12 November 2024, Mumbai

Second quarter (Q2) of FY25 results of India's apparel retail sector was a mixed one, with clear trends like premiumization and value-market pushing growth amidst inflationary pressures and strong competition.

While some players like Arvind Fashions and Vedant Fashions reported strong growth in profit, others like Shoppers Stop faced headwinds.

Strong Q2 performances

Table: Revenue growth and key drivers

Strong festive demand and wedding season sales drove up growth for brands like Vedant Fashions (Manyavar) and Kewal Kiran Clothing (Killer Jeans). In fact, Vedant Fashions the ethnic wear giant reported a 21 per cent YoY jump in revenue, driven by strong festive demand and expansion into new markets. The company's focus on occasion wear and premium offerings continues to resonate with consumers. Value segment showed resilience with players like, V-Mart and V2 Retail reporting positive numbers, indicating continued strength in the value-conscious consumer segment.

Meanwhile companies like Shoppers Stop are focusing on expanding their store network and diversifying their offerings to drive growth. The department store chain reported a 12 per cent rise in revenue, driven by store network expansion and growth in private label brands. The company's omnichannel strategy is also gaining traction. Rising raw material and operating costs continue to impact margins across the sector. Even as online channels remain a key growth driver for many brands, although profitability remains a challenge for some.

The Q2 results indicate a mixed bag for the Indian apparel sector. While festive demand and expansion strategies are driving growth for some, rising costs and a challenging macroeconomic environment are impacting others. The trend suggests a growing divergence between brands catering to different consumer segments and adopting varying strategies.

While some brands like Vedant Fashions and Kewal Kiran Clothing report strong double-digit growth, others like Credo Brands show more moderate growth, highlighting the varying impact of market conditions and individual company strategies.

Overall, the Q2 FY25 performance shows a moderate improvement compared to the same period last year when the sector was still recovering from the pandemic-induced slowdown. However, growth is uneven across the sector, and challenges remain. While the sector is witnessing growth driven by festive demand and brand consciousness, companies are also grappling with challenges like rising costs and intense competition. The ability to adapt to evolving consumer preferences, embrace online channels, and maintain operational efficiency will be crucial for success in this dynamic market.

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12 November 2024, Mumbai

Baazar Style Retail plans to penetrate deeper into its core markets while also forming new clusters in focus markets.

Besides, the company also plans to expand its store count. In Q2, FY25 spanning July-Sep’24, the company added 18 new stores taking its total store count in the country to 184 as of Sep’24. It plans to expand its store count

A Kolkata-based value fashion retailer, Bazar Style Retail narrowed its Q2, FY25 net loss to Rs 9 crore ($1.1 million) as against a net loss of Rs 15 crore posted in the year-ago quarter.

The company also reported a 65 per cent rise in its revenue for the quarter to Rs 311 crore, as against Rs 188 crore in the corresponding quarter of the previous fiscal year.

The share of Baazar Style’s private label sales increased to 49 per cent of the total in H1FY25 as compared to H1FY24.

Founded in 2013, Baazar Style Retail is one of the fastest growing value fashion retailers in eastern India with market leadership in West Bengal and Odisha.

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11 November 2024, Mumbai

Expanding the brand’s eco-friendly clothing range, Cosset Clothing has launched a new collection of organic cotton and woolen knitwear for winter. Combining sustainability with timeless style, this capsule collection offers versatile pieces designed for easy mixing and matching.

Currently retailing on the brand’s direct-to-consumer e-commerce site, the collection offers sweaters, cardigans and trousers in a variety of colors, from pastels to bold shades, inspired by 1980s sportswear.

Designed for comfort, the collection showcases intricate lace knit and cable knit details. Produced in India, each piece in this collection is thoughtfully designed at Cosset’s headquarters in Delhi, with woolen yarn dyed to perfection, then sampled and produced in Ludhiana before receiving final touches and packaging back in Delhi.

Founded in April 2021 by Shriya and Isha Suri, Cosset Clothing aims to bridge the gap between style and sustainability by offering women in the age group of 20s-40s, premium garments crafted from quality textiles that balance modern style with eco-consciousness.

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12 November 2024, Mumbai

Women’s ethnic wear brand Soch has expanded its bridal wear range with the launch of its new ‘Wedding Wardrobe Collection,’ tailored to meet the needs of the entire wedding party this winter festive season.

The collection showcases a stunning range of bridal trousseaus featuring luxurious fabrics, intricate embroidery, and dazzling embellishments. The collection also includes arange of versatile bridesmaid dresses designed for various wedding functions and a selection of elegant and sophisticated ensembles for wedding guests.

Catering to a wide customer base, the collection offers classic silhouettes such as lehengas, sarees, and anarkalis, blending traditional craftsmanship with contemporary design. Priced starting at Rs 7,000, the collection is accessible both online and at Soch’s physical retail locations.

Positioned as ‘the largest evening-occasion wear ethnic brand for women in India,’Soch operates 175 stores across 70 cities and maintains a direct-to-consumer e-commerce platform. Its extensive product line includes sarees, lehengas, salwar suits, kurtas, tunics, kaftans, and other ethnic garments, cementing its reputation as a go-to destination for festive and special occasion attire.

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12 November 2024, Mumbai

India’s premier fashion and lifestyle retailer, Shoppers Stop organised a grand fashion show at the Ambience Mall in Delhi to launch its latest wedding collection. Choreographed by the esteemed model Marc Robinson, the event featured a presentation of seven distinct wedding looks that seamlessly merged traditional elegance with modern flair.

Celebrating the diverse essence of Indian weddings, the fashion show showcased a wide range of outfits for every key event. The wedding collection offers vibrant Haldi outfits, detailed Mehendi styles, sophisticated Engagement attire, show-stopping Reception pieces, opulent Wedding ensembles, chic Cocktail wear, and stylish looks for Destination weddings. Each piece in the collection embodies a careful blend of traditional artistry and contemporary design.

Offering an extensive range of choices catering to various preferences, the collection ensures each of the retailer’s customers finds their perfect attire for any wedding event.

Positioning itself as the ultimate wedding fashion destination, Shoppers Stop continues to elevate its offerings with a refined mix of luxury, quality, and style. Available at Shoppers Stop stores across the nation, the collection provides an exceptional shopping experience for those seeking to enhance their wedding wardrobe.

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11 November 2024, Mumbai

The Q2, FY25 net profit for Rupa & Company declined by 10 per cent to Rs 18 crore ($2.2 million) as against Rs 21 crore in the corresponding quarter last year. The company’s revenue for the quarter declined to Rs 297 crore from Rs 302 crore in the corresponding quarter of the previous fiscal.

In H1, FY25, Rupa & Co’s net profit declined to Rs 29 crore while revenue contracted to Rs 507 crore. According to Vikash Agarwal, Director, this profit decline was a result of competitive pricing pressures in the industry and resistance to price increases following the stabilisation of yarn costs. Some of the demand typically seen during the festive season had shifted to Q3 this year, he noted but expressed optimism about the quarters ahead, citing expected growth in thermal wear, athleisure, and modern trade,

Highlighting the company’s ongoing retail expansion, Agarwal reveals, the company plans to open 31 EBOs in H1, FY25 to reach a wider customer base. The brand also aims to achieve new business milestone during the period and introduce innovative products to our diverse customer segments, he adds.

One of India’s largest knitwear brands, Rupa & Company offers a wide range of products including innerwear, casual wear, thermal wear, and sleepwear for men, women, and children.

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12 November 2024, Mumbai

To celebrate its 50th anniversary, India’s largest apparel manufacturer and exporter, Shahi Exports, has launched a major rebranding initiative, reaffirming its dedication to ethical practices, sustainable innovation, and workforce empowerment.

Introducing a fresh visual identity, this rebranding embodies Shahi’s legacy and forward-thinking ethos. Central to this transformation is a new logo featuring a gradient color palette that transitions from teal to purple, symbolising clarity, stability, and wisdom. A distinctive spark atop the ‘I’ signifies Shahi’s unwavering commitment to excellence and innovation.

The company’s new tagline, ‘Manufacturing with a purpose,’ reflects the mission that has guided Shahi for half a century. The updated mission statement emphasises, the company is a one-stop manufacturing destination that invests in people and the planet. Going beyond just fashion, the company champions ethical practices, empower its employees, and drives sustainable innovation in the global apparel and textile industry.

Founded in 1974, Shahi Exports has evolved into one of the world’s most reliable apparel manufacturers. Today, the company boasts over 50 factories across eight states in India and maintains an 80 per cent vertical integration in its garment production process.

Through this revitalised identity, Shahi Exports underscores its continuous focus on pioneering sustainability and fostering a positive impact on both the industry and the communities it serves.

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12 November 2024, Mumbai

Despite global economic headwinds, India's fashion industry is set to explode in 2025, driven by a potent mix of economic expansion, a burgeoning middle class, and a growing preference for homegrown brands. This is according to a recent report by The Business of Fashion (BoF) and McKinsey & Company, which paints a vibrant picture of India's fashion future.

Economic Engine and Consumer Powerhouse

India's economy is projected to grow at a robust 7% year-on-year, outpacing all other major economies. This positions India to become the world's third-largest consumer market by 2027, presenting a massive opportunity for both domestic and international fashion brands.

Source: McKinsey Fashion Growth Forecasts 2025

This impressive growth is fuelled by several factors:

• Expanding Middle Class: India's middle class is predicted to reach a staggering 1 billion by 2050, representing a massive consumer base with increasing disposable income.

• Youthful Demographics: With 66% of the population under 35, India boasts a young and trend-conscious consumer base eager to embrace new styles and brands.

• Digital Surge: Increased internet penetration is accelerating fashion trends, boosting e-commerce, and providing brands with new ways to connect with consumers.

Domestic Brands Shine, International Brands Expand

A significant trend highlighted in the report is the growing preference for domestic brands among Indian consumers. Over 50% now prefer homegrown labels, a 35-percentage point increase from 2011. This preference is particularly strong in the non-luxury segment, where local brands specializing in traditional wear have a strong foothold.

However, international brands continue to hold sway in the luxury segment. Brands like Mango, Decathlon, and Bulgari are actively expanding their presence in India:

Case Study: Myntra - Bridging the Gap

E-commerce platforms are playing a vital role in the growth of India's fashion industry. Myntra, a leading Indian fashion e-commerce platform, is helping global brands reach millions of consumers.

"India is a unique country which has both sourcing as well as consumption capacity," says Nandita Sinha, CEO of Myntra. "This is where the value for international brands becomes extremely lucrative, where they can reach out to this large base of customers in a manner that taps into the supply potential of the country as well."

Myntra offers a variety of features to attract and engage consumers, including influencer-led content, personalized recommendations, and a premium shopping destination called Myntra Luxe.

Challenges and Opportunities

While the outlook is bright, international brands must navigate certain challenges:

• Limited high-quality retail real estate: "For the size of the country, there are limited high-quality tier-one malls," notes Sinha.

• Complex regional nuances: India's diverse cultural landscape requires brands to adapt their strategies to different regions and consumer preferences.

• High apparel import taxes: These taxes can make it more expensive for international brands to compete in the Indian market.

• Last-mile delivery hurdles: Ensuring smooth and efficient delivery to consumers across India's vast and varied geography can be challenging.

Despite these challenges, the rewards for those who succeed are significant. By understanding the nuances of the Indian market, forging strong local partnerships, and embracing the power of e-commerce, international brands can capitalize on India's immense potential and establish a strong presence in this dynamic and rapidly growing market.

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10 November 2024, Mumbai

A high-powered roadshow held in Mumbai on November 8, 2024, has ignited excitement for Bharat Tex 2025, India's premier textile exhibition. The event brought together industry leaders, government officials, and export promotion councils to showcase the strength of India's textile value chain and promote the upcoming expo.

Roop Rashi, Textile Commissioner of India, expressed her enthusiasm for the collaborative spirit driving Bharat Tex. She praised the industry's commitment to showcasing India as a one-stop shop for all things textile, embodying the "India that is Bharat" ethos. Rashi highlighted the government's role in ensuring a robust ecosystem for the industry, including access to raw materials and favorable market conditions.

Narendra Goenka, Chairman of Bharat Tex 2024 and AEPC, set the stage by emphasizing the vital role of the textile industry in India's economy. He highlighted its position as the second-largest employer and a significant contributor to GDP and export earnings. Goenka lauded the government's vision for Bharat Tex, aiming to rival major international textile shows and propel India towards its ambitious export target of $100 billion by 2030.

Bhadresh Dodhia, Chairman of MATEXIL, provided a detailed overview of Bharat Tex 2025, scheduled for February 14-17 at Pragati Maidan and February 12-15 at India Expo Mart. He outlined the comprehensive showcase planned across both venues, covering the entire textile value chain from fibre to fashion, including co-located shows on garment machinery and dyes & chemicals. Dodhia emphasized the organizers' focus on attracting top-tier international buyers and delivering impactful knowledge sessions.

Dr. Siddharth Rajagopal, Executive Director of TEXPROCIL, delved into the intricacies of Kasturi Cotton, an initiative to brand and elevate Indian cotton in the global market. He explained the rigorous quality checks, traceability through blockchain technology, and sustainability focus underpinning Kasturi Cotton. Rajagopal positioned Kasturi Cotton as a movement to redefine global perceptions of Indian cotton and ensure higher returns for farmers.

Navdeep S. Sodhi, Partner at Gherzi Textile Organization, provided insights into the mega trends shaping the textile and apparel industry. He identified three major waves of transformation: the phasing out of the Multi-Fibre Arrangement, the rise of China, and the current wave driven by sustainability, digitalization, and diversified sourcing. Sodhi emphasized the need for India to adapt to these trends and capitalize on the opportunities presented by shifting supply chains.

In his second presentation, Sodhi analysed the Indian textile and apparel industry's trajectory, outlining the investments and strategic pillars needed to achieve the government's ambitious growth targets. He stressed the importance of public-private partnerships, infrastructure development, and a supportive policy environment to propel India's textile industry to new heights.

The Mumbai roadshow served as a powerful platform to build momentum for Bharat Tex 2025. The event underscored the commitment of industry stakeholders and the government to position India as a global textile powerhouse. With its focus on innovation, sustainability, and collaboration, Bharat Tex 2025 is poised to be a landmark event for the Indian textile industry.

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12 November 2024, Mumbai

Renowned ethnic wear brand, Ethnix by Raymond has reached a significant milestone in its ongoing expansion by unveiling the brand’s latest store in Sargasan, Gandhinagar, Gujarat.

The new store aims to provide the brand’s customers in Ahmedabad a curated selection of Ethnix by Raymond’s finest offerings, blending traditional Indian elegance with contemporary style to meet the needs of today’s discerning fashion-conscious individuals.

Featuring an extensive range of attire that captures the essence of the modern Indian aesthetic, the store offers sherwanis, Indo-western ensembles, bandgalas, bundis, kurtas paired with churidars, stylish jackets, and classic suits.

Designed with the utmost attention to quality, each clothing piece at the store embodies a sophisticated blend of heritage and fashion-forward elements, making it an ideal choice for weddings, festivals, and celebratory events.

The store also offers a variety of thoughtfully curated accessories that complement the Ethnix by Raymond wardrobe, helping customers achieve a complete and polished look for any occasion.

The new store launch enables Ethnix by Raymond to strengthen its position as a go-to destination for high-quality ethnic wear, reflecting its commitment to making exceptional, stylish attire accessible to customers throughout India.

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11 November 2024, Mumbai

Men’s fashion brand Snitch has introduced an innovative feature called ‘Worth the Wait’ (WTW), letting style-savvy customers preview and wishlist upcoming pieces before their official launch. Starting every Thursday, new collections will appear under a ‘Dropping Soon’ tab in the Snitch app, allowing users to plan their purchases ahead of time.

With WTW, customers can secure exclusive access to the latest looks and prepare their wardrobes for each season’s must-haves. Snitch is also offering a special bonus: exclusive discounts available for the first six hours of every new launch, giving early shoppers the chance to grab fresh styles at reduced prices.

Siddharth Dungarwal, Founder and CEO of Snitch, shared that the brand aims to provide more than just trendy fashion by focusing on a seamless, rewarding shopping experience. Through WTW, Snitch offers its community first access to new styles and exclusive deals, adding value for loyal customers.

For a first look at WTW, customers can download or update the Snitch app and stay ahead in the world of men’s fashion.

Founded in 2020, Snitch is a D2C men’s fast fashion brand known for trend-driven styles with a global inspiration. Through its website, snitch.co.in, the brand offers bold, unconventional designs that redefine modern men's fashion.

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09 November 2024, Mumbai

Renowned brand Bewakoof unveiled its latest flagship store near Brigade Road in Bengaluru. The store offers an unbeatable combination of fashion, fun, and exclusive deals.

The store allows customers to explore Bewakoof's latest collections besides introducing them to enticing launch offers to make their shopping experience more pleasurable. The store offers a wide of products including clothing, accessories, etc.

A popular Indian online fashion brand, Bewakoof is known for its casual and trendy apparel. Founded in 2012, the brand focuses on providing affordable and fashionable clothing and accessories, especially targeting a younger demographic. Bewakoof's product lineup includes T-shirts, hoodies, dresses, joggers, and various types of casual wear, often with quirky designs, slogans, and pop culture references.

The brand has gained a reputation for its fun, creative marketing and wide-ranging collaborations with franchises for licensed merchandise featuring themes from movies, TV shows, etc. Emphasising on a strong online presence, Bewakoof also utilises social media and digital campaigns to connect with its audience.

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