1. Threat of new entrants: The India lingerie industry has been flooded with brands in the past few years. The evolution of brands in the Indian lingerie industry can be divided into two parts: International brands and Indian brands.
Many international brands have established their footing in the Indian market. The international brands like Triumph and La Senza see India to be a market of huge potential. These brands have already established themselves very well in the market and have occupied a good share. So, the industry could see more international brands entering the Indian market. The Indian market is very lucrative and with the FDI regulations being relaxed, it is a lot easier for brands to make an entry.20% With the arrival of international brands, there are a lot Indian brands that have surfaced in the past few years. Be it the Bwitch brand of Satya Paul or Beyouty brand of Nischal Puri, many indigenous players are seeing it easy to enter the lingerie market. This has been possible due to go the growth that the lingerie market is seeing.. Also, it is easier to launch a brand in the market these days. The capital required to launch a brand can easily be obtained through banks or
investors. Launching is just one part; manufacturing can easily be outsourced to plethora of manufacturers. Therefore, the cost of setting up a plant can be avoided. And, since most the market is unorganized, there is enough scope for new brands in the market. “I feel the market is so big that at least 2-3 more brands can be easily accommodated in the
space.” Mr. Nischal Puri, CEO, Brandis . Therefore, bearing the above points in minds, it is relatively easier for new entrants to enter the market and launch brands. The barriers to entry are not that strong. However if the entrant wants to set up a manufacturing plant, the barriers to entry are higher. This is because setting up a plant would require a lot of
initial capital and infrastructure which might not be readily available.
1. Threat of new entrants: The India lingerie industry has been flooded with brands in the past few years. The evolution of brands in the Indian lingerie industry can be divided into two parts: International brands and Indian brands.Many international brands have established their footing in the Indian market. The international brands like Triumph and La Senza see India to be a market of huge potential. These brands have already established themselves very well in the market and have occupied a good share. So, the industry could see more international brands entering the Indian market. The Indian market is very lucrative and with the FDI regulations being relaxed, it is a lot easier for brands to make an entry.20% With the arrival of international brands, there are a lot Indian brands that have surfaced in the past few years. Be it the Bwitch brand of Satya Paul or Beyouty brand of Nischal Puri, many indigenous players are seeing it easy to enter the lingerie market. This has been possible due to go the growth that the lingerie market is seeing.. Also, it is easier to launch a brand in the market these days. The capital required to launch a brand can easily be obtained through banks orinvestors. Launching is just one part; manufacturing can easily be outsourced to plethora of manufacturers. Therefore, the cost of setting up a plant can be avoided. And, since most the market is unorganized, there is enough scope for new brands in the market. “I feel the market is so big that at least 2-3 more brands can be easily accommodated in thespace.” Mr. Nischal Puri, CEO, Brandis . Therefore, bearing the above points in minds, it is relatively easier for new entrants to enter the market and launch brands. The barriers to entry are not that strong. However if the entrant wants to set up a manufacturing plant, the barriers to entry are higher. This is because setting up a plant would require a lot ofinitial capital and infrastructure which might not be readily available.
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