25 May 2023, Mumbai  

Brands and mall operators have stated that the slight increase in shopping over the weekend can be attributed to the ongoing wedding season and summer vacation plans, rather than the Reserve Bank of India's (RBI) decision to withdraw ₹2,000 notes from circulation. Cash transactions in some stores did show a slight spike.

Timeframe and Consumer Behavior

The extended deadline until September for depositing or exchanging ₹2,000 notes has contributed to the absence of a rush. Mall operators believe that the current momentum, driven by the wedding season, will continue as people have sufficient time to utilize their money. Consumers, seeking better discounts offered through credit cards, are also opting for non-cash transactions.

Retailers' Response

Factors Driving Shopping Activity; Leading fashion and lifestyle retailers, continue to accept ₹2,000 notes. While some retailers have observed a marginal increase in cash transactions, most have not experienced a significant impact from the withdrawal of the high-denomination notes.

The cash component of sales remains consistent, indicating that customers are not primarily visiting stores to dispose of ₹2,000 notes.

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18 May 2023, Mumbai

The Indian apparel and footwear market is set to experience substantial growth from 2023 to 2028, with an estimated compound annual growth rate (CAGR) of approximately 11.28%, according to QuadIntel.

In recent years, the apparel and footwear industry in India has witnessed noteworthy trends. One prominent trend is the escalating demand for sportswear and comfortable casual clothing, largely influenced by the COVID-19 pandemic. Consequently, there has been a surge in the market for occasion-based casual wear made from stretchable and breathable materials, with a strong emphasis on comfort.

A key driving force behind the growth of the apparel and footwear market in India is the profound impact of social media on consumer purchase patterns. As consumers spend more time on social networking sites, they gain greater awareness of brands and their offerings. This increased exposure to different brands and their products has significantly influenced consumer preferences and buying behavior.

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15 May 2023, Mumbai

Western luxury brands are not exactly strangers to India as they have inspired luxury concepts and designs and many Indian suppliers have been catering to Western luxury houses for years. However, it wasn’t really considered a hot ticket in the market.

Well, all that’s changed as the nation emerges as the fifth largest global economy, and the domestic appetite for luxury is fuelled by a growing number of millionaires and unicorn entrepreneurs who can’t seem to have enough touches of luxury in their lives.

As per Credit Suisse Global Wealth Report 2022, the number of millionaires in India is expected to double from 796,000 in 2021 to 1.6 million in 2026. Euromonitor International states, India’s luxury goods market will grow by 4.8 percent over the next five years and is expected to reach an estimated $7.5 billion.

Western luxury brands have now included this dynamic and thriving market as a “must-have” destination. In 2002, Louis Vuitton was the first international premium luxury brand to arrive, followed by Dior, Hermes, Burberry, and Chanel.

Entry of global luxe conglomerates

The iconic Paris department store, Galeries Lafayette in India’s financial capital, Mumbai is the mark of growing demand for all things luxury in India. The store has taken over and refurbished two-hundred-year-old buildings in the Swish Fort area.

With a portfolio of over 200 luxury brands in a space that spans 90,000 sq. ft, Galeries Lafayette will open its doors in Mumbai in 2024 with a second store in Delhi spread over 65,000 sq. ft in 2025.

The grande dame of Boulevard Haussmann has tied up with Aditya Birla Fashion and Retail (ABFRL) in a strategic partnership that truly heralds that India has indeed arrived in the circles of luxury.

Nicolas Houzé, CEO, Galeries Lafayette and BHV Marais is excited. He says the Indian entry in 2024 is the store’s strategic plan to have 20 outlets outside France and for this reason, it is focused on the Gulf region, China, and other parts of Asia.

The Galeries Lafayette tie-up with ABFRL reinforces the entry of such Indian conglomerates unto the echelons of luxury brands. Reliance Brands (RBL) is India’s largest player in the luxury market and has partnerships with 60 brands, including Tiffany, Burberry and Giorgio Armani.

Spend on luxury to grow

Ernst & Young recently published a report that said India’s GDP will reach $26 trillion and its per capita income will touch $15000 by 2047, placing it among the top developed economies.

Over the next decade, India will be the fastest-growing economy owing to its strong domestic demand, physical and digital infrastructure, and global competitiveness.

As per a Bain and Company report, India’s luxury market is expected to grow 3.5 times the current size and reach the $200 billion mark by 2030, propelled by a rising number of UHNWIs (net assets with $30 million or more), growing entrepreneurship, strong middle class, greater penetration of e-commerce and demand from Tier II and III cities.

The number of ultra-rich grew 11 times in the last decade in India, making it third in the billionaire population globally after US and China in 2021, as per Wealth Report 2022 by Knight Frank.

For all the opportunities that India represents for Western luxury brands, this complex market can yield tremendous returns on investments if these brands acquire the deep knowledge of India’s diverse local cultures that end of the day drive perceptions and decisions.

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 19 May 2023, Mumbai  

Pump'd, the innovative direct-to-consumer fashion wear brand catering specifically to athletes, is set to revolutionize the active wear market with its extensive range of clothing options for both men and women.

The brand offers a wide selection of tank-tops, T-shirts, leggings, capris, tracks, and joggers, ensuring athletes have access to comfortable and functional attire suitable for various activities like workouts, walks, and daily routines.

What sets Pump'd apart is its attention to detail in garment design, with each piece in the collection—comprising a total of 150 styles—featuring specialized features such as anti-odour properties and UV protection.

RattanIndia Enterprises, a prominent player in the Indian business landscape, is the driving force behind the launch of Pump'd. This exciting addition to RattanIndia's portfolio falls under its Neobrands subsidiary, which is dedicated to developing cutting-edge consumer brands that meet the evolving needs of the market.

In a strategic move to ensure widespread accessibility, Pump'd is now available for purchase on Amazon, the popular e-commerce platform.

Pump'd is poised to make a significant impact in the world of active wear, providing athletes with high-quality apparel that supports their performance and lifestyle needs.

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17 May 2023, Mumbai

Agilitas Sports, a sportswear and athleisure solutions platform, has been launched by top executives of Puma India, led by Abhishek Ganguly, the outgoing managing director.

What all you need to know

The platform aims to revolutionize the sportswear industry in India by integrating innovation and technology throughout the product value chain.

Agilitas Sports secured a total investment of ₹400 crore, with Convergent Finance LLP providing advisory services and funds, while individual investors contributed ₹30 crore. The founding team of Agilitas Sports consists of Abhishek Ganguly, Atul Bajaj, and Amit Prabhu, who will be departing from their positions at Puma India.

The partnership with Convergent Finance LLP will support Agilitas Sports in operations, capital allocation, and long-term business strategy.

The global sportswear and athleisure market is projected to reach USD 358.08 billion by 2023, with a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. While in India, the sportswear and athleisure market is expected to reach $40.64 billion by 2027, growing at a CAGR of 7.82% from 2022 to 2027.

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12 May 2023, Mumbai 

E-commerce growth in India is experiencing a slower pace than expected, with the pandemic-induced surge in online shopping waning. Data from Unicommerce, an e-commerce-focused warehouse solutions provider, reveals a 16% year-on-year volume growth in the March quarter, compared to an estimated 35% growth for the fiscal year 2023.

Industry executives attribute the slowdown to factors such as a consumption slowdown, decreased discounts from new-age brands amid a funding winter, and a decrease in disposable income.

Smartphones, a major driver of sales on platforms, have witnessed declining volumes for three consecutive quarters. Furthermore, the beauty and personal care category has also seen a downturn, expanding only 11% in the March quarter compared to a significant growth of 143% in the previous fiscal year.

As a result, companies are reassessing e-commerce as just another sales channel, emphasizing the need for a balance between online and offline channels.

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The mall culture and e-commerce platforms have made shopping an experience across India. Both domestic fashion brands along with mid and premium-range global fashion brands are experiencing unprecedented growth in Tier II and III cities, where aspirational lifestyles fuelled by higher income levels are propelling growth.

In smaller markets, the big and small domestic brands are making great headway as they offer their products at far more affordable prices compared to international brands and cater better to the needs and preferences of Indian consumers in specific states. While fashion brands vary in size and scope, it is only super-premium global brands that operate only in the metros whereas the rest are now jumping onto the general bandwagon that serves regional or niche markets across India.

Big retailers spearhead inroads into smaller towns

While small brands do well in smaller cities, big retailers have also seen the opportunity and are spreading their footprint. Aditya Birla Fashion and Retail (ABFRL) is operating several fashion brands, including Louis Philippe, Van Heusen, Allen Solly, Peter England and Panataloon with showrooms across 400 cities in India. Reliance Retail, one of the largest retail companies in India operates a variety of retail formats including supermarkets and lifestyle stores with stores like Avantara, Reliance Trends, CENTRO and others spread pan-India to offer customers a complete lifestyle experience or aesthetic.

Shoppers Stop another leading retailer operates a chain of department stores offering a wide range of fashion, lifestyle, and home products and is one of India’s most recognizable retail brands, with a network of over 80 stores across India.

Along with these big names are smaller domestic brands such as Sparky, with its ‘Make in India’ ethos that is gaining popularity across the country. The bigger retail outlets in different states also sell a specially curated selection of apparel and lifestyle products that give a customized local touch whenever needed, unlike global brands.

Women’s apparel sales top the local charts

Indeed, there is more growing interest in trending fashion as more women join the workforce in Tier I and II cities. As demand rises, ethnic wear is expected to have significant growth in smaller towns over the next few years. The four different categories of saris, salwar kameez/churidar kurtas, lehenga cholis and Indo-Westerns sell well among all economic segments and age groups.

The growing popularity of social media such as Facebook, Instagram, Twitter, and other fashion blogs is creating more style awareness among women smaller cities. E-commerce by far has been the major catalyst in retail penetration into smaller towns. Tata CLiQ as an Indian e-commerce hybrid platform owned by Tata Group is doing well along with online fashion and lifestyle e-commerce platforms such as Amazon, Flipkart, Myntra and Jabong among others.

All of them feature products from many national and international brands, as well as private label brands. Customers can shop from just about anywhere with the help of high-tech detailed product descriptions, customer reviews, easy-to-use interfaces and convenient payment options and reliable delivery and easy exchanges.

The new India is in its smaller towns and if the retail giants have their finger on the pulse where the action is, profits will only keep coming in.

16 May 2023, Mumbai 

India falls behind in the global market for plus-size clothing despite having a large consumer base with sizes beyond UK 12, according to Statista.

What all you need to know

The global plus-size clothing market is expected to exceed $696,712 million by 2027, which presents a significant opportunity for India to create stylish and good-quality garments for the oversized segment.

With an abundance of different textiles, Indian designers can create comfortable outfits while playing with prints, textures, and embroidery on a larger canvas of fabric.

While there has been a change in attitude towards body positivity and inclusivity in fashion, there is still a stigma attached to plus-size fashion in India. This has resulted in a limited variety of styles available in physical stores, causing discomfort and shame for those who want to wear plus-size clothes.

However, with the rise of e-commerce and social media, there has been a slow shift toward creating garments for different body shapes and types.

Designers can combat the issue of disparity in sizes by providing custom fits to boost buyers' confidence and put them at ease.

Additionally, oversized clothing is not exclusive to the plus-size segment; those with smaller frames can also appreciate the comfort and breezy fit of loose outfits.

India also has the opportunity to tap into the global market for plus-size clothing by creating stylish and good quality garments for the oversized segment.

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11 May 2023, Mumbai 

Khadi and Village Industries Commission (KVIC), the statutory body under the Ministry of MSME, has achieved remarkable success in promoting khadi and village industries' products.

The commission recorded sales worth Rs 1.08 lakh crore until January 31, 2023, in the previous fiscal year. Furthermore, during this period, KVIC generated employment opportunities for 1.72 crore individuals.

In the entire fiscal year 2021-2022, KVIC reported a production value of Rs 84,290 crores, with sales reaching Rs 1,15,415 crore. This impressive growth showcases the increasing popularity and demand for khadi and village industries' products.

The Khadi and Village Industries Commission plays a vital role in promoting employment and skill development. The program provides aspiring entrepreneurs with credit up to Rs 50 lakh for manufacturing units and up to Rs 20 lakh for service units.

With its continued commitment to skill development and promoting employment, KVIC is set to further contribute to India's economic growth and rural prosperity.

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Ethnic wear is trending like never before as new generations of designers and brands are giving it a modern tweak, making it unique and trendy, straight off European catwalks. Women’s office ethnic wear earlier would be Western wear or saris but over the last few years, a new trend of wearing different styles of smart Indian wear or Indo-westerns has increased, with the ethnic wear market currently growing at around 20 per cent per annum.

Though the basic categories of salwar-kameez, lehengas, kurtas, kurtis and leggings among others have remained the same, it’s the style and cut that’s doing the talking. The unorganized segment dominates around 80-85 per cent of the market while the more expensive organized segment of 15-20% is around Rs 28,000-37,000 crore in size. In the smaller organized ethnic wear segment, over 40 per cent is mid-value while 30 per cent is the premium, super-premium and luxury brands.

Mergers and acquisitions widen market

Looking at the immense opportunities in the category, some of India’s top corporate houses, including Aditya Birla Fashion, Reliance Retail and Tata-owned Trent and Taneira by Titan are making inroads into the segment through a series of acquisitions and mergers. Brands such as W and Aurelia, both from TCNS Clothing, as well as stand-alone brands such as Biba Apparels founded by Meena Bindra have helped fuel growth in the women’s segment. Manyavar from Vedant Fashions is doing well in the men’s segment and Fabindia in both men and women’s segments. Tata-owned Trent has also launched an all-new brand called Samoh, which will accelerate its marketing and promotional strategies to compete with Reliance Retail and Aditya Birla Fashion in the ethnic wear space

Reliance Retail and ABFRL lead the segment

The two biggies of the apparel segment namely Reliance Retail and Aditya Birla Fashion are tying up with the big names in the business while the going is good. Reliance Retail, has tied up with high-end designers including Satya Paul, Raghavendra Rathore, Ritu Kumar, Anamika Khanna, Manish Malhotra, Rahul Mishra and Abraham & Thakore to showcase their product portfolios in their stores. At the same time, it has been aggressively pushing its affordable ethnic wear mid-segment range through its Reliance Trends stores and in-house brands such as Avantra by Trends.

As per the company in 2022, Reliance Retail has built capabilities through organic growth, acquisitions and strategic partnerships with investments near Rs 30,000 crore n FY 2021-22. Reliance Retail added over 2,500 new stores and 11.1 million space during the year and opened around seven stores a day across India.

Aditya Birla Fashion and Retail (ABFRL) has now gone beyond its Pantaloons chain to a much wider audience with new collaborations and stores. ABFRL will be acquiring a 51 per cent stake in ethnic wear company TCNS Clothing for Rs 1,650 crore. This is one of the biggest-ever deals in the apparel segment in India. This part-cash, part-equity deal will involve buying the founding promoter’s stake as well as making a conditional open offer and will be completed in the next three to four months.

Ashish Dikshit, MD, ABFRL has said in media interactions, that from here on, they are looking to rapidly grow ethnic wear business and focus on scaling up the portfolio. They are looking at small acquisitions of digital brands or within categories such as activewear, youth wear and athleisure. He says, nothing will compare to the efforts they put to increase their presence in ethnic wear, which is a third of the total apparel market in India. And having built a portfolio of brands, both organically and inorganically, over the last few years, ABFRL is now looking to fast forward growth.

Indeed, ethnic wear is the largest apparel category in India at Rs 1.84 trillion which is around 30 per cent of the Rs 6.15-trillion domestic apparel market. Most brands are now including this segment in their portfolio as it could well be their fast ticket to success in future.

15 May 2023, Mumbai 

India's domestic fashion brands are witnessing remarkable growth, particularly in Tier II and III cities, as they continue to dominate the fashion market. These domestic brands accounted for an impressive 60% share of the total fashion market in India in 2020, according to a recent report by the Confederation of Indian Industry (CII).

What all you need to know

The report projects that this upward trend will persist, with domestic brands expected to grow at a compound annual rate of 10% from 2020 to 2025.

These brands have a deep comprehension of the cultural nuances and sensibilities unique to the Indian market, enabling them to create products that resonate with their target audience.

Another factor contributing to the triumph of domestic brands is their ability to offer products at more affordable prices compared to their international counterparts. This affordability factor holds particular significance in price-sensitive Tier II and III cities, where consumers are conscious of their budget. By providing cost-effective options without compromising on quality, domestic brands have gained a competitive advantage and successfully gained market share in these cities.

The success and growth of India's domestic fashion brands signify a shift in consumer preferences and the rising influence of indigenous fashion. As these brands continue to expand their reach and cater to the evolving demands of Indian consumers, they are poised to further strengthen their dominance in the fashion market, especially in Tier II and III cities.

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