Discounting – increasingly common to drive apparel sales
Discounting became more common during the review period. Discounts are now offered throughout the year whereas in the past they were limited to festive seasons. Discounts and promotional offers by brands have increased the footfall in retail outlets. Brands are also concentrating on clearing their stock backlog created during/in the aftermath of the recession by running end of season sales. The ‘buy 2 get 1 free offer’ and ‘up to 50% off’ on all collections are the most common discount offers across India. Discounting has also become common in the apparel market due to the growth of internet retailing sites such as myntra.com, snapdeal.com and jabong.com
Middle-income groups are potential customers
Leading apparel manufacturers are now concentrating on mass brands, as the majority of the Indian population fall under the middle and lower income groups. Manufacturers have launched several brands specifically targeting these income groups. Raymond Ltd launched the Markers brand in 2011 that has become quite popular among its intended consumer segment. Arvind Ltd’s Excalibur brand also increased sales, targeting the middle-income group. International brands are also increasingly appealing to middle-income consumers. Players such as Marks and Spencer also launched a couple of collections to cater to the middle-income group.
India is the next destination for investment.
In 2011 and 2012 the central government of India finalised policies that will allow 100% foreign direct investment in single brand retailing and 51% in multi-brand retailing, respectively. This has created an opportunity for foreign brands to concentrate on the Indian market. Global brands such as H&M, Uniqlo, Prada and many more have already made plans to invest in India and open a couple of stores in the coming years. The existing global brands are also expanding their stores by investing more money and some companies are changing their joint venture partnerships to increase their presence. For example, Armani has changed its partner from DLF to Genesis Luxury.
Modern retailing driving sales of apparel
Shopping centres across India have provided a better shopping experience to customers in recent years. The increasing number of shopping malls across India and the penetration of such in smaller cities around India, like Mysore, Rajkot, Lucked and many more, increased the presence of branded apparel across India. The shopping centres have more brands in various price segments and customers benefit from the same. Developing modern retail channels, such as supermarkets and hypermarkets, are also increasing their share of distribution stealing share from apparel specialist retailers.
Diversification of portfolios by leading players has a bright future
Leading apparel manufacturers are diversifying their product ranges to have a greater advantage over the other brands, especially with global brands entering India through foreign direct investment. Indian players Aditya Birla Nuvo Ltd has already launched some clothing accessories brands under its leading brands in India, such as Van Heusen, Peter England, Allen Solly and many more. Arvind Ltd has also launched accessories and women’s wear ranges under its leading brands. The same trend has been followed by other players during the review period.
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Discover the latest market trends and uncover sources of future market growth for the Apparel and Footwear industry in India with research from Euromonitor's team of in-country analysts.
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The Apparel and Footwear in India market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
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- What are the major brands in India?
- How dynamic is the growth of clothing and footwear internet sales?
- What is the performance of women’s clothing vs men’s clothing?
- What % of clothing and footwear sales goes through grocery retailers?
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This industry report originates from Passport, our Clothing and Footwear market research database.