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India : Designer Wear Set To Ride The Growth Waves |
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2003-7-22 8:45:00
A Recent KPMG study commissioned by the Fashion Design Council of India (FDCI) identified designer wear as a key growth sector for the next decade.
Worldwide, designer wear is a $35-billion industry with a nine per cent growth rate — almost twice that of the apparel industry — and margins of as much as15 to 25 per cent. In India, the designer wear segment is only estimated at about Rs 180 crore of the Rs 67,000-crore apparel industry overall, but it is expected to grow to Rs 1,000 crore in the next decade.
However, the designer wear segment is unorganised and highly
fragmented, and dominated by small players who lack the resources to grow. It is also limited to a very small distribution network, and lacks the kind of `star' brands that propelled the growth of designer wear markets in the West. Also, unlike international markets, where designers such as Ralph Lauren and Donna Karan retail through upmarket department stores, the lack of organised retail here had forced designers to build and operate their own retail networks, which had prevented them from tapping
into a larger market, the report said.
Certainly, designers — who have so far been limited to very small
volumes of high priced couture and diffusion (between ready-to-wear or prêt, and couture) — have realised the tremendous potential that exists in affordable ready-to-wear market. But they lack the processes, systems, and financial resources to scale up their operations. And, building a brand, which could take five to 15 years, is a costly and risky proposition, for which corporate involvement is key.
"Textile and apparel companies, organised retailers and even
entertainment event firms all have synergies with the designer wear market," said Mr Vinod Kaul, Executive Director, FDCI.
"For apparel companies, designer wear serves as a source of
differentiation in an increasingly commoditised market, while also improving profit margins. But they need to invest in brand building and developing efficient supply chains with broad distribution networks for the designer."
Textile giant Raymond Ltd has developed a multi-brand outlet format with its Be: line of stores, which works with about 15 designers at any given time, and follows a structured approach with trends forecasting, predetermined pricing, a seasonal timetable and backward planning. Be: works with designers such as Priyadarshini Rao, Raghavendra Rathore, Rohit Bal and Manish Arora, and has six stores in India, and one in Dubai, and is looking to expand its presence, particularly in markets with large NRI populations. Be: had a turnover of about Rs 7 crore last
year.
Raymond's strategy of `corporatisation of designer wear' emphasises affordability, accessibility and acceptability, and Be:'s range of apparel — mostly western casual and evening wear — and accessories for men and women is priced at Rs 600 to Rs 6,000.
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