Home / Knowledge / News / Apparel/Garments / Organized apparel retail grew at 12% CAGR in India: Report
Organized apparel retail grew at 12% CAGR in India: Report
03
Dec '13
The organized apparel retail sector in India has grown at 12.29 percent compounded annual growth rate (CAGR) from a size of US$ 6.3 billion in 2007 to US$ 11.3 billion in 2012, according to a latest report “Fashioning a Winning Trail: How to build sustainable business models in Indian apparel retail”, prepared by management consulting firm Kanvic.
 
However, the players are still looking for a winning formula to establish a successful and robust business model in India’s organized apparel retail sector, according to the report.
 
It says, “The first decade of the twenty-first century was a turbulent one for India’s apparel retail industry. In a few short years many of the industry’s brightest stars rose and quickly faded into oblivion, while others were dimmed under the burden of heavy debts.”
 
From the pre-crisis peak, retailers representing less than half of the total retail space in 2008 have survived and been able to improve their business performance over the last 5 years, on major indicators such as like-to-like sales, EBITDA and inventory. But, even among these survivors, business models of a majority of players were found to be not sufficiently robust to withstand future crises or deliver sustained profits in an increasingly competitive environment, states the report.
 
The report mentions two inter-related factors—the pursuit of high risk growth strategies and a crisis of leadership at apparel retailers—as the root cause of the high failure rate during the period until 2013.
 
Kanvic’s analysis shows that lower gross margin, as a result of higher cost of goods sold, is the root cause for Indian players’ weak and unsustainable business model.
 
It identifies six key steps to enable industry leaders to take a new approach and fly through the current turbulence in Indian apparel retail and emerge a winner. The steps are: improving the business economics, getting the growth strategy right, stress testing the business model, making the right entry decisions, demonstrating boldness in exiting, and looking at the right metrics.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Ministry of Trade and Industry, Singapore

Textiles | On 22nd Feb 2018

Final version of CPTPP pact released; to be signed in March

The final version of the Comprehensive and Progressive Agreement for...

Amazon India crosses 3 lakh seller base in less than 5 yrs

Apparel/Garments | On 22nd Feb 2018

Amazon India crosses 3 lakh seller base in less than 5 yrs

Amazon recently claimed to have crossed the three-lakh seller base in ...

Indian e-retail market may see 250% growth in 3 yrs: Crisil

Apparel/Garments | On 22nd Feb 2018

Indian e-retail market may see 250% growth in 3 yrs: Crisil

India’s e-retail market may rise by 250 per cent in the next three...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search