the menswear segment. Retailers and franchisors these days are looking ahead to concentrate more on ethnic clothing for men. The best examples of ethnic dressing by men are journalists and politicians. These men make the attire an integral part of the Indian apparel scenario. Although the focus is tilted towards women, men’s ethnic wear too plays a sizeable role.
Industry troupe and their franchise expansion
Apart from the already booming names, there are a huge number of brands that are making their debut in the Indian ethnic wear industry day by day. Since franchising is said to be one of the best ways of expansion, brands are appointing franchisees from across the country to make their retail presence stronger.
Ethnic wear brands like Chhabra 555, Satya Paul, Ritu Kumar, W Women’s Wear, Ashika Fashionwear, Anshu 's Designer Studio, Divasa, Vasari, etc. have been successful in making their mark through franchising.

Speaking on the advantages of franchising Chhabra said: “The emergence of franchising as a strong concept over the last few years has resulted in positive implications for numerous sectors in India. Many budding entrepreneurs have diverted interest towards this business model.” Chhabra 555 has presently reached the figure of 50 stores across the country. They are now aiming to reach 100 in the next five years.
“Since it is a profitable concept for the franchisor, franchisee and the consumer, we have taken up franchising route for expansion“, stated Agarwal. Divasa has presence in over 15 states all over the country.
“We opted for the franchise route in 2004 to expand our presence across the nation in order to cater to the rising demands of ladies’ fashion wear and accessories. Franchising is the best preferred mode of expansion for international and domestic companies,” said Jyoti Mohan Narula, Managing Director, Genesis Colors. Satya Paul womenswear is presently available through 40 exclusive brand stores in 20 cities of the nation, out of which 16 are franchised. The brand is also catering to over a 100 multi brand womens’ wear stores in India through an art digital design studio, company run factories and a vast distribution network.
Ravi Bhandari, Director, Anshu 's Designer Studio, stated: “To inform the fashion conscious women across India about our offering, we took the franchise route for expansion.” Anshu’s Designer Studio presently have nine franchised stores; two in Delhi and Chennai, and rest in Raipur, Jabalpur, Lucknow, Ahmedabad etc. The company plans to reach 50 stores by March 2012.
W Women’s Wear presently is available at 60 exclusive stores across 25 cities in India. It is also present in 500 retail points including shop-in-shops. As a part of its future expansion plans in India, the company plans to set up 100 exclusive 'W ' stores in the country including tier II and tier III cities by March 2012.

The foreign connection
Ethnic wear has not only captured the Indian market, but has also made its presence well-built internationally. It is roughly said that 15-20 million NRIs and 40-100 million Indian on a global front are interested in dressing in Indian garments.
Speaking on its international expansion, Chabbra said: “Chhabra 555 is now making an international foray and we intend to establish a strong dealership network across selected countries. We are searching for strong business partners as Master Franchisees in– USA, Canada, UK, Middle East, Australia, etc. We are looking for partners who share our passion to grow the brand and business to greater heights.
Satya Paul is present in Pakistan, Malaysia, Dubai and Kuwait through a retail network. “Besides the domestic market, we also have marked our presence in the international market with two retail outlets,” said Narula on Satya Paul’s global presence.
Industry anticipation
Looking down the road the industry growth seems to be escalating all the way. The brands not only feature traditional attire but also add in a tint of westernism to the clothes making the category more looked for. Précising, the industry is still in its novice phase and a lot more is expected by the ethnic wear brands to deliver to the consumers.

Bibliography & Webliography * www.aepcindia.com * http://businesstoday.intoday.in/story/indian-companies-selling-indian-ethnic-wear-online/1/189637.html * http://www.ieo.org/mee001.html * http://www.researchandmarkets.com/reports/2137528/ * CREDIT ANALYSIS & RESEARCH LTD

Bibliography: & Webliography * www.aepcindia.com * http://businesstoday.intoday.in/story/indian-companies-selling-indian-ethnic-wear-online/1/189637.html * http://www.ieo.org/mee001.html * http://www.researchandmarkets.com/reports/2137528/ * CREDIT ANALYSIS & RESEARCH LTD