It is the augmentation in fashion trends in India that revolutionized the merchandising system in the 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 the Indian retail industry requires lots more of fashion. Organized retailing is developing at breakneck speed. It is amicable to all that fashion is a vital part of both the retail industry and the brands. Fashion has led the retail industry boom, and it has sustained its dominance in every mall, market, and store.
Since the spread-out of malls is increasing, the major issue will be how to organize the fashion retails industry and make 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. With over one billion, a massive consumer class, India is considered the most preferred destination for investments.
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Apparel and textiles make the biggest segment in the retailing sectors. If we accumulate all the other related segments such as jewelry, cosmetics, watches, health & beauty care, etc., at one single platform, fashion will account for nearly 60 % of the total retail sector.
With the radically changing fashion and retail industry, Indian consumers are facing considerable transformation. With an increased income level and increasing attitude of “LOOK GOOD – FEEL GOOD,” fashion offers huge potential to penetrate deeper into the untouched Indian markets.
Fashions will account for nearly 95% of total sales in the department stores, while in hypermarkets such as Big Bazaar, the share could be about 70%. Fashion apparel has been a significant segment in terms of evolution in the Indian retail industry, not due to its size but the way it has influenced the 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, hypermarkets, 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.
. The boom in the luxury retail segment.
. Indian fashion designers marked their names on International platforms.
. Considerable expenditure on ad and marketing by apparel brands.
. Enhanced merchandising let the companies 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 a particular buyer or market segment. Take action to fulfill the demands.
. Try to become exclusive stores for specific brands and adopt the shop-in-shop system.
. Place well behaved, polite, and trained sales staff to manage counters.
. Go for the organized merchandising format for your company.
. Avoid offering all at once. Introduce product assortments in a phased manner with the 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 by 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 the 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 a similar buying experience.
. Looking for the continued support from the consumers and to emerge as the fastest evolving brand.
. To enhance team’s performance in coming years.
. Take the lead in the dress-up segment that features dressing for the occasion, success, etc., in trousers and men’s suits.
. Concentrated on top around 70 MBOs and trying to deliver better.
. Enhancing the performance of the team – planning to establish systems to make them more productive and glad.
. To implement a system for on-time deliveries.
. To put scissors on product assortment in terms of the number of styles will lead the company to serve better to fewer customers.
. Excellent outsourcing with making a dedicated team to take care of it.
. In fewer than two years, the Daks brand has been successful in hitting the Indian market despite 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.
. To get recognition as a global brand in the international market.
. To create a different brand identity for all in related segments.
. Establish entire lifestyle stores for kids under the brand Gini & Jony
. Pull down custom duties on accessories and fabrics etc.