The Knowledge Company,Indian Knowledge Company,Knowledge Company in India,Leading Management Consulting firms in India,Management Consulting firms in India,Indian Management Consulting firms,Indian Luxury Trend,Luxury Trend in India,India Luxury Trend 2006,Report on Indian Luxury Market,Luxury consumers,Market research report,Consumer Behavior in India,Indian Consumer Behavior,Chinese Consumer Behavior,Consumer Behavior in China,Consumer Behavior in Middle East,Consumer trend,Indian Consumer trend,Consumer trend in India,Consumer segment,Markets and Market sizing,Tracking bulletins of Trends,Reports on Shoppers and shopping behaviors,Consultancy service for marketing and promotional strategies,Consultancy service for Market entry strategies

Fashion Business:

In-Tune with Retail Evolution

India in recent years has been the focal point of continuous growth and development making it one of the fastest growing economies of the world. It is the 4 largest economy in terms of Purchasing Power Parity, after USA, China & Japan, and is rated among the top 10 FDI destinations.
The Indian consumer is evolving and driving retail growth due to increased consumption. Private consumption growth contributes to more than half of the GDP growth and is growing in double digit figures. Several businesses are reacting to this evolution positively, both through pull and push phenomenon.
Following a similar trend, the Indian textile and apparel industry is also experiencing rapid changes and growth. Apparel today has the largest share of the modern organised retail in India i.e. 20% of the current market of Rs. 56,000 crore and this is expected to grow at a constant rate of 20% over the next 4 years.
This report puts together some of the recent trends being witnessed by the textile and apparel industry. The central theme woven through these trends is the way the consumer at various income-levels is evolving, thereby ensuring that businesses are reacting in multiple ways.

•India is the second fastest growing major economy in the world

• Indian consumer likes a bargain: Rise of discount retailers

• Product brands turn lifestyle: Portfolio extensions towards ‘casualisation’ and 'accessorisation'

• Designers get organised: Reaching out to larger customer base

• International fashion eyes India: Making room for luxury

• Consumers become eco-friendly: Apparel brands think 'green'

• Kids & youth emulate their icons in everyday life: Growth of character licensing

• Apparel finds off beat avenues to retail

• Apparel brands attract investments from Retailers and Private Equity Firms

• Indian textile companies realising the fact: Wealth at the end of Chain

• Conclusion

Fashion industry is pushing to keep pace with the retail evolution witnessed in India

With such hectic activity on the consumer level, fashion businesses need funds for expansion and for investing into building their systems/processes – retailers as well as private equity funds are fuelling this growth by purchasing stakes in apparel brands. On the manufacturing front, companies are realising the need to forward/horizontally integrate their businesses and buying stakes/acqui r ing f ront end/ related businesses to get a better grip on the value chain.

This report digs deeper into each of these trends citing examples of thought leaders who have already moved in this direction. Within these trends there are signs of related 'mini trends' and/or 'contra trends', clearly visible in this industry. Each trend poses a question on what could be the possible path for companies going forward.

Below is a pictoral interpretation of trends that we are covering:

The 'mass consumer' segment is moving from tailored clothes to stitched apparel giving rise to discounted apparel stores/retailers. This is causing a shift from unbranded to branded apparel. The 'middle end consumers’, already exposed to brands is now looking to extend these brands into all aspects of their life. Brands are thereby becoming lifestyle brands instead of being product brands only. These consumers are also moving up the social ladder and wish to flaunt the change in stature by wearing affordable 'designer prêt wear'. This is prompting designers to introduce prêt lines and corporatise their lines to reach out to a larger audience. The 'high end consumer' who is exposed to international luxury brands, now demands them in his/her vicinity. Apparel businesses are realising this and tying up with international brands to retail in India. These consumers are also increasingly exposed to environmental issues and want to use eco-friendly products (including apparel) to do their bit for the society. Though this concept is at a very nascent stage in India, apparel companies are reacting by 'going green' and using natural fibers in some of their collections.

As all consumers, especially kids and the youth, are exposed to fashion and media, they wish to associate themselves with characters and icons. Picking on this trend, apparel companies are licensing these characters/icons for apparel & accessories to increase their customer base.

Additionally, as consumers face hectic lifestyles, they are looking for convenience in all aspects of life including shopping. Fashion businesses are taking the lead from here and taking on consumers at unconventional avenues of retailing like airports, metro stations, cafes, beauty saloons, etc.