Apparel Online India Magazine March 1st Issue 2019

INDIA’S PREMIER SOURCING SHOW Exhibit 2: India retail spend of US $ 710 billion in FY 2017 across different city & region types 658 439 111 36 66 122 40 74 36 66 111 105 36 66 Top 2 cities Next 6 Next 16 Next 50 2012 2017 251 Rest of India Exhibit 4: Share of organized retail in various retail categories FY 2018 (E) Share of Retail Retail Size 66.6% 527.5 3.6% 19.0 Big Bazaar, DMart, Reliance Fresh, Spencer’s Apparel & Accessories 7.9% 62.6 27.1% 17.0 FBB, Reliance Trends, Pantaloons, Shoppers Stop, Lifestyle, Westside, FabIndia, Arvind, Raymond, TCNS, Biba Consumer Electronics 6.1 % 48.3 27.7% 13.4 Vijay Sales, Croma, Reliance Digital Jewellery 7.8% 61.8 32.1% 19.8 Tanishq, Kalyan, Malabar Footwear 1.2% 9.5 28.1% 2.7 Bata India, Metro Shoes, Khadims Pharmacy & Wellness 2.9% 23.0 10.8% 2.5 Apollo, MedPlus Home & Living 4.3% 34.1 10.8% 3.7 Home Centre, Home Stop Others 3.2% 25.3 12.5% 3.2 Total 100% 792 10.3% 81.2 2021 Top 2 Cities: Delhi and Mumbai; Next 6 Cities: Bangalore, Chennai, Hyderabad, Ahmedabad, Pune, Kolkata Next 16 Cities: Surat, Jaipur, Lucknow, Nagpur, Patna, Indore, Coimbatore, Vadodara, Ludhiana, Bhopal. Kochi, Vishakapatnam, Madurai, Nashik, Jamshedpur, Guwahati Next 50 Cities (indicative): Mostly Tier-3 cities such as Kanpur, Kozhikode, Thrissur, Agra, Trivandrum, Varanasi, Rajkot, Meerut, Vijayawada, Jamshedpur, Amritsar, Jodhpur, Ranchi} Source: Technopak Analysis; 1 US $ = Rs. 65 Section A (Top 2 cities) and Section B (Next 6 cities) are driving aspirational consumption in India and high concentration of these socio-economic customer segments has resulted in emergence of concentrated clusters of consumption. ORGANISED RETAIL AND CATEGORY CONSUMPTION While organised retail, primarily bricks-and-mortar, has been in India for 2 decades now, its contribution to total retail is low that is at 10 per cent (US $ 81 billion) in 2018. However, in the past 5 years, the organised retail has grown at a CAGR of 20 per cent to reach US $ 81 billion in 2018 from US $ 33 billion in 2013. The same is expected to grow at a CAGR of 21 per cent to reach US $ 137 billion by 2021. This growth is driven by consolidation and scale building in general merchandise retail and organic growth of organised retail in categories like apparel etc. The organised retail also witnessed entry of various international players in the market in the last 25 years but the journey has faced its share of policy muddles, course correction and restricting. However, with entry of e-tailing, evolving business models, multi-channel play, improving supply chain and favourable policy changes, the future of retail in India is bright and more so for aspiration retailing like apparel. Exhibit 3: Overall retail market (US $ billion) Food and Grocery (US $ billion) % of Organised Retail Organised Market Size (US $ billion) Key Retailers Accessories include Bags, Belts, and Wallets; Others include Books & Stationery, Toys, Eyewear, Sports Goods, Alcoholic Beverages & Tobacco etc. Source: Technopak analysis; 1 US $ = Rs. 65 1070 792 447 Exhibit 5: Organised penetration across key categories 137 81 33 2013 2018 Overall Retail 2021 (P) Organised B&M Retail Categories 2013 2018 2021 (P) Total Organised Retail (US $ billion) 33.0 81 137 Food and Grocery 1.8% 3.6% 5.0% Apparel & Accessories 20.8% 27.1% 35.1% Consumer Electronics 23.7% 27.7% 31.6% Jewellery 26.3% 32.1% 36.3% Others 10.5% 12.5% 12.9% Source: Technopak Analysis; 1 US $ = Rs. 65 ORGANISED RETAIL – INTER-CATEGORY PENETRATION Apparel, jewellery and consumer durables and information technology (CDIT) are amongst the categories with highest organised penetration at ~27 per cent, ~32 per cent and ~28 per cent respectively, signifying the underlying strong sustainable factors of growth in these categories. APPAREL & ACCESSORIES RETAILING The Apparel and Accessories segment size in FY 2018 is estimated to be US $ 63 billion and is expected to grow at a CAGR of 10 per cent to reach US $ 83 billion by FY 2021. Factors like higher brand consciousness, increasing digitisation, greater purchasing power and increasing urbanisation will contribute to the growth of this segment. *Accessories include Bags, Belts, and Wallets; Others include Books & Stationery, Toys, Eyewear, Sports Goods, Alcoholic Beverages & Tobacco etc Source: Technopak Analysis; 1 US $ = Rs. 65 www.apparelresources.com | MARCH 1-15, 2019 | Apparel Online India 33

Apparel Online India Magazine March 1st Issue 2019 | Page 33