The Future of Fashion Apparel in India

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The presentation talks about the current scenario of fashion industry and key factors affecting its future. Feel free to use our content, and acknowledging it.

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  • Hi. I am writing a paper on Indian fashion industry projections. May I use your findings? Would you be able to send me the actual deck with the reference sources please? Thank you.
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  • Hey, Its a great presentation and it would be very helpful to know the references you have used for your statistics. It would be great if you could sent them to me at tajain20@student.scad.edu. Thanks
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  • Loved this presentation. I would like a copy on makganvir@gmail.com if you don't mind please.
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  • so much interested in this ppt can u share to mdjuher143@gmail.com
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  • why ths shit is nt saving!!!!
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The Future of Fashion Apparel in India

  1. 1. THE FUTURE OF FASHIONAPPAREL IN INDIA By : Harminder Sahni Management Consultants
  2. 2. Indian Apparel Industry
  3. 3. The Overall opportunityThe Indian apparel industry is estimated to grow at a CAGR of 15% over the next fiveyears. Spending on Apparel constitutes around 4% of household expenditure in IndiaThe Indian Apparel Industry: Indian Apparel Industry, Value 000’ crores• Valued at around 200,000 crores, in 2011 500 406• Estimated to increase to over 400,000 400 CAGR: 15%crores, by 2016 300 200 200 154• Projected to grow at a CAGR of 15% 126 100 0 2007 2009 2011 2016(E) Others • Apparel and clothing contributes to 18% around 4% of the Indian household’s Food andContribution Leisure and Bev. consumption expenditure every month eduto monthly 4% 38% • Factors like fast growing purchasingexpenditure Transport power, improving retail reach, influx ofof different and comm. international brands means the spend on 19%sectors Health Housing this industry is expected to augment 5% Apparel 12% further in the future 4%
  4. 4. Per Capita Apparel consumption: Global comparisonIndia has one of the lowest per capita consumption in the apparel industry, accountingto only $33 currently. However, this also represents the high potential in apparel retail inIndia, which is bound to increase with rise in per capita income in the country 1,200 Per Capita Apparel Consumption, in $ 1,000 UK US 800 France Japan 600 400 200 India China 0 0 10,000 20,000 30,000 40,000 50,000 60,000 Per capita Income, in $ Size of the circle represents the size of the apparel industry, for the country in 2011
  5. 5. Size and Main CategoriesWomen wear is expected to become the dominant sector by value sales in the nearfuture. Both Kidswear and Women’s wear are expected to grow fastMain Product Categories: Contribution of various Categories• Women’s Wear is expected to be the 2011 2016largest sector in the Indian apparelindustry by 2016 25% 27% 35% 31%• Kidswear is also expected to grow inrelative contribution 7% 7%• Men’s wear is expected to undergo a 33% 35%shrinkage in relative importance Projected CAGR by categories, 2011-16 • Kidswear and Womens’ Wear are20% 16.7% 17.0% expected to be the fastest growing 12.5% 14.2% categories in the coming years10% • While Men’s Wear is expected to be 0% the slowest moving category Men’s wear Unisex Women’s Kidswear Wear
  6. 6. Key growth categories and segmentsSegments like Trousers/Skirts, Woven tops, Lingerie, Active Sports Wear represent goodopportunities for growth Key growth opportunity segments within each categoryWomen’s Wear Men’s WearSub Category CAGR (2011—16) Value in crore, Sub Category CAGR (2011—16) Value in 2016(e) crore, 2016(e)Trousers/Skirts 25% 7,581 Shirts 15% 51,540Woven tops 25% 3,242 T-Shirts 13% 9,817Lingerie 20% 27,621 Trousers 12% 31,800T-Shirts 20% 1521Western Suits 20% 1,247 UnisexJeans 18% 10,464 Active Sports 20% 3,670 WearNight wear 18% 6,063 Ties and Scarfs 15% 1,480KidswearKidswear 17% 28,970School Uniforms 17% 21,330
  7. 7. Fashion and Apparel Retail
  8. 8. International Fashion brands: Targeting the Indian youthIn the recent years, several International brands have entered the Indian retail industry,looking to target the growing expenditure by the Young Indian shopper Factors driving this growth: • A fast growing young population with high exposure to international brands and a significant propensity to spend • Massive retail space creation through spread of Malls, hyper markets and supermarkets • Boom in luxury retail segment • Rising purchasing power of the middle class consumer, creating an opportunity to retail to the masses • Declining opportunities and growth prospects in the International markets The youth potential: • Consumers in the age group of 15-34 years, represents around 35% of the total Indian population • 300 million youth would enter the labour force by 2025 • This consumer group tends to more geared towards the consumerism trend
  9. 9. Department Stores: Focus on PositioningThe success and demand for Department Stores in India is clear. With this, the majorDepartment Stores are consolidating their position in the mind of the Indian shopper 50+ stores 30+ stores “Bridge to Luxury” “Young & trendy lifestyle store” Major Large Format Department stores 75+ stores are targeting clearly identified customer segments and thus focusing on a distinguished market positioning to appeal to these customer groups. “Fashion at great value”
  10. 10. Exclusive Brand Outlets: Creating a Brand IdentitySeveral new entrants into the market have chosen to go the EBO way, which helps thesebrands create exclusive brand identities• A large number of new entrants into the Indian fashion retail industry have chosen to set upexclusive stores for their brands: • This creates a unique and consistent appeal and positioning in the mind of the customer for the brand • Keeps the control in terms of marketing efforts in the hand of the retailer
  11. 11. Multi Brand Outlets: Key to Brand penetrationDistribution through the Multiple brand store channel provides key opportunities forbrand to achieve greater reach to the Indian customerWhy Multi Brand stores are gaining popularity?• Effective channel for gaining access to mass consumer segment• Faster and wider reach of brands across the country, especially into smaller cities• Gives more Varity and choice to the customer • Thus attracting high footfall to these stores• Higher returns per rupee spent, as compared to Exclusive brand stores
  12. 12. Online Retail: Tapping the true potential Sales through online retail are growing fast and are leading to the rapid growth in the Indian fashion and retail industry Value, Online retail market in Active online shoppers in India, in India, in Rs crores Lakhs 7000 380 8000 400 CAGR: 37% CAGR: 43% 6000 300 4000 200 2000 90 2000 100 0 0 2011 2015 (e) 2011 2015 (e) Leading online retail categories, by As is evident, in India, apparel is still growth rate, 2010-11 lagging behind in terms of growth rates, especially relative to global averages Thus, there is a apparent potential for growth in online apparel retail, in the near futureSource: Industry reports and comscore media Metrix
  13. 13. Online Retail: The US e-commerce retail story According to a study by the US Census Bureau, clothing was the largest category retailed through the online channel in 2010 E-commerce sales, 2010 Percentage Distribution 16% 33% 12% 11% 5% 7% 9% 9% Clothing Computer hardware Electronics Furniture Non- Merchandise Office supplies Drugs and health aid OthersSource: US Census Bureau, Pew Research, ReutersNote: E-commerce sales is compromised of Catalogues, telephones and online sales
  14. 14. Fashion and Apparel Retail: Key to the future Target Young India Target Women’s wear category Distribute online The next leading Indian fashion retailer, would be an online retailer

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