COTTON LIFESTYLE MONITOR  FAST FACTS

Global Lifestyle Monitor: India

With an estimated 1.2 billion consumers, India is home to 17% of the world's population, and data from the recent Global Lifestyle Monitor survey show an emerging, eager consumer base. One of the world's earliest large-scale textile manufacturers, India continues to influence cotton globally at every point along the supply chain, from agriculture to production through retail and down to the consumer. A prevailing force in the Indian economy is the rapidly growing consumer segment of young professionals who like shopping and have more disposable income. Survey responses from Indian consumers in five metropolitan cities (Bangalore, Chennai, Delhi, Kolkata, and Mumbai) highlight distinct differences in how these urban populations shop and what they buy, but also a common enduring preference for cotton.

PURCHASE PATTERNS

As a whole, India is still an underdeveloped and underserved retail market, but that is changing, especially for clothing and textiles. Of the total retail market in India, it is estimated that only 3%-7% is organized (including branded specialty stores, department stores and hypermarkets). The rest is considered unorganized, made up of informal stores, independent shops, and street markets. Among all retail segments, the clothing and textiles segment has the highest penetration of organized retailers; about 20% of the clothing and textile market is organized, according to AT Kearney. Global Lifestyle Monitor data show that consumer preference for organized retailers has more than doubled since 2001. Over time, independent stores have lost share to hypermarkets, while chain and specialty stores have garnered greater customer loyalty and prestige for their product offerings. This shift is a reflection of the influx of foreign single-brand retailer investment in India's largest cities, the increasing brand consciousness of Indian consumers and the demand for Western clothing styles.

Indian consumers spend about nine percent of their household budgets on clothing (compared to 3% in the U.S. and 10% in China), and in the Global Lifestyle Monitor survey, most consumers (70%) reported that they love shopping for clothes. Among all consumers surveyed, love of shopping is higher for organized retail shoppers (75%) than for unorganized retail shoppers (65%) and for consumers in Chennai (85%) and Mumbai (75%). Consumers in Mumbai shop the most frequently—40% of consumers reported shopping at least once per month. Although consumers in Chennai love to shop for clothing, only 16% reported shopping at least once per month. Respondents in Kolkata reported shopping the least frequently—only 6% shop once a month or more, and the majority (53%) shop for clothing only once every 4-6 months.

COTTON, A NATURAL PREFERENCE

Indian consumers are among the world's most fiber conscious; 86% consider it important to know the fiber content before buying clothing. To identify fiber content, 88% of Indian consumers rely on the touch and feel of the clothing, and 74% always or usually check the fiber content of the items before purchasing. Cotton is the clear favorite for Indian consumers shopping for clothing. Because it is cool and comfortable, most Indian consumers look for cotton when shopping for clothing, and cotton textiles dominate the apparel market. In a retail audit of organized retailers in Mumbai, 85% of clothing available contained cotton, and of those, 90% were made of 100% cotton. When asked to name the fiber best suited for today's fashions, 91% of Indian shoppers chose cotton, the highest percentage among all countries surveyed.

DEVELOPING DENIM

While denim, a cotton staple, is not a mainstay of consumer wardrobes in India, growth in ownership and wearing frequency over the past few years suggests a promising future in Indian wardrobes. From 2001 to 2010, the percent of consumers reporting they love or enjoy wearing denim has more than doubled, from 13% to 29%, on average, though the preference is significantly stronger for male consumers (44% versus 14% of female consumers). During the same time period, the percentage of Indian consumers purchasing jeans has tripled, from 10% to 30%. Among all regions surveyed, consumers in Mumbai own the most denim items, an average of 11, and 40% said they like or love wearing denim.

Male consumers in India own more denim and wear denim more often than female consumers. Indian men reported owning an average of four denim bottoms (compared to 1 for women) and wearing denim bottoms an average of 2.5 days per week. Greater acceptance of Western fashion for Indian men than for Indian women may account for this difference. In 2010, 42% of survey respondents reported purchasing traditional Indian clothing for themselves, and among these respondents, 89% were women.

With the increasing brand consciousness of Indian consumers and demand for Western clothing styles, denim's popularity in India is expected to continue to grow. Alongside the recent news of India's allowance of direct international investment of multi-brand retailers into India's retail sector, consumers in India can look forward to greater access to international brands, retailers and products. Indians' evolving preferences for how they procure, select and wear clothing are modernizing the retail landscape. Regardless of where they live, traditional preferences for cotton are being carried forward as Indian consumers emerge as a strong and viable consumer power.

ABOUT THE SURVEY
This issue is part of a special series of Supply Chain Insights reporting results from the Global Lifestyle Monitor survey, a biennial consumer research study sponsored by Cotton Council International and Cotton Incorporated. In the 2010 survey, 5,000 consumers (approximately 500 in each of 10 countries) were surveyed via telephone and face-to-face interviews. Respondents were male and female, aged 15 to 54. The following countries were included in the 2010 survey: Brazil, China, Colombia, Germany, India, Italy, Japan, Thailand, Turkey, and the United Kingdom.