The Product Value Chain of Ties and Bow Ties
By Tanvi Munjal
The humble tie, and its close cousin the bow tie, takes a fascinating journey from raw materials to becoming a dapper accessory. This article explores the product value chain of ties and bow ties, highlighting the key stages that transform simple materials into a symbol of sophistication.
- PRODUCT CATEGORY: Apparel Accessories
- PRODUCT BENEFITS AND PURPOSE: Ties and bow ties originally arose as a way to keep shirts closed at the neck. While buttons now serve this purpose primarily, neckties still offer a bit of additional coverage. They can also:
- Elevate formality
- Express personality and style
- Complement the outfit
- Provides warmth
- DURATION OF PRODUCT: 1-3 years (in general)
- MARKET SIZE: The global neckwear market reached a worth of USD 3 billion in 2022, registering a 2% annual growth rate from 2023 to 2032, and is projected to hit USD 3.65 billion by 2032. Growth in the global neckwear market will be fueled by the expanding working population. (Source: The Brainy Insights)
- MARKET: Corporate executives and businessmen, Lawyers, accountants, and other professionals, Fashion-Conscious Consumers, Vintage or heritage enthusiasts, Themed or novelty tie wearers.
Overview of Handkerchiefs Manufacturing Process
- Raw Material Sourcing:
The journey begins with sourcing the raw materials. Silk is the most prized material for ties, due to its luxurious drape and sheen. Cultivated from mulberry silkworm cocoons, raw silk needs to be degummed (removing a glue-like substance) and spun into yarn. Other materials like cotton, wool, and polyester are also commonly used, depending on price point and desired features.
- Fabric Weaving and Design:
Weaving mills take the yarn and transform it into fabric. Here, the intricate patterns and designs of ties and bow ties come to life. Jacquard looms, known for their ability to create complex patterns, are often used. Dyers add colour to the fabric, and high-quality ties may involve multiple colours and intricate weaving techniques.
- Machines: High-speed looms
- Brands: Dornier, Picanol, etc
- Cutting and Trimming:
Once the fabric is woven and dyed, it’s sent to manufacturers. Skilled cutters precisely cut the fabric pieces for ties and bow ties, ensuring consistency and minimising waste. The lining fabric, interlining (adding structure), and the characteristic tail of a tie are also cut here.
- Machines: Automated Fabric Cutters
- Brands: Gerber, Lectra, etc
- Assembly and Sewing:
The cut pieces are meticulously sewn together by experienced craftspeople. High-quality ties often involve hand-sewing for specific details or finishing touches. The interlining is added to give the tie proper body and drape.
- Machines: Industrial Sewing Machines
- Brands: Juki, Brother, etc
- Quality Control and Finishing:
After assembly, each tie or bow tie undergoes thorough quality control checks. This ensures consistency in stitching, symmetry, and overall appearance. Labels are attached, and the tie may be pressed or steamed to achieve a crisp finish.
- Distribution and Retail:
The finished ties and bow ties are packaged and shipped to distributors or directly to retailers. Retailers can be high-end department stores, menswear boutiques, or online stores.
- Marketing and Branding:
Throughout the value chain, marketing and branding play a crucial role. Luxury brands may source high-quality materials and employ traditional techniques, while other brands may target specific demographics with trend-focused designs.
Understanding the value chain provides a deeper appreciation for the craftsmanship and intricate processes that go into creating a simple tie or bow tie. The next time you pick out a tie, you’ll have a newfound respect for the journey it took to become a polished accessory.
Leading Companies Operating in the Global Ties/Bow Industry
- Ferragamo
- Turnbull and Asser
- Blacksmith
- Brooks Brothers
- Charvet
- Floral Necktie
- Knit ties
- Louis Philippe
- MR Button
- Park Avenue
Best Ties/Bow Brands In India
- The tie hub
- Van Heusen
- Blacksmith
- Park Avenue
- Alvaro Castagnino
- Invictus
- Louis Philippe
- Peluche
- Greyon Enterprises
- Lino Perros
SWOT Analysis of the Industry
By understanding these strengths, weaknesses, opportunities, and threats, companies in the tie and bow tie industry can develop strategies to capitalise on their strengths, address weaknesses, exploit opportunities, and mitigate threats.
Strengths:
- Versatility: Ties and bow ties can be dressed up or down, catering to formal, semi-formal, and even casual occasions.
- Fashionable Accessories: They offer a way to express personal style and add a touch of sophistication to an outfit.
- Durable Products: Well-made ties and bow ties can last for many years with proper care.
- Branding Potential: Luxury brands can leverage high-quality materials and craftsmanship to build brand identity and command premium prices.
- Gift Potential: Ties and bow ties are popular gift choices for men due to their perceived value and association with professionalism.
Weaknesses:
- Limited Target Market: Primarily caters to men, with a smaller market for women’s bow ties.
- Seasonal Fluctuations: Formal attire, and by extension ties and bow ties, can experience sales fluctuations depending on the season and occasion frequency (e.g., prom season, galas).
- Competition from Alternative Accessories: Pocket squares, lapel pins, and other accessories can compete for attention and sales.
- Susceptibility to Fashion Trends: Skinny tie trends or a shift towards more casual workplaces can impact demand for formal wear.
- Relatively High Production Costs: Quality materials and potentially hand-crafted elements can lead to higher prices compared to some other accessories.
Opportunities:
- Expanding Target Market: Targeting a wider demographic with gender-neutral or unisex designs, or venturing into women’s bow ties in a more significant way.
- E-commerce Growth: Leveraging online platforms to reach a wider audience and cater to niche markets.
- Customization: Offering custom-made ties or bow ties with personalised details or fabrics can add value and exclusivity.
- Sustainable Practices: Using eco-friendly materials and promoting sustainable production processes can appeal to environmentally conscious consumers.
- Wedding and Special Occasion Market: Focusing on high-quality ties and bow ties specifically designed for weddings and other special occasions.
Threats:
- Casualization of Workplaces: The trend towards more casual work attire can decrease the demand for formal accessories.
- Economic Downturn: During economic downturns, consumers may cut back on discretionary spending, impacting luxury tie and bow tie sales.
- Fast Fashion Competition: Fast fashion retailers may offer cheaper, trend-driven alternatives that could steal market share.
- Counterfeit Products: Counterfeit ties and bow ties can undercut sales of genuine products and damage brand reputation.
- Substitute Products: Video conferencing and a decline in formal business meetings could potentially reduce demand for formal attire.
