The women’s wear market is projected to grow due to a) an increase in the number of working women, b) a shift
towards aspiration rather than need based buying c) design innovation, and (d) a culture of mix and match in
‘women apparel whereby bottom and top wear are mixed and matched interchangeably across ethnic, western,
fusion categories.

Apparel Market Segmentation across City Types

The urban apparel market had a share of 60% of the total market compared with a share of 40% contributed by
the rural India in Fiscal 2020. Almost 21% of the urban apparel demand can be attributed to Delhi NCR and
Mumbai making these cities the largest consumers of apparel in India. However, a distributive growth across the
country is resulting in growth of demand from Tier II, III and IV cities which together account for 34% of the
demand.

Apparel Market Segmentation across City Types — Fiscal 2020 (in € crores)

  

447,750
5 276,000
: 179,250
1 102,000
: 623250 48,750
Urban Rural Total

Tier 2

  

Source: Technopak Analysis
Tier I Cities: All State Capitals and Metros (Delhi-NCR included)

Tier II Cities: Cities with Census Population >10 lacs and not Tier I.

Tier III Cities: Towns with Census Population >2 lacs or Towns with Census Population between 1 and 2 lacs and District HQ
Tier IV Cities: Towns with Census Population between 1 and 2 lacs and Not District HQ or Towns with Census Population <1 lacs

 

Online/E-tailing Opportunity

E-tail in India has witnessed a rapid growth trajectory and is expected to reach 9.9% (% 780,000 crores) of total
retail by Fiscal 2025 from its share of 4.6% in Fiscal 2020 (% 277,500 crores), expected to grow at rate of 23%.
Between 2015 and 2020, the e-commerce sales have grown at CAGR of 44%. In 2012, the e-tail pie was = 4,500
crores (US$ approximately 0.6 billion) and that was limited to key categories of Electronics, Books, Stationery,
and Music which catered to nearly 50% of the pie.

Retailers across categories are moving towards online channel to expand their offerings, in an attempt to have a
place in the ‘Omni-channel Ecosystem’ where all channels of retailing are essential to reach to the consumers.
The lines between offline and online retailing are blurring gradually, whereby consumers connect with brands
through any medium of their preference. A purchase made by a consumer is often a mix of various mediums. E.g.,
A consumer searching online and reading reviews about a product before making a purchase decision, then going
to an offline store to look and experience the product, and the eventual purchase could be through either of the
channels. This makes presence across mediums essential of retailers to connect with the consumer at every touch
point.

Increase in penetration of smart phone and low-cost internet data has led to a boost in Online retailing. Option of
payment across various methods whether card, cash, wallets, and e-commerce transaction security has led to a
faith in these payment systems. The option of easy returns at e-commerce portals has led to trial of products and
services. As the disposable income is increasing, and with increase in women employment, time has become of
essence which has also led to the growth of ecommerce. COVID-19, eventually increased the pace at which these
changes were happening and made companies and consumers alike to adapt to the online medium.

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