To 18-something Meenakshi Tandan, it doesn?t matter whether the faded pair she dons to college are technically khakis, corduroys, or acid-washed jeans, so long as she can pull them on as a second skin. To be sure, she has a few pairs of Levi?s and Wranglers in her wardrobe, but the bulk of her street wear is made up of what she picked off garage sales.
To her, as to many of her ilk, jeans is what it does and not what it is. The indigo fabric is a metaphor for youthfulness and that?s all that matters. Observes Rajesh Gangwani, senior vice-president at JWT Bangalore, the agency that manages the Levi?s account, ?Whether it is lycra, or corduroys, whether they are sweating or breathing in it, denim wear is about freedom. It?s about self-expression.?
No wonder the market is growing at a heady pace. The total market (branded as well as non-branded), which stood at Rs 2,700 in 2007, grew 17.5% in volume and 19.4% in value in 2007, according to the India Fashion Retail Report by Images F&R Research, which will be released shortly.
?In its appearance, denim is so rugged that an average consumer perhaps can?t relate it to the cotton we see in sarees, dhotis etc,? says Siddharth Wilson Master, the production/ sourcing and washing head at Spykar. ?Yet, it sells,? adds Master, claiming to have captured 19% of the denimwear market.
But things haven?t always been so hunky dory. The market hit a road block in 1999-2000, when stretch fabric became more popular. To add more value and in order to get rid of the ?workman?s apparel? perception, players began to add value to denimwear and in came fancy embroidery and innovative washes, styling, cuts. And denimwear, as a category, began moving up the value chain. ?This was the time jeanswear began to be perceived also as fashion apparel and the super premium category established itself in India,? says an industry observer. Indian designers added their bit when they embraced denim with gusto.
Then last year, marking another point of maturation for the industry, style icon John Abraham launched his own collection (for both men and women) in association with Wrangler. Straight leg modeled on low-rise fits, the premium pr?t denim line is the first of its kind in the Indian industry. The limited edition is being hawked only at select Wrangler outlets.
Currently, there is a huge unbranded segment especially in tier 2 and 3 cities. The lead players?namely, Levi?s, Lee, Wrangler, Flying Machine and Ruf & Tuf?between them cater to the market across price points. Levi Strauss India, for instance, has a brand called Signature endorsed by Deepika Padukone that targets the campus crowd and is positioned as an entry level pair for those who wish to upgrade to premium jeanswear, later. ?The youth looks for great fashion and fit, besides competitive pricing. This is an important consideration for someone who shells out Rs 1,500, on average on a branded pair,? explains Master.
Testifying to the expanding domestic market, Arvind Ltd?s domestic sales now account for almost 80% of its earnings. Five years ago, the ratio (domestic to international) was 60:40 per cent, according to Aamir Akhtar, CEO of Denim Fabrics, Arvind Ltd, the third largest player in Asia that supplies fabric to many international brands?JC Penny, Levi?s, AnnTaylor, Blue Cult, C&A, Debenham, H&M, Next, Tommy HF, VF, Zara etc.
?The domestic market is growing in double digits, compared to the 3-4% growth abroad; so our focus there is on value-added products to derive higher realisations,? says Akhtar.
Besides the regular open-end, ring indigos and over-dyed denims, Arvind?s portfolio also features cotton blended with other fibre such as polyester, jute, tencel, bamboo, lycra, nylon, linen etc. Driven by trends popularised by fashion houses abroad, weaves like left hand twill, right hand twill, broken twill, cross hatches, cords, dobby?s, structures are also coming in vogue, along with ?utilitarian? finishes like mercerised, water repellant, moisture management, self cleaning, anti bacterial etc. ?Polyurethane-coated denims, printed denims and structurals is the fashion forecast for the coming year,? predicts Akhtar.
The versatile nature of the fabric is finding expression in the market communication, as well. ?In all the Levi?s sub brands, Red Tab, Sykes or the Red Loop, the cool as a cucumber attitude is conveyed to the hilt by different celebrity endorsers,? says JWT?s Gangwani. That?s where you get Bipasha Basu for Levi?s Slim, Sushmita Sen for Diva and Kangana Ranaut for the Cling Fit, the latest roll out from Levi?s, a brand that?s seen double digit growth in the recent past, especially in the super premium segments, according to Shyam Sukhramani, director, marketing, for Levi Strauss India.
?The latest trend is to wear jeans that make you look skinny and tall from a silhouette standpoint,? says Sukhramani. ?There is re-emergence of the bootcut for girls albeit in a skinny block for the niche trend-adopting consumer. From a finish/ wash perspective, modern vintage and resin-coated wrinkled looks are in vogue.?
?Denim is synonym to youth the world over and India is no different,? sums up Kanchan Pant, managing director for VF Arvind Brands, marketer of brands like Lee, Wrangler, Nautica etc. ?Perhaps the only difference between West and India would be the per capita consumption. Once that grows, denim will have a similar penetration in India.?
Expert Take
Aamir Akhtar, CEO, Denim Fabrics, Arvind Ltd.
What impact has the recession had on your exports?
The impact is very clearly seen on reducing unit value realisations and increasing input costs. These have resulted in margins being reduced considerably.
Are you focussed on developing markets outside the US and the EU?
We are already doing business in markets like Japan, Korea, Bangladesh, Egypt, Sri Lanka, Hong Kong etc, and have a very strong presence in these markets.
What impact has the removal of quota restrictions had?
The dismantling of the quota regime has brought the entire market at an interesting stage with players like China and India beginning to make their presence felt. Exports from India are expected to surge from the current levels of $14 billion to $50 billion by 2010. In the post-quota regime, the Indian textile industry is poised to become a major player in the US $395 billion global textile and clothing market.
Do you align with fashion houses in Europe and the US to be a part of a global supply chain?
We supply fabric to fashion houses like Armani Exchange, Calvin Klein, Tommy Hilfiger etc and work with their global supply chain.
What?s your present capacity for denim production and are you planning any backward consolidation to increase it?
Our current denim capacity is 90 million metres per annum (MPA). Regarding the backward consolidation we have started organic cotton farming on a small scale and will be increasing our capacity.
What are your main opportunities and challenges in meeting international competition?
Our strengths are large capacities, abundance of raw material, cheap labour, shift of manufacturing bases to Asia. The weakness are, design capabilities, poor infrastucture, high inflation etc.