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The hot categories
Tier-1 and Tier-2 cities to boost growth of trousers
Growing annually at around 30-35 per cent and expected to maintain a growth rate of CAGR 8 per cent from here on till 2023, trouser is considered one of the fastest growing segments, which has picked up pace since the advent of polyester / viscose blends. Estimated to be US $ 3.40 billion in 2013, the trouser market in India is expected to touch US $ 7.4 billion in 2023.
Growth in income levels, changes in lifestyle and the entry of foreign brands have further added to the growth quotient, leading around 60 regional and national trouser brands to vie for the numero uno position, thereby opening up wide options for consumers to choose from. The potential for growth is further propelled by increased consumption of trousers in rural India that has encouraged many retailers to focus attention on the countryside.
The scene is no different in the women’ s section with many brands and retailers offering discount schemes and loyalty programmes to tempt women into experimenting with trousers. At present, a bulk of the women’ s trouser market is concentrated in the metros and larger cities. However, in the years to come, the category is expected to register deeper penetration into Tier-1 and Tier-2 cities as well.
Denim: A growth segment within trousers
Currently at US $ 45.71 billion, the youth-driven Indian denim market is expected to grow at Compound Annual Growth Rate( CAGR) of 9.7 per cent to touch US $ 115.14 billion by 2026 and the key factors behind this phenomenal growth are the increasing penetration of brands into
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Tier-1 and Tier-3 cities and the rising aspirations of consumers from smaller cities to follow the latest trends.
Of the total market, men’ s denim segment accounts for 84 per cent of the market while the women’ s denim segment and kids’ denim segment comprise 10 per cent and 6 per cent, respectively. In the women’ s segment, expected to witness the fastest growth( at CAGR 17.5 per cent), denim trousers is still the most popular while athleisure is also catching up fast. The key areas of fashion and fit element, a must in the women’ s category, are now being taken care of through the introduction of flexible / stretch fabrics for different applications.
Further, the denim market in India is also segmented on its‘ premiumness’. The super-premium, premium, and mid-market segments together make up only 8 per cent of the total Indian denim market.
The future value growth within the denim category, as per experts, shall be because of the increased demand for enhanced product attributes: fashion, quotient, stretch and lightweight fabric, varying colours, styling and detailing. This trend is emerging across both men’ s and women’ s segments.
Off the shelf shirts poised for growth
Shirts account for 12 per cent of the total market in which men’ s shirts hold a percentage share of 94 per cent while women’ s shirts make up for the remaining 6 per cent. In 2017, the domestic shirt market was estimated at US $ 5.83 billion, which is expected to touch US $ 10.1 billion by 2027 growing at a CAGR of 6 per cent.
However, in terms of growth, women’ s segment is expected to
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Currently at US $ 45.71 billion, the youthdriven Indian denim market is expected to grow at Compound Annual Growth Rate( CAGR) of 9.7 per cent to touch US $ 115.14 billion by 2026 and the key factors behind this phenomenal growth are the increasing penetration of brands into Tier-1 and Tier-3 cities and the rising aspirations of consumers from smaller cities to follow the latest trends. |
grow at a CAGR of 11 per cent over the next decade while men’ s is expected to grow at a CAGR of 5 per cent. Despite the number of rapidly flourishing brands, the penetration of the private and international labels are yet on the lower side due to higher price points. Nevertheless, to make their presence felt, private labels and e-tailers have reportedly modified their pricing strategy to offer shirts in low to mid-price range while the major organised players are trying to capture the market with‘ efficient sourcing, low overheads’ and, above all, higher volumes, and Bangladesh definitely stands far ahead of the competitors in all these aspects when it comes to sourcing.
Everyday casuals propel T-shirts market
Lately, Indian fashion retail is witnessing a huge demand for knit products. The knitwear market is expected to grow at a promising rate of 9 per cent over the next decade to reach US $ 23.56 billion from the current market size of US $ 10.04 billion.
Category-wise, men’ s section still holds the sway in knitwear market accounting for 40 per cent followed by womenswear( with a market share of 34 per cent) and boys’ and girls’ sections claiming 18 and 8 per cent, respectively.
According to the latest reports from India’ s leading management consulting firm Technopak Advisors, the size of the T-shirts market in India is estimated to grow at a promising CAGR of 10 per cent over the next decade. In this product category, menswear holds a key market share, followed by womenswear and kidswear. However, the women’ s segment is registering a faster growth and experts attribute this to the
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