Wednesday, October 3, 2012

Semi- urban India

This is probably the first time I am posting something said by an Indian businessman; may be, after a long time somebody is saying something quite interesting and not stereotypical...

This is Pradeep Hirani, Founder, Kimaya Fashions talking about the need for a new clothing line that is pseudo-couture:

"Currently, India is growing at a faster pace, but couture can sell well only in Mumbai, Delhi and in the metros. But today, India is no longer a country of two cities there are currently 60 cities whose pace of growth is faster than Mumbai and Delhi and they need to be serviced. Two years back we got in KPMG to do some research into the Indian woman's wardrobe. And as per the survey, compared to a man who generally has 99 per cent of his wardrobe filled with western wear, the Indian woman has 72.3 per cent of her wardrobe filled with Indian wear in value terms. This was done over a sample size of 400 women. So 72 per cent is Indian wear and where does she buy it from, what are her options. There were 6 or 7 brands in ethnic wear, which were pan India and their average MRP was Rs 1,245, but the man in her life generally spent Rs 2,000 on his shirt and another on his pants, so how can you call her the most powerful customer? So now if she wants designer wear, her only option is to go to the metros, where the average MRP is Rs 27,000. So it’s like a choice between a Nano and Rolls Royce, which is a world of a difference. So you can't just jump, you need a ladder and that ladder does not exist today. So making that ladder is the focus for Karmik."
From an interview on VC Circle

Interesting right? Because, we do know it but it's different when we read it. 
I also like the bit about "today, India is no longer a country of two cities there are currently 60 cities whose pace of growth is faster than Mumbai and Delhi and they need to be serviced."

This is where a lot of things are going to change; in terms of consumption, of course - that is a no-brainer. But in terms of small innovations or interesting business ideas - now, that would be a bigger influence on our country than consumption could ever be.

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