In a series of articles, DFU looks at how over the years India’s Large Format Retailers (LFR) have performed and are strategizing future success, with new challenges and New Age consumers.

From value giant to fashion champion, Max Fashion’s transition

Max Fashion, the ubiquitous Indian apparel retailer synonymous with affordability and convenience, is weaving a new thread into its narrative. No longer just a destination for budget-conscious shoppers, Max is steadily transforming into a fashion powerhouse, catering to a wider audience and reimagining its image for the future. Let's unravel the threads of Max's transformation, analyzing its current strategies, future plans, and how it's redefining its appeal for the discerning Indian consumer.

Changing consumer preferences and retail landscape

In the ever-changing market dynamics, consumers are increasingly making fashion-forward choices, going beyond basic styles, focusing on affordable yet stylish options. The growth of online shopping has made it imperative for retailers/brands to adopt an omnichannel approach, requiring seamless blending of physical and digital retail experiences. Moreover, the growing disposable incomes in Tier II and III cities are have generated opportunities for expansion, prompting retailers to explore and tap into these emerging markets. The retail landscape is undergoing a significant transformation as it adapts to these key market reshaping factors.

Founded in 2004 in Dubai, Max Fashion's initial mission was to provide stylish clothing at accessible prices. It quickly gained popularity in the region, with its wide range of trendy apparel, footwear, and accessories catering to all ages and tastes. In 2006, Max set its sights on India, a market with immense potential for its value-driven proposition. The company entered through a joint venture with Landmark Group, establishing its first store in Indore. Success followed swiftly, with Max Fashion expanding its reach to over 200 cities across the country within a decade.

Innovative strategies redefining fashion landscape

Max is establishing itself as a formidable force in the retail arena with a range of strategic initiatives. One of Max Fashion's key strengths is its ability to cater to diverse tastes and preferences. With dedicated sections for men, women, and children, the brand offers everything from casual everyday wear to occasion-specific outfits. Its collections are constantly updated with the latest trends, ensuring that fashion-conscious shoppers always find something new and exciting.

As a private label powerhouse, brands like 'Max' and 'A&F' making a mark by offering trendy styles at competitive prices, challenging contenders in the same competitive space. The brand's commitment to a fashion upgrade was evident through its collections like 'Streetwear Collective' and strategic collaborations with designers, providing fashion-conscious shoppers with on-trend options without compromising affordability.

Max further solidified its position as an omnichannel player, integrating seamless app experiences, click-and-collect options, and personalized recommendations through a robust loyalty program, ensuring a unified and enhanced shopping experience for customers. With an eye on Tier II and III cities, Max strategically expanded its footprint, with over 899 outlets, and capitalizing on the surging demand for trendy fashion beyond the confines of metros.

Financial Performance

(Source: Company annual reports, industry research)

Growth strategies                             

Max is charting its future course with a multi-faceted approach. Diversifying into new categories like footwear and activewear, the brand aims to meet evolving consumer needs and compete effectively with established players. The emphasis is on strengthening online presence with a comprehensive strategy, encompassing heightened social media engagement, targeted advertising, and personalized recommendations to drive online sales.

Max's commitment to customer-centric initiatives is evident with the introduction of virtual stylists, in-store events, and rewards within their loyalty program, creating a personalized shopping experience that fosters customer loyalty. Max's recent successful collaboration with influencer Kusha Kapila for a capsule collection is one such example. This collaboration not only showcased Max's dedication to trendy designs but also demonstrated its ability to resonate with fashion-forward consumers, resulting in robust sales and positive customer feedback. Max's forward-thinking initiatives position the brand at the forefront of the evolving retail landscape.

Challenges and opportunities

Max faces competition from online fashion players like Myntra and Ajio, as well as from other value-focused players. However, its strong private label portfolio, strategic expansion plans, and focus on online integration offer promising opportunities for future growth.

Max is no longer just the "cheap and cheerful" option. It's weaving a new identity as a fashion-conscious, omnichannel retailer catering to a wider audience. By diversifying its offerings, focusing on personalized experiences, and expanding its reach, Max is aiming to become a one-stop fashion destination for value-seeking and trend-driven shoppers alike. Whether it can become the undisputed leader in the Indian apparel retail landscape remains to be seen, but its transformation and focus on adapting to changing preferences is a story worth watching.

A lingerie brand synonymous with comfort and style, Enamor is shaking up the bridal landscape with its new campaign. Championing individuality, the #FabulousMyWay campaign urges brides to write their own fashion narrative. Shekhar Tewari, Chief Category & Operations Officer, Modernik Lifestyle, Enamor’s parent company, describes the campaign as a promise to embrace your unique essence and unapologetically flaunt it on your special day.

Drawing inspiration from romantic cities around the world, Enamor weaves its essence into each lingerie collection. Transcending borders, the bridal collection mirrors the spirit of a chosen wedding destination. The Somerset Song Collection captures the essence of a romantic English countryside with its soft, floral laces.

The Jordan Collection draws inspiration from the ancient wonders and architecture of Jordan. This collection is enriched with versatile must-haves, combining fashion-forward bras for grand occasions, stylish basics for everyday wear, an elegant athleisure collection for the airport-ready look, and comfortable loungewear for unwinding at the end of the day.

Recognising the individuality of each bride, the brand offers a spectrum of options to cater to diverse body types and preferences. It offers padded and wired bras to those seeking a lifted silhouette, while non-padded and non-wired styles provide comfort and support for different physiques.

Enamor also embraces the digital platform to foster seamless interaction with consumers. The brand sets its sights on the world stage by establishing a foothold in the US and Canada. It is also negotiating with potential partners in the Middle East and South Asia.

18 January 2024, Mumbai

India's clothing and footwear sector continued its subdued inflationary trend in December, clocking in at a Y-o-Y growth rate of 3.61 percent, according to provisional data released by the National Statistical Office (NSO). This marks a slight increase from the 3.55 percent seen in November 2023.

Data point

The consumer price index (CPI) for the sector stood at 189.6 in December 2023, compared to 183 in December 2022. Diving deeper, the clothing sub-sector saw a slightly higher inflation rate of 3.75 percent, while footwear inflation came in at 3.05 percent.

Analytics

As an analyst points out, the relatively stable prices in the clothing and footwear sector offer some relief against the backdrop of a higher overall inflation rate of 5.69 percent in December. This trend could be attributed to factors such as lower input costs for raw materials and a competitive retail landscape.

While the overall inflation rate remains above the Reserve Bank of India's (RBI) target range of 2-4 percent, the moderate increase in clothing and footwear prices suggests that inflationary pressures in this sector may be easing.

Elbowroom; This could potentially give the RBI more room to maneuver in terms of setting its monetary policy in the coming months.

Caution is the watchword

However, experts caution against complacency. Global factors such as rising crude oil prices and potential supply chain disruptions due to geopolitical tensions could still pose upside risks to inflation in the medium term.

The RBI will likely continue to monitor the situation closely and adjust its policies as needed.

Latest Textile Events

Ethnic wear player Vedant Fashions has expanded its store network featuring its brands Manyavar and Mohey in California. The company opened its seventh store in the US and 17th in the international market at Paseo Padre Pkwy, Fremont, California.
Launched in 2002 by Ravi Modi, ethnic wear brand Manyavar is parented by a 24-year-old company Vedant Fashions Ltd. The company made its debut into women’s wear with the launch of Mohey in 2015.
Apart from Manyavar and Mohey, Vedant Fashions also owns other fashion brands like Manthan, Twamev and Mebav. The company has over 600 stores including more than 80 flagship stores and 17 international stores across over 240 cities in five countries—India, UAE, Canada, the US and UK.

In the bustling world of luxury fashion, where customer experience reigns supreme, Paul & Shark has just made a splash. The iconic Italian brand, known for its sleek nautical-inspired designs, has dived headfirst into XY Retail's unified commerce platform, replacing its existing system with XY's 5-in-1 solution.

XY's platform integrates POS, OMS, Clientele, and global fiscal compliance into a single, intuitive interface. This streamlined system lets Paul & Shark navigate the complexities of omnichannel retail with ease, managing orders, inventory, and customer relationships seamlessly across online and physical stores.

Built for speed and flexibility, XY's cloud-native platform allows Paul & Shark to adapt to the ever-shifting tides of the fashion world. With rapid implementation and a customised approach, XY tailors the platform to fit Paul & Shark's unique needs, ensuring a smooth onboard experience.

Alessio di Vietro, Chief Information Officer, Paul & Shark points out, XY's native mobile support empowers staff with sleek, handheld tools, transforming them into customer experience concierges. The platform’s reach extends far beyond Paul & Shark. From Emporio Armani's elegant boutiques to Damiani's glittering jewel boxes, XY's platform empowers global fashion brands to navigate the retail seas with confidence. With its focus on data-driven insights and sustainability, XY is charting a course towards a future where luxury retail is not just about opulence, but about experiences that are as unique and unforgettable as the ocean itself.

Entering into India’s activewear market, Gulabdas Group has launched its premium activewear brand ‘Strch’.

Catering equally to both men and women, Strch activewear will offer a diverse range of joggers, polo shirts, crop tops, sports bras, shorts, skirts, etc.

Prithvi Bhagat, Founder CEO, Strch, says, “Premium activewear has always been an exception in India despite it being a hotbed for fashion consumers. Strch will cater to this burgeoning demand by providing high-quality, homegrown active wear. The brand will offer authentic, fashionably relevant and comfortable activewear to consumers.”

Strch will retail its activewear range exclusively on the brand’s online store. 

In the bustling world of Indian e-commerce, a new player is targeting the heart of the household: the modern-day mother. A D2C brand born in 2023, Includ is making a mark with kidswear, catering to mothers who call the shots.

With experience in the investment and fashion worlds, Ashwin Rastogi, Founder, saw a gap in the market. Rastogi believes, mothers, the silent decision-makers, were often overlooked, their preferences relegated to generic, mass-produced options. Includ aimed to change that and Include was launched.

Includ initially offered an array of over 5,500 styles for children aged 2 to 14. From trendy outfits to adorable accessories, the brand catered to every whim and fancy. Understanding the power of social media, Includ crafted its offerings with Instagram-worthy flair, tapping into the modern mom's desire for curated choices that reflect her own style and aspirations.

The strategy paid off with Includ quickly gaining traction. The 25-member team clocked sales of up to Rs 2 crore a month. But Rastogi knew the real challenge lay ahead. The kidswear market was a lion's den, with established players like FirstCry. What worked for Include was its affordable prices starting at Rs 449, making quality fashion accessible to all.

But variety is the key to unlocking lasting success, believes Rastogi. He envisions a future where Includ wouldn't just be a kidswear haven, but a one-stop shop for the modern family. Womenswear and home products are on the horizon, each piece carefully curated to reflect the evolving tastes of the modern woman.

The future of Includ looks bright. With plans to join a major marketplace, secure fresh funding, and expand internationally, the brand is poised to leave its mark.

Outdoor clothing and gear brand Gokyo has launched an exclusive collection of women’s trekking pants and apparel that depart from the one-size-fits-all approach in the outdoor clothing industry, especially for fittings and colors in trekking pants.

Recognisinf the distinct body shapes and preferences of Indian women and designs, Gokyo designs each piece to suit individual preferences. Combining technical details with an Indian designs, the collection resonates with the fashion preferences Indian women.

The trekking pants in the collection are designed for the rough terrains of the Indian Indian subcontinent. Durable and flexible, these pants are made with breathable fabrics to adapt to the climate conditions encountered during treks in the Himalayas, Western Ghats, and other landscapes. The collections are designed according to their product categories, Explorer for warm weather, Alpine for mild cold conditions, and Sherpa for extreme cold.