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Rating agency ICRA on Wednesday said the textile industry’s performance will recover to pre-Covid levels in the next fiscal on account of boost in demands from domestic as well as export markets. The agency assigned outlook for the sector as “stable” for FY2022.
The recovery in the domestic textile sector, that picked up pace in Q3 FY2021, is likely to continue in the upcoming quarters, said ICRA.
This will be supported by the opening up of economies and markets, improved consumer confidence levels and continued pick up in discretionary spending, it added.
Commenting on it, ICRA Senior VP & Group Head, Corporate Sector Ratings, Jayanta Roy was quoted by PTI as saying that the textile sector appears to be on a firm footing with the worst of the pandemic impact behind us, and favourable progress on vaccination rollouts.
“As demand continues to normalise in domestic as well as export markets, we expect the textile sector performance to recover to pre-Covid levels in FY2022 at a broader level. Accordingly, ICRA’s textiles sector outlook for FY2022 is Stable,” he said.
After witnessing a major setback in Q1 FY2021 following the Covid-19 pandemic and the ensuing lockdowns, the domestic textile sector started reporting a gradual recovery from Q2 FY2021 onwards.
This was supported by opening up of the markets and resumption of activity across the value chain.
“Based on an analysis for samples of large, listed players across segments, ICRA expects cotton spinning and apparel export segments to report relatively lower contraction in FY2021 vis-a-vis other segments (including fabrics and domestic apparels), considering higher dependence of these segments on exports,” it said.
Similarly, the recovery is slated to be faster for these segments in FY2022.
“Revenues for the cotton spinning and the apparel export segments in FY2022 are likely to grow by 15-20 per cent, following a contraction in mid-teens, estimated for FY2021,” it added.
While operating margins for spinners are likely to revert closer to pre-Covid levels, those for apparel exporters may remain marginally lower than the pre-Covid levels amid a competitive operating environment, wherein buyers could be expected to negotiate for steeper discounts.
“For fabric and domestic apparel categories, the revenue growth in FY2022 is projected at 30-35 per cent and 35-40 per cent, respectively, with these segments estimated to report steeper contraction vis-a-vis other segments in FY2021,” it said.
Indian consumers have long been known to be price conscious. While brands are coming up with designs and products that align with the price sensitivity that Indian consumers are synonymous with, there is a balance of sorts as consumers too are slowly opening up to the idea of paying more for quality products.
Hidesign has an extremely strong presence online as well. Highlighting an interesting observation on regional differences affecting shopping patterns, Dilip Kapur states, “Delhi region is the largest and accounts for higher sales and the south cities tend to have higher sales of work bags.”
Clovia has made exponential strides growing aggressively quarter on quarter, and has introduced several initiatives to position itself as a leader. It sells over 5,00,000 pieces of lingerie a month and is now one of the fastest growing brands in the nascent US$ 4 billion market. As of now, more than three-quarters of its business is online. The brand launched in offline market 6 quarters ago and has been seeing aggressive growth there. They now have 12 exclusive brand outlets and a total of 100+ sales touch points including retail chains like Central and Brand Factory. Last year the company expanded overseas. The idea is to continue the growth and accelerate both the online and offline channels with an equal push.
Since we have a huge vendor base – almost 600 – which creates lines for us every day, we don’t even have to worry about outdated fashion as everything is already updated. These vendors are creating, innovating and finding the latest trends in the trade and then supply to us. We create visibility of their products through our stores in a short period of 40-45 days.
Unlimited, a large format value fashion retailer by Arvind Fashions, is looking to open 30-40 stores this fiscal.The large value fashion retailer sells in-house brands like Excalibur, Colt, Newport, Karigari, Anahi, Sugr, Ruggers, along with licensed brands such as Elle Studio and Cherokee
What makes gym wear more intricate for women is the inclusion of a high-performance sports bra. Without a well-designed sports bra, the gym wear ensemble for women remains incomplete. Quite a few Indian brands that have taken note of this and the range available online as well as offline is exhaustive. It is interesting to see brands like Triumph launching exclusive brassieres for gym wear considering they are a premium lingerie wear brand. The option they have is bounce control certified by world renowned Research Group in Breast Health, the University of Portsmouth. Elaborating on the same, Jennifer Kapasi, Commercial Director, India & Sri Lanka, Triumph International shares, “Triaction by Triumph is a stylish, high-performance sportswear collection that gives modern women the freedom to train how and when they like. Boasting the best bounce control levels on the market, three versatile fits and superior comfort, Triaction supports women throughout the day—on the go from the gym or studio in complete style.”
“Skechers is a brand for the world,” said Michael Greenberg, President of Skechers. “Our product is stylish, affordable, comfortable for every age – and it’s resonating with billions of consumers, thanks to our retail presence and growing investment in areas like China. We sell in more than 170 countries through our extensive network of distributors and joint ventures, and we have many more opportunities to build our retail store business even further and expand our global presence for years to come.”
Highlighting the growth drivers on the supply side, she further points out the contribution of corporatisation in retail, “With the entry of several foreign brands and large chains in the fashion accessory industry has made the market more organised, leading to higher standards of distribution and marketing and improved levels of quality, product designs and services offered. And it’s not just international brands. With a growth in demand, several domestic brands have been able to gain a strong share in the market, with their ability to off er high-quality good as at reasonable prices viz a viz international brands.”
“Our Omnichannel approach allows a seamless shopping experience across all our platforms. Our team of stylists and master tailors are available at the comfort of your home to help you curate an impeccably tailored look, while our website offers the opportunity to visualize your customizations through 3-D rendering,” says Aswathi Krishnan, Manager- Design & Marketing Communications, Tailorman.
According to Biyani, footwear today is no longer category defined for just women. It’s equally important for men – almost as important as buying trousers. With brands like Koovs, Lee Cooper, Clarks, Converse under one roof, Future Group claims to be the number two footwear retailer in India.
“We recently launched a new collection called ‘Pondicherry Paris Collection for Hidesign’, which has a range of chic products that make travel a pleasure like soft shawls, big sunglasses and range of pouches to organise travel needs. Most of these products are unisex, with clean refined lines and details.”
Dilip Kapur attributes the growth to the emergence of Tier I and II cities, women seeking financial independence which invariably has an impact on her spending potential, growth in retail spaces across high streets, penetration and acceptance of online shopping and most importantly, greater access to affordable fashion across different price points. Keeping these factors in mind, it shouldn’t be surprising to note that Hidesign’s leather goods business is around Rs 160 crore.
Neeman’s is India’s first footwear brand to use natural, renewable and biodegradable fibre in its shoes. The brand’s footwear collection comprises joggers (multi-functional, lightweight running shoes), classic sneakers with a modern twist, and simple, yet elegant, loafers in subtle colours, fit for all occasions. Its shoes are suitable to wear throughout the year with the ability to withstand every weather condition.
“Social media has become a huge part of a customer’s journey. In fact it is the first step towards a brand when a customer keeps updated via social media for trends. Even for our brand, we have started focus on social media by creating relevant content and promoting to the right set of audience. Influencer marketing has also become a major wave in these times. We have collaborated with a few top influencers to promote our collections. With efforts to organically grow our social media we have seen new followers joining our community everyday,” says Asha Esther Jaikishan, Head of Marketing, Numero Uno.
Central, India’s most popular fashion destination by Future Group, has launched its second store in Kolkata at one of the most iconic heritage buildings in the city. The new store – Metro Central, is located at Jawahar Lal Nehru Road, Esplanade and comes in place of the iconic Metro Cinema.Central, India’s most popular fashion destination by Future Group, has launched its second store in Kolkata at one of the most iconic heritage buildings in the city
“We initiated with developing a novel manufacturing system to ensure a quick turnaround time for custom clothing. We started with delivery of 48 hours for store bought products and the ultimate vision is to reduce this delivery time to 99 minutes. Our online orders are delivered within 5 days pan India, USA and the UK,” says Samiksha Bajaj, Co-Founder, Samshék.