Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Executive summary
Despite recession Indian clothing and footwear market holds on
Indian clothing market managed to hold on despite the economic recession and
grew in high double digits for most of the clothing and footwear market
subsectors such as men' s wear, women' s wear and children' s wear. The domestic
demand for clothing and footwear market in India was helped by the impressive
growth in organised retailing that was fast expanding into Indian tier two
cities as well. The growth in clothing and footwear was driven by a young
population with higher disposable incomes residing in urban and semi-urban
India. Despite the recession impacting the Western countries, the Indian gross
domestic product (GDP) managed to grow around 6.5% in 2008 and this immensely
helped the clothing and footwear market to stay on growth trajectory.
Rising income levels and demand from young population helps market to grow
The clothing and footwear market in India benefited due to rising income
levels of the Indian middle class who are contributing to a very fast growing
Indian economy. Though towards the end of the year recession did hit, the
youth continued to shop as they had fewer liabilities and more disposable
incomes.
Women' s wear, children wear and accessories grows at fast pace
The most important factor driving the demand for clothing and accessories in
India was the demand for traditionally ignored sectors such as women' s wear,
children wear and clothing accessories. Demand for women and children wear
grew due to increased number of working woman who had financial independence
and demanded easy to carry clothes that fit well. A lot of existing brands
launched western style wear for working women in the review period as the
demand for western outfits for women grew at a fast pace in India. Demand for
children' s wear grew due to increased availability of children' s wear brands
and the impact of television advertising on children.
Increased retailing space helps private labels to dominate
The market for clothing and footwear remained fragmented with many players
operating and none having a market value share in double digits. But due to a
rise in retailing activities, the Indian clothing market witnessed
unprecedented growth for private labels. Private labels also grew as they
provided the people with the right price points and were cheaper than other
regular brands. Also, the recession urged people to look at best value deals
and private labels grew as they claimed to provide best quality at cheaper
prices. The retailing chains such as Pantaloons, Megamart, Spencers and
Lifestyle, all had their private labels selling alongside other branded
clothes in their stores.
Styling along quality and comfort to become important in forecast period
Factors such as rising per capita income, exposure to international trends,
rising retailing chains and increasingly financially independent women and an
exploding youth population are expected to drive the Indian clothing and
footwear market in the forecast period. The styling is likely to become
increasingly important as people will become fashion conscious and are likely
to be willing to pay more for good style. Quality and comfort are other two
factors that are likely to help marketers to hold its own in the increasingly
competitive Indian clothing and footwear market.
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