Apparel April 2019 Apparel May 2019 issue | Page 20

MARKET WATCH
India’s booming fashion and lifestyle market is
drawing the attention of the world’s retailers and
brands. The vastness of India’s fashion market,
with the promise of growth at every price point, is
the attraction. Going from tailor-made to ready-
made and national brands to international brands
and designer items is expected to increase the
value of the market three or four times.
New foreign brands are ready to enter the
Indian market. Thailand-based fashion brand Lyn
is preparing to enter India. So is Poland-based
sportswear brand 4F. Last year, a delegation of
several small and medium Turkish brands was
studying the Indian market.
The fashion segment in India has grown in
relevance over the years. Fashion accounted for
about 24 per cent of sales at Big Bazaar around
five or six years ago, but the category now
accounts for 37 per cent of the chain’s annual
revenues. At Big Bazaar, a chunk of annual
sales might be coming from food and grocery,
but the real growth and profits over the years
have come from an expanding fashion portfolio.
India’s fashion and lifestyle market has ballooned
10 times from 2000. The size of India’s overall
fashion retailing is expected to swell another 10
times in the next 20 years.
Khadi Sales Up 30 Per Cent
Indian Fashion Market
Grows Tenfold
Kewal Kiran Plans 200
Distributors
Kewal Kiran Clothing plans to have 200 distributors
across the country in the next two years. As of now,
there are some 125 distributors covering 25 states
and 209 cities. Currently, the company has 318
K-Lounge or exclusive brand retail stores nationally,
which is set to increase to 336 stores by this
financial year-end. The company’s leading brand
is Killer, and other brands include Lawman Pg3,
Integriti, and Easies. Addictions, the accessories
wing, offers deodorants, watches, wallets, belts and
inner wear.
Kewal Kiran has one of the largest consumer
bases in the apparel industry. Multi-brand outlets
contribute 51 per cent sales, own retail outlets
under K-Lounge and exclusive brand outlets
contribute another 21 per cent to revenues.
National chain stores like Shoppers Stop, Lifestyle
and e-commerce together contribute 16 per cent
to revenues. Five per cent of sales come from
overseas markets.
Geographically, the eastern region contributes
35 per cent to sales, followed by the southern
region at 20 per cent and the western and northern
regions at 20 per cent and 15 per cent respectively.
The central region contributes five per cent. The
company is keen to further strengthen its
network across South India, having 10 stores in
Karnataka alone.
From 2014 to 2018, khadi sales grew at an annual average of over 30 per cent. Sale of khadi is estimated to touch an
all-time high of R3,200 crore this fiscal. The Khadi and Village Industries Commission’s (KVIC) supply tie-ups with firms
like Raymond, Arvind Mills and Aditya Birla Fashion, as well as aggressive marketing and growing interest of public sector
enterprises for khadi products for employees were the biggest sales drivers.
Raymond, for instance, bought as much as 7.26 lakh metres of grey khadi fabric last fiscal, while Arvind Mills
purchased around one million square metres of khadi denim. These companies source fabric from khadi institutions
to manufacture garments and sell them under their own brand names. KVIC and khadi institutions started tapping the
corporate gifting segment last year by tying up with several public sector units. These units like Indian Oil and Oil India
typically place orders for gift coupons by KVIC to be distributed among their employees, who can shop at any khadi
store within a stipulated period.
Khadi institutions have transformed themselves to cater to the changing needs of time and have improved their range
of products, with a focus on style. Aggressive marketing, too, has helped. Very soon, as many as 83,000 postmen
across Indian states will be clothed in khadi.
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I APPAREL I
May 2019