INDIAS MARKET SHARE

BACKGROUND
India is the one of the worlds largest producer
of textile and garments. Abundant availability
of raw material such as cotton, wool, silk and
jute as well as the skilled workforce have
made the country a sourcing hub. It is the
worlds second largest producer of textiles and
garments. The Indian textiles industry
accounts for about 24% of worlds spindle
capacity and 8% of global rotor capacity. The
potential size of Indian textile and apparel
industry is expected to reach US $ 223 billion
by 2021.
The textiles industry has made a major
contribution to the national economy in terms
of direct and indirect employment generation
and net foreign exchange earnings. The sector
contributes about 14% to industrial
production, 4% to the gross domestic product
(GDP), and 27% to the country's foreign
exchange inflows. It provides direct
employment to over 45 million people. The
textiles sector is the second largest provider of
employment after agriculture. Thus, the
growth and all round development of this
industry has a direct bearing on the
improvement of India's economy.
India has overtaken Italy, Germany and
Bangladesh to emerge as the world's second
largest textile exporter. India's share in Global
Textiles increased by 17.5% in 2013 compared
to 2012. Textiles exports from India will touch
US$ 300 billion by the year 2024-25.
In 2012, apparel had a share of 69 per cent of
the overall market; textiles contributed the
remaining 31 per cent.

India's Textile Market

Share ($ billion)

31%

69%

Textile
Apparel

MARKET SIZE
The Indian textiles industry,
currently estimated at around
US $108 billion, is expected
to reach US $ 141 billion by
2021. The industry is the
second largest employer after
agriculture, providing direct
employment

to

over

45

million and 60 million people

indirectly. The Indian Textile
Industry

contributes

approximately 5% to GDP,
and 14% to overall Index of
Industrial Production (IIP).
The Indian textile industry
has the potential to grow fivefold over the next ten years to
touch US$ 500 billion mark
on the back of growing
demand for polyester fabric.
The US$ 500 billion market
figure consists of domestic
sales of US$ 315 billion and
exports of US$ 185 billion.
The current industry size
comprises domestic market of
US$ 68 billion and exports of
US$ 40 billion.

Apparel exports from India have registered a growth of 17.6% in the period April September 2014 over the same period in the previous financial year.

GLOBAL VS DOMESTIC SCENERIO

The global trade of textile and garments was approximately $781 billion in 2013. This is
almost 4.6 per cent of the trade of all commodities, which is estimated at approximately
$17 trillion. From 2008 to 2013, the global textile and garment trade has grown at a
CAGR of 4 per cent.
The current global garment market is estimated at approximately $1.15 trillion which
form nearly 1.8 per cent of the world GDP. Almost 75% of this market is concentrated in
Europe, USA, China and Japan. An analysis of per capita spend on garment in various
countries shows a significant difference between numbers in developed and developing
economies. Within the major markets, India has the lowest per capita spend on garment
($37) which is only 3 per cent of the highest one viz. Australia ($1,131).
The top five textile and garment exporting nations are:

China
India
Italy
Germany
Turkey

China is the single largest exporter with 39 per cent share while India stood at a distant
second place with 5 per cent share.
The top five textile and garment importing nations are US, China, Germany, Japan and
United Kingdom. USA is the largest importer with a share of 17 per cent of the total global
trade. The Indian textile and garment industry has an important presence in the country's
economy through its contribution to industrial output, employment generation, and the export
earnings.
It contributes almost 5% to the $ 1.8 trillion Indian economy whereas its share in stands at a
significant 13 per cent. India is the second largest exporter of textile and garment goods with

a global trade share of approximately 5 per cent.

The Indian domestic consumption of textile and garment is valued at US$ 63 billion in 2013.
Within this, garment retail has the highest share of 73 per cent contributing $46 billion,
technical textile contributes $13 billion with a share of 21 per cent and home textiles
contribute $4 billion with a 6 per cent share.
In 2013, India became second largest exporter of textile & garment in the world surpassing
Italy and Germany. India exported textile and garment goods worth $40 billion, with a share
of about 5 per cent of global textile and garment trade. In terms of value, Indian textile and
garment exports is dominated by garment category which has a majority share of 40 per cent
followed by yarn, fabrics, fibre, made-ups and other textiles including carpets, nonwovens,
etc.

MARKET POTENTIAL
With regard to marketability of the product in general, printed items have good market potential
both in domestic and export market. In populated country like India, there is no problem of
marketing printed fabrics as the requirement tends to increase and also these items will satisfy
individual customers needs and requirements in terms of colour combination, design
requirements etc.

GLOBAL DIGITAL TEXTILE PRINTING MARKET OVERVIEW

Digital Textiles Printing (DTP) currently accounts for less than 2.0% of the overall textiles
printing industry, which was around 27,500.0 mm 2 in 2013. Market share of DTP is
expected to occupy more than 5.0% by 2020 growing at a significant rate in terms of value
between 2015 and 2020, as compared to 2.5% of the overall textiles printing industry
during the same period.

STRATEGY AND IMPLEMENTATION

SALES FORECAST
It is important to state that our sales forecast is based on the data gathered during our feasibility
studies, market survey and also some of the assumptions readily available on the field.
One thing is common with textile printing business, if we will go for the locations that are prone
to high traffic; the easier it is for us to make sales. So also, the more the variety of products we
will offer, the more costumers we are going to attract.

MARKETING ANALYSIS
SWOC ANALYSIS

Our intention of starting our textile printing business in strategic locations of Jammu is to test run
the business for a period of 3 to 6 months to know if we will invest more money, expand the
business and then go for more plant locations first all before spreading to key cities in Jammu
and Kashmir.
We know that if a proper SWOC analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be well equipped to face the challenges.
Our Digital textile printing Company will employ the services of an expert HR and Business
Analyst with bias in retailing to help us conduct a thorough SWOC analysis and to help us create
a business model that will help us achieve our business goals and objectives.
This is the summary of the SWOC analysis that is conducted by our digital textile printing
Company;
STRENGTH
The strategic locations we intend installing our company, the business model we will be
operating on, ease of payment, wide range of products and our excellent customer service culture
will definitely count as a strong strength for our Company. To sum up we have:

potential for global customer base

manufacturing & production expertise
exceptional quality & customer service

WEAKNESS
A major weakness that may count against us is the fact that we are a new textile printing business
and we dont have the financial capacity to compete with multi billion dollars companies. Or to
summarise:

small initial customer base

new staff
lack of leverage with new relationships

OPPORTUNITIES

The fact that we are going to install our plant in some of the busiest places of Jammu City,
provides us with unlimited opportunities to sell our products to a large number of people. We
have been able to conduct thorough feasibility studies and market survey and we know what our
potential clients will be looking for when they visit our vending machines locations; we are well
positioned to take on the opportunities that will come our way. To sum up we have:

new products, processes and technology

Innovation
Hiring new talent

CHALLENGES

Just like any other business, one of the major threats that we are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing power. Another threat that may
likely confront us is the arrival of a new textile printing company or new textile printing plant in
same location where ours is located. Or to sum up we have:

retaining key staff members

market demand fluctuations
technologies developed by competitors

This projection is done based on what is obtainable in the industry and with the assumption
that there wont be any major economic meltdown.

PORTERS FIVE FORCE MODEL

Analog Vs. Digital Textiles Printing Process

 PROMOTIONAL STRATEGY;- ( INDUSTRIAL PROMOTION)

The printed furnishing textile industry, however, is a mature industry, of a traditional competitive
type with established firms and markets. It produced more expensive products that were bought
less frequently and were less affected by sudden fashion change or technical innovation (classic
styles are used, that will remain acceptable for long periods, with an emphasis on quality and
skill in production process hand print processes and designs using many blocks or rollers are
common).
As an established industry selling a smaller range of products, marketing is focused on corporate
brands, not product brands. The type of marketing required for such a mature industry type tends
to be more B2B communication, with regular visits by established networks of sales travellers
and little use of advertising. The advertising used focuses on known corporate brand
characteristics, reminding known consumer segments of brand qualities. As a more durable,
expensive, shopping product, longer time is spent on the product search/ evaluation of
alternatives process and thus more focus on the actual product so advertisements may show

specific textile prints rather than broader signifiers of the product brand benefits. It is also likely
that as more expensive, lower turnover product, there will be more focus on particular market
segments in price or style preference.
As an established industry, however, it would be more threatened by sudden change in its
environment, whether economic (macroeconomic changes, resulting in loss of spending power/
disposable income by market segment) or by the intervention of a significant product/ style
change. This may mean that it responds by increasing the use of advertising during these periods
of uncertainty. Significant changes in product offering are likely in such a climate, especially
reductions in price and changes in style to reflect the consumer taste changes. 41 There may also
be increased observation of consumption trends from purchasing behaviour and attention to trend
prediction by the trade journals.
The bulk of the printed textile industry focused on B2B marketing, with personal selling by
representatives to customers within the value structure, promotion at trade fairs and limited
advertising.

Promotion to Consumers
Our company will achieve our sales target through a combination of relationship building and
aggressive pricing. We are quite aware of the enormous returns a good publicity strategy can
bring back to our business. So, despite the fact that our vending machines will be well located,
we will still go ahead to intensify publicity for the business. We are going to explore all available
means to promote our digital textile printing business.
Here are the platforms we intend leveraging on to promote and advertise our textile printing
Company;

Place adverts on both print (community based newspapers and magazines) and electronic
media platforms.

Leverage on the internet and social media platforms like; Instagram, Facebook , twitter,
etc. to promote our brand.

Engage in road show from time to time

Distribute our fliers and handbills in target areas

Position our Flexi Banners at strategic positions in the location where our textile printing plant
will be located.

STRATEGIC ALLIANCES
A leading objective of our company is the development of key strategic alliances. We will pursue
alliances with branded national companies like:-

BOMBAY DYEING
DELHI CLOTH & GENERAL MILLS
FAB INDIA
PROVOGUE
VARDHMAN GROUP OF COMPANIES

SALES AND DISTRIBUTION STRATEGY

We will pursue distribution agreements with large regional and national distributors. Until these
agreements are in place, we will sell directly to the local distributors. We will also pursue
relationships with nationally-branded companies.
Under the direction of executive management, we will employ an outside sales staff as well as an
inside sales staff, to handle general customer service calls. The outside sales staff will focus
primarily on trade show attendance, comprehensive follow up, relationship building, closing
deals, and securing referrals.

COMPETITIVE EDGE
large raw material base.
positive developments in textile policy.

 flexibility in production.
short printing cycles, low energy consumption, reduced chemical waste, printing
flexibility and availability of variety of creative design options as compared to traditional
analog printing technology.
We will attempt to leverage the strong position to establish and solidify our brand in the
market. As a small company looking to establish itself, we will be attentive and flexible in
meeting our customer's demands.

KEY PLAYERS IN INDIA

RAYMOND

BOMBAY DYEING

CENTURY TEXTILES LIMITED

VALUE PROPOSITION
Our customers will derive immediate and lasting value from our product. Our company will
both expand existing markets and create new ones. The quality of the product will work to
satisfy existing customers and to attract new ones.

PRICING STRATEGY AND PAYMENT OPTIONS

Below are the sales projections that we were able to come up with for the first three years of
operations;

First Year-:

Second Year-:

Third Year-:

CREATIVE POSSIBILITIES WITH TEXTILE PRINTING