Thursday, 4 February 2016

Denim Industry

     Global denim industry is growing at CAGR 2.1 % since 2007 & it is expected to grow further at CAGR 2.19% to reach 60 Billion by 2020 . North America & Europe are the two major markets having~55% market share. It is dominated by jeans segment with more than 85% share while other emerging segments have small market share in industry. Total of 2.1 billion pairs of jeans has been consumed in the year 2014. US & Europe consumes more than 55% of the denim jeans.US is the biggest market for denim fashion, with per capita denim consumption is 8 pairs. Denim purchase is driven by factors such as fit, comfort, price, durability &quality. Germany ,France ,UK are major markets in western Europe while eastern European countries such as Turkey, Tunisia are key sourcing destinations for Europe. China, Turkey, Brazil ,Vietnam ,India & Pakistan are major suppliers with more than 50 % of the global denim production..
     Indian denim industry is one of the fastest growing having CAGR of 21.1% (2011-2018). It is projected to grow at 14.8% CAGR (2013-18) and expected to reach 4.8 USD billion market. It is characterized by domination of men's’ wear market 60% presence of unbranded players, low market penetration. It accounts for 5 % of the total apparel market in the country and also had 3% share in global denim industry. Mega metros & metro cities contributes 49 % of the market share in India. Men’s segment holds 85% share. Purchase is driven by increasing disposable income, westernization of work culture and the ensuing rise in popularity of denim jeans as business casual wear. 'Arvind' is one of the major players in Indian Market.
     Another feature is that 60 % market share lies with unbranded denim players operating on the lower price segment where awareness of quality of fabric, finishing and washes, design and fit are relatively low. With population of 1.2 billion & per ca pita consumption still much low (0.3), there is a huge scope for growth in domestic market itself .
     Denim Trade has shown negative growth. Export of denim fabric declined at CAGR of -2.74% while import declined at-17% due to low demand in western countries. Overall Export of Denim fabric has declined at CAGR of -2.74 % from USD 5 billion to USD 4.6 billion while import declined at CAGR of -17 % between 2011-14 from USD 4.4 billion to USD 2.5 billion mainly due to 3 main reasons. first, Popularity of low-cost knitted wear which has gained considerable market share. Secondly. Oversupply situation. Demand is growing at 3-5 % while supply is growing at 6-7 % . Lastly, Trade of denim containing more than 85% cotton has been declining due to introduction of man made synthetic fiber and its growing acceptability by consumers.
     China dominates the export and import of denim fabric having woven denim cotton less than 85%. China is the leader in  trade of denim fabric and contributed 54% of export while 41% o import in this category. China, India, Turkey, Japan, Italy, India, are key exporters in the segment. More than 50 % of denim is being produced in the region mainly because of ample availability of raw material, low cost of semi skilled & skilled labor and favorable duty structure. China , Turkey ,Columbia , Cambodia, Mexico are key importers. Imported fabric is being used to manufacture apparels such as jeans and other accessories and it is then exported to other nations such as Eu-28, USA, China etc. Overall trade of denim fabric having more than 85% cotton has declined due to introduction of synthetic fiber. 
China is the key trading country contributing 30% of total export & 21% of imports 
in this category in year 2014. The overall trade of this segment has declined due increase use of man made fiber in making of denim fabric. China, Turkey ,Tunisia, Mexico ,Italy are key importers where Imported fabric is being used to manufacture apparels such and then exported to other nations such as Eu-28, USA, China etc.
     The process flow in the making of denim includes the step by step process and technologies involved in making of denim fabric. It includes processes such as Spinning, Dye beam warping, Ball warping, Beam Warping, Rope dying, Beam dying, Slasher dying Slashing(un dyed), Re beaming , Slashing, Finishing, Desizing, Dying Finishing Finished fabric operations.

(See Below for detail power point presentation)

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