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The Indian economy is one of the fastest-growing economies in the world. India is expected to be in the top 5 global economies by 2020. A sustained real GDP growth of over 6 percent since FY 1991, has led to a fundamental transformation of the Indian economy. India has become the fastest-growing G20 economy since FY 2015, with growth rates hovering around 7 percent. India’s economy is projected to expand by 7.3 percent and 7.4 percent in FY 2019 and FY 2020, respectively, benefiting from strong private consumption.

The Indian textile and apparel industry shares 5 percent in the global T&A trade and is the second-largest manufacturer and exporter in the world after China. The T&A sector contributes 7 percent of industry output in value terms and 2 percent to the country’s GDP. The sector is one of the largest sources of employment in the country and provides direct employment to over 45 million people.

The sector stood for 12.4 percent of total exports in 2017-18, EU-28 and USA being the major T&A export destinations for the country have a total weightage of 47 percent of total T&A export. Indian domestic apparel market is estimated to be US$ 54 billion in 2018 and will grow at a CAGR of 8.1 percent in the next decade and to reach US$ 118 billion in 2028.

The Indian apparel industry, which is the second-largest contributor in the retail industry after food and grocery, is seeing some major shifts. The entry of international brands, changes in preferences from non-branded to branded, the fast-growing economy, the large young consuming population in the country has made India a highly lucrative market. India has the world’s largest youth population, which is becoming fashion conscious owing to mass media and social media penetration. This has opened unprecedented retail market opportunities.

The promising growth rate of 8.1 percent makes the Indian fashion industry prominent in the retail sector.

With a GDP growth rate of 7.2 percent, India has an edge over developed markets of the US and EU, which are growing at ~2 percent and ~2.5 percent each. The developing nations will drive future apparel consumption and India is one of the major consuming nations. Favourable trade policies, increased penetration of organised retail among other factors contribute in making the Indian fashion industry attractive for investors.

INDIAN WINTER WEAR MARKET

India is known for its diversity, in terms of both culture and weather. Winter in India lasts for different durationin different regions with North India witnessing winters for three to four months. The Indian winter wear market was estimated to be US$ 2.7 billion in 2018 and is expected to grow at a rate of 4 percent by 2028 and become a US$ 3.95 billion market. The Indian winter wear market shares 5 percent of the total Indian apparel market. The market includes winter wear in four main categories—men’s wear, women’s wear, boys and girls.

The men’s wear segment dominates the Indian winter wear market and contributed 50 percent to the total sector in 2018. The segment is expected to be a US$ 1.85 billion sector by 2028. The women’s category stands for 20 percent of the total winter wear segment and is expected to grow at a rate of 3.5 percent by 2028. Women’s wear is the second biggest segment in the Indian winter wear market.

Kid’s winter wear segment was estimated at US$ 0.79 billion in 2018. Boy’s and girl’s wear contributes to a total of 29 percent to the Indian winter wear market and is expected to be 33 percent of the total Indian winter wear market by 2028. In winter wear segment, kids wear category is expected to grow at a higher pace as compared to women’s and men’s category.

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Jheal Shah, Founder and CEO, The Stylease, says that the Indian market is just getting started with fashion rental. She says the cause of slow pick-up of the business is people’s pre-conceived notions about rental clothes. She feels in India people look down upon those who are unable to afford high-end designer clothes.

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“India, today, is at par with wider global fitness trends. The booming economy and changing lifestyle preferences have compelled Indian consumers to be more health conscious and add new health and wellness routines to their hectic lifestyles. This trend has largely benefited the sportswear industry in India, which now is among the top in demand fashion segments of the country,” says Rahul Vira, CEO, Skechers South Asia Pvt. Ltd.

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Trousers is the second largest category in the menswear and accounts for 23 percent of the total market. Technopak’s latest data reveals that men’s trousers market is expected to grow at a CAGR of 5.6 percent to reach Rs 58,602 crore by 2028 from its current size of Rs 33,984 crore.

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As a part of the build up to the launch, the brand has executed UNIQLO cube like installations across various touch points in Delhi. These installations are made of brand’s iconic red cube which have been integrated with Indian elements such as cricket balls, kites and red bangles.

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Having said this, online is the driver medium for this category as the space is niche and is primarily driven through social media channels. For us, over 70 percent of our revenue comes from online sales. We currently retail in over 15 countries, and our organic fair trade products are more accepted and loved globally than locally. This has all happened organically and not through a lot of effort from our end.

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