The textiles and apparel industry in India has a past filled with fine craftsmanship and worldwide allure. Cotton, silk, and denim from India are profoundly well known abroad, and with the upsurge in Indian design ability, Indian apparel also has found accomplishment across the fashion industries around the world. The direct linkage of India’s textile industry to horticulture (for raw materials like cotton) and the early culture and customs of the country as far as textiles make the Indian textiles industry stand out in contrast with the industries of different nations.
India is the world’s second-biggest exporter of textiles and apparel with an enormous raw material and assembling the base. India’s textile and clothing industry is a notable supporter of the economy, both as far as its domestic part and exports are concerned. It contributes around 7% to industry yield, 2% to the GDP and 15% to the nation’s complete export revenue. This sector is one of the biggest occupation makers in the nation, utilizing around 45 million individuals and 60 million individuals in united enterprises. India’s textile Industry is growing at a rapid pace. Jumping further, this report explains the current situation of the textiles and apparel industry in India and features the ways of taking advantage of India’s growth potential in this area.
Textile and Apparel Sector Snapshots
- India is the largest producer of cotton.
- 2nd largest producer of polyester and silk.
- 3rd largest producer of viscose.
- 4th largest producer of acrylic and nylon.
- 5th largest exporter of textiles and apparel.
- 8 centres of excellence set up to promote technical textiles.
- Contributes to 7% of the country’s manufacturing production.
- Contributes to 2.3% of the GDP.
- Contributes to 13% of the country’s export revenues.
Export Highlights of Apparel and Garment Industry
- The export of apparel and clothing accessories weaved or stitched during April–July 2020 was US$ 1.32 billion and for July 2020, it was US$ 586.49 million.
- The export articles of apparel and clothing accessories not weaved or stitched during April–July 2020 was US$ 1.27 billion and for July 2020, it was US$ 504.98 million.
- Readymade garments of all textiles exported from India remained at US$ 12.27 billion from April 2020 to March 2021 and for the long stretch of March 2021, it was US$ 1.42 billion.
- In April 2021, the export of Readymade garments of clothing remained at US$ 1.30 billion.
- Since India is the biggest cotton producer across the world. India’s general cotton creation production is360 lakh bales in FY21.
- Complete worth of cotton yarn, fabrics and made-ups export from the nation remained at US$ 1.10 billion in March 2021. During April 2020-March 2021 the export remained at US$ 9.81billion.
- In April 2021, the export of cotton yarn, textures and made-ups remained at US$ 1.06 billion.
- Primary business markets for India’s textiles industry and apparel export are the USA, European Union, Portions of Asia and Center East.
- In the upcoming times, India’s apparel export is relied upon to grow significantly. The overall export of textiles and apparel are relied upon to reach US$ 82 billion by 2021 at a CAGR (Compound Annual Growth rate) of 12.06% from FY18.
Worldwide Rundown
The current worldwide apparel market size is near $ 1.9 Trn and is relied upon to increase to more than $ 2.6 Trn. Globally, the demand for apparel is assessed to grow at a Compound Annual Growth Rate (CAGR) of five per cent. Among the world’s main five business markets for apparel, India and China are expected to develop at a consistent CAGR of 12% and 10% individually, when contrasted with the worldwide total of five per cent throughout the following few years. China is broadly expected to turn into the biggest apparel consumer on the planet by 2025 with a market size worth $ 450 Bn, while India will leave Japan behind to take the fourth position on this rundown with expected market size of more than $ 160 Bn.
Domestic Rundown
India’s domestic textile industry and apparel market is worth more than $ 100 Bn starting at 2018-19 and is relied upon to increase at a CAGR of 12% to reach a size of $ 223 Bn by the end of 2021. Apparel demand in India presently remains at $ 78 Bn, overtaken by the domestic with a share near 74% of India’s overall textile and apparel market. Technical textiles, one of the fastest-growing sub-sections at a CAGR of 12% is likewise seeing a significant expansion in its market size in India.
Fashion Brands
Brands like Benetton, Zodiac, Z3, Zara, Vero Moda, Calvin Klein, Diesel and Tommy Hilfiger experienced great sales growth in the nation, while names like Zara, Armani, Forever21 or Uniqlo appeal to the Indian crowds, drawing in higher per square foot deals when contrasted with the departmental or hypermarket stores.
Then again, Indian organizations like the Arvind group, Madura Fashion and Lifestyle, Raymond Apparel, Trent Retail, Reliance Retail and Future Group have started with their fashion labels.
Some of the top Fashion brands that benefitted from franchising are:
- Zara
Zara is a Spanish luxury clothing brand. The brand vows to look after design development, quality control, logistics, deals through stores, and internet-based shopping. Zara stores are by and large located at famous, higher business locations. Zara is one of the many successful businesses of today; a well-known brand that gathers a total number of 850++ stores worldwide and that is solely by franchising. Zaras’ decision of expanding the business by franchising made it one of the top apparel and clothing brands in the world
- Biba
Biba is an ethnic wear Indian brand that is outstandingly popular among Indian customers and has a gigantic rundown of customers who are buyers of Biba. The organization is a perceived brand taking into account its stylish and classy women’s wear clothing. It has overall proximity and woman are truly comfortable with this brand. Biba offers a combination of things, for instance, salwar, sarees, Kurtis, lehenga sets, palazzo, dupatta, Anarkali, etc. Biba franchises today has expanded into many locations with around 275 stores across the country and all by franchising and reaching more and more customers.
- Numero Uno
Numero Uno is known for its renowned denim items. Numero Uno is predominantly well known among the youth population with their denim stuff and cool tees. Numero Uno began by simply manufacturing jeans for men and gradually moved into jeans for ladies, at last planning and assembling complete wardrobes for both men and women. The organization has been presenting in vogue and inventive themes each season to take into account changing preferences and ways of life. The Gurugram-based denim brand was started in 1987 by Narinder Singh Dhingra. Today, it has over 260 stand-alone stores in India and all via franchising the brand. Franchising helped the brand in reaching out to new locations and attract more customers.
- Rupa Garments
Rupa is the best-woven innerwear brand in the country. It produces around 7 lakh bits of finished products consistently. The company manufactures almost the entire range of knitted garments from innerwear to casual wear. Rupa garments of clothing have advanced to turn into the leading brand in the innerwear segment in India and the main player in worldwide business sectors with broad impressions and a huge number of fulfilled clients by expanding itself via franchising. At present, it has a pan-India presence through a distribution network of 125,000 retailers, more than 1,200 wholesale dealers and over 300 sales and marketing professionals.
- Jockey India
Jockey is a famous innerwear brand in the country, be it for women or men. As it is a trustworthy brand, its product sells quite easily. Established in the year 1876, Jockey is considered to be one of the go-to labels for undergarments across the globe, especially in India. In today’s date, jockey store is in every part of the country and that is possible through franchising, they chose franchising as their expanding strategy to increase the reach of the brand by opening stores in new locations.
Not only these but there are plenty of big fashion brands doing well in their path and still expanding their business via franchising.
Status of Online Fashion Industry
Setting new benchmarks in the online business mode during the pandemic, the web-based Fashion industry in India kept on exhibiting an overall 51% growth in FY21 and 66% growth on different brands. The brand sites have announced a 66% order volume increase and 77% GMV growth in FY-2021 when contrasted with the past monetary year. The strong order volume increase upheld with higher GMV increase has prompted a 6% expansion in avg order value. When contrasted with sites, marketplaces have announced a 45% order volume increase and 33% GMV increase, with an 8% decrease in the avg order value for FY-2021.
For all the business expansion seekers who are waiting for that one opening, the apparel and textile industry is the one for you. India’s textile industry has been giving promising revenues and is a great sector to expand in the coming times.
