Business Overview (Introduction)
The Indian clothing and fashion accessory market has grown manifold over the past few years and is swarming with a vast range and variety of products it offers in apparel accessories, like stoles, scarves, etc., as well as hard accessories like bags, wallets, fashion jewellery, time wear and eyewear.
Accessories are no longer viewed as add-ons, but products in their own right. Fashion accessories come in a variety of product types; the term is extremely vast and covers almost any accessory related to fashion. In the context of urban India, fashion is no longer related to items of clothing it has gone from a pair of shirt and trousers to the right match of tie, socks, shoes etc. Similarly, for a woman - the bag, the earrings, the stole or the scarf and the sunglasses hold great significance. However a very large part of the accessory market still remains untapped by the organized sector, being largely catered by unorganized sector, and hence offers high potential.
The key market segments in fashion accessories, relevant for consumption of textile fabrics are identified as follows. Among these apparel accessories segment is by far the largest fabric consuming segment followed by Bags. Other segments are at best marginal as far as use of textile fabrics is concerned.
The urban Indian market for apparel accessories in 2008 was estimated at Rs 9.1 billion and is expected to reach Rs 12 billion in 2012. About 57% of the market at present is catered by unorganized sector suppliers, hence creating a huge potential for branded and organized sector. Purchase location for accessories is usually large traditional streets and neighborhood markets. . Apparel accessories include dupattas, stoles, scarves and shawls.
Indian industry has shown remarkable ability to blend Indian and international trends in terms of designs. As a result, product innovation has become one of the strengths of the sector, supported by availability of a wide variety of raw materials like wool, pashmina, silk, cotton, linen, synthetic, acrylic, viscose, and their blends.
Other Fashion Accessories, including Bags, Belts, Wallets etc.
Bags and purses constitute an important category of the fashion accessories industry. While most of the bags are made up of leather, several other fabrics like cotton, denim, and nylon are also used. India is among the top eight countries manufacturing and exporting bags and purses. Indian domestic market for bags, including handbags, college bags, office bags etc. was estimated at Rs 15 billion in value in 2008 which is growing at a scorching pace. The women’s handbag sector has emerged as a biggest market with a strong 47% market share by volume and 40% by value.
Bags, handbags and office bags in the premium range are usually purchased through organized sector retail outlets at high streets and malls. Although the presence of brands is certainly limited as 74% of the market is dominated by unbranded players, thus making it a style driven market. Leather bags are very popular with flashy shiny imported synthetic material. Several other fabrics like cotton, denim, and nylon are also popular among the bag buyers. Exposure to international markets through participation in trade fairs, etc. has helped Indian manufacturers to catch up and keep abreast with international fashion trends. Liberal import policies of the Indian government, have facilitated ready access to latest technology and materials available internationally.
The urban Indian male today is also very conscious of the style of the wallets and bags he carries. Bags and wallets of all sizes and shapes are available in the market ranging from Rs 100 to Rs 2000 + for a double-decker and multi utility unbranded bag. Some of the brands which are popular in the Indian market are: Allen Solly, Baggit, Hidesign, and Footloose besides other.