Even retailer Levi Strauss didn’t apprehend the fetish of the denim jeans, while crafting it in 1850s. With the passage of century blue jeans, initially simply sturdy trousers worn by workers, have become a constant staple of every wardrobe. Of late, the wonder garment is worn by almost every age group and highly bestowed by the young fashion aficionados. In India, with the increasing domestic demand for denim, being considered as a dress-up stylish fabric, the market prospect is more promising than international demand. As Rajiv Dayal, MD, Mafatlal Denim Ltd. states, “The Indian denim market is among the fastest growing market with an expected growth rate of 8-12%. There is a surge in domestic denim demand due to retail boom.”
The insatiable Gen-X is on the vanguard of this growth and true to Mr. Dayal’s statement, global jeans retailers like – Levi Strauss, Wrangler, Lee Cooper, Pepe Jeans and other prominent captains of the segment have accelerated their activities in India. The domestic jeanswear market is growing at 10% a year and approximately 80% marketplace is filled with branded segment, thanks to youth brigade. So, there is huge potential for the jeans makers to spread their wings in the Indian market.
For instant, international jeans brand, Levi Strauss is planning to add 800 stores across India by 2011. The company has also plans to expand the Icon stores in metros. Even, the male dominated Wrangler brand has also unfettered itself from the traditional image and has unveiled its feminine side by launching, ‘Wrangler girl’ roping in greenhorn, Jiah Khan as its brand ambassador after Bollywood actor, John Abraham. John has already launched its own line of clothing with Wrangler to attract young generation.
Lee Cooper, another leading denim wear icon, is in row to enhance its presence by opening more stores. Ameet Panchal, CEO, Lee Cooper (India) Pvt. Ltd. is sure about the brand’s unparalleled growth in India as, “today’s fashion conscious Gen X in India knows the difference between a good pair of jeans and a great one and we at Lee Cooper believe that we can fill this gap.”
With same exuberance, Pepe Jeans London, has a target of opening 300 standalone stores by 2010. Pepe’s Country Head, Chetan Shah is hopeful about the brand’s growth, which is at present 25% in the premium jeans and casual wear segment.
To accelerate the growth rate, the brand is heading towards retail expansion into tier II and tier III cities, and Chetan marked this as a win-win situation for the brand as according to him, “The potential here is huge and untapped.” The retail rampage and the escalating consumerism, wrapped up with brandmania, are slowly but steadily trapping the consumers here and the robust profit of Koutons’ strengthens this fact. Koutons Retail declared that the company would have 1,000 Koutons stores and 2,000 Charlie Outlaw stores by 2011. The brand is on transforming verge, especially in small towns and cities.
So desi home grown jeans and denim manufacturers too are leaving no stone unturned to capture a potential market share posing as affordable brand to lure youngsters. More and more denim manufacturing companies are busy with outlining new retail roadmap to become as a one stop-shop destination in lifestyle fashion wear. For instance, Aarvee Denims and Exports Limited (ADEL), has launched the first fashion brand, “DE EXTASE” to make a high fashion statement and is ready to open 100 outlets by the end of 2009.
Another legend of the textile and denim industry, Arvind Mills, has tugged Abhishek Bachchan as brand ambassador for its first denim jeans, Flying Machine to attract young customers. Similarly, India’s premium U:th fashion clothing brand, SPYKAR, is also making a mark among youngsters. According to Sanjay Vakharia, Director-Marketing, Spykar Lifestyles Pvt. Ltd., “Till date, Spykar has marked its footprint in more than 450 MBOs & all large format stores across India and promises to reach the number to 300 by the end of 2010.”
Reliance Retail is successfully running its exclusive apparel store under the 'Reliance Trends' targeting the middle class by offering a pair of jeans for Rs. 199! Surely, these initiatives will be a beginning to captivate the hearts of consumers of all ages but of course, price would be the core concern, apart from quality and semblance.
According to reports, about 35 million consumers in India are purchasing over 44 million pairs of jeans. The primary consumer group in India is categorized from the 16 to 25 age group, while the secondary target is 25 years and above, who purchase jeans basically due to its functional purpose. In the middle segment (Rs 1,000/- to 2,000/-) Levi’s, Pepe, Lee Cooper, Wrangler etc. are in dominative echelon. While the rest of the segment (300 and above) is covered by localized manufacturer brands or in discount range by some famous brands.
Besides price strategy, retail presence is another issue for the brands to enhance their growth. The way fierce competition is shaping up, more and more companies are on prowl to find unique ideas to cosset potential consumers through their brands. Association with fashion shows, musical night sponsoring films and opening up new contests etc. are some of the idiosyncratic proposition for the brands to leverage their growth and to be all the rage among their targeted consumers.
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