Indian menswear brands ready for global competition

The menswear market in India is the fastest growing segment. According to market analysis company Datamonitor it is expected to grow by 40.6 percent to $13.8 billion (over Rs 76,000 crores) in 2012. The ‘India Menswear Market Analysis

2010-2014’ by Venn Research found that total revenue from menswear was $11.8 billion (over Rs 65,000 crores) in 2009, representing a compound annual growth rate of 8.6 percent from 2005 to 2009. No wonder that many global men’s brands are going a step ahead in offering personalised merchandise to woo the customers. And while their efforts are on, our very own Indian brands are confident of holding the fort with a belief that the average Indian men still don't prefer western trends and cuts.

Meanwhile competition among the domestic and international players is hotting- up. And this is leading to a growth in this segment. Traditional Indian players such as Madura Garments, Arvind, Zodiac Clothing and Raymond are witnessing tough fight from their international counterparts like Cartier, Giorgio Armani, Kenzo, Prada, Beverly Hills Polo Club, Fruit of the Loom, Izod, U.S. Polo, Mustang and Timberland entered the Indian market. But most of these international labels cater to luxury or premium segment, leaving the large upper-mid and mid-market for domestic labels.

Luxury labels woo the globe-trotting customers, who are aware of these brands and understand the western fashion trends. But when it comes to domestic markets, they lack the understanding of local tastes. And this is where domestic brands gain an advantage since they have been catering to the menswear segment in India from the time men started wearing ready-made garments.

But the entry of global brands has definitely changed the way Indian menswear retail functioned. It has become more organised, and customer friendly and the brands have to keep innovating to improve the consumer experience with their brands. Many menswear brands including the international luxury brands have shifted their focus to Tier II, III towns, where demand for brands is growing. As cited by a research by RNCOS, a leading market research company, the Indian men’s apparel industry is booming and Indian rural market will play a pivotal role to achieve growth rate, as the perception of rural young generation about clothing is changing. The report asserts that rural India, which was till now completely relying upon tailored garments, has created a strong demand for ready-to-wear garments creating huge growth opportunities.

So the menswear segment, largest in the domestic apparel market is estimated to be about Rs 72,000 crores, according to the Technopak research and is growing at a CAGR of 9 percent per annum. And with this growth rate, it is estimated to reach a size of Rs 1, 76, 000 crores by 2020 opening up galore of opportunities for domestic as well as international brands.