Apparel Online India Magazine March 1st Issue 2019 | Page 43

INDIA’S PREMIER SOURCING SHOW
REVIEW OF THE INDIAN DENIM MARKET –
ITS CHALLENGES AND KEY OPPORTUNITIES
I
ndia is the fifth-largest destination in the global retail space,
making the Indian apparel industry the second-largest
contributor in the retail industry. Denim is the single most leading
segment in the fashion industry, suggests a recent industry report.
PARADIGM SHIFT
In mid-90s, the Indian apparel industry was getting organized.
There was a radical shift in fashion, where Indians experimented
with their choices. Sooner, denims became the garment of choice
for urban Indians. With a huge growth opportunities, the Indian
denim fashion industry is now at an exciting place. There is a
strong production base that has been evolved through the export
base of garment manufacturers. The design sensibility of the
Indian brands is at par with the international brands, along with
the ability to produce well-designed denims at affordable prices.
Moving ahead, the domestic brands are exploring the opportunities
to position themselves in the middle of the consumption pyramid
and span across the metros, Tier-1, 2 and 3 cities to gain scale,
while premium brand continue to struggle with this.
Organized retailing in India has witnessed immense growth in the
past decade owing to growing consumer aspirations, favourable
demographics and brand consciousness. Simultaneously, the
fashion category has also undergone profound transformation
over the years in terms of type and positioning of brands, formats,
products and emergence of new players. With an increased
purchasing capacity and fashion trend awareness, Urban India has
been providing a huge market to denim players.
NEW AGE DENIM
The influx of decorated denim in the past two seasons is now
making its way from jeans to jackets. Internationally, denim
customization has taken hold on cuff, collar, back pockets and
buttonhole. The trend is unique and increasingly getting popular
among social media influencers. For a customer, it’s about
creativity and personalization, while for a brand, it’s about giving
the customer a unique and one-of-its-kind experience.
Pepe Jeans was the first to introduce the denim customization
service in India in October 2015. Pepe Jeans Custom Studio service
enables customers to step into the design seat and customize their
denim in few easy steps. In four easy steps, the customization can
be done according to what one wants to create. First, pick a laser
print to be tattooed on the denim. Next choose the fastenings – be it
buttons, rivets or tacks. Then select the brush of the garment and
where exactly you want it. And finally, choose the colours you want
your print to be in.
The idea behind the Custom Studio was to empower the customer
with the opportunity for personalization; and therein lays a
powerful tool that will revolutionize denim fashion in India. Fashion
and customization go hand in hand. Through Custom Studio, Pepe
Jeans wanted to reinvent how denims were being sold. We saw that
3 out of 10 customers used the customization service.
Currently, the targeted audience in India is almost on par with the
global consumers. They are a lot more evolved with their shopping
choices; and are constantly seeking novelty in experiences.
We have to be ahead of the curve in understanding the new
generation consumers.
Kavindra Mishra
Managing Director,
Pepe Jeans India Limited
THE DIGITAL WAY
With digitization, India’s e-commerce market is expected to cross
US $ 800 billion, according to industry reports. The online space is
growing at par with physical stores now; as brands are ramping up
their strategies to ensure an omni-channel business.
The internet penetration is getting deeper in urban areas and
in emerging markets. With this, organized players are getting
stronger in these markets. It is important to consider the buying
behavior of consumers in small towns, which is different from
cities’ consumers. They seek value, have an affinity towards local
culture and are conservative in their choices.
While e-commerce expands your reach and customer base, another
factor to consider is the influence of social media and its huge
impact on the apparel industry. The internet has given social media
the reach, which wasn’t possible 10 years ago.
FACING CHALLENGES
While there have been several factors that have contributed to the
denim market’s continued success, there has also been a plethora
of challenges that showcase how this market is also susceptible to
volatility. The new age millennials have started to view clothes as
an extension and expression of their lifestyles. Attitude shifts have
further led to change in purchase patterns because of the increase
in disposable income. In the past 5 years, the retail landscape has
changed dramatically. Buying behavior is rapidly changing and
forcing retailers to conform to the new age of shopping. Brands
need to up their game when it comes to the cluttered market of
retailers prying for customer attention and also plan effective
retention programmes.
www.apparelresources.com | MARCH 1-15, 2019 | Apparel Online India
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