The Hindu Business Line : Apparel brands button-up focus in 2007

Bangalore, Dec. 27 The branded apparel industry witnessed a flurry of activities this year, both on the product and retail fronts. As brands vied with each other to get a chunk of the consumer’s wardrobe, it was heartening to see consumers once again gaining centre-stage.

For a brief while, brands seemed to think they could ride on brand equity alone and consumers would lap up anything. Not anymore.

With so many choices around, brand loyalty is a thing of the past, something that has forced brands to take consumers more seriously than ever before.

Long content with a niche tag, apparel brands are now stepping out of their ivory towers — to extend themselves and reach out to a wider section of consumers.

While ‘serious’ brands became nattier with youth extensions, some economy brands realised ‘mass’ does not mean low-design and poor fashion.

While Excalibur from Arvind Brands got trendier post-revamp, Peter England — the mass brand from competitor Madura Garments — entered the sub-premium category with its ‘Elite’ brand.

A large part of the brand focus this year was on youth. Says Mr Ashish Dikshit, President, Madura Garments, Lifestyle and Retail: “With more youngsters coming into the workforce, the youth cannot not be ignored. Especially since they have aspirations to own brands and have international exposure and greater awareness.”

For instance, Louis Philippe (from Madura), a brand with a formal imagery, came out with Lp — a sub-brand for the younger consumer. Allen Solly too targeted the youth with its Solly Youth collection.

Womenswear also got a good look with brands such as Excalibur, ColorPlus and Wrangler entering the fray, after Solly and Arrow made the plunge a few years ago.

Says Mr J. Suresh, CEO, Arvind Brands — Brands and Retail: “Most brand extensions have happened in two areas — extension into women’s range, recognising the potential of women’s western clothing which will see huge growth with increase in working women, and product/imagery upgradation as a result of Indian consumers becoming more sophisticated and brand conscious.”

Changing perception

Brands increasingly want to be perceived as ‘lifestyle’ brands offering everything from apparel to accessories, catering to varied consumers.

For instance, Flying Machine does not want to be known as just a denim brand. It prefers to be called a ‘casual wear’ offering botttomwear, knits, jackets and accessories. Brands like Arrow too have embraced the lifestyle proposition with zeal.

International brands also began making their presence felt this year. While Nautica and Esprit are slowly finding their feet in the Indian market, Diesel, US Polo and Cherokee are set to enter India next year.

This year saw a massive retail expansion drive. Several exclusive brand outlets (EBOs) cropped up in major cities and even smaller towns and cities.

Says Mr Vikram Rao, Business Director-Textiles & Branded Apparel, Aditya Birla Group: “EBOs allow brands to express themselves better with customised services. Consumers are getting more demanding and like to buy in a world-class ambience with a great service culture.”

Apart from a domestic retail push, companies like Arvind, Madura Garments, and Royal Classic Group are also eyeing a large presence overseas.

Value retailing

The apparel industry is also taking value retailing seriously. A far cry from dingy discount stores, formats like Brand Factory (from Future group), Megamart (from Arvind) and Coupon mall (from Prateek Lifestyle) provide consumers a superior shopping experience and bring in a touch of organisation into value retailing.

This year is only an indication of things to come. The ‘retail’ and ‘brand’ stories promise to get sharper and shriller. We haven’t heard the last of consumerism and mall culture!

Says Mr Rao: “With the economy growing and disposable income going up, the outlook for the apparel industry is bright; the industry will witness double-digit growth. More international brands will enter the market to tap specific target customers.”

But with fuelling real estate costs, “branded business has to become more efficient so that brands deliver healthy profits. Retail management needs to get sharper to turn around every store,” cautions Mr Dikshit.

If this year was for brand building, next year will see brands consolidating themselves. Ultimately, it’s the profits that count. And whether these brands can cash in on brand conscious India, only time will tell.

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