About Forcas Studio Limited

Forcas Studio is into Menswear and deals in men’s garments such as Shirts, Denims, T-shirts, trousers, Cotton pants, sports-wear, party-wear, fashion wear, boxers etc. and cater pan India through online and wholesale in our own brand and also white-labelling for other brands such as Landmark Group, V-Mart Retail, V2 Retail, Highlander, Cobb, Kontail and many more. The Company is in the business of manufacturing and selling of menswear garments through online ecommerce platforms and wholesale underthe name of ‘FTX’, ‘Tribe’ and ‘Conteno’. The Company sales products under its own brand through the most popular retail online e-commerce platforms namely, flipkart, Myntra, Meesho, Amazon, Ajio, Jio Mart, Glowroad, Limeroad, Solvd and Shopsy. The wholesale business comprises of sale to wholesalers who purchase in bulk for onward sales to garment retailers in different states of the country. Further, their brand also are sold through large format stores including V-Mart Retail, V2 Retail, City Kart, Metro Bazar, Kothari Retail and Sarvana Retails.

They transitioned to online business in 2021 to better serve their Pan India clientele. In the two years since they went digital with their menswear product line, they have served about 15,000 plus pin codes in India giving us benefit of selling to the end consumer directly and understanding their buying pattern. Their products are available on India’s top marketplaces, and they will be adding few more marketplaces in the current fiscal year. They have received positive response from their customers for their products which is reflected customers’ rating on the marketplaces. In addition to being present on the top online marketplaces, they are also present in over 500 plus large format stores, which helps them to be visibly present in offline spaces. With more than 1200 SKUs, our product catalogue is broad and varied.

The Company mainly sources fabric from the local markets of Kolkata, Surat and Mumbai, and outsources its job work to the manufacturers at Kolkata under the supervision of company personnel for designs and quality control. The Company develops garments through outsourcing model crafted by proficient people. It is a known fashion house and dedicated towards providing value to customers with its fashionable and quality products range. This gives them flexibility to easily get into new categories without any capex on plant and machinery making their business and asset light model and also help them stay faster in adding different products. The main raw material for their operations are (i) Fabrics (ii) Accessories which includes threads, buttons, elastic, label, tag, zipper and (iii) Packing Materials. The Company presently has four warehouses at Kolkata for the purpose of supply chain management.

INDIAN APPAREL MARKET
The domestic apparel market can also be broadly divided by price into super premium, premium, medium, economy, and value segments. The medium price segment holds majority of the share among apparel segment followed by economy segment. The price sensitive rural population forms a major part of the value and economy price segments of apparel market. Further, driven by the twin trends of premiumisation and value consciousness, the mid-market segment is being squeezed on both sides by the value and the premium segments. Demand for various apparel categories varies substantially across the country. The urban metro market comprising cities such as Delhi NCR, Mumbai, Bengaluru, Chennai, etc., is the biggest market for apparel in India and contributes over 20% to the Indian apparel market. Considering that less than 20% of India’s population lives in these cities indicate the higher purchasing power in urban areas and frequency of purchases. The metros also witness huge penetration of women’s western wear as compared to Tier -I or Tier -II cities of the country. High real estate costs, competition among branded players and saturation in metro cities of the country have driven big brands to move towards the smaller cities. The increasing purchasing capacity and awareness of fashion and trend in small cities has also resulted in providing a huge market to the organised players of the country. The rural apparel market in India is still primarily catered by unbranded and unorganised local players. Need based clothing and price sensitivity among people of rural India does not make it a lucrative market for branded players.

The demand for textiles and apparel is being primarily driven by 1) rise in disposable income which increases ability to consume, 2) increased usage of plastic money leading to impulsive buying among the Indian consumers, 3) intensifying urbanization leading to demand of varied goods and services, 4) positive demographic dividend along with changing consumer preference (ready to stitch), 5) increased organized retail which increases availability and the rise of private labels coupled with increase in (Ready to wear) RTW rather than RTS (Ready to Stitch), and 6) growth of internet penetration and rise of e-commerce as a viable alternative sales channel.

Additionally, effective implementation of several regulatory measures such as Technology Up-gradation Fund Scheme (TUFS), Refund of State Levies (RoSL), and integrated textile parks, the rising mall culture and the multiple international and home-grown premium and super premium brands are also expected to drive the market size of the Indian apparel industry. Furthermore, a low per capita fiber consumption as compared to other nations coupled with factors like growing differentiation of apparels into party-wear, office-wear and semi-formals coupled with increasing share of ethnic wear and designer wear are expected to drive the growth of the apparel industry. Additionally, tapping newer export markets enables exporters to offset both saturation and increased competition in the traditional export markets. Sustainable/ecofriendly manufacturing is also expected to increase the share of natural fabrics in the industry e.g. Wills Lifestyle stating that it would utilise only natural fabrics. The industry is also undertaking significant investments in technology/ digital to 1) ramp up online presence/ ecommerce activities either in partnership or on a standalone basis, 2) modernize supply chain to increase efficiencies and reduce costs, 3) mass customization to drive demand and increase per capita consumption, and 4) increase marketing, enhance customer loyalty and repeat purchases. However, the recent wave of discounts (both online as well as offline), uncertainty due to the upcoming general elections and rise of protectionist measures/ rhetoric overseas could hamper industry realizations.

Indian online fashion market
The online fashion market is approximately $11 billion and has grown at around 30% per year since 2019, led by four categories of players: national brands, private labels, digital disruptor brands, and unbranded sellers. National brands are historically established and began largely offline. These include brands such as Louis Philippe, Puma, and Biba. Private labels such as Avaasa from AJIO have been created and scaled by online retailers to expand assortment and fill price gaps. Digital disruptor brands, such as The Souled Store and Bewakoof, were born online and have taken a radically different direct-to-consumer (D2C) approach to scaling the business. Finally, the fashion market has always had a long tail of unbranded sellers with an attractive price-led value proposition.

As textile production is positively correlated to GDP, reduction in economic uncertainties to revive growth in medium to long-term period. The apparel industry is largely consumption-driven and therefore, the economic cycles have a direct impact on the performance of the industry. High growth in the GDP leads to higher per capita income which in turn increases the purchasing power of the people. Higher purchasing power leads to increased spending, thereby driving the demand for apparels and home textiles while during the economic slowdown, the spending power and in turn consumption decreases.

FORCAS STUDIO LIMITED STRENGTHS
1. Product Design
2. Wide market Outreach 
3. Offering fashion to youth of Bharat
4. Sales & Marketing
5. Highly experienced management team
6. Strong customers and suppliers relationship
7. Wide range of Products

FORCAS STUDIO LIMITED STRATEGIES
1. Fashion at affordable price
2. Product Pricing
3. Increase online presence
4. Leverage and enhance their brand name
5. Improving operational efficiencies

FORCAS STUDIO LIMITED RISK FACTORS & CONCERNS
1. They derive a significant portion of their revenues from sales to third party brand owners, wholesalers and through online retailers.
2. Their warehouse and a majority of their contract manufacturers are exclusively based in a single geographical region.
3. They are dependent on their contract manufacturers to procure their products and do not have any manufacturing facilities of their own.
4. They rely significantly on their direct marketing network for sale of their products.
5. They face risks of delisting or debarment from online platforms.