Indian Carpet Industry

Though floor coverings in India are one of the most ancient crafts followed till date the typical pilled carpet more commonly known as the Kashmiri carpet in India and oriental carpet internationally reached here in the 14th century. Since then the carpet industry has developed leaps and bound in terms of production, styles and patterns and so in the markets.

Indian carpet industry is primarily export oriented. Though it experienced a major set back during 1996 -2000 due to the involvement of the child labor, it has over come the jolt by implying special measures like "rugmark" and "kaleen " labels that ensure the non involvement of child labor.

The major carpet producing regions (including all types of floor coverings and durries) are Agra-Bhadoi belt in Uttar Pradesh, Kashnir, Bikaner-Udaipur belt in Rajasthan, West Bengal, Haryana, Punjab and Andhra Pradesh. There are 1215 carpet manufacturing units recorded and of that 190 are in the organized sector and the rest are in small scale industry sector.

Terry Towel - a high-up segment of Indian Home Textile

Terry or Turkish Towels were originally woven in handloom and originated in Constantinople of Turkey. Now, it is produced either by weaving or by knitting, wherein woven terry towels are much more popular. Methods of chemical processing have also a significant role in determining the quality, besides the role of different fibres and yarns mainly for manufacturing bathrobes with soft and cooling effect.

Terry fabrics, basically belong to the group of pile fabrics, wherein additional loose (with lesser tension) yarn is introduced to form loops called as piles to give a distinct appearance and effect. In the present age, pile formation is microprocessor controlled with high level of accuracy and distinct features. Some of the prominent terry towel weaving machinery suppliers in the Indian Industry are Vamatex, Saurer, Dornier, Nuore Pignone and others. After the inclusion of “Soft Flow Machine” in chemical processing decentralized sectors have also improved quality of terry towel fabrics significantly, targeting International market.

Till last decade, Indian terry towel industry was dominated by decentralized Handloom and Powerloom sectors of Panipat, Karur, Erode, Mumbai, Sholapur, Ahmedabad and Delhi, constituting the share of over 80% of the total production of Towel Industry. But, for the last 10 years, many of the organized sectors have entered in this segment.

The estimated annual production terry towels is 100,000 tons and will likely to go up to 115,000 tons with ongoing expansion and new investment by 2012 in the country. The leading players like Welspun and Abhishek Industry together account nearly 70% of the country’s production from organized sector. Other notable players in the field are Bombay Dyeing, Shri Renuga Textiles Ltd., Modern Terry Towels, Regency, Sharadha Terry Products, Santogen, Transpak Industries, Vanasthali, etc., with an average production capacity of 10-20 tons per day. Many new players of textiles like Alok Industries are also in the process of entering in to the field.

Organized Sectors are mainly moving from mid low end to mid high end market whereas decentralized Sholapur, Panipat are concentrating more on low end and domestic market. Some of the high quality powerloom fabrics from decentralized sectors are being slowly accepted in leading markets of USA and EU. In the recent past, many of them installed shuttleless rapier looms with modern processing facilities for high end solid, dobby and jacquard velour beach towel.

USA is the World’s single largest buyer for Made-ups and Terry Towels. India, China and Pakistan together supply 65% towels, 81% of sheets and 79% of comforters imported by USA. While India has a dominant position in America’s terry towel import with a share of around 26%, India’s home textile contributes around 22% i.e. US $ 4.1 billion to India’s textile export of US $ 19 billion. However, the share of terry towel is just 5.8% of total home textile export i.e. US $ 255 million in 2005-06 and US $ 239 million in 2006-07, and there is a room to grow. Till recent time, marketing effort was concentrated in USA, but many are looking for other markets of the EU and other parts of the World.

Small players are concentrating for value addition by providing decorative aspects like design, embroidery, etc. whereas bigger players are bringing various structural innovation, with better absorbency, eco-friendly inputs, fragrance, etc. Most of them are in the combined business of bed and bath terry towel products.

India still has cost advantage on availability of raw material and cheap labor for manufacturing terry towel. Looking to the growing economy and vast middle class population, domestic market is also expected to grow significantly. Many of the Indian companies are also expected to enter in the World Market predominantly through acquisition and branding with this segment in the years to come. Even some of the smaller players are moving towards export market prominently. Towels are subject to changing fashion and demand new designs with different fabric finish, loop pile and flat structures. Major functional proportion such as moisture absorbency, water retention, drying ability, resistance to abrasion, softness and feel are predominantly going to influence the consumer all the time. This should be an ongoing exercise by using different quality of yarn, fiber, proportion of water-soluble fiber component, piles’ length, fabric design and structure.

Indian Terry Towel Industry has already made a strong presence in global market and a major suppliers of Wal-Mart, Target, JC Penney, Bath & Beyond, Macy’s, Nantica and is entering World Textile with its own brand of terry-towel /Home textile in the years to come.

Indian Lingerie Industry

India holds immense growth potential for the lingerie industry, which is evident from the entry of large international brands in the Indian market in the last few years. A key factor characterizing the blooming Indian lingerie market is the increasing size of the organized market and the declining share of the unorganized market resulting in growing independent brands taking charge of the market. In addition, growing income levels of Indians and their changing lifestyles has rechristened lingerie from just an undergarment to a fashion clothing item, at least in the urban centers.
Times have changed for the better for the Indian women like never before in terms of fashion style and statement coupled with growing wealth that is helping the growth of the organized lingerie industry. From being a market worth Rs. 780 crore (US$175.9 million) in 2003, the organized lingerie market has almost doubled to Rs. 1645 crore (US$370.3 million) bustling business in the last five years.

Trade analysts and the industry insiders believe that this is because the whole scale of the Indian market has improved beyond recognition during the last five years following the advent of multinational brands in the market place and the growth of organized retail. This, perhaps, is the reason why the premium and super-premium segment of the lingerie industry, with brassieres priced above Rs. 200 (US$5) and mostly characterized by the presence of international brands, are witnessing higher growth compared to mid-market and low/economy segments.

In view of the current situation, the premium and super-premium segments of the industry are advancing following a consumer shift from economy and mid-market segments to the premium segment, while the low and economy segment is gaining from the industry being more organized.

Characterizing the premium segment are either international brands or joint venture of Indian manufacturers with international companies. Lovable, Enamor and Triumph have successfully established themselves as premium lingerie brands and brands that are in expansion mode include Etam, Benetton, La Perla and About U.

The mid-market segment is characterized by the presence of national players like Maxwell Industries (with Daisy Dee brand), BodyCare, Groversons, Red Rose, Juliet, Jockey, and Libertina.

Factors like growth in income level, preference for recognizable brands and rapid growth of organized retail is anticipated to increase the current share of the organized lingerie market of 28% in the next three years.

WATCH MARKET REVIEW

India is one of the most promising markets for the watch trade across the globe with a penetration level of only 25 watches per 1000 people as compared to the global average of 250 watches per 1000 people. As per the recent national Readership Survey Platinum Study, 60% of the population does not wear watches, leaving a vast opportunity for the industry, which remains yet to be tapped. The size of the watch industry was still languishing at around 4crore watches in the year 2008 from 2.3crore in the year 2000. The industry is expecting a faster and steady growth in the years to follow, with the proactive support of the union government (rationalization of duty structures).

India has more than 10,000 horological industry retailers. More than 5,00,000 people are directly or indirectly employed in the industry. With more players and investment coming into the country, the potential for additional employment, especially in retail areas, is expected to increase significantly.

The total investment in the “organized” watch sector is US$ 250 million and industry leaders have already announced their plans to spruce up their manufacturing capabilities. The industry has the capabilities to cater to a gigantic consumer base of 1.2 billion. Out of a total demand of more than 40 million units, the organized, sector supplies only 16 million units (approx US$ 300 million).

** HOROLOGY is the art or science of measuring time.
HOROLOGICAL INDUSTRY represent manufacturers & retailers of clocks, watches, clockwork, sundials, clepsydras, timers, time recorders and marine chronometers are all instruments used to measure time.


By - Abhishek Nayyar
For Decoy

India: Shopping with the family

Indians devote roughly the same share of their income to apparel as do Chinese and Brazilians. But the country’s lower per capita income levels mean overall spending on apparel is significantly lower, and the habits of Indian shoppers present intriguing challenges for multinationals eyeing the market. For starters, nearly 40 percent of the mass-market Indian shoppers surveyed said that their most important shopping occasions revolved around special events, such as weddings and annual religious festivals—a figure dramatically higher than the one for shoppers in the other emerging markets we studied. Furthermore, to a greater extent than elsewhere, shopping is a family activity in India: nearly 70 percent of its shoppers always go to stores with family, and 74 percent—more than twice the average of Brazil, China, and Russia—view shopping as the best way to spend time with family. The preference for family-oriented shopping is consistent across age groups, income segments, regions, and city sizes.


As in many markets, in India women are the primary decision makers in apparel purchases for the entire family. But India’s men also have an important role: indeed, half of our survey respondents said that their husbands had a major influence on which stores they frequented—a proportion far higher than the one for Brazil (3 percent), China (8 percent), and Russia (18 percent). What’s more, India is unusual in that the market for men’s apparel is larger than the women’s market, where traditional Indian apparel still dominates. Mass-market apparel retailers must therefore find formats and merchandising approaches that will attract shoppers seeking apparel not only for special occasions but also appealing to the entire family.

The cosmetics market in India

THE COSMETICS market in India is valued at Rs 712 crore and is expected to reach Rs 1,514 crore by 2012.

THE MARKET CONSISTS of eye and facial makeup products, talcum powders, lipsticks and nail enamels.

THE FACIAL MAKEUP market in India is valued at Rs 97 crore and is expected to reach Rs 200 crore by 2012.

THE LIPSTICK market in the country is valued at Rs 296 crore.

THE TALCUM POWDER market is valued at Rs 236 crore and is expected to reach Rs 495 crore by 2012.

The Indian textile industry

The Indian textile and apparel market is worth $52.5 billion (Rs 2,60,505 crore).

Out of this, the domestic market is $32 billion (Rs 1,58,720 crore) and exports $20.5 billion (Rs 1,01,679 crore).

The market is expected to grow from $52.5 billion (Rs 2,60,505 crore) in 2007 to $83 billion (Rs 4,11,679 crore) in 2012.

The manpower requirement would be about 6.5 million people in the next five years, with an estimated investment of Rs 1,25,500 crore.

Latest Retail Survey report

The total retail market is expected to touch $590 billion by 2011.

The personal care category has a 5 per cent wallet share in the Indian retail market.

Footwear is expected to become a $1 billion market in India by 2011.

Consumer durables and IT products should touch $35 billion by 2011.

The jewelry and watches category is expected to have a 5 per cent wallet share by 2011.

THE SPORTS GOODS MARKET IN INDIA

The sports goods market in India is estimated to be Rs 527 crore. The category consists of health and fitness equipment, sports equipment (cricket bats, badminton racquets, tennis racquets and so on), sports bikes and so on.

The market is growing at 20-25 per cent a year.

Seventy-eight per cent of the Indian sports goods market exists in the top 784 urban centres. A- and B-type cities (the top 119 cities) together contribute 51 per cent of the total sports goods market.

The Indian sports goods industry, particularly for sports equipment and sport bikes, is dominated by local manufacturers as India is an established manufacturing base for sports equipment.

Health and fitness equipment is a fast-growing category, particularly in AAA- and AA-type cities. This category has seen a rapid increase in imports. About 40 per cent of the high-end sports and fitness equipment sold in India, such as tread mills, is imported.

Sales of sports goods, particularly fitness equipment, also happen through tele-shopping networks, mainly due to the absence of organised retailers in the category.

Most consumers (62 per cent) prefer to buy sports goods from specialised sports goods retailers located in the nearest market.

OPTICAL RETAILING IN INDIA

The current size of optical retailing in India is estimated at Rs 2,700 crore, and is projected to grow over Rs 6,000 crore over the next five years.

The split by categories is: spectacles (80 per cent), sunglasses (18 per cent) and contact lenses (3 per cent).

The market for these categories is estimated to be growing at a CAGR of 18-20 per cent.

The usage of contact lenses is still limited to a small number of users. However, an increase in affordability is expected to drive the category growth.

The organised segment contributes to a small portion of the overall market. The turnover of the organised segment is estimated to be approximately Rs 350 crore to Rs 400 crore.

Within the organised segment, the share of sunglasses category is around 40 per cent.

Though department stores are a recent phenomenon, they already account for a third of organised sunglasses market in India.

he optical retail market is poised for a healthy growth of 18-20 per cent annually, from the current Rs 2,700 crore.

It is expected to more than double in the next five years and attain a size of Rs 6,000 crore.

The optical market is highly unorganised (83 per cent), but with the products coming in the ambit of lifestyle purchases. With fundamental changes in modern retail, the organised share within this category is likely to gain impetus in the coming years.

The contribution of branded sales to the overall optical retail market for the sunglasses category is significantly high (70 per cent).

The spectacleS market remains highly unbranded — only 20 per cent of the market is branded. One-fourth of the sales for spectacles are through opticians/doctors — this emerges as an important channel for any player entering into the spectacles category.

The market is predominately unorganised and the majority of outlets are located mainly in neighbourhood markets. Most shops are just about 350-400 sq ft.

THE INDIAN SILK MARKET

World silk production is estimated to be 95,000 metric tonnes (MT). The world market for silk and silk products has grown by a mere 4 per cent in the past few years.

China and India together produce more than 80 per cent of the world’s raw silk.

Although India is the second-largest producer of silk in the world after China, it accounts for just 5 per cent of the global silk market — the bulk of Indian silk thread and silk cloth is consumed domestically.

The sericulture industry is land-based as silkworm rearing involves over 700,000 farm families and is concentrated in the three southern states of Karnataka, Tamil Nadu and Andhra Pradesh.

The US (3 per cent) and the EU (2 per cent) are the largest markets for silk outside Asia, but with minuscule growth rates.

US imports of silk bed linen have almost doubled in the past two years, India commands a 40 per cent market share in the US silk bed linen market.

Over 90 per cent of the silk produced in India is multi-voltine in nature, while in the US and EU markets, the demand is mainly for bivoltine silk.

Of the 300,000 looms in the Indian silk weaving sector, only 10 per cent are powerloom; the rest are in the handloom sector.

CONSUMER SPENDING IN PREMIUM TIMEWEAR

Luxury timewear has a market potential of Rs 5,386 crore.

The category engagement for males is 77 per cent compared to 31 per cent for females.

A mere 31 per cent penetration in premium watches for women indicates that watches are more of an accessory to them than time-keeping devices. On the other hand, to men, it is a style statement.

The per capita annual spend on premium watches for men is Rs 23,000 and for women it is Rs 42,000.

Consumers (both men and women) of up to 30 years are the highest spenders in the category — the estimated average being Rs 46,000 for women and Rs 76,000 for men.

Men living in metros spent Rs 27,000, which is more than what men staying in non-metros spend on premium watches, which is Rs 15,000. Clearly, the metro consumer is buying into designer brands, which typically start upward of Rs 25,000.

In the case of men, North has the highest spending with Rs 31,500, followed by West: Rs 20,000.

In the case of women, again, North has the highest spending per annum at Rs 38,000 followed by South with Rs 22,000.

THE HEALTHCARE AND BEAUTY PRODUCTS MARKET IN INDIA

The market for health and beauty products currently stands at $24 billion.

Organised retail formats contribute to a mere 1-1.5 per cent of healthcare and beauty care product category sales, while the share of organised retail trade format in India is 3-4 per cent of total retail sales.

There has been a shift in consumer mindset from “curative” to “preventive” with 14 per cent of the healthcare spending on preventive healthcare.

The personal care and grooming industry is also growing, with 2.1 per cent share of total household wallet of Indian consumers going to personal care.

The category mix is also evolving with the pharmacy component decreasing from 80 to 50 per cent, and the health and beauty segment increasing.

Moreover, impulse purchase items mainly from the FMCG stack are becoming the drivers for improving bottom lines.

All India sales from chemist stores in 2010 is expected to be Rs 49,000 crore ($10 billion).

THE JEANSWEAR MARKET IN INDIA

The branded jeanswear market in India was worth approximately Rs 2,100 crore in 2006, with about 35 million consumers in India purchasing over 44 million pairs of jeans.

Men account for the bulk of consumption at 76 per cent, followed by women (17 per cent) and children (7 per cent).

About 80 per cent of the jeanswear in India is branded.

The primary consumer group is the 16 to 25 age group, which buys denims largely for emotional connectivity.

The secondary target’s — 25 years and above — purchase decisions are also influenced by emotional appeal, but largely by the functional purpose of jeans.

The domestic jeanswear market is growing at 10 per cent a year. Moreover, domestic demand for denim is better than international demand.

The super-premium subset (Rs 2,000 and above) is strengthening with increased brand presence. It is currently dominated by non-Indian and domestic “designer wear” labels.

The potential of the under-Rs 300 jeanswear segment is massive and largely untapped. The estimated valuation is about Rs 2,300 crore, which is greater than the size of the total branded jeanswear market.

The market for key chains in India

The current market for key chains in India is estimated at Rs 65 crore for SEC A and B (for the 15- to 25-year age group) in urban India. Key chains’ share in the Rs 4,245-crore fashion accessories market is a mere 1.53 per cent. In terms of volume, the key chains market in urban India is estimated at 5.6 million units a year. The average spenD per unit for men is Rs 55 (for urban Indian consumers in the 15- to 25-year age group in SEC A and B) while the average spent per unit for women is Rs 85.

Most consumers (43 per cent) buy key chains as an impulse purchase while window shopping.

The unbranded market constitutes 95 per cent, while the branded market is only 5 per cent.

Consumers prefer buying key chains from street hawkers (27 per cent) and kiosks (27 per cent).

The market for college bags for youth in India

The total value of the bags market in urban India for the youth is estimated at Rs 1,470 crore a year.

The market for college bags is 25 per cent of the total bags market and is valued at Rs 370 crore.

The total volume of the college bags market in urban India is estimated at 0.46 crore units a year, which is 34 per cent of the total market for bags.

On an average, men spend Rs 570 per unit on college bags, while women spend Rs 450 per unit.

Fifty-two per cent consumers prefer buying college bags from multi-brand outlets.

Thirty-eight per cent consumers prefer shopping at popular shopping markets/ streets, when they want to purchase college bags.

THE MARKET FOR GYM BAGS IN INDIA

The total value of the bags market in urban India for the youth is estimated at Rs 1,470 crore a year.

The market for gym bags is 7 per cent of the total bags market and is valued at Rs 125 crore.

The total volume of the gym bags market in urban India is estimated at 0.12 crore units a year, which is 9 per cent of the total market for bags.

On an average, men spend Rs 545 a unit on gym bags while women spend Rs 840 a unit.

Sixty-four per cent of consumers prefer buying gym bags from exclusive brand outlets.

Thirty-seven per cent of consumers prefer shopping at malls when they want to purchase gym bags.

The market for office bags for youth in India

The total value of the bags market in urban India for youth is estimated at Rs 1,470 crore in 2007.

The market for office bags is 26.5 per cent of the total bags market and is valued at Rs 390 crore.

The total volume of the office bags market in the urban India is estimated at 0.14 crore units a year, which is 10 per cent of the total market for bags.

On an average, men spend Rs 1,790 per unit on office bags, while women spend Rs 1,885 per unit.

Most consumers prefer buying office bags from organised multi-branded outlets (36 per cent) or exclusive brand outlets (29 per cent).

Forty-eight per cent consumers prefer buying office bags shopping at malls.

The market for ladies handbags in India

The total value of the bags market in urban India is estimated at Rs 1,470 crore a year.

The market for ladies handbags/purses in India is 39.7 per cent of the total bags market and is valued at Rs 585 crore.

The total volume of the ladies handbags/purses market in urban India is estimated at 0.63 crore units a year, which is 46 per cent of the total market for bags in terms of volume.

On an average, men spend Rs 750 per unit while buying handbags for ladies, but when women shop for them, they tend to spend a lesser amount, that is, Rs 565. Most consumers prefer buying ladies handbags from exclusive branded outlets (28 per cent) or department stores (24 per cent). Forty-five per cent consumers prefer to shop for them at malls.

The market for genuine leather wallets in India

The total value of the wallets market in urban India is Rs 555 crore.

The market for genuine leather wallets is 25.2 per cent of the total wallets market and is valued at Rs 140 crore.

The total volume of the leather wallets market in urban India is estimated at 0.46 crore units a year, which is 61 per cent of the total market for wallets.

On an average, men spend Rs 570 a unit on leather wallets, while women spend Rs 670 a unit.

Most consumers prefer buying leather wallets from exclusive brand outlets (32 per cent).

Forty-eight per cent consumers prefer buying leather wallets while shopping at popular big markets/streets.

The market for leather look-alike wallets

The total value of the wallets market in urban India for youth is estimated at Rs 555 crore a year.

The market for leather look-alike wallets is 13 per cent of the total wallets market and is valued at Rs 70 crore.

The total volume of their market in urban India is estimated at 15 lakh units a year, which is 20 per cent of the total market for wallets.

On an average, men spend Rs 290 a unit on such wallets while women spend Rs 330 a unit.

Most consumers prefer buying these wallets from multi-brand outlets (27 per cent).

Thirty-one per cent consumers buy them shopping at local neighbourhood/colony markets.

The Indian apparel market

The apparel market in India is estimated at Rs 1,17,300 crore*. It is growing at CAGR 13 per cent and is expected to reach Rs 2,17,000 crore by 2012.

The apparel market is divided into four categories: men's wear, women's wear, unisex wear and kids' wear.

The men's wear market accounts for 35.5 per cent of the total apparel market and is valued at Rs 41,700 crore.

The women's wear market is 32.3 per cent of the total apparel market and is valued at Rs 37,900 crore.

The unisex-wear market, valued at Rs 8,900 crore, is 7.5 per cent of the total apparel market.

The kids' wear market is estimated at Rs 28,800 crore. It makes up 24.5 per cent of the total apparel market.

The market for leather look-alike belts in India

The total value of the belts market in urban India for the youth is estimated at Rs 840 crore a year.

The market for leather look-alike belts is 23.2 per cent of the total belts market and is valued at Rs 195 crore.

The total volume of these belts in urban India is estimated at 0.41 crore units a year, which is 31 per cent of the total market for belts in terms of volume.

On an average, men spend Rs 320 per unit on leather look-alike belts while women spend Rs 285 per unit.

Most consumers prefer buying them from multi-brand outlets (38 per cent).

Forty-one per cent consumers buy these belts while shopping at popular markets/shopping streets.

The market for leather belts in India

The total value of the belts market in urban India for the youth is estimated at Rs 840 crore.

The market for leather belts is 60.1 per cent of the total belts market and is valued at Rs 505 crore.

The total volume of the leather belts market in urban India is estimated at 1.35 crore units a year, which is 40 per cent of the total market for belts.

On an average, men spend approximately Rs 595 a unit on leather belts, while women spend about Rs 625 a unit.

Most consumers prefer buying leather belts from organised multi-brand outlets (23 per cent) or exclusive brand outlets (24 per cent).

Forty-three per cent consumers prefer buying leather belts while shopping in malls.

The fabric belts market in India

The total value of the belts market in urban India for youth is estimated at Rs 840 crore a year.

The market for fabric belts is 16.6 per cent of the total belts market and is valued at Rs 140 crore.

The total volume of the fabric belts market in urban India is estimated at 0.37 crore units a year, which is 27.4 per cent of the total market for belts.

On an average, men spend Rs 250 a unit on fabric belts, while women spend Rs 235 a unit.

Most consumers prefer buying fabric belts from street hawkers (31 per cent) or unorganised multi-brand outlets (24 per cent).

Thirty-one per cent consumers prefer buying fabric belts while shopping at big shopping markets/streets.

Indian Economy

Indian Economy

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