07 June 2023, Mumbai
Indian apparel brands are experiencing promising global prospects as the industry continues to thrive.
According to IMARC Group, the Indian textile and apparel market was valued at $133 billion in 2021, with a projected compound annual growth rate (CAGR) of 13.8 percent from 2021 to 2026.
This growth is fueled by various factors, including the increasing prevalence of high-speed internet, which has facilitated the rapid expansion of online retailing in India.
Growth levers
The industry's growth can also be attributed to shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience offered by online portals. These platforms provide a wide selection of products and multiple payment methods, enhancing the overall shopping experience for consumers.
Rising competition
However, the apparel business has become more competitive over time, with rival brands emerging from neighboring countries such as Pakistan, China, Bangladesh, Korea, and Japan, which all have thriving apparel markets.
Snapshot
One notable Indian apparel brand making waves in the industry is Saundh India, founded in 2019 by Sarabjeet Saluja, also known as Sabby. Saundh India offers a range of clothing items, including tops, Kurtis, jackets, sewn and unstitched kurta sets, loungewear, scarves, and masks.
With its headquarters in Surat, Saundh India initially established its presence in Mumbai and later expanded to Delhi, with ten independent stores in northern India.
Sabby's inspiration for entering the industry came from observing his father's hard work in establishing Sahiba Limited, a well-known garment firm. However, he aimed to create something new that would benefit the larger community, leading to the launch of Saundh India with a budget of Rs 10 crore.
In the ever-evolving world of marketing, brands now prioritize providing a seamless customer experience across multiple channels. While traditional multi-channel marketing aimed to reach a wide audience, the focus has shifted towards quality over quantity in omnichannel approaches.
Growing Role of Social Media
This strategy allows brands to dominate their marketing campaigns on platforms like Instagram and e-commerce websites. Marketers are now concentrating on fewer platforms but enhancing the user experience by providing scrollable content and quick access to information about their clothing.
This approach has proven effective in the post-pandemic "back to work" period, where women's formal attire is in high demand. Brands showcase their office attire on social media accounts, giving viewers a glimpse of their offerings and creating a sense of connection with potential customers.
Influencers, particularly micro-influencers, play a crucial role in the success of apparel brands.
Stickiness
Their relatability and ability to produce logical and resonant content have earned them a loyal following that values their fashion and lifestyle opinions.
Brands recognize the significance of this relationship and seek to establish a genuine presence in the social media community where they can directly engage with their customers.
Social media platforms facilitate this direct connection and enable brands to become more consumer-friendly while generating new product ideas.
Shifting lifestyle paradigm
The global prospects for Indian apparel brands are promising, driven by factors such as shifting lifestyle trends, favorable demographics, rising disposable incomes, and the convenience of online shopping. Saundh India is an example of an Indian apparel brand that has capitalized on these opportunities. Additionally, brands are focusing on providing a seamless customer experience on select platforms, emphasizing quality over quantity. The influence of micro-influencers and the power of social media further contribute to the success of Indian apparel brands in the global market.
Reliance Retail's Fast Fashion Venture Aiming for Global Recognition
India's fast fashion market is rapidly growing, as evidenced by the immense success of international brands like Zara and H&M. Reliance Retail, internally nicknamed Regalia, is poised to challenge these brands and establish its presence in the global fast fashion scene.
The Market Potential and the Reliance Advantage
Fast fashion is the fastest-growing segment in India's apparel and lifestyle sector. While international brands enjoy an advantage in terms of cachet and prime retail locations in major cities, there is still room for more fashion brands to thrive.
Reliance Retail, currently the largest fashion and lifestyle retailer in India with nearly 4,000 stores, aims to create a viable product-retail mix and tap into the aspirational desires of consumers to compete with international brands successfully.
Securing Space and Finalizing Positioning
Reliance Retail is actively working to make its mark in the fast fashion market.
While the official name for the brand is yet to be announced, preparations are underway for its brick-and-mortar stores. Selected outlets in Mumbai's High Street Phoenix and Gurugram's Airia Mall are being finalized, with plans to launch in Delhi, Hyderabad, and Bengaluru as well. However, securing suitable retail spaces in popular shopping destinations has proven challenging due to high mall occupancy rates.
Targeting the Young Consumer Segment
The new brand from Reliance Retail is expected to have mid-premium pricing, catering to the young consumer segment. It will directly compete with Zudio, a partnership between Tata and Zara that has already been launched.
Reliance Retail likely took inspiration from Zudio's success, prompting its entry into the fast fashion market. Given that the market value of textiles and apparel in India reached USD 80 billion in 2021, with an estimated growth of USD 190 billion by 2026, it is a logical move for the retail giant.
India's Rise as a Fast Fashion Focal Point
India's fast fashion industry has become increasingly important on the global stage. A growing middle class, a robust manufacturing sector, strong economic fundamentals, and a tech-savvy population make India a key market that international brands cannot ignore.
As incomes rise, a new class of consumers known as "gold collar" workers is emerging. These well-paid professionals have the desire and meaning to invest in looking and feeling good, leading to an expansion in consumption.
In summary
Reliance Retail's fast fashion venture, internally known as Regalia, is poised to compete with international brands like Zara and H&M in India's growing fast fashion market.
With its extensive retail network, strong market position, and the rise of India's "gold collar" workers, Reliance Retail is strategically positioned to make a significant impact and establish its brand globally.
India's apparel industry gains global prominence as brand credibility rises, solidifying its position on the international stage.
