labels: fashion, industry - general, marketing - general
Fashionable Businessnews
06 May 2005

The Indian fashion garments industry seems headed nowhere. Anushree A Deshpande discovers why.

The Lakme-sponsored India Fashion Week (IFW), held in April this year heralded good looks, glamour and the latest fashion trends to come in the fast-changing world of the Rs20,000-crore Indian apparel industry. As the foremost event of the Indian fashion industry, the business prospects and commercial gains proffered by such an event need to be considered.

The first IFW was organised by the Fashion Design Council of India (FDCI) in August 2000. Ever since, the event not only showcases the work of Indian designers but also promotes the fashion industry at large, within the country and overseas.

The Indian fashion industry faces brighter prospects ever since the quota regime ended on January 1, 2005. A quota-free era heralds promise for growth in the textile business for countries such as India and its larger rival China. Both the countries are among the largest exporters of textile garments and fabrics.

The quota regime restricted free export of materials and garments from the developing countries, giving an edge to developed ones, such as the US. The regime resulted in unfair trade practices, such as hoarding of licenses for quotas and their eventual sale in the black market, and the shipping of low quality goods to meet contract demands. There was little incentive for the manufacturers to upgrade and improve either their products or manufacturing abilities.

The WTO Agreement on Textiles and Clothing (ATC) ended the quota regime on January 1, 2005. The ATC is intended to reintegrate the textile sector into the mainstream of multilateral rules, as applicable to other sectors. The end of the quota regime signifies the potential for an exponential growth for the fashion industries of all the countries that had faced quota restrictions earlier. ()

The Indian fashion industry is at an advantage over other countries as far as its growth prospects are concerned. India is the third-largest cotton producing country in the world and also possesses an abundance of talented designers. Yet, the potential of the country's fashion industry may remain just that — potential!

A study conducted by the management consultants KPMG expects the Indian fashion industry to grow from its current net worth of Rs180 crore to Rs1,000 crore in the next five to ten years. Currently, the worldwide designer wear market is estimated at $35 billion, with a 9 per cent growth rate, with the Indian fashion industry making up barely 0.1 per cent of the international industry's net worth. ().

According to estimates, the total apparel market in India is estimated at around Rs20,000 crore. The branded apparel market's size is about a fourth of this or Rs5,000 crore. Designer wear, in turn, comprises just about 0.2 per cent of the branded apparel market.

The highest sales turnover within the designer wear segment currently is Rs25 crore, with other established names having smaller turnovers of Rs10-15 crore. Considering the potential of the Indian fashion industry for growth, the figures are not very encouraging.

While well-known designers regularly hold shows to promote their new collections, the IFW provides a platform for budding designers to display their talent alongside the titans of the fashion industry. The India Fashion Week also promotes the business interests of the fashion industry as it attracts buyers from fashion houses across the world. The IFW is now changing the face of the Indian fashion industry, with its yearly presentation.

" There is a marked transition in the style of clothes being presented," says Parthip Thyagarajan, director, Weddingsutra.com who has been observing the changing profile of fashion designs presented at the IFW, since its inception. He explains, "Compared to about four years back, the emphasis now is on Indianness. You'll see a lot of improvement in the cut and pattern of clothes, which have a fine balance of the Western and the Indian. The look is subtly Indian. It's 'in' everywhere and has brought in offers from international business houses. Buyers from the Middle East, Israel and big names from both Europe and US were present at the IFW. Business for the Indian fashion industry is looking up."

Though the IFW attracted national and international buyers and provided increased business opportunities, growth in the fashion sector in this country may remain restricted for various reasons.

Fashion in India has come to connote big established names, having signature styles and patterns along with exorbitantly expensive products, which remain out of reach for most people. The clothes exhibited tend to be creative, but border on the bizarre and are rarely suitable for donning off the ramp.

Says Rupa Shukla a boutique owner, "As far as the ramp is concerned, what the designers present is hardly suitable to be worn ordinarily. You'll notice there's a difference even between what is there on the ramp and what the Page Three crowd is wearing. What is on the ramp is simply bizarre!" Of the fashions currently 'in' she says, "The trends haven't changed much. It's just the old ones coming back. We've had short kurtas, long kurtas, flowing skirts, etc. coming back into fashion."

Of late, designer wear is being sold through store chains such as Shopper's Stop, Pantaloons, Westside, etc. Companies such as Raymond and TCNS have also launched their exclusive stores for designer wear such as Be: and W. The launch of prêt (ready-to-wear) spelt the availability of designer wear at affordable prices. Yet, prêt does not offer uniqueness but has merely spawned the availability of existing fashions tagged with the label of big designers.

Another reason for the fashion industry's stunted growth is the restricted exposure given to budding designers. Although the IFW does showcase a few young designers, there is a large part of the novice designer community, possibly more talented, which remains obscure. The obscurity stems from the fact that most of this young talent is employed by the bigger names to work in their studios, thus stamping their work with the label of the big designers. Since staging individual shows is not an option for most of the young talent, due to financial constraints, the novice creator's name fails to come to the forefront.

Alok Shukla, a management consultant muses that the Indian fashion industry will soar if there is a change in the way new comers are treated. "What we need is for them to be given more encouragement such that their work gets due recognition. I think we should have a panel of people who select designers for showcasing based on their work and not their name or who they've worked for earlier. Maybe the process could be such that the names of the designers are not revealed — selection would then be purely on quality. Also, instead of having designers on the panel of judges, we should have faculty from the fashion schools. It limits the possibility of the big-wigs ignoring the young talent for being more talented than them," he says.

He opines that the media-hype surrounding the big designers and blatant commercialism has hindered business in the Indian fashion industry. No thought is given to viability of the products. "Essentially its only the big names that are being talked of. What they present is not quite daily-wear. Yet, to not appreciate their work would mean being booed by the crowd. The whole focus of the industry is on commercialism. The talk is only about how much is sold and for what price."

The atmosphere within the fashion community too spells trouble. The media has routinely reported skirmishes within fashion circles over the years. While the clash between titans to get the spotlight on themselves is rather implicit, incidents of Mumbai designers refusing to participate in the event held in Delhi and vice-versa have made for a lot of tabloid gossip.

Given such limitations, it remains to be seen how the potential of the Indian fashion industry will be exploited in a manner that fosters maximum commercial gain, while nurturing talent and creativity, as they deserve.



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