22 September 2023, Mumbai
According to a recent report by Crisil, organized brick-and-mortar apparel retailers in India are projected to experience a 7-8% increase in revenue during the current fiscal year.
Kickers
This growth is expected to be fueled by heightened demand during the festival and wedding seasons, despite the impact of inflation on discretionary spending during the initial quarter.
Furthermore, the expansion of retail stores, including in Tier II and III cities, is poised to contribute to growth in FY23 and beyond.
Resilence; While the anticipated revenue growth is slightly lower than the pre-pandemic levels of 8-9%, it still demonstrates the sector’s resilience in the face of challenges such as inflation and rising costs.
Indian consumers return to brick-and-mortar retail
The trend of Indian consumers visiting and purchasing from physical stores has been on the rise for some time. The pandemic has further accelerated the growth of online-to-offline retail.
BHARAT
The expansion of retail stores in Tier II and III cities is another significant driver of growth that is expected to sustain the sector’s progress in the years ahead.
Outlook; Overall, the outlook for organized brick-and-mortar apparel retailers in India appears positive
The projected revenue growth in FY23 serves as a strong indication of the sector’s recovery and its potential for future expansion.
Crisil report on organized brick-and-mortar apparel retailers in India: A quick glance
- Growth expected in FY23: 7-8% revenue increase
- Key drivers: Festival and wedding demand, store expansion
- Resilience demonstrated: Despite inflation and rising costs
- Consumers return: Online-to-offline retail on the rise
- BHARAT: Tier II and III cities drive growth
- Outlook positive: Recovery and expansion potential
