Value Retail reshapes India’s retail industry, drives consumer demand
The Indian retail industry is undergoing a major transformation with the rapid rise of value retail, a segment catering to consumers seeking affordability without compromising style and quality. This evolution was a focal point at Bharat Tex 2025, where the Clothing Manufacturers Association of India (CMAI) hosted an insightful panel discussion titled ‘Value Retail: Consumer’s Delight, Industry’s Opportunity.’
Industry experts weigh in
Moderated by B S Nagesh, Chairman of Shoppers Stop & Founder of Trrain, the panel featured key voices from the retail sector, including P Venkatesalu, CEO & Executive Director of Trent Ltd; Rakesh Biyani, Mentor at Nexon Omniverse Ltd; Ram Chandra Agarwal, Chairman & MD of V2 Retail Ltd; Rajesh Jain, MD & CEO of Sports and Leisure Apparel Ltd (Lacoste India); Vedant Modi, Chief Revenue Officer of Vedant Fashions Ltd (Manyavar); and Suman Saha, CXO of Myntra.
Value Retail: Beyond affordability
The discussion highlighted that value retail is no longer just about low prices it is about offering aspirational products at affordable price points. Consumer demand for fashion and lifestyle products is soaring in both urban and non-urban markets, driven by increasing disposable income, digital awareness, and shifting expectations.
Ram Chandra Agarwal emphasized the immense potential in value fashion, stating that India’s biggest fashion retail company could be a value fashion retail company. He noted that the opportunity is limitless, and success will depend on supply chain efficiency, product innovation, and operational excellence.
Social media & changing consumer aspirations
Panellists agreed that social media is reshaping consumer behavior, making fashion trends more accessible.
Suman Saha highlighted how digital platforms have accelerated trend adoption, stating that earlier, fashion trends trickled down over time, but now, virality on social media dictates demand overnight. He pointed to the example of ‘Farewell Sarees’ becoming a national trend instantly and stressed that consumers today seek affordability, trendiness, and relevance, making it essential for brands to be agile in responding to evolving needs.
Tier 2 & 3 Cities: The new growth frontier
While metro cities continue to lead sales, Tier 2 and Tier 3 cities are witnessing an unprecedented retail boom. Vedant Modi shared that one of Manyavar’s largest stores is in Gorakhpur, spanning 25,000 square feet. He noted that smaller cities have immense spending power, especially during weddings, and instead of opening multiple small stores, the company is focusing on larger, experience-driven retail formats to cater to these high-demand markets.
Online vs Offline: Finding the right balance
While e-commerce is growing rapidly, offline retail remains crucial, particularly for categories requiring tactile experiences.
P Venkatesalu stressed the importance of a strategic omnichannel approach, explaining that modern consumers shop across multiple formats. He noted that while Gen Z is digital-first, Zudio has consciously chosen to remain offline, emphasizing that success lies in making clear strategic choices rather than blindly following trends.
Rajesh Jain redefined the concept of value in retail, stating that value isn’t just about price. He explained that a customer buying a Rs 3,999 Lacoste polo wants the same satisfaction as someone buying a Rs 399 polo and affirmed that the same consumer who wears a Lacoste polo when going out with friends may feel comfortable wearing a budget-friendly brand at home.
Value retail’s role in job creation
With modern retail expanding into more than 1,000 cities, value retail has the potential to create over 30 million jobs.
Rakesh Biyani highlighted India’s unique advantage as both a production and consumption hub and stressed that strengthening supply chains and large-scale manufacturing will be key to sustainable growth.
The future of value retail
The discussion at Bharat Tex 2025 reinforced that value retail is evolving beyond affordability. Key takeaways included that value retail is about aspirational yet affordable products, Tier 2 and Tier 3 cities are driving significant growth, social media is accelerating trend adoption, omnichannel retail must be strategically executed, and retail expansion will create millions of jobs.
As panellists concluded, they agreed that Indian consumers cannot be boxed into a single category. Their buying decisions vary based on occasion, affordability, and trend preferences. The next decade will see brands expanding into untapped regions, refining omnichannel strategies, and redefining customer experiences to stay ahead in India’s dynamic retail market.
