From a category to complement apparel, accessories have gone mainstream, bringing in considerable amount of capital and a huge contribution to the fashion industry
The fashion accessories market in India, which is estimated to be $4.5 billion, has shifted its base from functionality to being a prime attraction. Growing at a CAGR of 12 per cent, the market is expected to reach $6 billion by 2019. “There has been a paradigm shift in the industry and an accessory is no longer a necessity but an expression to one’s personality. It’s getting more personalized in nature as retailers now customize their product offering and brand assortments suiting to their affluent customers,” says Sahil Malik, MD, Da Milano.
The market is dominated by bags, belts and wallets, which holds around 60 per cent share, while 27 per cent share is captured by socks, hankies, scarves, caps, gloves, mufflers, etc. And the rest 13 per cent is dedicated to hair accessories, tie pins, cuff links, etc.
Business Abroad
International markets including Dubai, Middle East are becoming a lucrative opportunity for such brands. Leather goods maker Hidesign, which is present in the US, the UK and a few European countries, is expanding its business in Africa by setting up a store in Nairobi, Kenya in July and is also planning to open two stores in Dubai this September. “In the emerging markets, sales patterns are similar to the Indian market, where women’s products account for 60 per cent. Globally prices of these products are double than that in India,” says Dilip Kapur, President, Hidesign.
On the other side, Handbag and accessories brand Baggit is entering the Sri Lankan market soon. “We are already in the UK and are also in advanced discussion for the Africa and Dubai markets. I would love to see Baggit as a leading international fashion brand,” says Nina Lekhi, MD & Chief Design Curator, Baggit.
On the same time, Da Milano is also expanding its footprints in the other international markets, including South East Asia, the Middle East and the UK. “The Middle East is a fast growing, emerging market and it holds an immense growth opportunity. We would be opening 10 more stores in the next 15 months,” says Malik.
Targeting Smaller Towns
The leading players in the segment are developing alternate models and tweaking their offerings and price points for tier II & III consumers. For this, Baggit has created a new range of bags and accessories. The new range is costing between Rs 1,800 and Rs 2,200, while other collections are priced between Rs 3,200 and 4,000.
“The market has become competitive. We will be selling the low-priced range in smaller towns. It is an affordable line for such places and also works well on online platforms,” shares Lekhi.
Clearly, the demand for fashion accessories is growing and it will continue to grow. However, the success will depend on the ability of players to innovate through design, style, and product offering.
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