Interview with
Ravi Rajgopal, Head, Product Procurement and Sourcing
At the end of August, the Indian Business Blog
“Track In” published a note by Ravi Prakash
“My Shirt says ‘Made in India’” . This is an abundance of notable information:
- Different attires for different occasions: 13% of Indians say that they wear similar clothing at work, social occasions etc compared to 40% of Chinese consumers.
- A family activity: 70% of us go shopping with family, and 74%, more than twice the average of China, say that shopping is the best way to spend time with family.
- Relatively high spending per person: Correspondents say that they spent around Rs. 8000 last year, which is comparatively high by Indian standards I would imagine.
- Quality Test: 50% of Indian consumers they can access the quality of the garment without knowing taking its cost into account.
- Foreign Brands: More than 50% of Indian said that foreign brands are of superior quality and value than local brands.
We interviewed Mr.
Ravi Rajgopal, Head,
Lifeis Product Procurement and Sourcing, and asked him to share his thoughts: on these and other things; how our
Lifeis business correlates, and where is
Lifeis Style Brand that is being created.
It is common that the most of international travellers from India are buying cotton-washed trousers from
GAP Inc. (Banana Republic),
Tommy Hilfiger in the USA , by paying a very big price , when compared to the export price given to these brands for the products exported from Indian exporters. This was the sentiment when the
Color Plus , was born in 1993. Revolutionary change into smart cottons was a complete overhaul of Indian market. The company introduced and maintains high quality standards and never compromises on them. Besides that, prices are reasonable for the quality given by the brand. Naturally, this and similar brands should come to the market and compete with international brands both in India and abroad. And it is happening now.
India has a very specific apparel market – this is defined by various cultures that differ all over: North, South, West and East – all of them have different taste for colors and dressing methods. The result is obvious – similar dressing patterns, colors and styles are of a very low percentage in India. Thus, an avid apparel designer is faced with a challenging task when thinking about a new brand: i.e. it is imperative to consider the overall market in India, crafting the range and colors accordingly. When looking at the market we have to note that at this time we have a number of superior domestic brands: Color Plus, Raymonds, Wills Lifestyle, Pantaloon Retail – just to name a few – who play a vital role; as well as numerous international players. However, in my thinking, the time is already coming when Indian domestic brands are being recognized internationally – and this is essentially due to their conscious quality policies.
Lifeis a new company and we are entering the Indian market completely understanding its peculiarities, for among our designer team we have people who are able to pick up the most promising and trendy features of the market and satisfy it accordingly.
Talking about the market, I want to note that the average buying power of Indians has drastically increased over the years. About a decade ago, 35-40 years old people had the opportunity to shop often, access the brands. Nowadays, as we witness the changes in IT-industry, software, and the general fast pace of Indian economy – just this latest news
‘July factory output beats expectations’ – brings new expectations – and adds to the fact that the buying power starts at the age group of 23 and onwards.
Media and advertising play now an important role in life of Indians. The consumers are becoming more and more brand aware; and they spend on clothing more than before; thus, the average lifetime of the clothes in India becomes shorter – consequently – the clothes' market is drastically expanding. It is noteworthy to note, that in many cases the quality standards of Indian clothes are better that some of the foreign brands, but extensive advertising campaigns and the inherent human quality to show off, result in preference for foreign brands. However, here lies one huge obstacle – price. Thus, international brands are not able to capture the middle class market which is now being cautiously tapped by groups like Pantaloon, Reliance, etc.
To add more to the situation, new problems are eminent: increase in the price of cotton, yarn manufacturing, garment making, etc. Though, the most prominent one is the retail spacing. Indeed, its high price directly affects the cost of products, and as the result, the brands are being sold at excessive values. And here comes Lifeis with its Direct Selling Concept. Quality is the Mantra of our business – and at the same time we avoid all associated expenses: retail spacing, distributor margins, retail margins, etc., providing the quality product at a very competitive price.
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