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 Textile and Clothing Industry.
Textile and Clothing plays a major role in the Indian economy. The Textile sector contributes 14 per cent to industrial production and 4 per cent to GDP. With over 45 million people the industry is one of the largest sources of employment generation in the country. The industry accounts for nearly 13 per cent of total exports. The size of India’s textile market in 2014 was US$ 99 billion; the market is expected to expand at a CAGR of 9.6 per cent over 2014–23. Readymade Garments and Cotton textiles dominate textile exports. The Readymade Garments industry was the largest contributor to total textile and apparel exports from India in FY15. The segment had a share of 40 per cent in overall textile exports. Cotton and man-made textiles were also major contributors with shares of 31 per cent and 16 per cent, respectively. This category has an advertisement share of 1% on Television, 2% in Print medium and 1% in Radio.
Textile and Clothing category after witnessing a whopping 32% rise in 2014 from 2013 further increased by 26% in 2015. All four quarters see increase every year. It was observed that this category shows seasonal peaks in Q2 mainly because of Hosiery and Q4 due to Readymade Garments for every year.
In 2015 77 new advertisers, 143 new brands & 55 new Channels were added.
Hosiery and Readymade Garments contribute more than 60% of Ad duration. Interestingly in 2015 they added to above 70%. Moreover, the year 2015 was also the first time when Readymade Garments Ad duration crossed Hosieries Ad duration, a case never seen before in the last four years.
Readymade Garments has seasonality in the Fourth Quarter and the main drivers of 2015 were Aditya Birla Nuvo, Ramraj Cotton Mills, Pothy Clothing, Page Industries and Magpie Industries. This product group's peak in 2015 Q4 was contributed by Aditya Birla Nuvo which was not present in 2014 but came back with Ad duration of 257 Hrs. in 2015
Aditya Birla Nuvo, which was not present on TV in 2014, focused on TV and Radio and increased Readymade Gaments Ad Duration to maximum in 2015. Their main focus was on brands like Louis Philippe which was focused on Hindi and English language channels, Peter England on Hindi and South language channels, while Van Heusen was promoted on English and South language channels. Aditya Birla Nuvo used 117 channels for advertisements, which is maximum for 2015, such a trend was never seen before in last 3 years. Moreover, Aditya Birla Nuvo also increased its Ad duration on Radio by 95%, while its Print volume was stable.
Textile and Clothing in Print medium was stable and didn't witness any major difference in overall Ad volumes. The top five product groups of 2015 were Readymade Garments, Hosiery, Mattresses/Foam, Denim & Suitings. It has been observed that the seasonality peaks in Q2 because of Hosiery and Q4 due to Readymade Garments for every year. There were not many changes at product group level in Ad volumes for 2015. A total of 725 new advertisers were added and number of brands increased by 1139.
As far as Suitings as a product group is concerned, its print volumes are dropping year on year. However, there was an interesting change in the strategy of advertiser Siyaram Silk Mills as they moved their focus from Suitings to Readymade Garments in 2015. Siyaram, with 20% Ad Volume of Readymade Garments in 2011 has increased it to 62% in 2015, while its Suitings on other hand has dropped from 78% to 32% in 2015. In Suitings it focused on its brand Siyaram J. Hampstead and Siyaram Suitings, but in Readymade Garments it focuses on brands Oxemberg Readymade and Siyaram Readymade. When we look at the competitor in suitings, it is Raymonds, which also saw drop in Print volume but, it increased its focus on TV. Raymonds which promoted its brand under Raymonds Ceremonial Collection and Raymond Suitings, witnessed a 67% drop in Ad volumes in Print while increasing its Ad Duration by 13% on TV in 2015.
Textile and Clothing on Radio increased by 20% in 2015 as compared to 2014. Q-3 and Q-4 of 2015 witnessed 36% and 18% increase in Ad duration respectively. Readymade Garments, Mattresses/Foam, Furnishing, Suitings and Hosiery were the top 5 product groups for 2015 on Radio. Readymade Garments which has a 44% share of Ad Duration on Radio increased by 18% in 2015. Gini & Jony, a leading Advertiser in Readymade Garments increased its Ad duration by 324% in 2015, out of which 68% was used only in Q-4 of 2015. They have promoted their brands under name Gini & Jony Range of Products.
Mattresses/Foam saw a whopping 155% increase in its Ad duration on Radio and the main contributor for the increase was Advertiser Peps Industries Pvt. Ltd., which increased its Ad duration by 150% promoting its Brand Peps Mattresses. Another advertiser in Mattresses/Foam, Sheela Foam Pvt. Ltd., has changed its focus from Mattresses/Foam to Furnishings. It has not reduced the Ad duration but has stopped promoting its brand Sleepwell Mattresses and focused on Sleepwell Range.
Source: TAM Media Research, analysis conducted by S group, an analytical arm of TAM Media Research
Data Sources: TAM AdEx, India Brand Equity Foundation
Period: Jan' 2011 to Dec'2015