Apparel competitive advantage to manufacturers in countries like India

Apparel is one of the basic necessities of human development
along with food, water and shelter. The Garment Industry reflects people’s
lifestyles and shows their social and economic status. The Apparel and Textile
industry is India’s second largest industry after IT Industry. Recently, it is
the fastest growing industry and is also the second largest foreign exchange breadwinner
for the country. The apparel industry accounts for 26% of all Indian exports.
The Indian government has targeted the apparel and textiles industry segments
to reach $50 billion by the year 2015.

One of the most curious features of the apparel industry
is that, it travels from high cost nations to the low cost nations. The growth
of the domestic demand for apparel in India is connected with the success of
the retailing sector. India currently has entered the second phase of growth
and is witnessing a massive rise in the domestic demand. This is mainly due to
the rise in the standard of living caused by the rise in the middle-income
groups. In our present economic world of demand and supply, price and quality
are the key factors, which determine the success of any business. The key
element here though, is the cost of labour. India and China have a comparative
advantage in this industry though, their vast labour forces and the relatively
low cost of labour.

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Since, India and China have the advantage of making textiles and
so fabric costs are lower than in other countries, they have become the Apparel
sourcing choice for many international companies. Sourcing choices arise from
profitability. This includes considering costs, such as, buying factors of
production, like land, buildings and machines versus factors affecting
revenues, including pricing, marketing, and distribution. The issues of labour,
material, shipping costs and tariffs structure also affect the sourcing
choices. Since, garment production is a labour-intensive activity, wage rates
are also a major factor in finding decisions. This gives direct competitive
advantage to manufacturers in countries like India and China to export to more
developed and high cost countries like the United States and the European
Union.

 

Consumers shop for various reasons and
occasions. Shopping has long been regarded as a risky activity as shoppers may
be uncertain of a purchase decision and the consequences of a poor decision
(Bauer 1960). Men prefer the brand in purchasing many things, one of the most
dominant areas of branding preferred by men are garments. Consumers purchase a
particular product, collect information for a next purchase decision or an
overview of the latest trends. In addition, consumers may vary in how they
shop, select products, or process information. Consumer research has identified
purchasing behavior as an important construct. Consumer behavior is the process
and activities people engage in when searching for selecting, purchasing,
using, evaluating, and disposing of products and services so as to satisfy
their needs and desires (Belch & Belch, 2010). A brand is a perceived image
that resides in the minds of consumers. It is the aura that surrounds a product
or service that communicates its benefits and differentiates it from its
competitors for the consumer. Thus a brand is being defined as, “an
identifiable product, service, person or place, augmented in such a way that
the buyer or user perceives relevant unique added values that match their needs
most closely” (Caldwell and Freire, 2004). The purchase of any product by an
individual is influenced by several factors including high value towards the
brands, information about the products, purchase out of habit, based on
experiments with the products apart from this there are several internal and
external factors that determine buying forces such as needs, past experiences,
personality, learning and attitudes termed as internal factors and social,
marketing, and situational influences are external factors. The behaviour of
the consumers varies with respect to the products they are intended to
purchase. In men’s wear, the market is now quite well developed, and many
globally known brands have also attained what is commonly known as critical
mass – or the minimum scale of operations required for sustainable growth and
profitability. These include names like Allen Solly, Park Avenue, Van Heusen,
Raymond and others.

India has been in the midst of a great social,
political and economic change ever since

Reforms were introduced in various spheres of
activity. The country has greater confidence to take on the competition from
developed countries and has attracted global investors in ever increasing
measure. Apparel industry is one of the oldest industries in India. This sector
has made significant contributions in terms of forex and employment and is one
of the backbones of the economy. The Indian textile industry is one of the
largest in the world with a massive raw material and textiles manufacturing
base. Our economy is mostly dependent on the textile manufacturing and trade in
addition to other major industries. About 27% of the foreign exchange is on
account of export of textiles and apparel alone. The textiles and apparel sector
contributes about 14% to the industrial production and 3% to the gross product
of the country. Around 8% of the total excise revenue collection is contributed
by the textile industry. The textile industry accounts majorly 21% of the total
employment generated in the economy. Around 35 million people are directly
employed in the textile manufacturing activities.

 

 India is changing with the latest fashions in
apparels. India is also known for its fashion as well as. Ethnic and
traditional apparels have been a uniqueness of India since long. But now-a-days
fashion apparels have changed the situation of Indian market. Modern
consumption patterns have changed and evolved where consumers are well aware of
fashion trends and updates are easily available to consumers for all segment
through different media channels. This has changed consumers motivation behind
their fashion consumption as well, some uses fashion as a means of presenting
themselves to the culture at large. Fashion is a dynamic phenomenon which
changes with time; irrespective of whether it is a garment, cosmetics or
jewellery, but to define how fashion has changed. Every year a confusing array
of styles are prepared all over the world and replaced the year after with new
ones. Fashion clothing industry is completely dependent on constant ideas and
new expectations of the youth.