exchange4media.com and Strategy Group, the Analytical Arm of TAM Media Research, jointly bring you a weekly column 'S-Group Insights' on Advertising Trends of different Product Categories. This column will be published every Tuesday and aims to aid advertisers, and media agencies understand changes in Media Consumption patterns leading to Scientific Advertising Investments. In the current column, we take a look at the textiles and clothing industry.
The textiles and clothing industry is the second most important economic activity in the country in terms of employment generation (after agriculture). It is also one of the major sources of export earnings for the country. The industry realized export earnings worth US$ 41.4 billion in 2014-15, a growth of 5.4 per cent, as per The Cotton Textiles Export Promotion Council (Texprocil). The Indian textiles industry, currently estimated at around US$ 108 billion, is expected to reach US$ 223 billion by 2021. It contributes approximately 5 per cent to India’s gross domestic product (GDP), and 14 per cent to overall Index of Industrial Production (IIP). The Indian textile industry has the potential to reach US$ 500 billion in size according to a study by Wazir Advisors and PCI Xylenes & Polyester. The growth implies domestic sales to rise to US$ 315 billion from currently US$ 68 billion.
Therefore, with such positive projections, this category has an advertisement share of 1% on Television, 2% in Print medium and 1% in Radio.
Textile & Clothing witnessed a whopping 32% rise in 2014 from 2013 which was more or less stable in the previous years. It was observed that this category shows seasonal peaks in Q2 mainly because of Hosiery & Q4 due to Readymade garments of every year. There is a growth of at least 30% in 4th quarter as compared to 2nd. This year interestingly, we can see that there is a steep growth in total Ad duration in Q2 which can largely benefit Q4.
In 2015 till 2nd quarter 29 new advertisers, 60 brands & 24 Channels were added. Hosiery & Readymade Garments contribute more than 60% of Ad duration. They added to nearly 70% in 2014. Denim which was at 12% severely fell to 3% due to Levis Strauss.
The main contributors of Hosiery product group are Dollar Industries , J G Hosiery & Biswanath Hosiery. Page Industries a new entrant in 2014 featured in top 5 advertisers and contributed to 6% of total Ad duration.
In 2015 Q1 & Q2 saw a new entrant Saralee Apparels featuring in top 6 drivers and contributing 6% to Ad duration.
Readymade Garments which has a seasonality in 4th Quarter, and the main drivers of 2014 were Levis Strauss, Page Industries, Ramraj Cotton Mills, Raymond Apparel, Pothy Clothing & Zodiac Clothing. This product group witnessed an unusual peak in 2015 Q2 which is comparable to 2014 Q4. 2015 Q2 witnessed the peak due to 2 new entrants Magpie Fashion and Dollar Industries contributing to 7% and 6% respectively.
South Regional was largely preferred by Ramraj Cotton Mills & Pothy Clothing, While English Entertainment was preferred by Levis Strauss, Page Industries, Raymond Apparels & Zodiac Clothing.
Textile & Clothing are increasingly using Print for advertisements. After a drop of 5% in 2012 it saw 13% increase in 2013 and was stable in 2014. It follows the similar seasonality in Q2 & Q4 as in TV.
236 new Advertisers & 390 Brands were added in Q1 & Q2 of 2015.
In Print Readymade Garments is main driver with share of above 45% and followed by Hosieries with a share of above 15%.
Readymade Garments in Print also has a seasonality peak in 4th quarter as in TV.As we can see the Ad Volume increased by 16% and 8 % in 2013 & 2014 respectively.
Hosiery contributes to more than 15% in Ad Volume share on print and is stable over the years. Page Industries in Hosiery product group which was previously present only on Print media have now made presence in TV as well.
Bennet, Coleman which used to be the major publication used by Page Industries have heavily cut down post 2011.
The drop in print medium can be attributed to lower advertisements in Bennett, Coleman.