Indian Menswear on high growth trajectory

The menswear market in India is the fastest growing apparel segment. According to Datamonitor it is expected to grow by 40.6 per cent to $13.8 billion in 2012. The India Menswear Market Analysis 2010-2014 by Venn Research found that total

revenue from menswear was $11.8 billion in 2009, representing a compound annual growth rate of 8.6 per cent from 2005 to 2009. Sunil O Khandelwal, Group Chief Financial Officer-Alok Industries gives the perspective, “Menswear segment is the largest segment in domestic apparel market. According to the Technopak, menswear market size is about Rs 72,000 crores and is growing at a CAGR of 9 per cent 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.”

Usha Periasamy, VP, Operations and Brand Head, Royal Classic Group makers of brand Classic Polo feels menswear segment is yet to peak and will grow bigger with a lot of changes happening within the existing market. “In total the industry will grow, merchandise will improve in terms of creativity and technicality like what we come across in developed markets. Menswear will boom,” she prophesies.
Highlighting the reasons behind the growth of menswear category, Ajay Kabra, Director, Ajay Synthetics says, “The current market size of the formal suits, jackets and blazers segment is estimated at Rs 45 billion and it’s expected to grow rapidly over the next five years. 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 MNCs. Growth in this product category at the retail level is expected to be 14 per cent from Rs 319 billion in 2010 to Rs 633 billion in 2015.”

Commenting on the growth prospects, Abhay Gupta, Executive Director, Blues Clothing Company which retails high end brands like Corneliani, Versace, Versace Collection, Cadini, Damat, says, “The menswear market has grown at a fast rate. The reason is the evolution of the apparel market in metros and even in the rural areas and increasing brand awareness among the consumers in terms of quality and up-gradation of service standards.” Perhaps that is why many menswear brands including the top international luxury brands have shifted their focus to Tier II, III cities where consumer are showing increasing demand for brands.

Adds Amitabh Suri, Senior-VP, Indian Terrain Fashions, “While domestic brands are strong on their own, international brands are raising the bar with higher prices. They are creating a new segment called the super-premium and giving more choices to the consumer. The fight is still going to be between the domestic brands and international brands that come in with the same pricing.”

As cited by a RNCOS, a leading market research company, the Indian mens’ apparel industry is booming and the rural markets will play a pivotal in this growth story. This is because the perception of rural youth towards clothes is changing. The report asserts that rural India, which was till now completely relying on tailored garments, has created a strong demand for ready-to-wear garments brands creating huge growth opportunities. Rachna Aggarwal, CEO, Indus-League Clothing feels the menswear market has matured and become truly international. What’s more almost all men have shifted to buying ready to wear.

As to which category is growing the most, different players have a different take. For some, it is formals whereas for others, it is the casual wear category. Casual bottom-wear and casual shirts are definitely showing growth. But according to Gupta, all categories like formal, casual, ethnic and accessories like shoes, belts, bags, socks are showing a very high growth rate. Corporate world has incorporated casual wear along with formals, casuals are in demand especially in the rural belt. And ethnic wear too has come up in a big way with Bollywood and TV serials creating an impact.
According to Jay Gupta, MD, The Loot, “The future of the menswear market is bright because it is easier to sell men’s clothes in India compared to women’s or kids’. Even in terms of size, men are more standardized, so market looks bright for menswear.