It's no more a girly thing. Fashion accessories are loved to be adorned by every age and gender. The powerful growth engine behind the success of fashion accessories market is the India's ever-growing middle class and their spending capacity on branded ac
As people love to accessorise their overall look for very occasion, now many prospective franchisees are pumping in more money in franchise businesses to make best of profits.
The battle is on as many top-notch players from brick and mortar and e-commerce space are looking to grab primacy in India's growing fashion accessories market. This market comprises of footwear, handbags, watches and jewellery. You know why, accessories industry is in demand these days? The only reason is that consumers' consumption patterns are altering each passing year, rise in working couples, spending power, no dearth of disposable income and the ever-growing aspiration for buying branded accessories has changed the game entirely. The demand for fashion accessories is swiftly growing as people want to look their best. Whereas, on the other side, brand owners are relying heavily on the proven concept of franchising to roll out big revenues as the market is promising a great potential.
Franchising in accessories sector is immensely enabling franchisors to add multiple outlets quickly. Experts feel that fashion accessories market has a huge potential in India. The market is opening up quickly as many homegrown and international brands are intensifying their expansion strategies by opening their brand's outlets in unexplored locations. They are also diversifying their product portfolio (mixed merchandise), paying more attention to store visuals to attract more footfalls, making use of avant-garde technology to bring swiftness by installing surveillance equipments and Point of Sale (POS) systems and tapping various product distribution channels including exclusive/ multi-brand stores, e-commerce and mobile apps for retailing their products. Take a quick look at the market share and top brands across segments covering Handbags, Footwear, Watches and jewellery to know more about the current market trends.
= Ever-changing consumption patterns of consumers
= Brands diversifying in Men's, Women's and Kids’ accessories
= Double Household Income
= Rising awareness and brand consciousness
= Readiness to buy branded products
= Increasing penetration of internet and mobile apps
= Indian consumer is no longer price sensitive
= Tier-II and III cities such as Jaipur, Nagpur, Ludhiana, Vadodara, Aurangabad, Kochi, etc., are emerging as the new 'hot spots' of consumption.
Liberty Shoes Ltd
In the footwear industry, Liberty Shoes Ltd rules the roost. Currently, the brand is running 500+ stores and is available online as well. There is no doubt that footwear industry is experiencing a huge competition from many international brands so as to give tough edge to competitors, Liberty believes in constant innovation and bringing technology into footwear to offer the best of fashion and comfort to the consumer and drive more consumption. “We keep on updating ourselves with the current consumer trends and bring out 5,000 fresh styles every year. Extensive research is conducted to analyze the taste and preferences of the consumers, especially youth. Our company plans to take on the competition by expanding its retail reach through company-owned and -operated outlets, as well as franchise stores. We plan to bring in a big change in merchandising, to make our products more fashionable, youthful, colourful, affordable and comfortable, because Indian consumers are price-conscious," says Anupam Bansal, Executive Director, Liberty Shoes Ltd.
India's footwear business is expected to be at around Rs 25,000 crore and the organised market share stands at round 15 % currently. The organised footwear industry is expected to grow 27% a year. “The Indian watch market is estimated at around 55 million units and valued at around Rs 4,700 crore.”
Reliance Footprint has a countrywide network of exclusive Footprint showrooms at more than 200 prime locations across 96 plus cities and 21 states in India. To its franchisees, Reliance Footprint offers two models. Model one is out right wherein the franchisee does the investment in both working capital and Capex. The second model is concessionaire model in which the franchisee invests in capital expansion whereas stock is held by company. The margins differ in both the models. Besides brick and mortar concept, online will be an additional channel of business for Reliance Footprint.
Founded in 1989 by Nina Lekhi, Baggit has grown from strength to strength with each passing year. Nina Lekhi, Founder, Baggit, says: “Baggit, being an early adopter and a visionary brand, we started our in-house e-commerce one and half year back. Today, although we are at a very nascent stage when it comes to in-house e-commerce, it still contributes 2-3 per cent of the business. However, Baggit is also available on all the leading online portals.
Overall online business contributes 12-13 per cent of Baggit's entire business, in near future it is expected to grow further. Being a futuristic brand, we may soon come up with a Baggit mobile application to reach out to our customers and build an easy shopping experience for them.” Adding further on tapping the preferred franchisees, she says: “As we belong to the women's fashion, we encourage women entrepreneurs, who understand the colours and trends, although we are not bias about Men.” For Baggit, the preferred retail format for expansion is Company Owned Franchisee Operated (COFO).
Fastrack was launched in 1998 and became an independent urban youth brand in 2005. Since then, it has carved a niche for itself with watches and sunglasses that are refreshingly different and affordable. Currently, the brand is operating a mix of franchise and company stores. By December 2014, the brand will be adding 25 more stores and end this year with 175 stores in its network.
The handbag market is expected to grow at a CAGR of 17.1% from Financial Year 2013 to 2018. The report confirms that online handbag sales have showcased an increasing trend by growing at a CAGR of 43.1% from FY 2008- FY 2013.
Source: Ken Research
Founded in 1978 by Dilip Kapur, Hidesign is a lifestyle group, which re-defined the vision of luxury in India through an ethos of high quality, ecological values and personalised service. Narresh Mehtta, Chief Operating Officer, Hidesign, says: “The combined sales of all major brands and including private labels in modern retail would be approx. Rs. 1,000 cr per annum. The unbranded and unorganised market would be another Rs 1,000 cr. This number is for leather and non-leather based handbags. The potential is huge.” On providing franchise opportunity, he says: “We are open to franchising proposals from good retailers in the metros and class II cities.”
Swarovski is a leading producer of precision-cut crystal for fashion, jewellery and more recently lighting, architecture and interiors. The brand has a global reach with a presence in over 170 countries and a turnover of over 3 billion Euros in 2013. Currently, Swarovski sells its products through 34 franchise stores operated by various partners across India. The brand believes in partnering with those who have a prior experience in the luxury and premium sector with the international brands.
World of Titan
World of Titan’ is the watch brand of Titan Company. Titan brought a paradigm shift in the Indian watch market, offering quartz technology with international styling. The Titan portfolio owns over 60 per cent of the domestic market share in the organised watch market. Currently, World of Titan has over 417 outlets across India. The brand regularly introduces exciting new collections, which connect with the various facets of deep-rooted human yearnings for self-expression.
Tanishq is a flagship line of jewellery which has a pan India presence with 166 exclusive stores. With retail sales of over Rs 10000 crore last financial year, Tanishq has delivered value to its customers and shareholders. The brand offers a premium range of jewellery, studded with diamonds or coloured gems in 18 kt gold, 22 kt pure gold and platinum jewellery. It has built for itself the envious reputation of being the only jewellery brand in the country that strives to understand the Indian woman and provide her with jewellery that meets her traditional and contemporary aspirations and desires.