Formalwear attracts exporters

Sapna Dogra

The Indian readymade garment (RMG) sector is moving towards value-added apparel, and corporate wear is one such segment which can command good margins. However, the Indian RMG exporters are still to gear up to move into this segment, which has immense market potential.

According to industry experts, the Indian industry has not got a strong foothold in this segment as yet. "The main reason could be that this is a high value segment, and India is known as a supplier of low and medium priced garments, and more of casual wear, than formal wear. The fashion element is also very high in this," they state.

India does export coats and jackets, but the volumes are not too high.

Mukesh Garments exports formal wear to the US and UK. According to Mr Mukesh Saxena, "Though it all depends on orders, the minimum number of pieces made at Mukesh Garments is about 8,000-10,000 pieces per month. Fabric used is cotton/viscose. This season the popular colours are turquoise, pink, black/white, carrot, etc. The company as of now has no plans to increase capacities."

Some players have only just forayed into the manufacturing of formalwear. One such company is Oak Apparels, which is into exporting formalwear and corporate wear to France. According to Mr Rakesh Mehta, managing director, "Recently we sent the first shipment to France. The fabric used for these garments is very fine high quality silk and chiffon."

IDI Exporters' exports formalwear mainly to Europe and little bit to the US. Fabric used is mainly silk, viscose, chiffon, linen, etc. Since they export only high fashion formal wear to select buyers the number of pieces is about 1,000 per month, informs Ms Indira Dhar, proprietor and adds that designs are simple and depends on the need of buyers. The company is all set to expand further and will go in for more designers, more sampling and up-market work.

Design Trend exports up-market, high fashion, semi-formalwear mainly to the US and Europe. They make about 20,000 pieces per month. Fabric used is silk, which is imported from China, informs Ms Madhu Chawla, director. "However," she adds, "for cotton outfits sourcing is done from within the country." According to Ms Chawla, "Fashion inputs that go into the garments are embroidered, textured fabrics. Colours in vogue are blue and green." She says the company as of now has no plans for expansion.

Super Fashions exports formalwear for both men and women to the US only. Per month production varies but usually it is in the range of 25,000-50,000 pieces per month. According to Mr Harsh Juneja, senior merchandiser, "We use embellishments like beads, laces and sequins, etc." The company is planning to expand by adding new products, new designs, machines, etc.

India commands a sizeable share of the US market for men's woollen coats. India's share stands at 31 per cent, as against China's share of just three per cent. Moreover, India's exports to the US in this category have been experiencing a growth of almost 28 per cent, as against a fall in China's exports of as much as 38 per cent. Even as Bangladesh is a comparatively small exporter in this product, its exports to the US have been increasing steadily, and during March 2005, exports went up 700 per cent compared to March 2004.

As against this, in formal wear, China has experienced the highest growth in wool suits for men, of 228 per cent, cornering a 6.29 per cent share of the US market. As against this, India's exports have fallen by around 10 per cent. The country's share in this product in the US market is 5.42 per cent. Bangladesh has also experienced a growth of almost 120 per cent, while Romania's growth has been 2.047.68 per cent, even as both these countries have just over one per cent of the US market share. China again enjoys a 45.60 per cent share of the US market in cotton coats for men, and has recorded a growth of around 45 per cent in its exports to the US for this product. India's export growth has also been high at 131.36 per cent, even as it enjoys just around a five per cent market share in the US.