INDIAN DENIM MARKET UNTIL 2018

2,574 views

Ahmadabad in Gujarat is popular as the Jeans capital of India 

INDIAN DENIM MARKET UNTIL 2018India is growing as the youngest country of the world with more than 50% of the people below the age group of 25 years and 65% are below 35 years. It is expected that by 2020 the average age of the country will be 29 years whereas for its counterparts like China and Japan it will be much higher at 37 and 48 years respectively. As a result of the youngster generation there is an increased usage of tech and modernized items; even the attiring styles have experienced a big flip as easy to wear, comfortable outfits are regular wears presently. Jeans also well known as DENIMS are one such apparel which is omnipresent in India.

Denim Market Size and Growth in Indian Apparel market:

Denim is among the most worn attire in India and it has a strong presence in both urban and rural regions. According to market research on the denim market in India, the industry was recorded to be worth 13,500 Crs INR in 2013. With this figure the jeans market consisted about 5% of the total attire market of the country.

Projected Growth rate of Denim in India:

The denim market is estimated to grow at a CAGR of 15%.

 

As per the market research, Indian Denim industry will be worth 27, 200 Crs INR by the end of 2018.

Tweet

Branded vs. Non-Branded- the race continues:

As far as the brand and non-brand subject is considered. It is a 60-40 game in India where 60% of the production comes from the unorganized non-branded producers and the remainder is supplied by the branded companies.

Consumer Segmentation:

The India denim market is dominated by the male gender as the consume 85% of the production. The female wearing denims in India account to around 9% and 6% of the contribution come in from the kids section. However, the women and kids category business is expected to gain momentum in the coming years as brands and retailers are focusing more on them.

Indian vs. Foreign denim consumption:

Basically western lifestyle has gained pace in India. The trend of casualisation alike across the globe is also showing in India, the trend has given rise to the consumption levels of denims and dresses prepared with the material. Jeans pants, tees, denim shirts and casuals are most on demand attires in India. Though being populace nation India’s denim consumption is way inferior in volume when compared to Global denim consumption. Countries like US, China and Europe along with other developed nations are way ahead than India.

However, this low consumption rate indicates a highly potential market which is yet to be explored. Understandably a number of domestic as well as international denim manufacturers are increasing in a speedy manner.

Area wise distribution of denim consumption in India:

Metros are the areas where people are regularly using denims and related to material for their attires. Metros and mega metros together cover-up a 49% share of the market share whereas 51% of the demand is slotted between urban and rural areas.

People in the metros and developing rural areas are now willing to pay a higher price for better quality denim and differently styled patterns of denim clothing.

Few positive factors encouraging the denim markets in India:

  • Increasing usage of denim products among women and kids in the smaller regions (rural India) is witnessed as a big positive for the denim market.
  • The young generation of India (15-29 years) with a higher spending capacity is a great potential for the future denim market in India. Currently, this age group contributes 26% of the total denim consumption in the country.
  • A massive number of consumers mostly swing in favor of denim attires as they are easy to wear and the wearers can feel comfortable in them for long use.
  • The Indian youths have started accepting multi-colored jeans such as green, red, yellow etc besides the variations of the traditional blue color.

 Predictions suggest that by the end of 2015 the Indian denim demand will raise up to 600 million pairs. Hence, the industry is among one to be watched out for in coming years.