Apparel Retail Industry in India

The apparel retail industry in Indiahas undergone a huge change. Rapid growth and urbanization have led to a new class of consumers with more money to spend and a growing passion for fashion. In India’s high-growth, fast-changing retail market, there are new growth opportunities for foreign and domestic players.

Retail Industry Trends show that apparel sales are about to reach an estimated twenty five billion this year, having grown 10 percent over the past 5 years.This growth rate is expected to continue. In India, apparel is the second largest retail category behind footwear and groceries. It represents 10 percent of the total market.

As the lifestyles of urban consumers have evolved, their clothing needs have broadened for varied occasions. For men, clothing choices came in three basic categories: home-wear, work clothes and special occasion wear. With more socializing opportunities, men are buying more sophisticated combinations of outfits: party wear, sportswearand clothes for hanging out at the mall. Indians are more inclined to buy apparel for a specific purpose. Family celebrations and weddings continue to eat up an enormous share of Indian consumer’s clothing budgets. 

Retail Management in India

Historically, the men’s apparel market in India has been significantly larger than the women’s apparel market. Now, women are more willing to dress differently when they venture beyond the house to shop or visit a school or office. 

Indian consumers are embracing the idea of fashion as a means of self-expression and not as a functional purchase. Television, movies, advertising and the Internet providethe Indian consumer with new ideas about style. Traditional clothing remains central to the way consumers dress, and the quality and craftsmanship of classic Indian clothing have drawn the world’s leading designers, style magazines, and fashion blogs.

As they prosper, Indian consumers will naturally continue to spend more of what they earn on what they wear. Consumers worldwide typically spend an average of 5-6 percent of total income on apparel, but the figure is significantly higher in emerging markets.

Today, apparel is one of India’s most attractive business segments due to its high margins. Apparel Retail Industry in India relies heavily on sales promotions and special events. Apparel shoppers spend more than othersdriven not only by income, but also by lifestyle. Consumers in the north tend to spend more than in other regions due to cooler climates and different approaches to social occasions.

FDD aims in promoting excellence in Retailing as students learn various aspects on Retail Management in India.