Apparel Online India Magazine August 2nd Issue 2018 | Page 18

COVER STORY APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ Whitepaper on Indian Retail Market... The Destination Next for Garment Manufacturers I The Indian retail market is the cynosure of all eyes, be it international brands and retailers or manufacturers looking for new opportunities. And why not! The apparel retail market was estimated to be worth around US $ 85 billion in FY 2017 and is projected to grow at 9.7% year-on-year to reach US $ 115 billion in 2026. Interestingly, the share of spending on clothing and footwear in total consumer spending at 6.7% is higher than what is seen in the US (3%) and the UK (5.7%). Also, the year-on-year expenditure growth in India at 12% is more than double the anticipated global rate of 5%. This is not surprising, considering the fact that India has a huge population of 1.3 billion people with a fast-growing middle class accompanied by rising disposable income and willingness to spend rather than save. ndian retailers are on a roll and leaving China behind, India is now the most dynamic market with a rapidly expanding economy and a consumption boom, says 2017 Global Retail Development Index report by AT Kearney. As per recent analysis, the market for apparel and lifestyle products in India is currently estimated at US $ 85 billion and is expected to reach US $ 160 billion by 2025. India has traditionally been the land of small unorganised retail with mom and pop stores, situated around practically every residential area. Earlier those who wanted ‘branded’ garments shopped internationally, while the upper middle-class went to tailors for customised stitching. Hence the market was more for textiles and not so much for readymade garments… the situation now is far different, with a rising number of people looking at readymade garments as against buying fabric for ‘stitched- garments’. This exciting retail space is attracting many international players besides home-grown brands and retailers. The FDI 18 Apparel Online India | AUGUST 16-31, 2018 | www.apparelresources.com norms relaxation for single brand retail in the country, including relaxation of mandatory local sourcing requirement of 30 per cent, will also be a major boost for fast-fashion majors to set up shops in India. Further, India’s improved performance on the World Bank’s ‘Ease of Doing Business’ ranking – moving up 30 places to rank 100th out of 190 countries – will further boost foreign investment in the country. International retailers/ brands in the Indian retail landscape… Many international brands have already entered the market and are enjoying various degrees of success. Global brands like Zara, H&M, Mango, Guess, United Colors of Benetton, GAP, Forever21, besides Levi’s, Adidas and Nike have made deep inroads in the Indian apparel market, as Indian consumers increasingly prefer these brands for their perceived quality, fit and style. In fact, Adidas AG has become the first foreign sports