What are the prospectives of Retail in the RMG sector? What all DOs and DON'Ts can help players in the sector to perform better?
The domestic apparel retail market shall continue to witness positive growth of 8% over the coming years. The RTW sector shall witness the largest growth fuelled by the coupled effect of its contribution share increasing from the current 79% to 88% over the next 10 as well as the overall growth of the apparel sector.
The segments of women’s wear, kids wear with high growth rates of 12% and 10.5% respectively will be the growth drivers of the RTW sector.
Thus in effect, the women’s wear segment shall increase in volume share from the current 37% to 43% in 2020, thus becoming as large as the current men’s wear segment.
Also, across all the segments, owing to enhanced lifestyles and varied activities, the categories of casual wear and active wear shall get further deeply sliced into sub – categories and shall be growth drivers.
Owing to Indian families becoming increasingly ‘time poor’ and ‘convenience seeking’, large complete family apparel formats shall find salience. And the big box formats of hypermarkets and cash & carry shall continue to attract a large quantum of investments under which the entire apparel category shall thrive.
Adopting to the learning curve of the last 18 months of the slowdown, Indian apparel retailers, in addition to expansion, are focusing on operating efficiencies and keenly monitoring key indicators such as : same store sales growth, category gross margins, andretail space productivity.
Retailers shall have to increasingly invest in tools that capture customer insights at the retail point-of-sale, tracking best sellers, slow movers, highest category contributors, and loss opportunity sales.
International brands such as ZARA, Diesel, Tommy Hilfiger, keen to leverage the optimistic Indian apparel market, shall continue to focus on emerging economies for expansion. These new entrants shall redefine the retail experience across all the elements of retail across store design, service, visual merchandising and assortment management.
Indian retailers would have to increasingly reckon with entrant international brands as competition and constantly adopt learning from them across the entire retail experience.
In which areas should the Indian textile and clothing sector improve to capture its lion’s share in world market?
Over the past years, India’s inherent strength was limited to low cost across raw materials and labour availability. Over the coming years, India shall have to focus on innovation, vertical integration, manufacturing excellence, and efficiency in supply chain .
We should re-invent the entire industry, with audacious and global thoughts, aggressive entrepreneurship and rebranding of companies and the whole industry to attract more investors, entrepreneurs, and management and operational talent.
We should focus on creating many more manufacturing mega clusters similar to what Ahmedabad, Tirupur, Surat, Ludhiana, etc… are today. Cities like Mangalore, Mysore, Ambala and many A and B cities offer huge potential to create more employment and economic growth.
Opportunities of expansion exist across the value chain however a focus on bottle neck areas such as processing and garmenting is vital towards achieving sustained overall growth.
In addition to the above, India should focus on widening the product base with emphasis including man-made fiber base.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.