Benefits of FDI in Retail in India:

Benefits of FDI in Retail in India:


Increase Organized retail sector
  51% FDI in multi-brand retail stores will enhance the organized retail market size. In the next 10 years, the market size will increase up to $260 billion. This will optimistically impact the employees, workers, producers, consumers and Government thus increases the overall economy of the nation. FDI in multi-brand retail stores also boosts the income of producers to $35 - $45 billion annually, provides 3 to 4 million direct jobs & 4 to 6 million indirect jobs opportunities.



Growth in units, output and employment
  FDI will also increase the number of units, output and employment opportunities. Quality standards, technology and marketing will be brought by FDI so Indian retail chains will integrate with global supply chains and thereby increase employment and economic opportunities. For example, liberalization growth from 1993-1994 to 1998-1999 was 16%; from 1998-1999 to 2004-2005 was 12% while from 2004-2005 to 2008-2009 was 19% as well as registered SSIs generated employment increased 6% from 1979-1980 to 1989-1990; 4% from 1993-1994 to 2003-2004 and 19% from 2003-2004 to 2008-2009.

Help small and medium enterprises (SMEs)
  Indian SMEs will get extra orders of USD 60 billion every year from huge retailers. Currently, 35% products are supplied from SMEs and after 10 years (by 2020) over $298 billion worth products will be supplied. FDI will also help SMEs to increase quality as well as to stay connected to the international markets. SMEs will also turn out to be cost-competitive. Through transparent & accountable monitoring of goods and supply chain management systems, government will be benefited by FDI. The government will get extra income of $25 to $30 billion through different types of taxes.



Customers
  Customers will get more option in buying, with better competition. Customers will get all the things that they want to buy because more brands will be available. They will also get guarantee of quality with better transparency and simpler monitoring of adulteration, fake products & traceability. Consumers will get things at cheaper rates which will help to control inflation.



Farmers will be benefited
  In India, farmers are getting only 30% of the consumer price. The entry of big retailers will raise the price realization for farmers by 10% to 30% as a result of direct sourcing. So the farmers can increase their yield and produce. Along with that the economies of scale will let them to provide goods at more reasonable price to customers. They will also get advantage of investment in supply chains and logistics through retailers and logistics companies.



Low income family
  Organized retail will decrease 5% to 10% cost of the monthly consumption basket for a low income family. FDI integrates farmers and enterprises (small & medium) by bringing growth of a healthy supply chain. Fixed percent of foreign retailer’s investments will be spent on setting the back-end infrastructure.




Reduce handling and wastage
  FDI in retail in India also helps to reduce 25% to 50% handling and wastage by consolidation and investments in technology (directly / via aggregators). Direct procurement at the farm let the farmers to get market feedback, technical knowledge and appropriate agricultural extension services. Thus there will be less wastage and rise farm income.

Business Name Ideas

   Creating a business name is easily one of the most enjoyable, yet utterly important, aspects of starting a retail business. Coming up with business name ideas may come easy for some, but others struggle with the task. The wrong business name can actually be the end of a well-built business plan. Let's use brainstorming to generate some solid business name ideas.

* Brainstorming Business Name Ideas

   In order to find the perfect business name for a new retail venture, we must first wade through the muck to find a gem. We'll generate business name ideas by brainstorming, so grab a tablet, a pencil and let's begin.

   At the top of the page, write down the product or service you offer. Underline it. Now below that, write down as many keywords related to your retail business that you can think of. The more words, the better.

   If I were starting a maternity store and sold mostly clothing, I would write down Maternity Clothing. My keywords may look like; maternity, baby, clothing, pregnancy, breastfeeding

   Once you run out of keywords, grab a thesaurus or use an online synonym finder to continue searching for keywords. The idea here is to find exciting and interesting words you may not normally use. By adding to the list with phrases or words of similar (and even opposite) meanings, your word list will grow exponentially. Add these new words to our list of business name ideas.

   Under the words maternity, pregnancy, baby, etc., I would add these words to my growing list; maternity wear, due dates, new arrivals, mother-to-be, reproduction, babe, precious, bambino, little darling.

   Stop and think about your business for a moment. What do you want to accomplish or what is your mission? How would you like others to view your business? What kind of testimonials would you like to receive from your clients or your customers? Now add some of those adverbs and adjectives to the list.

   As a retailer of maternity wear, my mission would be to provide fashionable, trendy, tasteful maternity clothing and accessories for the expecting mom. I would want my buyers to think of my store and staff as knowledgeable, dependable, and trustworthy. My competitors should see me as professional, experienced, a leader in the industry. All of those bolded words and phrases get added to the list.

   Your list should really be growing now and offering many options. Now add your own name to the list and your location, if it's relevant. If you think you may relocate your business one day or plan to sell, then don't use exact pinpoints.

   I know that I would always live in the southeastern region of the United States but I can't guarantee I'll always live in the city or even the state I currently reside. So I'll add the words South, Southern, and Southeastern to my list.

   Now that you have a long list of keywords, see if you can combine any words or if any suggest common sayings, or clichés. Can you create any alliteration, which is a combination of words beginning with the same letter or sound? Also, if any words on your list have a homonym (other words that sound the same but spelled differently) then add it to your list. Try pairing keywords which rhyme or even contradict each other. Keep in mind that your business name must not be misleading or in any way imply something that the business is not.


   After playing around with my list, I find a few possibilities that I like. Magnolia Moms, Due South, Southern Expectations and Precious Trends all have potential.


*Business Name Do's and Don'ts


   Keep these tips in mind while choosing your new business name:

•Do make it easy to understand, spell and pronounce
•Don't use negative sounding words.
•Do consider where your business will fall in an alphabetical list such as the yellow pages.
•Don't limit your product line by choosing a name that won't represent all you do.
•Do create a name you can stand behind.
•Don't use a strictly generic term, such as 'discount office supply' which cannot be protected as trademarks.
•Do be creative and imaginative.

*Testing Your Business Name


   Now look at your list of possibilities and ask the following questions of each name:


•Is it pronounceable and easy to spell?
•Is it distinctive and concise?
•Does it clearly communicate your missive?
•Does it have a positive sound?

   If you think you've chosen a winner, don't commit to it just yet. Get feedback from friends and family. Say it repeatedly. If after a few days you feel confident and comfortable with the name, then it's a keeper. If you can't get used to, toss it out and go back to your list.

*Taglines


   If you have fallen in love with a name that doesn't precisely tell people what you do or what you sell, consider adding a tagline. A tagline is best described as a phrase or adage that defines your company's mission in the fewest words possible. Take another look at your list of keywords to see if any words can create a 3-7 word statement about who you are or what you are selling.

   From the moment of inception, your business name will be linked to your customers' perceptions. All advertising will center on your brand. By putting a lot of thought and effort into generating business name ideas now, you may avoid many marketing and legal pitfalls.

India Retail Report

     Total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015, according to the Business Monitor International (BMI) India Retail Report for the second-quarter of 2011. Strong underlying economic growth, population expansion, the increasing wealth of individuals and the rapid construction of organised retail infrastructure are key factors behind the forecast growth. With the expanding middle and upper class consumer base, there will also be opportunities in India's tier II and III cities.



    Mass grocery retail (MGR) sales in India are expected to undergo tremendous growth over the forecast period. BMI predicts that sales through MGR outlets will increase by 218 per cent to reach US$ 27.67 billion by 2015.



    BMI forecasts consumer electronic sales at US$ 29.14 billion in 2011, with over-the-counter (OTC) pharmaceutical sales at US$ 2.30 billion. The former sub-sector is expected to show growth of 66.8 per cent between 2011 and 2015, reaching US$ 48.61 billion, with projected double-digit growth of key products such as notebooks, mobile handsets and TVs. OTC pharmaceuticals, meanwhile, should increase more, by 106.9 per cent throughout the forecast period, to reach US$ 4.75 billion.



    China and India are predicted to account for more than 91 per cent of regional retail sales in 2011, and by 2015 their share of the regional market is expected to be at least 93 per cent. BMI forecasted growth in regional retail sales at 75.2 per cent for 2011, an annual average of 14.9 per cent.



    Organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14-18 per cent and reach US$ 450 billion by 2015, according to a McKinsey & Company report titled 'The Great Indian Bazaar: Organised Retail Comes of Age in India'.



    Furthermore, according to a report titled 'India Organised Retail Market 2010', published by Knight Frank India, during 2010-12 around 55 million square feet (sq ft) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organised retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft.



    Driven by the growth of organised retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025, according to a report by KPMG.



    According to the report ‘Strong and Steady 2011’ released by global consultancy and research firm PricewaterhouseCoopers (PwC), India's retail sector, which is currently estimated at about US$ 500 billion, is expected to grow to about US$ 900 billion by 2014.



    India has also been ranked as the third most attractive nation for retail investment among 30 emerging markets by the US-based global management consulting firm, A T Kearney in its 9th annual Global Retail Development Index (GRDI) 2010. Within Asia, India is expected to account for the third largest share at US$ 2.7 billion in 2015, according to a report released by research firm Ovum on January 12, 2011.



    Foreign direct investment (FDI) inflows between April 2000 and January 2011, in single-brand retail trading, stood at US$ 128.34 million, according to the Department of Industrial Policy and Promotion (DIPP).

• Carrefour, the world’s second-largest retailer, has opened its first cash-and-carry store in India in New Delhi. Germany-based wholesale company Metro Cash & Carry (MCC) opened its second wholesale centre at Uppal in Hyderabad, taking to its number to six in the country.

• Jewellery retail store chain Tanishq plans to open 15 new retail stores in various parts of the country in the 2011-12 fiscal.

• V Mart Retail Ltd, a medium-sized hypermarket format retail chain, is set to open 40 outlets over the next three years, starting with 13 stores in 2011, in Tier-II and Tier-III cities.

• RPG-owned Spencer's Retail plans to set up 15-20 new stores in the country in 2011-12.

• Spar Hypermarkets, the global food retailing chain of the Dubai-based Landmark Group, expects to start funding its India expansion beyond 2013 out of its local cash flow in the country. So far, the Landmark Group has invested US$ 51.31 million in setting up five hypermarkets and plans to pump in another US$ 51.31 million into the next phase of expansion.

• Bharti Retail, owner of Easy Day store—supermarkets and hypermarts—plans to invest about US$ 2.5 billion over the next five years to add about 10 million sq ft of retail space in the country by then, according to a company spokesperson.

• The country's largest consumer products company Hindustan Unilever is testing waters in the coffee shop market even as US giants Starbucks and Dunkin' Donuts finalise plans to tap into increasing out-of-home consumption of coffee in the country. Hindustan Unilever has opened a 'Bru World Cafe' outlet on a pilot basis at Juhu, an upmarket western suburb of Mumbai.

Policy Initiatives




    100 per cent FDI is permitted under the automatic route for trading companies for cash & carry trading wholesale trading/ wholesale trading.



    FDI up to 51 per cent under the Government route is allowed in retail trade of Single Brand products, according to the Consolidated FDI Policy document. Permitting FDI in multi brand retail is being contemplated by the government under union budget 2011-12. “FDI in multi-brand retail should be opened up as this is a capital intensive sector and the entry of foreign players will lead to greater competition in this critical sector,” said Mr Hari S Bhartia, President, CII and Co-Chairman & Managing Director of Jubilant Bhartiya Group, in the 2011 pre-budget meeting with Mr Pranab Mukherjee, the Finance Minister.



    The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail. It has written a letter to this effect to the Commerce Ministry. "Multi-brand retail should be permitted with a cap of 49 per cent. A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing," the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion (DIPP) in June 2010 on allowing 100 per cent FDI in multi-brand retail.



   The Securities and Exchange Board of India (SEBI) has notified the increase in the retail investment limit to US$ 4,423 in initial public offers (IPOs). The new norms will be applicable to issues that have yet not opened for subscription.



Road Ahead



According to industry experts, the next phase of growth is expected to come from rural markets.



   The organised modern retail segment in India will grow by over three times during the next five years (from 2010), to reach a figure of US$ 80 billion, as per consultancy firm, Technopak. India's modern consumption level will double within five years to an annual figure of US$ 1.5 trillion from the present level (taking 2010 as the reference year) of US$ 750 billion, according to Raghav Gupta, President, Technopak.



    Further, the luxury brand in the country is estimated to be worth about US$ 4.06 billion-US$ 4.51 billion and is expanding rapidly driven by the growing aspirations of youth and income levels in the country. Thus, major international brands are in the process of expanding their retail presence. For instance, Paul & Shark now has two stores with Hyderabad and will have few more by next year, Zegna, another Italian brand, known for its formal wear and quality suits, is also expanding and Diesel will have seven stores in the country.



    Ramesh Tainwala, who brought global luggage maker Samsonite into the country, has bought a 50 per cent stake in Planet Retail, which markets fashion brands like Guess, Next and Nautica from NRI businessman VP Sharma, in a bid to expand his presence in the booming retail space.



    In addition, the direct selling fast moving consumer goods (FMCG) segment is growing faster in Uttar Pradesh compared to markets in other states. Segment leader Amway India said it was growing by 35 per cent in Uttar Pradesh vis-à-vis 27 per cent pan-India.

Challenges in Retailing

Challenges in Retailing
    The industry is facing a severe shortage of talented professionals, especially at the
middle-management level.
    Most Indian retail players are under serious pressure to make their supply chains more efficient in order to deliver the levels of quality and service that consumers are demanding. Long intermediation chains would increase the costs by 15 per cent. Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports has further led to the impediment of a pan-India network of suppliers. Due to these constraints, retail chains have to resort to multiple vendors for their requirements, thereby, raising costs and prices.
     The available talent pool does not back retail sector as the sector has only recently emerged from its nascent phase. Further, retailing is yet to become a preferred career option for most of India’s educated class that has chosen sectors like IT, BPO and financial services. Even though the Government is attempting to implement a uniform value-added tax across states, the system is currently plagued with differential tax rates for various states leading to increased costs and complexities in establishing an effective distribution
network.
     Stringent labor laws govern the number of hours worked and minimum wages to be paid leading to limited flexibility of operations and employment of part-time employees. Further, multiple clearances are required by the same company for opening new outlets adding to the costs incurred and time taken to expand presence in the country.
     The retail sector does not have ‘industry’ status yet making it difficult for retailers to raise finance from banks to fund their expansion plans. Government restrictions on the FDI are leading to an absence of foreign players resulting into limited exposure to best practices.

      Non-availability of Government land and zonal restrictions has made it difficult to find a good real estate in terms of location and size. Also lack of clear ownership titles and high stamp duty has resulted in disorganized nature of transactions.

Retailing Formats

     Retailing Formats

      Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping, entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from discount stores to supermarkets to hypermarkets to specialty chains.

Source: IT Retailing: Are You In The Loop?, July 16, 2006

   

       However, kiranas still continue to score over modern formats primarily due to the convenience factor. The organized segment typically comprises of a large number of retailers, greater  enforcement of taxation mechanisms and better labour law monitoring system. It's no longer about just stocking and selling but about efficient supply chain management, developing vendor relationship quality customer service, efficient merchandising and timely promotional campaigns.

     The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens, which will result in huge savings for the farmers as well as for the nation. The Government also stands to gain through more efficient collection of tax revenues. Along with the modern retail formats, the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct, a direct to home service. Network marketing has been growing quite fast and has a few large players today. Gas stations are seeing action in the form of convenience stores, ATMs, food courts and pharmacies appearing in many outlets.

     In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. At present, there are 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-a-million or more. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years.

      Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate self-employment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, kiranas have now started providing more value-added services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc.

    The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores.

     Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities.
     Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros.
   In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India.

Retail Segment analysis


      The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150 new shopping malls by 2008. However, the traditional formats like hawkers, grocers and tobacconist shops continue to co-exist with the modern formats of retailing.
      Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. Kolam for daily use. With the introduction of organized retail, it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back; as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana. Thus, the way a product is displayed and promoted influences its sales. If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying.

1 . Food and grocery retail

      The food business in India is largely unorganized adding up to barely Rs.400 billion, with other large players adding another 50 per cent to that. The All India food consumption is close to Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion.
      This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market, and around 15-20 per cent of total urban food consumption. Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48 per cent of income being
spent on food and beverages.

2.  Apparel retail

       The ready-mades and western outfits are growing at 40-45 per cent annually, as the market teems up with international brands and new entrants entering this segment creating an Rs.5 billion market for the premium grooming segment. The past few years has seen the sector aligning itself with global trends with retailing companies like Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it is estimated that this segment would grow to Rs. 3 billion in the next three years.

3.  Gems and Jewellery retail

      The gems and jewellery market is the key emerging area, accounting for a high proportion of retail spends. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes, considering actual imports and recycled gold. The market for jewellery is estimated as upwards of Rs. 650 billion.

4.  Pharmaceutical retail
 
       The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh retail stores in India being chemists. Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food, apparel etc).
       A few corporates who have already forayed into this segment include Dr Morepen (with Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4 from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK Industries. In the south, RPG group’s Health & Glow is already in this category, though it is not a pure play pharma retailer but more in the health and beauty care business.

5.  Music Retail

       The size of the Indian music industry, as per this Images-KSA Study, is estimated at Rs.11 billion of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.

6. Book retail

       The book industry is estimated at over Rs. 30 billion out of which organized retail accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging with text and curriculum books accounting to about 50 per cent of the total sales. The gifting habit in India is catching on fast with books enjoying a significant share, thus expecting this sector to grow by 15 per cent annually.

7.  Consumer durables retail

       The consumer durables market can be stratified into consumer electronics comprising of TV sets, audio systems, VCD players and others; and appliances like washing machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an estimated US$ 4.5 Billion with organized retailing being at 5 per cent.

Retail in India - Current Status

Retail in India - Current Status :-


      India’s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010.

     The Indian retail market is estimated at US$ 350 billion. But organised retail is estimated at only US$ 8 billion. However, the opportunity is huge-by 2010, organised retail is expected to grow at 6 per cent by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3 per cent which at present is estimated to be $ 6 billion, according to the Study undertaken by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping point. India is currently the ninth largest retail market in the world. And it is names of small towns like Dehradun, Vijayawada, Lucknow and Nasik that will power India up the rankings soon.

     Organised retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business by the Year 2010 generating employment for some 2.5 million people in various retail operations and over 10 million additional workforce in retail support activities including contract production & processing, supply chain & logistics, retail real estate development & management etc.

     It is estimated that it will cross the $650-billion mark by 2011, with an already estimated investment of around $421 billion slated for the next four years.

Investment Opportunities in the Retail Sector

      AT Kearney’s study on global retailing trends found that India is the least competitive as well as least saturated of all major global markets. This implies that there are significantly low entry barriers for players trying to setup base in India, in terms of the competitive landscape. The report further stated that global retailers such as Walmart, Carrefour,Tesco and Casino would take advantage of the more favourable FDI rules that are likely in India and enter the country through partnerships with local retailers. Other retailers
such as Marks & Spencer and the Benetton Group, who operate through a franchisee model, would most likely switch to a hybrid ownership structure.

      A good talent pool, unlimited opportunities, huge markets and availability of quality raw materials at cheaper costs is expected to make India overtake the world's best retail economies by 2042, according to industry players. The retail industry in India, according to experts, will be a major employment generator
in the future. Currently, the market share of organised modern retail is just over 4 percent of the total retail industry, thereby leaving a huge untapped opportunity.
The Potential of the Indian Retail Sector


The high growth projected in domestic retail demand will be fuelled by:

• The migration of population to higher income segments with increasing per capita incomes
• An increase in urbanisation
•  Changing consumer attitudes especially the increasing use of credit cards
•  The growth of the population in the 20 to 49 years age band

There is retail opportunity in most product categories and for all types of formats

• Food and Grocery: The largest category; largely unorganised today
•  Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR estimated in the next 10 years

• Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years

Opportunities for investment in supply chain infrastructure: Cold chain and logistics

India also has significant potential to emerge as a sourcing base for a wide variety of goods for
international retail companies

• Many international retailers including Wal-Mart, GAP, JC Penney etc. are already procuring from India.

      The sector is expected to see an investment of over $30 billion within the next 4-5 years,catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak estimates.Of the total organised retail market of Rs 550 billion, the business of fashion accounts for Rs 300.80 billion, which translates into nearly 55 per cent of the organised retail segment in the country.

      Total fashion sector was estimated at Rs 1,914 billion and forms about 15 per cent of the country's retail market of Rs 12,000 billion. Commanding such a large chunk of the organised retail business in India, fashion
retailing has indeed been responsible for single-handedly driving the business of retail in India.

Competing in Retail

Point to keep in mind to competing in Retail :-

    Part of running a successful retail store is being able to compete with other stores or even online web sites that sell products identical to yours. You have to find something that makes you unique and push it. You don't necessarily need expensive advertising or marketing to make a name for yourself, but you do need to promote yourself in different ways.




1) Make sure that people are aware of what makes you special. You may want to put signs in your front window displaying what special brands you carry. The manufacturers will often send you free promotional material if you ask. If you run newspaper ads, magazine ads, or other types of paper communication, make sure that you include details about your store in the print. Be careful not to only mention a sale and forget that a new customer might be reading and need to know why they should come to your store as opposed to going online and finding your products at a discount.

2) Promote yourself socially. There are several social web sites that can help you to become popular. Not only will you notice jumps in search engine rankings, but you'll notice that it's easy and free to communicate with your customers. Holding contests or having give-aways are great ways to get new fans. People that talk about you to their friends are immensely valuable and social sites are the easiest way to make that happen.



3) Give your customers something to talk about. People love to get a good deal. How many times have you complimented someone on their shirt, shoes, handbag, or accessories only to hear a response that tells you how they came about owning them? You rarely hear, "Oh yes, these shoes are very well made." More often you hear something along the lines of "I got the best deal on these!" People are excited to share their shopping experiences, whether they are good or bad. So, make sure that each person that enters your store has a great experience, even if they didn't buy a thing.



4) Pay attention to the little details that can make people happy to shop in your store. No one likes to dig through cramped racks or bins. They also don't want to be smashed up against other customers while they shop. Use a slatwall display system to keep the store nice and neat. When items are displayed on slatwall or slatwall panels, they are highly visible and easy to browse. You can easily maneuver slatwall accessories to accommodate different inventories at different times of the year, with very little effort. Spotlights can give texture to the space while increasing product "pop" and deterring theft. Don't blast music so loud that it gives people a headache. Make sure that your staff always exhibits unwavering customer service skills and always goes above and beyond for your customers.

INVESTMENT POLICY AND INITIATIVES - Retail Sector

FDI Policy in the Retail Sector


    India has kept the retail sector largely closed to outsiders to safeguard the livelihood of nearly 15 million small storeowners and only allows 51 per cent foreign investment in singlebrand retail with prior Government permission. FDI is also allowed in the wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike and Toyota can operate now on their own. Metro is already operating through the cash-and-carry wholesale mode.

     The policy makers continue to explore areas where FDI can be invited without hurting the interest of local retail community. Government is considering opening up of the retail trading for select sectors such as electronic goods, stationery, sports goods, and building equipment.

    Foreign direct investment (FDI) in retail space, specialized goods retailing like sports goods, electronics and stationery is also being contemplated. The Government has to walk a tightrope to ensure a `level playing field' for everyone. The policy of permitting 51 per cent FDI in single-brand product retailing has led to the entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi (luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware, cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars), into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic luxury segment to make a presence through retailing directly.

 
Business models for entry in Indian markets


    Due to the FDI restrictions the international players are looking for alternative avenues to enter the Indian markets. However FDI restrictions in retailing have not deterred prominent international players from setting up shops in India.

    In recent developments, the Australian retail giant Woolworth Ltd made in innovative entry in India’s retail space, with India’s Tata group. The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail venture joined hands with Australian retail giant Woolworths Ltd, which currently operates more than 2,000 stores in 12 different formats. While Infiniti will own and run retail operations in India, Woolworths, which has attained notable success in selling electronics and consumer goods through its Dick Smith Electronics chain, will provide technical support and strategic sourcing facilities from its global network.
 

Guide to Starting a Business Tips, New Businesses Ideas and Tips

Guides to Starting a Business

   Starting a new small business is the dream of many people ... starting that business converts your dream into reality. But there is a gap between your dream and reality that can only be filled with careful planning. As a business owner, you will need a plan to avoid pitfalls, to achieve your goals and to build a profitable business. below you will find several useful guides to help you turn your new business into a success.

   The following guides will help you to prepare a comprehensive business plan and determine if your idea is feasible, to identify questions and problems you will face in converting your idea into reality and to prepare for starting your business.

  Operating a successful small business will depend on:

a practical plan with a solid foundation;  

dedication and willingness to sacrifice to reach your goal;  

technical skills; and  

basic knowledge of management, finance, record keeping and market analysis.  

As a new owner, you will need to master these skills and techniques if your business is to be successful.


Here is a list of guides that will teach you all aspects of starting a small business.


So you are thinking of starting your own business. 
   This can have advantages and disadvantages. Starting your own business will bring a sense of independence, and a sense of accomplishment. You will be the boss, and you can't be fired, though there may be days when you would welcome it. Because you can pay yourself a salary and the profit or return on your investment will also be yours, you anticipate a good income once your business is established. You will experience a pride in ownership - such as you experience if you own your own home or your own automobile. You can derive great satisfaction from offering a product or service which is valued in the market place.


   Here are some new business ideas. By being boss you can adopt new ideas quickly. Since your enterprise undoubtedly will be a small business - at least in the beginning - you will have no large, unwieldy organization to retrain, no board to get permission from, each time you wish to try something new. If the idea doesn't work you can drop it just as quickly. This opportunity for flexibility is one of small businesses greatest assets.


   These are some of the advantages and pleasures of starting and operating your own business. Now take a look at the other side. If you have employees, you must meet a payroll week after week. You must always have money to pay creditors - the man who sells you goods or materials, the dealer who furnishes fixtures and equipment, the landlord if you rent, the mortgage holder if you are buying your place of business, the publisher running your advertisements, the tax collector, and many others. All of these must be paid before you can consider the "profits" yours.


  Among the new business ideas presented here is the notion that you must accept sole responsibility for all final decisions. A wrong judgment on your part can result in losses not only to yourself but, possibly, to your employees, creditors, and customers as well. Moreover, you must withstand, alone, adverse situations caused by circumstances frequently beyond your control, To overcome these business setbacks and keep your business profitable means long hours of hard work. It could very well not be the work you want to do. As someone else's employee you developed a skill. Now, starting a business of your own, you may expect to use that skill 40 or more hours a week. Instead, you must perform the management tasks as well. You must keep the books, analyze accounting records, sit back and do long range planning, jump and handle the expediting and, when everyone has gone home and you finally have caught up with the paper work, you may even have to sweep the floor.


   As your new business grows and you become more successful, you may not do some of these activities. As an owner-manager, however, you must - at least at first - give up the technical aspects you know and enjoy doing, and focus on the management aspects. To get your business off to a successful start, you must be a manager not an operator.

                                  "You will never be entirely your own boss"

  No matter what you choose - manufacturing, wholesaling, retailing or service business - you must always satisfy your customers. If you don't give the customers what they want, they'll go somewhere else and you'll be out of business. So every customer, or even potential customer, is your boss. Your creditors will also dictate to you, and your competitors' actions may force you to make decisions you don't want to make. National and local government agencies will insist that you meet certain standards and follow certain regulations. The one thing you can decide yourself is how you will satisfy all of these bosses.

Are You the Type to Succeed in a New Business?

   The first question you should answer after recognizing that there are two sides to the prospect of establishing your own business is "Am I the type?"
   You will be your most important employee. It is more important that you rate yourself objectively than how you rate any prospective employee. Appraise your strengths and your weaknesses. As a prospective operator of your own business, acknowledge that you are weak in certain areas and cover the deficiency by either retraining yourself or hiring someone with the necessary skill.
   Numerous studies have been made of small business managers over the years. Many look at traits and characteristics that appear common to most people who start their own businesses. Other studies focus on characteristics that seem to appear frequently in successful owner-managers.
   First, consider those characteristics that seem to distinguish the person who starts his own new business from the person who works for someone else. These studies investigated successful and unsuccessful owners, some of whom went bankrupt several times. Some were successful only after the second or third try. The characteristics they share might almost be said to predispose a person into trying to start a business. Of course, not all of these characteristics appear in every small business owner-manager, but the following seem to be most predominate.

Strong Opinions and Attitudes


   People who start a business may be members of different political parties, feel differently about religion, economics and other issues. They are like everyone else. The difference is they usually feel and express themselves more strongly. This is consistent. If you are going to risk your money and time in your own business you must have a strong feeling that you will be successful. As you will see later, these strong feelings may also cause problems.
  If you want to start your own business you probably have mixed feelings about authority. You know the manager must have authority to get things done, but you're not comfortable working under someone. This may also have been your attitude in a scholastic, family or other authority structure.
   If you want to open you own business you are likely to have a strong "Need for Achievement". This "Need for Achievement" is a psychologist's term for motivation and is usually measured by tests. It can be an important factor in success.
   The person who wouldn't think of starting a business, might call you a plunger, a gambler, a high risk taker. Yet you probably don't feel that about yourself. Studies have shown that very often the small business owner doesn't differ from anyone else in risk avoidance or aversion when measured on tests. At first thought this seems unreasonable since logic tells us that it is risky to open your own business. An Ohio State professor once explained this apparent contradiction very simply. "When a person starts and manages his own business he doesn't see risks; he sees only factors that he can control to his advantage."
   If you possess these traits to some degree or other it doesn't mean you will be successful, only that you will very likely start your own business. Some of these characteristics in excess may actually hamper you if you are not careful.
   The characteristics that appear most frequently among "successful" small business managers include drive, thinking ability, competence in human relations, communications skills and technical knowledge.Drive, as defined in the study, is composed of responsibility, vigor, initiative, persistence and health. Thinking ability consists of original, creative, critical, and analytical thinking. Competency in human relations means emotional stability, sociability, good personal relations, consideration, cheerfulness, cooperation. and tactfulness. Important communications skills include verbal comprehension, and oral and written communications. Technical knowledge is the manager's comprehension of the physical process of producing goods or services, and the ability to use the information purposefully.
   Motivation or drive has long been considered as having an important effect on performance. Psychologists now claim you can increase the motivation and the personal capacities that will improve your effectiveness and increase your chances for success. Much of the development of such achievement motivation depends on setting the right kind of goals for yourself.

What Business Should You Choose?


   Many of you have already decided what business to choose. Others may still be seeking answers from counselors. Whether you have decided or not, you will find it helpful to continue your self-evaluation.
   Begin by summarizing your background and experience. Include jobs. schooling, and hobbies. Then write down what you think you would like to do. Does what you would like to do match up with what you have done? It is helpful if your experience and training can be put to direct use in your new enterprise.
   What are your prospective needs? What are your prospective customers' needs? You may make money doing something you don't like if people will pay for it. On the other hand, you will never make money if people don t need your product or service no matter how happy you are doing it. Experts have said more companies fail because they are in the wrong business than because they are "doing business wrong".
   Read, listen to the experts, talk to business people, try to determine where growth will occur. Most new businesses can only get customers by taking them away from someone else, or by attracting new people entering the area. In other words, don't start a contracting business in a community where the population is decreasing even if you are a good contractor.
At this point, try to match your background and interests with what you see the needs to be. If they match, wonderful. Now all you have to do is discover how to offer the customers more for their money than do your competitors.
   If the needs and your background don't match, don't despair. Get training by working in a company that provides a product or service that is needed. Find a job in a well managed, successful company of the kind you are contemplating. Then absorb as much management know-how as you can while learning the technical skills.
   Education can help too. While there may be no educational requirements for starting your own business, the more schooling you have along the right lines the better equipped you should be.
(Some fields require licenses, certificates, even degrees in specific educational areas.) Certainly it is helpful if you have had courses in record keeping, sales and communication. These needn't be college or even high school courses. They can come from adult education programs and the like.
Is there a need for what you want to sell or do? Are you prepared to fill that need? Are you interested in the area? Can you learn what you need to? Will there be a continuing and growing need for your product or service?

Your Chances of Success in Starting Your Own Business (New Business Ideas)

   What are your chances of success if you go into business? New businesses are always being started. Almost as many are failing or being discontinued. A year of poor business conditions is likely to be followed by a greater than average number of failures or closings. A year of good business conditions tends to be followed by large increases in the total number of businesses. In general, the number of firms increases with increases in human population, total personal income and per capita income and since these factors have increased regularly, the total number of small businesses usually rises every year.
   This growth is not free of growing pains, however. At the same time new businesses are being born other businesses are being discontinued. Some of these discontinuances are legally business failures; other owners give up to avoid or minimize losses and are not failures in the strict sense. Still others discontinue for reasons such as the death or retirement of the proprietor, the dissolution of a partnership, or the sale of the business to a new owner.
   Younger businesses tend to discontinue first. Many do not make it through the first year. The discontinuation rate of those that survive this first year "burn-in" declines steadily until at the end of several years the rate has dropped dramatically. So, your chances of success improve the   longer you stay in business.
  Poor new business management is the largest single cause of business failure. Year after year, the lack of managerial experience and aptitude has accounted for around 90 percent of all failures analyzed by Dun & Bradstreet, Inc.
   Many factors may adversely affect individual firms over which owners have little control. In such cases, the astute manager can often soften the blow or, sometimes, change adversity into an asset. Examples of factors over which the owner has little control are overall poor business conditions, relocations of highways, sudden style changes, the replacement of existing products by new ones, and local labor situations. While these factors may cause some businesses to close, they may represent opportunities for others. A local market place may decline in importance at the same time new shopping centers are developing. Sudden changes in style or the replacement of existing products may bring trouble to certain businesses but open doors for new ones. Adverse employment situations in some areas may be offset by favorable situations in others. Ingenuity in taking advantage of changing consumer desires and technological improvements will always be rewarded.
   In the final analysis, it is up to you. Will your management be competent? Will you be able to judge, and then satisfy, your customers' wants? Can you do this accurately and quickly enough to more than compensate for risks due to factors beyond your control? Such accomplishment requires expert management.


Your Return on Investment


   Will the rate of return on the money you invest in your business be greater than the rate you could receive if you invested your money elsewhere? While your decision to go into business for yourself may not depend entirely upon this, it is a factor which should interest you. Too frequently people invest money in their own businesses under the misapprehension that the financial return will be far greater than the return from other investments. Investigation of the average annual returns in the line of business in which you are interested may be worthy of your time.
   Your decision to go into business may not depend entirely on financial rewards. The size of the potential return on your investment may be overshadowed by your desire for independence, the chance to do the type of work you would like to do, the opportunity to live in the part of the country or city you prefer, or the feeling that you can be more useful to the community than you would be if you continued working for someone else. Do not overlook such intangible considerations. But remember, you cannot keep your own business open unless you receive an adequate financial return on your investment.

Retail :- Implementing EAN/UPC Barcodes on retail products

Implementing EAN/UPC Barcodes on retail products

The following steps needs to be followed for implementation of barcoding on retail products (Stock Keeping Units)






Step 1. Registration with EAN-India:



Companies need to get registered with EAN-India to get a unique company prefix. This unique company prefix identifies the company. The number of digits in company prefix depends on the number of product types (or SKU’s) you have indicated in the EAN/UPC application form submitted to EAN India.





Step 2. Read the Implementation Guide:



It is suggested that you read the implementation guide provided to you by EAN India at the time of registration (which may be in the form of CD/Book). Implementation guide provides introduction about bar coding, EAN.UCC standards, its uses and how to proceed for the implementation of the same.

Step 3. Product code allocation:



Use the company prefix allotted to you on registration, allot product code to all your product types. The product code that you will give to your product types will comprise of three parts:



a. Company prefix: This is the company prefix allotted to you on registration by EAN India.



b. Item Id: The next few digits should be used by a company to allocate Item Id’s to each of its products for identification. For example for the products



Gulab Jamun Mix 100gms - Item Id may be 00001

Gulab Jamun Mix 200gms carton - Item Id may be 00002

Idli Mix 200gms - Item Id may be 00003



Different Item Id’s should be allocated to products for different packaging sizes, different colors, different variants, and different constituents.

Please note the length of the Item Id depends on length of company prefix allocated.



c. Check Digit: The last digit is the check digit, which is a number calculated according to the algorithm called modulo 10. Check digit calculators are available on the following page on EAN India website http://www.eanindia.com/SERV/checkdgt.htm and in the implementation CD provided.



An example has been given below:



8 9 0 4 0 0 0 X X X X X C has been allotted to you. 8 9 0 4 0 0 0 is your prefix which will be common for all the product codes. The Item Id’s given for products and check digits have been given below:





Product Company Prefix Item Id allocated Check digit using calculator Product Number

Gulab Jamun Mix 100 gms 8904000 00001 0 8904000000010

Gulab Jamun Mix 200 gms 8904000 00002 7 8904000000027

Idli Mix 200gms 8904000 00003 4 8904000000034





Step 4. Entry of product codes into www.eanindia.org:



The product codes allocated in Step 3 need to be entered into the website www.eanindia.org. This will give you two benefits:

1) Approval of the allocated product codes can be done online by EAN India

2) Your company and product data will become a part of a worldwide buyer-seller database, which will give a lot of visibility to your products in the national and international markets.



Steps to enter product details into www.eanindia.org :



a. Log in to www.eanindia.org. In the “User Name” field at the bottom of the screen, enter your EAN/UPC Company prefix. The password has been communicated in the letter sent to you at time of registration. (You are advised to change the default password immediately by clicking on “Change Password “)

b. Choose option “Add / Modify Products” on the left side of the screen. You can now access “Product management ”. You can now click on “Add” button and enter details of each product including Segment, Product category, Sub category, GTIN (This is the number allocated in Step 3, Product Name, Height, Width, Length, Weight/ Volume of product, Customs Harmonized code if relevant to your product.

c. Click “Submit” - On submitting, product information will come for product approval to EAN-India.

d. The above steps (a – c) need to be repeated for each of your product types.

e. The Products after approval from EAN-India will be available for various search features on the site. To check on your status of approval go for Steps a & b click “Approval Status summary” after login. This gives you a list of approved and not approved products of your company.



EAN India has launched a new enhanced feature to enable hosting of product images. To view details of the service please click on the following URL: http://www.eanindia.org/Ean/Ean_Letter.html

Step 5. Barcode Printing:

Now that the complete numbers for all the products have been allotted to all your products. The next step would be to get these numbers generated into bar-codes for incorporation as a part of the product packaging design or the barcodes be printed as stickers to be pasted on the package.



Option 1: Modifying artwork to incorporate barcode: A one-time modification to the artwork will be required. The cost involved in this step will be low and organizations involved in generating your packaging (advertising agency or printer) are aware of how to incorporate barcode on product packaging. In case of any clarifications required they may contact the EAN India office.



Option 2: Barcodes printed as stickers to be pasted on products: You can get stickers made by a bar-code solution provider or you may procure a barcode printer from solution providers and generate stickers on your own. This decision will depend on the number of stickers you generate on an annual basis. An indicative list of bar-code solution providers is provided on www.eanindia.com website



Step 6. Barcode Verification:



The next step after generation of bar codes is verification of bar code by EAN India. Barcode verification of products helps a company to access the scannability and quality of barcode on its product packaging. In the verification exercise “Verifier” equipment is used which checks the following barcode size, barcode printing quality, barwidth gain, structure of barcode, correct margins, correct color combinations and various other features and gives a detailed report. The facility is available at Rs.150 per product and you will need to send your sample with packaging to EAN India office along with the amount as DD/Payorder. The modifications suggested in the Verification report (if any) will need to be carried out in your artwork. It is recommended that before going in for mass printing of product packaging, get the barcodes verified by EAN India.

T - Shirts Industry - India - VI - Final Blog

Selections of Tees on latest trends give you a superior look
Wearing a T-shirt of your choice gives your looks more attractive but what type of T-shirt you select gives your looks better than others. Your personality depends on the selection of right type of T-shirts like size differences, fabric, color, printing process etc and depends on the latest trends too. Selections of Tees on latest trends give you a better look and enhance your personality.

Selection of Fabric
T-shirts can be made from many materials and fabric decides many features about a T-shirt, such as how well a T-shirt will give its shape after wearing and washing. And it also depends for what purpose T-shirts you are going to wear, i.e. the selection of soft and flexible or durable heavy fabric or non- shrinkable material like polyester/cotton blends, selection of fiber contents etc. Select the fabric of T-shirt or its material according to your purpose.

Colour and Design and Garment distortion
Different brands provide different color choices and designs. To avoid color fading, choose appropriate and long lasting color shade T-shirts to your wearing purpose. Over and over again a brand new T-shirt leaves the washer and dryer in an unsatisfactory condition. All T-shirts will shrink to some extent when they are first washed. Shrinking is become more problem while it shrinking continually by washing. To avoid this problem select cotton polyester blend T-shirts, this will shrink less.

Differences of sizes
The selection of T-shirts is depends on the size of that T-shirt you wear and ultimately it affects on your personality. Sizing varies vividly from brand to brand. Not only does the general size change drastically, but the length and width proportions differ as well. Your figure and style will decide what brand will give you the right fit. Check out sizing of T-shirts.


Pilling
On the surface of the garment sometimes pilling is appeared. To reduce this, purchase no-pill or low-pill materialized T-shirt.

Neckband


The neckband should choose a knit to stretch over the head, then reshape in its original. A firm knit ribbing is often utilized. A nylon blend ribbing provides added reinforcement.

Care Tags

Most T-shirts are generally provided with care label, with suggestion to required garment care. Some T-shirts can be cleaned in hot or warm water and tumble dried; others may need more extraordinary care such as machine washing in cold water and line drying or lying flat to dry. T-shirts with transfer prints and decorated, generally require special care, such as turning the T-shirt wrong side out before laundering. Keep in mind to maintain garment appearance; you should have to follow care recommendations.

Latest trend


And at the last but not the least purchase T-shirts to suits your mood , the purpose of wearing and the latest trends of designs, color combination etc in the market.

Allow FDI in multi-brand retail: Ministry

Dear All please send  your comment  / feedback on following article published in Times of India Today....

 The industry ministry on Wednesday made out a strong case for opening up the multi-brand retail sector for foreign direct investment (FDI), stating that the move will help both consumers and producers, particularly of agricultural items.
"The objective will be to enhance operational efficiency of back-end infrastructure in the retail sector, reduce wastage in the agriculture sector, enhance benefit to producers... and benefit consumers through greater consumption," minister of state for commerce and industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.
The department of industrial policy and promotion had floated a discussion paper — FDI in Multi-Brand Retail Trading — and invited comments on it. It has received suggestions from a large number of stakeholders, including global retail chains like Carrefour. However, Scindia did not indicate how soon a decision on the issue will be taken.
"It is expected that the views and suggestions received in response to this discussion paper will enable the government to take an appropriate policy decision at the appropriate time," he said. The issue of FDI in the sector is considered politically sensitive, as over 90% of India's retail trade is in the unorganised sector — with kirana shops employing as many as 33 million people.
Currently, the government allows 51% FDI in single brand retail and 100% FDI in wholesale cash-and-carry trade. However, FDI is not permitted in multi-brand retail.

Ref :- Time of India

T - Shirts Industry - India - V

The future of T-shirt Industry in India

Movies, film stars and celebrities play an important role in suggesting the youths to wear stylish T-shirts. Sometimes people become aware of a new collection only after the film stars or celebrities wear them in movies. Film stars make a fashion statement by wearing their words on T-shirt, while other celebrities make their statements a bit in a different way or in their choosy styles. Even Sushmita Sen's sari-look in 'Main Hoon Na' movie liked by people but personally she prefers to wear jeans and a T-shirt.


T-shirts are also increasingly being used in Indian corporate houses to motivate employees, to build brand loyalty in the market as well as to display the company's attitude by displaying its motto or slogan in front of stakeholders. Today in major corporate houses promotional T-shirts became very popular as corporate gifts and more and more corporate or promotional T-shirts are demanding in the market, manufacturers are also manufacturing best quality designer-type pieces with buyers' logos, institutional advertising, slogans and emblems on T-shirts as well as for the end users. During the last cricket world cup, one of the Net portals sold some 60,000 promotional T-shirts in 60 days.

After WTO textile quotas were removed in January, traders of T-shirts in India observed export demand growth by 25 percent in the first quarter of this year in against the same period of 2004.

The export of ladies' blouses is up 26% to 29 million euros, jerseys and pullovers are up 12%, and men's T-shirts are up 37%. The collective export of blouses, skirts and T-shirts were about Rs 9,000 crore last year. The India's accomplishment has been amazing in four categories (as below) which had been eliminated by quota and it has been capable to maximize the use of quota levels, these cover T-shirts (Cat-4), ladies blouse (Cat-7), gents shirts (Cat-8) and ladies dresses (Cat-26). Amid the above categories, T-shirts has a bigger share in the top 10 categories trapping around 8.2 per cent of the total MFA imports of EU.

To satisfy the increased demand and seize market opportunities, many manufacturers and traders are adding new production lines and even building new factories. Many companies are improving their technology too. Main production centers of T-shirts in India are Tirupur, Mumbai, Kolkata, Delhi and Ludhiana.

Recently Tetriberica, a Portugal based apparel manufacturing company has opened an India office at Tirupur with the aim of providing sportswear and T-shirts in Indian market, and many international companies are looking towards the growth by targeting the Indian market. A new production unit in Gujarat has been establishing by T.T. Ltd for T-shirt manufacturing. Pytex Hosiery Mills is also constructing a new factory in Haryana to increase its production capacity. And many Indian T-shirt manufacturers are improving their production facilities and developing their capability among the challenge of stiff competition passed on by the lifting of quotas.

T - Shirts Industry - India - IV

Demand: trendy and flourishing T-shirt market of India


The branding game
 
In India T-shirts industries have raised by 27 percent followed by blouses/shirts and trousers. Recent market report survey says this segment of clothing in India accounts for 4.22 per cent of the Indian apparel market with sales of Rs. 2,419 crores, this includes T-shirts for women and have become trendy.


According to KSA Techno Park, Nike is the market leader, followed by Reebok in three of the income segments, except for Adidas in the Rs. 15,000 to Rs. 25,000 income segment, and Nike has an 8.3 percent share.

The income analysis of women explains that Reebok is the top women's "active wear" T-shirt in the lower income segment, Nike in the middle income segment and Adidas leads the highest income bracket.

Duke is the most popular brand in clothing of the lowest income segment of consumers; it is second in the next higher income slab to Lee and third in the Rs. 50,001 to Rs. 1 lakh income group. The top five in the highest income group is considered Wills Sports followed by Lacoste, Allen Solly, Lee and Classic Polo in order-wise.

Benetton is the second most popular brand in the segment of income of Rs. 50,001 to Rs. 1 lakh and has received fifth rank in the Rs. 15,000 to Rs. 25,000 segment. In the lowest income bracket Peter England is among the top five favorites and Crocodile gets similar approval in the Rs. 25,000 to Rs. 50,000 income segment. In the next higher income segment, Allen Solly and ColorPlus are considering.

The report says, there are two sub-categories in T-shirts market, one is active wear and second is casual wear. Generally, people are likely to wear active wear brands for their morning jogging or routine work while the casual T-shirts used for the purpose of informal clothing. Active wear clothing tends to have a high recall because of many international brands have become more or less generic with active wear.

T - Shirts Industry - India - III

The Cool 'n' Trendy T-shirts becoming hot in India

Demand: trendy and flourishing T-shirt market of India

A peep inside casual wear stores here suggests that T-shirts have a presence that cannot be ignored and also have an ally even among the not-so-fashion-conscious people here.


A splash of colours, a few funky words do a mighty bit towards endearing them to any crowd, young or old. T-shirts now serve as the easiest canvass for a piece of art ranging from a Superman to political slogans. The scope of playing around with words and wearing it on you is tremendous.

There is availability of the standard, fashionable and designable distinctive varieties of T-shirts in the Indian market. There is significantly more demand of embroidery, Jewellery and custom designed T-shirts too.

The current trends of T-shirts also include flocking T-shirts where "Flocking" - is a process by which vat-dyed fibers are tied to the fabric with a heat transfer process, and are becoming demanding more and more. These T-shirt are distinctive in terms of fit, feel and styling. There are many T-shirts manufacturers are manufacturing light weight T-shirts to satisfy the needs of the light weight T-shirts consumers.

In addition to manufacturers many designers have geared up their styles of making T-shirts in the form of arts like jewelled designed T-shirts, crystal designed T-shirts, embodied T-shirts, and Digital Jewelled designed T-shirts etc. Recently, National Institute of Fashion Technology graduate Mr. Shantanu of Kolkata (India) designed jewelled T-shirts with the theme of God Kirshna's character. These kind of Jewelled and embroiled T-shirts are hot in metro cities of India. This fashion trends are affecting more and more to the young and the trendy people. Digitally printed jewelled T-shirts bearing opulent Mughal theme with attitude slogans are still popular among youths.

Currently, In India, fashion is considered as a serious business and the market demand will be booming. Tight T-shirt with mini skirts or jeans pants is hot trend in Indian youngsters. Most of young ladies are accepting to be an ultra-sexy by wearing mini skirts with tight and short T-shirts or feminine long skirts with off shouldered sexy T-shirts. India experiences the West, that's the big trend. The slim fit, fluorescent and fast color T-shirts were sold out more during last Diwali.