12 January 2024, Mumbai

The market is set to reach $170 billion by 2026:

India's value retail market is projected to surge from $111 billion in 2023 to a whopping $170 billion by 2026, with apparel leading the charge, according to a report by Wazir Advisors. 

This translates to a significant 15% compound annual growth rate (CAGR) over the next three years.

Video Insights

Affordable Fashion at the Forefront:

The rapid growth is fueled by rising incomes and increasing demand for affordable clothing, footwear, and accessories. Major retailers like Reliance Retail's Yousta, ABFRL's Style-Up, and Shoppers Stop's InTune have tapped into this potential by offering budget-friendly fashion options.

Rural Opportunity and Urban Limits:

While unorganized players still hold a dominant 79% market share, organized retail chains are making inroads, particularly in smaller cities and towns (Tier III or lower). These areas offer vast untapped potential, with average transaction values typically ranging from Rs 500 to Rs 2,500 and basket sizes between 2.5 and 7 items.

Digital Boost:

E-commerce platforms like Amazon, Flipkart, and Snapdeal are further powering this growth by providing convenient access to a wider range of value products, even in remote locations.

Overall, India's value retail market is on a dynamic trajectory, driven by changing consumer preferences, affordability, and digital reach. 

The future looks bright for both established and emerging players in this promising space.

Gist

1. Fashion Frenzy: $170 billion bonanza by 2026.
2. Bargain Boom: Affordable styles fuel 15% annual growth.
3. Rural Reach: Small towns embrace organized chains.
4. Digital Drive: Online platforms expand product access.
5. Bright Future: Open market welcomes new and old players.

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10 January 2024, Mumbai

WHY India

Fueled by rising disposable incomes, a growing middle class, and a newfound fashion focus among men, India's ethnic wear market surged to a whopping USD 18.68 billion in 2023, according to Technavio.

Data point

This impressive growth, clocking in at a healthy CAGR of 8%, is particularly driven by the increasing demand for ethnic wear in Tier 2 and 3 cities, where men are embracing traditional styles with a modern twist.

Evolving paradigm

This trend signifies a shift in the Indian fashion landscape, moving beyond major metropolitan centers and catering to the aspirations of a broader consumer base.

With more men seeking to express their cultural identity through their clothing choices, the demand for kurtas, sherwanis, and Nehru jackets is skyrocketing, creating a lucrative market for both established and emerging brands.

Prognosis

Analysts suggest that this trend is likely to continue in the coming years, fueled by factors like rising awareness of Indian heritage, the growing influence of celebrities sporting ethnic wear, and the increasing availability of stylish and affordable options online.

As disposable incomes continue to rise in Tier 2 and Tier 3 cities, the demand for ethnic wear is expected to further flourish, transforming the fashion landscape of India and offering exciting opportunities for players in this booming market.

5 Key Insights: India's Booming Ethnic Wear Market

1. Tier 2 Surge: Men in smaller cities drive a $18.7 billion boom, 8% CAGR growth.
2. Beyond Metros: Shift in fashion catering to broader aspirations, Tier 2 & 3.
3. Cultural Expression: Kurtas, sherwanis, & Nehru jackets soar as men embrace identity.
4. Future Promise: Trend to continue, fueled by heritage awareness, celebrity influence, and online options.
5. Lucrative Potential: Rising incomes offer exciting opportunities for ethnic wear brands.

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08 January 2024, Mumbai

The year 2023 witnessed a dramatic reshuffling of the global denim fabric trade, rewriting the export and import landscape.

While some countries emerged as trailblazers, weaving vibrant threads of growth, others encountered a difficult re-adjustment in their textile tapestries. 

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Let's unravel the intricate story of these denim winners and challengers, then glimpse into the future trends shaping the industry in 2024.

Crowning the New Denim Kings:

India, the undisputed denim monarch, held its throne firmly, boasting a 10% export surge. 

A skilled workforce, sustainable practices, and savvy deals kept Indian looms humming. Look for this reign to continue in 2024, with a focus on ethical and innovative fabrics.

Turkey, making a glorious comeback, saw a dazzling 8% rise. Government support and high-tech weaving revitalized the Turkish industry. 

Expect Turkish threads to add even more sophistication in 2024, emphasizing performance and eco-friendly options.

Egypt emerged as a surprise contender, enjoying a 7% jump fueled by competitive pricing, green methods, and European partnerships. Watch as Egypt continues its ascent in 2024, offering sustainable choices at tempting prices.

Facing the Fabric Frayed:

China, the long-reigning champion, suffered a 4% decline, caught in the web of rising costs and Southeast Asian competition. 2024 may see China refocus on domestic production and homegrown brands, potentially impacting exports.

Pakistan, grappling with economic woes, saw a 5% export dip due to inflation and supply chain disruptions. To regain its market share, Pakistan will likely need to strengthen its infrastructure and quality standards in 2024.

Denim's Next Chapter:

So, what does the future hold for the denim trade? 2024 is poised to be a year of continued innovation, with a strong emphasis on sustainability and ethical practices. Look for more recycled and organic fibers, water-saving dyeing techniques, and fair labor practices across the supply chain. 

Additionally, performance and functionality will gain prominence, with denim infused with features like stretch, water resistance, and even temperature regulation.

As the denim landscape continues to evolve, the winners and challengers of 2023 have set the stage for a fascinating next chapter. 

Stay tuned to see how this ever-adapting fabric rewrites the textile industry in the years to come.

5 Key Insights:

1. India: King Reigns (10% surge, ethical & innovative focus)
2. Turkey: Glorious Comeback (8% rise, performance & eco-friendly)
3. Egypt: Surprise Contender (7% jump, green methods & European partnerships)
4. China: Champion Stumbles (4% decline, domestic focus & homegrown brands)
5. Pakistan: Facing Challenges (5% dip, infrastructure & quality improvements)

Future Trends:

1. Sustainable Revolution (recycled fibers, water-saving dyeing, fair labor)
2. Functional Fabrics Rise (stretch, water resistance, temperature regulation)

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11 January 2024, Mumbai

Despite a recent decline in UK clothing imports, Bangladesh has solidified its position as the top supplier by volume, surpassing even China. 

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This achievement marks a significant milestone in the country's journey towards global leadership in the apparel industry.

Key Takeaways:

• UK's global clothing imports declined by 16.44% in value and 12.20% in volume during January–October 2023 compared to the same period in 2022.
• Bangladesh secured the top spot as a clothing supplier to the UK in terms of volume (KG) in 2022 and maintained this position through the first ten months of 2023.
• While Bangladesh holds a 23% share of UK clothing imports by value and 28% by volume, opportunities for further growth remain, particularly in the mid-to-high-priced segment.
• Moving beyond cost leadership and focusing on backward and forward integration, value-added products, and niche markets will be crucial for sustained growth.
• BGMEA is actively supporting the industry's transformation through initiatives like the Center for Innovation, Efficiency, and OSH.

Challenges and Opportunities:

The report highlights the ongoing pressure on prices, with Bangladesh offering the lowest average import price compared to competitors like China, Turkey, and India. 

This indicates a need to diversify into higher-value segments, where complex processing and functionality can command premium prices.

The emergence of virtual shopping and the growing popularity of pre-owned and up-cycled clothing are further disruptions that the industry must prepare for.

BGMEA's Role:

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is actively supporting the industry's transformation through initiatives like the Center for Innovation, Efficiency, and OSH. 

These initiatives aim to foster innovation, improve efficiency, and enhance occupational safety and health standards.

Epilogue:

While Bangladesh's success in the UK market is commendable, the report underscores the need for continued focus on value addition, diversification, and adaptation to evolving market trends. 

With BGMEA's support and the commitment of individual entrepreneurs, the Bangladeshi apparel industry is well-positioned to navigate the challenges and capitalize on the opportunities ahead.

5 Key Insights:

1. Volume King: Bangladesh tops UK supply despite market dip.
2. Value Lags: Cost pressure hinders premium market access.
3. Diversify Up: Higher-end products are key for sustained growth.
4. Embrace Change: Virtual shopping and sustainability disrupt.
5. BGMEA Guides: Support fosters innovation and efficiency.

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08 January 2024, Mumbai

Epochal moment

India's 2023 Fashion Revolution: Global Stars Strut Onto the Stage

The Indian fashion scene exploded in 2023, witnessing a dazzling entry of international brands across all segments. 

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Like runway giants strutting in designer threads, luxury names like Balenciaga under Reliance and e-commerce favorites like BoohooMAN on Myntra took center stage.

But what fueled this fashion influx, and who will be the next stars lighting up the Indian market in 2024?

Reliance: The Grand Couturier

Reliance Industries became the orchestrator of this captivating performance. Its subsidiary, Reliance Brands Ltd. (RBL), transformed into a fashion-forward force, introducing coveted luxury brands like Sandro, Maje, Valentino, and Balenciaga to India. These designer titans found a new platform to shine, solidifying RBL's position as a fashion powerhouse.

"India's rising disposable income and evolving customer preferences present a unique opportunity for luxury brands," stated Darshan Mehta, CEO of RBL, highlighting the strategic logic behind his acquisitions.

E-commerce: Catwalking onto the Scene

But online platforms weren't left behind. Myntra, the e-commerce darling, played a starring role, onboarding diverse names like BoohooMAN, Anne Klein, NEXT, Oasis, and Parfois. 

This catered to a broad range of styles and budgets, making Myntra an international fashion hotspot for Indian shoppers.

"We are constantly expanding our brand portfolio and offering curated experiences to our diverse customer base," explained Amar Nagaram, CEO of Myntra, emphasizing the platform's commitment to global options.

Beyond Reliance and E-commerce: More Players Join the Party

Birkenstock, the iconic sandal brand, announced plans for 10 franchisee outlets, bringing its comfort and style to a wider audience. Social commerce stepped in too, with Trell partnering with Bestseller India to introduce European brands like Jack & Jones, Vero Moda, and Only to its influencer network.

What Fueled the Fashion Invasion?

Several factors propelled this global fashion influx:

1. A Booming Market: India's rapidly growing middle class, rising disposable income, and increasing internet penetration created a lucrative market for international brands.
2. Easing Regulations: The government's efforts to simplify FDI norms and foster a startup-friendly environment further strengthened India's appeal.
3. Aspirational Audience: "India's young and aspirational population, combined with its strong economic growth, makes it a highly attractive market for global brands," commented Abhishek Agarwal, Managing Director of Alchemy Capital.

2024: Brands to Watch on the Runway

With its ever-evolving market, India promises to attract even more international names in 2024. 

Brands like Roberto Cavalli, Dunhill, Armani Caffe, and Foot Locker are reportedly in talks, potentially through Reliance and other major players. 

European and Turkish brands like Kiabi, Mavi, Damat, and Dufy are also eyeing expansion.

The Future: Bold, Stylish, and Full of Surprises

This influx of global brands promises to transform the Indian fashion landscape. Increased competition, a wider variety of styles, and improved product quality are inevitable. 

Indian consumers will be exposed to international trends, shaping their tastes and preferences.

"The Indian fashion market is poised for further growth and diversification," predicted Ritu Bansal, Founder and CEO of Ritu Kumar. "We can expect to see a unique blend of global trends and Indian sensibilities emerge in the coming years."

As the Indian fashion story unfolds, one thing is certain: the future promises to be bold, stylish, and full of surprises. 

This market, once a spectator on the global stage, is now taking center stage, captivating audiences with its vibrant narrative.

Gist

• Luxury Boom: Reliance brings Balenciaga, others, fueled by rising income.
• E-commerce Catwalks: Myntra onboards BoohooMAN, catering to diverse styles.
• Beyond Giants: Birkenstock joins, social commerce brings European brands.
• Market Magnets: Growing middle class, easing regulations, young consumers.
• Future Runway: Roberto Cavalli, Foot Locker next, Indian fashion evolves.

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06 January 2024, Mumbai

WHY India

Malls Bounce Back: After a pandemic dip, mall visits shot up 42% in 2023, with Phoenix Marketcity in Bangalore even surpassing pre-pandemic levels!

Video Insights

Luxury Reigns: Premium malls saw a sparkling 15% growth, fueled by flagship launches like Louis Vuitton and Dior at Delhi's DLF Emporio.

Tier 2 Takes Off: In a surprise twist, smaller cities like Lucknow and Jaipur witnessed a 27% mall boom, with Phoenix Palassio leading the charge.

Experiences Win: Forget boring stores; in 2024, malls will thrive by offering art exhibits, live music, and unique events.

High Streets Rise Again: With a 38% foot traffic surge, high streets are back! Mumbai's Hill Road, with its mix of street food and boutiques, shows why.

Foodie Frenzy: High streets saw a 24% rise in food outlets, with Chennai's Anna Salai leading the pack.

Data Drives Success: Smart retailers like Fabindia in Jaipur are using data to personalize offers and boost sales—the future of high streets?

So buckle up! 

2024 promises a thrilling ride as malls and high streets reinvent themselves through bold moves and smart strategies. 

Get ready for an experiential shopping revolution!

5 Retail Revolutions:

1. Mall Mania: Visits soar 42%; luxury reigns (15% boost!).
2. Tier 2 Triumph: Smaller cities (27% surge!) challenge metros.
3. Experiences Rule: Art, music, and events in 2024's malls.
4. High Streets Hustle: Back with 38% footfall, food leads (24% growth!).
5. Data Drives Decisions: Personalization fuels success on the high streets.

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11 January 2024, Mumbai

India's once-thriving textile and apparel industry is tangled in a knot of challenges, stalling its progress despite promising growth forecasts.

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We unravel the threads of this dilemma, examining the barriers to success and potential paths to a brighter future.

The Growth Gap: Global apparel is set to reach $1.7 trillion by 2025, yet India's share remains stagnant. Projected exports of $40 billion by 2022-23 fell short, hovering around $24 billion. This stark gap between expectations and reality exposes the sector's hurdles.

Metrics:

Cost Concerns Constrict: High input costs squeeze the industry's breath. Expensive cotton, complex taxes, and logistical woes inflate production. Indian mills pay 20-25% more per kg of cotton than global standards, struggling to compete with lower-cost countries like Bangladesh and Vietnam.

Import Tsunami Erodes Profits: A surge of cheaper ready-made garment imports swamps the market. In 2022–23, Indian apparel imports doubled from 2019–20 levels, drowning out local producers' profits and hindering job creation.

Environmental Unraveling: Weaving in environmental concerns paints a complex picture. Water pollution from dyeing, inefficient energy use, and mountains of textile waste demand attention. The industry needs a greener shift, embracing practices like renewable energy.

India's textile tale needs a rewrite. Overcoming cost barriers, tackling import waves, and embracing green practices are crucial threads to reweave the sector's success. Can India untangle these challenges and claim its rightful place in the global fashion tapestry?

Only time will tell.

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09 January 2024, Mumbai

ZUDIO: A fashion Zenith 

A brand of multi-category apparel wear for women, men, and kids. Trent's value fashion concept- Zudio offers fashion at irresistible prices for men, women, and children. 

Video Insights

Zudio, a value fashion brand from the Tata Group, plans to open 150 to 200 more stores by the end of FY2025, tapping into the rising demand for low-cost clothing. Zudio is doing well despite the market slowdown, as more customers look for fashionable clothes that fit their budget. 

Nuanced picture

USP; Irresistible fashion @ irresistible prices

Zudio is part of Trent, the Tata Group’s retail arm, which has already opened around 100 exclusive outlets for Zudio in FY2024 and aims to grow its retail footprint further. 

 Zudio was launched by the Tata Group in 2017 to cater to the value-fashion needs of young Indian consumers. 

The brand provides a variety of casual wear, party wear, and loungewear for men, women, and kids, along with accessories and lifestyle products, all under Rs 1,000. 

More about background

Trent also runs the department store chain Westside and has a joint venture with the Spanish giant Inditex SA to sell Massimo Dutti and Zara products in India.

5 key insights:

1. Budget fashion: Stylish threads, budget-friendly prices.
2. Rapid expansion: 200 new stores, tapping affordability boom.
3. Trend-conscious: Casual, party, lounge wear for all ages.
4. Tata backed: Trusted brand, part of retail giant Trent.
5. Global ambitions: Partnering with Zara giant, eyeing wider reach.

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05 January 2024, Mumbai

Consumer's Corner:

Life in my small town isn't so small anymore. Gone are the days of dusty shelves and limited options.

Video Insights

Today, brands I once only whispered about in hushed tones line the streets, their storefronts gleaming with promises of variety and convenience. No more grueling trips to the city for that perfect outfit or trendy gadget. 

My smartphone, once a window to a bigger world, is now a shopping mall in my pocket, buzzing with deals and tailored recommendations. 

I get to be picky, to choose quality over quantity, to voice my opinions on social media and see them heard by giants. This connectedness doesn't just bring the world closer; it makes me feel like I belong in it.

And yes, while I indulge in the latest trends, I also keep an eye on green practices, rewarding brands that champion sustainability. Small-town life is thriving, and so am I.

Competitor's Crucible:

The retail juggernaut is rolling, and small-town merchants like me are caught in its wake. These brand behemoths cast long shadows, their familiar logos and loyal customer bases dwarfing my humble shop. 

Their pockets are deeper, their tech slicker, and their logistics networks are labyrinthine. How can I compete? The answer lies in agility, in knowing my customers on a first-name basis, in offering that personalized touch, that unique local flavor. 

I need to be the friendly face, the trusted advisor, and the one who understands not just their needs but their stories. I need to stay nimble, adapting to their evolving tastes and anticipating their next desires. 

The competition is fierce, but I have a secret weapon: the heart of a small town, beating in rhythm with its people.

The Big Picture:

India's retail landscape is transforming, with its heart pumping in both booming towns and bustling streets.

Consumers are empowered, demanding variety, convenience, and connection. Businesses, big and small, are scrambling to adapt, to find their niche, and to win hearts and wallets.

This dynamic dance promises vibrant marketplaces, thriving communities, and a future where every consumer, regardless of zip code, gets to have their say. The story is still unfolding, but one thing is clear: it's going to be a thrilling ride.

1. Small town surge: Big brands arrive, convenience thrives.
2. Tech-powered picks: Savvy shoppers, personalized clicks.
3. Local hearts fight: Familiar faces, unique spaces.
4. Connected commerce: Everyone's heard, voices empowered.
5. Thrilling retail dance: Big & small compete, vibrant chance.

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