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Designer desire: Indofashion Inc.
The Indian fashion industry needs corporatisation and investment by business houses. Only then can it hope to scale global heights.
The fashion industry in India is growing, but support from the corporate sector hasn't been encouraging. There are some developments, but there's much more to be done. The present scenario With the advent of the Fashion Design Council of India (FDCI) and Lakme India Fashion Week (LIFW) about six years ago, fashion is now increasingly being seen as serious business. In sync with global trends, several designers are making and retailing prêt a porter garments along with their signature lines.
However, without adequate support from corporates, production, marketing and retailing of readyto-wear lines on a major scale will remain a distant dream as it involves heavy capital expenditure. In India, designers themselves are involved in marketing, PR and brand building. Western model In the West, Pinault-Printemps-Redoute SA (PPR), which has its roots in the timber business, owns Gucci and Yves Saint Laurent while PhillipsVan Heusen Corporation has Calvin Klein. Moet HenesseyLouis Vuitton (LVMH) owns labels like Dior, Loewe, Celine, Givenchy and Kenzo. The Marzotto Group owns labels like Valentino and Hugo Boss.
"The fashion industry is structured in the West, with corporates owning and managing several designer labels," says fashion consultant and former FDCI chief Vinod Kaul. "If Indian fashion has to progress, it needs specialised hands in production, quality control, administration and marketing. Sadly, fashion is still seen as a frivolous venture by corporates and they're reluctant to invest."
Small start in India, things are changing slowly. Genesis Colors (which exports neckties to Dior, Trussardi, Donna Karan and Ungaro, and is official distributor of neckwear for Louis Phillippe, Van Heusen and Allen Solly) took over the fashion label Satya Paul in 2002. More recently, the company took over the label of Mumbai-based Deepika Gehani. "We're in the process of taking over two more labels this year," says Sanjay Kapur, director, Genesis Colors. "The world over, fashion is run like any other business. The creative person concentrates on his job while professionals take care of inventory management, marketing and selling, and administration."
Saks India, which has been doing R&D for Armani, Ralph Rucci, Gianfranco Ferre and Ellie Saab, after having managed designers Manish Malhotra and Anjali Kalia, is now managing Delhi designer Aparna Chandra. Saks India CEO Sam Joseph (who was Rohit Bal's CEO) says his company will take over Shahab Durazi Couture by April. "We manage, market and retail these labels. For this we take over the entire process and the staff is on our payrolls," says Joseph. He adds that the investment per label will be about Rs 2-3 crore. "We're also looking at a managing and marketing license agree ment with another label for LIFW."
Why it's important largescale production needs costly machinery for various processes like fabric cutting, printing, dyeing, button holing/stitching, dry cleaning etc. Funds are also needed for procuring raw materials in bulk. "Other than capital investment, there's also intangible expenditure like advertisements for brand building," says Kaul.
A sizeable sum is needed for brand building through events, promotions and advertising. Element of doubt The flip side: Many designers fear their labels will go out of their hands. Also, there's the financial aspect. "The first thing designers ask is how much salary is to be paid for the service. The problem also is, most designers in India consider themselves good businessmen," sums up Joseph.
