14 August 2024, Mumbai

A dominant force in the Indian denim industry since its inception in 1987, Numero Uno is gearing up for significant expansion. The brand aims to grow its market share and revenue by 30-40 percent in the next two years, says Jaiwant S Dhingra, Director - Marketing and Business Development.

Traditionally strong in northern India, Numero Uno also plan to expand into South India with large-format stores, multi-brand outlets (MBOs), and exclusive brand stores (EBOs) in states like Andhra Pradesh, Karnataka, and Telangana. The brand is also tapping into the potential of Tier II and Tier III cities, with Bihar identified as an untapped market with substantial spending power.

In addition to geographical expansion, Numero Uno is exploring designer collaborations, particularly in the denim segment, signaling its intent to innovate and stay relevant in a rapidly evolving fashion landscape.

To align with its forward-looking strategy, Numero Uno recently underwent rebranding, a meticulous in-house effort that spanned six to eight months. While simple, the brand’s new logo encapsulates its ethos and resonates with both its heritage and its future vision. The rebranding process is being implemented gradually across the brand’s numerous stores, with three phases completed and two more to go.

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14 August 2024, Mumbai

India's MSME sector is the backbone of its burgeoning apparel industry, contributing significantly to the nation's GDP and employment. With a market estimated at Rs 140 billion ($17 billion) in FY23, the sector has been growing at a CAGR of around 12 per cent in the past few years. Experts predict this growth will continue, with the market projected to reach Rs 220 billion ($26 billion) by FY27.This sector, characterized by its agility, adaptability, and employment generation, is experiencing a period of robust growth, albeit with its share of challenges.

What is driving the market

Several factors are pushing up growth of the MSME apparel sector. Ever growing domestic consumption along with rising disposable incomes and urbanization is a major driver. Moreover, the growing preference for ethnic wear, coupled with the government's initiatives to promote 'Make in India,' has created a conducive environment for MSMEs.

The sector has also benefited from the growing popularity of e-commerce platforms, providing a wider reach for these businesses. The domestic market is booming for apparel, and MSMEs are well-positioned to capitalize on this opportunity. The government's focus on skill development and infrastructure is also creating a positive environment, say experts.

Despite the promising growth prospects, the MSME apparel sector faces several challenges. Access to finance, particularly for working capital and expansion, remains a significant hurdle. Fluctuations in raw material prices impact profitability. The sector also grapples with infrastructure bottlenecks, such as power shortages and inadequate transportation facilities. Additionally, the lack of skilled manpower and the rising cost of raw materials are impacting profitability. As a stakeholder points out MSMEs often face difficulties in securing loans from banks and financial institutions. This hampers their ability to scale up operations and invest in technology. And then there is growing global competition, especially from countries like Bangladesh and Vietnam, which hinder growth.

Integration with supply chains

The MSME apparel sector is deeply integrated into both domestic and global supply chains. Most large apparel brands rely on MSMEs for manufacturing, embroidery, and other value-added services. However, there is scope for further strengthening these linkages through better coordination and technology adoption.

The sector needs to focus on adopting advanced technologies like automation and AI to improve efficiency and reduce costs. This will help MSMEs become more competitive in the global market,says an industry analyst.

The Indian government has recognized the importance of the MSME apparel sector and has implemented several initiatives to support its growth. These include:

Financial assistance: Schemes like MUDRA and NSIC provide credit facilities to MSMEs.

Infrastructure development: Investments in textile parks and common facility centers are improving infrastructure.

Skill development: Programs are being implemented to enhance the skill set of the workforce.

The future of the MSME apparel sector is promising. With continued government support, technological advancements, and a focus on sustainability, the sector is poised to become a global leader.

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13 August 2024, Mumbai

Expanding its footprint in Karnataka, fashion and accessories brand Yousta has opened a new store in Hubli. This expansion coincides with the brand's latest collaboration celebrating the upcoming Deadpool & Wolverine movie.

Known for its value-focused apparel, Yousta continues to enhance its offline presence across India. The brand’s new Hubli store offers a wide range of men’s and women’s western wear, along with accessories and bags, catering to the fashion needs of the local market. The store opening is part of Yousta’s broader strategy to establish a strong physical presence in key markets across India. Yousta recently also launched stores in cities like Lucknow, Pune, Prayagraj, Mumbai, and Kolkata underscoring the brand’s rapid growth and commitment to reaching a wider audience.

Yousta has also launched a special clothing collection inspired by the Deadpool& Wolverine film. Launched in collaboration with Disney Consumer Products India, the collection features bold, graphic motifs from the Marvel universe. It blends franchise themes with a streetwear-inspired aesthetic and is designed to resonate with fans of both the movie and contemporary fashion trends.

Launched in August 2023 by Reliance Retail, Yousta targets Gen Z shoppers with its trend-driven, affordable clothing. The brand operates through a growing network of brick-and-mortar stores and also reaches customers via its direct-to-consumer e-commerce platform and various multi-brand online retailers.

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14 August 2024, Mumbai

Gearing up for a significant expansion, Raymond Lifestyle plans to add over 500 stores within the next three years. The company aims to achieve 15 per cent sales growth and a 20 per cent increase in EBITDA over the same period, notes GautamHariSinghania, Chairman and Managing Director, Raymond Ltd. The company is placing strong bets on its Ethnix brand while also venturing into new categories like innerwear and sleepwear.

Raymond plans to open 100 more stores of Ethnix by fiscal 2025,says Singhania. The brand plans to also expand its garmenting capacity by one-third, a move making it the third-largest suit maker globally once fully operational.

Discussing India’s consumption trends, Singhania highlights, outpacing most global economies, Indian economy is growing the rate of 7-8 per cent. The country is poised for exponential growth in the future, he affirms.

The recent crisis in Bangladesh can prove to be a significant opportunity for Indian companies, Singhania opines. Having invested Rs 200 crore into CAPEX and capacity expansion over the past two years, Raymond is now poised to capitalise on this situation, he adds.

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13 August 2024, Mumbai

Flipkart-owned fashion platform Myntra has appointed AmitMahajan as Vice President, FWD, Myntra’s new fashion discovery portal targeting Gen Z consumers.

In his new role, Mahajan will be involved in developing innovative merchandising strategies and expanding the product range for FWD. He joins Myntra from PT Map AktifAdiperkasaTbk, an Indonesia-based retailer specialising in sports, leisure, and kidswear, where he served as Assistant Vice President (AVP) of Merchandising.

This appointment aligns with Myntra’s broader strategy to attract Gen Z consumers, a demographic increasingly being targeted by various brands, particularly those in the direct-to-consumer (D2C) segment.

According to a joint report by Bain & Company and Myntra, the Gen Z consumer group represents 25 per cent of the e-lifestyle market, contributing $4 billion to the gross merchandise value (GMV) of the sector.

NanditaSinha, CEO, Myntranotes, the company has gained market share across all categories. It has been successful capturing new customer cohorts, whether it’s the 10 million Gen Z users or expanding its reach into Tier-II cities, which are now growing faster than metro and Tier-1 cities,she adds.

Despite facing stiff competition from rivals like Reliance's Ajio and Nykaa, Myntra has seen significant growth in the last 12-18 months.Data from market research firm Datum Intelligence shows,Myntra achieved gross sales of approximately $3.9 billion in 2023, while Ajio ended the year with more than $2 billion in sales. Myntra also closed 2023 with an annual transacting user base of 40 million.

The growing focus on Gen Z by brands and investors alike is evident in the D2C sector, with many emerging brands, particularly those in ethnic wear, drawing interest from venture investors due to their appeal to younger consumers.

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13 August 2024, Mumbai

Delhi-based V2 Retail aims to provide more apparel shopping options to its value-conscious consumers by establishing an online presence by the Q3, FY25, says AkashAgarwal, Director.

The company will use its five Delhi stores to fulfill online orders, with plans to expand to other cities once the model is perfected.

V2 Retail was founded by Ram Chandra Agarwal in 2011, following the sale of his first venture, Vishal Mega Mart, to private equity investor TPG and the Shriram Group for about Rs70 crore due to financial challenges. Using the proceeds, Agarwal built V2 Retail, which now boasts a market capitalization exceeding Rs3,300 crore.

The company's focus on offline operations has significantly boosted gross margins in the last six months. Its rapid product development and ability to quickly adapt to fashion trends have made it a strong player in the value-fashion category. The company’s shift to an omnichannel strategy is aimed at tapping into the growing demand in Tier II and II cities.

Driven by rising disposable incomes and growing consumer aspirations in smaller cities, India’s value-fashion segment is expanding rapidly. The industry is projected to grow at a CAGR of 6 per cent from 2020-25, with the organised sub-sector expected to outpace this at 13 per cent, according to MotilalOswal Financial Services.

While V2 Retail expects its online business to contribute only 1-5 per cent in the short term, it sees online retail as a natural extension of its offline operations, which attract 90,000 customers daily across 141 stores. Fulfilling online orders through physical stores will save the company about 70 per cent in logistics costs.

However, Agarwal acknowledges the challenges of entering e-commerce for products with low average selling prices. He emphasiseson the need to mature the channel before starting marketing efforts.

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14 August 2024, Mumbai

Ethnic wear brand Fashor plans to use the $5 million funds, acquired through a funding round led by early-stage venture capital firm Blume Ventures, to expand the brand’s omnichannel presence and boost its supply chain.

Founded by Vikram and PriyankaKankaria, Fashor offers a range of products available on its website, app, and popular fashion platforms such as Flipkart-owned Myntra, Reliance Ajio, and Nykaa Fashion. The startup plans to open over 100 exclusive brand stores in the coming years.

As per the estimates by industry executives, currently valued at Rs 30,000-35,000 crore, the branded or organised ethnic wear market in India is experiencing growing at the rate of 20-25 per cent.

Apurva Dixit, AVP Investments, Blume Ventures, states, Fashor is making quality fashion more accessible to women, bringing a fresh approach to ethnic wear. The founders have embedded a strong product DNA in Fashor, supported by a scalable supply chain, which allows them to offer competitive price points unmatched by national incumbents.

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13 August 2024, Mumbai

The euphoria of India’s post-pandemic ‘revenge shopping’ spree appears to be waning, as leading retail chains grapple with a prolonged slowdown in consumer spending. Key players like Reliance Retail, Shoppers Stop, and Spencer’s Retail are responding to the downturn by scaling back operations, incurring debt, and tightening their belts.

Store closures on the rise

The extended election season and scorching heatwaves of the past quarter have exacerbated an already sluggish consumption landscape that has persisted for over 18 months. Retailers, wstore closureho aggressively expanded their store networks to capitalize on the pent-up demand following lockdowns, are now forced to recalibrate their strategies.

Reliance Retail, India’s retail behemoth, offers a stark illustration of the industry’s predicament. The company closed 249 stores in the June quarter, a significant departure from the 470-800 new stores opened annually in the preceding three fiscal years. This marks the lowest net store additions in 15 quarters, signalling a cautious approach to expansion.

Spencer’s Retail has taken even more drastic measures, announcing its complete withdrawal from the North and South Indian markets. The closure of 49 stores in the NCR, Andhra Pradesh, and Telangana will result in a revenue loss of Rs 490 crore but is expected to bolster profitability.

Shoppers Stop, another major player, has also expressed concerns about the soft demand environment. CEO Kavindra Mishra indicated that the company may defer some store openings and has sought to raise Rs 100 crore to fund expansion amidst challenging conditions.

V-Mart Retail has joined the ranks of retailers retrenching, with 22 store closures in the first half of 2024. Devangshu Dutta, CEO of retail consulting firm Third Eyesight, attributes this trend to the rationalization of underperforming outlets in response to demand stress. As per him, demand forecasting is inherently imperfect due to the time lag between assessment and supply. Retailers are prioritizing the swift closure of unprofitable stores. While this was once seen as a prestige issue, it is now accepted as a matter of pure economics.

Sluggish consumption

The post-pandemic surge in consumer spending, pushed up by pent-up demand and a desire to make up for lost time, has clearly subsided. Reliance Retail’s June quarter results reflect this shift, with net profit increasing by a modest 4.6 per cent to Rs 2,549 crore and revenue growing by 6.6per cent to Rs 66,260 crore. These figures represent a deceleration compared to the previous quarter.

Reliance Retail CFO Dinesh Taluja acknowledged the tepid discretionary spending in categories like fashion and lifestyle. Spencer’s Retail CEO Anuj Singh emphasized the need to reduce overheads by closing unprofitable stores and streamlining operations. Shoppers Stop’s Mishra cited factors such as fewer wedding dates, the election season, heatwaves, and persistent inflation as contributors to the subdued demand.

The data is unequivocal. Many retail chains are closing more stores than they open. Pantaloons, Spencer’s Retail, Nature’s Basket, V-Mart Retail, W, Aurelia, and Titan Eye+ are among those that have experienced a higher rate of store closures in the March quarter.

As the Indian retail landscape evolves, the focus has shifted from rapid expansion to operational efficiency and profitability. The days of unbridled optimism about revenge shopping appear to be over, forcing retailers to adapt to a new reality characterized by cautious consumer spending and a more challenging business environment.

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13 August 2024, Mumbai

One of India’s fastest-growing fast fashion brands, Powerlook plans to expand its retail presence by opening new stores in Hyderabad, Chennai, Surat, Vadodara and Bengaluru by March 2025.

The brand has just open edits eighth flagship store in Phoenix Citadel Mall, Indore. The store offers a wide range of casual menswear, including t-shirts, shirts, jeans, cargo pants, festive wear. bottoms, vests, and co-ords.

With a focus on meeting the rising demands of young Indians, Powerlook has already established a strong presence in Mumbai and Pune. The brand has made a significant impact on high streets and in malls, offering a perfect blend of functionality and fashion, says RaghavPawar, Co-founder. Around 10 percent of the brand’s revenue comes from Madhya Pradesh (MP), and expanding to Indore is part of its Tier II growth strategy, driven by the high demand for its products in the city, he adds.

As fashion preferences shift, more people in Indore are embracing fast fashion brands, making it an ideal time for Powerlook to enter this vibrant market. The brand plans to establish a presence on the high street and open new locations across Madhya Pradesh in the coming years.

Amar Pawar, Co-founder and Chief Stylist, notes, by establishing roots in Indore, Powerlook aims to deliver exceptional fashion that resonates with the city’s vibrant spirit and align with the brand’s mission to empower today's youth.

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14 August 2024, Mumbai

Driven by a slowdown in its apparel sales growth, Indian retailer Nykaa reported a significantly lower-than-expected profit in Q1, FY25.

Listed as FSN E-Commerce Ventures (FSNE.NS), the e-commerce company’s consolidated net profit nearly tripled to Rs96.4 million ($1.2 million) during the quarter. However, this figure fell well short of analysts' average estimate of Rs226.8 million, according to LSEG data.

Like many other companies selling discretionary products, Nykaa faced challenges as consumers prioritised spending on essential items during the intense summer. The general elections, which occupied half of the April-June quarter, along with heatwaves, also contributed to a decline in store visits.

Revenue in Nykaa's fashion segment, which includes clothing, footwear, and handbags from brands like Cider, Steve Madden, and Superdown, declined to 21 per cent from 27 per cent in the previous quarter. Growth in the fashion business' gross merchandise value (GMV), which represents the total monetary value of orders, slowed to 15 per cent.

As a result, while Nykaa's total revenue increased by only 23 per cent to Rs17.46 billion. It fell short of analysts' average estimate of Rs17.58 billion.

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 13 August 2024, Mumbai

On Aug 06, 2024, designer duo Shantnu and Nikhil unveiled an exclusive collaboration with Grey Goose. The unveiling also included an exclusive showcase ofthe designer duo’s latest luxe collection, Studio Mix, with Bollywood star SidharthMalhotra as the showstopper.

The collection featured innovative designs, including a modern twist on the iconic martini glass and a portable bar adorned with the brands' insignia, symbolising the perfect marriage of fashion and fine spirits. The unveiling of this collection was accompanied by a couture show that emphasisedon the synergy between style and substance, where each element was meticulously crafted to create a cohesive and inspiring experience.

Besides expressing their excitement over the collaboration, Shantnu and Nikhil opined, the barware collection symbolizes the brand’s commitment to crafting experiences that are not only visually stunning but also deeply functional, embodying the sophistication and timeless appeal that both our brands represent.

Paying a tribute to the fashion of the 70s, the Studio Mix collection featured wide-legged trousers, short bangle-length jackets, and luxurious silks infused with intricate paisley prints and floral motifs, all nodding to Kashmir’s rich heritage. The collection's vintage menswear-inspired stripes added a touch of elegance, encapsulating the essence of an era where fashion was a bold statement.

The show opened with the legendary ZeenatAman, who embodied the fearless spirit of the 70s, and closed with the dashing SidharthMalhotra, representing the modern S&N man—confident, refined, and effortlessly stylish.

The Studio Mix collection was a symphony of design and functionality, embodying the shared ethos of luxury and craftsmanship between Shantnu and Nikhil and Grey Goose. The designs featured straight lines and bold forms, reflecting the brand's dedication to excellence. This genderless collection heralded a new era of inclusivity, offering effortless style and luxury to those who appreciate the finer things in life.

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13 August 2024, Mumbai

Metro Brands (MBL)has inked a deal with the New York-based brand New Era Capto distribute and sell the brand’s iconic headwear, apparel, and accessories throughout India. The company will sell these products through both physical retail stores and online platforms.

This partnership represents a significant milestone for MBL as it seeks to infuse sports culture into the Indian cap market. Nissan Joseph, CEO, Metro Brands, highlights, through this collaboration, the company aims to bring the best global brands to India to meet customers' athleisure needs. The partnership will make caps a must-have accessory in India, he adds.

With a robust network of over 800 stores across the nation and the upcoming launch of India’s first Foot Locker store, Metro Brands continues to strengthen its position in the Indian retail sector, offering a diverse selection of both domestic and international brands to its customers.

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