Winter Wear: Business warms up this season

With the chill setting in early this year and temperatures recording new lows, the winter wear business in India has been very upbeat. This, after going through a rough patch last winter when because of the after affects of the economic

slowdown business was slow. However, this year there is a feeling of optimism among winter wear makers, “People have been complaining that winters are shrinking but we managed 40 per cent growth compared to last year. In fact, we don’t have any stocks at the moment,” says Rahul Sikka, Director, Dixcy Scott makers of Dixcy Scott brand of thermals and innerwear. Sikka seems to be summing up the general mood as most manufacturers say they are either sold out or have very little stocks left of winter wear merchandise with them.

Even though the season is yet to end winter wear makers say they are expecting record sales. As Yogesh Tiwari, GM, Sales and Marketing, Mohan Clothing Company makers of Blackberrys brand of suits says, “The season is going to be spectacular. I expect at least 50 per cent growth.” And no wonder Amit Pruthi, Director De-Attire, makers of sweaters is a happy man as business has been very good so far. “If last year a customer had ordered one lakh, this year he has already taken away 1.60 lakh.” Demand has been picking up and it’s being reflected in the prevailing mood among winter wear makers. “I made around 50,000 sweat shirts but have only 5,000 in stock. Every brand in the region is in this position. Shirts, cardigans, everything is having a good season. Every brand has made it. I made around 10,000 pieces and have only 200 in stock,” says Sanjeev Jakhar, Unit Head, M &W.

Winter wear has always been a big ticket sales season. Even those who have a strong range of summer products in their portfolio say sales are definitely skewed towards this season. Abhay Gupta of Blues Clothing Company points out “Four months of peak winter sale equals eight months of summer or general sales. This is also due to concentration of winter, festivals, weddings, party etc during these few months.” He should know as the retailer of premium brands like Corneliani, Versace, Versace Collection, Cadini, Damat, Gupta has seen it all up close.

There are no clear studies to estimate the size of the winter wear market in India according to Technopak’s ‘Indian Textile & Apparel Compendium 2010’ the men’s winter wear market was worth Rs 5,110 crores in 2009 and it will grow at 8 to 10 per cent CAGR from 2009-20. Similarly the women’s winter wear market was estimated at around Rs 1,300 crores in 2009 with a CAGR of around 10 per cent.

In India the winter wear market is clearly segmented between branded and unbranded players. The ratio is 70:30 with 70 per cent players being from the unbranded sector. The established domestic brands are trying to capture market share by innovating and introducing new lines every season. Innovative pricing and discount sales are helping them increase foot falls to their EBOs. Then there are the bespoke suit makers who have over the years come into their own. From the neighborhood tailor to well known designers, everyone is trying to woo the customer with customized suits.

As for the customer they are spoilt for choices as top brands from across the world are making a bee line for Indian shores and Indian brands are making products in line with the latest trends. Surely winter wear is big business now.

Images: Blackberrys