By Arun Roongta Editor & Publisher

1. I N D I A Your Big Marketing Opportunity By Arun Roongta Editor & Publisher

2. For Domestic Consumption For Export Production For Re-export (Trading) India a big market

3. Population - 1 Billion Per capita domestic fabric consumption is 34 mtrs., one of the lowest in the world. Overall consumer spending grew by 12% p.a. On Textile & clothing it grew by 48% in 2003. One of the fastest growing economy, at the rate of 6% p.a. One of the lowest consumer of man-made textiles in the world.(only 25% of total fiber consumption against the world consumption of 52%.) India a big marketfor domestic consumption Contd….

4. Garment Exports target is USD 25 billion against current export of USD 5.8 billion.This will need huge additional quantity of fabrics. Leading global buyers like GAP, JC Penney, Otto, Sarah Lee & Wal-Mart have set up new sourcing office in India with huge sourcing targets India’s image is acquiring the image of a superior quality and highly flexible supplier amongst European and American buyers. A gateway to large non-resident Indian population in the gulf countries, Africa, UK & rest of the world India a big marketfor export production

5. Increasing buying by traders of neighboring countries like Nepal, Sri Lanka, Bangladesh for their domestic consumption due to cultural similarities India a big marketfor re - export production

6. Organised garment brands Unorganised Garment manufacturers Organised Garment manufacturers Fabric Retail channels Designers & Boutiques Tailoring Elements of marketFor Domestic Consumption

7. Fabric buying through different channels & their growth ratefor Domestic Consumption

8. About 50 Global Brands Operating (Levi’s, Dockers, Arrow, Van Huesan, Allen Solly, Louise Phillipe, Lee, Lacoste, Lee Cooper, Nike, Marks & Spencer) About 50 Indian Brands with over 10 million US dollar sales ( Park Avenue, Zodiac, Killer, Oxemberg, Blackberry’s) Mainly cater to men’s wear & Unisex Casual wear (Trousers, Shirts, Jeans , T -Shirts) Average daily Sales - 1000 - 4000 pieces. Buy Fabrics directly from Mills/manufacturers Organised garment brands Elements of market for Domestic Consumption

9. Unorganised Garment manufacturers • Unbranded garment seller • Very large in numbers (About 1,00,000 units) • Disbursed all over the country • Average production 50 -2000 pieces per day • Mainly cater to kids wear & Women’s wear • Buy fabrics through traders/distributors Elements of market for Domestic Consumption

10. Produce for garment exporters, merchant exporters & organised garment brands Produce for institutional buyers, specialised industrial clothing About 150 factories with average production between 500-1500 pieces per day Are supplied fabrics by companies they produce for Organised Garment manufacturers Elements of market for Domestic Consumption

11. Consumers buying fabric length to get clothes from tailors(Trousers, suits, women’s dresses, blouses) There are 5 million retailers of which 20% cater to textiles Major retail chains and Shopping Malls are rapidly emerging in India catering to the Middle, Upper Middle and Upper class of the consumers. Shopper’s Stop, Westside, Lifestyle, Pantaloons, Globus, etc… Fabric Retail channels Elements of market for Domestic Consumption

12. India is slowly developing its fashion industry. Designs of Indian designers are being shown at the major fashion centers of world like Milan, New York and Paris. The Designers do a annual business of USD 250 million Designers & Boutiques Elements of market for Domestic Consumption

13. Reducing in urban India and metros (28% population) but growing in Semi-urban & rural(72% population) India Tailors are increasingly becoming fabric sellers as in Hong Kong, Taiwan and Thailand. Superior fabric manufacturers like Raymond, BSL & Grasim are increasing their market presence through this channel Can be reached through wholesalers & distributors only Tailoring Elements of market for Domestic Consumption

14. Traditional Women Wear - Sarees

15. IndianDesigner Saree

16. Formal Women Wear - Churidars

17. Formal & Traditional Men’s Wear

18. Formal Designer Wear - Churidars

19. Indian Urban Wear

20. Overall Per capita Textile Urban/Rural consumption

21. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas. The money available to spend on FMCG (Fast Moving Consumer Goods) products by urban India is Rs. 49,500 crores (11 billion US$) as against is Rs. 63,500 crores (14 billion US$) in rural India. Indian Urban/Rural markets

22. Total Textile consumption

23. Fiber usage in India per person per year 2.8 - 2.9 kg/person/year Manmade - 25% Natural - 75% Per capita fiber consumption

24. Fiber & Filament Consumption in India in India

25. Conventional Small Exporters, exporting fashion goods all over the world including Asia, to small semi - organised buyers - exports - below 2 million dollars p.a. - about 5000 in numbers Medium sized exporters catering to wholesalers, designers & smaller chain stores in Europe and US - 2 million to 8 million dollars p.a. - about 250 to 300 companies Large sized exporters catering to well known brands and stores like GAP, Macy’s, M&S, Wal-mart - 8 million to 50 million dollars p.a. - about 50 - 75 companies Very large sized exporters working with long run programs with biggest global buyers - 50 to 100 million dollars p.a. - 30 to 35 companies Elements of market for Export Production

26. Made-up manufacturers Yarn exporters Processed apparel fabric exporters Grey fabric/sheetings exporters Furnishing fabrics exporters Fashion accessories & home accessories exporters Elements of market for Exports

27. Trade channels Merchant Exporters Garment factories in countries like Sri Lanka, Nepal, Bangladesh, Mauritius with Indian investments Elements of market forRe-exports

28. Indenting agents Importers Distributors Wholesalers Semi-wholesalers Retailers Trade channels - markets/distribution

29. Effective for developing markets and wholesalers Cater to all types of demands Very loyal to companies Well connected Work on margins between 3 - 5 % Operate from larger cities with good infrastructure Effective for supplies to big garment exporters & domestic brands Work for multiple companies Indenting agents Trade channels - markets/distribution

30. Stock & supply Work on higher margins Limited volumes Do not cater to Ready made garment demands but sell through trade channels Largely buy stock lots Require high working capital hence limited buying Importers Trade channels - markets/distribution

31. Spread across India Good to create network if long term perspective Medium to large operations More planned in their purchase Distributors Trade channels - markets/distribution

32. Work through distributors Have a strong reach with fabric retailers Strong reach with smaller garment manufacturers Mainly act as credit agents Expand reach in semi-urban & rural markets Semi - Wholesalers Trade channels - markets/distribution

33. 5 million of which 20% deal with clothing and textiles Not possible to cater to retailers directly since they are highly scattered Changing over to ready made garments in cities like Mumbai, Delhi & Bangalore Retailers Trade channels - markets/distribution

34. Trade fairs Buyer Seller meets Indenting agents Distribution channels for reaching out to bigger users of fabrics

35. Textile & Garment Import Scenario - India Total imports into India Countries-wise imports Items-wise imports Country-wise competitive perceptions Country-wise qualitative perceptions Import Duty structure Detailed statistics Import of textile products in India

36. Imports were worth US$ 798.77 million during April-February 2002-2003. Imports are growing slowly, but consistently. During April-February 2002-2003 grew by 23.16%. Imports shifting in favour of more value-added products - from fiber to yarn to fabrics The growth was highest in the low end products – cotton yarn and fabrics and man made filament yarns. Textile Import Scenario - India Contd...

37. The share of both these categories increased by around 4% at the cost of readymade garments whose share declined further. China continued to be the top supplier although their growth rate decelerated from 73.48 % during April-January 2002-2003 to 67.97% during April-February 2002-2003. Textile Import Scenario - India

38. Italy - worsted, poly/wool, 100%wool Korea - Synthetics & specialty fabrics like flock, velvets, jacquards in blends of man-made & natural fiber China - coarse & medium synthetic & polyester cotton blends(basic fabrics), low end synthetics, silk yarn, low end worsted fabrics Indonesia - 100% polyester Prints & Denims Taiwan - polyester filaments, menswear fabrics, knitted fabrics(polar fleece) India’s Current Product/ Country import relationship

39. Imports of Textile Items Contd….

41. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

42. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

43. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

44. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

45. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

46. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

47. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

48. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

49. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.

50. Source : Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S, Kolkata.