APPAREL INDUSTRY
India is the world’s second largest producer of textiles and garments after China. It is the world’s third largest producer of cotton—after China and the USA—and the second largest cotton consumer after China. The fundamental strength of this industry flows from its strong production base of wide range of fibres / yarns from natural fibers like cotton, jute, silk and wool to synthetic /man-made fibers like polyester, viscose, nylon and acrylic. The textile and garment industry in India is one of the oldest manufacturing sectors in the country and is currently its largest. The textile and garment industry fulfils a pivotal role in the Indian economy and the largest source of foreign exchange earnings for India. This industry accounts for 4 percent of the gross domestic product (GDP), 20 percent of industrial output, and slightly more than 30 percent of export earnings. The textile and apparel industry employs about 38 million people, making it the largest source of industrial employment in India. The total textile exports during 2011-12(P) were valued at Rs 159570.55 crore as against Rs 126281.18 crore during the corresponding period of financial year 2010-11, registering an increase of 26.36 percent in rupee terms. • The, US, China, Japan and India are the biggest markets for apparel, but apparel production is primarily concentrated in China, India, Bangladesh, Vietnam and Turkey. The growth of garment industry takes place in terms of technology adoption. The Indian apparel industry, which took off in the mid 60’s, is worth around $15 billion now. The clothing sector is both a labour-intensive, low wage industry and a dynamic, innovative sector, depending on which market segments one focuses upon. In the high-quality fashion market, the industry is characterized by modern technology, relatively well-paid workers and designers and a high degree of flexibility. The basic production technology of the apparel industry has not changed much over the past century, and is characterized by the progressive bundle system. Work is organized such that each worker is specialized in one or a few operations. There are several well-known textile and garment firms that cater to both international brands as well as domestic retail brands. They include Gokaldas Exports, the largest garment exporter from India, Madura Garments, which is now part of the Aditya Birla Nuvo Group, Himatsingka Seide Ltd (an integrated home textiles company), Indus League Clothing Ltd, Page Industries, and Indus Fila, which recently got listed on the stock markets. Also have firms which provide all services like: For E.g.- Bangalore-based Munch Design Worx has been providing design solutions to apparel, accessories and textile industries besides trend forecasting, visual merchandising, accessories and package design. It designs everything for the companies from the colour and pattern of the shirt or trousers to the way their outlets look. Munch cater to global and domestic clients such as Levi's Workers, John Players, Dockers, Benetton, Invista, Precot, Tom Tailor, Daks and Westside.
Apparel is an ideal industry for examining the dynamics of buyer-driven value chains. Buyer-driven value chains are those in which large retailers, marketers and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in developing countries. This pattern of trade-led industrialization has become common in labour-intensive, consumer-goods industries such as garments, footwear, toys, handicrafts and consumer electronics. The relative ease of setting up clothing companies, coupled with the prevalence of developed-country protectionism in this sector, has led to an unparalleled diversity of garment exporters in the third world. Large retailers or marketers that order the goods supply the specifications. Firms that fit the buyer-driven model, including retailers like Wal-Mart, Sears and JC Penney, athletic footwear companies like Nike and Reebok, and fashion-oriented apparel companies like, Gap and The Limited Inc., generally design and/or market—but do not make—the branded products they order. They are “manufacturers without factories”, with the physical production of goods separated from the design and marketing.
Changing Trends in the Consumption Pattern in India: The consumer wardrobe has changed from only ‘need-based clothing’ to ‘occasion specific dressing’ and is gradually becoming more ‘detail oriented’ Women shoppers are gaining more importance with their higher spending power and requirement of specific clothing for different purposes The growth of apparel e-tailing is fueled by the changing lifestyles of domestic consumers and increasing penetration of technology
Changing Classification of Consumer’s Wardrobe
(i) Apparel Export Promotion Council (AEPC) (ii) The Cotton Textiles Export Promotion Council (Texprocil) & The Powerloom Development Export Promotion Council (PDEXCIL) (iii) The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) (iv) Export Promotion Council for Handicrafts (EPCH) (v) Handloom Export Promotion Council (HEPC) (vi) Wool & Woollens Export Promotion Council (W&WEPC) (vii) National Jute Board (NJB) (viii) Carpet Export Promotion Council (CEPC) (ix) Indian Silk Export Promotion Council (ISEPC)
The supply chain in the textile and clothing sector
The apparel value chain is organized around five main parts:
raw material supply including: natural and synthetic fibres provision of components, such as the yarns and fabrics manufactured by textile companies production networks made up of garment factories, including their domestic and overseas subcontractors export channels established by trade intermediaries marketing networks at the retail level
Yarn & fabric Production –
Apparel firms sources fabric from – Mills, converters.
Mill- is company that owns textile machinery & makes yarns & Fabrics.
Converters- are Finishers Buy greige goods from mill apply a variety of finishes Sell the finished goods or provide the dyeing 7 printing Can also buy the finished fabrics More flexibility to respond to the market & fashion changes than mill
Fabrics are categorized as Fancies & Staple.
Fancies- Special & fashion fabrics Are usually made in short runs.
Staple- are made continuously, year after year with little or no change in construction or finish.
Responsibilities of Material Buyers:
Provide an uninterrupted flow of material & services necessary for maximizing the efficiency of the manufacturing unit.
Buy materials that are suitable to the purpose at the best possible prices.
Minimize inventory investment.
Minimize inventory looses caused by theft & unusual, damaged or obsolete materials.
Develop good vendor relationships & sound, continuing supplier relationship.
Develop reliable alternative sources of supply.
Develop personnel & execute policies & procedures that provide materials at the lowest possible prices.
GARMENT MANUFACTURING PROCESS OVERVIEW
Departments Involved in the clothing construction Sample section Cutting section Sewing Section Pressing Section Packaging section
Sample section: The pattern master or the designer is the head of this section.
The main responsibility-to construct the samples for the buyer’s approval.
If industry is Export oriented: