Garment Manufacturing Unit: Organizational Setup

Study Notes

Apparel manufacturing is a vital livelihood source for millions globally.
Focus on understanding the organizational structure, departmental functions, and human resource roles in garment manufacturing.

Transition from local garment production to automated and globalized ready-to-wear manufacturing over the last 30 years.
The Indian apparel industry significantly impacts the economy, with one in six households relying on it.
Complex structure divided into export and domestic sectors, making India a leading garment manufacturer.
High-quality production caters to all societal segments, with a growth in fashion consciousness driving demand.
Abundant availability of raw materials, including silk, cotton, and jute, supports the industry.
India ranks as the largest jute producer and second in cotton and synthetic fiber production after China.
Competitive advantage from low wage rates attracts major retailers like Walmart and Tesco.

Proper organizational structure is essential for growth, development, and sustainability in garment manufacturing.
Organizational structure defines roles, task allocation, coordination, and supervision within the manufacturing unit.
An organizational chart visually represents the structure of a company, which may vary across organizations.
Effective organizational setup enhances communication and efficiency in achieving defined objectives.

Retail plays a crucial role in enhancing individuals' lives by providing convenient products.
Apparel contributes 10% to India's retail market, with significant growth projected.
Key learning outcomes include understanding India's retail landscape, distinguishing between organized and unorganized retail, recognizing various retail formats, and visualizing the growth in apparel retail.

Retailing is a major industry in India and a significant employment source.
The sector has experienced substantial growth, particularly post-1991 due to economic liberalization and favorable conditions for the apparel industry.
Major corporate players in retail include Piramal, Raheja, ITC, Tata, and Future Group.
Global brands like Ted Baker and Under Armour are entering the Indian market due to its retail potential.
India is a leading destination for retail investment, with a projected retail sector size of $1.4 trillion by 2021, ranking as the fifth largest globally.

Retail originates from the French word "retaillier," meaning selling in small quantities.
Defined as the process of selling goods/services directly to consumers, often through various channels.
Retailing activities focus on customer satisfaction, including understanding customer needs, product assortment, and effective display of merchandise.
Retailers act as intermediaries, connecting producers with consumers, including local vendors, shopkeepers, and supermarkets.

The retail apparel industry includes not only clothing but also accessories and footwear for men, women, and children.
Men's and women's clothing segments feature active wear, casual wear, essentials, formalwear, and outerwear.
Children's wear includes clothing for babies, toddlers, and active, casual, essential, formal, and outer wear for boys and girls.
Balancing product variety and assortment is essential for attracting and retaining customers, with an emphasis on effective merchandise planning.

Indian retail is categorized into organized and unorganized sectors.
Organized retailing: Operated by licensed companies (private or government) registered for taxes, includes hypermarkets, supermarkets, departmental stores, and malls.
Unorganized retailing: Comprises smaller, unregistered entities, often family-owned businesses or street vendors, playing a significant role in the retail landscape.