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India is emerging as a hotspot of fashion and therefore this may be the right time for a variety of apparel-related ventures to explore new and exciting opportunitie. By Neha Arora, Strategy Consultant, Francorp
The word ‘fashion’ is such that it immediately arouses images of style. And the immediate association with this word is also that of the youth who define and set standards of new styles and forms. Moreover, fashion today has become much more globally synchronised what with the world becoming increasingly connected and cultures mingling with each other within shorter time capsules. Cross-pollinating patterns is therefore the order of the day. With this confluence of the east and the west taking place in much more smoother and integrated way, fashion trends and designs have become additionally intriguing and at times challenging too.
The Indian fashion retail industry is set to achieve Rs 1,02,50,500 crore (USD 1,576 billion) by 2026, growing at a CAGR of 10% with the present design retail worth Rs 2,97,091 crore (USD 46 billion) visualized to develop at a promising CAGR of 9.7% to achieve Rs 7,48,398 crore (USD 115 billion) by 2026. In this scenario, the Indian attire industry is the second-biggest contributor in the retail business after sustenance and basic needs. The passage of global brands, changes in inclinations from non-branded to branded, a quickly developing economy, substantial youth populace and such other factors make India a profoundly lucrative market.
In fact, India has the world’s largest youth segment, which is getting to be increasingly fashion-conscious due to global connectivity with emerging trends. This has opened up remarkable retail opportunities. With a GDP development rate of 7%, India has an edge over the markets of the US, Europe and Japan, which are developing at a rate of 2-3%. The most significant trend today is that of a fusion between Indian and western style patterns. Conventional Indian jacquards and silks for international occasions are curated in designer couture pieces of clothing. The indelible influence of traditional and aesthetically pronounced Indian fabric twisted and turned into a variety of silhouettes has made some of the budding and established Indian designs reach international boundaries.
India: An Attractive Fashion Station
India, in fact, has emerged as an appealing centre-point and a developing commercial centre for international and national brands. Some of the leading global brands are therefore adapting for the Indian market special business models in order to grow through franchise-owned, company-operated (FOCO) or franchisor-owned, franchise-operated (FOFO) platforms. The model and the configuration a brand seeks are based on the product, competition and various variables. The good thing is that young ladies, in particular, are all gung-ho about being in tune with global styles while quite comfortable with Indian weaves too.
However, while the potential is definitely on the upside, infrastructural bottlenecks and productivity make for some challenging barriers in the development of the domestic fashion industry. But nothing is lost yet! As indicated by World Bank’s Logistics Performance Index 2016, India positions at 35 in relation to 160 nations, thereby demonstrating an enormous extent of change in the basic framework. But, as experts point out, in spite of e-commerce sprouting in India, poor internet penetration prevails when compared with other developing economies. It is therefore fundamental to redesign the internet administration. Likewise, cyber-security is another ‘real’ risk in the e-tail industry. With the quickly changing profile of purchasers, it has turned out to be hard for retailers to stay aware of variable shopping conducts and their inclinations. That said, the industry per se offers a wealth of opportunities for fashion labels and apparel manufacturers to create clothing store chains, raw and finished material plants, boutiques, and allied business ventures.