Apparel to lead India’s value retail market growth
11 January 2024, Mumbai
The apparel category is expected to lead the growth in India’s value retail market, which is likely to surge to $170 billion by 2026 from $111 billion in FY23.
As per a report by Wazir Advisors, India’s value retail market is expected to grow at a 15 percent CAGR from 2023 to 2026.
Inclusivity; In the last few years, the market has witnessed the entry of many large retailers, including Reliance Retail’s Yousta, ABFRL’s Style-Up and Shoppers Stop’s InTune. These retailers have been focusing on affordable clothing, footwear, and accessories.
Economic Growth and Rural Crisis in India
However, a major portion of the value retail market continues to be dominated by unorganised players, who held 79 percent of the market share in 2023.
The market is limited to Tier III or smaller cities and towns. The average transaction value for value retailers typically ranges from Rs 500 to Rs 2,500, with average basket sizes of 2.5 to 7 items.
The growth in this market is mainly driven by digital platforms like Amazon, Flipkart, and Snapdeal.
