Wednesday, November 16, 2011: 08:08:22 PM

Retail Trend

Garment industry buoyed by retail sector

Massive growth potential and demand in market helping garment players to venture into new segments

The garment industry saw massive growth over the last decade. The growth of the retail sector has played an important part with a large number of international single brand apparel retailers entering the market and gaining quality exposure through the malls and supermarkets. The malls have also provided opportunity for small-sized garment players to enhance their market presence.

Western wear is today one of the most lucrative sectors in the country and going by the growth rate of the retail sector, it is clear the companies will shift focus towards it in the days ahead.
The total jeans market in the country is presently estimated at Rs 6000 crore and the growth rate for the same is 15-20% CAGR over the next 3-5 years. This is enough incentive for players in the garment business to foray into the jeans market. A large number of players have already announced its entry into the market and it is clear that many more are likely to follow.
Dollar Club enters the jeans market
Hosiery brand Dollar Club ventured into the lifestyle segment with the jeans brand Force earlier this year. The launch comes at an ideal time for the company considering that the Indian fashion apparel industry is one of the most lucrative sectors, this venture is likely to be fruitful for Dollar Club.
The wide range of jeans offered by Dollar Club includes regular fit, straight fit, skinny fit, absolute skinny fit and slim fit. The pricing for the jeans collection starts at Rs 899. The jeans range has been priced competitively to ensure that the brand makes it presence felt quickly in the market.
Dollar Club jeans is presently available in retail stores across eastern India and will later make its presence felt in the rest of the country.
Vinod Gupta, managing director of Dollar Industries, said, “All the Dollar products have been widely accepted by mass since the inception of the company. Hope, Force will not be an exception."
Sudar reigns supreme
In a related development, Sudar Garments Ltd, a leading player in the readymade garment industry, witnessed robust growth in the second quarter ending September 30, 2011, registering arise in net sales/income from operations by 46% over the same period last year.
Murugan Thevar, CMD of Sudar Garments Ltd, said, ‘We are witnessing good growth at present and would appreciate our team for the good job of tightening expenses while at the same time protecting investments in innovation and customer-focused approach have resulted in growth in revenues. Furthermore, we intend to have a total of 25 retail outlets in major cities of South India.”
Looking at the growth rate of the sector and players venturing into new sectors, the garment industry looks set to tap the massive market that is set to expand with the raising on the caps in retail. Foreign investors who have been eyeing the sector will take heart from the success stories and business mantrasof companies like Dollar Club and Sudar Garments, companies that rode the wave and came out winners.
Tias Chakraborty

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