Apparel Retail in India
Apparel retailing, with an estimated annual growth of 12-15 %, is the second largest category in the Indian organised retail sector. Currently India is perceived to have the largest number of retail outlets in the world, with the number of malls predicted to grow two fold by the next year. With India on the radar of many international retailers, the apparel retail category is poised for accelerated growth as major retail developments take place at a drastic pace in many Tier II and III cities. The general pattern of apparel retailing have changed from a ‘made-to-order’ market, where customers flip through a catalogue of colors, sizes and types of clothing to pick and have it sewn, to a ‘ready-to-wear’ market with standard fashion elements, design patterns and brands (local and global).
Many Indian apparel brands have been appreciated in the international market, as a rising number global players gradually begin to see India as a hub of high quality fashion brands. Apparel retail has seen a great spurt in India as readymade branded apparels become the norm and a much preferred and inevitable choice for the rapidly growing urban populace. At present, men’s apparel accounts for nearly 46 % of the total apparel category, while women’s apparel market stands at 17 % and the kid’s market is pegged at 37 %. Much to the relief of the retailers and manufacturers, the craze for Western and Indo-western wear among the working women is on the rise. Organised retail has so far managed a very little penetration in this vertical, throwing it open for competition among the branded apparel retail players to cleverly exploit the potential market.
Many international as well as domestic giants in the apparel industry have joined the crowd to cash in on this lively and robust market. Marks & Spencer has plans to open around 40 more stores in the next five years, while Carrefour, one of the leading retail chains is planning to launch wholesale operations and other cash-and-carry outlets soon. On the domestic front, the Future Group and Mahindra retail have chalked out plans and strategies to start wholesale operations, while others like S Kumars Nationwide, Arvind Ltd, Alok Industries and Welspun India’s Welspun Retail are all set to explore the relatively unexplored markets. As countries like Korea and Taiwan move to heavy industries, India, along with China are heralded as the next big destinations in the apparel retail with high growth potential. Being a major contributor of Foreign Exchange, the government should formulate favorable policies especially in FDI, to hasten development in apparel retail category.
