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Special story in "Denim Eye", prominent Apparel magazine on Mr. Zaverchand Haria.

Zeal Apparel is one of the oldest names in the kids wear business. Mr. Zaverchand Haria started it in 1978 as a proprietary concern. However, Mr. Haria's association with apparel business dates back as far as 1969. Mr. Haria a veteran in the business with nearly 33 years of experience in the garment business is perhaps one of the those who is best equipped to comment on the changing face of apparel market. The company manufactures formals and casuals for kids of age group 0-5 years and formal wear for children of ages up to 14 years.They market their garments under the brand name "Zeal" to the North, South, Gujarat and local Mumbai market. They also have exports to Saudi Arabia.

Market situation prevalent earlier(pre-1990's era)

As Mr. Haria took a walk down the memory lane, he went on to elucidate the kind of apparel market that existed several years ago. Those days there were very few players in the business. Most garment manufacturers were not formally educated. The level of awareness was low among both the manufacturers and the consumers. The Indian machines were used for manufacturing. There were quite some flaws in the garments produced. Manufacturing was a one-man show those days. The manufacturer himself performed the role of the producer, marketer, purchaser, handled his finances, etc. with the help of a few relatives. Those days people preferred tailors to ready-made garments, hence the prices had to be low and subsequently lower price margins.

Scenario post 1990

Change being the only constant in life, it is no surprise that things changed over the years. Every aspect of business has been influenced by the changing times. Enumerated below are the changes under the various head of activities.

Distribution

Earlier the manufacturer used to do it himself. Now most manufacturers have agents / distributors for this job. These distributors help the product in reaching out to as many people as possible. Earlier it was mainly based on trust and relationship and the service factor was low. While these days, the product is more important than the relationship and the service provided by the manufacturer (to the retailer) is extremely significant.

Retailing

Earlier the products were sold through family shops. But with the advent of large format stores, consumers were lured into these MBO's. Many manufacturers stocked their garments at these MBO's. Zeal is also available at Ebony and other leading departmental stores. There is a novelty factor attached with these stores. Consumers are getting more varieties under the same roof. People these days are very impressed by the presentation. However in India, the purchasing power of people is limited. Even abroad, the large format stores have witnessed their share of ups and downs. There is more awareness among people due to media influences. Pricing and service is absolutely important. Indian customers are calculative. Retailers are trying to compete with MBO's. There is not enough consumer spending. However the overall consumption levels have gone up. Initially the savings to expenditure ratio was 75%; 25% while now its 60%; 40% There is and will be a slow division of consumer who shop in MBO's and those who prefer smaller shops. The people's desire to buy has been propelled by the advertising efforts of the MNC brands.

Branding & Advertising

Every brand will become strong. However, it is not necessary that only those products that advertise will sell. It is possible that even the non-branded garments may have a better quality, but times are such that everybody has to build a brand. Advertising is not a cost; it is an investment that will yield rich dividends. The manufacturers have to make every effort to boost the visibility of their products. Advertising and promotional tools have to be used to grow in a fiercely competitive market. Zeal is yet to go in for television commercials but are well equipped with in-store advertising tools like catalogues, POP material etc.

Consumer orientation

Earlier the manufacturers used to manufacture garments and present it to the consumers. At that time it was difficult to sell things and required lot of salesmanship efforts. But how things have changed a lot with the consumer awareness on the rise. Consumers themselves demand certain type of garments, if a manufacturer can give it to him at an affordable price, then he can easily sell his products. Consumers definitely have become more demanding and want to check all the various alternatives before committing to a particular brand. It is possible to win customer loyalty through promotional efforts that increase the visibility of a brand.

Prices

Over the years the cost of manufacturing has gone up. But that is of course offset by the increase in the price of product. This is however mainly due to inflation. There has been one major cost item, which is advertising. Earlier there was no advertising but now this is an added item in the expense column. But it is an unavoidable expenditure. Also there has been an increase in the volume base. There has not been much change in the trade practices followed over the years.

Professionalism

Most of the people (first generation entrepreneurs) in the garment business have no or little formal education. However now the younger lot (second generation entrepreneurs) has some educational qualifications. Mr. Haria admits that though there is a lot of change in theory and practice. But their additional knowledge and increased awareness levels will give them a better perspective of the market.

Most important change

According to Mr. Zaverchand Haria the single most important change that has transformed the apparel market is the technological advancement. Earlier most of the work was done manually. Embroidery and other design work were handmade. Then few machines, of Indian origin were introduced. Though it helped speed up operations the quality of the output was not very good. But with the introduction of latest machines, the productivity had increased and the quality of goods came close to perfection. Also the designing has improved drastically improved. It has become so perfect that today very few people approach the tailor. More and more people opt for readymade garments. The quality of machines and fabrics has gone up. In fact these days it's becoming increasingly difficult to distinguish between Indian and foreign made garments.

Coping with the changing market

Every manufacturer needs to have a good product. Slowly the service provided to the traders is gaining importance. Also every brand has to be given enough limelight. The product should be given a boost by adequate promotions. Several small manufacturers don't have the budget to pursue major advertising spends but they must definitely go in for other less expensive options like posters and catalogues. This will increase visibility of their products.

Progress / Changes in the kids wear market

Consumers are spending more money especially for their children due to emotional reasons. While those days people had 7-8 children these days have 1-2 kids, this has also contributed to increased spending on the kids. While the Indian manufacturers have a multitude of patterns their volumes remain low, foreign companies on the other hand have only few patterns, which generate large volume sales.

Future trends

In future the Multi Brand Outlets will assume more importance. However this does not spell the death of the small retailers. Even now the small retailers have an opportunity to tap the booming retail business. Retailers must bring in lots of changes. Specialization is the buzzword in the times to come. If a shop caters exclusive to a particular segment, it can build a loyal shoppers segment. Even the family shops must come out of their shell. The going will be difficult for the Indian brands once more international brands make headway into the Indian market.The desire to wear foreign brands is deeply rooted in the psyche of most Indian consumers. Even those who can't afford their foreign labels, aspire to wear them. The Indian brands will have to struggle to protect their identities. Despite the trends of licensing and outsourcing, manufacturing will not fade away. There will be many manufacturers who will promote their brands. Even today, a large number of foreign companies outsource their garments from India. The current environment supports the trend of manufacturers turning to retailer. This will increase the branding efforts of the company. But those customers who want to compare the various products will seldom visit such stores. Mr. Haria said that it was hard to say whether in India the majority of the market will lie in the hands of few select brands. At present the market is too scattered, hence some consolidation is definitely in the offing. Moreover the Indian mind set has to change.