Currently, how many brands are available in the ready-made garments segment? Which are the big brands in India?
The number will be in hundreds if one takes into account the local, regional as well as the national brands -- as also some prominent stores or retailer brands such as Benzer. There are more than 50 "active" national brands besides several others, which are not that well advertised or those that have only top-of-the-mind recall. The big ones include Peter England, Park Avenue, Arrow, Louis Philippe, Benetton, Colorplus, Allen Solly, Van Heusen, Lee, Levi's, Lacoste, Newport, Wrangler, etc.

There is an emerging trend of private labels too, which are gaining ground as the select retailers grow. Shopper's Stop brands Stop! and I, etc., are examples in this category.

Some of the global brands include (primarily apparel) Levi Strauss, Lee, Wrangler, Gap, Benetton, Tommy Hilfiger, Nautica, Giordano, Hugo Boss, Lacoste, Nike, Reebok and Adidas, to name a few.

Under the designer label category Giorgio Armani is the leader. Some of the brands include Ralph Lauren, Prada, Ferre, Valentino, etc. The retailer brands are St. Michael (Marks & Spencer), Arizona (J C Penny), etc., in the range of US $100 million or more.

How long does it take to build a brand?
Brand-building could take several years as there are several dimensions to brand equity (product, service, quality, image/lifestyle connotations and finally, perceived value). In India's case, several brands have been successfully introduced in shorter time spans -- notable among them being Peter England. However, sustaining and consolidating the brands' core values requires time.

According to our estimates, the prevalent "brand clutter" and "alternative product category" pulls, would require around Rs 10 crore for media spend in the first year of a brand launch. It would be in the same range in the second year too to achieve a national presence -- matching distribution and retail shelf space as well.

The textile industry is fast moving from stitched garments to ready-to-wear (RTW) garments. What percentage of the market would this segment eventually capture?
Yes, it is true that the industry is rapidly moving from the stitched garments to the RTW. Penetration of RTW in the urban areas is already upwards of 50 per cent in categories such as woven shirts.

With increasing popularity of knit garments (T-shirts, polo shirts, etc.,) and denim-wear (both categories almost entirely ready-mades), the overall proportion of ready-mades in the total wardrobe of the middle class and upwardly mobile segment of customers is already very high.

The current season has seen a major thrust in the supply of ready-made trousers (led in particular by Madura Coats with their San Frisco brand and Arvind Mills with their Newport brand) at competitive prices making it economically attractive for the customers to switchover to ready-mades.

We, therefore, believe that within five years or less, as much as 75 per cent of the total apparel market in India would be in the form of ready-mades.

So, do you think that stitched garments are dying a slow death?
No. Stitched garments will thrive for several more years albeit, at drastically reduced levels and catering only to that segment of the population that is beyond the average profile of physical proportions (either too short or too tall or too big). It will also continue with the segment that perceives "status" related connotations of having "made to measure" rather than off-the-shelf buy.

Most people target their brands at the metros or large cities. The mass markets or the rural markets really do not come into the picture. What are the reasons for this?
There have been brands aimed at the mass markets too. Some instances of non-metropolitan consumer oriented but mass marketed textile and clothing brands include Ruf & Tuf, Newport (Arvind Clothing) and, Peter England (Madura Garments). Several fabric brands and sub-brands of companies such as Raymond and Reliance also have a national distribution network and presence in the metros as well as other urban and rural markets.

Profiting by catering to the mass markets requires the marketer to be extremely well managed and highly responsive, along with a cost-competitive supply chain being in place. It also requires a mind-set akin to a FMCG company (which usually have a highly responsive distribution network) rather than a traditional textile company orientation. Besides, going to the mass markets also requires extensive investments towards advertising and promotions in order to generate grass-roots level demand, and in logistics to take care of supplies and replenishment of merchandise to meet this demand.

Some companies that are currently in the fabrics segment are diversifying into the ready-made segment. Will this trend catch on?
Companies selling fabric in piece goods form in the domestic market will not necessarily foray into the manufacture of ready-mades and then market it as their own brands.

This, because the apparels business has distinctive operating characteristics and certain key success factors as compared to the fabrics business. It is quite to difficult to predict how many fabric companies will actually get into the branded ready-made garment business on their own.

With advancements in technology, cheap and skilled labour is no longer India’s advantage. And, the corporates are quite sore about labour just getting hired but not getting fired.

How do you think this situation could be tackled?
We have no simple solutions here. Labour-intensive industries also require an enlightened labour policy in place. Else, job creation will not take place. Corporates would prefer investments in those sectors that are less labour intensive. Thus, there is no way out but to look closely at the entire gamut of labour laws towards making them equitable to both the employers and the employees.

There are many exporters of ready-made garments today (very small to the big ones). What sort of consolidation do you envisage in the immediate future?

Consolidation is bound to take place as the quotas disappear and also as retailers worldwide consolidate edging out the smaller independent entities. The supplier will necessarily have to become bigger in many cases, and be required to make investments not only in manufacturing hardware but in systems, processes, information technology and logistics too.

The small producers will not be able to make such investments and therefore will either have to close, merge or become sub-contractors to the large manufacturers (not large retailers).

What according to you can the government do to help the textile industry?
The industry is possibly the most regulated (most fragmented too) amongst all industries in India. The government could do well to deregulate it, dismantle artificially created barriers between the small, medium and large (or between cotton and man-made or between organised and the so-called unorganised sector) sections, and then quietly make way for the private enterprise.

Excessive regulation and a paternalistic attitude has caused more harm than good to the workers, employers and to the country at large. Notwithstanding the government's avowed commitment to support the cause of the handloom weavers and artisans, India's textile heritage will disappear in a decade or two if radical reforms are not undertaken immediately.

So, what is the future of the industry?
Overall, the industry prospects are quite good from the demand point of view. Simultaneously, there are ever increasing challenges being faced what with the consumer getting more individualised, and falling in trot with the global trends and expectations of quality, service and overall value being rendered.