The report titled “Apparel and Footwear Specialist Retailers in India” provides a comprehensive analysis of apparel and footwear retail industry in India, consumer shifts, growth sectors, market competition and market forecast.
Industry Overview: Whether one is in a city living a fast paced life or in a rural area living a slow and peaceful one, consumers are always rational when it comes to buying products. Except that habits and budget constraints can askew this assumption a bit. Whereas people with high budget and disposable income are seen spending their money on the luxury products by big international and domestic brands like Forever 21, Zara, Raymond. Adidas etc., people with limited disposable income are seen to choose and buy products according to the product’s value and worth with keeping up with the trends.
Given all the differences in how people choose to spend, one thing that is constant is the growth rate of demand of apparels and footwear products in India since the last few years. As brand awareness increases, technology advances, social media penetration and globalisation eases its way into our markets with better management of outlets and product offerings, apparels and footwear market is now more affordable than ever for all budget levels. With affordability, comes fast fashion which changes with trends and increase in sales.
Overall, the apparel and footwear industry has seen a boom of 9.7 percent making Indian fashion industry prominent in the retail sector since past few years.
Intersegment analysis: With menswear and footwear holding the major shares the industry, i.e. 41 percent, women’s wear and footwear shares 38 percent of the market with expected growth rate of 9.9. Kidswear and footwear being one of the fastest growing areas, it shares 21 percent of the market with an expected growth rate of 10.5.
Region wise distribution: The major market for apparels and footwear exists in urban areas like NCR Delhi, Mumbai, and Bengaluru etc. That said, since 70 percent of our population rests in rural areas, the market share states the high purchasing power of consumers in urban areas to buy quality products.
In recent times, apparel and footwear companies have also been penetrating in smaller markets of tier 1 and 2 cities. What is still lacking in these markets is the presence of recognised and big brands. Price sensitivity and value purchases discourage brands to enter the market.
Trends: The Indian apparel and footwear industry with its high growth rate and new opportunities in the market is witnessing several trends like shifting to sustainable and eco-friendly goods which has seen a good sale in recent years, producing tech-savvy goods possible with technological advances, increased sale on e-commerce platforms, increase in smart casual’s trend etc.
Future of Indian apparel and footwear Market: Indian apparel and footwear market is expected to witness a significant growth and stay strong in future as the market recovers from the effects of demonetisation. The larger portion of the growth will come to organised players as consumers’ behaviour changes and they move from non branded products to branded items.
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Ankur Gupta, Head Marketing & Communications