We anticipate the spandex market in India to grow continuously over 10 per cent in 2016
Hyosung Corporation is the largest global spandex producer with Creora brand. India is a key focus market for Hyosung, which is working with several leading Indian players in the textile field. JG Lim, director, Hyosung Corporation India, provides a glimpse into the global spandex yarn market.
What is the size of the market for spandex yarn in India?
We believe the size of the spandex yarn market in India is over 1500 metric tonne this year. The growth of Indian spandex market has been over 10 per cent between 2014 and 2015.
Which product category is Creora being used the most in?
These days, there is demand for comfort as well as fashion in all kinds of apparel. So Creora is being used in intimate wear, denim, knitwear, woven garments and swimwear. Creora has many classified products so it has met all kinds of apparel mill requirements.
What are the latest innovations in the field of spandex, nylon, and polyester at Hyosung?
Recently, we developed Creora Fresh which is an anti-odour spandex. It is an odour-reducing fabric that neutralises four kinds of odours caused by chemical bonding, isovaleric acid, acetic acid, ammonia and nonenal.
It would add value especially in the active/sportswear, intimatewear and hosiery segments. Many global mills and brands have expressed interest in it. We have also launched Creora Fit2, which is a new innovation in two-way stretch denim using Creora eco-soft in the warp. This is to meet consumer needs for the perfect fit for four-way stretch denim.
At what rate is the market growing year-on-year? What factors are influencing the growth?
The growth of the global spandex market between 2014 and 2015 was about six per cent. We believe the global spandex market is about 500,000 tons (which is inconsistent with the above six per cent growth rate). Hyosung is the largest producer of spandex in the world with Creora brand.
What is the market share of Creora in the spandex market of India?
Creora's market share is about 50 per cent of the market in India. We expect to increase the share as we provide superior technical support and best quality products. We anticipate the spandex market in India to grow continuously over 10 per cent in 2016 as demand is driven by increasing consumer awareness about healthy lifestyle and demand for comfort in various kinds of apparel, including denim.
Please share details of your last two fiscals and your expectations for the coming two fiscals.
2015 was an excellent year for Hyosung's global spandex business. We increased our capacity in China and Vietnam. The expansion in Vietnam was made to serve the growth in demand in Southeast Asia, including India.
We see continued growth in spandex penetration in woven and denim segments to meet consumer demand for comfort, so that is a key market for us. We also see growth in activewear and athleisure markets, which are lifestyle-oriented.
Any plans to set up a manufacturing facility in India?
In India, we are headquartered at Gurgaon with six regional offices handled by experienced textile professionals. We are expanding our team to serve our users with more effective and efficient service. Our project team is studying a potential Indian factory. We do intend to invest in a spandex factory in India.
Which are the major markets for Creora in Southeast Asia?
We are a leading company in Southeast Asia. In Bangladesh, almost all knitwear mills use Creora. Leading mills in Thailand, Indonesia, Sri Lanka, Vietnam and Pakistan are our major partners.
What business opportunities do you see for spandex in India and in the other geographies mentioned above?
We have seen the spandex markets grow in India and other Southeast Asian regions for more than a decade. India is an emerging market due to many reasons including the huge population. Stretch in apparel is a global growth trend and is consistent with what we are seeing in India. Our primary mission has been to support the growth of the Indian and Southeast Asia textile manufacturers through new products, exceptional service and trend presentations.
What markets do you plan to enter in the near future?
As we launch the anti-odour spandex, we think it would be a new and good market. During the last few months, hot keyword in the fashion market was Athleisure (Athletic + Leisure). It bridges the gap between regularwear and apparel for exercising in. Anti-odour could be a sensation in this segment. We have planned to make inroads into the denim market. Creora spandex can add value to denim garments. In addition to regular spandex, Creora has all kinds of specialty yarns. To meet consumer need for the perfect fit and comfort from four-way stretch denim, we launched Creora Fit2. Some Indian denim mills are trying to test this item.
What are the challenges of operating in India?
We are considering strategy to make our quality appeal to the end user, and towards this looking at marketing it with end user in mind.
Has Creora got into the business of branding itself?
Our main focus is business to business and our intent is to support textile mills as well as retailers and brands in being successful in developing the most innovative products to meet consumer needs. We will work selectively to support brand efforts of key partners and build awareness about Creora in this process.
From which parts of India do clients of Creora hail from?
Creora is working with most leading Indian textile manufacturers engaged in production of woven, denim, knitted, narrow fabric elastic, warp knitting textiles and diapers. Vardhman, Ginza, Pratibha, Maral Overseas are some of our clients. We cater to all major corporate customers all over India.
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