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The Rediff Business Special/Nikhil Falerio

Changing corporate dress codes boost casual-wear mart

Cyrus Oshidar, creative director MTV India, is least bothered about his attire. From his apparel, you wouldn't make out if he is exercising his grey cells at work or relaxing at home. Like some other top executives in India Inc, he does not have to frown over what he would wear to work: whether it would be the crisp white shirt or the blue striped one, whether it would be the formal black trousers or the crackling, starched khakhi chinos, or whether the tie goes well with the ensemble or not.

His life is uncomplicated, without stress and as casual as possible. All this despite being the creative director of MTV Asia, for in his high-profile job he has to meet senior colleagues from across the Atlantic, senior executives from other companies and chair many a meeting.

Oshidar belongs to that fortunate, and growing, tribe of executives which reports to office in informal accouterments. This is a far cry from the official code a couple of years back, when the suit was a must. Today, cool casuals seem to be a part and parcel of corporate India. As Oshidar says, "When I am relaxed, I am able to think better and be more creative. My clothes do not restrain me."

Causal dressing is something most executives love to talk about these days. A dress code that most would die for, a dress code that is replacing the staid, old, boring formal, shirt and tie affair that has long dominated corporate India. A dress code that used to stifle executives and make them far too formal is slowly giving way to the casual attitude has breathed a rare freshness into corporate India. Or, you could call it a lack of dress code.

Says Meher Castellino, fashion consultant, "You can be casual and yet look smart. That is the essence of today: the cool, uncluttered look that was not possible with the formal wear that executives used to bogged down in till now."

This flexibility in the hitherto-rigid corporate culture has been brought about - to a large extent - by the entry of foreign readymade brands that have given corporate India the opportunity to experiment and relax with. It's a market that has grown manifold during the last three years ever since the MNC brands started grabbing shelf-space.

The move towards causal wear has sparked off a major boom in the Indian garments market. More and more companies have mushroomed trying to grab some portion of the growing Indian apparel pie.

The readymade market in the country for males witnessed a dramatic shift: from standard styles to more adventurous ones. Companies are no longer hesitant in launching the latest styles in India, immediately following their launch abroad. Growing at an exponential rate of 20 to 25 per cent per annum, the market size of the male readymade garment industry in the country is pegged at Rs 6 billion.

Take, for instance, Colour Plus. It entered the country in 1995, but has already expanded its range of cotton trousers and shirts to include the latest style favouring males: stain-free and wrinkle-free trousers and shirts. This new range of 'no stain, no wrinkle, 100% cotton men's wear from Color Plus is available at between Rs 1,450 and Rs 1,575 for shirts and Rs 1,791 and Rs 1,840 for the trousers.

As Kailash Bhatia, director Color Plus, says, "The stain-free range is another step in our endeavor to present the Indian male with a range of attire that matches international fashion trends, styling and quality."

The advantages of this new international range is that stains like grease, oil, tea coffee roll off the fabric and wrinkle-free material ensures that long hours of sitting do not show when you get up. Growing at an annual rate of 60 per cent, Color Plus is anticipating a turnover of Rs 360 million.

As Bhatia adds, "The Indian male is a man of considerable means. He travels widely and consumes products of international quality. This latest product is in keeping with those demands."

Color Plus is not the only company that is constantly upgrading its product range to meet the challenging demand of the Indian make. Look at cargo pants, which started in the West as functional, fashionable wear but now in India have become a status symbol. Just because Shah Rukh Khan wore it in Dil Se while wooing Malaika Arora, everyone and anyone in the country has to wear it.

For Levi's 30 per cent of its sales come from 'cargo-wear' sales and with a growth rate of 25 per cent and sales of 1.5 million unit denim and casual wear, Levi's is upbeat about its future in India.

Bangalore-based K G Denim, which faced a formidable challenge from the established brands such as Levi's, has seen its Trigger and Trevi brand of jeans become household names and grow at an annual rate of 72 per cent. Even established players like Pantaloon, distributors of John Miller shirts (sales Rs 180 million in 1998-99) and Pantaloon trousers (sale Rs 180 million in 1998-99) are witnessing a surge in demand to such an extent that the John Miller shirt has become the number one brand in the country.

The demand of men's readymade garments has seen traditional Indian companies take up the challenge and try to grab a chunk of this growing pie. Zodiac Clothing Company is investing Rs 2.5 million to increase the number of showrooms to 100 in March this year from its current strength of 75.

Zodiac launches 200 new shirts every 45 days. It is keenly eyeing the premium segment which its views as the niche area of the future. With a market share of 17 per cent, Zodiac offers a premium range of between Rs 545 to Rs 2,000.

This growth in the Indian casual wear market has also caught the attention of the French apparel-maker Lacoste. With 32 established boutiques in the country, Lacoste plans to add eight more each year. Lacoste aims at the upper end of the market. Its T-shirts cost anywhere between Rs 900 to Rs 1,500, jeans cost about Rs 1,900, Polo shirts are in the Rs 1,300-1,500 range and even the accessories begin at Rs 1,300.

Despite growing at 30 per cent annually, the French company is going all out to capture more market share. The latest entrant is the Rs 27-billion kurta (Rs 1,700) and pyjama (Rs 1,000) set exclusively for the Indian male.

If you think the action is only with the foreign brands, think again. A new breed of Indian start-ups is turning the Indian casual wear business on its head. Walk into the men's section of Shoppers Stop in Delhi or Bombay and you will find a slew of brands you did know existed. Provogue, Freelook, Scullers, Indigo Nation, Ironwood, Easies, TN Causal, Blackberry's…

The tremendous growth in the casual wear market highlighted an obvious opportunity: the growing need for easygoing attire. Says Dwarka Das Aggarwal, managing director of TN Casuals which notched up a turnover of Rs 300 million in two years of operations, "Men want the right cut and the right fabric. And that is what we aim to provide."

Already these Indian brands make up for almost Rs 1.90 billion of the Rs 6-billion readymade market. Moreover, these are strictly non-denim brands. That premium shops such as Shoppers Stop, Westside and others are willing to stock them is an indication that causal wear is here to stay.

Says B Nagesh, CEO, Shoppers Stop, "Customers are showing a growing preference for causal clothes, so we are devoting more and more shelf space to such apparel."

Consider some of these young Indian brands that have carved a niche for themselves in the Indian casual wear market in a very short period:

Though they may not be big, Nikhil and Nitin Mohan -- who set up Blackberry's in 1996 -- know that small is beautiful. In the four years since they started up they have carefully sniffed out the vacant positions -- first suits, then blazers and finally readymade trousers. Says Nikhil Mohan, "The customer is a sophisticated person. He is not merely buying a garment, he is buying a fashion. The trick is to win him over with new designs." This philosophy has worked. Today, Blackberry's sells 20,000 trousers each month, making it a leading brand, along with Arrow and Louis Philippe. Not content with its success, Blackberry's is enlarging its product range with trousers, hand-woven shirts and some other new styles. All in all, the Mohans are set to change the way men dress.

In April 1999, when Indigo Nation commenced operations with a Rs 150 million capital from venture capitalist Draper International, the chances of survival were slim. It did not own any manufacturing assets: everything was sourced. But this was the major difference. Indigo Nation paid attention to the smallest detail that other manufacturers ignored. So the company actively worked with factory owners in new product development, quality checks and the development of new features. The end result: quality products in two brands which cut across three price ranges -- Indigo Nation for the younger generation priced at Rs 449 and Rs 699. Scullers follows for the young executive priced at Rs 699 to Rs 899. The success of the brands is already a legend. Available at 500 outlets across India, at two exclusive shops in Dubai, and one exclusive store in Sri Lanka, Indigo Nation is already planning a new range of clothing. While it had targeted a profit of Rs 250 million by March 2000, it actually ended with Rs 270 million. It has set its sights on the Rs 1-billion mark for the next year. Start small, earn big seems to be the buzzword.

In 1983, when Avinash and Manju Goyal took the plunge into the kidswear market, they had no idea what the future held in store for them. They were new in the fashion business with no background in textiles. Today, the Goyal venture, Polki Garments, is worth Rs 200 million. The kidswear business was a good platform from where to launch the Freelook men's casual wear in 1997. This is where the Goyal displayed entrepreneurial skills. They know each of their 200 dealers by name. Soon the Freelook brand began spreading. It is also available at leading stores like Globus, Lifestyle and Shoppers Stop. Lately, the Goyals have started exporting to the Gulf. With a price tag of Rs 400 and less, Freelook has become a darling amongst the young yuppie crowd.

When Provogue shirts made it debut last year, it seemed that it had done its homework. It offered a complete shirt and trouser range with a look distinct from that of an Allen Solly or a Color Plus. Nikhil Chaturvedi had researched deep and hard, considering that just three years ago, in May 1997, his factory had been gutted and his future looked bleak. So how did they bounce back? He just chose the right fabric, polynosic, which felt easy on the skin, was durable and had the 'fall' of synthetic material. Then he took some hard decisions. He told distributors that he was willing to allow a 60-day credit period -- the norm is 45 days -- and margins of 20 per cent as against the industry policy of 15 per cent. Last but not the least, he would take back unsold stock. Admits Chaturvedi, "It was a big risk, but we had to take it to break into the market." And break in they did. Apart from roping in the current heartthrob Hrithik Roshan to model for their range of clothes, today the brand is available at 127 stores. As Chaturvedi says, "Sell lifestyle and people want it."

Clearly Indian brands have entered the market at a right time. Customers have grown bored with their wardrobe; dressing habits have undergone a sea change. Gone are the days when crisp white shirts, navy blue trousers and a maroon tie were de rigeur. Instead, more and more people are opting for a relaxed, more colorful look even at the workplace. People have realised that cottons and other fabrics, which breathe easy, are far better suited to the Indian weather conditions. Offices have relaxed the rules of dressing and as a result the formal wear segment has slowed down from 15 per cent a year back to 10 per cent today.

Says Nikhil Chaturvedi, managing director Provogue shirts, "Once a product is associated with the movers and shakers, everyone rushes to buy it. It becomes an aspiration product."

And as corporate India gets cooler by the day with executives unwinding at their offices like never before, manufacturers are getting hot under the collar trying to meet the burgeoning demand.

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