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India’s denim industry to keep growth pace at 15 per cent next five years

"The Rs 30,000 crores India’s denim fabric segment is expected to grow at 15 per cent per annum in the next five years. In fact, the segment is already keeping this growth pace and will continue at the same speed in the next five years to touch Rs 54,600 crores by 2023, said experts at the 32nd IAF World Fashion Convention. The 32nd IAF convention that ended in Mumbai yesterday held a session on the denim sector ‘New Opportunities in Denim’."

 

Indias denim industry to keep growth pace at 15 per cent

The Rs 30,000 crores India’s denim fabric segment is expected to grow at 15 per cent per annum in the next five years. In fact, the segment is already keeping this growth pace and will continue at the same speed in the next five years to touch Rs 54,600 crores by 2023, said experts at the 32nd IAF World Fashion Convention. The 32nd IAF convention that ended in Mumbai yesterday held a session on the denim sector ‘New Opportunities in Denim’.

Indian denim market in focus

Indias denim industry to keep growth pace at 15 per cent next five years

Moderated by Harminder Sahni, MD Wazir Advisors the session focused on the denim industry in India and the segments and layers now divided over price and demographics. Deval Shah, Business Head-Diesel & GAS, Reliance Brands said “Denim revolution started in India in 80s and 90s from simplicity which gradually shifted to lifestyle and more so fashion of late. India continues to be one of the largest producers of denim in the world. India has 0.3 jeans as per capita consumption against 2-3 pairs of jeans in advanced world and 7 pairs in US with 96 per cent of Americans wearing jeans in the US.”

“With growing demand for denim fabric from Bangladesh, to which India exports a huge quantity, the Indian denim industry saw a huge jump in manufacturing capacity which doubled to 1.3 billion meters per annum over the last five years. The number of denim manufacturers too has gone up to around 40 now. However, around 30 per cent of this capacity generally remains idle currently due to excess production capacity. The Rs 30,000 crores denim industry is likely to face a shortage of fresh investment in the next five years” points out Subir Mukherjee, Business Head (Denim), Bhaskar Industries “India is selling cheapest pair of jeans not available anywhere in the world. If we bring down the price of jeans to $10 apiece as is currently prevailing in the US, India’s denim demand would increase resulting in this sector’s growth at 20 per cent per annum.”

In fact, Myntra has most of their sales coming out of value segment jeans between Rs 999 and Rs 1,299 a piece. And as Asthana points out online retailers do not require to incur cost on retail but a massive cost they incur on technology and last mile delivery. At Myntra for example, 60 per cent manpower is involved in the technology while the rest on other aspects of business. Asthana said the online labels created by Myntra will soon be seen in brick and mortar stores as well. “I agree that e-commerce players are in position to play big and increase the per capita consumption by promoting jeans at lower costs,” he explained.

Arguing on similar lines Claudio Grotto, Chairman GAS jeans, who looks at jeans not as the market segmentation but as a subject driven by passion said, he doesn’t look at jeans from a price perspective, while creating it, “for me the objective is that it should be a good fashionable jeans. I had been making and working on jeans for many years, even before launching GAS. Even now, I visit my shops and to know what they like, for me connect with people is very important. Be it USA, Europe or anywhere in the world, jeans only change in size and nothing else,” he opined.

Domestic brand Spykar’s director and COO Sanjay Vakharia believes lower segment of denim is growing rapidly. But, there is a need to bring cheaper segment of denim for consumers in the bottom of the pyramid. However, for Spykar as a brand selling cheap jeans in not an option as they are into retail and retail costs are high in India. “I feel it is not question of international brand or an Indian brand, over the years even international brands have also become as Indian as we are. The incoming of super premium brands like Diesel and GAS will only help our market bar to raise specially in terms prices as when GAS sells a jeans at Rs 8,000 onward, suddenly a jeans of Spykar at Rs 4,000 doesn’t look as expensive”.

Organised jointly by the International Apparel Fashion (IAF) and the Clothing Manufacturers’ Association of India (CMAI), the two-day convention was supported by the Union Ministry of Textiles and Union Ministry of Commerce. It saw the participation of all leading brands in apparel and denim sectors with over 300 delegates from India and across the world.

 
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