India : Accessories Turn Money-Spinners, Get Branded

With the arrival of new players, launching of world-class products and a growing number of style conscious customers willing to pay more for quality, the nation's Rs 350-400-crore branded accessories market, currently growing at 15-20%, can only get better and better.

No wonder then that everyone - from Lee Cooper to Zodiac and from Raymond to Reebok - seems to be making a dash to be the gods of small things. And those who are still not there, are the wannabes. And in India, accessories have graduated from the earlier unorganised sector to the realm of the high-flying branded sector.

"Just like branded apparel, accessories too are becoming a new and fast-growing dimension of people's wardrobe," says Rahul Singh, director (apparel), Reebok, which has unveiled its line of accessories, including headwear, bags, socks and gym gear, in India.

European apparel major Lee Cooper is another MNC which has got major plans up its sleeve for introducing its range of accessories in this country.

Though the company has already launched belts and caps under its own brand name, it has other products such as toiletries (deodorants, perfumes, talcs, after shaves etc), sun glasses and watches on its agenda. "We are also scouting for a joint venture with another company to assemble, distribute and market our range of watches in the country," says Harpartap Singh, MD, Lee Cooper India.

Dittos United Colors of Benetton, which is planning to launch its global range of accessories in India very soon. "Internationally, UCB is known for its comprehensive accessory line - Accessories of Benetton - which include bags, belts, caps, sunglasses, wallets, luggage, stationery, non-precious jewellery, perfumes and scarves. This is in keeping with Benetton's positioning as a high street lifestyle brand offering extensive fashion options. However, in India, due to limited market possibilities, UCB has in the past retailed a small representation of accessories through its stores," says an UCB spokesperson, adding that "with the Indian market now looking for world-class value, we think the time is right to bring in our accessory line into key urban markets."

And fashion store chain INC5, which caters to fashion footwear for ladies and men, apart from having its line of accessories such as bags, belts, scarves, wallets and desktop accessories, is planning to get into house hold accessories in the future. Indian accessories major Zodiacmakes ties, cuff links, belts, wallets and also exports them to a number of developed countries including the US. and the UK, will also be expanding its range.

But why is there a sudden rush for a product line which till some time back was ignored? "Accessories is a product line that has been ignored by the organised market and its potential has been underestimated. Today accessories are becoming more and more fashion-oriented and make a fashion statement. The best policy to make a place in any fashion business is to create a niche for your business and then try to increase the circumference of the niche," reasons Shiraz Lalani, chief marketing officer, INC5.

Besides, accessories are also supposed to yield lots of tangible and intangible benefits both to the main brand as well as the company in the form of increased turnover, enhanced brand image, improved brand visibility and widened customer base. For instance, INC5 is generating 10% of its total business through accessories alone, whose share is growing everyday.

But it is also the huge margin which has made accessories the darling of the fashion world. "Though margins may not be more than 20-25% on other products, they are currently as high as 60-70% on branded accessories which the players can't afford to ignore," says Harminder Sahni of KSA Technopak.