your password has been reset successfully, Please login again.

Apparel Retailing sector of India

Due to tremendous change in the lifestyle of Indian customers the apparel retail is revolutionising at a fast pace. This article highlights the current trends and challenges in segment.
BY Shrishti Rai
Feature Writer, BusinessEx
Sep 01,2017

Apparel Retailing

Retailing is bringing finished products to the end user. It is set of activities, which aims at bringing goods to the notice of the customers through marketing processes and then finally selling them in stores. In modern retail, capturing data and its processing is an important activity that also aids inventory management. The goods sold by the retailers are usually for the personal use of buys and not for business related use. Due to tremendous change in the lifestyle of Indian customers, there has a buzz in clothing retail. Especially in the metro cities, big foreign apparel brands are setting up stores and are receiving great response from fashion enthusiasts. Recently Abercrombie Fitch decided to set up its first store in India.

Indian apparel fashion industry is expected to grow at a CAGR of 12% over the next five years to become INR 3,94,000 crore from the current estimation of INR 2,21,000 crore, according to a survey by A T Kearney. A Technavio's report forecasted that online fashion retail sector in the country is set to grow at a CAGR 64.87 % in terms of revenue over 2014-2019.

The brand clothing segments in countrys market together with stiff competition is creating a big market with a mix of both imported product and those produced locally in a huge country like India. The organized retail players are structure a new era of the Indian market, with the help of various factors accelerating the same, like rising income level and disposable income among Indians due to intra sector growth such as IT BPO. In Indian retail sector, marketers are moving towards new setups such namely departmental stores, hypermarkets, supermarkets, speciality stores and shops in malls. The branded segment in apparels is showcasing extraordinary growth with mens branded apparel market is growing at 21.8% and branded women apparel segments represent 35% of the overall apparel market that is growing at a whopping 23% every year.

Trends in Apparel Retailing

Reign of foreign players- Big brands namely HM, Forever 21, Zara are becoming increasingly popular amongst the fashion-oriented people. More and more stores are opening up even in tier 2 3 cities, given the demand amidst the customers.

Incorporation of technology- Digital payment options at retail stores e.g. POS machines, E-wallets. Retailers to forecast demands and other desirable information are using big data. Happiness meters at stores to measure customers satisfaction meters and records suggestions towards measurements.

The rise of the organised sector- There has a paradigm shift in the industry towards being organised. People are demanding branded and quality products and hence are rising which provides standardised products. Thus, there is an intense rivalry in the sector.

Customer Relationship Management- Retail is not anymore about the products but is about overall customer experience and hence there is a need of CRM. CRM refers to different practices, strategies and technologies, which can be used to analyze customer interactions and data to derive inferences that will help improve overall customer experience and throughout the customer lifecycle, The aim of this activity is to enable desirable customer interaction which in turn will lead customer retention and growth.

Multi brand showrooms- Many showrooms are present in the market, which are providing multi label options under one roof e.g. Shoppers Stop, Pantaloons. Buyers prefer such stores because they can get their hands on a variety of products under one roof.

The movement towards online retail- With the arrival of the era of e-commerce in India finally, retail has been disrupted. People now can order their clothes and everything else that they need from anywhere and get them delivered to places of their convenience.

Challenges in Apparel Retail

  • Too many players- It has been discussed that the industry has organised, unorganised and foreign players present in the market leading to intense competition in the sector. The buyers have many choices before they finally make a purchase from one.
  • Brand Sensitivity amongst customer- People can stick to a brand and have notions about the best fit and quality. It can be really hard to impossible making these people shift from their favourite brands.
  • Sustainable production- Consumers in todays world are highly sensitive towards the environmental and social initiatives of the company. They would like to know how sustainable and eco-friendly is your manufacturing process and it matters while they make a decision about the brand to pick.
  • Heterogeneity in the market In the US there are only four stores available for every 100 persons but in our country, there are almost 15 stores per 1000. This is due to the varied taste of Indian women in dressing style. Urban indian women may be dressed in dresses, jeans, skirts along with Indian options like sarees, suits, kurtas. In addition, more and more stores are needed to offer different types of garments.
Please add your Comment
SIMILAR Articles
December 08, 2017
The healthcare industry is growing at a rapid pace and offering a lot of small scale business opport ...More
By Akshay Arora
December 08, 2017
If a person is planning to be an entrepreneur then it is better to make an informative decision as w ...More
By Akshay Arora
December 07, 2017
Business consultation platforms are more than just guidance. These platform have become need of the ...More
By Akshay Arora
December 07, 2017
If you are a startup and still not made much impact on your growth rate then you can try these solut ...More
By Akshay Arora
December 06, 2017
It is hard to calculate the business value at each stage as the methods are different for all, so le ...More
By Akshay Arora
December 06, 2017
Corporate investment firm does not only invest money in a business but they invests a lot more which ...More
By Akshay Arora
December 05, 2017
India is a hub for education business but the era of technology and education has just begun. The ed ...More
By Aditya Malik
December 05, 2017
Finding the right investor is not a child's play, you need to be prepared and follow a procedure for ...More
By Akshay Arora
December 04, 2017
Everyone needs a mentor at different phases in business life cycle but their importance is not under ...More
By Akshay Arora
December 04, 2017
In order to expand a business finance is mandatory but raising finance for the business depends on e ...More
By Akshay Arora
December 01, 2017
Selling a business is not complex anymore but deciding when to sell is the problem. Let's see when y ...More
By Akshay Arora
November 30, 2017
Business brokers have myriad ways they help a business people to make a transaction. How they help ...More
By Akshay Arora