Branded Apparels on Fast Growth Track
The branded apparel market in India is expected to witness a positive growth over the next few years, though the organised apparel retail in India has been struggling with sluggish growth.
The branded apparel market in India is expected to witness a positive growth over the next few years, though the organised apparel retail in India has been struggling with sluggish growth. According to a Crisil study, total apparel sales volumes fell 2 per cent in 2011 and grew by a modest 2-3 per cent in 2012.
Crisil forecasts apparel demand (in volume terms) will grow by 4 per cent annually in 2013-14. The research estimates the domestic apparels market to be around Rs 1,250 billion in 2012, of which branded apparels contribute about 40 per cent.
The share of organised retail in apparel sales in India is estimated at about 18 per cent, lower than countries like the US and EU where the share of organised retail is over 80 per cent. Amongst the various categories, branded apparels penetration is probably the highest in mens formal wear and womens western wear. In other categories such as womens traditional wear, casual wear (jeans and T-shirts) and kids wear, branded apparels still have a fledging presence.
The robust growth in branded apparels demand is reflected in sales numbers of some players in this space. Over the past five years, sales of Madura Fashions and Lifestyle having brands like Louis Philippe, Van Huesen, Peter England, Allen Solly under its belt grew at 25 per cent CAGR, while that of Kewal Kiran Clothing, which owns the Killer and Lawman rose by 14 per cent annually. Revenues of Page Industries (licensee of the Jockey brand) grew at 35 per cent CAGR in the same period. Growth recorded by these players has been much faster than the expansion in the apparels market – growth of five percent CAGR in the past five years.