India looks to 'whitewash' US shirt mkt

CHENNAI: A white shirt getting sold every 10 seconds in the US, is a wake-up call for India’s textile industry. A white shirt, which outsells every other colour 10 times and delivered at less than $40 in 48 hours from India, can mean a 2% of the US market in this segment. Mens shirt (white) segment constitutes a $50 billion market in the US alone.

On an average, an American buys six white shirts annually incurring $250 every year for the same. This business in Japan and Europe combined will be double the size of the US business. The formal white shirt market for kids and women can be pegged at $75 bn and India has a great opportunity to specialise, observe industry experts.

As Union minister of state for commerce Jairam Ramesh points out, “India is the largest producer of cotton and has the highest loomage in the world. A proactive approach and a re-branding exercise to market our products abroad is the need of the hour. Our handloom sector is a product of the poor for the rich.

If we connect the two properly, we have a business model in place.” Endorsing the view, Indo American Chamber of Commerce chief Sankaran P Raghunathan told ET: “The textile sector has the potential to overtake IT. Ship the 100% cotton shirts from here to anywhere across the globe in just 48 hours.

India has the cost advantage in terms of inventory over the West.” US companies maintain an inventory of one year and therefore incur huge costs on stock. He has a virtual address registration, which has only shown the various hurdles in branding.

“Since ’98, we have been receiving bids for less than $12 from Pakistan and other places.”By pricing a shirt for $40, an excellent margin can be obtained. The lack of branded white shirts and the absence of a mail order concept are big disadvantages for India. “Technology plus telecom and branding initiative can yield huge returns,” he noted.

White shirts are sourced from China, Philippines and Bangladesh and it’s time for the Indian textile sector to relook itself. “A formal shirt is not actually a formal one in India. You can’t get a monogram or the perfect fit. The neck size is not right and there are two buttons on the cuffs. Our fabric is fantastic but we are not doing exact collar size.”

Formal dressing is still followed in Japan and UK, with men’s white shirt constituting 90% of their total wear. “White shirts have certainly not gone out of vogue, despite some stepping down,” Mr Raghunathan said.