Size of Indian retail market across segments, 2007 Segment Food and grocery Textile and apparel Jewelers

and watches Consumer durables Parma Home solutions Books, music and gifts Others Total Source: Crisil Research Total Retail 6,422 980 554 415 364 351 115 1,159 10,360 Organized Retail 50 185 30 43 10 32 15 111 475

 Apparel is one of the fastest growing verticals, with higher number of domestic and foreign brands, and increasing consumer willingness to pay for quality. Footwear has the highest organized retail penetration, primarily due to players like Bata India Pvt. ltd. and liberty, with wide distribution network and customer confidence. Source: Indian Retail industry Its Prospects and Challenges By International institute of foreign trade and research.

Key players

Source: IBEF Reports

Source: IBEF Reports

7.4 Players across verticals

Source: IBEF Reports

7.5 International retailers International retailers are fast expanding their business in India to tap the large consumer base. Reebok has set up its largest store in the world in Hyderabad, Tommy Hilfiger and Levis have over 20,000 square feet of retail space and stand-alone stores across major metros. The fastfood giants like Pizza hut, McDonalds, Subway etc. are expanding at a fast pace, with the emergence tier ii and tier iii cities and expanding markets in these cities.

Source: IBEF Reports

Source: Images Yearbook 2008

Source: Images Yearbook 2008

Source: Images Yearbook 2008

Source: Indian garment Industry Report

Print
13% growth in advertising volumes of fashion industry on print during 2007, over 2006. Fashion industry used newspapers and magazines in an advertising ratio of 81:19 during 2007. Maximum advertising of fashion brands on general-interest newspapers and women- interest magazines. Koutons ready-mades maintained its first rank in the top 10 brand list in print across both 2006 & 2007. The average ad per day by fashion industry has seen a rise of 27% in print during 2007.

Radio Fashion industry advertising saw a growth of 173% on radio during 2007, as compared to 2006. Radio advertising by fashion industry skewed towards Delhi & Mumbai. Pantaloons was the top name in the top 10 brand list on radio during 2007. Two-time rise in average ads aired per day by fashion brands on radio during 2007, over 2006.
Source: Indian Garment Industry Report

REFERENCES
_ _ _ _ _ _ _ _ _ www.ncaer.com www.fibre2fashion.com www.indiaexports.com Images Year Book 2008 India Retail Report 2009 Apparel Talk Magazine July 2008 Issue Apparel Export Promotion Council Marketing White Book 2007 Marketing Management by Philip Kotler

Source: Indian retail apparel research By NorthBridge Capital January 2011

Source: Indian retail apparel research By NorthBridge Capital January 2011

Source: Indian retail apparel research By NorthBridge Capital January 2011

Source: Indian retail apparel research By NorthBridge Capital January 2011

Source: Indian retail apparel research By NorthBridge Capital January 2011

Menswear Menswear is still the single largest product category, both in terms of value and volume. This segment is also the most developed and better organised when compared to other categories like womenswear and kidswear. In 2009, the menswear segment had volume growth rate of 7.8 percent and value growth rate of 11.7 percent. The volume grew from 1757 mn units in 2008 to 1894 mn units 2009. In terms of value the menswear market has grown from INR 498.1 bn to 556.4 bn in 2009 at a rate of 36.1 percent. Among all the apparel categories T-shirts was the fastest growing at a rate of 34.1 percent and Trousers at 18.3 percent. Mens Shirts Valued at INR 204.7 bn, mens shirts as a single product category commands the largest market share in the apparel market and also has the maximum number of manufacturers and brands competing in this market. While some established players offer brand variants to create a distinct

identity in the category, there are others who have positioned themselves in specialised subcategories like formalwear, comfortwear, clubwear/partywear, and so on. This Technopak - Images F&R Research study observes a general tendency of customers of upgrading to higher ranges as a result of which we have highest value growth in the super premium and premium ranges. While volume has shown a growth of 26.5 percent in the super premium range with 15 percent value growth, volume in the premium and mid ranges grew at around 17.0 and 13.3 percent, with 10-12 percent value growth in 2009. Likewise, value growth is observed to be highest in the super premium, followed by premium range with 12 percent. This clearly shows that customers are willing to pay more for better quality, and have become sensitive to quality products. Hence, there is scope for companies to enter the higher ranges. Mens Trousers Valued at INR 143.1 bn in 2009, the mens trousers market, constitutes yet another major apparel category and here too the maximum growth in value terms has taken place in the super premium range (22.6 percent), followed by the premium range with 19.8 percent volume growth in 2009. Similar to mens shirts, here also value growth rate is highest in the super premium and premium range of trousers (12 percent each) followed by mid range (10.0 percent). Volume growth rate in low range has shown a decline in 2009 at 9.1 percent over the year 2008 for the trousers market. This further enforces our analysis in the previous report that more and more men are switching over from tailored to ready- towear trousers at the entry level, which is a compliment to the efforts of manufacturers and brands for having satisfied these customers in matters of fit and sizing. Mens Formal Suits, Jackets & Blazers The segment of mens formal suits, jackets and blazers is currently valued at INR 48.3 bn and is now witnessing a rapid shift from tailored to ready-to-wear, as is evident from the higher volume growth rate of 10.2 percent in 2009 as compared to 5.0 percent in 2008; value growth has also been remarkably high, 12.6 percent in 2009 over the year 2008. Value growth was highest in the super premium range (13.4 percent) of formal suits, jackets and blazers wherein volumes grew by 7 percent in 2009. However, volume growth in economy range was highest at 11 percent, which resulted in 13.3 percent growth in sales value. Mens T-Shirts The t-shirt category is currently valued at INR 44.3 bn; volume has shown a growth of 6.1 percent and value 9.1 percent in 2009 as compared to previous year. Value growth was highest in super premium and premium ranges (nearly 12.3 and 11.8 percent respectively)in 2009 over the year 2008. This means there is sufficient scope for super premium and premium brands. Unlike other apparel categories of menswear, low ranges of t-shirts have grown most compared to mid and economy ranges of t-shirts. Thanks to private labels from organised retail chains, the mass segments, low and economy ranges, experienced higher volumes growth of 4 and 5 percent in 2008 as compared to 3 and 4 percent growth rate respectively in 2007. Mens Innerwear As mentioned in our 2009 Apparel Report, mens innerwear segment is indeed witness to more and more consumers opting for hosiery underwear as against tailor-made woven underwear. Statistics show 5 and 5.6 percent volume growth in the entry level low and economy ranges in 2009 as compared to the previous year. The mens innerwear market is worth INR 22.2 bn and it experienced overall value growth rate of 8.1 percent in 2009 which is slightly lower than the previous year when value growth was recorded 8.8 percent . The super premium range recorded

the highest value appreciation with a 18.3 percent growth, while the mid ranges has recorded a value growth of 13.2 percent. Source: Images Report 2009

14 References

14.1Book Reference
Book Retail Management Indian Garments industry How to export garments successfully Garments export Export Policy, procedures and Documentation M. I. Mahajan Authors Chetan Bajaj, Rajnish Tuli, Nidhi Shrivastava V Subbulakshmi R.S. Shukla Darlie O Kashy

14.2Web Reference
Sides
www.indiaretailing.com www.ibef.com www.business.mapsofindia.com www.indiafdiwatch.org www.indianground.com

Dated 6/4/2009 9/4/2009 14/4/2009 24/4/2009 23/4/2009

Timed 23.45 22.00 12.20 00.25 01.00

 www.indiaretailing.com

25/4/2009

18.35