Devangshu Dutta
February 2, 2009
A recent discussion online on retailwire.com quoted a book “Jump the Curve” by Jack Uldrich, in which he describes rapidly growing trends that stay small for a long time and then suddenly explode. He uses the example of water lilies to illustrate the point about exponential growth. Say we start with one water lily and it multiplies to cover a pond completely within 30 days. On Day 20, only 0.01 per cent of the pond would be covered, and on day 25 it would be just over 3 per cent. The last days, hours, would show dramatic growth.
The water lily example is just so apt to describe technology adoption in the retail sector (especially in fashion and other soft goods). It’s so slow sometimes that it looks like molasses dripping down a wall. (And when a weed-killer gets dumped in the water at an early stage, the adoption can take even longer. )
In 1985 the industry was breaking new ground with the principles of Quick Response (QR) – then in the 1990s Efficient Consumer Response (ECR), Collaborative Planning and Forecasting (CPFR), and numerous other acronyms appeared in the supply chain alphabet soup.
During 1999-2001 in my previous company, the team developed a collaborative supply chain enablement solution to create an easy-to-understand common platform for the various stakeholders in a supply chain to work together seamlessly. By 2001 we discovered that we were among a handful of companies speaking the same language, and among a sea of 300+ web-based portals aiming to catch up. And then the bottom fell out of the market.
As we stand today, about a decade on, design-to-delivery lead times are still measured in months, buyers are still trying to gaze into crystal balls to forecast their future demand, and their suppliers are still trying to consult oracles to interpret their buyers’ orders.
We may yet see adoption of true collaborative platforms in the next couple of decades. At that point it will look like sudden growth that’s come out of nowhere, and everyone will be asking “how did they ever manage supply chains in B.C. (Before Collaboration) Era?”
Until then….
admin
October 11, 2008
Differentiation is the key to surviving and thriving in tough times. In the lifestyle products sector (apparel, footwear, home, etc.) a big difference is the product design itself.
More than ever, it is vital for Indian companies – brands, suppliers as well as retailers – to develop their own design and product development team, in the shortest time. The team, including designers, merchandisers, buyers, sourcing people, textile and apparel manufacturers – must sharpen their skills in reading the market trends and in developing new products that can make their brands or retail stores stand apart in the customer’s eyes.
To share its insights and experience, Third Eyesight is organizing an intensive workshop on Product Development and Forecasting (with an insight on Trends for Autumn/Winter 2009/2010). Click to REGISTER NOW.
The workshop will draw upon live experiences from the area of product development in the lifestyle and fashion sector, and will cover:
Past workshops have included top / senior managers from companies such as:
Discounted delegate fees start at just over Rs. 9,000.
admin
September 22, 2008
The Textile and apparel industry is of particular importance to India. It not only provides employment to a broad base of semi-skilled and unskilled labour but also helps to extend the economic bounty to urban and semi urban areas. Though India has a history of thousands of years in global trading of textile, it contributes only 3% to the global exports of textile and clothing.
While the urge to grow exists, there is a huge difference between the current exports of about Rs. 864 billion (US$ 20 billion) and the target of Rs. 2,500 billion (US$ 55 billion) by 2012. To achieve this vision, exports must grow at around 25-35 per cent a year for the next 4 years, depending on how weak or stable the current year is. This growth rate seems difficult considering the fact India has actually grown its exports of textiles and apparel at an annualized growth of a little over 14 per cent from 2003-04 to 2007-08.
Even if the industry looks at increasing the volume of exports to achieve the vision, the ports do not have the handling capacity considering that they currently operate at 91 to 92 % of available capacity.
Hence, incremental thinking will not help to achieve the vision.
Our key concern is the value “lost” by the industry. Being the low cost supplier does not necessarily translate into greater market share. The Indian Industry must look at enhancing the value delivered rather than competing on the cost platform. Indeed, India compares poorly to other countries on the value captured per employee. (For instance, if the export value captured per employee in India was as much as Turkey, India’s exports would be close to China’s exports of US$ 161 billion.)
One major concern that needs to be addressed is that India’s exports are still weighted in favour of raw materials and intermediate products, rather than finished products. Apparel exports account for only 41% of India’s textile exports in 2007-08. India’s product mix also needs to be aligned to global market needs, rather than only focussing on “traditional strengths” – this includes enhancing the share of non-cotton products in the basket.
Another area that is neglected is the inherent competitive capability of developing new products. The industry needs to develop and nurture these skill sets to create a sustained competitive advantage in the global scenario. India already provides buyers with value in terms of product development and design, which needs focus and further strengthening.
Further, India’s domestic industry, and its skill at understanding market needs, creating and merchandising product, can also play a valuable role in the industry’s growth.
The competitive advantage offered by being able to influence the development of a product is immense. And given that sourcing lead times are shorter in unpredictable times, a supply base that has been involved with the buyer right from the development stage of the product is most likely to get the final order. Third Eyesight proposes a four dimensional model: Define, Design, Develop and Deliver so as to achieve the industry-wide development, of projecting India as a valuable supplier, and sustaining its value needs.
By creating an ecosystem focused on design and product development, India can create and capture the billions of dollars worth of value that is being lost to other countries.
This is an extract from Third Eyesight’s report presented at the FICCI 3rd Annual Textile And Garment conference in Mumbai. The report was released by the Minister of Textiles, Government of India. To download the full report prepared by Third Eyesight, please click here.
To discuss how we can help you with your specific business needs, please get in touch with us via email (please send it to services [at] thirdeyesight [dot] in) or via this form: CONNECT.
Sharmila Katre
April 30, 2008
India has a rich tradition of textiles which dates back many centuries. The history of the Indian readymade garment industry, however, is very recent and can be traced back to the Second World War.
During the Second World War, as a contribution to the wartime needs of British rulers, clothing units for mass production were set up to manufacture military uniforms. With India’s independence in 1947, the industry stagnated as the policies of the Government were now diverted towards building a new nation. However, the industry began to expand after 1959 with the revision of the textile policy to allow the import of machinery for manufacturing.
The 1960s witnessed social shifts as a whole generation of young people questioned the very basis of their existence, and the hippie movement was born. Tired of their materialistic ‘man-made’ lifestyle, these young people began to seek answers in communing with all things natural, love and peace being the anthem. They began traveling, to explore, to seek the ancient philosophies of the East.
This voyage of discovery not only led to a change of lifestyle, but also the way they dressed. Natural fibres were rediscovered, and principally amongst them “Cotton”. India, with its natural abundance of this fibre, was an automatic choice of a supply source. Simultaneously, the growing settlement of Indian abroad led to a ready outlet for a variety of India merchandise and clothing textiles as an article of trade because of its growing demand.
This sudden demand for cotton garments resulted in the Indian industry growing by leaps and bounds in a very short period. Export of “High Fashion” garments from India started off with the cheap cotton kurtas and hand-block vegetable dye printed wrap-around skirts in cotton sheeting to meet the demands of the western youth.
Cashing in on the boom any and everybody got into the manufacture of clothing. The Government, realizing the potential of earning foreign exchange for the country, announced incentives and tax exemption for exporters. The fallout was an industry that grew in an unorganized manner and developed a reputation for producing low cost, low quality, volume merchandise.
The 1980s established that the industry was here to stay but, in terms of product profile, India still had not been able to move out of the lower end of the world market and continued to have an average unit value of under US$ 5.
The 1990s saw the industry make a conscious effort to shake off the image of being producers of cheap, low-quality merchandise with unreliable delivery schedules. The second generation had begun coming into the business, and contributed to reorganizing their firms for clearer structure and professionalism. Funds were ploughed back into the business with the emergence of large and modern production facilities. Even though most of the export houses were family-owned, trained professionals were inducted into the business for clear-cut departments and areas of functions. Consolidation and retention of business was the focus of the late nineties as the abolition of quotas planned for the new millennium became a reality.
The industry was euphoric but at the same time apprehensive of what the post quota era would bring. Many of the producers looking for a synergy in the business and also to sustain the large production facilities began tentative forays into domestic retail. The face of the Indian consumer was changing. Exposure to the western society via the electronic media helped in creating a ‘borderless’ world for lifestyle products, and contemporary fashion merchandise found a ready market in domestic retail.
The new global consumer over the years has evolved as a demanding and yet discerning individual. The novelty factor along with price and quality has become the watchword of the new millennium consumer. As consumers around the world change, so does the product strategy to keep consumer interests alive and ensure loyalty.
The new millennium has seen the emergence of the ‘Quick Response’ or ‘Real Time’ merchandising in fashion as a strategic solution to nurture, retain and grow the business. ‘Fast Fashion’ was born. Retailers could no longer work on the concept of two major retailing seasons with a couple of promotions thrown in. Product planning and the merchandise on the racks had to be constantly current and trendy.
Fast Fashion is not simply a solution to increase consumption by introducing greater product variety but a strategy to retain, consolidate and sustain the market through proactive product development and efficient product delivery to consumers, and thereby grow the market by increasing market share or developing new markets.
However, fast fashion has been tried and tested in different avatars through the years. In the 1960s and 1970s it was present in the quick reaction time of the unorganized sector to service the demand for block-printed ethnic clothing merchandise. In the 1980s and 1990s it was represented in the proactively researched product development at the source market level by wholesale importer/designer buyers (like Rene Dehry, Giorgio Kauten, Diff and Steilmann). Today it is technology-aided product research and development techniques (practiced by Anthropologie, Rampage, Zara and H&M), coupled with responsive buying processes.
In product design terms, India has moved on from producing and selling ‘fashion basics’ to ‘basic’ merchandise, and now back to ‘fashion basics’ once again. History says that this is where India’s inherent talents and strengths as a source market lie. Rather than reinventing the wheel or try to catch up with other competitors strengths, India should cash in on its strengths to practice and master fast fashion.
Devangshu Dutta
January 25, 2008
At a faux “pubby” restaurant, I asked a friend why she didn’t order fries with the fried fish she had asked for? (I was looking for a carb-fat fix, but couldn’t legitimately order a whole portion just for myself.)
A withering look accompanied the dismissal, “You and your excesses!”
Undeterred, I went on, “But if I suggested having fish and chips?”
“Well, that would be a fine. That’s standard British fare.” That clinched it for me. “So it’s okay to have it when you call it fish and chips, but not if you ask for “fried fish and fries”?!”
[After all, the Brits call French fries chips. The stuff that the Americans call ‘chips’ are actually called ‘crisps’ by the Brits – more logical, isn’t it? After all, the fries are not really crispy so it wouldn’t do to call those crisps!]
This kind of dilemma generally doesn’t bother the rest of the world – they either pick British English, or American (more and more), or just dispense with English altogether. But for Indians it can be quite puzzling and troublesome, especially those that have pedigreed “convent-education” – i.e. whose teachers were also ‘convent-educated’, and have drilled in the “proper” (i.e. British) spellings and names – and they run into Americanized environments such as food courts.
That led us on to a profound discussion about one of the most global and globally visible businesses – fashion – and how it binds the world together.
One would think that, as a globalised business, at least the fashion arena would be more inclusive and speak a common language. It does, mostly.
Till you hit ‘Sportswear’. It is a little strange.
I’m sure there is a conspiracy afoot – though I’m not sure who’s behind it, or who’s the target. All I know that it gets very confusing.
The first – most obvious and logical – image that springs to mind is that of athletes, active sports, and performance. Caps, headbands, T-shirts and sweats, wrist bands, shorts, track pants, terry socks – you get the picture.
It’s quite clear.
You may be on the treadmill trying to lose weight, or on the court just keeping fit, or even on the fairways networking with your peers – there is an action-orientation as there is activity involved and a sporting game (whether team or individual).
There is a need for comfort and freedom of movement, a need for allowing sweat to evaporate and keep the body cool (but not too cold in case you are playing in the colder climes), and sometimes a need to prevent the odd wobble.
There is certain kind of clothing that fits the bill, and all of it is not appropriate to all sporting occasions or types of sport. For instance, swimwear on the tennis court may make the game more interesting to the spectators, but is of very little practical value to the players. (Having said that, “convergence” is a big buzzword nowadays, and some of the recent trends in women’s tennis apparel seem to be leading to the same conclusion.)
Good, then, you say – sportswear should be quite, quite clear – it is functional, and meant to enable specific performance.
Or is it?
Scan the websites, shelves or magazines, and the variety of merchandise that parades under the sportswear banner quickly dispenses with that image. The category encompasses ‘sports-inspired fashion’ (and a truly inspired marketing person must have thought up that term) to casualwear, to clubwear, to the ‘I don’t know where-to wear’.
The sports-inspired look that grew big a few decades ago (think sweatshirts, track pants and sneakers) … and for some brands it seems to have become big again in recent times. The link back to active sportswear is quite clear in terms of styling, fabric and so on, so the use of the term is understandable.
The sporting brands also wanted new avenues to grow.
So you’ve got adidas, Reebok, Nike and their ilk doing casualwear or ‘leisurewear’, even as they plaster the billboards with sportspeople from basketball, football, cricket, and other games. But it’s not their problem – if someone with a ‘comfortable’ Body Mass Index wants to emulate the active image of Shaq or Air Jordan without really meaning to get down to the court, who is the brand to complain? Just make the ‘sporty’ clothes looser, bigger.
But somewhere along the way, sportswear seems to have become the ‘catchall’ category – a melting pot of styling (or the dustbin of style cues), depending on whether your perspective is inspired or inspiration-challenged.
For instance, it is easy to imagine that somewhere along the way, someone who did great T-shirts thought that actually he could increase his sales by selling jeans and chinos as well. And then others caught on to the trick. Since these brands were already labeled sportswear, the definition stretched and then expanded to accommodate – just as sportswear does!
So now it is understandable to find some casualwear masquerading as sportswear.
But then you have menswear clearly targeted at the sport of ‘pulling birds’ and the womenwear geared for hunting at night. What should be clearly labeled clubwear is pretending to be casualwear and inching surreptitiously close to the sportswear label.
Then, there are these preppy types bringing on their University-team type look.
And the ‘ethnic’ print inspired skimpy halters and skirts whose only sporty function is to increase the heart-rate (the onlooker’s, not of the person wearing them).
The big thing about sportswear is ‘cool’. Often it is about cutting edge. So if the ‘cutting edge’ style looks like it won’t remain alive long enough to become a category by itself, it’s conveniently shoved into the sportswear category.
Sportswear is about slick and quick. It’s so fluid, so large, and so all-encompassing and messy (where are the boundaries?), that if there is a businessperson wanting to grow a brand fast, sportswear would be the category to follow.
It’s clearly a category for the Indian market, because there are plenty of bright young businesspeople who want to grow it big and quick.
I’m expecting a sportswear deluge. Just don’t ask me for figures or growth projections – let’s just say, they are elastic and accommodating like the category.
[Just to complete the story I began with – I got my friend’s fries, and wolfed them down, the waist elastic of the sports-inspired track pants expanding comfortably. None of that clubwear masquerading as sportswear for me – I was geared for the active sport of mall-crawl.
My friend meanwhile was going on about this particular store in New York, when I said, “I didn’t know they had shops for people interested is the social and historical study of mankind.” And that started a whole new argument – but that’s another story for another time.]
[This was the closing column “Checkout” for the inaugural issue of the Indian edition of Sportswear International.]
