Retail in Apparel Industry

8/11/2019 Retail in Apparel Industry..

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Retailis the sale of goods and services fromindividuals or businesses to the end-user.

A retailer purchases goods or products in large

quantities from manufacturers directly or through awholesale, and then sells smaller quantities tothe consumer for a profit.

Retailing can be done in either fixed locations like

stores or markets, door-to-door or by delivery.


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Apparel Retailing :

In India, clothing retail accounts for 36% of

organized retail business. With the advent of modern format retailers and the

growth of plastic cards, affluent urban Indian

women are shopping like never before.

Although the apparel industry seems to be in the

maturity stage and growth is slow, fashion trend

cycles are accelerating

The Indian apparel retail industry

representing a compound annual growth

rate (CAGR) of 9.9%.

Ranked as the top retail destination

globally & among 30 emerging markets

in the world.

It is the second largest untapped market

after China.

Indian apparelretail industry


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STRENGTHS:

Growing domestic market, increase in number of malls Easy credit facility and plastic card revolution is

increasing the purchasing power, particularly of the

younger generations.

WEAKNESS : Predominance of unorganized sector Technological obsolescence in the supply chain Taxation hindrances:

VAT and multiple tax levies. Inconsistent octroi and entry tax structure. Presence of large grey market

SWOT ANALYSIS : APPAREL INDUSTRY


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OPPORTUNITIES :

Increasing demand for brands from the middle class

Research and new product development can help the

companies to move across the value chain

Retail sector in rural India is almost untouched, presenting

tremendous opportunity

THREATS : Increased competition in the domestic market Cheaper import Changing Governments policy on FDI

Price of land and lease rentals are high while marginsare low


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ORGANISED Retail APPAREL FORMAT IN INDIA

FORMAT DESCRIPTION EXAMPLE

DEPARTMEN

TSTORES(MBO)

Average size varies between 10,000 sq. ft. and 60,000 sq. ft.

Offer a large layout with a wide merchandise mix.

Shoppers

stopLifestylePantaloonsWestside

SPECIALTY

STORE

Single-category stores

Focus on individuals and group clusters ofthe same class, with high product loyalty

Provogue

SpykarLevis

DISCOUNTSTORES

Average size10,000 sq ft Offer wide range of products, mostlybranded,

at discounted prices

Big Bazaar

FACTORYOUTLETS

Average size600 sq ftRelatively small retail store offering slightlydefective branded product at a discount

SpykarFactoryOutletProvogueFactory

Outlet


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Apparels are essentially segmented into Men's wear, Women wear & Kids

MENS

Consist of trousers, shirts, jeans, t-shirts, coats etcThe Indian menswear market has averagerevenue of$11.8 billion representing a compound annual growth rate

(CAGR) of 8.6%

WOMENS

Consist of dresses, sarees, tops, jeans, trousers etcIndia's womens wear market generates average revenuesof $10.2 billion representing a compound annual growthrate (CAGR) of 11.6 percent .

KIDS

Consists of uniform, trousers, jeans, t-shirts etcKids wear is not a small business anymore. Driven by hugedemand from brand conscious children, the Indiankidswear retail market is booming.


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Traditional Retail

Cycle:Modern Retail

Cycle:


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APPAREL RETAIL PYRAMID


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Multi Brand Outlets:

Shoppers Stop Pantaloon Lifestyle West Side Globus

Exclusive Brand Outlet:

Casuals:

SPYKAR PROVOGUE LITTLEKANGARO

OS

KOUTONS KILLER

Sports Wear:

NIKE ADIDAS REEBOK PUMA FILA

Formal Wear :

PARKAVENUE

JOHNPLAYERS

MARKS &SPENCER

LOUISPHILIPPE

PETERENGLAND


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The Apparel retail Industry is growing at a very highrate but still there are some barriers, which arehindering the growth of this industry. Some of them are:

The production rate is still not able to match with ever rising

demand.

Do not have enough resources and manpower to explore them.

Competition has increased.

As apparel industry is fashion driven, and fashion keeps changing.Thus they usually have to work under pressure.

Availability of products within the time. i.e SCM in apparel sector


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Retail Business will slowdown indeveloped countries

Population in age group 50-70 willexplode

Modest population growth in 20-35 age group

Decline in 35-50 age group

Plenty of workforce andconsumers in developing countries


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What more Can be done in

This Industry ??


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Conclusion :


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hank U

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Retail in Apparel Industry