The In­dian Fash­ion Ap­parel Mar­ket- 2016 and Be­yond

Business of Fashion - - Contents -

Team Technopak sizes the In­dian fash­ion re­tail mar­ket, its key cat­e­gories and analy­ses the cur­rent and fu­ture growth prospects

and trends, in an ex­clu­sive report.

Amit Gug­nani, Se­nior Vice Pres­i­dent, Fash­ion - Tex­tile & Ap­parel, sizes the In­dian fash­ion re­tail mar­ket, its key cat­e­gories and analy­ses the cur­rent and fu­ture growth prospects and trends, with re­search in­puts from Goutham Jain, Prin­ci­pal Con­sul­tant, Fash­ion - Tex­tile & Ap­parel, and Saima Ni­gar, As­so­ci­ate Con­sul­tant, Fash­ion - Tex­tile & Ap­parel, Technopak.

1. Mar­ket Overview

In­dian econ­omy, one of the fastest grow­ing economies of the world, is wit­ness­ing ma­jor shifts in con­sumer pref­er­ences. In­creas­ing dis­pos­able in­come, brand aware­ness and in­creas­ing tech-savvy mil­len­nial pop­u­la­tion are the driv­ing fac­tors of cor­po­ra­tized re­tail within the coun­try. Over­all, In­dian re­tail sce­nario has shown sus­tain­able long term growth com­pared to other de­vel­op­ing economies.

The In­dian re­tail mar­ket was worth `41,66,500 crores (USD 641 bil­lion) in 2016 and is ex­pected to reach `1,02,50,500 crores (USD 1,576 bil­lion) by 2026, grow­ing at a Com­pound An­nual Growth Rate (CAGR) of 10 per­cent. It is en­vis­aged that the cur­rent fash­ion re­tail mar­ket worth `2,97,091 crores (USD 46 bil­lion) will grow at a promis­ing CAGR of 9.7 per­cent to reach `7,48,398 crores (USD 115 bil­lion) by 2026.

In­dian ap­parel in­dus­try which is the sec­ond largest con­trib­u­tor in the re­tail in­dus­try af­ter food and gro­cery is see­ing some ma­jor shifts. En­try of in­ter­na­tional brands, changes in pref­er­ences from non-branded to branded, the fast grow­ing econ­omy, large young con­sum­ing pop­u­la­tion in the coun­try has made In­dia a highly lu­cra­tive mar­ket. In­dia has the world’s largest youth pop­u­la­tion, which is be­com­ing fash­ion con­scious ow­ing to mass me­dia and so­cial me­dia pen­e­tra­tion. This has opened un­prece­dented re­tail mar­ket op­por­tu­ni­ties. The promis­ing growth rate of 9.7 per­cent makes the In­dian fash­ion in­dus­try promi­nent in the re­tail sec­tor. With a GDP growth rate of 7 per­cent, In­dia has an edge over de­vel­oped mar­kets of the US, Europe and Ja­pan which are ex­pected to grow at a rate of 2-3 per­cent. Favourable trade poli­cies and in­creased pen­e­tra­tion of or­gan­ised re­tail among other fac­tors con­trib­ute in mak­ing In­dian fash­ion in­dus­try at­trac­tive for in­vestors.

Within the re­tail cat­e­gories, ap­parel re­tail has demon­strated com­par­a­tively high re­cep­tiv­ity to­wards cor­po­ra­tized re­tail. High pen­e­tra­tion of cor­po­ra­tized re­tail in ap­parel has also paved the way to in­tro­duce more for­mal and sys­tem­atic pro­cesses and pro­ce­dures in op­er­a­tions, pro­cure­ment and dis­tri­bu­tion. As a con­se­quence, ap­parel re­tail mar­ket has man­aged to har­ness the ad­van­tages of­fered by mod­ern man­age­ment con­cepts lead­ing to im­proved prod­uct of­fer­ing, bet­ter cus­tomer man­age­ment and sci­en­tific

sup­ply chain man­age­ment tech­niques. It is ex­pected that ap­parel re­tail will con­tinue to wit­ness deeper pen­e­tra­tion of cor­po­ra­tized re­tail be­yond the ma­jor ur­ban clus­ters and the in­crease in the de­mand of branded prod­ucts.

2. In­ter­seg­ment Anal­y­sis

The In­dian ap­parel mar­ket can be broadly clas­si­fied into men’s wear, women’s wear and kidswear. Cur­rently, men’s wear holds ma­jor share in the ap­parel mar­ket. It ac­counts for 41 per­cent of the to­tal mar­ket. Women’s wear con­trib­utes al­most 38 per­cent, while kidswear con­trib­utes 21 per­cent of the mar­ket. It is es­ti­mated that over the next decade women’s wear and kids wear will demon­strate high CAGR of 9.9 and 10.5 per­cent re­spec­tively, re­sult­ing in rise in mar­ket share of these cat­e­gories. Both, men’s wear and women’s wear is ex­pected to con­trib­ute 39 per­cent each to the to­tal mar­ket in 2026, with kidswear ac­count­ing for the rest 22 per­cent.

2.1 Men’s wear

With the mar­ket size of `1,24,423 crores (USD 19 bil­lion), men’s wear is the largest seg­ment in ap­parel mar­ket and is ex­pected to grow at a CAGR of 9 per­cent for next 10 years to reach `2,95,795 crores (USD 45.5 bil­lion) by 2026. The var­i­ous prod­uct cat­e­gories of men’s wear seg­ment in­clude shirts, trousers, suits, win­ter wear, t-shirts, denim, daily wear, ac­tive wear, eth­nic, in­ner­wear, etc. Shirts are the sin­gle largest cat­e­gory in men’s wear, fol­lowed by trousers and denim.

In re­cent years, denim, ac­tivewear and t-shirts have shown promis­ing growth and are ex­pected to grow at high CAGRs of 14 per­cent, 14 per­cent and 12 per­cent re­spec­tively, ow­ing to chang­ing pref­er­ence of the con­sumers.

In re­cent years, denim, ac­tivewear and t-shirts have shown promis­ing growth and are ex­pected to grow at high CAGRs of 14 per­cent, 14 per­cent and 12 per­cent re­spec­tively, ow­ing to chang­ing pref­er­ence of the con­sumers. While denim and t-shirts have ma­tured as cat­e­gories and have shown a con­sis­tent growth over a con­sid­er­able pe­riod of time, ac­tivewear has re­cently evolved and has high growth po­ten­tial. This is due to the boom in fit­ness and health­care. In ad­di­tion, the con­sumers in In­dia have evolved and now un­der­stand that cloth­ing for fit­ness is dif­fer­ent from ev­ery­day cloth­ing. These fac­tors con­trib­ute to high growth pro­jec­tions of 14 per­cent over the next decade. The growth in this cat­e­gory is

not just re­stricted to met­ros and tier -I cities and has shown growth in tier –II and –III cities as well.

The ac­cep­tance of smart ca­su­als in cor­po­rate has boosted growth of western wear among work­ing pro­fes­sion­als. For­mal wear is not re­stricted only to shirts and trousers but has a wide range of other op­tions such as smart jack­ets, brightly coloured or pat­terned shirts com­ple­mented with loafers, etc.

Men’s denim wear is ex­pected to grow at a rate of 14 per­cent per year. The young pop­u­la­tion of the coun­try is the key de­mand driver of this seg­ment. Due to rise in me­dia pen­e­tra­tion in the coun­try and global fash­ion aware­ness among youth, a shift in con­sumer’s choice of denim wear has been wit­nessed in the coun­try. Pen­e­tra­tion of in­ter­na­tional brands in denim has pro­vided con­sumers with am­ple prod­uct op­tions.

2.2 Women’s wear

The women’s wear mar­ket in In­dia con­trib­utes 38 per­cent of the to­tal ap­parel in­dus­try. It is es­ti­mated to be worth `1,11,467 crores (USD 17.5 bil­lion in 2016) and is ex­pected to grow at a CAGR of 9.9 per­cent to reach `2,86,456 crore (USD 44 bil­lion in 2026). Glob­al­i­sa­tion cou­pled with fast fash­ion has re­sulted in aware­ness on fash­ion trends and styling. Fur­ther, the in­crease in num­ber of work­ing women has fu­elled the women’s wear mar­ket. The de­mand is ex­pected for western wear, fu­sion wear and oc­ca­sion spe­cific eth­nic wear. Women’s wear in In­dia com­prises of eth­nic wear, western wear, Indo-western, in­ner­wear, etc. Eth­nic wear is the sin­gle big­gest cat­e­gory in women’s wear seg­ment with a share of 66 per­cent. In eth­nic wear, the sa­ree is per­haps the most com­mon tra­di­tional In­dian dress for women and has a mar­ket of ~`37,837 crores. It is ex­pected to grow at a CAGR of 5 per­cent and

reach `61,632 crores by 2026. Though a mar­ket shift is ex­pected from sa­ree to sal­war kameez and western wear in ur­ban and semi-ur­ban mar­kets, sa­ree will still re­main as the pre­dom­i­nant cat­e­gory among el­derly and mid­dle aged women across ur­ban and ru­ral In­dia.

Sal­war kameez is an­other dom­i­nat­ing cat­e­gory in eth­nic wear, es­pe­cially among the work­ing women be­cause of its com­fort level. With a mar­ket share of `35,804 crores, it is ex­pected to grow at a CAGR of 12 per­cent to reach `1,11,203 crores by 2026. But, it has started fac­ing stiff com­pe­ti­tion from the western wear ow­ing to in­creased num­ber of work­ing women in the coun­try, es­pe­cially in ur­ban ar­eas. The in­creased com­pe­ti­tion from western wear has re­sulted in a new cat­e­gory — Indo-western (fu­sion-wear).

The in­ner­wear cat­e­gory is an­other promis­ing cat­e­gory in the women’s wear mar­ket. It is grow­ing at a CAGR of 14 per­cent and is ex­pected to reach `60,277 crores in 2026 from the cur­rent mar­ket size of `16,259 crores. Branded in­ner­wear presently con­trib­utes about 35- 40 per­cent of the to­tal women’s in­ner­wear mar­ket and is ex­pected to reach to 40-45 per­cent in 2020.

Denim is an­other high growth cat­e­gory among women’s wear and is ex­pected to grow by a promis­ing rate of 17.5 per­cent for the next ten years to be­come a mar­ket of `10,209 crores from `2,035 crores cur­rently. Ini­tially, the denim brands used to fo­cus pri­mar­ily on men, but with the change in the de­mand and pref­er­ences of women, they started cater­ing to women con­sumers as well. Stretch den­ims have seen a huge de­mand among women.

Women’s t-shirts and tops cat­e­gories are also grow­ing fast ow­ing to generic in­cli­na­tion for western wear cat­e­gories. The women tops and shirts mar­ket is of `2,236 crores and is ex­pected to grow at a CAGR of 14 per­cent to reach `8,291 crore by 2026. The women’s t-shirts mar­ket of `933 crores is grow­ing in tan­dem with the growth of other ca­su­al­wear cat­e­gories and is ex­pected to grow at a CAGR of 17 per­cent to reach `4,484 crore by 2026.

2.3 Kidswear

The kidswear seg­ment is one of the fastest grow­ing seg­ments in the In­dian ap­parel mar­ket. The In­dian kids wear mar­ket in 2016 was es­ti­mated to be worth `61,201 crores and ac­counted for 21 per­cent of the to­tal ap­parel mar­ket of the coun­try. It is ex­pected to grow at a CAGR of 10.5 per­cent to reach `1,66,147 crores by 2026. With such mar­ket po­ten­tial, a num­ber of na­tional and in­ter­na­tional play­ers have en­tered this seg­ment. In­dia, be­ing one of the youngest na­tions in the world with 29 per­cent of its pop­u­la­tion less than 14 years is a lu­cra­tive mar­ket. The com­pe­ti­tion be­tween the new en­trants and ex­ist­ing play­ers has ul­ti­mately ben­e­fited the In­dian con­sumers as the firms have shifted their fo­cus to im­prove the qual­ity while re­duc­ing costs at the same time.

Aware­ness about lat­est kidswear is not only lim­ited to metro cities but it is wide­spread among tier -II and -III cities also due to ac­cess to var­i­ous me­dia such as tele­vi­sions, smart phones, movies etc. With grow­ing dis­pos­able in­come, ex­po­sure to global fash­ion trends and en­trance of for­eign brands in the coun­try – spend­ing on kidswear by In­dian pop­u­lace has in­creased.

The kids wear mar­ket can be cat­e­gorised into boy’s wear and girl’s wear.

Boy’s wear

The In­dian kidswear mar­ket is slightly skewed to­wards boy’s wear which ac­counts for 51 per­cent of the to­tal kidswear mar­ket. In 2016, boy’s wear was es­ti­mated to be worth `31,552 crores and is ex­pected to grow at a CAGR of 10.3 per­cent and reach `84,678 crores by 2026. The var­i­ous cat­e­gories among boy’s wear are t-shirts, den­ims, bot­tom wear, eth­nic, win­ter wear and uni­forms. Uni­forms, t-shirts and bot­tom wear are the dom­i­nat­ing cat­e­gories among boy’s wear. They to­gether con­trib­ute around 78 per­cent of the to­tal boy’s wear mar­ket. How­ever, t-shirts and den­ims are con­sid­ered high growth po­ten­tial cat­e­gories in the seg­ment with a CAGR of 12 per­cent and 15 per­cent re­spec­tively. The in­creased fash­ion aware­ness among kids has made western wear such as den­ims and t-shirts pop­u­lar.

Girl’s wear

Girl’s wear mar­ket, which ac­counts for re­main­ing 49 per­cent of the kidswear mar­ket, com­prises of bot­tom wear, eth­nics, t-shirts, den­ims, dresses, win­ter wear and uni­forms. Like boy’s wear, uni­forms are the dom­i­nat­ing cat­e­gory among girl’s wear as well. It is worth `9,013 crores and is ex­pected to grow at a CAGR of 11 per­cent to reach `25,591 crore by 2026. An­other dom­i­nant cat­e­gory in this seg­ment is eth­nic wear, which com­prises 23 per­cent of the girl’s wear mar­ket. But, a ma­jor shift has been seen in trend among girls wear in re­cent years. Western wear cat­e­gories such as den­ims and t-shirts are grow­ing faster than tra­di­tional cat­e­gories. These cat­e­gories are ex­pected to reg­is­ter CAGRs of 16 per­cent and 14 per­cent re­spec­tively.

3. Re­gion-Wise Dis­tri­bu­tion of Ap­parel Mar­ket

De­mand for var­i­ous ap­parel cat­e­gories varies sub­stan­tially across the coun­try. The ur­ban mar­ket that mainly com­prises of metro cities such as Delhi/ NCR, Mum­bai, Bengaluru, Chen­nai, etc., are the big­gest mar­kets for ap­parel in In­dia and con­trib­ute 23 per­cent to the In­dian ap­parel mar­ket. Con­sid­er­ing the fact that al­most 70 per­cent of the pop­u­la­tion re­sides in vil­lages, the ma­jor con­tri­bu­tion of ur­ban cities to the ap­parel mar­ket in­di­cates the higher pur­chas­ing power of the peo­ple in ur­ban cities, their fre­quency of pur­chases and ten­dency to pur­chase pre­mium and qual­ity prod­ucts. The metro cities house al­most all the big na­tional and in­ter­na­tional brands, driven by the well in­formed and em­ployed pop­u­la­tion. The met­ros also wit­ness huge pen­e­tra­tion of women’s western wear as com­pared to tier -I or tier -II cities of the coun­try. The well in­formed and trend con­scious fe­male cus­tomer base has led to deeper pen­e­tra­tion of brands and pri­vate la­bels in the met­ros.

But lately, many global brands have started pen­e­trat­ing into tier -I and -II cities, while do­mes­tic brands are also strength­en­ing their po­si­tion in these mar­kets. Many fash­ion re­tail­ers and ap­parel brands have al­ready es­tab­lished them­selves in smaller cities. High real es­tate costs, com­pe­ti­tion among branded play­ers and sat­u­ra­tion in metro cities of the coun­try have made big brands to move to­wards the smaller cities of the coun­try. The in­creas­ing pur­chas­ing ca­pac­ity and aware­ness of fash­ion and trend in small cities has 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.

4. Price Seg­men­ta­tion of Ap­parel Mar­ket

The ap­parel mar­ket can be broadly di­vided into su­per pre­mium, pre­mium, medium, econ­omy and low price seg­ments. The medium price seg­ment holds ma­jor­ity of the share among ap­parel seg­ment by hold­ing 29 per­cent fol­lowed by econ­omy which holds 28 per­cent of the share of the ap­parel mar­ket of the coun­try. The price sen­si­tive ru­ral pop­u­la­tion forms a ma­jor chunk of 54 per­cent of the low and econ­omy price seg­ments of ap­parel mar­ket. Cus­tomers across in­come groups pur­chase medium priced ap­parel at vary­ing fre­quen­cies. Some­times the cus­tomers of the pre­mium and su­per pre­mium seg­ment wish to trade down to medium seg­ment while in some other cases the low in­come cus­tomer prefers to trade up to medium seg­ment de­pend­ing on the re­quire­ment of the at­tire and look. Many In­dian con­sumers of the medium in­come level pre­fer medium price seg­ments as it of­fers the as­sur­ance of cer­tain min­i­mum qual­ity stan­dards at a rea­son­able and af­ford­able price.

The su­per-pre­mium and pre­mium price cat­e­gories are value driven cat­e­gories and the prod­uct of­fer­ings of these seg­ments come from es­tab­lished brands.

5. Se­lect Trends of In­dian Ap­parel Mar­ket

In In­dia’s high-growth, fast-chang­ing re­tail ap­parel mar­ket, with sig­nif­i­cant new growth op­por­tu­ni­ties for both for­eign and do­mes­tic play­ers. As a re­sult of it, In­dian ap­parel in­dus­try is wit­ness­ing some spe­cific trends.

5.1 Sus­tain­able and eco-friendly man­u­fac­tur­ing

As the coun­try is con­fronted with pol­lu­tion is­sues, it has be­come

im­per­a­tive for tex­tile in­dus­tries to adopt eco-friendly strate­gies. The in­dus­try is fo­cus­ing on re­duc­ing water con­sump­tion and tech­niques to avoid us­age of organic colours in ap­parel man­u­fac­tur­ing. Con­sumers are sen­si­tive and are in­creas­ingly get­ting aware about en­vi­ron­men­tal is­sues, re­sult­ing in grow­ing in­cli­na­tion to­wards ecofriendly and organic ap­par­els. Brands/ pri­vate la­bels have started cater­ing to this mar­ket es­pe­cially in ba­bies, kidswear and pre­mium adult wear cat­e­gory seg­ments.

5.2 In­creased in­cli­na­tion to­wards smart gar­ments

With tech­no­log­i­cal pen­e­tra­tion in ev­ery­one’s lives, gar­ments too are wit­ness­ing some ma­jor up-gra­da­tion in tech­nol­ogy. Af­ter smart phones, smart tele­vi­sions, smart watches, etc., ‘smart shirts’ have emerged as a new trend in ap­parel in­dus­try. Com­pa­nies are try­ing to woo the cus­tomers by pro­vid­ing smart shirts to the grow­ing tech freak pop­u­la­tion of the coun­try.

Right now, the wear­able tech­nol­ogy mar­ket mainly con­sists of wear­able de­vices such as fit­ness bands, smart watches etc. But, re­cently there has been a shift to­wards smart gar­ments among pre­mium and lux­ury cus­tomers.

5.3 Smart ca­su­als

Cor­po­rate dress­ing these days is not re­stricted to strict for­mal wears in pas­tel colours and min­i­mal de­signs but has gone un­der a tran­si­tion. In women’s wear the con­cept of smart ca­su­als has care­fully re­placed tra­di­tional for­mal wear such as sa­rees, western for­mals and sal­war-kameez. In­creas­ing in­clu­sion of smart ca­su­als or semi-for­mals has re­sulted in ac­cep­tance of chi­nos and other re­laxed trousers along with half sleeved shirts or t-shirts.

5.4 Con­tin­ued rise of ‘or­gan­ised re­tail’

The In­dian fash­ion re­tail in­dus­try is trans­form­ing rapidly and is see­ing shift from un­or­gan­ised to or­gan­ised re­tail. The trans­for­ma­tion is due to in­crease in in­come, in­creased pen­e­tra­tion of branded wear in coun­try and aware­ness of fash­ion trends among con­sumers

But, nowa­days cou­ture is not lim­ited to met­ros only. Tier -II cities and semi­ur­ban cities have emerged as huge po­ten­tial mar­kets for these or­gan­ised play­ers. Pen­e­tra­tion of or­gan­ised re­tail chains has con­trib­uted to the growth of ap­parel mar­ket in these mar­kets. Mar­ket ex­pan­sion in non-met­ros seems an lu­cra­tive op­por­tu­nity for do­mes­tic and in­ter­na­tional brands. Once con­sid­ered value con­scious con­sumers of tier -II cities are now open to spend more on fash­ion and look good. Ap­parel re­tail in non-met­ros is grow­ing ex­po­nen­tially due to which more brands are en­ter­ing hin­ter­lands.

5.5 Ap­parel sales in e-com­merce

Online shop­ping in In­dia is not a new phe­nom­e­non any­more, al­though it is in nascent stage but bloom­ing very rapidly. E-com­merce has grown in re­cent years and has touched ev­ery per­son’s life. It has played a very vi­tal role in bridg­ing the gap be­tween con­sumers re­sid­ing in tier -II and tier -II cities and pre­mium wear sellers. It has made avail­abil­ity of pre­mium brands in semi ur­ban ar­eas where these brands have no re­tail out­lets.

In In­dia, e-com­merce por­tals and mar­ket­places have es­tab­lished them­selves by pro­vid­ing huge dis­counts to lure cus­tomers thus chang­ing the con­sumers’ mind­set and pro­vid­ing wider range of prod­ucts to choose from. Ac­cord­ing to Technopak Anal­y­sis, cur­rently there are 431 mil­lion internet users which is ex­pected to reach 750 mil­lion by 2026. Cash crunch due to de­mon­eti­sa­tion along with im­prove­ment in net bank­ing fa­cil­i­ties will fuel the growth of e-com­merce in the coun­try. The gov­ern­ment’s ini­tia­tives to de­velop cash less, in­clu­sive and dig­i­tal cit­i­zens has pro­vided fur­ther boost to e-com­merce in­dus­try. The e-tail­ers have started launch­ing their pri­vate fash­ion la­bels to in­crease their profit mar­gins.

6. Chal­lenges for Fash­ion Re­tail in In­dia

De­spite of grow­ing at a promis­ing rate, In­dian fash­ion re­tail is fac­ing its own chal­lenges. Some of the ma­jor chal­lenges faced by fash­ion in­dus­try in the coun­try are as fol­lows:

6.1 In­fras­truc­tural bot­tle­necks and ef­fi­ciency

In­dian fash­ion re­tail in­dus­try faces chal­lenge of in­ad­e­quate in­fra­struc­ture such as poor con­di­tions of roads, high­ways etc., which re­sults in be­com­ing road­block in growth of ap­parel fash­ion in­dus­try. In­dia, to grow to its fullest po­ten­tial, would have to in­vest heav­ily in in­fra­struc­ture such as proper con­nec­tiv­ity of roads, in­land wa­ter­ways, etc.

Ac­cord­ing to World Bank’s Lo­gis­tics Per­for­mance In­dex 2016, In­dia ranks at 35 when com­pared to 160 coun­tries. It scored 3.42 on a scale of 5, thus show­ing a huge scope of im­prove­ment in in­fra­struc­ture which is a ma­jor hur­dle in lo­gis­tics of the ap­parel in­dus­try.

6.2 Poor internet pen­e­tra­tion in the coun­try

De­spite e-com­merce bloom­ing in the coun­try, In­dia has poor internet con­nec­tiv­ity as com­pared to other grow­ing economies. In In­dia, e-com­merce is in its nascent stage but has grown sig­nif­i­cantly in the last fif­teen years and is set to grow at a high rate in the next decade. How­ever , the qual­ity of internet ser­vices pro­vided is poor due to lack of in­fra­struc­ture. To en­sure long term growth of e-com­merce in In­dia, it is es­sen­tial to up­grade the internet ser­vices. Un­less, the gov­ern­ment takes ini­tia­tives in this di­rec­tion, e-com­merce in­dus­try would not be able to reach its fullest po­ten­tial. In ad­di­tion, Cy­ber se­cu­rity is an­other ma­jor threat in e-tail in­dus­try.

6.3 Chang­ing con­sumer be­hav­iour

In to­day’s busi­ness en­vi­ron­ment, con­sumer is the king. It has be­come im­per­a­tive for the man­u­fac­tur­ers to cater to the con­sumers ac­cord­ing to their taste and pref­er­ence. With mass me­dia pen­e­tra­tion and grow­ing dis­pos­able in­come, In­dian con­sumers have be­come more de­mand­ing and adapt­able to change in fash­ion. With the rapidly chang­ing pro­file of con­sumers, it has be­come chal­leng­ing for re­tail­ers to keep up with shift­ing shop­ping de­mands. Shop­pers to­day are well in­formed about fash­ion trends and de­mand ac­cord­ingly. Thus, it be­comes chal­leng­ing for re­tail­ers to cater their cus­tomers with con­stant change in pref­er­ences.

The medium price seg­ment holds ma­jor­ity of the share among ap­parel seg­ment by hold­ing 29 per­cent fol­lowed by econ­omy which holds 28 per­cent of the share of the ap­parel mar­ket of the coun­try.

Once con­sid­ered value con­scious, con­sumers of tier -II cities are now open to spend more on fash­ion and look good. Ap­parel re­tail in non-met­ros is grow­ing ex­po­nen­tially due to which more brands are en­ter­ing hin­ter­lands.

Ac­cord­ing to Technopak Anal­y­sis, cur­rently there are431 mil­lion internet users which is ex­pected to reach 750 mil­lion by 2026.

In­dia has an ad­van­tage of hav­ing a unique age group of 20-25 on which it can cap­i­tal­ize on, which is called de­mo­graphic div­i­dend. On the other hand, western economies have a bur­den of age­ing pop­u­la­tion. How­ever, the in­dus­try is strug­gling with the chal­lenge of short­age of skilled work­force.

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