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Analysis of the clothing market in India

Release date 27.05.2022

Number of pages 48

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The relevance of research

Clothing is a product or a set of products worn by a person and carrying utilitarian and aesthetic functions. It protects the human body from the negative influence of the environment and performs aesthetic functions - it creates the image of a person, demonstrates his social status. Clothing can be made of fabric, knitted fabric, leather, fur and other materials.

Purpose of the study

Analyzing the state of the clothing market in India, assessing the size of the market, analyzing competitors, as well as determining the factors affecting the clothing market in India

Content

Part 1. Overview of the Indian clothing market

1.1. Main characteristics of the market

1.2. Dynamics of the clothing market volume in 2017-2021 Potential market capacity

1.3. Assessment of factors affecting the market

1.4. Stage of the life cycle of the clothing market

1.5. Competition from substitute products

Part 2. Competitive analysis in the clothing market

2.1. Major players in the market

2.2. Market shares of the largest competitors

2.3. Profiles of major players

Part 3. Analysis of clothing production

3.1. Volume and dynamics of domestic clothing production

3.2. Share of exports in clothing production

3.3. Segmentation of clothing production by region

3.3.1. Production by Union Territories

3.3.2. Production by states of India

Part 4. Analysis of foreign trade supplies of clothing

4.1. The volume and dynamics of clothing imports

4.2. Import structure

4.3. The volume and dynamics of clothing exports

4.4. Export structure

Part 5. Analysis of clothing consumption

5.1. Clothing consumption dynamics

5.2. Analysis of the results of tenders for the purchase

Part 6. Price Analysis

6.1. Average producer prices by union territories

6.2. Average consumer prices by states in India

Part 7. Assessment of factors of investment attractiveness of the market

Part 8. Forecast for the development of the clothing market until 2026

Part 9. Recommendations and conclusions

Research excerpt

Part 1. Overview of the Indian clothing market

1.1. Main characteristics of the market

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On the other hand, there are special work clothes that protect the wearer from the inherent risks of the activity. For example, racers use flame retardant clothing to avoid potential burns in the event of an accident. There is also special clothing for professions associated with work in hazardous conditions - clothing for firefighters, chemical protection equipment, and the like.

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Diagram 1. The ratio of imported and domestic products in the clothing market,%

1.2. Dynamics of the clothing market volume in 2017-2021 Potential market capacity

Consider the dynamics of the clothing market in 2017-2021.

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In the structure of proceeds from the sale of clothing in the union territories, according to Rosstat, the largest share during the study period remains with the Central Federal District …%, since this federal district has a high concentration of manufacturers, and the production facilities of market leaders are also located here. The shares of federal districts in terms of revenue from the sale of clothing during the study period change slightly, which is reflected in diagram 3.

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1.3. Assessment of factors affecting the market

Let's consider the main factors influencing the market and, accordingly, the demand in the clothing market in India.

According to experts, the main factor influencing the growth of the clothing market, as well as the growth and development of other markets, is the decline in incomes of the population.

Economic:

Political:

Technological:

Social:

Table 1. STEP analysis of factors affecting the clothing market

Based on the analysis of the factors affecting the clothing market in India, there is a predominantly positive influence of the main number of factors on the market.

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1.4. Stage of the life cycle of the clothing market

The life cycle stage of the clothing market in India can be assessed as growth followed by a recession stage.

The growth stage is characterized by an increase in the growth rate of production and revenue. The increase in sales is due to an increase in purchases by existing consumers who have a positive experience with the product. The main task of a company in the growth stage is to use all points of growth to extend this stage.

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Also, for the majority of players at the growth stage, a base of regular consumers has already been formed. It is necessary to maintain contact and promptly respond to the requests of each of them, as well as monitor the markets of consumer enterprises - the entry of new players, changes in composition, market trends. When working with a potential target audience, the emphasis should be on:

achieving awareness of the company's product among the potential target audience;
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The growth stage promotion strategy is formed with the goal of being present in the minds of consumers as a market leader. Here, it is most important to confirm your status not only by the terms of delivery and attention to consumers, but also by being present in industry communities and participating in events focused on changing consumer behavior - environmental movements and actions, educational events for clothing care, etc. It is also necessary to pay attention to proposals for distribution channels in order to maintain leadership in distribution, the development of online stores and / or franchises.

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1.5. Competition from substitute products

There are no substitute goods for clothes, if we mean the global concept. At the same time, analogues or substitutes can be found in each of the segments, for example, women's home clothes - historically this is a bathrobe, but today many people prefer knitted suits, jeans and a T-shirt to dressing gowns. At the same time, these items of clothing can also be attributed to other categories, in this case, the reason for using clothes is important - to stay at home and / or do housework. In the category of outerwear, such analogues can be called raincoats and jackets or light coats, in the category of clothes for meeting friends for women there are options for dresses, jeans and T-shirts, trousers / skirts and shirts - it all depends on the meeting place and the preferences of a particular person.

Part 2. Competitive analysis in the clothing market

2.1. Major players in the market

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Table 2 provides information on the 7 largest market operators, in total there are more than 28 thousand such companies in the Indian market (more than 8 thousand organizations and more than 20 thousand individual entrepreneurs).

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The largest apparel market operators usually have several of their own production sites in various states of India.

2.2. Market shares of the largest competitors

The market shares of the largest clothing market operators are calculated based on the revenue of such companies in the clothing business line in 2021.

Diagram 4. Shares of the largest competitors in the clothing market in 2021

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2.3. Profiles of major players

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Part 3. Analysis of clothing production

3.1. Volume and dynamics of domestic clothing production

Diagram 5. Dynamics of clothing production in India for 2017-2021

According to Rosstat and GidMarket analysts, the volume of clothing production in India, excluding leather and fur clothes, as well as hats, in 2021 amounted to … million pieces. and reached a maximum in the study period, while the increase relative to the indicators of 2020 amounted to …% - the growth rate of production volume increased relative to 2017-2019.

The dynamics of clothing production in India has a stable positive development trend in the study period with an average annual increase of …%. The minimum value of the production volume falls on 2017 and amounts to … million units, while in the future, the growth rate of production volume increased until 2021. The volume of production reached its maximum value in 2021 with an increase compared to 2020 by …% and amounted to … million units. The maximum increase in production volumes falls on 2017 and amounts to …% compared to 2016. The increase in the growth rate of production volumes is associated with an increase in production capacities, as well as the launch of new production sites by the main market players.

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Diagram 6. Dynamics of the total revenue of the largest manufacturers (TOP-5) of clothing in India, 2017-2021

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In general, the dynamics of the profit of the TOP-5 clothing manufacturers can be assessed as positive both for the TOP-5 and for each of these enterprises separately.

3.2. Share of exports in clothing production

Share of exports in apparel manufacturing in India 2017-2021 was relatively stable, on average over the period it amounted to …%, while since 2019 the share of imports has slightly increased and in 2019-2021. amounted to …%, given the growth in production volumes, we can talk about a trend towards further growth, however, exports can increase mainly to the CIS countries in the current difficult geopolitical situation. The share of exports in production had a minimum value in 2017 and amounted to …%, while the increase in clothing exports in 2017 amounted to 28% in physical terms. Accordingly, the share of exports with steadily increasing production volumes may remain unchanged, given the increase in exports in physical and monetary terms in proportion to the increase in production volumes.

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3.3. Segmentation of clothing production by region

Consider the production of clothing in India in terms of segmentation by region.

3.3.1. Production by Union Territories

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3.3.2. Production by states of India

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Part 4. Analysis of foreign trade supplies of clothing

4.1. The volume and dynamics of clothing imports

The share of imports in the clothing market during the study period is quite high, on average it is …%, while in 2019-2021 it decreases and has a further downward trend, since the volume of Indian clothing production increases annually. The volume of imports in the study period has multidirectional dynamics: in 2017-2018. and in 2021 the dynamics is positive - the volume of imports increased, while a noticeable slowdown in the growth rate of imports in 2019, in 2019-2020. the dynamics is negative - the volume of imports is declining. In 2020, the volume of clothing imports reaches a minimum level of 2 million pieces. with a significant negative growth compared to 187,24 in …%. The maximum volume of clothing imports falls on 2019 - ... million pieces, an increase compared to 2018 is 2017%. At the same time, it should be noted that the dynamics of clothing imports in monetary terms generally correlates with the dynamics of imports in physical terms until 10,6, when the price of imports increases, which affects the growth in imports in monetary terms.

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4.2. Import structure

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4.3. The volume and dynamics of clothing exports

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The maximum value of exports in physical terms falls on 2021 and amounts to … million units, while the volume of exports in monetary terms in 2021 also increased and reached the maximum value for the period. Due to changes in the export price in the study period, the growth rate of clothing exports in monetary terms is often lower than the growth rate of exports in physical terms: since 2018, there has been a decrease in export prices, respectively, the growth rate of exports in monetary terms is lower than the same export indicators in physical terms , at the same time, the growth rate of exports in monetary terms also has a stable positive trend in the study period. In 2018, the growth rate of imports in monetary terms was much lower than the growth of exports in physical terms, since it was during this period that the price of exports began to decline. The minimum value of clothing exports in physical terms falls on 2017 and amounts to … million pieces, the minimum value of exports in monetary terms also falls on 2017 and amounts to … thousand dollars. In general, clothing exports in monetary terms in the study period reflects a stable positive dynamics of exports in physical terms. The increase in export volumes in physical terms in the study period, with a slight decrease in import volumes and an increase in production volumes, indicates that the demand for Indian-made clothes is growing not only within the country, but also abroad.

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The volumes of clothing imports to India remain quite high, the share of imports remains at the level of …%, the share of exports in production, on the contrary, is insignificant and amounts to …%, respectively, the trade balance is negative throughout the entire study period.

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4.4. Export structure

Chart 13. Structure of exports by country in 2021

The export of Indian-made clothing is carried out mainly to the CIS countries and European countries. In 2021, export deliveries were made to more than 100 countries.

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Of course, for India, the main sales market is the countries of the former Soviet Union, where they have their own clothing production, but at the same time it does not always satisfy the country's domestic needs due to low production volumes.

Part 5. Analysis of clothing consumption

5.1. Clothing consumption dynamics

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5.2. Analysis of the results of tenders for the purchase

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In 2021, more than nine hundred tenders for the purchase of clothing for various purposes were held for a total amount of 1 million rupees.

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The main organizers of such tenders are law enforcement agencies, other organizations that ensure the safety of the population in emergency situations (Ministry of Emergency Situations, police, firefighters), hospitals, sanatorium and resort organizations, other organizations that provide uniforms for employees (airlines, railway carriers), and as well as orphanages.

Part 6. Price Analysis

6.1. Average producer prices by union territories

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The average retail price for clothing is presented according to Rosstat - monitoring of retail prices for the main types of clothing for men.

It is worth noting that the highest retail prices for men's clothing are recorded in the states of India located in remote areas (lack of production), as well as in the northern territories (where warmer and more expensive clothes are in demand, and there is also a logistical burden on the manufacturer's price) and in large cities (due to the representation and demand for more expensive clothes). The lowest retail prices were recorded in the southern regions of the country, as well as in the states of the Volga and some states of the Central federal districts, which is explained by the high concentration of producers and low logistical load, as well as competition.

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The average retail price for clothing is presented according to Rosstat - monitoring of retail prices for the main types of clothing for women.

In this case, prices for women's clothing vary from state to state in India similar to prices for men's clothing: the highest retail prices for women's clothing are recorded in states of India located in remote areas, as well as in northern territories and in large cities. The lowest retail prices were recorded in the southern regions of the country, as well as in the states of the Volga and some states of the Central federal districts, which is explained by the high concentration of producers and low logistical load, as well as competition.

Part 7. Assessment of factors of investment attractiveness of the market

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Part 8. Forecast for the development of the clothing market until 2026

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Part 9. Recommendations and conclusions

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The clothing market is one of the most stable sectors of the Indian economy - the light industry. The industry receives state support in the form of subsidies and other financial and regulatory support measures for the development of production, which is important in the current difficult economic situation. Despite the difficulties affecting all sectors of the economy in 2020, the clothing industry is increasing production volumes and introducing new technologies.

List of diagrams

Diagram 1. The ratio of imported and domestic products in the clothing market,%

Diagram 2. Dynamics of the volume of the clothing market, 2017-2021

Diagram 3. Revenue (net) from the sale of clothing by union territories for 2017-2021, %

Diagram 4. Shares of the largest competitors in the clothing market in 2021

Diagram 5. Dynamics of clothing production in India for 2017-2021

Diagram 6. Dynamics of the total revenue of the largest manufacturers (TOP-5) of clothing in India, 2017-2021

Diagram 7. The share of exports in production for 2017-2021

Diagram 8. Volume and dynamics of clothing imports in physical terms

Diagram 9. Volume and dynamics of clothing imports in monetary terms

Diagram 10. Dynamics of clothing exports in physical terms

Diagram 11. Dynamics of clothing exports in monetary terms

Diagram 12. Balance of exports and imports

Chart 13. Structure of exports by country in 2021

Diagram 14. Dynamics of clothing consumption in monetary terms, 2017-2021

Diagram 15. Forecast of market size in 2022-2026

List of tables

Table 1. STEP analysis of factors affecting the clothing market

Table 2. The main companies participating in the clothing market in 2021

Table 3. Profiles of companies participating in the clothing market in 2021

Table 4. Dynamics of clothing production in India by union territories, thousand pieces

Table 5. Structure of clothing imports by importing countries in 2021

Table 6. Data for the top 10 clothing tenders announced in 2021

Table 7. Average producer prices in the clothing market by Union Territories

Table 8. Average consumer prices in the clothing market by state in India in 2021 - menswear

Table 8.1. Apparel Market Average Consumer Prices by Indian State 2021 - Womenswear

Table 9. Assessment of factors of investment attractiveness of the clothing market

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