FUTURE OF THE BUSINESS OF THE INDIAN WINTER WEAR MARKET: A RESEARCH BY TECHNOPAK
Branded and unbranded segments of the winter wear market are both working on offering innovative products, team Technopak takes a look at this rapidly emerging segment.
Branded and unbranded segments of the winter wear market are both working on offering innovative products, new fibre blends and competitive prices to accelerate the purchasing of winter wear and to beat the unpredictable weather conditions in India. Amit Gugnani, Senior Vice President - Fashion (Textile & Apparel) with Goutham Jain, Principal Consultant, Fashion–Textile & Apparel, and Saima Nigar, Associate Consultant - Fashion & Textile Division from
Technopak takes a look at this rapidly emerging segment...
The Indian sub-continent is known for its diversity, not just in terms of culture but in terms of weather and climatic conditions. Northern India witnesses winter season from mid Nov – mid Jan. Though it spans for about three months it provides for a sizeable market opportunity for apparel brands/retailers.
The winter wear market in India was pegged at `17,790 crore in 2017. The market is expected to demonstrate a Compound Annual Growth Rate of 4 percent to reach `25,488 crore by 2027. Currently, the unbranded segment commands nearly 70 percent of the market share, with the branded segment trying to bridge the gap by innovating and offering new products.
WINTER WEAR SUB CATEGORIES:
The winter wear category can be further classified into men’s winterwear, women’s winterwear, boys’ winterwear and girls’ winterwear. Men’s winterwear accounts for 49 percent of market share followed by women’s (22 percent), boys’ (15 percent) and girls’ (14 percent).
MEN’S WINTER WEAR
The men’s winter wear market was estimated at `8,777 crore in 2017 which is expected to grow at a CAGR of 3 percent to reach the market of `12,121 crore by 2027.
The key products in this segment are jackets, sweaters, pullovers, cardigans, sweatshirts, mufflers, thermals, blazers and suits, etc.
WOMEN’S WINTER WEAR
The women’s winter wear market was worth `3,807 crore and is expected to grow at a CAGR of 3 percent for the next 10 years to reach the market of `5,147 crore by 2027. Women winter wear in tandem with other women’s apparel categories is witnessing growth due to the increased women workforce and their tendency to spend more on repeat purchases. Women’s winter wear is usually more fashionable with wide range of designs, feels and embellishments.
Major winter wear products in this segment are sweaters, cardigans, pullovers, stoles and shawls, thermals, innerwear, track suits, sweaters cum kurtis, etc.
KIDS’ WINTER WEAR
Kidswear segment in India is gaining traction in the overall apparel market. Many national and international brands are finding kidswear a lucrative segment and have started catering it making it to grow rapidly. Kids winter wear too is leveraging the benefit of the drive and is witnessing a shift towards organised retail.
BOYS’ WINTER WEAR
Boys’ winter wear market was estimated to be worth `2,666 crore in 2017 which is expected to grow at a CAGR of 6 percent to reach `4,636 crore by 2027. Majority of boys’ winter wear product comprises sweaters, jackets, blazers, thermals, innerwear, sweatshirts, etc.
GIRLS’ WINTER WEAR
The girls’ winter wear category was estimated to be worth `2,540 crore in 2017 and is expected to grow at a CAGR of 3 percent to reach `3,584 crore by 2027.
Key products of girls’ winter wear include cardigans, scarves, jackets, knee lengths, thermals, innerwear, tunics, etc.
GROWTH DRIVERS OF WINTER WEAR
Despite several challenges, winter wear can attribute its growth to the following mentioned growth drivers:
Gone are the days when winterwear consisted of basic sweaters, shawls, cardigans or trousers only. Increasing fashion awareness and rising disposable income has resulted in increased demand of trendy and colourful apparels to meet season’s requirements as well as address the fashion needs of the consumers.
From jackets to suits, sweaters to thermals, the wide collection on offer by both upscale brand stores and unbranded small retailers are trying their best to attract more customers. However, since this category is seasonal, brands need to invest in heavy marketing and supply chain management strategies to churn out maximum profit during winter season.
Many national and international brands are finding kidswear a lucrative segment. Kids winter wear too is leveraging the benefit of the drive and is witnessing a shift towards organised retail.
Many new winterwear categories have emerged due to the changing climatic pattern. Reduced winters have led in the emergence of semi-thermal or pre-winter categories. Millennials are ready to experiment and to cater this segment, retailers are providing them ample options in terms of sweatshirts, ponchos, Indo-western tunics, etc.
The product portfolio of brands/retailers now includes a whole range of products such as mufflers, warm caps, hats and footwear complimenting the main products like sweaters, jackets and pullovers to capture higher share of consumer’s wallet.
Over the last few years, major innerwear brands have expanded their product portfolio to include thermal innerwear/comfort wear for every segment of the market.
Increased fashion awareness
With increased Internet penetration and exposure to media, Millennials are aware about the changing fashion trends in the international market resulting in increased demand of variety of products in apparel categories. This is applicable to winterwear segment also.
Factors such as fashion awareness, rapid urbanisation, higher disposable income and rising aspirational lifestyles have resulted to a more want based purchasing of fashionable products in every season.
Indian winter wear market is attracting a lot of international and domestic brands owing to these growth drivers. In case of winter wear, brands have a significant market opportunity as the margins are higher in comparison to other product categories. Despite such promising growth, the seasonality of sales, lack of skilled labourers, availability of cheap imported products, huge unorganised market and changing climatic pattern have become major challenges for the retailers.
Thus, it becomes prudent for the retailers, to device strategic planning and innovation along with the fashionable products, competitive pricing, aggressive marketing etc., to cater their target customers to capture maximum market share in this booming apparel market segment.
Due to seasonality of sales, lack of skilled labourers, availability of cheap imported products, huge unorganised market and changing climatic pattern the winter wear market has become a major challenge for the retailers.