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Indian Apparel Industry

In: Business and Management

Submitted By getrahul02
Words 456
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Indian Apparel Industry:
The Indian apparel industry adds 14% to the industrial production and 4% to the GDP of India. The Indian Apparel Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports. The market is highly competitive with 65000 garment units in organised sector. Top 3 competitors are Arvind Mills, Madura garments and ITC Lifestyle. SWOT analysis of apparel industry
Strengths:
• India has high Sufficiency for raw material
• Cultural diversity offers good base for designers
• Increasing urbanization and purchasing power of Indian youth Weaknesses:
• High power cost and long export lead times
• Low productivity of apparels as compared to global competitors
• Reliance on imports for synthetic yarns

Opportunities:
• World textile trade growing at 5% annually
• Integration of information technology
• New market access through bilateral negotiations Threats:
• Shortening of fashion cycles
• Opening of domestic market for foreign players
• Formation of trading blocks like NAFTA, SAPTA, etc

The business strategy of Xtreme fashions is driven by its vision, mission and core values and it addresses the five forces of market.

1. Differentiated Product and Store Environments: Owing to the demographic diversity of India, Xtreme creates product differentiation by incorporating local tastes and trendy designs. Stores are designed to provide a cultural and urbane look. The company has hired regular services of the prominent fashion magazine editors, fashion institutes, entertainment industry style icons to keep up with the fashion trends in addition to this the company also owns its R&D and style department under the name “SUAVE”.

2. Speed to market: Xtreme launches its new designs in 1.5 months against the market average of 3 months by...

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