ANALYSIS: CHANGING PROFILE OF INDIAN CONSUMERS

ANALYSIS: CHANGING PROFILE OF INDIAN CONSUMERS

According to NCAERs latest Indian Market Demographics Report companies that have found consumer sales flattening over the past few years have come up with the concept of power brands to help tackle this.

The report suggests that for stimulating market demand there are two ways one is related to consumer finance and secondly by getting the government to focus on greater infrastructure development.

According to this report, while consumer finance accounts for just a sixth of the purchase of the white goods in the country, financed goods have the highest growth rates today. For both rural and urban areas as a whole, financing added around a fifth to demand.

As per the report an equally interesting fact is the implications for expansion strategies. Companies keen on growing the market need to know that they may have to adopt different strategies for different products.

One can also expect a rise in demand in all segments due to increase in income levels of consumers. With income levels rising especially in the post reform period the number of upper medium and high-income households will rise and thus the consumption pattern will undergo a sea change.

The implication of financing and increase in income can be seen in the Indian economy with lot of spending by all segments of the society in cheap and expensive products and services.

In the Indian scenario, thanks to economic growth and liberalization there is increased demand for better products and retailing from Indias first generation of demanding, cash rich consumers. Factors like rising rural and urban incomes, media exposure, changing socio economic structures and new awareness about rural marketing are the main drivers of this trends.

In the recent years, therefore a large number of business houses have invested heavily in setting up stores, malls and other retail businesses. While there are several forms and categories being experimented with, five main retail categories are malls, department stores, supermarkets, category stores and single brand retailers. Another way to segment organized retailing is by what they sell: food and groceries, consumer durables, precious items and books, music and apparel being some of them. You only have to go around any Indian metro to know that a retail revolution is on. It is impossible to miss the malls (Ansals, Crossroads), department stores (Shoppers Stop, Lifestyle, Globus), food and grocery supermarkets (Food World, Nanz), category stores (Music World, Crossword) and single brand outlets (Titan, Reebok) that are mushrooming all over. Other formats discounters (Sabka Bazaar), fast food and beverage vendors (Mc Donalds, Barista & caf Coffee Day) are also being experimented with. Each category has distinguishing characteristics, with each performing certain specialized functions. But one thing common to both forms of segmentation is location: they are predominantly urban. Most goods are designed for urban segment and sold there itself.

These are signals that retailing is attracting big bucks and aggressive entrepreneurship. But consider the other side of the picture. Despite the huge number of retail formats being experimented with, none of them actually touch the rural sector where the bulk of the population lives. Even otherwise the organized retailing is nowhere near its potential: the share of organized retailing in India is only two percent of the total market.

Indian Garment Market:

At a time when the new WTO regime could threaten the existence of the garment industry, why was the government coming down heavily on them is the question that arises in the mind of garment manufacturers in India.

A mere 0.5% of these companies have turnovers of more than Rs. 100 crore ($21 million) every year. The bulk of them exports garments worth Rs 20 crore ($4.2 million) or less.

The level of automation in apparel making is relatively low in India. World Bank study in 1998 said the average investment per machine in a typical Indian garment factory was just $250 compared to $1,500 in China and $1,260 in Thailand. Naturally, productivity is lower among Indian garment manufacturers. For example, a Hong Kong manufacturer makes 20.6 blouses per day per machine while the Indian average is 10.2. A Mc Kinsey and Company study noted, using the number of shirts produced per day as a measure that productivity in India is 16% of that in the US.

As the level of competition intensifies, Indian garments manufacturers will face two kinds of challenges. One, as buyers consolidates and, hence, place bigger orders with fewer suppliers, exporters must have the scale to compete on costs and quality. That will require sizeable capital expenditure, which the smaller companies will be hard put to make. Two, manufacturing units will also need the flexibility and the ability to deliver orders on time. For that, the supporting infrastructure required from fabric sourcing and dyeing facilities to ports and customs have to be perfectly synchronized.

Even as the changes in the world market play out, a sizeable majority of the garment industry has still not woken up to the challenge. To survive most of the still expect generous handouts from the government instead of securing their own future. A large majority of Indian garment manufacturers have competed on price. But now, value additions are critical. And most of them simply do not have the technology or the management skills to survive.

THE BAD NEWS

The industry was almost killed off by bad government policies, like that for power looms.

Indian garment companies are small and fragmented and cannot invest big capital to capture the new demand. The textile secretary says a shakeout is imminent and, after that, only 3,000 of the 20,000 companies existing now will survive. The rest will either close or merge.

Infrastructure is very poor and hampers an efficient export operation. It takes seven days for a shipment from Delhi to leave the Mumbai port as against 24 hours in China and Thailand. Power cuts are rampant in Bangalore and Tirupur.

Time is running out. In the last three years. Bangladesh, Vietnam and some African countries have reformed their industry and are today more cost competitive than India. China, too, could gobble up the entire demand if India does .not wake up in time.

Now broadly, there are four important stages before arguments made. Raw cotton is spun into yarn. Yarn is woven in fabric. The fabric is then processed (dyed, etc.). Finally, the fabric is convened into a garment or a made-up like a towel. India, except for the first stage of spinning, the other three a fragmented and under-developed.

Garment manufacturing, too, remained, fragmented because it was reserved for the small-scale sector. Manufacture units could not exceed more than Rs 1 crore investment in plant and machinery. This shortsighted policy ensured that the big organized sector did not invest in garment manufacture. In China, most of the companies are integrated players producing everything from yarn to garments.

Two years ago, the government corrected the anomaly by throwing open garment manufacturing to anybody who could invest. In fact, it went one step further. It has now allowed 100' foreign direct investment without any export obligations to spur new investment in the sector.

Clearly time is running out. So unless both the industry and the government work together to develop and executive a common blueprint, may well be a case of yet another missed opportunity.

CULTURAL REVOLUTION IN INDIA:

Globalization has fueled a cultural revolution in India an American cultural revolution. The changes, spurred by the last 10 years of U.S.-centric economic policies, have forced a transformation almost as monumental as the 200-odd years of British colonial rule.

Until the 1990s, India's semi-socialist regime had waged a fairly successful battle against American consumerism, but financial crisis finally forced the government to open up the country. Today, America's influence is corroding India's rich culture and unique traditions.

Young people, mesmerized by popular television programs like "Baywatch" or "The Bold and the Beautiful," have taken to emulating program characters. Indian teens are also increasingly obsessed with going to the gym or jogging in name brand sneakers Reeboks or Nikes like their American peers. Western-style fashion shows are now common, and sexual promiscuity is on the rise.

Teens today know the inside scoop on Madonna's private life, but often have not heard of Khudi Ram Bose, one of India's freedom fighters against British rule. This stands in stark contrast to the 1960s, '70s and '80s, when students were at the forefront of social and political struggles in India. Today, most youth dream of getting to the United States on a scholarship, through a job, or by marrying a green-card holder.

"The Indian elites have never been more adrift from their cultural roots than at present," says Pawan K. Verma, author of The Great Indian Middle Class, about the social attitudes of Indians in the post-globalization era.

Traditional dress for Indian women, the saree and the salwar kameez, have been cast aside in the bigger cities for Wrangler or Lee jeans with skimpy half-shirts baring the mid-riff. And countless Indian girls have taken to dying their hair blonde, as more and more beauty parlors pop up to fill the demand.

America's influence has turned Indian values on sex and marriage upside down. Divorce rates have multiplied. In bigger cities, an increasing number of Indian women are deciding to live and stay alone, forming a new identity for India: 'the single woman.'

The penetration of American values in India has forced a market shift towards greater service orientation, and a corresponding increase in manufacturing activity. Credit fever has infected Indians, encouraged by the greater availability of bank loans and credit cards.

"The process of globalization in the West was spread over a period of more than 200 years. In India, it has come in a compressed form of 10 years," says Sheo Narayan Singh Anived, a senior government official and prominent intellectual. "And [the globalization process] rides piggyback on the American communications systems the world's most efficient and powerful communications systems. Therefore, [globalization] is bound to have the sort of impact that it is having in India and the rest of the Third World."

Cellular phones have become indispensable for urban Indians. Internet use has skyrocketed as more and more Indians spend time in cyber chat rooms debating a range of subjects from love to politics or pornography. Hindi versions of programs like "Who Wants to be a Millionaire" and "Who Wants to Marry a Millionaire" have also sprung up.

Still, while American culture is revolutionizing India's urban centers, rural India largely remains untouched. Last year, then-U.S. President Clinton visited a village called Nyala, but 37-year-old Shahnawaz Khan, who lives in a village nearby, doesn't remember Clinton's name. He refers to Clinton simply as "Duniya Ka Shahenshah" "ruler of the world" in the local Urdu language. Khan, a father of six, is from Garhi Mewat, a village 140 kilometers from New Delhi in the northern state of Haryana. Khan recalls that Clinton talked about empowering Indian women and donated six computers to the village.

"The [ruler] comes here and whiles away his time with silly women and donates these useless machines. If he had to donate, he could have given us cows, buffaloes and tractors. Or he could have taken us to America to work as laborers," Khan says.

For Khan and his generation in Garhi Mewat, known as the Village of Thieves, life was fine up until the 1990s when globalization began to fully penetrate India. The villagers had been traditional thieves. But now, with globalization and the bombardment of American ideas, thievery as a profession is out of fashion. Today, the younger generation migrates to nearby towns in search of work as brick kiln or construction workers. One enterprising fellow even set up a cyber caf in a nearby town.

Life is tough now for Khan. Thievery is out. And villagers do not have the resources or training to be farmers. Many of the village wives and daughters turned to prostitution to make ends meet. Now, the Village of Thieves has come to be known as the Village of Prostitutes, and Khan blames Bill Clinton or George W. Bush and the past 10 years of the free economy.

"The Indian economy has been, or is being, liberalized while the [rural] society has continued to remain feudal and closed," says Singh Anived, the government official. "Only small bits of modernity have been released into the Indian society from time to time."

For most urban middle-class Indians, essentially upper caste Hindus, there is nothing wrong with India's changing economic priorities, nothing misplaced about the investments in golf courses, ultra-modern mansions or five star hotels, no harm done if the world's biggest fast food chains from Pizza Hut to Kentucky Fried Chicken and McDonalds have set up shop. In Bangalore, the capital city in the state of Karnataka, a group of America-returned Indians set up an institute to familiarize Indian businessmen with the mannerisms, culture and work ethic of Americans.

In the predominantly Hindi-speaking northern state of Rajasthan, the stage for an anti-English movement about a decade ago, tens of thousands of Indians are scurrying to English language institutes. Even villagers from adjoining areas of the capital, Jaipur, have enrolled in English language school. On last count, 40 such centers had opened in Jaipur, including institutes with high-sounding names such as the Gothe et Rolland Forum de Lingua and Havard Finishing School (a humorous misspelling of the renowned New England ivy league university).

While globalization may have brought prosperity to some, studies show that for 80 percent of the population economic circumstances have remained virtually unchanged. More than 50 percent of the population in Indian cities live in degrading squalor, and about the same number are unable to afford two meals a day. Illiteracy is near 40 percent. Tens of thousands in India continue to die of malaria, tuberculosis, or even diarrhea. And every third person in the world without adequate drinking water is Indian, according to the Center for Science and Environment, an Indian nongovernmental organization.

Other than a few notable incidents like the 1998 stoning of a Kentucky Fried Chicken shop, there has not been a significant public reaction against American cultural intrusion. In the Western state of Maharashtra, activists wage a continuing campaign against an Enron power project. And the Swadeshi Jagran Manch, a group affiliated with one of the main political parties, recently launched countrywide protests against the government's "sell out" to multinationals. The group recently began a campaign to support domestic consumer goods.

Sudheesh Pachouri, a New Delhi-based media critic and sociologist, says U.S. influence has not been all bad. "Americanism essentially incorporates universal values of human rights," he says. "What this has come to mean in India is that a new space has been created for the oppressed sections and these sections have found a voice. Or, how would one explain the sudden demand that has emerged in India for the inclusion of the Dalit question at the United Nations Conference on Race?"

The condition of the Dalit, or lower-class Hindus who make up 80 percent of India's population, is a sensitive and volatile socio-political issue. The debate over Dalit rights was re-ignited following the demand by some Indian groups that the issue be included in the agenda of the United Nations Conference on Racism, held earlier this year in South Africa.

In some ways, globalization has drawn members of India's left and right together against what they see as the imperialistic designs of the United States. They say India is a battleground for the United States, eager to maintain a substantial presence in the region in order to contain China's perceived expansionist designs. They also say American business interests have dealt a deathly blow to India's self-reliant economy and are making Indians economically dependent on the United States.

Indian society also has been transformed by the Internet and cable television--forces young people are best equipped to exploit.India's youth are already having an enormous impact: on the economy, on companies hoping to sell them products, on the media, and on the culture. Unlike previous generations, today's youth are not obsessed with the ins and outs of politics. Thus the current election, which pits the ruling Bharatiya Janata Party against the Congress Party, has failed to ignite the passions of the young. ''Today, even if Parliament blew up, no one from this generation would notice,'' says Rama Bijapurkar, a marketing consultant. ''It has little relevance for them.'' Liberalization's children also differ from their conservative, insular parents in that they proudly mix Indian values with Western packaging. They enjoy wearing saris and still admire Mahatma Gandhi. But they also like wearing blue jeans, drinking fizzy sodas, and watching MTV.

This generational shift in attitudes is all the more important because this group is growing so rapidly. Some 47% of India's current 1 billion population is under the age of 20, and teenagers among them number about 160 million. Already, they wield $2.8 billion worth of discretionary income, and their families spend an additional $3.7 billion on them every year. By 2015, Indians under 20 will make up 55% of the population--and wield proportionately higher spending power.

As this group, with its more materialist, more globally informed opinions, comes into its own, sociologists predict India will gradually abandon the austere ways and restricted markets that have kept it an economic backwater. These youth will demand a more cosmopolitan society that is a full-fledged member of the global economy. They will start their own businesses and contribute to a more vibrant economy. They also are likely to demand more accountability from their politicians. ''This is the generation that is reclaiming India's future,'' says Gurcharan Das, a former chief executive of Procter & Gamble Co. India and author of a forthcoming book on India in the next century. ''This is India's 'found' generation.''

FIRST TASTE. Obviously, many millions in this group remain locked in a struggle with poverty. But out of the teenage population, some 22 million belong to the urban middle class and are in a position to influence the economy dramatically as they grow older. Another 100 million or so live in rural India. Even here, many young people are having their first taste of rising prosperity and expectations.

One result is that computer literacy and education are eradicating caste barriers. While caste and social position still dominates Indian politics, sociologists predict the rigid lines of the system will continue to ease. Already, urban youth are more concerned with their professional ambition than their caste.

In addition, massive computer literacy could do plenty for India's economy. National per capita income is currently $450 per year. But a 10% increase in computer literacy in a single year would push per capita income up to $650.

FASHION ARENA:

If your books about India tell you that India is one of the largest exporters of tea, jute and tobacco, and that's it... get yourself a real education: India also happens to be one of the biggest players in the international fashion arena, in fabric sourcing for fashion wear.Talk to any garment exporter in India, and you will find occasional references to "a heavy booking season", and that "buyers are in town". So who are these buyers? Next and Top Shop of the UK, Federated Stores, R.H. Macy's, Target, Maryn's, to name a few - all names you have read of in fashion magazines or heard your fashion-savvy cousins pontificating about with religious fervor. These and many other international fashion chains have made a beeline to India for its mind-boggling range of fabrics, new concepts to incorporate in their own designs, as well as for a sneak preview of what will be hot on the international markets next season. This works boths ways, Indian garment exporters are extremely quick on the uptake about what will sell next year, and fashion houses go home with new ideas, new fabrics to use, and new sources of raw material.

The Indian garment and fabric industries have several major factors going in their favor, in terms of cost-effectiveness in manufacture and raw material, quick adjustment to what will sell, and a vast and relatively inexpensive skilled work force. India offers the international fashion houses competitive prices, shorter lead times, and a virtual monopoly in embellishments.

This last includes intricate hand embroidery - an absolute rage the world over - and accessories like buttons, zippers, laces, et cetera. For instance, were you aware that "Sadar Bazar", a vast marketplace for garment accessories and base materials in New Delhi, India, is known as the "bull's eye" of the Indian garment industry, and is an important nodal point in the world map of garment manufacturers? Those cool brass buttons on your Levi's or Wranglers just might have originated at Aziz and Sons Button Wallahs, some 7880 miles from where you go shopping for jeans in Los Angeles, CA!

In the embroidered garments segment, India has always been the default source, but the recent devaluation of the rupee against the dollar has further lowered prices, favoring buyers, so the international fashion houses walk away with customized, finely crafted works of fabric art at throwaway prices.The borrowing of traditional Indian concepts does not end here, what with vests made of kantha and mirror-work, appliques, screen prints and sequin-work evening wear being hot buys this coming fashion season.

As for the market for fabrics, the variety available in India can leave the buyer impressed but confused. A key determining factor in the selection of fabrics is the current "fashion movement" in the international market. For instance, the recent "eco-friendly", politically correct "natural" wave saw fabrics like pure cottons, linens and silks from India being lapped up by fashion trendsetters the world over.

Much of the manufacturing activity for this takes place in parts of the world you would never even have heard of, like the small town of Chapa, in the eastern state of Bihar, where fabric production is a family industry. The variety and quality of raw silks churned out here belie the crude production methods and equipment used - tussars, matka silks, phaswas, you name it, they can make it.

Surat, in the state of Gujarat, far to the west, is the source for an amazing array of jaquards, moss crepes and georgette sheers - all fabrics used to create those dazzling silhouettes seen on the ramps of the hottest fashion shows the world over.

Another Indian fabric design that has practically made fashion history is the "madras check" - originally used for the ubiquitous "lungi", a simple lower body wrap worn in southern India, this pattern has now made its way on to bandannas, blouses, bags, home furnishings, and practically anything else you can think of!

Of late, designers like Jean-Paul Gaultier have been increasingly using Indian fabrics, designs and cuts to enhance their western wear fashion collections. The Paris-based designer duo, Didier Lecoanet and Hemant Sagar, have used a lot of Benares Brocade in their Spring/Summer Collection recently unveiled in New Delhi for a select audience. There is a trend in the making here...

Forget Louis Feraud or Paul Smith, ethnic Indian design is in, and not just in India - whether it be a batik cravat, a tie-and-dye T-shirt, or a vegetable dye block-print skirt. So don't blink if you see a Donna Karan creation in a Madras check, or spot Naomi Campbell in a brocade jacket with a Kantha skirt to match... Talk about making a fashion statement!

Tarun Tahiliani, another Indian fashion designer, argues that the country's opening up to the world has actually made Indians more comfortable with their own country and culture. He says he remembers being obsessed with obtaining blue jeans as a teenager living in Goa - and once paying a cash-strapped Western hippie for his ratty denims. Today, with easy access to Western clothes, he says some Indians are pining for things Indian.

HISTORY OF DENIM

Genoese sailors found it difficult to keep their white trousers clean, and the dyed ones faded fast invariably in humid and often hot atmosphere on the high seas. They were in search of a suitable fabric. They occasionally sailed to Nimes, a city in south France, and found a heavily twilled fabric with diagonal wale, described as serge similar to their own fustian. French dyed this fabric with indigo blue, a natural dye. Even though this colour also faded but indigo being a crystalline substance had its peculiarities. The indigo crystals reflect light; hence even faded jeans look bright and not dull. Genoese adopted this fabric for their jean. Later the fabric came to be known as 'Serge-de-Nimes'.

Since the French alternative was better and tougher, the Americans too started buying the fabrics from France and used the same for their waist-overall, discarding the canvas. Given the American tendency for cutting the name short, the complex 'Serge-de-Nimes' quickly became "Denim". It was only in 1960, Americans adopted Jean as a name for their waist-overall made from denim. This is how present day blue denim jeans were born.

Fashion-wise denim has gone through many phases. From its initial indigo blue dye it went through various washes; stone-wash, chemical-wash and now enzyme-wash to give it a pre-faded look. While most denim still remains blue a market for other colours has also grown recently.

Made popular by celebrated stars like Wayne, Gary Cooper and Clarke Gable by wearing them in their many successful films, the verve for Denim Jeans caught on in India in the nineties mainly due to electronic media campaigns. The emergence of international brands in India such as Lee, Wrangler, Levi's, Calvin Klein, Jordache and Pepe added further to the popularity of Denim Jeans. Indian brands, which became popular in Denim Jeans, are Flying Machine, Numero, Blue Lagoon, Unnex, Buffalo, UFO, Avis etc.

Initially a man's garment, jeans became popular for women also after Levi's aired its famous "Travis" television commercial in 1981 followed by extensive media campaigns projecting women jeans as a sex symbol. Jeans have different connotations for different people. To the present generation jean means disco; from casual wear to party wear. As a part of India's fashion revolution, it has to be seen how long the fad for blue jeans is sustained, considering previous decade has seen volatility in the demand of jeans elsewhere in the world.

Denims

DENIM PROFILE

Denims

TYPEWEIGHT (In Oz)SPECIFICATIONSREGULAR/BASIC6.5 TO 14.5 In indigo, width 150 cm. Black in weight 10.5 Oz to 14.5 Oz. RING SLUB/RING STREAKY 11.0, 12.5 & 13.75 In indigo, width 150 cm. CROSS HATCH/CROSS-FIRE 10.0, 12.5 & 13.75 In indigo, width 150 cm. Width of 13.75 Oz is 160 cm. DIRTY12.0In indigo, width 150 cm. STRETCH (2-3% LYCRA) 8.0, 10.0, 11.0 & 12.0 In indigo. Width varies from 132 cm to 150 cm.

JEANS

History of Jeans:

Jeans as they are called today, had their origin n U.S.A.Jeans gets its name from genoa as sailers from genoa wear pants of Denim. The word 'DENIM' comes from a french town called de-nimes where this fabric was first made. In the early sixties, jeans were used mainly by industrial workers, miners, farmers and manual labourers because of both their durability as well as low cost.

Today jeans made out of denim has won the hearts of not only youth but has crossed all boundaries of class, age, sex and nationality. Jeans started to spread outside America during and after the Second World War. Denim then sparked off an enormous demand, which was difficult to fulfill, and became a strong force in the clothing sector.

Today jeans have become the worlds most sought after casual-wear, a "passion in the material world".

Land marks in jeans Evolution

1873-Levistrauss made the first jeans in SanFrancisco,USA.

1890-First 501 Indigo Jeans form Levis.

1904-Establishment of Blue-Bell company(wrangler Brand)

1950-First Zipper Jeans was Introduced.

1954-Hollywood status marlon Brando and James Dean appear in Jeans.

1962-14.5 oz/Square Yards Jeans appears from Burlington.

1974-Prewashed Jeans made.

1986-Chemical washing process developed.

1990-Denim market moves from work wear segment into fashion segment.

Jeans, a symbol of casual lifestyle, has gained lot of popularity, in the last five years, in India. Jeans differ from conventional trouser because of very heavy fabric, specialised accessories, style and finishing(stone washing, chemical washing etc).As a result, a completely new quality standards have been evolved and jeans have remained more popular, in ready-made from. There has been advantage of growing jeans market. Jeans are retailed between Rs.250/- per jeans to Rs.2500/- per jeans. Many times, a customer is not able to comprehend the difference between two different brand of jeans. At the same time, one finds two brands with almost same level quality are being sold at very different brand of jeans. At the same time, one finds two brands with almost same level quality are being sold at very different prices.

JEANS MARKET:

The jeans culture of the USA found its way to India around the late sixties. Imported jeans were much in demand the jean market has expanded substantially in India since the mid 1970's growing of jeans culture with satellite invasion, ever growing strong middle class, jeans a symbol of casual life style has attracted several jean manufacture to join in the market.

The entire jeans market today is segmented into five classes the segmentation of the market and players along with its price are given below:

MARKET SEGMENT PRICE RANGE(Rs.) VARIOUS BRANDSSuper Premium 1100 & aboveLevis,Gap,GuessPremium900-1100Lee,killer,Peppe,Lee cooper,Wrangler Upper650-900Flying Machine,Sunnex,Bare,Pepel Killer,LawmanMiddle450-650Trigger,WInstone,JordacheLower250-450Newport,Ruf & Tuf(Source:Denim Garment and Market Analysis,A report of KG Garments,May 1996) Until 1992 the jean market in India was dominated by unbranded jeans and minor Indian brands.Only later the customers become brand and quality conscious.Today jeans has become an important part of the Indian Youth Wardrobe and its role is ever increasing.

The total size of the premium jeans and casual wear segment in value is approximately Rs 300 crore (at retail price) and is growing at the rate of 20 percent annually. He claims that Pepe's share of this segment to be around 30 per cent. Eventually, over the next year or so, Pepe's portfolio will comprise 40 per cent jeans, 30 per cent casual trousers and 30 per cent shirts and T-shirts.

Today jeans, priced between Rs 895 to Rs 1,295, straddles the semi-premium and premium segments of the domestic jeans wear market.

The upper end of this market is highly competitive with the traditional big guns of the global jeans industry holding sway. The players are Levi's, Lee, Wrangler, Pepe and Killer.

The return of denim is a fashion wave. Notwithstanding a seven to eight per cent growth in the current financial year, the jeans wear market could grow at an estimated 15 to 20 per cent CAGR over the next three to five years.

The total current jeans wear market in India is pegged at around 25 million pairs out of which 1.25 million falls in the premium segment and growing at five per cent, 8.2 million in the standard segment and emerging at 15 per cent, 14 million in the value pack with 10 per cent growth.

But a buoyant market alone won't ensure the success of a new jeans brand as the customer's mind could well be colonised by the big brands.

Most jeans in India offered core denim in the classic American or European mould. This perhaps explains why most of Levi's sales in India come from customers above 30 years. The industry figures suggest that the youth market, aged between 18 to 21 years, account for only 14 per cent of Levi's sales whereas any aspirational jeans brand should look at at least 33 per cent of its revenues coming from this core customer base.

Previously, printing on denim was done through bleaching, which took out the indigo but left the fabric weak. Now a days indigo is burnt out without causing damage to the fabric and ensures durability.

In jeans wear, the innovation possibilities are mainly in washing, finishes and in fabrics. Some manufacturers have tied up with firms in Spain to bring the latest in washing techniques. With their Its investments in excess of Rs 1 crore, which include machines with robotic arms that can print even the minutest fonts in under ten minutes.

RELATED REPORTS:

The study is an annual tracking of Indian consumer preferences, conducted in association with ORG-MARG, indicating consumers' top-of-mind, actual purchases and future purchases in menswear, womenswear, kidswear and accessories.

Using the quota sampling method, the study is based on empirical data collected from 5,601 consumer interviews on structured questionnaires administered in multiple shopping areas across 13 cities, according to a press release.

The survey was conducted in phases. Unaided top-of-mind recall was elicited in order to determine the popularity of brands. Scores were applied to assign relative ranks to brands for different categories studied. Further, consumer purchases made in the last one year were registered. Also, the consumer's imminent and future purchases were registered to compile the final brand's score.

Apart from brand positioning, the IMAGES-ORG MARG report analyses the probability of fashion and lifestyle brands to appear in the consumer's next shopping sequence.

Among menswear, Allen Solly with a total of 2,402 points scored over others in the Rs 2,016-crore branded shirt segment in India. Peter England with 2,082 and Louis Philippe with 1,212 followed.

Among the Rs 675-crore branded trousers market, Allen Solly was the No. 1 brand, followed by Lee and Park Avenue.

Lee with 2,683 points dominates the Rs 691-crore branded jeans segment, followed by Levi's and Killer. Park Avenue leads in the branded suits segment, while Raymond and Givo followed.

Adidas with 956 points has emerged as the most preferred T-shirt brand, followed by Lee and Nike.

VIP with 3,914 points scored over others in the branded undergarment segment, followed by Jockey and Rupa. Womenswear continues to be at an embryonic stage, according to the study. Benetton with 218 points emerged as the top scorer in the branded women's western wear segment, followed by Lee and Allen Solly.

In the Rs 83.8-crore branded jeans market, Lee scored the highest points, with Levis' and Pepe at second and third rank. Lovable emerged as the No 1 brand in the Rs 348 crore branded women's undergarment category, followed by Jockey and Feelings.

In the Rs 545-crore branded kidswear segment, Weekender has been ranked as the No. 1 brand, followed by Benetton and Gini & Jony.

ARVIND MILLS IN INDIA:

In India, they command a market share of approximately 72% - 5 times that of the next largest player. Their denim is used to make India's leading jeans brands -

Flying Machine, Killer, Levi's, Numero Uno, Pepe, Texas Jeans, UFO and Wrangler. "Made from original Arvind denim" is used by all the leading local jeans manufacturers as an indicator of high quality and authenticity.

They also export denim to over sixty-six countries worldwide. The US forms 31% of their export market, while the EC and Hong Kong constitute 20% and 24% respectively.

Denim exports constitute approximately 50% of their turnover, and Arvind Denim - which is sold as a brand and not a commodity - is used to make some of the most desired jeans brands around the world - Brittania, C & A, Federated, Jordache, Lee, Lee Cooper, Limited, No Excuses, Pepe, Tillis Pavely and Wrangler. They make over 150 varieties of speciality denim - stretch, coloured, faded, streaked, mercerized, striped, checked, ring, brushed, soft, speedwash, silver streak and overdyed. From small pieces to large 300 metre rolls, from 4.0 oz to 16.0 oz, from good old classic to ever-popular indigo blue 14 1/2 oz. open end - they can offer you denim in just about any weight, weave and wash.

This is what they offer:

Tencel Denim: Woven century luxury cellulosic fibre made from specially grown woods and transformed in non-chemical process which give feel of silk and comfort of cotton.

Stretch Denim: Woven with lycra from Dupont, stretch is the established fashion fabric for women and recently in menswear niche segments too who believes in exact fit and comfort.

Chinos: Two ply chino denims in indigo dyed shade have an unique soft hand feel, Fabric cover and a luxurious appeal.

Polyester Blends: Cotton rich polyester denims with superior hand feel, luster and colour contrast for fashion market.

Tinted Denim: The Cotton denims are enriched with different colour cast by tinting or overdyeing technology.

Rain Denim: Novelty loom denim with a fine weave & premium 'Run' effect for an unique appearance.

Super Dark denim: Stay blue and stay black indigo products with different tonal effects for younger generation.

Crosshatch Denim: high fashion denim with enhanced fabric texture.

Vintage Jeanswear:*premium ring denims in 7 ozs to 14.75 ozs/sq. yd offers excellent yarn characters, softness and fabric strength.

*Vintage Dusk- Grey cast effect or give unique, second hand look.

LEE COOPER:

Denim has of late become an attitude statement. Just when people thought it had been replaced by cotton and khakis, the worlds most popular fabric has come back in a big way in several variants and styles. It is no longer just the basic five pocket style. From the coolest of teenybopper parties to the classiest of corporate meetings, chances are atleast half the crowd will be attired in denims -- raw or treated!

The comeback of denim shows that people still like the fabric, but they want it in different forms. The fits have also undergone a sea change, explains Mr Gurbir Singh, Chief Operating Officer, Indus Clothing Ltd, the exclusive licensee of Lee Cooper in India.

Denim has undergone a lot of changes over the past two decades. Till the 80s, the only two choices in denim jeans were unwashed or rinsed, with the additional dark appearance so characteristic of denim. The concept of stone washing (a kind of finishing treatment), brought about a dramatic change and fads like snow wash, ice wash, granite wash, along with other innovations in varied colours soon followed. But denim has come a full circle ... from the raw to distressed, to tattered, to shiny, to rugged, to silky, to steel and from 100 per cent cotton to different blends.

What are the latest trends for the season? With denim, the used look is presently very much in vogue across the globe. And the raw look is in. A good fit, which sits low on the waist and slims through the hip and waist with a slight flare below the knee is the ultimate fit.

What are the latest innovations in denim? A lot of experimentation is being done with the fabric itself like two tones, techno denims, tencel blends etc. The use of new fabrics like ring denim, crosshatch and sandblast are now in vogue. Then there are innovations in post stitching treatment like sand blasting, bleaching, printing etc.

The target segment of Lee Cooper being youngsters in the age group of 18-22, the company has introduced a unique service called Sneak Peek. Lee Cooper has entered into a strategic tie-up with Warner Bros. Pictures, as part of which all its customers have the benefit of watching the latest Hollywood blockbusters produced by Warner Bros. on purchase of Lee Cooper products worth a certain amount.

Lee Cooper predicts that apart from the basic blues, blacks and the dark denims, Lycra with a lot of contrast stitching details and tops in bright checks will be the highlight of the forthcoming fashion season.