Overview of Men’s apparel Category in India

Overview of Men’s apparel Category in India

The domestic Indian apparel market can be divided into three segments, Men’s apparel; Women’s apparel; and Kids' apparel (including uniforms).

Men’s apparel is the largest segment of the domestic Indian apparel market, with a 41.5% market share. The level of penetration of organized manufacturers and brands is the most in this segment of the market. The size of the men's apparel segment is expected to grow at a rate of 6.8% from 2010 to 2015, and will continue to enjoy the largest share in the domestic apparel market.

At the wholesale level,  Research expects, the domestic apparel market to grow from Rs. 1,250 billion in 2009 to Rs. 1,800 billion in 2015, a CAGR of 7.6%. Men’s apparel, the largest segment, is expected to grow at a CAGR of 6.8%, from Rs. 519 billion in 2010 to Rs. 720 billion in 2015.

At the retail level, the growth rates are expected to be much higher at 14% – 15% per annum. According to  Research, retail purchase of apparel is expected to double from Rs. 2,000 billion in 2010 to approximately Rs. 4,000 billion by 2015, a CAGR of approximately 15%. Retail spending on women’s wear is expected to grow at higher rate.

Menswear

According to  Research, men’s apparel is the largest segment in the Indian apparel market.  Research estimates the market size at Rs. 519 billion in 2010 and it is expected to grow at a CAGR of 6.8% to Rs. 720 billion in 2015. The level of penetration of organized manufacturers and brands is the most in this segment of the domestic apparel market. Shirts, trousers and suits contribute almost 71.2% to the domestic apparel market and these segments are expected to maintain their market share in the future. The T-shirts market is expected to experience the highest growth over the next 5 years. Other men’s garments include casual and leather jackets, nightwear, woolens and dhotis/lungis. Brand loyalty factor is high amongst the menswear segment, especially in the premium and super premium segment.

Men’s shirts

 Research valued the market in men’s shirts at Rs. 191 billion in 2010. Men’s shirts, as a single product category, commands the largest market share (36.8%) in the menswear segment with the greatest number of manufacturers and brands competing in the market. This market is expected to grow at a CAGR of 6.4% over the next five years, and is projected to be worth Rs. 261 billion in 2015. The growth in this product category at the retail level is expected to be at a CAGR of 13% from Rs. 420 billion in 2010 to Rs. 770 billion in 2015. Growth can be attributed to the increased penetration of ready-to-wear shirts in the market place, especially in the rural markets, rising income levels and the easy availability of ready-to-wear shirts in various colors, sizes and patterns at malls and local garment retailers.

The market for men’s shirts can be divided into various categories by price point. Rising income levels, increasing eagerness to buy and the popularization of formal wear at the workplace is driving growth in the super premium, premium and medium shirts category. The highest growth is expected in the super premium category, followed by the premium category. This can also be attributed to the introduction of more domestic and international brands in these categories.

Men’s Trousers

The trousers category is the second largest category in men’s apparel, accounting for 25.7% of the menswear apparel market. The trousers market is expected to grow at a CAGR of 7.1% from Rs. 133 billion in 2010 to Rs. 188 billion in 2015. At present, retail penetration in the men’s trousers category is not as high as for men’s shirts. However, this is changing, with a growing preference for ready-to-wear trousers on the demand side and the availability of ready-to-wear trousers in various brands, sizes, colors, designs and fabrics on supply side. Growth in this product category at the retail level is expected to be at a CAGR of 14% from Rs. 319 billion in 2010 to Rs. 633 billion in 2015.

The low priced trouser segment (below Rs. 300) contributed 50% of total trouser sales in 2009. The share of low priced trousers is expected to fall to 45% in 2014 due to an increase in per capita disposable income, enabling buyers to graduate to higher price point categories. The greatest growth has been observed in the premium and super premium categories during the period from 2006 to 2009. These two categories collectively accounted for a 23.9% share in 2009. This share is expected to grow to 28% in 2014. The products in this segment mainly sell through organized retail especially exclusive brand outlets (Raymonds, Reid & Taylor, Cottons) and multi brand outlets (Shoppers Stop, Pantaloons, Lifestyle). Growth in these categories will primarily be driven by the easy availability of luxury brands, rising levels of brand consciousness and formal wear culture at the workplace.

Men’s Formal Suits

The current market size of the formal suits, jackets and blazers segment is estimated at Rs. 45 billion. This segment is expected to grow at a CAGR of 7% over the next five years, with a projected worth of Rs. 63 billion in 2015. This growth can be attributed to the rapid shift from tailored to ready-to-wear suits, rising disposable income, the growing service sector and the influence of multinational corporations. Growth in this product category at the retail level is expected to be at a CAGR of 14% from Rs. 319 billion in 2010 to Rs. 633 billion in 2015.

Lowest price suits contributed 82% to total suit sales in 2009 in value terms. This segment is expected to shrink over the years as more people graduate to the relatively costlier economy and medium segments. The premium segment is expected to see a growth in its share from 4.8% in 2009 to 6% in 2014. The increase in this category can be attributed to the increasing preference of executives to wear formal attire at office meetings. The premium and super premium category is expected to grow from a 10.5% market share in 2009 to 11.2% in 2014. This would primarily be driven by an increasing number of foreign brands entering into India, rising income levels, increases in the size of the working population and rising brand consciousness amongst the Indian youth. According to  Research estimates, Reid & Taylor holds a market share of 7.5% in the premium suiting segment.

Worsted Fabrics

Worsted fabric is a blended form of fabric in which one of the components is wool. The wool can be blended with both, man-made or cotton fiber to form a worsted fabric.

According to  Research estimates based on industry interactions, 45 million meters of worsted fabric were produced in 2009. There have been minimal additions over the past five years. The industry is expected to produce 52 million meters of worsted fabric in 2014. This projected growth can be attributed to the rising income levels, reductions in the price gap with competing fabrics and increasing preference for wool blended fabric among Indian consumers due to its grace and style. The average price for worsted fabric is approximately Rs.450 per meter and it operates primarily in the premium, super premium and luxury segment. The industry has a total installed capacity of 0.604 million spindles as of 2009. Major players in the worsted fabric business are Raymond, Reid and Taylor, Digjam, Dinesh, OCM and Vimal. Though Raymond is the market leader in the worsted fabric business, Reid and Taylor has managed to increase its market share over the last few years.

Read Complete report Here