Low Level Of Consumption Inhibits The Development Of Garment Industry In India

India's consumer market is booming, and the India government is about to relax. Retail According to foreign investment regulations, more and more international garment brands regard India as an important area for expanding their business territory. However, judging from the current market situation, the growth of India's garment industry is still limited by multiple factors.

Although the fashion trend of the global garment retailing industry is changing with seasons, the weather in most parts of India does not change very much. Therefore, seasonal change is not the main driving force for the change of fashion. Besides, the lower income level also limits the willingness of customers to buy new clothes frequently.

People in the clothing industry in India say that low consumer price tolerance is still a serious challenge to industrial development. A business consultant has assessed that many brands selling in India still weigh the product prices according to the income level of the target customers, and have not adjusted according to the actual situation.

According to the assessment report, according to the current level of consumption in India, the prices of goods sold by different brands in India should be 30%~50% lower than the average selling price in the global market. But in fact, the consumption level of the target customers group set by most international brands in India is far higher than the local general consumption level. This phenomenon exists not only in the sales of international brands in India, but also in India's local brands.

From the actual sales situation, India consumers are more keen on buying discount products. The ability of consumers in India to tighten their purse strings is usually stronger than that of brands. Most consumers can always be patient and wait for a few weeks' discounts, instead of buying new products on the shelves. This makes the sales of brands at the end of the season and sales at the end of the season tend to be higher than the sales of the products during the quarter. The return on investment of International brands in the India market is also affected.

In addition to the fact that the actual consumption level is quite different from that expected, the garments made in India are quite different. Brand dealer It is also plagued by store rents, labor costs and higher operational input.

Retail rental in India is the most expensive in the world. But the local salesperson's ability to work is not satisfactory. The brands sold in India usually have to redistribute some of their advertising budgets to train salesmen. In addition, some of the more modern business process module building and merchandising lists do not apply to the needs of India's retail environment in 2011, and brands need to redesign according to the actual situation. And because India is right. Garment products Strict specifications require that some goods often miss the peak of the season due to delayed delivery, thus increasing the operation cost of the brand.

Insiders pointed out that the long-term development of India's garment industry needs to be changed. Whether it is dominated by large international brand retailers or local enterprises in India, the garment industry in India should be changed in terms of consumption orientation and operation mechanism.