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The Indian economy is one of the fastest-growing economies in the world. India is expected to be in the top 5 global economies by 2020. A sustained real GDP growth of over 6 percent since FY 1991, has led to a fundamental transformation of the Indian economy. India has become the fastest-growing G20 economy since FY 2015, with growth rates hovering around 7 percent. India’s economy is projected to expand by 7.3 percent and 7.4 percent in FY 2019 and FY 2020, respectively, benefiting from strong private consumption.

The Indian textile and apparel industry shares 5 percent in the global T&A trade and is the second-largest manufacturer and exporter in the world after China. The T&A sector contributes 7 percent of industry output in value terms and 2 percent to the country’s GDP. The sector is one of the largest sources of employment in the country and provides direct employment to over 45 million people.

The sector stood for 12.4 percent of total exports in 2017-18, EU-28 and USA being the major T&A export destinations for the country have a total weightage of 47 percent of total T&A export. Indian domestic apparel market is estimated to be US$ 54 billion in 2018 and will grow at a CAGR of 8.1 percent in the next decade and to reach US$ 118 billion in 2028.

The Indian apparel industry, which is the second-largest contributor in the retail industry after food and grocery, is seeing some major shifts. The entry of international brands, changes in preferences from non-branded to branded, the fast-growing economy, the large young consuming population in the country has made India a highly lucrative market. India has the world’s largest youth population, which is becoming fashion conscious owing to mass media and social media penetration. This has opened unprecedented retail market opportunities.

The promising growth rate of 8.1 percent makes the Indian fashion industry prominent in the retail sector.

With a GDP growth rate of 7.2 percent, India has an edge over developed markets of the US and EU, which are growing at ~2 percent and ~2.5 percent each. The developing nations will drive future apparel consumption and India is one of the major consuming nations. Favourable trade policies, increased penetration of organised retail among other factors contribute in making the Indian fashion industry attractive for investors.

INDIAN WINTER WEAR MARKET

India is known for its diversity, in terms of both culture and weather. Winter in India lasts for different durationin different regions with North India witnessing winters for three to four months. The Indian winter wear market was estimated to be US$ 2.7 billion in 2018 and is expected to grow at a rate of 4 percent by 2028 and become a US$ 3.95 billion market. The Indian winter wear market shares 5 percent of the total Indian apparel market. The market includes winter wear in four main categories—men’s wear, women’s wear, boys and girls.

The men’s wear segment dominates the Indian winter wear market and contributed 50 percent to the total sector in 2018. The segment is expected to be a US$ 1.85 billion sector by 2028. The women’s category stands for 20 percent of the total winter wear segment and is expected to grow at a rate of 3.5 percent by 2028. Women’s wear is the second biggest segment in the Indian winter wear market.

Kid’s winter wear segment was estimated at US$ 0.79 billion in 2018. Boy’s and girl’s wear contributes to a total of 29 percent to the Indian winter wear market and is expected to be 33 percent of the total Indian winter wear market by 2028. In winter wear segment, kids wear category is expected to grow at a higher pace as compared to women’s and men’s category.

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Salman Noorani further illustrates this point saying, “Our brands are available online only through our own web store www.zodiaconline.com We started this channel when e-commerce was at a nascent stage in India and today, we are happy with the results we are getting.”

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On the other side, the established national and international brands will continue to strengthen their position in super premium, premium and mid-price segments of the market; many of them are expected to extend their product offering to economy segment of smaller cities.

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Taking about the size of the Indian market, Roy says, “The current size of the Indian sportswear industry is pegged at around Rs 4,000 crore and is experiencing a 10-15 percent YoY growth. Growing interest in fitness and overall orientation around healthy living is fast changing the lifestyle of people in India. Added to this, Indians are taking to sports both professionally and as recreation more than ever. Digitalisation and evolution of social media continues to propel the adoption of global trends around fitness, innovative designs and latest products, fueling our growth in products for Sports performance.”

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Justifying the rental model, he explains, “We’ve grown so accustomed to fast-fashion that we tend to overlook its hazardous effect on the environment. The rental business allows one to keep up with fast-fashion without causing much environmental damage.”

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According to a research report published by Global Industry Analysts Inc., the global market for Sports and Fitness Clothing is projected to reach US$231.7 billion by 2024. The research also indicates that technological developments designed to improve comfort and performance has also led to the growth in sales of sports apparel. The report points out that the Asia-Pacific region is expected to be fastest growing region, with a CAGR of 6.9 percent over the forecast period, with countries like India and Thailand acting as the epicentre of this whole fashion revolution.

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