Split of Women’s Ethnic Market across Organised Formats- Fiscal 2015, 2020 and 2025 (in € crores)

INR 63,924 Cr
INR 26,482 Cr
a
INR 11,779Cr a
4,104
(0%) “a
1981 _| 2.072. oe
(16%) a
FY 2015, 2020 FY 2025,

E80 mMBO SLPS. mOnline
Source: Secondary Research, Technopak Analysis
Online signifies digitally enabled including own website of brands and retailers, marketplaces, vertical specialists etc.

Within the ethnic organized retailing, in Fiscal 2015, the share of EBO was the highest at 44% followed by LFS
at 31%, MBO at 16% and online sales only accounted for 9% of ethnic apparel retail. However, the share of online
retailing has drastically increased from 9% to reach 52% in Fiscal 2020, owing to digitalisation as well as COVID-
19 imposed lockdowns and restrictions. Online channel represented more than half of organized Women’s Ethnic
Fashion sold in India in Fiscal 2020 and will continue to do so in Fiscal 2025, its activation currently comprises
marketplaces, vertical specialists online store, EBO led retail brand selling through digital route. EBOs are the
bellwether of Women’s Ethnic Apparel Retail in India and contributed 24% of the total retail in Fiscal 2020 and
this is expected to grow to 29% in Fiscal 25. This share represents their sales through brick route. Their sales
through digital route in Fiscal 2020 averaged approximately 12% of the total sales and that formed 52% of online
sales share in total organised retail in Fiscal 2020. This overall share was of digital in EBO lead brands expected
to average around 21%. The EBOs’ focus on digital activation is expected to be a growth enabler of online share’s
share to increase from the 52% in Fiscal 2020 to 54% in Fiscal 2025.

The LFS format has also emerged as a leading retail destination for Women’s Ethnic Fashion across India and has
created a unique proposition for both EBO lead brands. LFS formats comprise private labels of the stores that
contribute nearly 50% to 60% of their offering and the balance approximately 40% to 50% of their offering is
made up of EBO led brands placed within the LFS. For EBO lead brands, ‘Large Format Stores (LFSs)’ are a
capital efficient model to expand footprint nationally as they offer the advantage of capital efficiency and brand
building opportunity and are expected to be important growth drivers in the organized apparel retailing segment.
Therefore, LFS format plays both the role of a growing complimentary channel to retail led brands and of a
competition to retail led brands through its private label offering.

Channel wise segmentation of Women’s Western Wear Market

36% of the retailing of Women’s Western fashion is done through organized retail channels and that comprises
Exclusive Brand Outlets (EBOs), Large format stores (LFS), Multi brand Outlets (MBOs) and E-commerce, which
is expected to increase to reach a share of 51% by 2025. And the share of unorganized retail is expected to decline
from 64% in Fiscal 2020 to 49% in Fiscal 2025 implying that the share of western apparel sold by traditional
retailers will decrease substantially.

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