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BR Research

Lawn is back

Published August 8, 2011 Updated August 8, 2011 12:00am

Even though the weather has almost transitioned from the hot summers to the humid monsoon, lawn continues to remain the hot favorite fabric among women in Pakistan.
It is astonishing to see retail stores and exhibition venues crowded with women from diverse backgrounds, who have remained loyal to the inherent desire of buying the beautiful prints. In spite of the fact that rising inflation is a common concern, when it comes to shopping for clothes there exists no definition of enough for women.
In fact the trend is nowhere close to subsiding and summer collections have now been augmented by Eid Collections. "The response this year is even better than that of the last year. It has surpassed our estimates and we are already out of stock," confirmed the marketing manager of one of the leading lawn producers.
Sales have increased exponentially over the last couple of years despite price hikes. Last year lawn suits cost between Rs1600 to Rs2650. This year the same band has shifted up to Rs1700-6000. But manufacturers claim their margins have not improved.
They assert that printing costs have increased by about 25 percent along with higher electricity charges, nibbling away gains from higher retail prices.
According to Salman Awan, director Insaaf Fabrics, "Even though lawn retail prices have increased by 10 to 15 percent, profit margins have remained unchanged owing to the rise in input costs."
He asserts that rising import duties on chemicals and other imported raw materials, has affected profits, resulting in an obvious pressure to increase the product price along with some compromise on the quality.
The timing of cotton purchases is a key determinant of the price of the suits. Since this raw material is purchased several months in advance, its price is reflected in the price of the product sold in the following season. This, according to Shabbir, general manager at Mausummery lawn, explains the difference in pricing in the same season.
Then there are the exorbitant costs of marketing. The sudden mushrooming of the designer lawn market has been complemented with a blitz of expensive advertising replete with innovative signage, extensive television advertising and packed with celebrity endorsements. Industry insiders reveal that this adds around Rs65 million to the total cost.
There are, however, mixed views on the ideas of hiring models as brand ambassadors for the clothes. Although many manufacturers believe hiring a top celebrity to model on the billboards is the key to capturing the market, there are many dissenters who believe that "models do not work; they just add to the cost. If you are selling a quality product, it will sell itself."
Unlike last year, prices of raw cotton have been on a downward spiral so far this year. If raw cotton remains relatively cheaper, further increases in the retail prices of lawn would be hard to fathom. Existing producers also expect heightened competition in coming years.
"Lawn manufacturers are at the safe end; as the number of outlets increase, it is the retailers who will have a tough time selling the clothes," observed Salman Awan.
The foreign market for local lawn is also increasing, facilitating the manufacturers to cover the increasing costs and still earn a decent profit. Even though the target audience for unstitched lawn is increasing every year, a rather unexplored market for stitched lawn is a lucrative way forward. The idea of relief from the hassle and time saving with tailors is sure to attract women from all walks of life.

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