Apparel April 2019 Apparel April 2019 issue | Page 32

MARKET WATCH
Lotto Partners with Ace
Turtle to Boost India Retail
Italian sportswear brand Lotto has partnered
with Ace Turtle to strengthen its presence in
the Indian market. Lotto, which currently has
40 stores in the country, plans massive retail
expansion and will be adding 60 stores every
year. It is banking on Ace Turtle’s technology to
increase its customer base in India and drive its
online sales, especially in Tier III and IV cities and
other smaller cities. Ace Turtle is a market leader
in omnichannel enablement. Its platform would
play a critical role in enabling a unified brand
experience for Lotto’s customers across various
channels. Lotto aims at scaling its omnichannel
presence to expand its reach to customers who
do not have access to its physical stores.
Lotto has created a niche in the Indian
sportswear market targeting value segment
customers. It has grown significantly over the last
two or three years at a healthy compound annual
growth rate (CAGR) of 50 per cent. Over the
years, it has invested significantly in strengthening
its in-house design capability and operational
processes. In India, Sports Station India holds the
licence to manufacture and retail the Lotto brand.
With customers increasingly switching between
various sales channels (offline and online), it
makes sense for brands to adopt a robust
omnichannel strategy.
India’s Export to China
Reaches New High
China is an important trading
partner for India with an
import of US$65.22 billion
worth of goods and export of
US$15.10 billion for the period
April–February 2019, recording
an all-time high in exports and
Dr K V Srinivasan,
a sharp decline in imports
Chairman, TEXPROCIL
from China. The trade balance
between the two countries in the year
2017-18 was US$63.05 billion in favour of
China, which has now shrunk to US$50.13 billion
(from US$57.87 billion for the April–February
2017-18 period).
In a statement, Dr K V Srinivasan, Chairman,
The Cotton Textiles Export Promotion Council
(TEXPROCIL) complimented Shri Suresh Prabhu,
Hon’ble Minister of Commerce and Industry &
Civil Aviation, for this path-breaking achievement
in reducing the trade balance. He pointed out
that exports of cotton textiles had contributed
to the reduction in trade deficit as export of
these items during April–February 2018-19 had
increased by 69 per cent (US$1,555 million)
over the previous year similar period (US$919.76
million). Shri Srinivasan pointed out that the
export of cotton textiles can increase further if
the tariff disadvantage of 3.5 per cent to 10 per
cent suffered by India in comparison to Vietnam,
Pakistan, Indonesia, etc. on textile products is
addressed by making further special efforts.
Shri Srinivasan added that higher exports of
cotton textiles, including fabrics and made-ups,
can not only continue to significantly contribute to
the reduction of trade imbalance but also lead to
attracting investments from the labour-intensive
industries shifting out of China.
Fashion Dominates Indian Luxury Spending: Study
Indians spent more on high-end fashion than jewellery in 2018, reveals a study by American Express. While jewellery
spending dominated the category till 2013, other segments, including electronics and high-end fashions, are growing in
share and even surpassing jewellery spend in certain markets.
Nearly 70 per cent luxury spending in India contributed at the top 15 per cent of merchants, but there is a huge
opportunity for retailers and local high-end merchants to understand customer demands and preferences, and tap into
their aspirations. Delhi, Mumbai, and Bengaluru were cities that had the highest number of luxury spends in 2018, while
Kolkata and Chennai emerged as new centres for luxury consumption. Luxury spending in India grew at four per cent
Compound Annual Growth Rate from 2013 to 2018. Fashion from high-end boutiques was 42 per cent of the total
spend and jewellery at 32 per cent. Fashion followed by jewellery was the top purchase in Mumbai, but jewellery came
above fashion in Delhi. In Bengaluru and Chennai, fashion was the top purchase followed by electronics. Women make
up 33 per cent of the luxury market and tourists spend the most on clothing and jewellery.
26
I APPAREL I
April 2019