01 September 2023, Mumbai

Jack & Jones, a men's fashion brand under Bestseller, has inaugurated a new store in Kochi's Forum Mall, Maradu. Commemorating 15 years of operations in India, Jack & Jones originally entered the Indian market in 2008 with its first store at Oberoi Mall, Mumbai.

Background

Bestseller, the Danish parent company of Jack & Jones, established in 1975, oversees more than 20 fashion brands across 46 countries through 2,800 chain stores and 12,000 external multi-brand stores.

With over 313 exclusive brand outlets and a presence in 1,785 shop-in-shops, Bestseller India markets six brands including Jack & Jones, Vero Moda, and Only.

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31 August 2023, Mumbai

Swedish fashion brand H&M has opened its first store in Bihar, the first in the state's tier-2 city of Patna.

The store, located in the Christia Colony, Chajju Bagh area, offers a wide range of men's, women's, and children's clothing, as well as bags, shoes, and accessories.

Bharat

The opening of the store is a sign of the growing fashion industry in Bihar and the increasing demand for global brands in tier-2 and tier-3 cities. H&M is expected to draw a significant number of visitors to the store, providing them with access to the latest fashion trends.

The store is also a major boost for the local economy, creating jobs and generating revenue. It is a positive sign for the future of fashion in Bihar and a testament to the state's growing appeal to international brands.

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01 September 2023, Mumbai

Uniqlo, the distinguished brand renowned for its ready-to-wear attire and flagship label within the Japanese conglomerate Fast Retailing, announced a significant development on Monday. The brand introduced Daisuke Tsukagoshi, aged 44, as the new Chief Operating Officer.

Role & responsibility

In this role, Tsukagoshi's primary responsibility is to provide crucial support to the founder and CEO, Tadashi Yanai, aged 74. Having been overseeing Uniqlo's global day-to-day operations since the previous year's September, Daisuke Tsukagoshi is set to take on multiple pivotal positions starting this Friday.

This includes assuming the responsibilities of Executive Director, President, and Chief Operating Officer at Uniqlo Co., the entity with oversight over all brand-related activities. Tsukagoshi also holds leadership in Fast Retailing's endeavors in North America, a region that witnessed the company's first-time profitability during the 2021/22 fiscal year.

Growth centric

With robust expansion plans for this region in the forthcoming years, the company's aspirations are significant. As of now, there's no official successor named by Tadashi Yanai, leading to conjecture whenever one of his key associates is promoted to a notable role.

Despite this, Yanai's two sons, Kazumi and Koji Yanai, have been active members of Fast Retailing's board of directors since 2018.

Background; It's worth noting that during this period, Yanai repeatedly dismissed any notion of establishing a family-oriented succession strategy.

Back in 2019, Yanai publicly conveyed his preference for a woman to eventually take the helm of his expansive business empire.

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31 August 2023, Mumbai

Spykar, the western wear brand, enhances its foothold in Jharkhand by inaugurating a new store at the Mall of Ranchi. The store exudes a youthful, industrial vibe with its grey metal and natural wood interior. It flaunts the brand's iconic denim line, encompassing both distressed and sleek options, along with graphic tees, flannel shirts, and seasonal outerwear.

Array

Nestled among renowned brands like Biba, Aldo, and Levi’s, Spykar joins Ranchi's Mall of fame. Managed by Pranami Group, the mall debuted in July, featuring an array of Indian and international brands.

In a parallel stride, Spykar extends its reach to Maharashtra, unveiling a fresh outlet in Sangli's Khot Empire at Chandani Chowk, housing its complete collection of casual wear for men and women.

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28 August 2023, Mumbai

The hosiery sector has come a long way from just providing bare necessities through innovations in fabric and knitting technologies. In 2022, the global sector including men’s and women’s hosiery was valued at $41.8 billion and is projected to reach $55.6 billion by 2030, growing at a CAGR of 3.6 per cent from 2022-30.

The US market is estimated at $7 billion, whilst China has forecasted a 4.9 per cent CAGR, with market size reaching $10 billion by 2030. Japan and Canada, each forecast to grow at 1.7 per cent and 2.9 per cent respectively over the 2022-30 period. Within Europe, Germany is expected to grow at approximately 2.9 per cent CAGR.

India charts new growth

Closer home, in India, the sector has a phenomenal performance lined up in India with growth expectations between 18 and 20 per cent year-on-year revenue, thanks to a revival of rural demand. The sector’s revenue is expected to touch around Rs 36,000 crore in fiscal 2024, according to CRISIL Ratings.

The operating margin will expand 300-400 basis points (bps) on softer input prices and improved capacity utilisations. The conclusion arrived after 28 hosiery manufacturers accounting for one-third of the sector’s revenue were analyzed and subsequently, CRISIL Rating published the report.

China’s hold over global hosiery

By the end of June 2023, China had already exported 256 million pairs of women’s hosiery to the US, capturing 67 per cent of the market. Moreover, women's hosiery imports from China exceeded the figures recorded by the second-largest supplier, Pakistan (47 million pairs), fivefold. The third position in this ranking was held by El Salvador (28 million pairs), with a 7.4 per cent.

Rural consumers have high impact on the hosiery sector

Last year the rural economies underwent hardship with rising inflation and lower agrarian incomes, This impacted the hosiery sector as 50 per cent of the sector’s consumers are rural and therefore the sector’s revenues dipped by 30 per cent in 2022.

CRISIL Ratings Director Rahul Guha states in the report that in 2023-24, urban demand will remain stable, while a well-distributed monsoon and probable inflation moderation should boost rural demand, leading to a recovery of 35-40 per cent in volume.

Unlimited opportunities

Potential export opportunities, especially to Gulf countries, could bump up the volume further. Capacity utilization had fallen to 60 per cent in 2022-23 but with improved market conditions, particularly rural India bouncing back, capacity utilization will be 90 per cent in fiscal year 2023-24. 

According to a senior CRISIL Rating spokesperson, not too many companies were taking up significant capacity expansion last year, and this resulted in long-term debt becoming minimal. Strong cash flows from higher revenue and profitability will be sufficient to meet incremental working capital requirements and keep overall debt in check according to the CRISIL Ratings expert.  The trade deal between the UAE and India would have significant growth for hosiery.

The sector aims to regain pre-Covid operating margins

As hosiery demand grows, manufacturers are pulling back and curtailing on advertising and marketing. Almost 90 per cent capacity utilization and good export prices are helping manufacturers gain back operating margins – at least by 12 to 16 per cent.

Notably, the Comprehensive Economic Partnership Agreement signed by the government with UAE could boost textile segment exports, especially hosiery. The agreement could add 2-3 per cent to hosiery exports from the historical level of 10 per cent.

Amid strong demand pull, manufacturers will curtail their advertising and marketing expenses. Increased operating leverage from higher capacity utilisations, will aid profitability. Hence, the operating margin will improve to the pre-pandemic level of 12-14 per cent.

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24 August 2023, Mumbai

Simply unwinding and experiencing a feel-good dynamic combination of retail, entertainment, and services with relaxed social connections is part of a day out at the mall with family and friends for people around the globe.

New ‘hybrid’ malls are now providing all this and more with enhanced shopping and buying experiences with Virtual Reality (VR) and augmented Reality (AR) technology to see products more realistically along a plethora of high-quality dining outlets, cinemas, game arcades, concert halls, and bowling alleys, all designed to ensure a seamless experience.

Across the world, hybrid malls are coming to their own with their huge layouts and theme-based events, and inviting décor to strengthen a sense of neighborhood and make it a thriving social center rather than merely a place to shop.

Many futuristic hybrid malls by 2030 globally

A recent study the Ericsson ConsumerLab: Ten Hot Consumer Trends 2030, done by leading Stockholm-based Ericsson - well-known for helping communications service providers to capture the full value of connectivity, points out that high-tech hybrid malls will be extremely common by 2030, with consumers enjoying global experiences, retail shopping and social connections in a physical setting near their home.

These huge physical outlets will have high-tech VR, AR, and programmable materials that will positively contribute to local life and make moving to small towns and rural areas more feasible and attractive around the globe.

These malls will have an Everyspace Plaza with areas such as event halls showcasing artists to digitally perform as if they were there, ‘immersive beauty salons’ that use volumetric modeling technology to digitally enhance looks, ‘meta tailors’ for altering and tailoring fast fashion clothing to customer preference, hybrid gyms for enhancing physical vigor and mental health and virtual restaurants which are distraction-free where one can virtually eat with friends in other restaurants, anywhere in the world.

Sustainability and advanced analytics in focus

However, even without these futuristic facilities, hybrid malls today are partnering with various government bodies like the fire department, traffic department, and local municipal bodies to be able to implement sustainability and environmentally friendly practices.

An important feature is the waste management programs for managing dry and wet waste along with water conservation practices with recycled water efficiently utilized for flush systems and advanced spray mechanisms in taps in mall bathrooms.  

These green steps are not only changing the retail environment but also the outside, by creating and maintaining green spaces and optimizing resource utilization of their local communities.

Hybrid malls have a data-driven approach that uses the power of advanced analytics, AI-driven insights, and interactive digital platforms, to increase operational efficiency by collecting and analyzing data on energy usage, footfall patterns, and customer preferences to minimize waste and energy consumption.

Retail Leasing Transformations in India

Retail leasing is on a high growth trajectory with huge malls sprouting up across the country. India’s middle class rapidly grows from around 300 million in 2015 to nearly 600 million by 2030, fuelling demand for a wider range of goods and services, according to the World Bank. Physical stores are focusing on creating better customer experiences with a more versatile product mix from brands to keep customers away from the rapidly increasing e-commerce industry.

Location..Location.Location

Developers are now concentrating on well-located and easily accessible retail space with a design and layout that is well-suited to their target customers, as each locality has its USP.

In 2022, retail leasing in the top seven Indian cities increased 70 percent year-on-year and supply increased 27 percent year-on-year basis, This trend is slowly moving to the Tier I and II cities too.

Indian customers now want more engaging experiences with social interaction spaces and entertainment zones rather than just retail shopping. Budgets may be tight for everyday retail therapy but continuously expandable when spending on groceries and home decor, dining in, movies, and other interactive experience that defines a relaxing day out at a mall.

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