The share of organised retail in women’s apparel which was 19% in Fiscal 2015 had increased to 27% in Fiscal
2020 and is expected to reach 42% by Fiscal2025. Increase in organised retail is expected to benefit consumers
due to increased trust in safety and pricing as consumers are seeking higher value in terms of quality and overall
shopping experience.

Channel wise Segmentation of Women’s Apparel Market

Women’s apparel market in India was 2 163,291 crores (US$ 21.8 billion) in Fiscal 2020. Women’s’ Ethnic wear
accounted for approximately 71% or = 115,139 crores (US$ 15.3 billion) (Fiscal 2020) and the balance 29% of
the market was made up of western wear accounting for = 48,152 crores (US$ 6.4 billion). The high share of
Indian wear in the total apparel is a unique feature of apparel market in India. In any other major apparel markets
(China, Japan, Southeast Asia etc.) nearly the entire apparel category is made up of western wear product groups.
Therefore, Indian fashion here should be interpreted as the influence of Indian ethos on apparel’s cut, shape,
silhouette and nature of raw material used (not restricted to power loom but also extends to handlooms fabrics).
In this context, the Indian women apparel industry’s categorization into ethnic wear and western wear is significant
given the ethnic wear’s size in it and its unique existence compared to other major markets. The broad
categorization of ethnic and western comprise many sub-categories. The women ethnic wear category can broadly
be classified into sarees, salwar kameez/ethnic wear and may also contain fusion wear, which is a mix of western
as well as Indian wear. The women western wear category broadly contains shirts, tops, t-shirts, denims, active
wear, sleep wear, trousers, skirts, innerwear, winterwear and others.

Segmentation based on the level of Organized Retail for Women Ethnic and Women Western wear (in @ crores)

INR 1,68,222 Cr

INR 85,511 Cr

INR 48,152 Cr

     

Ethnic Wear 2015 Ethnic Wear 2020 Ethnic Wear 2025 Western Wear 2015 Western Wear 2020 Western Wear 2025
5 Organised Retail m Unorganised Retail

Source: Technopak Analysis
Apparel retailing comprises of the following channel segments:

Distribution led brands are standalone brands that are sold through a retailing structure
comparing wholesalers and retailers. These brands are sold across modern retail and traditional retail with a skew
towards traditional retail and with the sales now starting to move towards E-commerce platforms too. They cater
to the fragmented and dispersed nature of the demand. Traditional retailers rely on distribution led brands to
complete their product offerings. These brands primarily service price sensitive demand, core apparel need and
cyclical and dispersed demand. These brands’ proposition includes core fashion play, value sensitivity, cyclical
demand and take leverage of the established fashion trends and are therefore trend followers.

Retail led apparel brands are signified by players that are present through their own exclusive brand outlets as
the principal retail channel (more than 50% of the sales from the channel) supported by small but growing E-
commerce and shop in shop in large format stores. Bottom-wear retail brand like Go Colors, Ethnic fashion retail
brands like Biba and W, athleisure retail brand like Decathalon, Innerwear retail brand like Jockey, Fast Fashion
brands like H&M and Basics like Marks & Spencer are all examples of retail led brands that have witnessed
growth in the last decade and today represent leadership positions in their respective categories. Indian market
has shown high appreciation for these models across price points.

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