Lucrative market: Fashion industry: a serious business

Sector takes driver’s with rise in standard of living.

LAHORE: A fashion industry, in most countries, caters to the affluent before its designs become the norm. Designers, who have spent years in building a ‘name’, target this particular segment since it allows them higher margins. Hence, it is not a stretch to say that Pakistan’s industry does the same.

Latest designs, sometimes absurd as they may be, are adopted by the ‘trendy’ before the informal sector can introduce them in the mainstream market.

However, with a rise in the standard of living – with a profound effect felt in the middle-class – the fashion industry’s reach and size of the market has increased.

Data mining is already difficult to achieve in Pakistan. In the fashion industry, the job is even more difficult as the informal sector’s
presence makes it difficult to put an estimated number even.



Pakistan Fashion and Design Council (PFDC) CEO Saad Ali is also not sure about the size of the industry.

“The fashion industry is a kind of nucleus and many other industries revolve around it,” said Ali in an interview with The Express Tribune. “It is headed at an upward trajectory. We are not just talking about organizing fashion shows and providing employment there. But, we are talking about helping develop brands, designers, value-added products and, above all, boosting the country’s retail sector and promoting the mega mall culture in Pakistan.

For Ali, the population of Pakistan with massive buying power is the biggest pull-factor for local and global brands to invest in the market.

In recent years, the apparel sector has witnessed entry of some of the biggest textile groups of the country. The groups availed opportunities by introducing separate brands, lawns and other fashion related products.

Ali believes there are around 40 high end brands and their annual sales volume runs in billions of rupees. Khaadi, a relatively new entrant with 40 outlets, has an annual sales volume of around Rs7 billion. Similarly, another renowned ladies brand with 400 nationwide outlets posted annual sales volume of Rs11 billion.

“There are many medium and small scale brands which need financial assistance and we are working to provide support in order to further streamline this industry.”

The seasonal lawn segment, which has around 140 brands, alone, fetches billions of rupees annually and the demand is continuously increasing, Ali added.

The CEO believes that long-term partnerships with the corporate sector prove to be good for companies to advertise and streamline their products.

Published in The Express Tribune, May 2^nd, 2015.

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