“Jeanswear is high in demand with market capitalisation increasing from Rs 2,605 crore in 2006 to Rs 3,110 crore in 2007. This shows a growth of 19.4 per cent in value terms in 2007 as compared to a slightly lower 17 per cent growth in 2006,” says India Apparel Report by Images F&R Research, which was published in recently released Images Yearbook 2008.
The research further reads that volumes in jeanswear also grew by 17.5 per cent in 2007, from 12.5 per cent in 2006. What is worth noting in this product category is that both volume and value growth in the mass-market low range offerings are almost at par with each other. This indicates a tremendous volume growth at the entry level, with consumers in India’s tier-II and III towns and even rural hubs taking to this apparel category.
Jeanswear is now evolving as a unique apparel category where consumer demand exists across all ranges – right from the low to the super premium range, a category that combines a high fashion quotient with durability and low-maintenance costs.
Market performances indicate high potential across all ranges of Jeanswear and there is every reason for new players to enter this product category and take away a larger slice of the market from unbranded players. An all-time youth attire staple in India, now designer denims along with much cheaper fake labels selling on high streets are all equally in demand.
Unlike most other apparel categories, volumes here have been strongly pumped up over two years – from mere six per cent in 2005 to 17.5 per cent growth in 2007. Value, on the other hand, has slightly appreciated over the same period – from 16 per cent to 19.4 per cent.
The figures indicate that volumes are driving growth in this category, where there is no scope for price rise. Market performance therefore indicates high potential in all ranges of denimwear and with a caution that brands need to specialise in one of the two broad ranges – either for the super premium (where value growth is maximum at 33.5 per cent) or the mass consumer segment to retain a distinct brand identity and image.