Industr y Study

Sustainable Fashion Industry

Group 19

Dhruv Poplai

Khyati Behl

Shivam Naidu
 Executive Summary Industry Analysis
Market Analysis Market Analysis GTM Strategy Financial Viability Innovations

Market Analysis Recommendations: 4 Big 4Tech

Recommendations: BigIdeas
Tech
Problem Statement Analysis Market Analysis
Ideas

1. Industry Analysis
$85 bn in 2022 to 1. CIRCULAR ECONOMY via QR CODE
2.Problem
Market Statement Analysis TAM
a. Primary Survey $190 bn in 2026
b. Secondary Research
2. Print ON-DEMAND for T-shirts
SA $54 bn in 2022 to
M $122 bn in 2026
GTM Strategy
3. Sustainable STYLING
$11 mn in 2022 to
1. Customer Profiling SO
$43 mn in 2026
2. Product Portfolio M
3. Channel Strategy 4. Integrating BLOCKCHAIN with ERP system

GTM Analysis
Recommendations Breakeven Analysis

1 Customer Profile PAT(Present Value, In Cr)

125
4 Big Ideas
100

75 Payback Period = 2.5 years

2 Product Portfolio (In line with vision of
50
Financial Viability achieving profitability
25
within 3 years of
0 operations)
3 Channel Strategy -25

-50
2022 2023 2024 2025 2026
 Executive Summary Industry
IndustryAnalysis
Analysis Market Analysis GTM Strategy Financial Viability Innovations

Sustainable Fashion Retail Industry Analysis : A Global and Indian Perspective

Market Analysis

Indian Fashion Retail Industry Drivers Sustainability and Fashion Retail

Acquisition of many small brands/retailers Main source of e-commerce GHG emissions Sustainability Solutions
USD USD
by big retail giants PACKAGING
85bn 190 bn Adopting new technologies Raw material
Use of organic cotton fiber,
10,000 items of clothing into landfill every 5 hemp fiber, natural dyes
2022 Building marketing teams, Social media minutes
marketing, influencer marketing Compostable,
3rd largest apparel 2026* £140 million value per year Packaging biodegradable,
retail market globally In-store immersive experience like self-
manufacturing partners
checkout, same-day order fulfillment
Sales share of sustainable clothing in Reuse/ Donation, reprocessing
Digital retail as a complementary asset to in-
global apparel market Recycling textile material, buying used
store experience to check availability
Channel mix of apparel retail in clothing
India Growing e-commerce demand in Tier 2,3,4
cities Supply chain/ Internal processes,
Sales share
Traditional retail
8% Logistics sustainable partnerships
Organized brick and mortar retail Sustainability, consumer awareness
Online retail towards it Ethical, Eco, Lasting
100
fashion; Quality over
6% Quantity; minimalist and
75
Slow fashion
long-lasting clothing,
Challenges
accessories
4%
50
Fast-paced changes in consumer
Green supply chain practices
behavior and consumption
25 2%
Demand forecasting to optimize
production and inventory levels
0
2015 2018 2020 2026* Supply chain bottlenecks and 0%
infrastructure 2015 2017 2020 2022 2024 2026
*is projected values
Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Brands Offerings Brand Awareness Sustainability Competitive Landscape

Rating

Key findings

India does not have sustainable-focused brands.

Myntra ranks high on sustainability but does not
differentiates itself based on sustainability.

Most of the fashion retail is dominated by traditional

brick-and-mortar stores and online channels are yet
to penetrate tier 3,4 and below cities. However,
demand is rising substantially in these areas for e-
commerce

Raymond, which deals mainly in menswear, ranks high

on sustainability, but such formal wear options for
women is not present or are limited.

The Indian brands based on sustainability like

Doodlage, B-Label, Mio Borsa primarily focus on
women, such options for men are not present.
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Porter's Diamond - Market Attractiveness Test Primary Research Findings

No of respondents: 76
Established sustainable fashion firm in Male: 41
the U.S. High growth rate of the industry Female: 30
Less competition in purely sustainable Transgender: 2
Firm fashion space
Prefer not to say: 3
strategy

Comfort and Fit ranks the highest in customer

100% FDI allowed in preference while choosing any apparel.
textiles Availability of
skilled and cheap
labour Sustainability currently ranks the lowest as
Factor Demand compared to other parameters.
conditions conditions Third largest apparel market
globally Increasing disposable No
income Rising awareness and 17%
willingness on sustainable
consumption
83% respondents were willing to purchase >10%
Support 0% 36.5%
sustainable clothes over fast fashion 42.9
Related
Availability of supply-chain %
Activities
infrastructure and raw
43% respondents were not willing to pay
material Textile industry
support by the government
any extra amount for sustainable clothes
Yes
>40% >25%
83%
6.4% 14.3%

Our Primary research suggests that although consumers are willing to

Porter's Diamond Theory of National Advantage helps a firm
shift to sustainable fashion, they don't want the cost of purchase to rise
entering a new market to analyze the competitive landscape.
exorbitantly. Also, when compared with other parameters that consumers
It emphasizes the competitive advantage an industry or
keep in mind while making purchases, sustainability takes a back seat,
business has over competitors.
with other factors dominating the decision making process.
The Indian government is taking promising steps to promote sustainability in the fashion industry. Here are some key policies and initiatives worth noting:
Policy Support:

• National Action Plan on Sustainable Textiles (NAPST): Launched in 2018, this plan aims to create a sustainable textile and apparel value chain in India by promoting eco-friendly
materials, efficient production practices, and responsible waste management.

• Production Linked Incentive (PLI) Scheme: Introduced in 2021, this scheme offers financial incentives to domestic manufacturers of technical textiles, including sustainable
materials like organic cotton and hemp.

• Amended Technology Upgradation Fund Scheme (ATUFS): This scheme provides financial assistance to textile and apparel businesses for upgrading their technology, with an
emphasis on energy efficiency and environmental performance.

• Make in India: While not specific to sustainability, this initiative encourages local production, potentially reducing the environmental impact of garment transportation and promoting
sustainable practices within Indian factories.
Institutional Support:
• Sustainable Fashion Council of India (SFCI): Established in 2016, this non-profit organization works to promote sustainable practices in the Indian fashion industry through
education, research, and advocacy.
• Handloom and Handicrafts Development Programme: This program supports traditional artisan communities and handloom weaving, promoting sustainable production techniques
and preserving cultural heritage.
• Ministry of Environment, Forest and Climate Change (MoEFCC): This ministry takes a holistic approach to sustainability and includes regulations and initiatives impacting the
textile and apparel industry.
Other initiatives:
• Focus on organic cotton cultivation: Several government programs promote organic cotton farming, reducing the environmental impact of cotton production and providing sustainable
raw materials for the industry.
• Waste management and recycling: Government policies encourage textile waste recycling and reuse, mitigating the environmental burden of discarded garments.
• Certification schemes: The government promotes eco-friendly certifications like GOTS (Global Organic Textile Standard) and Fairtrade to incentivize sustainable practices within the
industry.
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Servicable Obtainable Market to grow at a CAGR of 40%

TAM: Total Addressable

TAM EXPERIMENTER LOYALIST
Market Behavior: Satisfied but switch Behavior: Brand loyal, hesitant to

Satisfaction
Refers to total possible $85 bn in 2022 between brands, Price sensitive switch product, Stay and Support
demand for the to Insights:
• Can be retained by
Insights:
• Small improvement in customer
$190 bn in 2026
market SAM

High
communicating brand offers service will improve loyalty highly
• May not be valuable to • Positive WOM
The fashion retail industry
spend time and efforts on • Can become advocates at
• Difficult to please low cost
$54 bn in 2022 • Reward their loyalty
SAM: Serviceable to
Addressable Market Refers $122 bn in 2026 High Repurchase
to specific audience for your SOM
product/offering Behavior: Neither Behavior: Not satisfied
Customers willing to satisfied nor loyal, but keep on repurchasing
$11 mn in 2022 to negative WOM Insigh
purchase sustainable Insights: ts:
$43 mn in 2026
fashion products • Never ignore dissatisfied • Requires more
customer efforts to improve
• Fix the issue that has led • Understand satisfaction
SOM: Serviceable Obtainable their needs
to negative emotions • If they do not like the value
Market Refers to the Apparel constitutes 82% of the fashion • Potential Loyalist proposition they aren’t the TG
proportion of SAM that the market in India.
company can obtain Primary surveys and secondary research
DEFECTOR CAPTIVE
show that ~64% of customers are willing
The attainable market
to purchase sustainable apparel
share by the company
products. CUSTOMER PROFILING
through their offerings
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Customer Strategic Consideration

Awareness Experience Recommendations
Profile Objectives and Decision
Create Pre-release consumer buzz; Print-on-demand for
Leveraging social media
influencers and targeted customization;
Brand promotion through this Price-sensitive, hence lure
advertisements
segment; with complementary Discounts through social
offerings media campaign engagement
Create FOMO effect Plantable packaging to
Solving Customer Pain Points at each step of the Consumer

First on target while entering a

Experimenter new market
for consumers to latch lure them
on the new trend

Incremental increase in Loyalty programs

online and offline
Increase Customer Life-Time Value experience to keep Collaborate with 3rd-party
them interested Focus on Comfort, apps
Offline store promotions
Quality and Variety as
Promotion through office reflected in primary
Loyalist survey
engagements

Understand pain points and Analysis of customer

increase customer satisfaction feedback and
reviews
Try to convert into LOYALIST Clear communication on
upgrades in customer
Create seamless
journey and value
Captive omnichannel experience
addition
with real time feedback Incorporate technological
incorporation of the tools like AR/VR to let
Pattern recognition from consumers at every step them experience our
Understand reasons for
Journey

Increase awareness on feedback;

offerings before placing
dissatisfaction enhanced technological the order
experience, differentiated Are they buying from
Minimize customers product offerings, and other sustainable brands?
falling in this sustainable consumption Or not buying sustainable
segment products at all?
Defector
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Offline
Post-purchase Stage
Customer immersive experience and
THE SUSTAINABILITY MESSAGE Defined and user-friendly
return/exchange policies.
VERTICAL PLANTATION Robust customer care
VIRTUAL TRY-ONS Online
& PLANTABLE mechanism
PACKAGING Planted trees tracking mechanism for customers
1. Truly committed
to
1. Stores with dedicated sustainability AUGMENTED TRY-ONS
walls having by replacing
vertical the 1. A life-sized image of the
Purchase Stage selected product on individuals
plantation trial rooms with
2. Customers can virtual try-on to check the look and fit using
Intention-Action gap bridging solutions
choose a plant 2. Small store their smartphones.
to be implemented in different channels
from THE space, reduced
WALL whose electricity
seeds will be consumption
OLD CLOTH RETURN METAVERSE
provided in the
POLICY
plantable Option Evaluation 1. Digital avatar created in the Metaverse for
packaging post-
TREE PLANTATION BY COMPANY 1. Return old used every customer to try on clothes, browse in
purchase.
clothes in any the digital showroom, and meet other
1. Company will plant a tree for 100% avatars, creating a real-life experience.
StyleX & Co. GUARANTEED

B E ST

customers after their StyleX & Co. differentiates its 2. Digital Wardrobes created using NFT limited
QUALITY

store.
purchase exceeds a 2. Get discounts on Checks available options from offerings in fashion through quality, edition clothes for showcasing
threshold amount your next various competitors; compares variety, and its brand identity as a
2. Plantation tracker StyleX app purchase based on priority parameters sustainable U.S. fashion brand

Online
Offline
Decision making Company
Shopping malls Independent Retail Outlets Google Search Social media
Customer searches for sustainable Website / App Campaigns
fashion solutions on various
channels

NEED
Customer intends to purchase ethical,
sustainable, eco-friendly clothing
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Revenue (In Cr) Cost (In Cr) PAT(Present Value, In Cr)

400 125 Key Insights:

100 We can see profitability from 2nd year

onwards
300
75
The Payback Period is 2.5 years which
50 is well within the vision of making the
200 company profitable within 3 years
25

0
100

-25

Microsoft Excel
0 -50
2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Worksheet

Key Assumptions:
Marketing Channels to be used:
Our Revenue is calculated as per the SOM available and the Online Channels
Social Media Ads on Apps like Instagram, Facebook, etc,
average order value according to the product portfolio we 40.1%
based on Segmentation, Targeting, and Positioning as per user
possess; Growth rate is as per the market size increase in
interactions on the Platform
the growth and mature phases respectively Offline Channels
59.9%
Run Google Ads based on insights provided about
Costs have been adjusted for inflation, assumed to be 5%,
the consumers
and discount rate used to calculate present value is 17%

Run offline Marketing Campaign through key collaborations, Marketing - Offline vs Online Spends Split
Assumptions for Cost level parameters have been put in the
Cost putting up Banners at Prime locations like Airports
sheet of the excel attached
 Executive Summary IndustryAnalysis
Industry Analysis Market Analysis GTM Strategy Financial Viability Innovations

Achievable CIRCULAR ECONOMY via QR CODE and Natural Raw Materials Print On-Demand for T-shirts (Online channel)
SDG Goals
Introduction of the circular economy model in the sourcing phase.
Standardization Customize designs Digital printing
Worn out products are Reusable
collected in offline stores fabric StyleX StyleX StyleX
extracted
through
reprocessing

1000+
The fabric is designs
New products with new used to spin
designs made through the into new
Sizes and colors standardized recommendations by app/website Order fulfillment by digital printing
recycled/ reprocessed organic yarn
fabric
Integrating Blockchain with ERP System Why Blockchain in ERP system?
Public Goodwill
Why Circular Economy?
PO receipt generated,
Customer transaction appears
Reduces waste to landfills Order
- currently one truckload Placed
as a block
High Optimization
Cost savings in raw material of clothes every minute Notification
Delivery and Speed in process
sent

Style 1 Style 2 Style 3 Fulfilment centers

Sustainable STYLING Supplier
Why?
Order Highly secure and
Create designs that can Cost- details data records
remain trendy for a long time. effective for sent
the company. StyleX Mill
Same t-shirt can be styled Inventory
Invest in Customization
in multiple ways. designs that Instructions sent Adds transparency and
Provide visuals to customer can last.
to guide them. traceability within organization
Thank You
 References
Market value of textile and apparel across India from financial year 2006 to 2021, with estimations until 2026; https://
www.statista.com/statistics/1030346/india-market-value-of-apparel/
Channel mix of apparel retail in India from financial year 2015 to 2020, with estimates for financial year 2025;
https://www.statista.com/statistics/1253030/india-apparel-retail-acrossl-channels/
Sales share of sustainable clothing items within the global apparel market from 2013 to 2026; https://www.statista.com/forecasts/1307848/worldwide- sales-of-
sustainable-clothing-items
Sustainability in e-commerce - statistics & facts; https://www.statista.com/topics/8200/sustainability-in-e-commerce/#dossierKeyfigures
Dipanwita Ray, 2020, 5 Steps for a Sustainable Apparel Supply Chain - Green Perspective; https://www.onlineclothingstudy.com/2020/03/5-steps-
for-sustainable-apparel-supply.html
Indian apparel retail poised for ascendancy amidst economic revival; https://in.apparelresources.com/business-news/retail/indian-apparel-retail-
poised-ascendancy-amidst-economic-revival/
Sustainable Consumption in India 2021 Report; https://www.statista.com/study/89748/sustainable-consumption-in-india-report/
Compound annual growth rate of the fashion market in India from 2018 to 2023, by segment*; https://www.statista.com/statistics/1030386/india-cagr-
fashion-market-by-segment/#:~:text=The%20compound%20annual%20growth%20rate,to%202023%20across%20the%20country The State
of Fashion 2019;
https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20State%20of%20Fashion%202019%20A%20year%2
0of%2
0
awakening/The-State-of-Fashion-2019-final.ashx
More than 8 in 10 Indians are open to buying sustainable fashion items; https://in.yougov.com/en-hi/news/2019/08/06/more-8-10-indians-are-open- buying-
sustainable-fash/