Allen Solly - Entering the Indian Women's Western Wear Market
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Case Details:
Case Code : MKTG042
Case Length : 11 Pages
Period : 2002
Pub Date : 2002
Teaching Note :Not Available
Organization : Madura Garments
Industry : Readymade Garments
Countries : India
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Wooing Indian Women Contd...
Most of the national level branded players were present only in the men's wear segment. In 2001, the women's wear industry was estimated to be around Rs 161 billion4 with a growth rate of 9%, of which the women's western wear market was estimated to be growing at 15-20% per annum, according to a study conducted by KSA-Technopak.5
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Some analysts felt that these figures did not justify the pace with which companies were entering the market. And, more importantly, many analysts felt that the business did not hold too much promise, because Indian women would not be comfortable giving up their traditional attire.
Around 95% of working women in India wore salwar suits (Refer Exhibit II) to work, and perhaps not many of them would be willing to shift to Western corporate wear. Madura, however, justified its move, citing studies, which revealed that though Indian women liked to experiment with Western wear, they did not have access to styles that suited them.
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The company was confident that it would be able to make a success of the venture despite the increasing number of players and the threat of much cheaper unorganized sector products.
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Background Note
The Indian apparel industry was dominated by the unorganized sector, with market share of over 97%. The industry was divided into two segments, ready-to-wear and tailormade. The industry was also divided on demographic (men, women and kids) and geographic (each state having its own dressing style) parameters. Over the decades, the developments in men's and women's wear segments showed markedly different trends. While traditionally Indian men preferred to get their clothes stitched by their trusted tailors, by the early-1990s, ready-to-wear clothes had become extremely popular. |
However, most Indian women traditionally wore sarees and other ethnic wear (Refer Exhibit II). Though Western wear entered the country through Hindi movies in the 1950s itself, it remained limited only to teenage girls even by the early 1980s. This was so because after marriage Indian women were generally expected to wear sarees...
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