A Note on the Branded Apparel Industry in India

It has played an important role in generating foreign exchange reserves and creating employment opportunities. The concept of readymade garments is relatively new for the Indians. Traditionally, Indians preferred dresses stitched by local tailors, who had tailoring units in townships or cities and catered exclusively to local demand. The growing fashion consciousness during the 1980s and the convenience offered by ready-to-wear garments were largely responsible for the development of the branded apparel industry in India. Other factors which contributed to its growth were: greater purchasing power in the hands of the youth, access to fashion trends outside the country, and the superior quality of fabrics.

In 2001-02, the domestic apparel market was estimated at Rs 431 billion, of which the readymade garments business was estimated at Rs. 298.5 billion. The branded apparel market accounted for Rs.90 billion of this Rs.298.5 billion market

In other words, a Rs.208.5 billion market still remains to be tapped. The men's clothing segment accounts for the largest share (59%) of the branded apparel market. The major players in the branded apparel market are Madura Garments (part of Indian Rayon), Raymonds, Bombay Dyeing, Arvind Mills, Pantaloons, Zodiac and Acme Clothing...