Utilisation of fabrics for the Indian apparel and clothing market is expected to reach 48 million by the year 2021.
Playing an important role in the Indian economy, The Indian Textile Industry is contributing around 4% to the country’s GDP, employing around 105 million people. With a strong population base, the domestic apparel market is expected to provide opportunities to the franchisors. With the Gen Y population joining the workforce, their increased spending power is resulting in the increased demand for domestic textile and apparel market.
Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI) says, “India’s domestic apparel market was estimated at $67 billion in 2017 which had grown at a compounded annual growth rate (CAGR) of 10 percent since 2005. Owing to strong fundamentals, India’s domestic apparel market size is now expected to grow at 11-12 percent CAGR and reach about $160 billion by 2025.”
Franchisors could invest in this sector as the availability of low cost and skilled manpower provides a competitive advantage to industry. With the availability of various cotton and synthetic fibers, franchisors could be seen investing in the industry, using the raw materials for enhancing their business.
Indian textile industry is grabbing the market share of China as they have lost competitive advantages of low cost of production in the last few months. Seeing the transformation, the franchising industry is landing into the sector more, offering innovative ideas and products, nationally and internationally both. Franchisors believe that it is the right time to enter the market to create a huge impact.
The apparel franchising industry benefits as India enjoys several advantages when it comes to textile and apparel manufacturing. India, being the largest cotton producer and second largest of polyester, franchisors are believed to utilize the stats in their favor. In addition, large existing manufacturing set-ups create more curiosity among the franchisors, knowing the demand and opportunities of this industry.