Tata Group's Zudio, the value retail fast fashion chain, has inaugurated its inaugural Palanpur store in Gujarat's S9 Imperial complex.
This marks Zudio's 72nd outlet in Gujarat and its first in Palanpur. With a focus on expansion, the Tata Trent-owned brand aims to open 130 stores in 2023.
Currently boasting 453 stores nationwide, Zudio has a strong presence, notably with 25 stores in Ahmedabad alone, making it the leading city in Gujarat for the fashion brand.
Lifestyle brand Jaypore, under Aditya Birla Fashion and Retail Limited (ABFRL), unveiled its 24th store at Vegas Mall, Dwarka, Delhi.
Spanning 1350 sq. ft., the artisanal space offers handcrafted apparel, home décor, jewelry, and accessories for men and women.
Featuring warm palettes and artisanal techniques, the store reflects Jaypore’s commitment to artistic narratives.
ABFRL, with a vast network, owns international brands like Ralph Lauren, Forever 21, and more.
Luxury fashion brand Saundh aims to expand its retail footprint across India by opening 50 stores by the end of next fiscal year. The brand also plans to set up at least three experiential flagship stores in major metros.
Currently, Saundh has 33 operational stores across India. It is present in 19 cities including all leading metros. From opening 10 stores in its first two years to an additional 17 in the last year, the brand’s expansion is a testament to its market acceptance. It now plans to penetrate deeper into selected Tier II cities that support its e-commerce customer base.
Apart from its D2C website, the brand is available across luxury marketplaces online and offline, including Aza, Ogaan, and Nykaa, amongst others. As of now, e-commerce revenue contributes 7-8 percent of the overall business. The brand plans to increase this to upto 15-18 per cent of the business, states Sarabjeet Saluja, Founder.
Expanding its retail network across the country, Japanese apparel retailer Uniqlo opened its 13th store at the newly-opened The Mall of Faridabad. The store offers the brand’s LifeWear range.
Earlier this year, Uniqlo had opened its first first Highway Store in Zirakpur, as well as our first-ever stores in Mumbai, says Tomohiko Sei, CEO, Uniqlo India. The Faridabad store will offer offer innovative, high-quality apparel to enhance the everyday lives of the brand’s customers, he adds.
Earlier this year, Uniqlo India roped in Katrina Kaif as its brand ambassador.
The store is a step in the direction to offer unparalleled experiences to the brand’s patrons. It will help Uniqlo to enhance the city’s fashion culture and cater to the discerning tastes of fashion enthusiasts, adds Abhishek Bansal, Executive Director, Pacific Group.
21 December 2023, Mumbai
WHY India
India’s e-commerce is on a growth trajectory best described as on steroids. The government e-marketplace (GeM) reaped its highest Gross Merchandise Value of $ 2011 billion, according to a government of India news portal.
As smartphone usage in India gallops to over a billion by the end of 2023 according to market research firm Statista, nearly 100 percent of Indian pin codes have experienced e-commerce adoption, implying the platform’s influence beyond Indian metropolises.
Fueled by low-cost data, enhanced spending power, ease of digital payments, and improved logistical infrastructure that enables smoother deliveries, India’s e-commerce is slated to grow by 18 percent per year until the projected period of 2025, with over a billion Internet users by then.
Multiple data-points
According to the Telecom Regulatory Authority of India’s (TRAI) telecom service performance indicators, March 2023 recorded over 880 million domestic Internet users. In 2022, Indian e-commerce and consumer internet companies raised $15.4 billion in private equity funds and venture capital funding, compared to $8.2 billion raised similarly in 2020. Electronics and apparel make up nearly 70 percent of the e-commerce market when evaluated against transaction value.
Nuanced picture
Other new upcoming categories within e-commerce include education technology, food technology, and hyperlocal delivery.
Currently, the major investors in India are Amazon, Flipkart, Zomato, Nykaa, and Snapdeal, amongst others. Walmart upping its share in Flipkart to 80.5 percent in July 2023 with a $3.5 billion investment is a testimony that India’s e-commerce retail is where all the big guns want to be.
The fashion sector accounts for 18.5% of Indian e-commerce
India’s domestic fashion sector has benefitted substantially thanks to the rise of e-commerce, allowing fashion to spread across the length and breadth of the nation, with a whopping 52 per cent of the world’s most populated country below the age of 30, the primary market for the sector.
Fashion may have been restricted to being aspirational in the past but e-commerce has set it free. According to data from McKinsey's FashionScope, in 2022, India's apparel market was worth $59.3 billion, making it the sixth largest in the world, comparable to the United Kingdom and Germany.
Observations
In a recent report published by ecommercedb.com, the Indian fashion e-commerce market is predicted to reach $16.1 billion by 2023 and account for 18.5 percent of the total e-commerce market in India. By 2027, this figure is projected to reach a projected market volume of nearly $17 billion.
In 2022, the top five online stores in the Indian fashion market will be ajio.com, zivame.com, adidas.co.in, jiomart.com, and firstcry.com. In 2022, Ajio lead this market with revenues of $191.2 million, followed by Zivame with sales of $163.2 million and Adidas with sales of $132.1 million.
Together, the top three online stores accounted for a market share of 50.4 per cent of the top 100 stores in the Indian fashion market.
Indian platform that changed the game
Before Flipkart, e-commerce was not very well-known in India. Flipkart made online shopping accessible to people across the country and provided a platform for small businesses and individuals to sell their products.
It revolutionized the way people shop in India, offered a wide range of products at competitive prices, and provided a convenient shopping experience, which made it easier for people to buy products online.
It had the distinction of introducing several new features, such as cash on delivery, product exchange, and easy returns, which helped build trust among consumers.
In essence, As India moves forward as the world’s fifth-largest economy, with the possibility of being the third-largest in the decade to come, it will likely be among the top three e-commerce powerhouses soon.
Overall E-commerce:
Strengthening its retail presence, multi-designer store, Asmairaa has launched a new store in Chattarpur, New Delhi.
Spread across 6,000 sq ft, the store houses collections by designers like Tamanna Punjabi, Gopi Vaid, Varun Bahl Pret, Seema Thukral, etc.
The expansion is poised to enhance fashion enthusiasts with a variety of exquisite designs and styles from some of the reputed designers in the industry. The brand aims to set more such stores in prominent locations across the region. The expansion will broaden the reach of Asmairra’s offerings to a wider audience.
Founded by Param Baweja and Rupinder Bedi in 2015, Asmairaa is known to be a
beacon of sophistication and opulence, says a spokesperson of the brand.
This festive season marked an extraordinary surge for Myntra, India's premier fashion, beauty, and lifestyle platform, with a remarkable increase of almost 60 million monthly active users. The platform witnessed an influx of 75 million new app users in 2023, contributing to a phenomenal 100 per cent year-on-year growth in its customer base over the last 18 months.
Introducing innovative features to enhance customer experience, Myntra unveiled FWD—an app-within-an-app proposition tailored for its dynamic Gen Z audience. During the festive period, the demand for this cutting-edge fashion segment soared by 2.25 times year-on-year, accompanied by an impressive 175% year-on-year growth in the customer base. The Myntra FWD app, boasting a curated selection of 90,000 different styles, stands out with its 'spot it, get it' format, promising a personalized shopping experience for users.
In Direct-to-Consumer (D2C), Myntra witnessed almost 70 per cent year-on-year growth during the quarter. Leading brands on the platform achieved 100 per cent growth, solidifying Myntra's position as a pivotal player in the e-commerce landscape. Embracing the digital age, Myntra introduced Myntra Mini, a short-form video content platform that garnered an impressive one million daily views during the festive season. This initiative underscores Myntra's commitment to its digitally native user base.
Notably, Myntra incorporated the ChatGPT feature into its platform to elevate the experience around new product launches. Additionally, the integration of cutting-edge AI-led features, including Maya and MyStylist, demonstrates Myntra's commitment to staying at the forefront of technological innovation within the fashion and lifestyle space.
E-commerce giant Flipkart recorded an increase in online shopping by rural consumers in 2023, as per its ‘FlipTrends Report 2023,
Fashion, lifestyle goods and electronic goods topped their list of purchases this year, says Ravi Vijaya Raghavan, Senior Vice President, Flipkart. The e-commerce company played an important role in providing its consumers an access to the latest styles in the market, he adds. .
The report studies data from over 500 million registered users. According to it, shoppers spent an average of seven hours on Flipkart’s e-commerce store this year with the business acquiring over 41 million new customers until November.
Flipkart’s new Chat GPT-powered shopping assistance tool, ‘Flippi’ was used by over four million consumers in’ October, the month when the feature was launched. Flipkart also recorded a rise in shoppers from Tier I, II and cities including Trivandrum, Patna, Lucknow, Ludhiana, Varanasi, Ernakulam, Guwahati and Cuttack, Medinipur, and Bankura.
Satya Paul, a pioneer in Indian retail since 1985, continues to revolutionize traditional fashion. The newly opened store at DLF Emporio, shaped like an egg, symbolizes a cocoon of innovation.
Architectural innovation meets vibrant prints, with Rajesh Pratap Singh, Creative Director, emphasizing the design's experimental and nurturing essence.
The store showcases two latest collections, seamlessly blending Indian and Japanese influences, marking a new chapter in the brand's legacy of forward-thinking aesthetics.
14 December 2023, Mumbai
The growth in India’s online shopping post pandemic is anticipated to significantly propel the country's e-commerce market, contributing an annual growth of $8 billion to $12 billion from 2020 to 2028.
Multiple data-points
A Bain & Co report "How India Shops Online 2023," predicts India's online retail market will grow from $60 billion in 2023 to an impressive $160 billion by 2028.
It forecasts a growth rate of 17-20 per cent in online retail market in 2023 compared to the previous year, falling short of the initially projected 25-30 per cent growth due to concerns about high inflation impacting consumer demand. This comprehensive analysis, conducted in collaboration with Flipkart, sheds light on the evolving dynamics of India's e-commerce landscape.
To harness the burgeoning potential of India's online retail sector, major players such as Amazon, Flipkart backed by Walmart, and Reliance Retail's Ajio are stepping up investments. Amazon, for instance, has announced a substantial investment of $15 billion in the market by 2030.
Granularity
The report emphasizes that India's online shopper base has surged from 120 million between 2019 and 2022, with consumer spending on e-retail doubling over the same period. This growth phenomenon is particularly pronounced in smaller cities, as almost one-third of India's online shoppers hail from Tier II and III cities.
Additionally, a significant portion of online shoppers—approximately one-third—belongs to low-income or low-middle-income groups.
Changing landscape
As e-commerce in India evolves over the next decade, the landscape is expected to be shaped by the expanding base of new shoppers, driving increased spending on fashion. Consumers will likely explore new categories and products, according to Abhishek Raj, Head of Consumer Products at Bain India.
The flourishing e-commerce market is not only benefiting consumers but also expanding the seller base in India. In 2022, the number of sellers added to the market was twice that of 2021, covering a diverse range of categories from small electronics to mobile cases and T-shirts.
The increasing number of monthly transactions reflects brands diversifying into new product categories, as noted by Sankalph Mehrotra, Vice President at Flipkart.
19 December 2023, Mumbai
The Retailers Association of India (RAI) orchestrated the highly anticipated ‘Retail India Summit & Expo (RISE) 2023’ in New Delhi on 15 December. A pivotal gathering for the retail industry, the summit delved into the evolving landscape shaped by consumer expectations.
Dynamic retail landscape: Personalization and omnichannel dominance
Kumar Rajagopalan, CEO of RAI, underscored the imperative of personalization in the face of rapidly evolving consumer dynamics. The summit highlighted the seamless integration of omnichannel retail, emphasizing its transformative impact. The rise of Direct-to-Consumer (D2C) brands, leveraging digital channels, was a key theme reshaping India's retail sector.
India's economic momentum: A $5 trillion future
Dr. Bejoy John, IRS - Director, DPIIT, Ministry of Commerce & Industry, Government of India, emphasized India's remarkable progress toward becoming a $5 trillion economy by 2027. The nation's democratic dividend and its youthful population were identified as catalysts redefining the consumption narrative.
Innovative perspectives from industry leaders
The summit featured insights from retail luminaries such as Lalit Agarwal, MD of V-Mart Retail Ltd., who lauded the industry's spirit of innovation. Discussions spanned diverse topics, including the future of shopping, personalized experiences, and strategies for retail brand expansion.
Tech integration and market expansion strategies
Leaders like Gunjan Shah, CEO of Bata India Ltd., and Anupam Bansal, Director of Liberty Group, shared strategies involving digital transformation, omnichannel approaches, and premiumization initiatives. Shah emphasized agility in navigating the fashion landscape, while Bansal stressed the importance of balancing technology with the touch-and-feel aspect.
Customer-centric approaches and business expansion
Rajesh Jain, CEO of Lacoste India, spoke on prioritizing customer delight and achieving customer-centric goals. The summit showcased a panorama of discussions, including navigating the future of retail, shopping innovations, and transformative approaches for mall makeovers.
RISE 2023: Shaping the future of retail in India
With panel discussions featuring industry stalwarts like Ankur Bhatia, CEO of Chogori India Retail, and Jaytilak Majumdar, Chief Growth Officer of Patanjali Ayurved, RISE 2023 provided a comprehensive exploration of retail's future. The event highlighted the pivotal role of technology, innovation, and customer-centric strategies in shaping India's dynamic retail landscape.
In conclusion, the ‘Retail India Summit & Expo (RISE)’ has solidified its position as a crucial platform, fostering dialogue and innovation to steer the retail sector toward a dynamic and customer-centric future.
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To expand its distribution network across the country, e-commerce giant Flipkart has opened its first grocery fulfillment center in Bhubaneswar, Odisha. Spanning 1.35 lakh sq ft, the store has a dispatch capacity of 2.09 lakh units per day, and will cater to around 16,000 daily orders
Designed to act as a bridge between local retailers and farmers and shoppers across India, the new fulfillment center is expected to generate approximately 300 direct and indirect opportunities for employment in the area. Its launch reiterates the company’s commitment to enhance local economies by bridging the digital gap.
Currently having 24 grocery fulfillment centers across India, Flipkart retails in over 1,800 Indian cities and is constantly expanding its delivery areas that now count over 10,000.
Reliance Retail, with over 50 exclusive brand outlets across India, is embarking on an ambitious strategy to broaden its reach in the clothing and fashion market. The company now aims to extend the distribution of its brands, including Silkfeet, Jivers, Xlerate, Feet Up, Dhuni by Avassa, Riva, John Player Select, kidlyboo, and Altair, to third-party stores.
This initiative is set to cover all markets, including rural areas, as Reliance Retail seeks to tap into a wider consumer base. The brands will be strategically positioned in categories such as western wear, Indian wear, innerwear, lingerie, costume jewelry, footwear, and fashion accessories, catering to the value and mid-premium segments.
Under the Ajio Business banner, Reliance Retail plans to enhance its pilot project by the next spring-summer season, further solidifying its presence in the market. The company is committed to bringing its diverse range of products to third-party stores in various locations, making fashion more accessible to a broader audience.
Moreover, Reliance Retail intends to boost its new formats, Azorte, targeting an annual growth of 50 per cent, signaling its dedication to evolving retail trends. Furthermore, The Trends stores will witness 10 to 15 per cent growth, demonstrating Reliance Retail's commitment to staying at the forefront of the fashion retail landscape.
Launched just last year, these strategic moves underline Reliance Retail's determination to not only establish itself as a key player in the fashion industry but also to continually adapt and grow in response to market dynamics.
