1. Indian Fashion Market : Key Numbers & Trends
April 12, 2017
IFF, Mumbai

2. Apparel & Accessories Market in India
~11%
Source –Industry Sources, Technopak Analysis
1USD = INR 64

3. Increasing share of Modern Retail & E Commerce
US$ Billion
2016
2020 (P)
US$ 96 Bn
US$ 63 Bn
Traditional Retail
Modern Retail
E Commerce

4. Womenswear, a smaller share at 38%

5. Denim gaining share in Menswear

6. 14 Key Trends In The Indian Fashion Industry

7. 1. Specialty Retailers Will Play A Bigger Role
Till ‘80s
90s s
Future
Bollywood
Occasion Ethnic
Import
Create
Bollywood
Occasion Ethnic
Import
Weak modern retail destinations
Under penetration of brands
Business of Fashion
-Nil-
Because apparel was a need based consumption for the masses
Brands
Specialty Retailers
Sell
Specialty Retailers
Brands
Department Stores
Department Stores

8. Presence of Key International Brands in India
2. Increased Focus Of International Brands & Retailers
A significant number of international brands have forayed into India and are focusing on rapid expansion
International brands (more importantly retailers) will continue to consolidate and expand, thereby increasing share of organised apparel market
Presence of Key International Brands in India
I Initiation
II Experimentation
III Focus & Expansion

9. 3. Brand Aggregators Dot Aspirational Fashion Space
Aditya Birla Brands
Arvind Brands
Reliance Brands
Genesis Brands v
Leverage benefits across :-
Advantage of Retail Challenges
Multi- Channel Retail
Low Customer Acquisition Cost and Loyalty

10. 4. Value for Money Rules Shift from ‘value plus’ to ‘trade downs’
Look at more affordability across various income levels and different price segments
Focus on basics and ’security’

11. A woman’s wardrobe can comprise:
5. Indian Consumer Flirts With Brands & Retail Outlets
A woman’s wardrobe can comprise:
International brands
Domestic brands
Flea market
High street shops
Neighborhood boutiques

12. 5. Women Display Heterogeneous Behaviour Across Products
Indian woman’s versatile behaviour based on her varied tastes is seen across product categories ranging from food, apparel & grocery, to personal care.
Buys wide variety of brands
Buys across price points & formats

13. 6. Indians Skew Towards Having A Brand for Every Occasion
COLLEGE
AFTER COLLEGE/PARTY
OFFICE WEAR
ETHNIC WEAR

14. A Man’s Typical Wardrobe
7. Casualization Drive Fuelling Growth for Men’s Segment
Indian men’s fashion quotient is lower than those of men in western countries, however their fashion sense is now evolving. They too are becoming aspirational and adopting latest fashion trends. This has given rise to ‘Casualization’
A Man’s Typical Wardrobe
30-40 years ago..
…and now 5
The men’s casual wear segment is projected to double over the next 5 years.

15. Ethnic skirt with western top
7. Casualization Among Women Is Fuelling Fusion Wear, Which Is Growing Further As Propelled By Desire For Comfort
While percolation of ethnic wear is still the biggest differentiator between women fashion in India and elsewhere…
Daily wear
Occasion wear
Bridal wear
…The ethnic market is growing slower now, and casualization is fuelling ‘fusion wear’ of ethnic & western clothing especially in urban India.
Fusion wear could have a limited timeline interest as women’s desire to wear western wear is increasing.
Long kurti with jeans
Short kurti with jeans
Kurti with Leggings
Ethnic skirt with western top

16. 8. Fashion Influencers Are Heterogeneous (Unlike In West)
Langford Town Bangalore 20 20
Pitampura N. Delhi
Upbringing
Family Structure
Ethnic background
Festivals & Social Events

17. 9. Millennials Shall Dramatically Impact Indian Fashion
~ 50+ mn Metro Millennials / ~ 400 mn in India
Completely synced
Confident & Individualistic
Increasing comfort with Shared or ‘Gig’ economy

18. 10. Women’s Apparel Market To Be At Par With Men’s In 2024
Womenswear is predicted to attain a share of 39% of the total apparel market in 2024, which is also equivalent to the predicted market share of Menswear in 2024
Market Share of Apparel Segments
2014
2024 (P)
% CAGR
( )
9.2%
10.4%
10.7%

19. 11. Accessories will see higher growth momentum
Accessories to see the fastest growth across the entire fashion product range, both for men and women
Both revenue and margin driver
Opportunity for private labels and brand extensions

20. 12. Social Responsibility Is In Trend
“It is increasingly more expected to give back to the society and help those in need”

21. 12. Social Responsibility Examples
Nike’s Reuse-A-Shoe Scheme
Levi’s Re-commerce
Recycled Wool Coat
Carbon Neutral Bra
Sustainable Suit

22. 13. Different Business Models Are Driving E-commerce
In developing markets, low penetration of organized B&M players created a space for E-commerce led businesses that are now expanding the multi-channel play
E-commerce Led
Multi-Channel
Developed Markets
(US, West Europe, Korea, Australia, Japan)
50%
Developing Markets
(China, Brazil, India, Indonesia etc.)
90%
10%

23. Curated/ Customer focus Curated/ Customer focus
Online Fashion market is creating a buzz with the entry of large corporate and exit of players due to funding crunch
Present
Marketplace
Single Category
Multi Category
Curated/ Customer focus
Myntra
Jabong
Koovs
Freecultr
Zovi
Yepme
Limeroad
Snapdeal
Amazon
Flipkart W
Biba
Arvind
Shoppers Stop
2014
Marketplace
Single Category
Multi Category
Curated/ Customer focus
Myntra
Jabong
Koovs
Voonik
Limeroad
Snapdeal
Flipkart
Aditya Birla
Reliance
Tata
Yepme
Amazon
Acquired by Flipkart
Source: Secondary Sources, Technopak analysis

24. 14. Technology to Play a Bigger Role
Artificial Intelligence and Bots gaining momentum in consumer facing industries
IBM Watson, Amazon Alexa among others the early movers into AI
3D printing represents a new approach to manufacturing which tightly integrates design, simulation and digital fabrication to create complex & customized products
3D Printed Dress By Bradley Rothenberg, New York Fashion Week

25. Learning From Indian Fashion Market (1/2)
Speciality retailers will play an increasingly important role as compared to brands and departmental stores
Apparel market has evolved from being a ‘need-based’ to a ‘lifestyle-based’ market
Value for money rules
Consumers today display heterogonous behaviour across products
The ethnic market is growing slower, and casualization is fuelling ‘fusion wear’ of ethnic & western clothing especially in urban India
This ‘fusion wear’ is perceived as more comfortable and trendy
Millennials (18 – 35) are the most important segment of the Indian apparel (& accessories) market at this time

26. Learning From Indian Fashion Market (2/2)
In ~next 10 years, size of women’s apparel market will be at par with men’s apparel market
Accessories will witness the highest growth
Social responsibility is a new trend which appeals to consumers
Online fashion market buzzing, with old and new formats coming together
Technology will play an important role

27. Thank you