Sportswear Market in India 2011 - Sample: 0 Comments
Sportswear Market in India 2011 - Sample: 0 Comments
Sportswear Market in India 2011 - Sample: 0 Comments
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3. Market OverviewDrivers & ChallengesTrendsCompetitionKey Developments SPORTSWEAR MARKET IN INDIA 2011.PPT 3 4. Sportswear Industry is a growing segment dominated by major international players Market Overview Market Size and Growth Sportswear is one of the niche sections of the retail INR bn industry and is witnessing steady growth 150 LE In India, sports is mostly treated as a recreational G% Q activity 100 Organized sportswear industry is dominated by major international players like brand A, brand B, MP 50 P SA brand C and brand D These players have outsourced a considerable part of their 0 production to Indian manufacturers 20--e 20--e Sportswear includes sports apparel, footwear and accessories Apparel Market Segmentation Sports shoes account for ~D% of the total sports products market D% Category A The Union Budget 20-- has made it mandatory for C% branded apparels to collect U% excise duty, a move Category B which will make all branded apparel including Category C sportswear dearer A% Category D B%Source: SPORTSWEAR MARKET IN INDIA 2011.PPT 4 5. Drivers & Challenges Challenges Drivers Low sports participation rate Growing health & fitness awareness Competition from unorganized players Increased spending power Poor sports infrastructure Increase in number of Sports events Imposition of excise duty Unsaturated market Increasing organized retail space SPORTSWEAR MARKET IN INDIA 2011.PPT 5 6. Trends Summary Players sponsoring major sports teams and events Key Trends Players roping in celebrities Tie-ups with renowned for brand endorsements Indian designers SPORTSWEAR MARKET IN INDIA 2011.PPT 6 7. Product Portfolio Matrix SAMPLE Players Segment 1 Segment 2 Segment 3 Domestic Players Player A Player B Player C Player D Global Players Player E Player F Player G Player H Player I Player J Player K SPORTSWEAR MARKET IN INDIA 2011.PPT 7 8. Domestic Players (1/3) SAMPLECompany Snapshot: Player 1Corporate Information Financial Performance RevenueHeadquarters Location 1 Revenue Profit INR mn Profit / Loss INR mnFounded 19-- 15,000 8,000 s r q 6,000 10,000 pProducts Product 1 4,000 5,000 2,000Key People Person 1 Postion 1 0 0 20-- 20-- 20-- 20--Business Highlights It has 2 subsidiaries, namely Subsidiary 1 and Subsidiary 2 Player 1 has U plants located in City 1, City 2, City 3, City 4 and City 5 It plans to open about V large shoe stores over the next M years and will spend about INR N bn on the expansion. Plans to open about P to Q new stores each year The new stores would be more than X ft., with some as large as Y sq. ft. SPORTSWEAR MARKET IN INDIA 2011.PPT 8 9. Thank you for the attentionSportswear Market - India report is a part of Research on Indias Consumer Goods IndustrySeries.For more detailed information or customized research requirements please contact:Gagan Uppal Gaurav KumarPhone: +91 22 4098 7530 Phone: +91 33 4064 6214E-Mail: [email protected] E-Mail: [email protected] on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quickinsights on hot industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge-consulting and solutions firm with clientele across the globe. The companys expertise spans areas of investment &business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a truevalue proposition that draws upon a vast knowledge base. Netscribes is a one-
stop shop designed to fulfil clients profitability and growthobjectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. SPORTSWEAR MARKET IN INDIA 2011.PPT 9
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Features
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Nonwovens & Technical Textiles Sportswear industry gears up to meet high performance demands
Business Coordination House (BCH), a pioneering outfit in the field of technical textiles, organised a two-day training workshop on sports textiles on 13 and 14 December at Hotel Hans Plaza, New Delhi, India. It proved to be a resounding success, providing equal access to excellence in the new path breaking and trail-blazing technologies in the manufacture of functional sports apparel for all attendees. Today's sports clothing is engineered to maximize comfort through enhanced moisture management and temperature regulation. High-tech fabrics and apparel designed for high performance wear have increased performance levels of sportspersons world-wide and have made them more competitive. Such properties are built into garments using specialised fibres, yarns, fabric, finishing techniques and garment construction. The demand for such materials provides huge scope for innovative suppliers of technical textiles and functional sportswear and active wear. Giant global brands, internationally renowned experts as well as the domestic satraps all participated for the Benthamite principle of the greatest good of the greatest number. The workshop's course instructor was Prof Subhash Anand from the University of Bolton in UK. His learned and insightful observations were warmly received by the audience. Mr N Vishwanathan and Mr Dhirendra Gautam from Huntsman International (India) Pvt Ltd shared their knowledge, skills and experience in the dyeing and finishing of sports textiles The global giant Reebok was represented by Mr Anil Sharma, Senior Manager, Apparel Operations, Reebok who dwelt on quality, price and the expectations that the brand has from its suppliers and vendors. Ms Ritika Gupta, ED, BCH presented an exposition on the sports apparel market as obtained in India. The workshop stirred the industry and the delegates were unanimous in their view that the interface epitomised the common goals and vision of the industry. The platform proved to be an opportunity for neighbourly confabulations on how best to serve the interests and great expectations of society, new generation and the rising middle class. It established also the future orientation and forward-looking world-view of the industry.
(Business Co-ordination House, Tel: 011- 2332 8130 / 41520207. Fax: 011- 2331 6008. Email: [email protected]. W www.bch.in)
http://www.indiantextilejournal.com/articles/FAdetails.asp?id=880
Executive Summary
Market
_ Sportswear is considered as an niche segment of the retail industry _ The Indian sportswear market is estimated to be around INR P bn and is expected to grow at a
CAGR of G% and reach INR Q bn in the next k years _Branded sportswear market is dominated by international brands like brand A, brand B, brand C, etc
Challenges:
_ Low sports participation rate _Competition from unorganized players _Poor sports infrastructure _ Imposition of excise duty
Trends
_ Players sponsoring major sports teams and events _ Tie-ups with renowned Indian designers _ Players roping in celebrities for brand endorsements
Competition
_ Indian sportswear market has most of the major international brands like brand1, brand 2, brand 3, brand 4, brand 5, etc _ Indian players include brand 6, brand 7, brand 8 and brand 9
The Union Budget 20-- has made it mandatory for branded apparels to collect U% excise duty, a move which will make all branded apparel including sportswear dearer
Drivers
Imposition of excise duty Poor sports infrastructure Competition from unorganized players Low sports participation rate
Challenges
r 20-q 20-p
It has 2 subsidiaries, namely Subsidiary 1 and Subsidiary 2 Player 1 has U plants located in City 1, City 2, City 3, City 4 and City 5 It plans to open about V large shoe stores over the next M years and will spend about INR N bn on the expansion. Plans to open about P to Q new stores each year
The new stores would be more than X ft., with some as large as Y sq. ft.
http://www.marketreports.com/Sample/Netscribes/Sportswear_Market_in_India_2011-Sample.pdf
Adidas and Reebok jointly launch about 500 new styles of footwear each year, but this one promises to be special. The shoe called My Coach was launched globally in January 2010 and in its latest version it has more microchips and electronics embedded, technology that transmits heartbeat and other health data from the body directly to a computer. My Coach will be introduced in India by December-January at Rs 7,000 a pop. "The user interface is much stronger in Ver 2.0 because when you go online, the important thing is how you can use the data that is being generated to improve performance. If the health of a player is found below par in a particular game, he can be immediately pulled out and replaced," says Tushar Goculdas, Director-Sales and Marketing, Adidas India. Now Adidas may have bought over Reebok in 2006 but the joint operating model, or JOM, as they call it, kicked in as recently as May 1 of this year in India. And the tech play that comes in with such a JOM is quite phenomenal. If Goculdas is high on My Coach, his counterpart in Reebok, Sajid Shamim, is upbeat about the just launched ReeFlex range of footwear from his stable, which has sensors built in to the shoe replicating natural running by virtue of barefoot simulation. "So when you land your foot on the ground, you can actually feel the ground," says the Reebok brand director. Even Goculdas has a similar technology up his sleeve, the AdiPure Trainer, which is positioned as 'natural movement perfected'.
Beyond tech, the amalgam of two iconic brands spells total market domination in the Rs 4,000crore apparel and footwear category defined in the range of $10 and above per apparel and $2530 and above per shoe. "Together, we have 70% market share," claims Subhinder Singh Prem, Managing Director-India Operations, Adidas. Well, he's not completely off the mark when he says that, considering the definition of the market size has been predetermined. In the larger scheme of things, however, Images Retail data points to a Rs 20,000 crore market for footwear alone, of which about 80% dwells in the unorganized space. Anupam Bansal, Director-Retail of Liberty Group, has his own version for Adidas group's prime cut in India. " Nike are global leaders in footwear but in India, the brand has not taken off as much as Reebok, which got the first-mover advantage among MNCs," he says, somehow echoing the strong position of the Adidas group in its niche. Bansal is quick to add though that Rs 2,800 crore turnover, going by the Rs 4,000-crore market, is too optimistic "when 40% of Reebok's sales on MRP value are on the back of discounted goods". But that, again, needs to be mulled over another day. The JOM, for all practical purposes, is outward looking unlike the P&G and Gillette JOM, claims Prem, with the consumer at its core. "While it's true that it gives us scale, access to technology, better fabric management, a stronger backend and a quicker go-to-market, the question to ask is what we will do with the scale," points out Prem. He is clear. In the new scheme of things, the group wants to grow the market, tap into the lives of people to increase their sporting quotient and not just sit pretty managing their 70% benchmark. In cricket, for instance, India's most loved sport, the combined brands now sponsor almost all mainstream cricketers and also dominates the second richest sporting league in the world with seven IPL teams in its kitty. Ads by Google While maintaining the lead is critical, Prem & Co. are splitting hair over things like getting more and more women engage with fitness through Reebok's EasyTone or improving the overall participation of the Delhi Marathon. Having said that, finance and sourcing of both the brands have now been integrated. As the backend comes together, Team Adidas is vigorously scouting for land "to invest in one of the biggest warehousing facilities to reduce the lead time for consumers and bring them the latest products". Has the lead time improved? "It's too early to tell as the JOM just rolled out a few months back, and typically, these projects have an investment horizon of one-and-a-half to two years," says Prem. On the front-end, one clear arena where synergies will emerge is retail space management, to drive efficiencies. "We will seek to implement best operational practices across all our brands to enhance the profitability of our business partners," says Prem. But one thing is clear. In no way, will the JOM trigger manufacturing by the group on its own. Footwear and apparel will continue to be manufactured by about seven vendors in footwear and 55 in apparel. "The question now is how to upgrade their manufacturing facilities and make them
more efficient with scale, going forward," asks Prem. Nor will the JOM prompt the group to launch its own stores. It has about 1,600 stores today that are all franchisee operated. Ads by Google
http://articles.economictimes.indiatimes.com/2011-09-16/news/30165390_1_subhinder-singh-premadidas-grou
January 23, 2009 PRESS RELEASE Indian textile, apparel industry now part of global supply chain: Jairam Gurgaon, Jan 23 With a wide variety of fabrics and technically-skilled manpower, Indian textile and apparel industry has now become a part of the global supply chain, minister of state for commerce Jairam Ramesh said today. Our fabrics and workers are going to Bangladesh, Sri Lanka and other countries. A lot of investment in Bangladesh is from India, he said after meeting top exporters at 42nd India International Garment Fair (IIGF). Though Bangladesh has overtaken India in apparel exports, the country has definitely become a part of the global supply chain. Mr Ramesh said Indian exporters should not remain focused on traditional markets like the United States and Europe, but rather explore new markets like Japan and non-traditional products like those made from organic cotton which command premium in international market. We should quickly respond to new trends to beat competition from Vietnam, Bangladesh and Sri Lanka. The minister was talking to reporters at the fourth and final day of 42nd IIGF after visiting the exhibition hall, fashion streets and theme-based display areas. More than 300 leading apparel manufacturers and exporters laid out a spectacular collection for autumn and winter seasons of 2009-10 at the event showcasing fine garments for men, women and children. Mr Ramesh said the textile sector, which provides one-third of industrial employment in India, deserves a special economic package. I dont see any reason why the real estate sector should get two stimulus packages and the apparel industry has not got one. The minister said that the Planning Commission has called a meeting of garment exporters on February 5 to consider measures for stimulating exports. Meanwhile, the IIGF concluded today with over 460 overseas buyers and 380 buying agents checking a vast collection of garments, fabrics and fashion accessories manufactured by some of India's premier fashion and export houses.
Adding to the glitz were fashion streets, theme-based fair displays and avantgarde ramp shows. The event was jointly organised by International Garment Fair Association, Apparel Export Promotion Council, Garment Exporters Association, the Clothing Manufacturers Association of India, Apparel Exporters and Manufacturers Association and Apparel and Handloom Exporters Association. IGFA convenor Lalit Thukral said he did not expect such a heavy turnout in recessionary period. There were many first-time visitors. A lot of boutique buyers also came this time. With exhibition area of over 16,150 square meters, the show had designer and private labels, bridal wear, cocktail and evening dresses, blazers, cardigans, cashmere products, jacket, pullover, sweater, sweat shirt, children's wear, denim wear, infants' wear, knit wear, ladies wear, men's wear, shirts, shorts, silk garments, skirts, suits, Tshirts, trousers, body suit, brassiere, brief, home wear, men's underwear, nightwear and pajamas, outerwear, swimwear, body wear, skiwear and track suits. India is the sixth largest exporter of readymade garments in the world. Apparel worth 9.7 billion dollars was exported from the country in 2007-08.
http://www.aepcindia.com/files/Indian-textile-apparel-industry-now-part-of-global-supply-chainJairam.pdf
Strategy
contrast, according to market sources, Adidas Indias sales revenues are about $22 million. Says Prakash Vaswani, a Reebok distributor in south India, Reebok's main advantage has been that it understood the Indian consumer very well and has made an effort to grow alongside him. For instance, when the company came to India, all that the consumers wanted was an international brand of footwear and Reebok gave them that at an affordable price. Today, with sports becoming fashionable, the bulk of the sales comes from the $45 to $90 segment compared to two years ago when most of the sales would come from the $20 to $45 segment. One aspect to Reebok's success has been its ubiquitous retail chain. By the end of 2005, the company was retailing from 182 franchised stores. It also retails from two thousand multi-brand outlets. While Reebok has been adding a store a week in 2004, for the next year the company has lined up even more ambitious plans to open a store every 72 hours. Subhinder Singh Prem, managing director Reebok India Company, says, Our biggest investment has been in the field of marketing infrastructure, creating an international and uniform retail ambience in all our exclusive stores. A functional issue that was arguably instrumental in aiding the company establish itself early in the country was the fact that its shoes have a broader forefoot, which suits the Indian consumer. In contrast, the shoes of international rivals have narrower forefeet. It has made efforts to vibe with the customer for its apparel range as well, that contributes 45 per cent to the company's turnover. This year the company has come up with its NBA-NFL range of T-shirts that are flying-off shelves in retail stores due to the customer demand for the Americana look. What worries me the most is that we haven't made enough mistakes, which implies that we haven't taken enough risks. Most of our initiatives have been
extremely successful, says Prem. The only product line to bomb has been the salwar kameez (traditional Indian women's dress) in knit fabric that we brought out for the early morning women joggers. In 2004 the company started treating the womens' business initiative as if it were launching a new brand. It started promoting the category by opening women's-only stores, the first outside the US, that would meet the special needs of women customers. Adds a distributor, Whenever a style would do well, the company would ensure that we were always well stocked with that style whereas competitors would try and push the entire range of products at the consumer. On the promotions front as well the company has increased its spends and is roping in top sportspersons to push its brand. Reebok has tied-up with cricketers like Rahul Dravid, Mohamed Kaif, Yuvraj Singh, Irfan Pathan, Dhoni and Harbhajan Singh. In tennis, it sponsors the Davis Cup and backs Prakash Amritraj. In the up coming field of motor racing it is sponsoring the fastest Indian Narain Kartikeyan. Says Prem, We are proud of our association with Kartikeyan as he is the second Asian in Formula 1 races. Reebok came to India in the mid-90s mainly to develop the middle segment of 69 the footwear market in Africa, the Middle East, and Central and South Asia, and as a fallback in the event of an interruption in Chinese supplies. The annual threats of adverse action against Chinese imports into the United States, prior to the admission of China to the World Trade Organisation in 2001, were noted in each Reebok annual report as having a potentially negative financial impact. Reebok was the first among the big three that identified India as a huge emerging market and a sourcing base for global exports. Today the company uses Bawa Shoes in Jalandhar and Moja in Sonepat to manufacture its low-priced shoes but imports most of its high-end shoes from
around the world. Reebok India has performed so well that it received the prestigious Subsidiary of the Year award for two consecutive years 2003 and 2004, beating competition from countries like China and Japan to claim the credit. It currently has a market share of 47 per cent in sports footwear and apparel category. The company is also expanding its presence in Pakistan and Sri Lanka. We will add two more stores in Lahore in addition to the one store which we opened in February 2004. The legendary pace bowler Wasim Akram is our only franchisee in Pakistan. In Sri Lanka, we have had our presence for some time and we will add 35 stores in the next year, says Prem. In order to combine the popularity of its soccer and athletic brand with the popularSELLING A RANGE THAT HAS BEEN FASHIONED FOR THE INDIAN PHYSIOMETRY: The Reebok sales team at a New Delhi outlet PICTURES: SHEKHAR GHOSH 70 STRATEGY ity of football and basketball enjoyed by Reebok, Adidas-Salomon bid $3.8 billion in early August 2004 to acquire the latter. This deal has created a $11 billion sportswear giant and poses a formidable threat to arch rival Nike. Post its acquisition by Adidas, nothing has really changed for the company in India as far as its strategy is concerned. Insists Prem,The acquisition process that is scheduled to start in the month of March 2006 will first be heralded in its American and European offices. I believe that we shall be integrated with the company after that process is over. Whatever happens to the combine's overseas operations, given Reebok's marketing success in India, it is doubtful if the new major will deviate sharply from strategies that have trod well along the path of success. THIRTY SEVEN year-old Subhinder Singh Prem who has been with Reebok India Company since it set shop in the year 1995, and who recently participated in the Delhi half-marathon run, talks about his vision for the company with Anu Saraf. Prem became managing director in 2003 and since then, the chain has grown from 65 stores to 180-plus. And its turnover has increased from $36 million to over $91 million. Subhinder
Singh Prem spoke to Anu Saraf about Reebok. What have been the paradigm shifts in marketing sports shoes and apparel to Indian consumers since the time Reebok came into the market? The most noticeable shift has been that sports itself has become fashionable today in India. In our target segment, seven out of ten people now indulge in some kind of physical activity compared to just one in ten in 1995. Price sensitivity has also declined considerably. Today consumers want value for money products and are willing to shell out more for the product they want. How would you look back over the years It's been ten years now. The first three years were very difficult creating and laying the foundation for the organisation, and in trying to figure out the right marketing mix. We were one of the first MNCs that came in post liberalisation to have posted a profit and that was in 1999. And we have been making profits ever since. Considering you want to be eventually seen as a serious player in the sports/training shoes segment, what are you doing to grow the market in terms of promoting fitness/sports consciousness among consumers in the country? When we launched in India, fitness was a very nascent industry and people bought our products more for the American brand image, fashion and comfort. Over the years while we have retained our position as a fashionable brand, a sizeable portion of our consumer base buys the products for indulging in some form of fitness activity. The fitness industry is constantly evolving and is widely researched. New methods of calisthenics are fast attaining popularity. The company frequently invites visitors from abroad, to share global perspectives on fitness and conduct the Reebok Resolution with the Indian fitness fraternity at large. Reebok has not only been instrumental in redefining the attitude of fitness in India but also increasingly made it a career choice for women instructors and maintained global leadership in training across the board. What is your vision for the Reebok brand in India? Brands are here to stay. Investment in building a strong brand is a means of securing your sales and business for the future. As products get more and more commoditised and consumer choices soar, branding will provide the key differentiation to break through the clutter. Fitness will be the key driver in lifestyles, and Reebok is undoubtedly the fitness enabler in the country. To inspire Indians at large to lead a fit lifestyle is our goal and vision. The sales of our products will follow on their own, as we focus on our goal. REEBOK INDIA'S MARATHON MAN FITNESS AS A LIFESTYLE: Subhinder Singh Prem of Reebok India On the Web Reebok: www.reebok.com http://www.ibef.org/download/running_jan19.pdf