Apparel September 2019 Apparel September 2019 issue | Page 78

INDUSTRY INSIGHTS
72
I APPAREL I
machines, and long billing queues were a few of
the many reasons that took the sheen away from
the offline retail sector. H&M presently operates 43 stores in the
country and its sales in India recently rose by
39 per cent, going over R1,100 crore in its
annual sales. This helped it in becoming one of
the fastest growing lifestyle brands within the
domestic market. In a similar vein, the Japanese
fast fashion retailer Uniqlo is all set to open three
stores in India by October this year. The brand is
betting big on India, which is a part of its global
strategy as it plans to gain ground against
rival brands.
A spokesperson from Uniqlo India had
mentioned during an earlier press conference that
given the size and fast growth of the Indian retail
market, the launch will, for the first time, involve
three separate stores that will offer LifeWear—
stylish, comfortable clothing for everyday wear—
to as many people as possible. This is indeed a
big move on its part, illustrating the vision that an
increasing number of international brands have
for India and its retail space.
THE RETAIL CART
At present, India’s retail sector contributes
approximately 10 per cent to its gross domestic
product (GDP). This is surely set to experience
an upsurge, thanks to the presence of ‘value
retailers’ and brands and the forward-looking
budget that frees up funds for the middle class
within the country. From Zara and H&M to
Benetton, brands are queuing up to leverage this
extremely promising sector. THE GROWTH CURRENT
According to a Credit Analysis & Research Ltd
(CARE) rating, Indians spent R5.4 lakh crore on
buying clothes in 2018, a sizeable jump from the
amount they spent in 2010, i.e. R1.92 lakh crore.
This is a notable spike; however these may not
be happy figures for all brands. Zara, for instance,
has registered a drop of 13.4 per cent in its net
profit as of March 2019. Owing to the steep
rise in real estate prices, Zara has kept store
September 2019