12 January 2024, Mumbai
The market is set to reach $170 billion by 2026:
India's value retail market is projected to surge from $111 billion in 2023 to a whopping $170 billion by 2026, with apparel leading the charge, according to a report by Wazir Advisors.
This translates to a significant 15% compound annual growth rate (CAGR) over the next three years.
Affordable Fashion at the Forefront:
The rapid growth is fueled by rising incomes and increasing demand for affordable clothing, footwear, and accessories. Major retailers like Reliance Retail's Yousta, ABFRL's Style-Up, and Shoppers Stop's InTune have tapped into this potential by offering budget-friendly fashion options.
Rural Opportunity and Urban Limits:
While unorganized players still hold a dominant 79% market share, organized retail chains are making inroads, particularly in smaller cities and towns (Tier III or lower). These areas offer vast untapped potential, with average transaction values typically ranging from Rs 500 to Rs 2,500 and basket sizes between 2.5 and 7 items.
Digital Boost:
E-commerce platforms like Amazon, Flipkart, and Snapdeal are further powering this growth by providing convenient access to a wider range of value products, even in remote locations.
Overall, India's value retail market is on a dynamic trajectory, driven by changing consumer preferences, affordability, and digital reach.
The future looks bright for both established and emerging players in this promising space.
Gist
- Fashion Frenzy: $170 billion bonanza by 2026.
- Bargain Boom: Affordable styles fuel 15% annual growth.
- Rural Reach: Small towns embrace organized chains.
- Digital Drive: Online platforms expand product access.
- Bright Future: Open market welcomes new and old players.
