Indian Apparel Makers To Shift Focus To Domestic Markets In A Big Way

Apparel, Footwear, Fashion

Indian Apparel Makers To Shift Focus To Domestic Markets In A Big Way

The Indian apparel industry attempts to realign itself to the changing global trends and pressures. Currently worth Rs 250,000-crore, the domestic apparel sector that exported goods worth $ 17 billion in FY 2015-16, is changing trajectory from its conservative approach.

Rethinking their strategy has become imperative as there has been impressive growth in the domestic sector for demand of apparel goods. Consequently, the apparel makers are diverting their attention to the domestic market from being purely export oriented. The domestic growth has been fuelled by an expanding base of Indian consumers and changing demographics over the past decade.

The domestic apparel markets are set to double in size in the next six to seven years, partly due to recent government initiatives and partly because of global events. At present, the garment makers have adapted a slew of measures to bring back the lost momentum to face the highly competitive global market.

In fact, the industry is making a concerted effort to move up the value chain and build its capabilities to cater to the opportunities that are arising in the domestic market. Migrating from being content with conversion for private brands, it is rapidly striding towards setting up an integrated production chain. Moving up the value chain could mean that they can have their cake and eat it too, meaning they can at the same time engage with international buyers or brands on the design side.

“Most of our garment exporters are currently part of the outsourcing mechanism put up by the global brands. We simply cannot confine ourselves to just being garment convertors. It is high time that we change our mindset and work towards creating our own brands, particularly for the Indian consumers. This assumes significance as we understand Indian consumers better than foreign brands. Foreign brands are luxury ones, which are primarily limited to metro cities. In addition, this will lead to more Indian brands in the market place and our apparel makers can take pride in ownership. In fact, India is gradually moving towards branding from labeling earlier. However, the average Indian businesses will have to shift from Freight on Board- based pricing for profit making to brand building for long term profits in the apparel sector,” said Rahul Mehta, president, Clothing Manufacturers Association of India (CMAI) at the Indian Apparels Federation(IAF) convention held recently in Mumbai.

The convention also saw CMAI signing a MoU with China Chamber of Commerce for import and Export of Textiles (CCCT) for extending co-operation to each other in terms of new business opportunities and exchange of trade and data related co-operation for mutual benefit in the field of apparel. The MoU was signed by Mehta of CMAI and Jiang Hui of CCCT. Experts are of the view that the pact is a part of changing business order where competitors will in future work more in a collaborative manner than before and try to restrict themselves to their core strength.

“This MoU will benefit both countries when we explore opportunities. While organising trade fairs, both of us would co-operate in associating with new clients, visitors and associated supply chain participants to the forum for the benefit of the apparel trade,” said Mehta who is of the opinion that India has great potential to increase the market share in global apparel trade.

At present, India accounts for 3.50 per cent of global trade as against 6.40 per cent by Bangladesh and 4.20 per cent by Vietnam. China accounts for over 40 per cent of global apparel exports.