Spg Denim

“To study the marketing & advertising strategy &

To identify the innovative approaches in product o�ering of Denim brands”

Submitted byDipraj Sinha, Sanjeet Singh, Mukesh Dhurve

MFM-III

Under the supervision of MS. Harleen Sahani

Submitted toDepartment of Fashion Management Studies (FMS)

National Institute of Fashion Technology (NIFT)(Ministry of Textiles, Govt. of India)

GH-0 Road, Behind InfocityGandhinagar 382007. Gujarat

http://www.nift.ac.in

Acknowledgement

Our research and documentation would not have been possible without the guidance and help of a few people who not only provided us with proper knowledge about the �elds but also with many cherishable memories.

We would like to express our sincere gratitude to our college, National Institute of Fashion Technology, Gandhinagar, for pro-viding us with the opportunity to conduct a research on Denim brands.

We would like to express our sincere gratitude NIFT, Gandhinagar for providing us with the opportunity to conduct this research.We heartly thank Ms.Harleen Sahani, Assistant professor of National Institute Of Fashion Technology, Ministry Of Textiles, Government of India, for encouraging us towards craft initiative works.

INTRODUCTION

Jeans are trousers typically made from denim or dungaree cloth. Often the term "jeans" refers to a particular style of pants, called "blue jeans," which were invented by Jacob Davis in 1871 and patented by Davis and Levi Strauss on May 20, 1873.

Originally designed for cowboys and miners, jeans became popular in the 1950s among teenagers, especially members of the greaser subculture. Jeans were a common fashion item in the 1960s Hippie subculture and they continued to be popular in the 1970s and 1980s youth subcultures of punk rock and heavy metal.

Historic brands include Levi's, Lee, and Wrangler. In the 2010s, jeans remain a popular fashion item, and they come in various �ts, including skinny, tapered, slim, straight, boot cut, cigarette bottom, narrow bottom, low waist, anti-�t, and �are.

"Distressed" (visibly aged and worn, but still intact and functional) jean trousers have become increasingly fashionable, making pre-sale "factory distressing" a common feature in com-mercially sold jeans.

Jeans are now a very popular article of casual dress around the world. They come in many styles and colours. How-ever, blue jeans are particularly identi-�ed with American culture, especially the Old West.

As well, although jeans are mostly known as a fashion garment in the 2010s, they are still worn as protective garments by some individuals, such as cattle ranch workers and motorcycle riders, due to their high durability as compared to other common fabrics.

LITERATURE REVIEW

The Indian denim industry is showing continual growth trends over the years. With newer territories, technologies and trends, the market is only going to see some exciting moments ahead there is a buzz in the industry. Kishore Biyani has 35 fashion brands with a combined turn-over of over R7, 000 crore.

“What India needs is more denim brands. Today, denim wear is going deeper into the rural markets. Not only men, even teenage girls in rural areas are opting for denim wear. This calls for more brands that can cater to the demand.

The denim market in India is set to nearly double to over Rs 13,000 crore in the next three years (by 2017), owing primarily to youngsters’ obsession for the cult fabric. The boom will be fuelled by not only an increasing demand from small cities and rural areas, but also acceptance of the fabric at workplaces, the study adds.

In terms of volumes, the denim market is estimated at 300 million pairs of jeans, which is projected to grow to 550-600 million by 2015We are the second-largest producers of denims after China. Of the total denims manufactured in India, 700 million metres are used in the domestic market and the rest is exported.”

This is one fabric that will never complete-ly go out of fashion. “The denim market in India is growing at a very fast pace, with the market for branded jeans constituting over R2, 000 crore in the country. India is growing at the rate of 10-15% per year

Market size and growth

Denim is of the most promising category in India’s apparel market. In 2014, the denim market of India was worth `13,500 Cr. which accounts for 5 percent of the total apparel market of the country. The market is projected to grow at a CAGR of 15 percent to become 27,200Cr. markets in 2018.

The denim market in India is skewed towards men’s segments with 85 percent contribution coming from it. Women’s denim segment contributes 9 percent to the market and the kids segment the rest 6 percent. The women’s and kid’s denim segments are expected to witness higher growth rates due to their lower base and increasing focus of brands and retailers on those segments

COMPARISON OF DENIM CONSUMPTION In general the western lifestyle and western fashion has accelerated the trend of casuali-sation across the globe. This trend has boost-ed the consumption of casual fashion appar-el like denims, dress shirts, tees, casual shirts among both men and women consumers in all developing countries including India. The average number of denim items owned by Indian consumer is much lower in compari-son to consuming market of the United States, Europe etc. The number is even lower than countries like Brazil and China. This di�erence in the number demonstrates the huge potential that exists for denim in the domestic market.

CITY-WISE DISTRIBUTION OF DENIM MARKET

The value share of denim market is skewed in favour of mega metros and metros which account for almost half of the total denim market at a share of 49 percent. Though the markets of other urban areas and rural India contribute high in volume terms, their com-bined share in market value is only 51 percent. As the penetration of denim catego-ry and the awareness of denim quality increases in those cities and rural India, their share in market value will start increasing with more number of consumers willing to pay premium for the quality, design and �t.

PRESENCE OF BRANDS

In India unbranded denim products dominate the market with around 60 percent share of the market. The share of brands in denim market stands at 40 percent. Most of the unbranded players operate on the lower price segment of the market where awareness of quality of fabric, �nishing and washes, design and �t are relatively low.

The emergence of semi-urban clusters, areas having less number of farming communities, across the country has opened a plethora of opportunities for regional brands and retailers. A typical denim consumer of the semi-urban clus-ter demonstrates a blend of the characteristics of urban and rural consumers; like an urban consumer he or she shows awareness of brand and product quality and like a rural consumer pricing and a�ordability plays a crucial role in his or her purchase decisions.

The regional brands have focusing to cater to these typical requirements of the semi-urban consumers. However presence of lots of unbranded players in such markets it a market of intense competition to many national level brands

DRIVING FACTORS FOR DENIM MARKET

Some of the key driving factors for the denim market in India are:An aspiration youth (15-29 year olds) with higher spending power than previous generations, which make 26 percent of the consuming popu-lation

A wide range of consumer segment that consid-er denim as an apparel of choice owing to its comfort and style. Favoured preference for denim amongst youth owing to its versatile asso-ciation. Increasing usage of denim products by women and youth in smaller cities and rural India

DENIM VALUE CHAIN IN INDIA

India has an integrated value chain for denim products starting from �bre to retail. Denim is primarily produced from cotton and India is expected to overcome China as the single largest producer of cotton the world in 2014. The coun-try is the second largest producer of cotton yarn. The denim fabric production capacity of India is more than 1,000 million meters per year, and India is still witnessing entrance of more denim fabric manufacturers in the industry. Denim fabric production in India is concentrated in the western and northern parts of the country with more than 45 percent contribution coming from Gujarat alone where Ahmadabad is the produc-tion hub.

Denim apparel production in India remains a fragmented industry where only 20-30 percent of denim apparel is manu-factured in the organised units. The denim apparel production activities are concen-trated in Delhi and NCR, Mumbai, Banga-lore and Ahmadabad.

SOME OF THE KEY TRENDS IN DENIM MARKET

In India most of the denim manufacturers focus on the domestic markets as the value realisation remains higher in domestic market than in export marketsIn the recent times the industry has witnessed entrance of new fabric manu-facturers which is expected to make the market for denim fabric more price com-petitive in the coming yearsCotton remains the �bre of choice in denim apparel. In blended denim fabrics polyester is being used as weft threadsThe demand for stretch denim is growing at a faster rate in India market due to its comfort and � t characteristicsThe colour of denim jeans is no longer limited to traditional blue colours. Indian youth has started accepting denim in di�erent colours including green, red, yellow etc.

TECHNICAL ASPECTS

Process of Manufacture of denim garments is like any other garment except that these garments require special care and �nishes. The basic outline of the operations for denim garments in general is given below. 1. Pattern design and pattern making. 2. Cloth cutting by mechanical process. 3.Sewing by high-speed industrial sewing machine. 4. Trimming and inspection. 5.Ironing and pressing as �nishing process.

Designers use �ve elements to create a design that will stimulate the potential consumer to buy like colour, silhouette, drape, texture and tone. Besides these the designer selects buttons, uppers, snaps, thread lace, tapes, braids, medallions, sequins and a variety of ornaments and closures and decorative devic-es to impart the desired design e�ect. Cutting involves three basic operations, i.e. making the marker, spreading the fabric and chopping fabric into the marked sections.

There are six types of machines available to chop or cut a lay into the component parts of the market like rotary blade machine, vertical reciprocal blade machines, band knives, similar to band– saws, die clickers systems with straight blades and automated computerised laser beam cutting machines.

The sewing operation is performed to join the individual cut components in to desired shape by using power operated sewing machine. Fusing and cementing are processes for stitching or decorative seaming.

In fusing, the seam bond on decoration is formed by melting some �bre or �nish content in the material in a manner that joins the sections or decorates in the desired area. In cementing, the bond or decoration is made by an adhesive, such as cement, glue on plastic which is applied to the materials during or immediately preceding the cementing process.

Fusing is either by direct heat, by hot head fusing presses, in which pressure surface area is heated by electric heating grade or steam. Cementing processes use mechanical pressure systems with inbuilt head application depending on the adhe-sive materials used.

Moulding is a process that changes the surface character to photography of a garment of one of its stitch sections by application of heat, moisture or pressure. Pressing, pleating, blocking man-gling, steaming, creasing, curing and casting curing and casting are trade terms for various moulding processes. Pressing has two major divisions.

Buck press is a machine for pressing a garment or section between two contoured, heated pres-sure surfaces that may have steam vacuum systems in either or both surface. In the �eld of casual fashion the fade look has signi�cant value.

Previously the faded e�ect used to come after repeated washing of the garment. Now we can get the fade e�ects instantly by latest washing technology and it plays a very important role in the saleability of the denim garment. There are many types of washes.

The prominently used are Hard Wash, Half Bleach, Full Bleach, Marble Bleach, Acid Wash, Stone Wash, Chemical Wash, Ice Wash, Moon Wash, Bright Wash, Gun Wash, Camel Wash, Ink Wash etc.

Lee Mercantile Company was founded by Henry David Lee in 1889, when Lee opened his �rst garment factory in Salina, Kansas, producing dungarees and jackets.

In 1913, the Union-All work jumpsuit was created, followed by the �rst-ever "Overall" in 1920 - laying the foundation for Lee's early growth. Also in 1920, the Buddy Lee doll was launched for promotional use, but quickly became a popular play doll.

Through the '20s, Lee introduced many new innova-tions to manufactured denim, most notably the zipper �y. Throughout the '30s and '40s Lee continued to build on their brand, becoming the nation's #1 manufacturer of work clothes.

The decade of the '50s was a time of intense expan-sion for Lee as the company ventured into casual wear. Lee expanded its presence throughout the '60s, spreading to 51 countries and consolidating with VF Corporation in 1969.

The company continued to expand its fashion lines throughout the '70s, '80s and '90s, launching Lee National Denim Day in 1996. Today's Lee is all about bringing more �ts, styles, �nishes, features and choic-es than ever before to market.

Lee History

OBJECTIVE

To study the marketing & advertising strategy of denim brand LeeTo identify the innovative approaches in product o�ering to the customer across India

RESEARCH METHODOLOGY

Research Type Exploratory research design was used as it relies on secondary research such as reviewing available litera-ture and/or data, and qualitative as well as quantitative research approaches such as informal discussions and personal

interview.

PRIMARY RESEARCH

Interview of category head denim of Lee brand

Questionnaire and its

interpretation

In conversation with Mr. Nishank Ponappa

Name:- Nishank Ponappa

Age: 28

Pro�le: - category head Denim India(Lee)

Email Id-

Company – VF Brands India

1-Lee varies in its brand positioning across the world. How do you tackle this disparity?

- Positioning and the development of category essence entails the association of the brand to other objects that collectively represent a consumer goal. However, for category essence, the connection is among objects that imply the goal in using the category rather than the brand. To illustrate category essence, for example of the beer category for 18- to 34-year-old menCategory essence uses insight about how the category �ts with consumers' goals as a brand's point of di�erence. The assumption is that if consumers perceive that a brand is positioned in a manner that is sensitive to their concerns, the brand is viewed as the solution to those concerns. For exam-ple, Lee jeans showed the di�culties women encountered when trying to get into a pair of jeans. Consumers were urged to buy Lee jeans to remedy this problem, though no rationale for this choice was provided.

2-Why did your tapered �t category fail to take o� in India?

Because we are late in the market when we launch this �t it is almost out of fashion in the Indian market.

3-You’ve launched multiple �ts in India over the years. What’s been purpose for that?

The main competitor of Lee is Levis. Levis come into Indian market after Lee to become a market leader Levis started launched di�erent variety of �ts or fabric in to Indian market so compete with them we launched more �t than Levis. Result of that our sales increases and we become again no-1 in India market

4-As more and more of what Lee’s sells at “a�ordable price” your ability to manufacture and source them at lower costs will determine more of your success. But with workers across Asia rebelling against lower wages how long can you o�er “a�ordable prices”?

- We actually source fabric from Arvind and Raymond and after that we do experiment with that fabric so do not cost much that is why we o�er jeans at lowest cost but levis develops new denim fabric

For example- we give instruction to our fabric producer company for di�erent washes of denim, then they send fabric of the di�erent washes, it come up with di�erent shades and then produc-er send us the swatches of di�erent shades and then we select from them and develop garment from that.

5-Which type of innovation you did recently in product o�ering to customers

“Denim refreshment series” It is very innovative series we launched in India for spring summer 2015. it has quality of in summer it keep cool and in winter its keeps you hot and most important it is water repellent fabric .

6-What do you consider when you o�er such type of innovation & design.

Ans - Actually we consider many things when we develop new things to o�er to our customers but we consider mainly three things We study the current market trend, competitor’s analysis and we study the previous year style no sells on the basis of that we develop such type of fabric and product.

7-What is the motto behind Ad campaign of Lee denim brand

Ad we design according to our product we are going to o�er to our customers for example we recently launched denim series called Denim refreshment according to that we design ad or target customer promotions activities.

8-Which type of marketing strategy used by Lee

Road shows Personal marketingSocial media marketing

9-Which type of innovation do in marketing by Lee Brand?

Yes actually we do innovation but not too much on advertisement on print media or electronic media we focus on the store VM, layout of store, store ambi-ance, product display and promotions inside or outside the stores

10-How can you achieve new growth by discovering unexpected consumer insights?

Very nice question ask by you people actually its require lots of data mining our data research team do all the analysis on basis of style no, colour, �t and category wise this is the back bone of our industries on that basis of that we forecast our sale and develop products . this all Creat a new shopping system

LEARNING

The Indian denim industry is large, mature, and highly fragmented. In the India, denim sold is produced both in domestic and foreign locations. Due to global economic downturn, the ap-parel industry has been severely a�ected, but the condition of denim market is better as com-

pared to other apparel segments. Economic condition, demographic trends and pricing are the factors driving the apparel sales.

The report analyzes the denim jeans industry in the Indian. Market trends like introduction of new concepts, retail and apparel pricing and key drivers of denim market have been included.