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Research 2010-04-15

Attire spells franchise success

A considerable growth of apparel retail has been observed during the past few years. As per a study conducted by The Franchising World magazine recently, out of Top 100 franchise businesses total 10 brands belong to apparel sector. Glance down to know abo

By Sub Editor
Attire spells franchise success

‘Clothes maketh a man’ is a famous saying that engulfs the essence of this article. With franchising becoming a popular concept, the national and international apparel brands too have taken this route to expand. The Indian apparel industry plays a critical role in the economic development of the country with its contribution to industrial output, export earnings of the country and the generation of employment. In its anniversary issue, The Franchising World (TFW) magazine has come up with the Top 100 franchises in India. According to the survey conducted, 10 franchises belonged to the apparel industry. Find below the reasons for its growth in India.

Factors for growth in apparel sector

The apparel industry had undergone a huge transformation from a small industry to the giant sector. Earlier, it was considered a luxury to buy branded wear but now it has become a lifestyle statement to acquire a branded fashionable wear. In the last few years, the Indian consumers have become more fashion and brand conscious. Moreover, the rise in the disposable income among the middle class has also led to its growth. The increase in the working women is another factor responsible for its growth. As women, working in different sectors requires  large wardrobe catering to their different needs. Moreover, with three fourth of the population consisting of youth there is no doubt that the apparel sector will be taking giant steps in the future as well. Looking at the success of major apparel franchisors, more and more players are entering the field. Their entrance adds an impetus to the popularity of the branded wear. These may be the main factors responsible for the growth in the apparel industry.

Major players and their categories

According to the TFW top 100 survey, the franchisors were divided into four main categories of Established, Emerging, Debutant, and International players. Let us have a look at the success of branded wear in these categories.

Established brands: Experienced franchisors with an experience for a longer period of time are included in this category. Chhabra 555 with more than 50 years of experience in women wear is among the established players. It has its origin in small shop but has grown into a premiere conglomerate of women clothing. Raymond, a famous textile and apparel men’s wear having 50 years of franchise experience with more than 500 units pan India is included in this section. Planet Fashion, retail initiative of Madura Garments, one of the leading apparel companies in India, is also included. It presently has 87 units with a majority of franchised outlets in 50 cities across India. Another renowned player, Spykar, dealing in denim wear, semi casual wear for men and women also occupies a position in this category. It presently boasts of 313 units across 140 cities and towns.

Emerging brands: These are the new and vibrant franchisors with less experience in franchising but have displayed a lot of success in the beginning only. Ashika Fashionwear, an ethnic women wear brand having 30 units in its initial stages is included in the category. The brand further plans to come up with 200 outlets in the next two years. Another player in this is Hasbro, a men’s apparel brand with 50 units (22 franchised stores) having plans of spreading its footprints pan India through the franchise route.

Debutant brands: These are the new arrivals in the franchising arena with less experience but with a lot of promise and ability. Kathak Fashion Mills, which initiated franchising in 2010 is a ladies ethnic wear brand. It plans to have atleast 50 franchisees by the end of this year. Latin Quarters, a fashion apparel brand started franchising in 2009 and at present has outlets in eight cities across the country. The brand plans to include sleep wear, footwear and eyewear to increase its scope in the Indian markets.

International brands: These are the international franchisors who had taken the franchise route to enter the Indian markets. International apparel brands hold an important place in the Indian apparel industry as these may be responsible for the growing trend of western wear especially among the youth. Levi’s, a denim wear brand is spread across various countries across the world. It presently has 180 franchise stores pan India. Levi’s jeans are the most successful and widely recogonised clothing products in the history of apparels. A sportswear apparel and footwear brand, adidas also occupies an important position in the Indian markets. It has 600 exclusive stores across 170 cities in India.

Having a look at all the above apparel brands and their success so far it can be easily said that apparel Indian industry has a long way to go. If you also are interested in having a retail outlet and have a passion for fashion wear then this industry holds a bright future for you as a franchisee.

Uday : 17, Feb 2010 at 01:51 AM
Interesting concept! Franchising is obviously a good option for expansion but forsaking your family business should not be followed much. However the article is well-written!
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