Apparel Online Bangladesh Magazine October Issue 2018 | Page 17

COVER STORY
Fashions Ltd. operates popular
brand stores, department stores and
multi-brand outlets including Central,
Brand Factory and Planet Sports.
FLF also owns and retails over 25
fashion brands. Its fashion brands
include Cover Story, aLL, UMM
(Underground Music Movement),
Lee Cooper, Bare Casuals, Scullers,
Indigo Nation, Spalding, RIG,
Converse, Lombard, Daniel Hechter,
Clarks, Celio, Mother Earth and many
more. UK clothing and hardware
retailer Laura Ashley has partnered
with Future Group to make and sell
merchandise as well as wholesale
distribution in India.
Future Group’s value fashion format
FBB plans to invest Rs. 350 crore
(US $ 48 million) to open about 140
exclusive outlets as it aims to double
turnover in the next two years. Out
of these planned 140 new exclusive
stores, 40 will be opened in the current
fiscal year. At present, FBB retails its
products through 385 points of sales
in Big Bazaar stores, including 62
exclusive outlets.
Aditya Birla Retail Ltd. is the retail
arm of Aditya Birla Group, a US $ 41
billion corporation. Fashion brands of
Aditya Birla Fashion and Retail Ltd.
(ABFRL) include Louise Philippe, Van
Heusen, Allen Solly and Peter England.
It also includes India’s first fast-
fashion youth brand, People; India’s
largest fully integrated fashion multi-
brand outlet chain, Planet Fashion;
India’s largest premium international
brand retailer Aditya Birla Fashion
which has also announced that it will
acquire exclusive online and offline
rights of Forever21, an American fast-
fashion brand, for the Indian market.
Raymond Group is one of the oldest
retail industry in India and was
established in 1925. Raymond
Ltd. Group is well reputed for its
eponymous brand of clothing and
superior quality fabrics. The parent
company is the world’s largest
manufacturer of integrated fabrics.
Raymond Group owns over 1,100
showrooms in nearly 400 cities of
India under this flagship brand.
Additionally, the company operates
showrooms under the popular Park
Avenue brand of clothing and men’s
requirements.
e-commerce market...
India is expected to become the
world’s fastest growing e-commerce
market, driven by robust investment
in the sector and rapid increase in
the number of internet users. Apparel
sales has been witnessing a great
jump in the last two years with lot of
mergers and acquisitions happening
in the industry. Bangalore-based
FA C T S
l
Change
in income
structure, rise of middle
class with increasing
disposable income,
entry of foreign
retailers, increase
in both per capita
consumption and
average spends on
apparel are all set to
fuel the Indian retail
scenario.
l
Steady
economic
growth, with GDP
growth rate of 7 per
cent, which is more
than that of the
developed markets
of the US, Europe
and Japan (which are
expected to grow
at a rate of 2-3 per
cent only) adds to the
growth of the Indian
retail market.
l
Many
international
brands have already
entered the market
and are enjoying great
success.
l
Brands
like Zara, H&M,
Mango, Guess, United
Colors of Benetton,
Gap, Forever21, Levi’s,
adidas and Nike have
made deep inroads
into the Indian apparel
market.
l
Uniqlo
has announced
its first store to be
opened in Delhi in
2019.
l
H&M
is planning to set
up its first warehousing
hub in India, as they
expect to open another
50 stores in next 2
years.
l
As
per retail experts,
in the next 3 years,
over 50 more fashion
retailers will be in India.
Myntra is expected to touch an
annual turnover of US $ 1.6 billion in
2017-18 surpassing all major bricks
and mortar retailers. It controls about
60 per cent of online apparel retail
market along with its subsidiary
Jabong. Amazon is making quick
investments to capture a larger pie of
this market followed by Reliance Ajio
which has been created last year to
dive into this fast-growing segment
of online apparel retail. Now with
Walmart taking over Flipkart for
US $ 16 billion, the market will only
get bigger.
Shopclues has raised US $ 150 million
from Singapore Government’s GIC
and its existing investors Tiger Global
and Nexus Venture Partners, at a
valuation of US $ 1.1 billion, thereby
becoming the latest among several
e-commerce companies from India
reaching a billion-dollar valuation.
Cash & Carry Model also on
the upswing…
The cash & carry format has a critical
role in the multi-layered distribution
system predominant in India. It helps
manufacturers supplement their
own direct reach for better access
in traditional retail, without relying
on the unorganised and fragmented
indirect distribution system. The
overall organised wholesale cash
& carry trade consists of four large
companies – Metro Cash & Carry
India Pvt. Ltd, Walmart India Pvt.
Ltd, Reliance Cash & Carry (a unit of
Reliance Industries Ltd.) and Booker
Wholesale (a subsidiary of UK’s
Booker Group) – which together have
92 stores. Thailand’s Siam Makro is
the latest foreign retailer to announce
a 100 per cent cash & carry operation
in India.
Cash & carry operators buy
goods in large quantities from the
manufacturer or buying group and
then sell these goods to their retail
customers. Apparel is also sold in the
cash & carry format and is considered
among the fastest growing segments.
The Rs. 6,800 crore (US $ 934 million)
cash & carry market has been growing
at 13 per cent annually, faster than
modern trade, albeit on a lower base,
Nielsen, the global data, information
and measurement company said in
an April 2016 report. No wonder that
Walmart India plans to add 50 more
cash-and-carry stores in India over
the next four to five years.
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