Swot analysis of Indian textiles and clothing Industry.

1. SWOT Analysis of Indian Textiles and
Clothing Industry &
Changes in Lifestyle of Indian
Consumer
o
By:
Anna Sunny
Anshu Yadav
Pankhuri Bhardwaj
Poorti Sangal
Rituparna Neog
Subhasmita Panigrahi

2. Contents :
SWOT Analysis of Indian
Textile and Clothing
Industry
Changing lifestyle of the
Indian Consumer

3. A brief introduction to
Indian Textiles and Clothing Industry
• The history of textiles in India dates back to the use
of mordant dyes and printing blocks around 3000 BC.
The diversity of fibres found in India, intricate
weaving on its state-of-art manual looms and its
organic dyes attracted buyers from all over the world
for centuries
• Apart from providing one of the basic necessities of
life, the textiles industry also plays a pivotal role
through its contribution to industrial output,
employment generation, and the export earnings of
the country
• It contributes about 14 per cent to industrial
production, 4 per cent to the GDP, and 16.63 per
cent to the country's export earnings.
• The Indian textiles and apparel industry has an
unbalanced structure, 95 % of the industry is the
unorganized and only 5 % is the organized.

4. BUYING POWER
• By 2015, India’s consumer market will be as big as Italy’s, and will grow into
the fifth biggest worldwide 10 years after that.
• India’s expanding middle class has prompted big Indian conglomerates such
as Tata, Reliance, and Bharti to expand into retail.
• Foreign brands such as Nike, Samsung, and Sony have tied up with local
players, and Wal-Mart is entering the fray via an alliance with Bharti.
• Now, FDI into retail would change Indian consumer’s buying pattern forever.

5. India's Position in Global Textiles and Clothing Industry
• India's position in the World Textiles
Economy - Second largest producer of raw
cotton.
• Second largest producer of cotton yarn.
• Second largest producer of cellulosic
fibre/yarn.
• Second largest producer of silk.
• Fourth largest producer of synthetic
fibre/yarn.
• Largest producer of jute.

6. • The Indian textiles industry is one of the largest
textiles industries in the world.
• With the abolition of quotas in 2005, Indian
Textiles and Apparel exports grew by 19% to
reach US$ 17 billion in 2005-06. Indian exports
increased in both the major destinations of US
and EU.
• Indian exports to US increased by 27% to reach
US$ 4.6 billion, while exports to EU increased
by 18% to reach US$ 6.2 billion
• On the account of increasing exports, most of
the Indian companies experienced healthy
growth in their top and bottom lines. The
exports of Textile and Garments have reached
to US $ 19.2 billion in 2006-07.

7. The major sectors of the textiles industry
include:
• Organized Cotton/ Man-
Made Fibre Textiles Mill
Industry
• Man-made Fibre/ Filament
Yarn Industry
• Decentralized Power-looms
Sector
• Woollen Textiles Industry
• Silk Industry
• Handlooms Industry
• Handicraft Industry
• Jute Industry

8. • 1.Strong cotton base
• 2.Strong entrepreneurial class
• 3.Flexibility in production of small order lots
• 4.Presence of integrated i.e. concept to
consumer.
• 5.Ability to handle value additions,
embellishments etc.
• 6.Adequate labour supply at relatively
competitive wages
• 7.Good "cultural" comfort with US and Europe
• 8.Growing Domestic Market

9. • 1.Poor work practices resulting in higher labour cost
component in many staple garments, in spite of low
labour costs
• 2.Rigid government labour policy and lack
rationalization of duties in MMF.
• 3.High transaction and power cost
• 4.Too much emphasis on cotton, synthetic fibre base
not equally developed
• 5.Fabric/processing still to gear up to meet
international standards
• 6.Technological obsolescence and lower efficiencies
• 7.A lack of strong linkages between raw material
supplier and the apparel manufacturer.
• 8.Highly fragmented, unit production capacities very
low in international standards

10. • 1.Quotas carried on in China after 2005.
• 2.Good political equation with EU and
US.
• 3.Improvements in infrastructure and
regulations.
• 4.Research and product development
• 5.Buyers preference for India, after China
• 6.Understanding buyers need because of
language advantage

11. • 1.Rupee appreciation in last
few months.
• 2.Trade blocs and partnerships
at the exclusion of India.
• 3.Location disadvantage: long
transit time to key markets.
• 4.Pricing pressure, following
opening up of quotas
• 5Enhanced competition from
other countries similarly
constrained by quotas.

13. Introduction
• Phenomenon of changing demographics and income
levels, which leads to their new and revamped lifestyle. In
the recent times, India has been facing a sea of alteration
in every sphere.
• While the family structure is modifying and shrinking
from joint to nuclear, income has heightened, leaving
consumers with increased disposable income.
• Consequently, the wish list and aspirations of consumers
is not inert but is ever changing.

14. Important points

15. 1. “Easy on Pocket” Aspiration
• With the improving economy the consumer is again looking
for better products and services. However after witnessing
recession in full swing he/she is now even more value
conscious.

16. 2. Compassionate Consumer
• Indian consumer is now becoming more receptive to the
goodwill of the society at large
• consumers are positively responding to products and
services which have a generous component; especially
those, portions of which would be donated to a worthy
cause.
• Consumers have now begun to favor ethical and eco
friendly products, starting from Ahimsa silk; vegan belts
and footwear to environment friendly electronic goods
such as LED bulbs by Philips etc.
• Procter & Gamble and UNICEF have joined forces for the
fourth year running, in an effort to raise money for
tetanus vaccines, etc

17. • The brands consumer wears, eats, drives, uses or
experiences are connected to his/her status.
• Catering to the demands of consumers, various brands have
tried to offer goods and services that help consumers to
alleviate their anxieties about how they are perceived by
others.
• . Status is also associated with the number of connections
one has or the level of involvement in the networking site.

18. 4. Old Wine in a New Bottle

19. 5. Increasing
Alertness
• With escalating crime rates
and increased threat of
terrorist attacks there is
enough reason for the
modern day consumer to
demand security services and
products that are effective
and comprehensive
• The far more vigilant and
meticulous consumer now
wants to invest liberally in
the safety and security of his
home, possessions, and most
importantly, his loved ones.

20. 6. From Conventional to Bold
• The consumer today, is moving away from
traditional, social and familial structures and feels
that now its time to loosen up. The more
experienced and outspoken consumer is
appreciating brands that are enterprising, candid
and even a bit more risqué.
• The broad spread of more liberal attitudes and
increasing urbanization has given birth to savvy
streetwise consumers who do not hesitate in trying
products that push the boundaries.

21. 7. Desire for Fringe
Benefits
• Consumers have actively started looking out for products and
services which provide them with “on the plate” benefits.
• Hence, any bit of information/ service that serves as an instant
assistance to the consumers and help them to make the most of
their daily lives, would pleasantly surprise them .
• . The current mobile online revolution is shifting consumer
expectations further into the always-on, instant gratification online
arena

22. 8. Not Yet
Retired ! • The current day older generation is fast emerging
as an exceptional genre with new desires and
anticipation and are increasingly showcasing “Life
begins after retirement” attitude.
• They look forward for ways to enjoy and “LIVE”
their life without strings.

23. Other Prevalent Consumer Trends :
• Value emerging as a ‘price plus’ proposition
• Enhanced services perceived as differentiator
• Shopping time together is defined as together
‘family time’
• Time paucity & convenience need shall drive ‘all
under one roof’ formats
• Emergence of family malls, large apparel
formats, hypermarkets
• Attractive investment in Hypermarkets and Cash
& Carry
• Growth opportunity for brands and private labels
• Increasing career women : Estimated 40 to 45
million across age of 20 to 40 years in Urban
India over next 10 years
• Create brands around evolving lifestyles &
activities
• Increased self spending power & freedom
(career women)

24. References
• www.technopak.com
• www.crisilresearch.com
• http://comtrade.un.org/
• http://texmin.nic.in/annualre
p/arep.htm
• http://www.atkearney.in/
• http://www.kpmg.com/in/en
/pages/default.aspx