18 December 2023, Mumbai

Expansion Plans

ICRA reports, “India's top six cities are set for a mall space surge! Currently, at 105 million square feet, it's expected to reach 116–118 million by March 2025. 

Delhi NCR leads the charge with 30% of new space, followed by Bengaluru (20%), Mumbai (17%), Pune (14%), Hyderabad (13%), and Chennai (6%)”.

Rental Revenue on the Rise

Expect mall operators to enjoy increasing rental income, projected to grow 9–10% in FY2024 and 8–9% in FY2025. 

The key drivers are high occupancy rates, rising trading values, and rent escalations.

Footfall and Spending Uptickicra

Mall traffic and spending are rebounding strongly. ICRA reports an 8.4% YoY growth in rental income in H1 FY2024, indicating a robust recovery. Trading values are forecast to surge 14–15% in FY2024 and 10-12% in FY2025, thanks to premiumization and robust urban consumption.

Thriving Segments

Certain segments, like jewelry, electronics, premium apparel, beauty products, and entertainment, are witnessing higher consumption growth. This trend is expected to continue due to strong consumer demand.

Consumer Confidence Boost

India's private final consumption expenditure is rising, fueled by higher household spending. Optimistic consumer sentiment suggests this trend will persist, supporting mall retail sales.

Vacancy Puzzle Despite High Absorption

Despite a strong net absorption of 3.2 million square feet in H1 FY2024, vacancy levels increased slightly. This could be due to the timing of new mall openings or changes in tenant preferences.

This rewritten version summarizes the key takeaways of the original text and adds subtitles for improved readability and understanding.

5 Key Insights:

1. Mall Boom: Square footage soars 15 million by 2025, Delhi leads expansion.
2. Rents Rising: Operators see 9-10% growth, fueled by high occupancy & spending.
3. Shoppers Return: Footfall and spending rebound, premium segments thrive.
4. Confidence Boost: Rising household spending supports mall retail sales.
5. Vacancy Puzzle: Slight vacancy increase despite strong absorption.

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15 December 2023, Mumbai

Reebok and Futureverse

Forget just wearing kicks; get ready to wear the future. Iconic sportswear brand Reebok has partnered with AI and metaverse pioneers Futureverse to unleash a digital fashion revolution.

Video Insights

Think beyond sneakers and tees—we're talking cutting-edge experiences powered by AI, web3, blockchain gaming, and metaverse tech. Brace yourself for a whole new way to interact with Reebok.

Leaping into the Metaverse

2024 marks the arrival of Reebok Impact, a mind-bending digital shoe experience that will immerse everyone in the world of AI and virtual wearables.

This isn't just a sneaker drop; it's Reebok stepping off the athletic field and sprinting toward reshaping digital fashion.

But this isn't just about fancy shoes. This partnership is about changing how we see and engage with digital fashion. AI, Web3, gaming, and metaverse technologies are the game changers, blurring the lines between physical and virtual. It's time to make your online presence as powerful as your real-life self.

Remember Reebok's "life is not a spectator sport" mantra? Futureverse's play-to-learn approach takes it to the next level. Get ready to be inspired to live life to the fullest, both online and offline.

The launch of Reebok Impact is just the first step in this groundbreaking partnership.

More features, integrations, and experiences are on the horizon, ready to push the boundaries of innovation.

Short Message

This isn't a one-off collab; it's the dawn of a new era in digital fashion, and Reebok and Futureverse are leading the charge.

So, are you ready to step into the future?

Lace-up your digital sneakers and get ready to experience Reebok like never before.

5 Key Insights :

1. Fashion Forward: Reebok & Futureverse team up for AI-powered digital fashion revolution.
2. Metaverse Shoes: "Reebok Impact" drops in 2024, blurring lines between physical & virtual wearables.
3. Beyond Kicks: AI, Web3, gaming, and metaverse tech redefine how we interact with fashion.
4. Live Life Digitally: Play-to-learn approach empowers you to be your best online and offline.
5. Future Unlaced: This partnership is just the beginning, pushing the boundaries of innovation.

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11 December 2023, Mumbai

WHY India

Indian retailers are doubling on in-store experiences to draw customers in the post-pandemic era. 

Despite high rental costs, they are expanding their retail spaces by 30-50%, betting on unique and immersive experiences to stand out from the crowd. 

Video Insights

The trick of the trade 

It's not just about attracting foot traffic, but also about converting visitors into loyal buyers. 

Retailers understand that in a $4 trillion economy, success hinges on experiences, not just products.

Data drives the trend:

• The top 7 Indian cities saw a 3.16 million sq. ft. gross leasing in retail in the first half of 2023, demonstrating consumer confidence and retailer commitment to experiential design.
• From January to September 2023, retail areas across major cities grew by 4.73 million sq. ft., reflecting the industry's agility in adapting to changing consumer preferences.

Beyond merchandise, experiences take center stage:

Pankaj Renjhen, COO and Joint-MD of Anarock Property Consultants emphasizes that physical stores are now about engaging the customer, not just displaying products. 

Retailers are expanding existing stores and opening new ones, capitalizing on a booming organized retail market. 

Data -points

CBRE India reports a significant 46% year-on-year growth in retail sector leasing during the January–September period of 2023.

In essence

Indian retailers are embracing a new paradigm, prioritizing experiences over mere merchandise to win the hearts and wallets of today's consumers.

| Key Insights |

| Retailers double store size |

| Unique experiences win customers |

| $4T economy rewards experiences |

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16 December 2023, Mumbai

Prepare for a vibrant sartorial saga! Ethnic wear, a kaleidoscope of cultural stories woven into garments, is set to take the fashion world by storm. 

Allied Market Research predicts a dazzling 7.2% annual ascent from 2022 to 2031, culminating in a majestic $177.2 billion by 2031.

Video Insights

India's Enchanting Canvas Leads the Charge:

Indian ethnic wear, with its mesmerizing medley of fabrics, motifs, and traditions, has captivated not only the Indian diaspora but also fashion enthusiasts across the globe, from Singapore to Australia and Cambodia.

This cross-cultural allure is fueled by two potent forces:

• Diaspora's Pride: Indian communities proudly flaunt their cultural heritage, donning stunning ensembles that resonate with international audiences.
• Bollywood's Dazzling Spotlight: From the elegant drape of sarees to the opulent creations that grace the silver screen, Bollywood has ignited a global fascination with Indian ethnic wear.

Beyond Borders: Globalization Stitches Cultures Together

Social media, effortless travel, and the fashion industry hungry for novelty have paved the way for a global celebration of diverse cultures, with ethnic wear as its vibrant ambassador. It's more than clothing; it's a dialogue, a language of tradition that transcends borders.

Fusion Finesse: Adaptability Breeds Inclusivity

Indian ethnic wear's strength lies not just in its diversity but also in its adaptability. Rich fabrics, intricate patterns, and sustainable techniques from various regions of India inspire "Fusion Finesse" styles that appeal to a wider audience. Global festivals like Navratri and Diwali showcase this charm, further amplifying its reach.

Brand Building: Navigating the Global Fashion Safari

This surge presents exciting opportunities for ethnic wear brands, but also challenges. To navigate the global fashion safari, brands must:

• Craft a Strategic Vision: A clear roadmap for international expansion.
• Embrace Local Palates: Adapt designs and marketing to resonate with local preferences.
• Build a Robust Brand Identity: Stand out from the crowd with a strong presence.
• Ensure Efficient Distribution: Reach global customers seamlessly.
• Tell the Brand Story: Effectively communicate your unique offerings.
• Embrace Customer Feedback: Continuously adapt to customer preferences.
• Forge Strategic Partnerships: Collaborate with local players for credibility.

Corporate Conundrum: Breaking the Office Barrier

While vibrant colors and intricate patterns are a street-style celebration, they might face hurdles in corporate settings, where subdued attire often reigns. 

However, exceptions exist in creative and digital domains, offering potential for future expansion.

E-commerce Revolution: Walls Crumble, Brands Rise

The rise of e-commerce has been a game-changer. Platforms like KBV report a surging trend in ethnic wear, driven by:

• Emerging Designers: Infusion of contemporary flair into ethnic styles by a new wave of fashionistas.
• Millennial Magic: A generation embracing individuality and cultural expression through fashion.

Social media fuels this fire, connecting brands directly with global audiences, breaking down traditional walls, and paving the way for a future where ethnic wear is not just for special occasions but a vibrant and versatile staple of everyday life.

Get swept away by the ethnic wear wave! This colorful tapestry of tradition and innovation is poised to redefine the global fashion landscape. So, embrace the vibrant hues and intricate patterns, and celebrate the beauty of diverse cultures, one garment at a time!

5 Key Insights :

1. Cultural Couture Soars: Ethnic wear climbs 7.2% yearly, reaching $177 billion by 2031.

2. India's Dazzling Threads: Bollywood and diaspora ignite global love for Indian styles.

3. Beyond Borders, Beyond Occasions: Social media stitches cultures, making ethnic wear everyday.

4. Fusion Finesse Wins Hearts: Adaptable styles bridge tradition and modern trends.

5. E-commerce Weaves Success: Emerging designers and millennials fuel online ethnic wear boom.

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15 December 2023, Mumbai

Indian cotton spinners face a tough year, with revenue potential down 13–15% and profits shrinking 250–300 basis points, according to CRISIL Ratings. 

This gloomy outlook is fueled by lower yarn demand, higher cotton prices, and depressed yarn prices.

A study of 90 spinning firms, representing 40% of the industry, revealed record-low profit margins—7-8% lower than last year. Yet, CRISIL Ratings maintains that these firms remain financially strong and stable.

The culprit? 

A narrowing gap between cotton and yarn prices. Gautam Shahi, a CRISIL director, points to a decline from Rs 100 per kg to Rs 75–80 per kg this year, primarily due to steeper yarn price falls in the first half.

Knitwear and denim manufacturers, key domestic consumers, are tightening their purse strings. This dampens yarn demand, further impacting spinners.

Adding to the woes

The South Indian Mills Association (SIMA) raises concerns about a triple whammy impacting exports:

• 11% import duty on cotton: This hampers yarn competitiveness in global markets.
• High costs of man-made fiber and filament yarns: These pose additional challenges for yarn exports.
• Soaring power costs: These erode the industry's ability to compete domestically and internationally.

Seeking relief, the spinning industry appeals for government support and policy interventions. 

Measures to address these challenges are crucial to restoring the sector's health and securing its future.

5 Key Insights :

1. Revenue Tumble: Spinners face 13-15% drop in revenue, profits down 25-30%.
2. Demand Slump: Lower yarn demand from key consumers like knitwear & denim.
3. Price Squeeze: Narrowing gap between cotton & yarn prices hurts margins.
4. Export Woes: Triple whammy of import duty, high fiber costs, and soaring power.
5. Policy Plea: Industry seeks government support for relief and future revival.

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11 December 2023, Mumbai

WHY India

Booming Growth:

• Young Power: The Economic Times forecasts that by 2028, youth will be 55% of consumers, a lucrative segment.
• Market Explosion: The clothing market is expected to reach $180 billion by 2030, growing 7% annually.
• Emerging Hub: India is not just a sourcing destination; it's a fashion enthusiast's paradise.

India's fashion arena is on fire

Video Insights

• India's fashion scene is ablaze with passion and talent.
• The flames of fashion are burning brightly in India.
• A fashion inferno is raging in the heart of India.

Challenges and Opportunities:

• Standing Out: Fierce competition from local and global players demands a unique brand identity.
• Customer Focus: Quality, improved experience, and embedded innovation are key to winning the market.
• Resilient Supply Chains: Building agile supply chains to handle disruptions like lockdowns.
• Bridging the Skills Gap: Investing in talent development to address the workforce skills gap.

  5 key insights for WHY India:

  Category	Insights
  Booming Growth	Young Power: The Economic Times forecasts
  Booming Growth	Market Explosion: $180 billion by 2030
  Booming Growth	Emerging Hub: Fashion enthusiast's paradise
  Challenges and Opportunities	Standing Out
  Challenges and Opportunities	Customer Focus
  Challenges and Opportunities	Resilient Supply Chains
  Challenges and Opportunities	Bridging the Skills Gap

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15 December 2023, Mumbai

From Pandemic Surge to $160 Billion Market: 

The Rise of Online Shopping in India

Video Insights

Key Points:

• The pandemic has propelled India's online shopping, adding $8-$12 billion annually to its e-commerce market growth (2020-2028).
• The "How India Shops Online 2023" report by Bain & Co. predicts a surge from $60 billion in 2023 to a staggering $160 billion by 2028.
• 2023 will see a 17-20% growth, slightly lower than the anticipated 25-30% due to inflationary pressures.
• Big players like Amazon, Flipkart, and Reliance Retail's Ajio are ramping up investments to capitalize on this potential.
• India's online shopper base has grown remarkably, doubling its size between 2019 and 2022 with increased spending.
• Smaller cities (Tier II & III) and low-income/middle-income groups contribute significantly to the growth.
• Driven by new shoppers and increased fashion spending, the e-commerce sector is set for further evolution.
• The booming market is expanding the seller base, with over 10 million sellers expected by 2025.

Critical Insights:

• Social-commerce platforms are gaining traction, especially reseller-led models targeting first-time online shoppers.
• Quick-commerce and hyper-value commerce models are emerging, catering to convenience and affordability.
• Mobile internet penetration and improved logistics infrastructure are fueling the growth.
• The government's focus on digital initiatives like Digital India and e-commerce policy is also playing a crucial role.

Future Outlook:

• India's e-commerce market is poised for significant expansion, driven by a growing middle class, increasing disposable income, and smartphone penetration.
• Innovation and personalization will be key for brands to succeed in this dynamic landscape.
• Sustainability and ethical practices will gain importance as consumers become more conscious.

Overall, India's e-commerce market presents a promising future, offering immense opportunities for businesses and consumers alike.

5 Key Insights :

1. Pandemic Boost: Online shopping surges, adding $8-$12 billion yearly to India's e-commerce growth (2020-2028).
2. Market Explosion: From $60 billion in 2023 to a predicted $160 billion by 2028, fueled by new shoppers and mobile adoption.
3. Tier II & Beyond: Smaller cities and lower-income groups join the online shopping wave, driving significant growth.
4. Micro Trends: Social commerce, quick-commerce, and hyper-value models cater to convenience and affordability, shaping the future.
5. Sustainable Future: Innovation, personalization, and ethical practices will be key for brands in this dynamic and promising market.

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12 December 2023, Mumbai

A wave of closures and distress engulfed the Indian textile industry, mirroring the bleak landscape of the late 1960s. 

Video Insights

Dismantled machinery finds its way to scrap yards, as witnessed by Coimbatore's foundry owner, Sivakumar. In Somanur, weaver Kandasamy reports the monthly sale of over 10 looms within his village alone.

Nuanced View

Thulasidharan, head of the Indian Cotton Federation, paints a grim picture of the predominantly MSME-driven sector. 

Factories across the textile value chain are shutting down, selling off equipment, or even resorting to land sales to merely survive. Reduced work hours impact worker wages, while the textile and apparel share of the Index of Industrial Production plummets alarmingly.

Andhra Pradesh paints a similar picture, with P. Koti Rao, leader of the A.P. Textile Mills Association, reporting the closure of 8-9 mills. 

Soaring cotton prices, rising electricity bills, and a lack of government support threaten to push more mills towards closure.

This crisis is further compounded by sluggish domestic and international demand. Domestic demand remains stagnant, textile exports decline, and apparel exports experience concerning negative growth.

Several factors contribute to the industry's woes:

Rising Raw Material Costs: Raw materials (fibre), constituting 60-70% of production costs, have witnessed a dramatic surge, eroding the industry's competitiveness. Cotton prices are particularly volatile, with a decline in domestic production and yield exacerbating the issue.

Quality Control Orders (QCO) on Man-Made Fibre (MMF): 

The implementation of QCO creates hurdles and additional costs for MMF textile producers.

Unfettered Garment Imports: unchecked garment imports further disadvantage domestic manufacturers, making it difficult to compete.

Need of hour

The Indian textile and clothing sector stands at a critical juncture. Urgent attention and targeted solutions are needed to address these multifaceted challenges and ensure the industry's future. 

The collective effort of stakeholders, including the government, is crucial to creating a supportive environment that fosters growth and allows the sector to regain its competitive edge.

5 Key Insights :

1. Looms Abandoned: Closures and despair mark the industry, mirroring the 1960s crisis.
2. MSME Meltdown: Factories shut, equipment sold, survival a struggle for small textile players.
3. Costly Cotton: Soaring prices and declining yield erode competitiveness.
4. **Unfair Competition:**Unchecked imports and QCO hurdles disadvantage domestic producers.
5. Urgent Action Needed: Collective effort crucial to revive the industry at this critical juncture.

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08 December 2023, Mumbai

Forget fleeting trends, Chinese shoppers are embracing practicality. 

A People's Daily Online article urges consumers to prioritize value over instant gratification, and the booming garment industry reflects this shift. 

Data-points

Sales soared to 725.7 billion yuan in just 9 months, with down jackets leading the charge.

Local brands like Skypeople are heating things up, offering premium jackets (2,800-7,000 yuan) packed with functional fabrics and local flair. 

While ten times pricier than average apparel, some consumers find the investment worthwhile.

State of affairs

China's vast market allows for diverse pricing, with basic jackets to luxury options coexisting. 

Take Bosideng, the down-wear kingpin. Their flagship brand thrives above 1,000 yuan, while their mid-priced Snowflying line saw sales surge a whopping 52.5%.

The message is clear

Ditch the cheap thrills and embrace quality pieces that last. 

Support local brands innovating with functionality, and be part of China's evolving clothing landscape.

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