The garment industry is very competitive, and countries are being able to export only if they are competitive, writes Saon Ray.
Browsing: Technopak
Among the major cotton producing countries, India holds the largest area under cotton cultivation, which covers around 11-13 million hectares of agricultural land constituting about 40 per cent of world’s total area under cotton cultivation, says Amit Gugnani of Technopak.
The Indian textile and apparel industry was estimated to be worth Rs 6,25,930 crore in 2015 and is projected to grow at a CAGR of 9 per cent to reach Rs 9,35,123 crore, by 2020. Of the total market size domestic consumption accounts for approximately 60 per cent and exports accounts for the rest approximately 40 per cent. The domestic market is expected to show higher CAGR of 10 per cent in comparison to exports, which is expected to grow at CAGR of 6 per cent over next five years.
Woes for the man-made fibre (MMF) industry have been piling up, with the proverbial last straw being the dumping of cheap fabrics in the last one year amounting to $850 million by countries including three major Asian nations ´ China, Taiwan and Korea.
Corporatised retail is making inroads in the apparel sector in India. From just eight per cent in 2013, corporatised retail-that is retail businesses-owned and managed by a limited company or a partnership firm-ùis set to shoot up to 24 per cent by 2023, according to industry estimates.
Not too long ago, Indian apparel makers were reluctant to enter the womans western-wear segment, given that ethnic wear was seen as a predominant category. However, with sales of ethnic wear, petering out considerably, players are reworking their marketing strategies with a slew of party and occasion-based western wear.
Indian apparel retail landscape is rapidly evolving from the traditional brick-and-mortar model to multi-channel retailing that includes e-tailing, direct selling and home shopping. Technopak Advisors estimates to be about $41 billion in 2013.