Buying decisions driven by convenience and fashion
Donear Industries Ltd is a reputed and fast-growing brand engaged in the manufacturing and marketing of fabrics. Managing director Rajendra Agarwal responds to a number of questions about both the fabric trade as well as the suitings market.
Earlier, the biggest spends for suitings happened in tier-1 cities, but much of this has shifted considerably to tier-II and tier-III towns. How are you handling this market scenario?
To be honest, we have always striven to contribute at the grassroots level, in terms of quality and variety of fabrics. With the right mix of products, relatable brand ambassadors and on-ground and mainline initiatives, we have been able to build and enhance our ground in nontier-I segments. We have invested in marketing tools to aid brand recall and capture share of mind and heart.
What are your impressions about the ways in which the fabric trade has changed over the last 10 years? Could you enumerate a few?
The overall industry has seen a gamut of changes over the past decade- be it in product, process or machinery. Let me outline a few:
- Technological advancements: All players are keeping a close lookout on tech advancements. They serve multiple purposes-from increasing shop-floor efficiency, reducing defects, ensuring streamlining of different processes, and their importance for innovation. At Donear Industries, we've always striven to stay ahead of the curve for new and improved technology.
- Indigenous production: A lot of countries, including India, have started producing indigenous fabrics via their own manufacturing plants/factories. The added benefit to consumers is in terms of price and distribution availability.
- Knowledge at our fingertips: A decade ago, predicting trends and understanding consumer insights was much more complicated and therefore a larger range was made to cater to all segments. Now, that it's been narrowed down to accurate forecasting and modelling consumer psychographics, the end target is much more in sight than before.
Of these, which trend according to you has affected the global fabric trade the most?
The balance of trade is affected by a lot of socio-economic conditions including inflation, demand, and currency reserves to name a few. A comparative advantage is secured due to increased indigenous production. A lot of domestic companies are looking inwards for their sourcing requirements. Further, global companies are looking at India to fulfil specific requirements because of the quality of finish here.
In India, the lower-end polyviscose segment occupies 70 per cent share in the suiting segment with the rest being luxury. Will more brands be moving into the PV segment or the other?
It has been noticed that there is a consumer shift to synthetics over natural fibres/fabrics. The proliferation in the market has been done thoroughly-for both organised and unorganised segments. It's a need of the hour for a brand to have enough bandwidth to have product extensions that cater to a diaspora of fabrics at different price points-be it wool, polyviscose, cotton or anything else.
Europe is still considered the benchmark in the manufacturing of suiting fabrics. How can more Indian brands rise up to their level? How do you react to this personally?
Let us not forget that India is the second largest exporter of textiles with export of $40 billion in FY15-16, with increased projections till 2020. Keeping that in mind, personally, I feel that India is churning out products with a high innovation index. Right from utilitarian-based fabrics to environment-friendly ones, from vintage designs to new-age ones, there are myriad products being featured for different target markets. Indian brands are constantly reinventing themselves to be on the ascension scale in the industry and if they continue doing so, we will definitely create a new benchmark.
Do you think these trends would remain so for next decade? Which single factor do you believe will dictate the course of fabric trade in the next ten years?
Yes, I am certain that these trends, especially that of technological innovations, will continue to have a strong impact on the textiles industry. Technology will have a huge role to play in the coming years.
- Nanotechnology: One of the latest innovations is being used to create utilitarian clothing like waterrepellant, fire-repellant, aromatic fabrics, and more. A different arm of nano-tech will also enable the textiles industry to go for low-energy production, which helps in environmental sustenance.
- 3-D printing: One of the rising trends, 3-D printing is being incorporated on fabrics to get a resilient and smooth finish.
- Eco-friendly fabrics: Technology has enabled the industry to come up with environment-friendly textiles and apparel via methods of reutilising waste materials and developing eco-friendly fibres.
- Smarter factories: Technological upgradation has enabled faster production, high-quality and environment-friendly fabrics. It also allows automation in all arenas of fabric production-right from design and colouring to fibre construction, which further enables optimisation of asset utility and productivity.
I am looking forward to integrate AI (artificial intelligence) into shop-floor processes and for robotics to help with a higher efficiency.
What kind of impact will Brexit/US-China trade war have on the global fabric trade? In what ways do you think this will affect the apparel business itself?
Fabric and apparel retail today is driven by consumer sentiments. Brexit in UK is causing negative sentiments and thereby making consumer sentiments negative, impacting retail sales. This will certainly have an impact.
In the US, its trade relations with China getting sour is making an impact, but not too much. On the whole, sentiments are negative in the US with retail not being good last Christmas, as the nation stands divided internally on lot of things starting from the Mexico border wall to North Korea causing political uncertainty. All this is impacting the textiles and apparel trade; plus, the recent withdrawal of GSP (generalised system of preferences) is likely to impact direct exports from India.
Fabrics today are usually lighter than they were 30-40 years ago. Will the trend continue?
Consumer preferences today are changing-they want something that feels light because of a perceived notion that it's finer. A lot of times this is the case-the lighter the fabric, the higher its count. This is a trend prevalent primarily for youth. They believe the functional attributes of finesse are positive rub-offs to the way they are perceived and in the true sense, the fabric brings out the 'best you'. Discerning customers, who are trend-savvy, also opt for thicker and more rugged fabrics which are donning international runways. I would say based on sheer volume of consumer preference, the skew is more towards lighter fabrics with a good drape.
A fabric's quality and character aren't just a function of what that fabric is. The manner in which it's woven plays a huge role. What novelties are fabric manufacturers bringing to the table? How is technology shaping suit fabric manufacturing today?
As mentioned earlier, there are several novelties ranging from wrinkle-free and aromatic textiles to stain-resistance and more, that fabric manufacturers are bringing to the table. Technological advancements are shaping the manufacturing processes in a rapid way. Several years ago, waste management was a major setback, but with the advent of new and improved manufacturing processes, this has been abated, if not eliminated. It also paves the way for new product lines and extensions with improved finishes-even liquid ammonia for wrinkle-resistant fabrics. Technology is also leading to smarter factories, better utilisation of assets, high-scale production, enhanced quality products, product innovations and more-the list holds a variety of prospects for the future years as well.
In what ways will blockchain and issues of sustainability/transparency in the days to come change the ways fabric sourcing is done?
Transparency is the cornerstone of blockchain, which aims to streamline across the length of the supply chain. This is particularly important for decentralised organisations to quickly track-and-trace inventory and analyse delays if any. It will definitely revolutionise this industry, especially in terms of time management and overall value chain efficiency.
The size of the overall apparel market in India is large, but suiting fabrics account for a negligible 3-4 per cent. What are the reasons? Keeping trends in mind, do you see this dropping further?
The current patterns of consumer behaviour towards purchasing products, especially in the textiles industry, indicate that the main factors governing their buying decisions are convenience and fashion. While sales for ready-to-wear are increasing, there is a shift in the buying mentality of several niche segments owing to the increased growth of ready-to-stitch as well. That said, the reach of the textiles industry is enormous. The industry in India accounts for 24 per cent of the world's spindle capacity and 8 per cent of the global rotor capacity, with the entire sector contributing 5 per cent to the GDP.
Modern manufacturers know how to produce Super 250s wool which is the finest and silkiest type of worsted wool fabric. What are the other fabric trends you see in the luxury suit market?
The luxury suiting market has grown manifold in recent times. Discerning consumers are looking to buy fabrics which are unique and demand knowledge about the product before purchase. Wool and wool blends rule the roost here. Mangled with exotic fibres, new designs and brand names, the consumer has begun to devour this segment. The primary drivers here are blend, brand and design for purchase, followed later by the price.
Seersucker suits were originally considered a poor man's alternative to linen. With more designers opting for seersuckers now, has the fascination around it changed?
I have always seen seersucker suits to be gamechangers in the industry, given their multipurpose utility and style. This particular fabric ticks all the boxes that a consumer looks for-style, comfort, colour. The best part about it is that such a fabric can never go out of vogue. They can be lent to both formal and casual wear and are a must-have for spring/summer.
With brands getting phased out and trying to bear with the readymade garments (RMG) onslaught, are we seeing the end of Indian brand names in a category (suiting) that has its origins in the West?
It is a competitive landscape-for both domestic and global players. The average consumer insights are a lot more profound and much more discerning as they were. The domestic textiles industry in India is projected to reach $250 billion by 2019 (from $150 billion in July 2017). That said, Indian brand names are certainly here to stay. In the future, there will be a shift on the customer and the distribution channel being catered to; however, the end-customer will always be fulfilled whether it's through ready-to-stitch or a ready-to-wear.
Suiting fabrics for an all-purpose business suit will differ from those for a formal wedding suit or tuxedo. Or you may want to strike a balance between a suit that is classic and practical but also a bit of flex at the same time. What would be the ideal suit fabric choices in such situations?
Consumer trends have shifted from the one-suit-fits-all-occasions mode. The consumer is much more attuned to designs and what to wear for any occasion. A trend that's taken the market by storm has been mix-and-match coordinates. For example, a navy blazer and trousers could be a formal look, a plaid blazer with chinos is a casual look, an embellished blazer with dark trousers for an evening look. There is a rise for unmatched coordinates.
How can suiting brands attract GenY, whose preferences are whimsical in nature?
To attract any set of consumers, it is essential to identify the said set's common personalities and then incorporate those with the brand's personality. GenY's traits include high levels of digital consumption, environmentally-conscious decisions and more-it is imperative to capture such aspects and portray them via the brand. It could be via choosing certain patterns or colours that appeal to the consumer set, or it could be choosing a brand ambassador that they can relate to, along with extensive digital/social media engagement.
