Fashion
retail industry – landscape and emerging trends
- Fashion
retail (apparel + accessories + footwear) is the 2nd biggest category after
Food & Grocery in the overall Indian merchandise retail market of ~US$830
in FY22. The fashion market is expected to grow from US$ 77B in CY22 to US$
126B in CY27, growing at a 10% CAGR.
- The
overall retail market has now recovered to reach the pre-pandemic levels. While
fashion retail has not yet reached the pre-pandemic levels, the outlook for the
next 5 years looks quite bright.
- One
of the positive impacts of the pandemic was the significant rise in e-commerce
and digital adoption. E-commerce has become the mainstay of the retail
industry. For the fashion category, the contribution of the online channel is
now more than 20%.
- This
festive season is expected to be a big boost for the fashion retail market and
sales volume during this period will pave the way for further growth in the
next financial year.
- Covering
the broad landscape of the fashion retail industry below and how the Fashion
and Apparel space is changing in India – emerging trends and underlying drivers.
Case
study: Consumer behavior research on modern and general trade retail
Context:
A
client wanted to understand the profile of customers buying grocery and apparel
from modern trade and general trade stores, map consumer behavior (including
purchase frequency, spend, etc.), understand store and brand perception, and
assess competitive advantages.
Approach
Conducted
a primary field survey of N > 1,200 conducted in 12 different cities to
understand reasons behind buying from modern trade and general trade stores
across different product categories.
Conducted
in-depth interviews of N = 30 in those cities to understand usage patterns for
different modern trade brands as compared to general trade stores and map
different customer profiles Built
a report based on the survey and in-depth interviews deriving insights on
reasons behind buying from general trade stores / modern trade stores
Impact
Successfully
provided the client with a deep, comprehensive understanding of what drives the
customer towards a particular store, brand differentiation amongst its
competitors, and reasons for buying a particular product from a store.