The fashion accessories’ market in India is a highly potent and rewarding segment, owing to the rising and fast changing demands of millennials.
Fashion accessories have only recently been introduced into the formal retail experience. With a long history in the unorganised un-branded market, ranging from street vendors to select small stores, fashion accessories are now also available in curated collections through luxury boutiques, high street brands, international accessories’ chains, international brands with accessories’ sections and multi-brand outlets. Accessories are no longer need-based purchases but give customers the opportunity to make a fashion statement. The growing desire among young urban customers to express their uniqueness has set the stage for the entrance of many international as well as home-grown Indian companies into the fast evolving world of fashion accessories.
The fashion accessories’ market of India was observed at US$ 3.4 billion in 2014 and is estimated to grow at CAGR of 12 per cent to reach US$ 10.6 billion by 2024. Unorganised players to this day dominate this market; however luxury international bands like Da Milano, Louis Vuitton, Hidesign are now rushing to fulfill the growing demands of this segment.
Millenials Causing The Surging Demand
The main target customer for fashion accessories in India is the country’s millennial population, which are the people that fall under the range of 18-35 – the largest demographic in the country and those with the greatest spending power. They have the greatest spending power and spend a large percentage of their income on consumer products. India is well ahead of the global average percentage of the population within the millennial bracket, and this demographics’ presence is showing its effect in the Indian retail market as well.
The effects of globalisation have influenced the tastes and consumption patterns of the millennial, through TV shows, movies and of course, the social media. With their high disposable income and need to redefine themselves constantly, the millennial have championed the rise of fashion accessories into the organised retail market and their assured diversity. For millennials to adorn their outfit with occasion-specific fashion jewellery or scarves, bags and stoles is a trend that is here to stay the long run, as consumers find their individualistic style through their outfits and accessories.
Accessorise Your Business
The minimum area requirement of a fashion accessories outlet remains between 500-700 sq ft. as it is as of yet a growing requirement in India. The initial investment hence is also on the low end, falling at around 25-30 lakhs, with up to 10-15 lakhs being allocated to fast-moving inventory. The average amount for interiors, furniture and IT falls at 7-10 lakhs, both being important aspects in attracting the targeted consumers. A store of this size can make do with 3-4 employees, whose average salaries would amount to 80,000 to 1 lakhs in a metro or tier I city. The miscellaneous expenses of a store of this kind would range from 60-70,000 a month.
The success of this business depends purely on how well your business is capable of keeping up with the millennials’ changing trends. However, keeping these factors in mind, a fashion accessories’ business should be able to break-even in less than a year.