It is the augmentation in fashion trends in India that revolutionized the merchandising system in retail industry. Brands in apparel, textiles, jewelry, accessories, footwear, cosmetics and salons raised the business more than Rs 40,000 crore.
The Indian retail market is evolving rapidly. It is palpable that now Indian retail industry requires lots more of fashion. The organized retailing is developing at breakneck speed. It is amicable to all that fashion is a vital part of both the retail industry as well as the brands. Fashion has led the retail industry boom and it has sustained its dominance in every malls, markets and stores.
Since the spread-out of malls is increasing, the major issue will be how to organize fashion retails industry, has potential of making Rs 50,000cr business by the year 2007. Indian retail would cover-up 50mn sq ft by 2007 of sales space countrywide, and nearly 50 % of the total space would be assigned for fashion retailing. It is anticipated that about Rs 20,000cr retail sales would be coming-in from the fashion retailing. A population of over one billion, a massive consumer class, India is considered as the most preferred destinations for investments.
Apparel and textiles makes the biggest segment in retailing sectors, and if we accumulate all the other related segments such as jewelry, cosmetics, watches, health & beauty care etc at one single platform, then fashion would account nearly 60 % of the total retail sector.
With radically changing fashion and retail industry, the Indian consumers are facing considerable transformation. With an increase income levels and increasing attitude “LOOK GOOD – FEEL GOOD”, fashion is offering huge potential to penetrate deeper into the untouched Indian markets.
Fashions will account nearly 95% in total sales in the department stores, while in hypermarkets such as Big Bazaar the share could be about 70%. Fashion apparel has been the significant segment in the terms of evolution in Indian retail industry, not due to its size but the way it has influenced lifestyle of the Indian people. It was apparel that led multi-national brands to explore and invest in the Indian market, which led the ball rolling to rearrange the retail industry.
Few key factors that shaped the fashion retail industry are listed below:
. Massive spread-out of the malls, hyper markets and supermarkets throughout the country, even in non-metro cities.
. Mergers and acquisitions, which let huge brands to participate in the local market.
. The advantages by the elimination of global textile quotas in 2005.
. Expansion strategies of brands and retailers.
. Many international brands march into domestic markets.
. Many brands performed well in the mass segment.
. Boom in luxury retail segment.
. Indian fashion designers marked their names at International platforms.
. Considerable expenditure on ad and marketing by apparel brands.
. Enhanced merchandising let the companies to enhance consumer relations.
Few points on which retailers and brands should mull over:
. Collaborative tie-ups with non-competent services providers and brands.
. Offer value-added products, not cash discounts.
. Offer uniform sizing throughout the country.
. Offer personalized services.
. Concentrate on particular buyer or market segment. Take action to fulfill the demands.
. Try to become exclusive stores for specific brands and adopt shop-in-shop system.
. Place well behaved, polite and trained sales staff to manage counters.
. Go for organized merchandising format for your company.
. Avoid offering all at once. Introduce products assortments in a phase manner with latest trends.
. Try to get feedback from the consumer on “What they want?”
Review of some of the retail industry players on the attained targets and their wishes for the current year:
. Successfully reestablished its place in the market, with opening 22 stores.
. Higher development – In fact the highest of all segments and categories.
. Enhanced brand image from small to huge format flagship.
. People should enhance living standard, moving to mono-brand from multi-brand outlets.
. Excellent training and salaries to sales staff and be more mass-oriented.
. Expand in 5 lakh plus towns, providing similar buying experience.
. Looking for continues support from the consumers and to emerge as fastest evolving brand.
. To enhance team’s performance in coming years.
. Take a lead in the dress-up segment that features dressing for occasion, success etc in trousers, and also in men’s suits.
. Concentrated on top around 70 MBOs and trying to deliver better.
. Enhancing perform of team – planning to establish systems to make them more productive and glad.
. To implement system for on-time deliveries.
. To put scissors on product assortment in terms of the number of styles – which will led company to serve better to fewer customers.
. Excellent outsourcing with making dedicated team to take care of it.
. In a span of less than two years, Daks brand has been successful to hit the Indian market despite of being a foreign brand.
. Managed tie-up arrangements for manufacturing Daks brand in India and Central Europe.
. Also signed agreements for Trussardi and Savile Row.
. To be a front runner in the Indian apparel market.
. To add 25 more stores.
. Allure entire high-end women class to wear Trussardi.
. Enhance sales staff performance.
Gini & Jony
. Signed agreement with Reliance
. Signed license agreement for its kidswear brand ‘Levi’s Sykes’.
. Increased production capacities at Daman and Baddi.